Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program
In recent years, Au Bon Pain (ABP), a chain of upscale French bakeries/sandwich cafes based in Boston, confronted a set of human resource problems endemic to the fast food industry (i.e., a labor shortage which made it difficult to attract and maintain quality crew personnel and management candidates, an inadequately trained management staff, and high turnover). To deal with the resulting "cycle of failure" while increasing individual initiative and performance at the unit level, ABP devised a new compensation-incentive system for its store managers--the Partner/Manager Program. Under this program, store managers would be paid a standard base salary plus a share of the incremental profits. The case asks students to evaluate the program by comparing it to ABP's existing compensation system, determining the different ways in which managers from two stores operating under an experimental run of the program achieved their results, and by considering the strategic implications of implementing the program in all of the company's stores.
Swot Analysis of "Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program" written by W. Earl Sasser Jr., Lucy N. Lytle includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Abp Program facing as an external strategic factors. Some of the topics covered in Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program case study are - Strategic Management Strategies, Compensation, Developing employees, Employee retention, Human resource management, Motivating people and Technology & Operations.
Some of the macro environment factors that can be used to understand the Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program casestudy better are - – supply chains are disrupted by pandemic , banking and financial system is disrupted by Bitcoin and other crypto currencies, increasing commodity prices, central banks are concerned over increasing inflation, digital marketing is dominated by two big players Facebook and Google, customer relationship management is fast transforming because of increasing concerns over data privacy, challanges to central banks by blockchain based private currencies,
geopolitical disruptions, there is backlash against globalization, etc
Introduction to SWOT Analysis of Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Abp Program, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Abp Program operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program can be done for the following purposes –
1. Strategic planning using facts provided in Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program case study
2. Improving business portfolio management of Abp Program
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Abp Program
Strengths Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Abp Program in Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program Harvard Business Review case study are -
High switching costs
– The high switching costs that Abp Program has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
High brand equity
– Abp Program has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Abp Program to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
Highly skilled collaborators
– Abp Program has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Operational resilience
– The operational resilience strategy in the Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Learning organization
- Abp Program is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Abp Program is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Ability to recruit top talent
– Abp Program is one of the leading recruiters in the industry. Managers in the Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Ability to lead change in Technology & Operations field
– Abp Program is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Abp Program in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Training and development
– Abp Program has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Superior customer experience
– The customer experience strategy of Abp Program in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Abp Program digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Abp Program has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
Diverse revenue streams
– Abp Program is present in almost all the verticals within the industry. This has provided firm in Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
Organizational Resilience of Abp Program
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Abp Program does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program are -
Capital Spending Reduction
– Even during the low interest decade, Abp Program has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
Skills based hiring
– The stress on hiring functional specialists at Abp Program has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
High cash cycle compare to competitors
Abp Program has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
Lack of clear differentiation of Abp Program products
– To increase the profitability and margins on the products, Abp Program needs to provide more differentiated products than what it is currently offering in the marketplace.
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Abp Program has relatively successful track record of launching new products.
No frontier risks strategy
– After analyzing the HBR case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program, it seems that company is thinking about the frontier risks that can impact Technology & Operations strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program, it seems that the employees of Abp Program don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Interest costs
– Compare to the competition, Abp Program has borrowed money from the capital market at higher rates. It needs to restructure the interest payment and costs so that it can compete better and improve profitability.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program, in the dynamic environment Abp Program has struggled to respond to the nimble upstart competition. Abp Program has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Aligning sales with marketing
– It come across in the case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program can leverage the sales team experience to cultivate customer relationships as Abp Program is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Abp Program has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Abp Program even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
Opportunities Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program are -
Buying journey improvements
– Abp Program can improve the customer journey of consumers in the industry by using analytics and artificial intelligence. Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program suggest that firm can provide automated chats to help consumers solve their own problems, provide online suggestions to get maximum out of the products and services, and help consumers to build a community where they can interact with each other to develop new features and uses.
Leveraging digital technologies
– Abp Program can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Abp Program can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Low interest rates
– Even though inflation is raising its head in most developed economies, Abp Program can still utilize the low interest rates to borrow money for capital investment. Secondly it can also use the increase of government spending in infrastructure projects to get new business.
Developing new processes and practices
– Abp Program can develop new processes and procedures in Technology & Operations industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Reconfiguring business model
– The expansion of digital payment system, the bringing down of international transactions costs using Bitcoin and other blockchain based currencies, etc can help Abp Program to reconfigure its entire business model. For example it can used blockchain based technologies to reduce piracy of its products in the big markets such as China. Secondly it can use the popularity of e-commerce in various developing markets to build a Direct to Customer business model rather than the current Channel Heavy distribution network.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Abp Program in the consumer business. Now Abp Program can target international markets with far fewer capital restrictions requirements than the existing system.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Abp Program to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Abp Program to hire the very best people irrespective of their geographical location.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Abp Program can use these opportunities to build new business models that can help the communities that Abp Program operates in. Secondly it can use opportunities from government spending in Technology & Operations sector.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Abp Program is facing challenges because of the dominance of functional experts in the organization. Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Technology & Operations industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Abp Program can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Abp Program can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
Manufacturing automation
– Abp Program can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Creating value in data economy
– The success of analytics program of Abp Program has opened avenues for new revenue streams for the organization in the industry. This can help Abp Program to build a more holistic ecosystem as suggested in the Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program case study. Abp Program can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program are -
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Abp Program with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
High dependence on third party suppliers
– Abp Program high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Regulatory challenges
– Abp Program needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Technology & Operations industry regulations.
Technology acceleration in Forth Industrial Revolution
– Abp Program has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Abp Program needs to keep up with the evolution of technology in the Technology & Operations sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Abp Program needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Environmental challenges
– Abp Program needs to have a robust strategy against the disruptions arising from climate change and energy requirements. EU has identified it as key priority area and spending 30% of its 880 billion Euros European post Covid-19 recovery funds on green technology. Abp Program can take advantage of this fund but it will also bring new competitors in the Technology & Operations industry.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Abp Program can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program, Abp Program may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
Stagnating economy with rate increase
– Abp Program can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Increasing wage structure of Abp Program
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Abp Program.
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Abp Program in the Technology & Operations sector and impact the bottomline of the organization.
Weighted SWOT Analysis of Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Au Bon Pain: The French Bakery Cafe, the Partner/Manager Program is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Abp Program needs to make to build a sustainable competitive advantage.
