A Business Planning Analysis Commerce Essay Example
A Business Planning Analysis Commerce Essay Example

A Business Planning Analysis Commerce Essay Example

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  • Pages: 13 (3348 words)
  • Published: July 11, 2017
  • Type: Case Study
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Pret A Manger, a well-known player in the UK's food industry with global branches, is commended by the author for effectively balancing employee welfare and substantial profits. The author, employed part-time at a London branch, shares this perspective.This paper will focus on Pret A Manger's business planning, assessing its importance and potential, identifying system factors that influence success and failure, exploring the organization's limitations, reviewing stability and feasibility issues in relation to available resources, and examining two significant market changes from the past year that have impacted the company.

Table of Contents

Part 1 - Business Plans and Pret A Manger
A. An overview of concern programs 7
B. Role of concern planning 8
C. Potential part of concern planning 9

Part 2 - Analysis of Pret A Manger's Key Concepts
10 A. Competition
B. Monetary values
C. Economic alterations 1

...

1
D. Staff E. Weather

Part 3 - Organizational Restrictions
13 A. Selling
B. Finance
C. Management

Part 4 - Evaluation of concern programs
17 A. Evaluation signifier B.
Determining if the aims are met 18 C.
Determining net income and shortage D.
Determine if the activity is successful or a failure E.
Group forum

Part 5 - Analysis of Environmental Changes which affects the growth of Pret
20 A.Prohibition on Tuna B.Expansion22

Part 6 - Decision and Recommendation23 Bibliography25

List of Figures

Figure 1 Business Plan Cycle14 Figure
Evaluation Procedure17

Part 1 - Business Plans and Pret A Manger

It could be said that Pret A Manger is one of the United Kingdom's most outstanding sandwich stores of all timePret A Manger stands out among the numerous sandwich stores, food shops, and coffeehouses in the United Kingdom with its unwavering commitment to offering healthy an

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fresh sandwiches. Since its inception, Pret A Manger has experienced a consistent growth in customer base. The founders of the company, Julian Metcalfe and Sinclair Beecham, first met in college and aimed to provide healthier alternatives to greasy fast food meals by serving fresh and authentic sandwiches without preservatives or additives [1]. With a loan of ?17,000, they acquired the rights to a soon-to-close shop and established their inaugural Pret A Manger store on Victoria Street in London [2]. The name "Pret A Manger" translates as "ready to eat," catering specifically to busy individuals who value prompt service and delicious food. Initially unable to afford staff for ensuring product freshness, Metcalfe and Beecham personally prepared every sandwich [2]. Over time, they perfected the art of making Pret sandwiches that have gained international acclaim. The writer is fortunate enough to possess firsthand knowledge of the chain's operations through their part-time job at a Pret branch in London. They have received training in the distinctive Pret attitude and lifestyle.The writer will use their employment at Pret A Manger, where they have gathered information on business plan development and implementation. They have also obtained permission to interview the branch manager for further insight. Each Pret A Manger branch has a unique menu and employee attitudes, but all branches share enthusiastic and energetic staff that ensure an enjoyable visit. In this paper, the writer will analyze business plans using their experiences at Pret A Manger, as well as other coursework related to their creation, evaluation, and company factors. The writer will specifically assess the role, potential, and involvement of business planning in a London branch of Pret A Manger.

A.

An overview of business plans

Business plans outline key principles, summary, services, market analysis, strategy and execution, management, and financial plan for future terms. Its aim is to attract more customers, generate more products,and increase revenue. It summarizes operational and financial objectives with detailed plans and budgets explaining how each objective will be achieved [3]. Some argue that a business plan also includes information about marketing and communications, finances,and potential income or deficits [4].A well-crafted business plan serves as a roadmap for stakeholders, management, and major contributors in the company. It can significantly increase a company's revenue compared to previous years if properly executed. With a thoughtfully developed business plan, assuming it is well-designed and each scheme is well-implemented, a corporation cannot go wrong. The role of business planning acts as a reference point for all concerned parties and includes essential information such as potential revenues and losses, financial status, marketing plans, and more. In various industries, having a solid business plan is crucial for success. Possessing well-planned and well-executed strategies and summaries allows an organization to move forward in the competitive corporate world. A business plan has the power to make or break a company; while a flawed plan can lead to bankruptcy, a strong one can generate millions in profits. Effective business planning can provide Pret A Manger with ample growth opportunities and increased earnings potential. Ultimately, the writer asserts that when an organization possesses a well-designed and properly executed business plan,it has the potential to generate greater revenue.Pret A Manger's sales figures can undoubtedly be enhanced with a strong business plan. The planning team at Pret, benefiting from the company's established reputation

and loyal customer base, can easily develop more effective strategies to increase revenue. With their experience in marketing products, the staff at Pret can readily determine ways to boost sales. In addition, the dedicated staff is happy to implement necessary changes and ensure they are followed.

When analyzing Pret A Manger's key concepts, it is crucial to consider various factors that influence the success or failure of implementing business plans. Despite being an established company, there are still obstacles that could hinder the success of Pret's programs. This section will focus on identifying and evaluating both "hard" and "soft" system factors that impact the effectiveness of Pret's business plan.

Pret A Manger serves a diverse range of customers, including busy professionals who appreciate the sandwich shop's varied food options. The fast service provided by Pret makes it an ideal choice for people on-the-go. However, executing a detailed business plan may encounter potential challenges. Some obstacles to Pret's success and potential reasons for failure include competition from numerous competitors selling sandwiches in today's market:People who have strayed from healthy lifestyles often opt for fish and chips as their go-to meal. Fish and chips shops are abundant throughout the United Kingdom, with nearly every street having one. In London, Pret faces tough competition from fast food giants like McDonald's and Subway. Although Pret is dedicated to offering healthier alternatives to junk food, their commitment can only take them so far. If their marketing and advertising strategies are not up to par with other companies, customers may be lured by the more appealing advertisements and promotions of rival food establishments.

One thing that sets Pret A Manger apart is that all

of their food is prepared fresh on the day it is sold. Any leftover food at closing time is given away. Each day, Pret employees create new products in each shop. However, due to inflation, prices are rising which makes purchasing organic and healthy options more costly. Despite this challenge, Pret A Manger strives to maintain the quality and consistency of their food while sourcing affordable natural ingredients.

However, economic changes can have an impact on their business. For instance, when a customer died from chemical poisoning at Itsu (a subsidiary of Pret A Manger), it tarnished the reputation of the store even though management and staff were found not responsible for the incident. This unfortunate event had negative consequences both on the economy and how customers perceive the store.Moreover, although Pret A Manger generally hires content employees, there may be occasions where this guideline is not adhered to, potentially resulting in a lack of motivation and happiness among all staff members. Furthermore, despite Pret A Manger's efforts to ensure employee satisfaction, external factors like weather can significantly affect the company's business plans. The company's dedication to offering fresh, chemical-free ingredients heavily relies on the dependability of suppliers, making them susceptible to price hikes during weather disruptions. For instance, if a Pret store intended to stock up on ingredients for the upcoming month by a specific date, a weather disturbance could postpone these plans and lead to financial losses for the company. These are critical elements that can determine Pret A Manger's success or failure. Although many of these factors are beyond the company's control, it is crucial for them to be prepared for worst-case scenarios.

A single unfortunate weather event could jeopardize an entire month's profits and leave the store in debt. Similarly, one disruptive team member could detrimentally impact overall team morale and influence the performance of other members. The company must prohibit and minimize such behaviors at any cost as they would reflect poorly on its reputation. Additionally, addressing these factors is essential for resolving organizational issues and driving further revenue growth instead of suffering additional losses.The revenue secret of Pret A Manger lies within their employees, according to Jay Chapman [5], the head of Communications. They have developed the Pret attitude [6] to ensure that all employees provide the quality service expected in their shops. The Pret attitude refers to the happy, bubbly, and talented individuals who make each visit to Pret A Manger extraordinary. At least sixty percent [7] of middle to upper management positions are filled by executives who have worked their way up from lower levels. These executives understand how staff should handle customers based on their firsthand experience with the Pret A Manger experience.

In London, the branch follows a process for creating a business plan which involves various steps. The marketing team is crucial in this process as they scout nearby stores for competitors and gather promotion ideas. Each threat is carefully addressed with its unique solution. For instance, if a McDonald's opens nearby, Pret A Manger must impress customers with healthy sandwiches. Similarly, if customers start favoring a fish and chips shop close by, selling fish and chips at a lower price may be considered by Pret A Manger.Once these factors are determined, the marketing team collaborates on improving the store's promotion

tactics. This includes discussing potential activities and events to increase revenue and attract customers to be more loyal to Pret's products. The finance team then assesses each activity to determine its feasibility, examining the financial benefits and considering whether expenses are justified by potential growth and income. They inform the marketing team of the budget and work to protect against decisions that could result in financial loss. Only the most feasible proposals are considered for funding, as not all proposals are accepted. At the managerial level, the proposal is handed over to management where necessary adjustments are made by the branch manager. Simple suggestions can be approved immediately, but significant decisions require approval from the head office. As a large company, each branch develops its business plan and submits it for approval and documentation at the head office. However, subdivision directors have power to approve or reject proposals appropriate for their subdivisions.
In London, where there is a high concentration of Pret A Manger shops and competition from other rivals in the country, the company aims to distribute its range widely to attract as many customers as possible. However, if there is another Pret shop located nearby, there may be a competition for a certain number of customers. It is important to note that any new Pret A Manger subdivision in London would still need approval from the head office. This is because the actions and promotions of each subdivision would reflect on the overall Pret A Manger brand. This requirement could limit creativity and the opportunity to explore new advertising methods. In the writer's opinion, being part of a large corporation may hinder the productivity

and creativity of a smaller subdivision. As a subdivision is an extension of the larger brand, it is crucial to ensure that its principles are maintained and not exploited. These restrictions may impede the innovative strategies of a smaller subdivision.

Part 4 - Evaluation of concern programs

In accordance with the previous section, each Pret A Manger shop employs a unique method to assess the effectiveness of their activities and promotions.In our organization we determine success based on factors outlined in Figure 2 Evaluation Procedure. The evaluation procedure follows this cycle: Participants receive evaluation forms a few minutes prior to the event.
Often, participants do not fully complete these forms. However, the forms contain important information for determining if the activity's objectives are met.
The determination of whether objectives have been met is crucial for each activity, including the Pret A Manger branch in London that hired models to distribute flyers at a major mall. These flyers provide instructions on ordering from their new website. The Information Technology team at the branch developed a method to measure how many people placed orders online by following the flyer instructions.
Similarly, every activity has its own budget. For example, the company had expenses for theoretical accounts, printing circulars, and a specialized team to monitor orders through the new website during this specific event. This allowed them to determine how many orders were received through distributing circulars versus those made independently by customers. The Finance Team could easily track how much profit was earned by the branch from this particular activity and evaluate its success in terms of promoting the new order strategy. The success or failure of an

activity is determined by its generated income or losses incurred. If an activity resulted in significant profits or broke even with expenses, it is considered successful.The Pret A Manger store in London conducted a group forum as the final evaluation step, where concerns about problems encountered during the activity were voiced. Then, as a group, decisions were made on methods to prevent future problems and improve services during future activities. These steps help assess and evaluate the success of the business plan and proposed activities for this specific Pret shop. However, there may have been overlooked methods and points due to suitability issues. Despite checking and evaluating each business plan before execution, certain criteria need to be considered beforehand. One such criterion is resource availability - do we have enough resources? Will expected income cover expenses? Another factor is alignment with organization's time-related goals and objectives when evaluating business plans.The main short-term goal for a specific Pret A Manger branch in London is to increase the number of customers and revenue, instead of losing customers to other branches. This goal needs to be achieved by the end of the quarter to assess the effectiveness of the business plan. Mileposts are crucial in determining whether the goals and objectives of the business plan have been met. However, external factors can hinder even a well-designed business plan. This is especially true for Pret A Manger, as it is a subsidiary of a large corporation with multiple branches worldwide. Any issues faced by one branch can potentially affect all other branches' performance. Over the past year, there have been several environmental changes that have impacted Pret A Manger's

growth. One significant change was the ban on tuna due to concerns about fishing practices harming the marine ecosystem and endangering species like bluefin tuna. Despite its popularity, Pret A Manger made the decision to ban bluefin tuna from all its shops, including Itsu, its sushi-house subsidiary.
Following the premiere of 'The End of the Line', Pret founder Julian Metcalfe announced a decision to support the movie's protagonist in their fight against fishing endangered species and compromising the pelagic ecosystem, as stated in [ 9 ] . Despite acknowledging that this stance may result in potential customer loss for Pret, Metcalfe expressed his willingness to take that risk, as stated in [ 10 ] . This situation emphasizes how significantly the business environment can impact an organization. Due to unforeseen circumstances, both Itsu and Pret A Manger had to remove tuna from their menu despite including it in their well-researched business plans. The company incurred expenses when switching to sustainable alternatives and changing fish suppliers. Additionally, loyal customers who enjoyed the tuna and cucumber sandwich chose to go elsewhere for this banned product. It is important to note that this ban on tuna was implemented not only at Itsu stores but also across all Pret A Manger branches.The specific Pret branch where the author works has a large inventory of ingredients for the tuna and cucumber sandwich, but most of it goes to waste because loyal customers insist on having the banned sandwich. In 2009, Pret A Manger had to deal with the Tuna Ban and try to convince consumers that their alternative was just as good. However, there is some positive

news as well - this year has seen favorable property markers. Recognizing this opportunity, Pret A Manger plans to expand and open more stores. Despite currently having only two stores in the United States compared to over two hundred in the United Kingdom, they are considering opening new stores in the North of England. This demonstrates how external factors have influenced their business plan and led to expansion. These examples highlight how venturing into new markets can greatly benefit an organization. The market demand prompted them to include belongings in their offerings, which Pret took advantage of to increase profits.

Part 6 - Decision and Recommendation

The writer acknowledges that a business plan serves as a roadmap for a company's future endeavors, including important information such as a market summary with details on competitors' major promotions and points of comparison.The plan should also include a financial summary that reflects the company's financial position, as well as other important information for a growing business. At Pret A Manger, each department creates its own unique business plan. In my previous department, the marketing team developed a small-scale business plan by researching competitors and promotions while identifying potential target markets to support through new promotions. The marketing team then presented their findings, proposed activities, and goals to the finance department for input on the department's finances. The finance team assessed the projected income and expenses associated with each activity. Afterwards, the proposal would be reviewed by the Branch Manager, who would make any necessary adjustments and seek approval from either the head office (for larger events) or simply give it the go-ahead (for smaller events). Similarly, every company has

its own methods of evaluating whether a business plan is effective or not. This evaluation involves comparing milestones or predetermined goals and objectives while considering sustainability and other relevant factors that may impact an organization. For this specific Pret branch, the evaluation process entails distributing forms to all participants of an event or activity and then assessing their responses as well as reviewing the outcomes after completion.
In spite of thorough planning and consideration, external factors can hinder the realization of a business plan. This paper discusses instances where Pret A Manger faced environmental changes in 2009. One such instance was the issue with bluefin tuna, which affected both Itsu, the sushi bar, and Pret A Manger's own sushi box. To address this, management had to remove all bluefin tuna from their establishments and find an alternative that would still satisfy customers. Metcalfe, founder of Pret A Manger, acknowledged that recalling the tuna would lead to losses for the year. This could potentially upset loyal customers who enjoy the tuna and cucumber sandwich and drive them towards other sandwich bars offering tuna sandwiches. Another example mentioned in this paper highlights positive economic feedback indicating a prosperous real estate market in 2010. Encouraged by this news, Pret A Manger's founders and leaders decided to expand their successful business into the North of England and other areas to reach more people. In conclusion, effective execution of a business plan can have significant implications on an organization by allowing for anticipation of potential income as well as losses resulting from expenses and poor decisions.The sky's the limit for a company's potential success if they have a well-crafted and executed

business plan.

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