Panera Bread is a chain of cafes serving sandwiches,soups,and freshly baked breads.The company began in 1981 with stores primarily located along the east coast of the U.S.Since then,the firm has expanded to over 1,300 locations throughout the U.S.and Canada.The firm has strong earnings and has been designated by Business Week as a "Significant Growth Company." Panera Bread executives are considering the idea of expanding globally by opening cafes in Asia through a franchising strategy.Which of the following,if true,supports the argument that Panera Bread should expand into Asia through franchising?
A) Panera Bread executives want to test the Asian market with a short-term commitment that allows them to make quick profits.
B) Panera Bread executives want fast access to the Asian market without a significant investment of capital.
C) The Panera Bread menu changes rapidly, and each cafe's artisan bread bakers receive regular training on new recipes.
D) The Panera Bread mission is to make excellent bread available to customers around the world.

Question

Quizplus · Accepted Answer

The statement that Panera Bread executives want fast access to the Asian market without a significant investment of capital supports the idea of expanding through franchising, as it allows the brand to enter a new market with low upfront costs and leverage the resources and expertise of local franchisees. Option A is not a good reason for a company to expand globally, as it suggests a short-term approach focused on making quick profits, which may not be sustainable in the long run. Option C is irrelevant to the decision of whether to expand globally, as it only talks about the company's menu and training practices. Option D is too general and does not provide any specific reasons why franchising would be a good strategy for Panera Bread to achieve its mission.

Panera Bread Is a Chain of Cafes Serving Sandwiches,soups,and Freshly