Panera Bread is a chain of cafes serving sandwiches, soups, and fresh baked artisan 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 "Hot 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

Option B supports the argument by stating that Panera Bread executives want fast access to the Asian market without a significant investment of capital. This can be achieved through franchising, where the franchisee invests most of the capital required to open new cafes, while Panera Bread provides branding, recipes, training, and ongoing support.

Panera Bread Is a Chain of Cafes Serving Sandwiches, Soups