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 United States.Since then, the firm has expanded to over 1,300 locations throughout the United States 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

Option B supports the argument that Panera Bread should expand into Asia through franchising because it suggests that the company can enter the Asian market quickly without committing significant capital resources. Through franchising, the company can leverage the resources and expertise of the local franchisees to establish its brand in the Asian market. Options A, C, and D do not provide support for the argument that Panera Bread should expand into Asia through franchising. Option A suggests that the company may prioritize short-term profits over long-term growth, which does not align with the strategic goals of expanding into Asia. Option C provides information about the company's menu and training policies but does not provide any justification for expanding into Asia. Option D describes the company's mission but does not provide any actionable justification for expanding into Asia through franchising.

Panera Bread Is a Chain of Cafes Serving Sandwiches, Soups