Paul Bakery – Analysis
PSome data… Boulangeries Paul SAS, group Holder. Since 1889 449 Bakeries in 27 countries:324 bakeries in France –125 across border, eg: Spain, Dubai, Japan, USA, Qatar, Switzerland… 2100 employees – 4 500 salaries travaillent pour le groupe Holder 216 millions d’euros de chiffre d’affaire(en 2003) Bread fabrication: stages of kneading, shaping-fermentation cooking Company analysis – 2 people (Louise, Pat) Internal analysis of cost structure Revenues per store, per year: 750 000 eurosAnalysis of business model Where are Paul’s core competencies * Traditional bakery. Make bread at the point of sale * Scope/scale economies in ingredients procurement.
Because of the 50 millions of bread per day. How does Paul make its money * Variety of products. More than 150 different breads * Restoration place What differentiates Paul bakery * Localized in cities bigger than 100,000 hab, but also around cities, in much frequented places or in big malls.Also in train station, airport, or road station * Franchise: 1/3 stores; JV * Formation/training for manager for entrepreneurial skills. Goal : Paul stay a little bakery and a big chain in clients’ mind * Don’t want to adapt to much its products because clients want the French taste * Possibility to have a break in Paul bakeries since 1987.
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Eat sandwiches and have a drink – tearoom * No frozen bread comparing to others bakery chains FrameworksHeptagon of global advantages PAT Financials Where are they generate willingness to buy compared to competitors * Not a simple bakery, also a restoration place * Quality of products * Variety of products Where are their problems now Globalization of customers need to follow its customers across borders Growth imperative expansion across border Need to improve its expansion across border, because encountered difficulties in its implantation, eg:USA Franchise system :Chiffre d’affaire moyen par unite en national : 750 000,00 EUR Droit d’entree : 48 000,00 EUR Redevance d’exploitation % : 5,00 % Redevance publicitaire % : 1,00 % Autres obligations financieres : Achats au franchiseur Apport personnel minimum : 500 000,00 EUR Investissement total hors pas-de-porte : 450 000,00 EUR Superficie mini. m2 : 100,00 m2 Superficie max. m2 : 200,00 m2 Type d’emplacement : En centre ville ou centre commercial, N°1 ou 1 bis. Zone de chalandise minimale HABITANTS : 100 000,00 hab.