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One of the key strategic issues is the challenge in developing new products with the present culture. The company is not able to move to other product segments and this issue may lead to product failure when the organization tries to diversify into new categories to make advantage of the low inflation rates. They need to adopt new practices that will help to foster innovation and develop new product ideas that can attract the customers. When the company fails to take advantage of the changes in external environment, they may fall behind competition and new competitors may gain control over the market. Another key strategic issue involves the error in forecasting which leads to inventory wastage and loss for the company. As the days inventory of Panera Bread Company is higher compared to competitors they are holding the inventory for more time and this is mainly due to the fact that the planning and forecasting is not efficient. The seasonal nature of demand for profitable product also increases the inventory as well as the need for working capital. The company needs to adopt better forecasting methods that can analyze the seasonal changes in demand along with the usual demand in various markets so that they can gain control over the inventory as well as the working capital.
Most important or highest priority problem/opportunity - Explain why the chosen strategic issue, out of the two identified for topic above, is the key strategic concern for the company. Comparing to other company as Panare.
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