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Foundation of business communication of Pret a Manger

University: California Institute of Technology

  • Unit No: 2
  • Level: Post Graduate/University
  • Pages: 5 / Words 1220
  • Paper Type: Assignment
  • Course Code: BUSI3311
  • Downloads: 1029
Question :

 This Assessment covers following questions:

  • Evaluate the competitive position of the organisation through Porter’s Five Forces Model.
  • Analyse and Identifying important issues faced, resourcing and any management and operational issues facing the management of the business.
  • Discuss businesses, customers, suppliers, competitors, performance, strengths and weaknesses and challenges faced.
Answer :
Organization Selected : Pret a Manger


Pret a Manager started their restaurant chain in 1986 which strictly deals in organic products like sandwiches, coffee etc. In the recent past, two customers of Pret a Manager have died after eating their dairy-free products. The independent authorities have found out that there were dairy protein traces due to which the customer died (Gallagher, Kraut, and Egido, 2014). Pret has defended itself by blaming Coyo who has supplied the product to Pret. In this presentation, the impact after this incident will be discussed and how they manage it saves their brand name.


  • Strengths
  1. Pret a Manager has been running from the past 30 years and have opened more than 450 outlets all over the world. Customers trust on Pret products is increasing significantly.
  2. Pret is turning clients into loyal customer as they are serving 300000 customers on a daily basis.
  3. They offers 100% organic foods that's why increasing number of vegans are craving for Pret's product.
  4. They only offers fresh food and whatever remains at the end of the day is donated to the NGO's.
  5. Pret a manager has just acquired for 1.9 dollars billion deal.
  • Weaknesses
  1. Weak global existence as Pret a Manager is only in 9 countries.
  2. The image of the company has been changed after few incident of allergies arises after eating Pret's products.
  3. Pret's can't offer ambience and environment like their competitors due to cost factor.
  4. Wastage of unsold foods as it directly affects the operating cost of the company.
  5. Low switching cost for the customer as there are so many competitors out there.
  • Opportunities
  1. The number of vegetarians are increasing remarkably and their mainly products are vegetarian.
  2. Pret can integrate with the local farmers so that fresh food can be available in low cost.
  3. The Asian market is still untapped for Pret a Manager.
  4. The availability of products is limited for the customer.
  5. Pret can increase their customer base through heavy marketing.
  • Threats
  1. Their competitors have already established themselves in the market like Starbucks, White castle or Krispy Kreme.
  2. Quality of the food will get disturbed if the quantity increases.
  3. Asians country prefers to eat dairy products so the investment in the other market will be high.
  4. Pret have to decrease their operating and fixed cost so that revenue can be generated.

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Porters five forces model

This model is used to scan the external environment and how a company can overcome its weaknesses by working on them. In the recent past companies are using this model to form a strategy so that they can beat their competitors (Pride, Hughes, and Kapoor, 2014).

  1. Threat of new entrants: Moderate
  2. Bargaining power of suppliers: Weak
  3. Bargaining power of buyers or customers: Strong
  4. Threat of substitutes or substitution: Strong
  5. Competitive rivalry or competition: Strong

Threats of new entrants:

Entrants in this industry brings many things like unique products, new taste and innovative ambiance. But the probability of getting failed is high and investments done by the company is also high. A new company should focus on its quality, quantity, restaurant environment and most important the Price. Though there are so many companies that have already captured half of the market so the risk of failing in this is also high. So the threat of new entrants is moderate in nature.

Bargaining power of suppliers:

In this industry, there are so many farmers who want to sell their raw products to the company. As the numbers of farmers are high, their power of bargaining declines. So it benefits Pret a manager.

Bargaining power of buyers:

In this era, there are so many option available for the buyer. In context to Pret, more than 100 different outlets are running in London only (Meyer. and Peng, 2016). So if the buyer is not satisfied with the product then they can switch to a different restaurant. That's why bargaining power of buyer is strong.

Threat of substitute:

There are already big names in the market who has acquired customers across globe. In context of Pret a Manager, threat of substitute is high because switching cost is low and options available in the market is high.

Competitive rivalry:

Competition is high as there are big names like Starbucks, Costa coffee, White castle and Krispy Kreme and many more who have already acquired the customer. All the mentioned company regularly try to innovate their products or improve their customer experience so that they can change them into loyal customer. That's why competitive rivalry is high against Pret a manager.

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Issues faced by the company:

  1. Pret a manager has acquired by JAB holdings for 1.9 billion dollar. So the tragic loss of two people after eating their products have raised some concern for their products. So now its their responsibility to maintain the trust issue of the clients,
  2. Entry into Asian market is the biggest challenge to Pret a Manager as what they are offering is totally different than what Asians prefer.
  3. Operating cost of the company should decrease then only they will able to earn some profit.

Most people are now ignoring to visit pret a manager after the death of two people (Jussila, Kärkkäinen and Aramo-Immonen, 2014

  1. ).
  2. Pret a manager should find new supplier other than coyo.
  3. Prices war between big brands and Pret a manager would be a huge concern for the management.
  4. Ban on advertisement of junk foods in Britain would be the first priority of the managements.
  5. Before this death pret a manager has ignored 9 cases of allergies related to Sesame so the reason behind that should be find out.

Related Sample - Business Analysis and Functional Areas of IKEA


From the above-given analysis it has been concluded that due to the tragic loss of two people their brand name has been affected in a bad way and the company has a lot to do now if they want to be the market leader of the industry. Better management, unique strategies, the best product, and faithful employees is what makes the company best and Pret a Manager should follow these rule if they want to be the best.


Books and Journals

Bovee and Courtland, 2012. Business Communication Today, 10/e. Pearson Education India.

Galegher, J., Kraut, R. E. and Egido, C. eds., 2014. Intellectual teamwork: Social and technologicalfoundations of cooperative work. Psychology Press.

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