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STUDENT ID;   21501016






Pret A Manger is a UK and a global based restaurant, coffee and organic food business.  In order to carry out the identify factors Pestle analysis model has been used and in order to carry out its competitive industry analysis Porter 5 force model is used. On the other hand, one of the major issue which is faced by Pret A Manger is that the changes in price of competitors forces the company to change its price, to overcome this issue, Porter generic strategies has been used. On the basis of SAFe evaluation technique, one of the best suitable strategies along with justification has been recommended.


(A) Executive summary 3

(B) Development of appropriate strategic choice 4

(C) Development of appropriate evaluation  criteria   5

(d) Selection and justification of strategic choice 6

References 8


In modern era, strategic management plays a very crucial role in the growth and success of an organization. Further it can be defined as the process of planning, monitoring and assessment of all those things which are essential to achieve the objectives of a company. In simpler terms, strategic management is defined as the strategies and action plan which is developed by managers to enhance organizations performance (Peterson and Fleet, 2004). This report is based on Pret A Manger which is a global organic food and restaurant empire. At present it is having more than 350  Pret A Manger stores worldwide in the UK, USA, Paris, Hong Kong and Shangai. Serving more than 300,000 customers on daily basis. The strategic purpose of Pret A Manger. is to improve and develop the products offered by the brand. On the other hand, its purpose is to focus on customer satisfaction and improving the level of customer satisfaction. Generating higher sales and profitability is also one of the strategic purposes of the brand (Armstrong, 2008). The organization is affected by some of the internal and external factors. In terms of external factors it is affected by political, economic, social, technological, environmental and legal factors. In the last few years the cut down in budget and spending has forced people to lower down their overall spending.

The economic factor such as unemployment has also decreased the sales of the brand. The growing young customer is captured by Starbucks which is a major competitor of Pret A Manger. Pret A Manger concentrates on a fresh healthy menu. Affects and lower down the sales of brand (Ash ill and Frederickson, 2013). The government of UK is asking Pret A Manger Plc. to reduce its carbon footprint. Along with this environmental law has forced the brand to minimize its waste and lower down the transport emission. In terms of legal factors the VAT increased by UK government has resulted in creasing the overall cost of operations of Pret A Manger Plc in the UK. After carrying out porter five force analyses, it has been found that the power of customer is high as they have wide variety of options available with them, on edibles choice (Keller, Parameswaran and Jacob, 2011). The supplier is also high and the thereat of new entry is very less because huge investment is required to enter this industry. There's that of substitute, which is low and threat of rivalry is very high because there are too many firms which are competing with each other (Bryson, 2012). Therefore, it can be stated that the brand is getting very much affected by the external environmental forces and competition in the market.   


' Strong presence and market share in UK is one of the major strength of Pret A Manger Plc.

' The customer base of Pret A Manger. Is very strong Weakness

' The prices and operations of Pret A Manger Plc. are greatly affected by external factors

' A change in price of competitors leads to price change of Pret A Manger Plc.   


' Opportunities to introduce online sales and delivery as most of the organic food/restaurants have already started operating via online sales  

' opportunities to introduce unique and different edible products   Threats

' One of the major threat which has been faced by the brand is high level of competition in industry where it is operating

' High power of suppliers and buyers is also a threat  



In order to grow and achieve its strategic purpose Pret A Manger Plc., Is available with a number of strategies. The strategy will help in getting competitive advantage over other market players and to grow in effective manner. The generic strategies of porter are mentioned below as:

Cost leadership strategy-

In this strategy the brand will be required to become a low cost producer by lower down its entire cost of production. Further Pret A Manger will be required to sell its products either at average price in industry or a price lower than the average price. The benefit of this strategy is that at the time of price wars the brand will be able to earn adequate profit by lowering its cost of production. On the other hand, its rival firms will start suffering from loss in the same situation (Nandakumar, Ghobadian and O'Regan, 2011). Cost can be lower down by dealing with supplier and improving the efficiency of the entire edible food process. It can also lower down with the help of lowering down the unnecessary expense and material cost. While adopting this strategy the brand will require making sure that it has effective channels of customer's base.

Differentiation strategy-

Pret A Manger Plc., Can also adopt the strategy of differentiation where it will be required to develop products which can unique and different from what other market players are offering. With the help of this strategy the brand can also charge high price for its products as it is not offered by any other Organic coffee and restaurant business. Pret A Manger Plc., will become its single seller. On of the other hand at the time of using such strategy the brand needs to develop highly creative and skilled development team (Global strategic framework, 2013). The sales team of Pret A Manger Plc. will be required be very active so that they can communicate the benefits and attributes of menu products.  

Focus strategy '

In this strategy the brand will be required to narrow down its market segment and need to focus on satisfying the need and demand (Parvinen, Tikkanen and Aspara,  2007). At present Pret A Manger Plc. is offering fresh organic menu products and services for the entire market and thus it is facing heavy competition from other market players. It can narrow down its market segment and can deliver fresh menu to particular all segment such as Men, women, kids or to a particular age group. One thing which the brand will require to ensure is that it is offering wide range of edible food to a narrow market segment.  

From the above stated strategy any one of the strategy can be used by Pret A Manger Plc. In order to achieve its strategic purpose. It is also required by the brand to carry out the evaluation of each and every strategy before selecting and implementing any of them.   


In order to evaluate any kind of strategy one of the best option is SAFe evaluation techniques which consist of certain parameters to evaluate the strategy. The parameters are suitability, acceptability and feasibility. Every organization use strategy to overcome the issues faced and to achieve its aim and objectives (Blumentritt, 2006). On the basis of SAFe evaluation technique the parameter of suitability checks whether the strategy adopted by the firm has addressed the issues or not. On the other hand, acceptability means whether strategy has been adopted by the stakeholders. Feasibility it means that whether the strategy will work in practical or not. All these factors are essential for evaluation. The SAFe evaluations of three strategies are mentioned below as:

Cost leadership strategy-

One of the main issues which have been faced by Pret A Manger Plc. is related to prices. The competitors are driving the price of their menu which somewhere or the other affects operations of the brand. This strategy cannot be termed as suitable as it will only lower down the cost of operation and is not the solution of the issue. Further this will not be adopted by stakeholders as it will also lower down their profit margin (Forman and Hunt, 2005). In terms of feasibility, it can be stated that this strategy is possible to implement practically.   


As per this strategy, Pret A Manger Plc., Will be required to  offer unique products to the people in market. This strategy is suitable as it is addressing the issues faced by the brand in most appropriate manner. Unique products will eliminate the brand from market competition and will also help in charging prices according to its needs. On the other hand, the prices change of competitor will not have any kind of effect on the operations of Pret A Manger plc. As it is offering unique and different taste on its products (Kotler and Armstrong, 2005). This strategy can be also termed as acceptable as the stakeholder won't have any kind of difficulty in accepting this strategy. The reason behind this is that they will be able to generate higher profit with this strategy. Along with this, the strategy is feasible with the help of research and development team.  However, they've used this strategy.   


It is the strategy in which Pret A Manger Plc. Will be required to narrow down its present market and focus on a specific market segment. This strategy is also not suitable as it won't address the issues which the organization is facing. Even if the company lowers down its market, it will be requiring changing its prices whenever its competitors are changing them (Wit and Meyer, 2010). For instance if any of the rival of Next Plc. Lower down the price of one particular segments then the brand will also require to lower down its price of the segment in which it is operating. Further this strategy may or many not be accepted by stakeholders. In this strategy, the brand will try to focus and satisfy the need of particular group in market. It may happen that the stakeholder's expectations are not satisfied when the brand is narrowing its offerings. The strategy is feasible as it can easily work in practical life.   


The best and most suitable strategy for Pret A Manger Plc. is the strategy of differentiation in which the company can develop and deliver some unique edible global food products. Out of the three above stated strategies it is the most suitable one because it will help the brand to grow in market even in the stage of tough competition. One of the major issue which is faced by Pret A Manger Plc is regarding pricing, further it has been identified that most of the time the competition drive the price of their menu products. For example if any of their Rival has adopted for a low price strategy then the brand is also required to lower down its prices (Armstrong, 2008). It has a direct impact on the profitability of the company and creates barriers in its growth and development. One of the main reasons why the strategy of differentiation is recommended to the brand is that it will help in charging the price as per need and requirement. When Pret A Manger Plc., Will offer unique menu products then it can easily charge prices according to its needs. On the other, the level of competition will also decline to a certain extent as those edible products are not offered by any other market player.

Most of the businesses in organic, restaurant sector are offering almost same kind of products and due to this reason now people are having wide variety of options available with them (Bryson, 2012). By offering unique products a new brand image can be created. The choices of costumers cannot be restricted to a certain extent. Another reason why the strategy of differentiation is recommend is that it will help the brand to lower down the power of customer which is very high at present. When the brand will start delivering unique products then the customer choices will automatically lower down. Along with this, the threat of substitute will also lower down the as people in market will get attached to the unique products offered. Therefore, it can be stated that the strategy of differentiation is very beneficial for the brand as it will assist in overcoming all the major problem or issues faced. Along with this, it will also support in attracting new customers and increase its present market share. At the time of using or implementing this strategy, the company is required to develop a creative and skilled team of development which can help in developing such a global edible product which is not offered by any other party. On the other hand, a strong sales team will be needed which can go in the market and make the people aware about the special or unique product which offered. Thus, it can be stated that the strategy of differentiation will be the most suitable and appropriate strategy.


Books and journals

Armstong, M., 2008. Strategic Human Resource Management: A Guide to Action. 4th ed. Kogan Page Publishers.

Ashill, J.N. and Frederikson M., 2013. Strategic marketing planning: a grounded investigation. European Journal of Marketing. 37(3/4). pp.430 ' 460.

Blumentritt, T., 2006. Integrating strategic management and budgeting. Journal of Business Strategy. 27(6). pp.73'79.

Bryson, M. J., 2012. A strategic planning process for  organizations. Long range Planning. 21(1). pp.73-81.

Forman, H. and Hunt, J. M., 2005. Managing the influence of internal and external determinants on international industrial pricing strategies. Industrial Marketing Managemnet. 34. pp.133-146.

Keller, K. L., Parameswaran, M. G. and Jacob, I., 2011. Strategic brand management: Building, measuring, and managing brand equity. Pearson Education India.

Kotler, P. and Armstrong, G., 2005. Principles of Marketing 11th Edition. New York: McGraw-Hill Publishing.

Nandakumar, K. M., Ghobadian, A. and O'Regan, N., 2011. Generic strategies and performance 'evidence from manufacturing firms. International Journal of Productivity and Performance Management. 60(3). pp.222'251.

Parvinen, P., Tikkanen, H. and Aspara, J., 2007. Corporate strategic marketing: a new task for top management. Business Strategy Series. 8(2). pp.132'141.

Peterson, O. T. and Fleet, V. D. D., 2004. The ongoing legacy : An updated typology of management skills. Management Decision. 42(10). pp.1297'1308.

Wit, B. D., and Meyer, R., 2010. Strategy: Process, Content, Context. Cengage Learning. pp.285- 288.


Global strategic framework.  2013. [Online]. Available through: <>. [Accessed on 2nd December  2015].

Next Plc. 2013. [Online]. Available through: <>. [Accessed on 2nd December  2015].

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