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, undermines the argument that Panera Bread should expand into Asia through franchising?
A) Quality control is a high priority for Panera Bread.
B) Panera Bread wants to access the Asian market quickly.
C) Panera Bread's primary competitor has already expanded to Asia.
D) Many Panera Bread managers have expressed interest in relocating to Asia.
Question 2
Offshoring provides the company with access to foreign markets while avoiding ________.
A) relocation of the company to other countries
B) competition between companies in the global market
C) trade risks
D) trade barriers
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