Panda Express Company Analysis Paper Example

Introduction

As the fastest and the greatest growing Asian company in the United States, it is important to note that the main business of Panda Restaurant Company covers thirty-nine regions or states. Panda Express is a restaurant that serves Chinese cuisines prepared by individuals with American or Chinese descent founded in 1983 (Bloomberg, 2019). With globalization and technological development, Panda Restaurant Group Inn, always maintain its traditional features and focus on the modern corporation management. However, in normal market operation, PRG has been facing severe problems caused by market changes and diverse culture. The report will focus on macro and microenvironment of the industry and company respectively to conduct a SWOT analysis for company analysis.

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A company analysis of Panda Express Inc

Macro analysis information obtained from D&B Hoovers indicates that the company operates in the restaurant industry and other companies in this niche also operate several restaurants and other eating places, including full-service restaurants (Hoovers,2019). It is therefore correct to mention that the company works in a monopolistic type of market: whereby several companies produce differentiated services. The company's head office is in Rosemead, California. Company analysis is the process of analyzing the financial statement's data of a company to determine its intrinsic value (Maurya,2016). It is also called fundamental analysis. Fundamental analysis is carried out on not only historical data but also present data for valuation. The process of company analysis has several advantages both to the individual investor and the organization. Through company analysis, investors can use PESTEL analysis which is an acronym for (Political, Economic, Social, Technological Environmental and Legal). The results obtained from PESTEL analysis can be fundamental in conducting SWOT analysis which is an acronym for (Strengths, Weaknesses, Opportunities, and Threats). This is useful in comprehending the company's current and possible future position in its particular industry.

A SWOT analysis of Panda Express

Strengths: The Company has splendid brand recognition and brand management. The restaurant offers a variety of foods. Their logo leverages on an image of a Panda which is a likable character. The company has excellently delocalized their business. Currently, the company operates 2000 restaurants in different geographical locations (Bloomberg,2019). This is important such that enables diversification of risks in light of operating in different environments. The parent company Panda Inn has diversified its portfolio by Panda Express and Hibachi-San.

Weaknesses: Due to the enormous expansion of company management becomes a problem. This may result in high employees turn over which is an internal environment problem. Because it is a private company, it has limited liability for its members. Furthermore, because the business is limited to one cuisine and it does not offer customer variety such that this reduces customer utility. Some special materials needed to prepare the cuisines might not be locally available.

Opportunities: There is a large customer base in the United States considering the immense number of Chinese immigrants. The company has ventured into newer markets. For example, in 2011, Panda Express opened its first restaurant in Mexico City (Smith,2011).

Threats: The business uses labor intensive method of production managing a large number of personnel can result in operational failures. There is also present strong competition from other Chinese centered restaurants segments such as Pei Wei Asian Diner, P.F. Chang's and Sarku Japan. There are also other restaurants that serve full meals posing a competitive threat to Panda Express (Hoovers,2019)

Merits of company analysis

A business that conducts company analysis obtains several advantages that can be associated with both internal and external environment of an industry. It enables investors to calculate the intrinsic value of the company's shares. Stock and equity. It is also a preferred metric of business performance and a tool for evaluating managerial decision making and risk management prowess.

References

Panda Restaurant Group, Inc. | Parent company of Panda Inn, Panda Express & Hibachi-San. (2019). Retrieved from https://www.pandarg.com/

Company Analysis of Panda Express Inc. (2019). Retrieved from https://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4220386

Smith, K. (2011). Panda Express expands with new location in Mexico City. Retrieved from https://www.sgvtribune.com/2011/09/08/panda-express-expands-with-new-location-in-mexico-city/