Subway Franchise: SWOT and Management Analysis

Analyze the goals and objectives using the mission statement as the basis.

1.1 Mission Statement of the selected organization

To provide the tools and knowledge to allow entrepreneurs to successfully compete in the QSR industry worldwide by consistently offering value to consumers through providing great-tasting food that is good for them and made the way they like it.

Goals of the mission statement

SUBWAY restaurants’ goal is to be ranked the number one restaurant by consumers and number one in restaurant country in every market that they serve.

Environmental factors which affect the company

2.1 Political effects

Monitoring, understanding and adapting to the political environment is absolutely essential for any business, because it significantly affects every business, some of the factors are

1. Constancy of the government
2. Type of Government (democratic, dictatorship, monarchy, etc)
3. The government have Economic policy
4. Available Trade policy
5. Diplomatic actions in nearby countries

Furthermore, political context can change for the foreseeable future.

2.2 Economic affects

When walking down the Subway restaurant, it’s impossible to overlook the ever-changing price of food. According to the Food Timeline, in early part of 1990s one Italian herb and cheese bread cost 1pound and 50pence, by 1998, that same Italian herb and cheese bread cost 3 pounds, on average. The entire site of food economics transformed greatly throughout the periods, absent from the agricultural economy of the 1930s to the technological, consumer-driven market. Also this alteration, there are many number of other issues that impact food economics.

2.3 Production and Supply

As improvement of technology came to farms, the landlords able to produced more food and transported it to marketplace extra successfully. But still, quick production does not for all time signify good prices. The industrial market is brutal, and maintaining cost of the farms are important. To build up for this, some countries like the United States offer farm subsidies in direct to steady farm manufacture and the food marketplace. in addition, studies continues searching for ways to get better food give ways in the face of an ever-rising population.

2.4 Consumer Demand

The tastes of people all over the world revolutionize from time to time, mostly when showing to new civilizations or facts.

For example, in the 1980s America began acceptance sushi and other Asian-fusion foods. According to Food & Wine Magazine, from 1988-1998 the amount of sushi bars quintupled in the United States. Likewise, with the focus on strong eating, as of 2010 the market for organic foods grew to $14 billion.

2.5 Global warming (ecological)

When the crops damage by weather, the price of that loss will increase the prices consumers’ payment. Scientists learning the matter of global warming for it are predictable lasting impact on food financial side. Spectacular climate changes crash give ways, and hence the food supply. To make up for this, farms on the going ingestion in technological process that help reduce loss. This extra cost for promote also figures into the last price of food.

2.6 Preparation Time

Time is money. Another affecting economic factor is food lies in the hands of the cook. In formative range, many cooks must be acquainted with how long it takes to locate and prepare exact items. This particular propensity made fast food and instant mixes more and more popular, particularly in Subway or anywhere people work outside the house.

Critically evaluate the strengths and weaknesses, taking into consideration all the environmental factors.

SWOT analysis

(S)trengths

Subway Restaurants is the famous submarine sandwich franchise based in the United States and all over the world having companies in more than seventy two countries enclose over 20,532 restaurants in this planet.

The business has been using a number of nontraditional channels for creation of its system physically powerful and the expansion rate of the company has also been rising.

Subway has well well-known itself as a brand name in the fast food manufacturing world and having brand respect all over the world. Because of outstanding to its great strategies the company has turn out to be the most important franchise in the world in a very small phase of time. The company has still situated itself in places like hospitals, schools, churches, and famous retail supplies. This creates the start up price of franchises low.

Subway is recognized to be companies that provide subs sandwich healthy and that are favored and to a great extent as evaluated to food items exist by other fast-food chains like Sonic Drive and McDonald’s. The company has attached with the American Heart Association to add to its figure. The food menu of the Subway repeats the high persist of healthy and fresh food which is quick too.

The new decoration of the companionship is an additional issue that provides a fresh feeling pinnacles the customers. Some of the newly introduced products imitate the healthy offering of the company.

The marketing and promotional strategies adopted by the company are an example of the positive focus on demand, consumer preferences, trends, modernism and manufactured goods leveraging. These additional add to the potential to the company.

The market share and the profits of the company that was outstanding to sandwiches greater than before greatly as a result to the reduced interest of the customer towards the chips and hamburgers due to raise consciousness about healthy foods.

(W)eaknesses

The adornment and give the impression of being of the franchises is said to be old an outdated. Another crisis with franchises is that the liking intensity of the customers is not the similar across franchises and also some franchises execute very poor.

Service obligation is not reliable from store to store. This can supposed to be connected to employees as there is not much incentive and the revenue rate of the staffs is very high.

(O)pportunities

The company can spend extra money to expand its industry in the international bazaar and also make developments in its adornment and look to give confidence dine-in. By civilizing the customer service satisfaction for the customer can be greater than before, and also the loyal customer base will increase.

The company can recover the relation inside and outside the organization by altering its strategys a bit.

(T)hreats

The company may face serious threats from some of the big fast food connection in the world which comprise brands like Wendy’s, KFC, and McDonalds etc. These restaurants are extremely older and have huge industrial trustworthy customer base over the years.

The present financial recession is an additional threat for the business as it straightly affects the use and expenditure authority of the consumers.

The information requirements at each of the levels in the management

A large level our workers are serving our Supervisors who are serving our Middle Managers who are serving our Vice Presidents, who are serving the CEO, who is presumably serving the Board and the shareholders/investors. The extraordinary part is, by plan, also everybody has back to their customer or the client is actually supposed to serve the company!

If customers are truly our focus, or as a effect, if we must focus on serving our workers so that they will serve our customers,

A present fashion in sales organization design is to be buyer centric. The buyer centric sales mock-up puts the buyer at the middle of the sales procedure in an attempt to bring into line customers’ wants and buying first choices with the method we intend our sales tools and produce value.

Adjoin this to our “excellence customer service” initiatives, “the customer is always right” announcements, and customer service surveys that were once rare, but now seem to have attached themselves via webpage to the bottom of every major grocer, retailer and restaurant chain’s receipts in fresh memory.

Strategic levels

Chief Executive Officer

Management level

Marketing Managers

Finance Managers

Production Manager

Knowledge level

Supervisors

Operational level

Employees

Information systems at each of them to support the major business functions of the organization and strategize its operations giving it the required competitive edge. Examine and recommend IS to facilitate a healthy The information systems need to be reliable, sophisticated and user-friendly for Nestle.

IS Information System [application of] – effectiveness to focus on goals. An IS collects process stores analysis and disseminates information for a specific purpose

Major 6 types of systems

• executive support systems (ESS)
• decision support system (DSS)
• management information system (MIS)
• knowledge work system (KWS)
• office automation systems (OAS)
• transaction processing systems (TPS)

ESS / EIS

Strategic level

Inputs – aggregate data (with drill down)

processing -Interactive

function-Monitoring key performance indicators

E.g. – sales, costs, profits, growth, share prices, capacity utilization

users- Senior managers

Characteristic of ESS / EIS

expensive to develop

executive information system – provide timely concise information about organization to top managers

provide internal as well as external information

economic indices

stock and commodity prices

industry trends

Decision support system (DSS)

Management level

Inputs – low volume data

Processing – interactive

Output – decision analysis

Users – professionals staff

Example – contract cost analysis, outsourcing decision, pricing, decisions etc …..

Key elements for DSS

Models base

Data base

User Interface

Business orientation

What-if analysis

End user makes changes to variables or relationships among variables and observe the resulting changes in the values of others variables

Management information system (MIS)

Management level

Inputs – high volume of data

Processing – simple models

Outputs – summary reports

Users – middle managers

Example – annual budgeting, quarterly sales reports, annual production reports

Characteristic of MIS

Structured and semi -structured decision

Report control oriented

Past and present data

Internal orientation

Lengthy design process

Knowledge work system (KWS)

Knowledge level

Inputs- deign spaces

Processing – modelling

Outputs – design graphics

Users – technical staff

Example – engineering work station

Transaction processing system (TPS)

Basic business systems that serve the operational level

A computerized system that perform and records the daily routine transaction necessary to the conduct of the business

Point of sales system

Executive information systems (EIS)

Function: monitoring key performance indicators

Users: senior manager

Expensive to develop

b) How information systems can be used to facilitate Customer Relations Management aspects of Nestle.

Providing customer feedback forms, so customer can send feedback through URL also that will help to improve the organization

Asking about customer requirements in general when customers call for problems automated record system can help to find out a solution in future

Take action straight to customer feedback

demonstrating how the company pay attentions to its customers

heartening a service culture all the way through the association

Companies also employ a wide variety of tactics to directly give confidence customer faithfulness through encouragements or special treatment. Some examples are

Creating a point system that offers rewards once a customer accumulates a certain number of points

supply discount or free-product coupons

Running competitions in which regulars may win prizes by towards the inside a drawing

Enormous customer service enlarges customer loyalty, forces income and decreases in force charge by using Information System. But, usual customer service applications frequently include only a portion of the information agents need to give great service. Because important information about customers, products and services sits in a huge amount of systems both inside and outside the business firewall, and in several forms such as database records, SaaS applications, text (letters, forms, email and chat messages, IVR scripts, blogs) and even voice recordings (call records). as long as inclusive, combined data access has to date just been too expensive and too complex. In addition, conservative customer service applications are too frequently hard to use, and operate with intolerable data latency rates and response dispensation times.

FOCUS ON CUSTOMER LOYALTY

The purpose of most well-developed customer relations programs is to turn one-time or occasional customers into loyal buyers. Customer relations specialists distinguish loyalty from satisfaction, noting that it’s possible for customers to be satisfied but have no particular loyalty. Indeed, one mid-1990s study found that three-quarters of the customers who reported being satisfied with one company’s products still bought competitors’ products as well.

The emphasis on loyalty is mostly driven by the bottom line. Keeping existing customers is cheaper than finding new ones, and having a base of loyal customers for one product or service improves sales for the company’s other offerings. By some estimates, the amount a company must spend to attract a new customer is five or six times that needed to keep bringing back loyal customers. Repeat customers are also more likely to recommend the company to others and to try out the company’s latest products. The financial results are that a small percentage increase in customer loyalty can translate into a significant rise in profits.

The opposite of loyalty-customer turnover-can deplete a company’s marketing resources and can signal weakness in the firm’s brand image or competitive position. However, high turnover does not necessarily mean that the company’s underlying product or service is at fault. Rather, it may be the customers’ negative (or simply neutral) experiences and impressions that stand in the way of loyalty. In the late 1990s one executive went so far to suggest that happy customers would even buy bad products from a company they liked, whereas unhappy or indifferent customers might ignore a really good product.

TOOLS FOR BUILDING STRONG RELATIONSHIPS

Strategies for getting better customer relations and developing customer loyalty variety from just opening up communications channels to implementing elaborate point systems that reward loyalty. In order to be efficient, such programs and schemes must be tailored to customer requests and interests. For example, if a company devastates its would-be loyal customers with frequent mailings (or broadcast faxes or e-mail) consisting of unimportant or unappealing offers, it may be turning itself into a irritation instead of hopeful loyalty.

3) Ethical Issues – Examine the ethical issues of Information Systems for this organization.

Specific DSS benefits

• Improving individual effectiveness
• Expediting solving problem
• Make easy interpersonal statement
• Promoting training or learning
• growing managerial control

EIS issues

EIS Cost

Employee Resistance to the EIS

Management Resistance to the EIS

Who is the user?

sponsor for EIS

Information Technology (IT) and modern management accounting

Information technology has had a dramatic and far-reaching impact on the structure and conduct of business. IT has also been frequently poorly employed at great cost to companies.

When implemented well, IT has made it possible for companies to exploit the benefits of:

ABC systems

E-commerce

POS (point-of-sales) information to management and suppliers

In many cases, the benefits of IT have been an increase in the accuracy of information and faster decision-making.

A review of key IT with reference to business applications

Executive Information Systems (EIS/ESS)

Designed to provide senior management with easy-to-use information pulled out from internal and external sources

Features: flexible, sophisticated, real-time responsiveness

Management Information Systems (MIS)

Designed to provide summarised information files used for management accounting and reporting purposes (i.e. reporting enabling management to make timely structured decisions for planning, controlling and directing activities)

Structured decisions: recurrent and relatively simple decisions addressing repetitive situations in a deterministic environment

Features: relatively inflexible, focused on internal processes

Enterprise-Wide Resource Planning (ERP)

Decision Support Systems (DSS)

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Combine data and analytical models to support management decision making on issues which are exposed to significant uncertainty

Provide the decision maker with alternatives, evaluating them under a range of possible conditions

Expert Systems (ES)

A form of DSS consisting of a specialised database and a set of rules on how input data should be correlated and interpreted in order to indicate the best course of action

Example: loan application ES

Ethical Issues

An ethical approach to doing business is not just a matter of personal virtue, but needs to be addressed by policy (and action) at the company level as well. Ethical frameworks are not merely “nice to have”, but are considered crucial to building long-term professionalism. Their absence can undermine motivation and the sense of purpose a company must have in order to succeed.