Analysis of Subways internal and external environments Essay

This essay get out analyse the scheme pipes upcountry and immaterial surrounds and their feigns on this composition. This go forth include a swot analysis on resources and capabilities which atomic number 18 a part of the internal surround and on customers, tryrs, competitors, pressure groups, stinting, political, technological, skunkcel environment and emerging trends in the external environment. A grind away Analysis is a multipurpose technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities unbuttoned to you and the Threats you face MindTools. com (2013).Internal environment Resources 1. The work force Strengths electron tube restaurants proceed out of on the whole over 36,000 locations in 99 different countries. subway is an equal chance employer, where every employee dejection be assured that they will be treated with respect and non be discriminated or harassed for each(prenominal) reason. They unceasingly pr ovide employees with training and encouragement by team upwork, against sh ard goals and benchmarks and to be account adapted for their actions. Weaknesses umpteen pipe employees ar younger generations and argon particularly inexperienced in the employment.This preempt be a weakness for subway as this younger group of employees confound other priorities such as coach/university which mess draw off it difficult when creating the axial rotation for shifts and macrocosm un masterful john front delays in benefit and not decently organised meals going to the customers. Opportunities resistance has the probability to train their unskilled employees in a way that suits them and is in line with the organisations goals. Threats thermionic valves c each(prenominal) competition brook similar work countersink conditions and environments which can be a affright to underground by these companies attracting toweringer skilled workers in the indus piddle away from pi pe.2. large(p) letter Availability Strengths As electron tube is operated as certifications, the overall gild has a crowing amount of capital coming in from the franchises. resistance (2013) states The SUBWAY reachs take in up be atomic number 18 exceptionally show metre for a franchise of its size and stature. Total investment will depend on galore(postnominal) factors, including location, rent, loss size and equipment. Weaknesses There ar some(prenominal) economic conditions, such as unemployment that feed to weaknesses concerning thermionic tubes capital.Combine these economic issues with poor marketing strategies and it can alter the capital dramatically. For example the crude $5 Combo Deal that they be laissez passering, has resulted in a decrease in sales, as the average customer is now outgo less money per bribe. Opportunities Start-up costs of the franchises is low compared to similar organisations, it cast offs subway system to a greater extent nifty-hearted to potential owners, thither for encouraging well-nigh(prenominal) people to purchase a resistance franchise which will increase the capital of the overall company.Threats Economic issues such as the Global Financial Crisis, unemployment and inflation can cause a threat to subway from opening very much stores, which in strain affects their available capital. Capabilities 1. Marketing Strengths Eat Fresh, live Green is thermionic vacuum tubes loading to devising a positive impact in all that they do. This is very appealing to consumers, as underpasss beliefs and set are in line with theirs. thermionic tube restaurants are also navigating the world of online societal media to bring their message closer to consumers. pipe is experienced in international marketing.Weaknesses Subway restaurants lack the interior design and caliber that would welcome everyone to stay and feel more than comfortable than in the competitors restaurants Opportunities Subwa y employs superior marketing techniques and promotional strategies to attract and grow their customer rootage. The or so successful Subways promotional offer was to offer footlongs for only $5. Threats Subway runs the risk of decreasing their invitee base if they fail to meet consumers wants and necessarily if unceasing innovation and new processes are not being developed and used.2. Production Strengths Restaurants are clean and main(prenominal)tained. Preparation goes into getting the pabulum ready to be served so quick before, after and during store hours veggies need to be washed, diced, sliced and stored. All of this preparation contributes to the productiveness of the store. Without these steps, the restaurant would not run expeditiously. Weaknesses aged equipment that is no longer working at its best and issue not being available to work can be weaknesses in the production process.Opportunities Focusing their sustainability initiatives on energy efficiency, w ater & resource conservation, ware reduction, sustainable sourcing and supply chain management. Threats Equipment failure and power outages are a capacious threat to Subway concerning production. If either of these guide the Subway store would not be able to operate or let any products. 3. interrogation and Development Strengths Develops and ravel markets the food that they serve, making sure it is of high standards and quality. Weaknesses The markets are evermore changing and they cannot unceasingly source get under ones skin from the same suppliers.Research inevitably to be tire oute constantly and they do not ceaselessly lease the resources to do so, Opportunities Do customer surveys in different demographic areas to provide what those areas are in demand for. Threats Data preserve may be incorrect depending on what type of information they require and can come from unreliable sources. 4. Financial counselling Strengths Subways finance team is responsible f or tracking, organizing and reporting on all financial activities and storing this information for future reference. This data can help them find pause ways of financially running the organisation.Weaknesses Variables in costs for relieve oneself depending on time of social class and certain promotions. Variables in working class as employees come and go, more staff required for busy times of the year (holidays). Opportunities With the support they provide and the low start-up costs they offer with their franchises, they can attract more buyers and expand the Subway chain correct further. Threats Price fluctuations, for example oil, can dramatically threaten Subways financials as consumers will take lower spendable incomes which will complete them from freely expense their money.5. Information Systems Strengths Subway has a obedience board system which they use to assemblage information on their customers. to each one badger has a unique 16-digit identification num ber. The invoice enables Subway to collect data on its customers from its point-of-sale (POS) terminals to its CRM applications. Weaknesses The first loyalty mental capacity they developed was easily copied. Opportunities To introduce this card throughout all Subway stores so they can collect a bigger amount of data for their information system.Threats Without security system measures in place with their loyalty card people could produce fraudulent card game to receive rewards from the company. External Environment Customers Strengths Subway already has a strong client base because of their fresh and more nutrient products. These factors appeal to the customers. Weaknesses Customers do not constantly feel like flushed options and on occasions want a oily alternative that Subway does not provide. Opportunities Subway provides customers with the prospect to provide feedback on their products and service.By doing this the customers retain the opportunity to influence Su bways decisions with how to do things better and to percolate what products sell the best and what the customers like nearly the service they receive. Threats Poor customer service is a major threat to any air that deals with customers. Subway, without its customers, would not be able to operate. Another threat is if negative feedback from customers is pervade around then this could potentially s cover song customers from returning Suppliers Strengths Subway sources as much produce as possible topically.They try to support their local anestheticly communities as much as possible. They source this produce from suppliers that divvy up their commitment to social responsibility and sustainability. Weaknesses virtually suppliers can be unreliable and not provide stock when devoteed. Opportunities There are more opportunities to source more locally grown products and help support local businesses grow and stay in the market. Threats The supplier may not have across-the-board produce/stock to provide Subway at certain times and the supplier may thinkthat the harm they are receiving for their products is in any case low, causing them to refuse supply. Competitors Strengths Largest turbulent food restaurant chain in the world by the number of outlets. currently the Subway operates over 38,181 restaurants in 99 countries, more than McDonalds or any other fast food chain operator. Weaknesses Majority of Subways competitors offer squalider meals than what Subway can, based on the price they purchase their products at. Opportunities Subway has many competitors, so they need to stay innovative and relieve their products on top of the others that are available.They have the opportunity to promote their products as healthy options and deep-fryer free compared to their competitors to encourage more sales. Threats McDonalds, esurient Jacks and KFC are some of subways main competitors. These competitors all offer family meal deals and cheap snack sizes o n their menus which makes them more appealing to consumers. rack Groups Strengths Subway takes input from pressure groups and community members so they can improve the operations, products and service. Weaknesses Subway cannot rely on the information that pressure groups provide them with as it does not always demo the majority.Opportunities Pressure groups can be a huge opportunity for Subway to heed to their opinions and issues with the organisation and how the pressure groups think Subway can resolve these issues and develop their company to be more socially responsible. Threats Pressure groups however can be a threat as they acquiret always have the majorities input on these issues and are misrepresenting the whole community when the zip their ideas and beliefs on Subway which can make other customers stop returning to purchase goods from them. Economic Strengths Subway opens stores when the economy is doing well up.By doing this they establish their presence in the d emographic and build up a good amount of returning consumers. Weaknesses Subway need to have a contingency figure in place for when the economy in their area decreases. If they do not, potentially they will reduce in the amounts of sale because they cannot view as consumers useable incomes. Opportunities When the economy is strong, consumers have high disposable incomes. This give Subway the opportunity to slightly increase prices and promote their products more as consumers are more automatic to spend money.Threats Not all geographical areas have the same amount of disposable income and Subway needs to take this into consideration. In these areas Subway may need to offer special promotions or lower their prices to cater for this otherwise they will lose sales. semipolitical Strengths Subway follows and adheres to government legislation including the join Trading Act and policies relating to environmental conservation. Weaknesses Each state has different standards and restrictions in place which means not every Subway store can fully operate the same.Opportunities With these policies, it creates a safer work environment at Subway and helps them become innovative on how they can reduce their environmental footprint. Threats If Subway does not follow these regulations on how they operate, produce and promote their products they can be fined fibrous amounts of money or even closed in(p) down. Technological Strengths As a globose brand, Subway continues to make strides in sustainable packaging, and waste management as well as look for more efficient equipment and operational practices Weaknesses Not all applied science is good just because it is new.Subway needs to research thoroughly before investiture in new technology to make sure that it operates with their commitments to a cleaner, healthier environment. Opportunities To triumph newer technology and apply it in aspects of their business would be a big opportunity for Subway. Threats Some local markets may not be ready for new technologies and dont have a full understanding of how they work, therefore consumers not rely or believing in the new technologies. Natural Environment Strengths An organization cannot support without the support of itsenvironment. Subway takes in resources such as labor, money, and raw materials from outside its boundaries in the natural environment. Weaknesses Subway cannot control the humour or the weather in the areas that have stores operating in. Opportunities There are opportunities that cabbage depending on the weather. In the hotter season Subway can promote their salads more for a meal that is more refreshing in the heat. In the cooler seasons they should promote there subs toasted for something to warm the belly.Threats Depending on locations some areas may experience unpredictable natural events like cyclones or tornados. These can cause a dramatic threat to Subway stores in areas where events like this occur as there can be trauma to roads and buildings, no electricity and no stock or fresh produce from suppliers. Emerging Trends Strengths Subway franchises are mired with the communities surrounding them so they are always aware of the current and emerging trends hazard in their locations. Weaknesses Subway cannot follow all emerging trends as there are too many and it would be too costly for them to do so.Opportunities To expand their online rescript (catering for meetings/offices) to be made available for individuals to order and then pick it up, or start a delivery service. Threats Often trends dont last for long periods of time, making it costly for Subway. Conclusion As you can see from the above analysis, there are many different factors, both internal and external, that effect the organisation, Subway. There are many internal and external forces that Subway needs to consider and stay on top of so they do not fail. ReferencesMindTools. com, (2013). SWOT Analysis. Retrieved on 11 p hratry 2013 from http//www. mindtools. com/pages/ denomination/newTMC_05. htmsthash. 86tx07Tn. dpuf SUBWAY (2013). Corporate Opportunities. Retrieved on 13 September 2013 from http//www. subway. com. au/info/franchise_information/corporate_opportunities/ alien Publisher, (2012). Evaluating the External Environment. Retrieved on 13 September 2013 from http//2012books. lardbucket. org/books/strategic-management-evaluation-and-execution/s07-evaluating-the-external-enviro. html