Analysis of Subways internal and external environments Essay

This essay will analyse the composition metros internal and external milieus and their impacts on this geological formation. This will imply a swot analysis on re characters and capabilities which be a go against of the internal environment and on customers, suppliers, competitors, pressure groups, economic, political, technological, rude(a) environment and rising trends in the external environment. A SWOT Analysis is a encourageful technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities open to you and the Threats you face MindTools. com (2013).Internal environment Resources 1. The Workforce Strengths subway eaterys operate out of over 36,000 locations in 99 different countries. tubing is an equal fortune employer, where every employee jackpot be assured that they will be treated with respect and non be discriminated or harassed for every reason. They continuously provide employees with hang backing and hike through teamwork, against sh atomic number 18d goals and benchmarks and to be account commensurate for their actions. Weaknesses Many subway employees are younger generations and are particularly inexperienced in the workplace.This abide be a weakness for subway as this younger group of employees study another(prenominal) priorities such as school/university which mountain make it intemperate when creating the roster for shifts and being unskilled tin cause delays in do and not properly organised meals going to the customers. Opportunities metro has the opportunity to train their unskilled employees in a way that suits them and is in line with the organisations goals. Threats tubes direct competition stick out correspondent workplace conditions and environments which can be a threat to subway system by these companies attracting higher skilled workers in the industry away from subway.2. Capital handiness Strengths As tube-shaped structure is operated as franchises, the general company has a volumed amount of capital coming in from the franchises. Subway (2013) conveys The SUBWAY strands start up cost are exceptionally low-pitched for a franchise of its size and stature. Total investment will estimate on umpteen factors, including location, rent, outlet size and equipment. Weaknesses at that place are numerous economic conditions, such as unemployment that contribute to weaknesses concerning Subways capital. immix these economic issues with poor marketing strategies and it can affect the capital dramatically. For lawsuit the new $5 Combo Deal that they are offering, has resulted in a decrease in sales, as the average customer is now pass less money per buy. Opportunities Start-up costs of the franchises is low compared to similar organisations, it makes Subway to a greater extent appealing to potential owners, there for encouraging more people to purchase a Subway franchise which will increase the capital of the overall company.Threa ts Economic issues such as the Global Financial Crisis, unemployment and inflation can cause a threat to subway from opening more neckcloths, which in turn affects their available capital. Capabilities 1. Marketing Strengths Eat Fresh, Live Green is Subways commitment to do a positive impact in all that they do. This is very appealing to consumers, as Subways beliefs and determine are in line with theirs. Subway restaurants are also navigating the solid ground of online social media to bring their message closer to consumers. Subway is experienced in international marketing.Weaknesses Subway restaurants lack the interior design and quality that would satisfying everyone to stay and feel more comfortable than in the competitors restaurants Opportunities Subway employs superior marketing techniques and promotional strategies to attract and grow their customer base. The most successful Subways promotional offer was to offer footlongs for only $5. Threats Subway runs the risk of decreasing their client base if they break away to meet consumers wants and needs if continuous innovation and new processes are not being developed and used.2. Production Strengths Restaurants are clean and maintained. Preparation goes into acquire the food ready to be served so quickly before, after and during store hours veggies need to be washed, diced, sliced and stored. All of this preparation contributes to the productivity of the store. Without these steps, the restaurant would not run efficiently. Weaknesses Old equipment that is no longer working at its stovepipe and staff not being available to work can be weaknesses in the production process.Opportunities Focusing their sustainability initiatives on energy efficiency, peeing & resource conservation, waste reduction, sustainable sourcing and supply chain management. Threats Equipment failure and world power outages are a huge threat to Subway concerning production. If either of these communicate the Subway s tore would not be able to operate or produce any products. 3. Research and Development Strengths Develops and test markets the food that they serve, making sure it is of high standards and quality. Weaknesses The markets are unendingly changing and they cannot endlessly source produce from the same suppliers.Research needs to be foundere constantly and they do not always run through the resources to do so, Opportunities Do customer surveys in different demographic field of honors to provide what those areas are in read for. Threats Data recorded may be incorrect depending on what font of information they require and can come from unreliable sources. 4. Financial focussing Strengths Subways finance team is responsible for tracking, organizing and reporting on all financial activities and storing this data for future reference. This data can succor them find better ways of financially running the organisation.Weaknesses Variables in costs for produce depending on time of year and certain promotions. Variables in advertize as employees come and go, more staff required for busy generation 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 even further. Threats hurt fluctuations, for example oil, can dramatically threaten Subways financials as consumers will energise set down disposable incomes which will stop them from freely spending their money.5. Information Systems Strengths Subway has a loyalty card administration which they use to gather information on their customers. Each card has a unique 16-digit identification number. The card enables Subway to sop up data on its customers from its point-of-sale (POS) terminals to its CRM applications. Weaknesses The first loyalty card they developed was easily copied. Opportunities To envelop this card throughout all Subway stores so they can collect a large r amount of data for their information system.Threats Without security measures in place with their loyalty tease people could produce fraudulent cards to receive rewards from the company. External Environment Customers Strengths Subway already has a fuddled client base because of their fresh and more nutritious products. These factors appeal to the customers. Weaknesses Customers do not always feel like intelligent options and on cause want a greasy alternative that Subway does not provide. Opportunities Subway provides customers with the opportunity to provide feedback on their products and service.By doing this the customers have the opportunity to bow Subways decisions with how to do things better and to discover what products sell the best and what the customers like about the service they receive. Threats Poor customer service is a major threat to any business that deals with customers. Subway, without its customers, would not be able to operate. Another threat is if negative feedback from customers is spread around then this could potentially stop customers from returning Suppliers Strengths Subway sources as much produce as possible locally.They try to support their locally communities as much as possible. They source this produce from suppliers that share their commitment to social responsibility and sustainability. Weaknesses whatever suppliers can be unreliable and not provide persuade when enounceed. 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 enough produce/stock to provide Subway at certain times and the supplier may thinkthat the expense they are receiving for their products is too low, causing them to refuse supply. Competitors Strengths Largest fast food restaurant chain in the world by the number of outlets. Currently the Subway operates over 38,181 restaurants in 99 countries, more than McDo nalds or any other fast food chain operator. Weaknesses Majority of Subways competitors offer cheaper meals than what Subway can, based on the price they purchase their products at. Opportunities Subway has many another(prenominal) competitors, so they need to stay innovative and keep their products on top of the others that are available.They have the opportunity to erect their products as healthy options and deep-fryer free compared to their competitors to encourage more sales. Threats McDonalds, Hungry Jacks and KFC are slightly of subways main competitors. These competitors all offer family meal deals and cheap snack sizes on their menus which makes them more appealing to consumers. mash Groups Strengths Subway takes insert from pressure groups and community members so they can improve the operations, products and service. Weaknesses Subway cannot deposit on the information that pressure groups provide them with as it does not always represent the majority.Opportuniti es Pressure groups can be a huge opportunity for Subway to listen 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 dont always have the majorities input on these issues and are misrepresenting the undivided community when the push their ideas and beliefs on Subway which can make other customers stop returning to purchase entires from them. Economic Strengths Subway opens stores when the economy is doing well.By doing this they establish their presence in the demographic and build up a good amount of returning consumers. Weaknesses Subway needs to have a contingency plan in place for when the economy in their area decreases. If they do not, potentially they will center in the amounts of sale because they cannot curb consumers disposable incomes. Opportunities When the economy is strong, consumer s have higher disposable incomes. This give Subway the opportunity to slightly increase prices and promote their products more as consumers are more willing to spend money.Threats Not all geographic 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. Political Strengths Subway follows and adheres to organisation legislation including the Fair 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 abundanty 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 thei r products they can be fined hefty amounts of money or even closed(a) down. Technological Strengths As a global brand, Subway continues to make strides in sustainable packaging, and waste management as well as advert for more efficient equipment and operational practices Weaknesses Not all technology is good just because it is new.Subway needs to research thoroughly before place in new technology to make sure that it operates with their commitments to a cleaner, fitter environment. Opportunities To obtain 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 trusting or believing in the new technologies. Natural Environment Strengths An organization cannot survive without the support of itsenvironment. Subway takes in resources such as labor, money, and raw materials from outside its boundari es in the vivid environment. Weaknesses Subway cannot control the climate or the weather in the areas that have stores operating in. Opportunities There are opportunities that arise depending on the weather. In the hotter gruntle 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 heat 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 damage to roads and buildings, no electricity and no stock or fresh produce from suppliers. Emerging Trends Strengths Subway franchises are mingled with the communities surrounding them so they are always aware of the current and uphill trends happening in their locations. Weaknesses Subway cannot follow all emerging trends as there are too many and it would be t oo pricey for them to do so.Opportunities To expand their online ordering (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. finding 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 folk 2013 from http//www. mindtools. com/pages/article/newTMC_05. htmsthash. 86tx07Tn. dpuf SUBWAY (2013). Corporate Opportunities. Retrieved on 13 folk 2013 from http//www. subway. com. au/info/franchise_information/corporate_opportunities/ Unknown 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