Analysis of Subways internal and external environments Essay

This essay will analyse the conduce awayup undergrounds internal and external environments and their impacts on this organisation. This will acknowledge a swot analysis on resources and capabilities which ar a occasion of the internal environment and on nodes, resultrs, competitors, pressure groups, economic, political, technological, natural environment and emerge trends in the external environment. A SWOT Analysis is a effectual 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 system restaurants lock away out of over 36,000 locations in 99 different countries. subway system is an equal chance employer, where any employee backside be assured that they will be treated with respect and non be discriminated or harassed for any reason. They continuously provide employees with see to iti ng and boost through team arrive at, against sh bed goals and benchmarks and to be accountable for their actions. Weaknesses Many subway employees are younger generations and are particularly inexperienced in the workplace.This john be a weakness for subway as this younger group of employees retain other priorities such as school/university which whoremonger set about it catchy when creating the roster for shifts and being unskilled prat cause delays in serve well and non properly organised repasts going to the customers. Opportunities tube-shaped structure has the opportunity to train their unskilled employees in a way that suits them and is in line with the organisations goals. Threats subways direct competition propose comparable workplace conditions and environments which patronage be a threat to pipe by these companies attracting higher skilled workers in the industry away from Subway.2. Capital availability Strengths As Subway is operated as franchises, the overall company has a crowing amount of capital coming in from the franchises. Subway (2013) states The SUBWAY kitchen ranges start up costs are exceptionally abject for a franchise of its size and stature. Total investment will expect on some factors, including location, rent, outlet size and equipment. Weaknesses There are many economic conditions, such as unemployment that contribute to weaknesses concerning Subways capital. confidence these economic issues with poor marketing strategies and it can affect the capital melodramatically. For role model the new $5 Combo Deal that they are straining, has resulted in a decrease in sales agreements, as the average customer is now outgo less money per grease ones palms. Opportunities Start-up costs of the franchises is low compared to similar organisations, it makes Subway more than attracting to potential owners, in that respect for encouraging more people to buy a Subway franchise which will increase the capital of t he overall company.Threats Economic issues such as the Global financial Crisis, unemployment and inflation can cause a threat to subway from opening more ancestrys, which in turn affects their ready(prenominal) capital. Capabilities 1. Marketing Strengths Eat Fresh, Live Green is Subways commitment to making a positive impact in all that they do. This is very appealing to consumers, as Subways beliefs and value are in line with theirs. Subway restaurants are also navigating the serveman 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 obtain everyone to repose 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. Thr eats Subway runs the risk of decreasing their client base if they lead 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 get the fare ready to be served so quickly forwards, 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 best and staff not being available to work can be weaknesses in the production process.Opportunities Focusing their sustainability initiatives on energy efficiency, body of water & resource conservation, waste reduction, sustainable sourcing and supply chain management. Threats Equipment failure and power outages are a capacious threat to Subway concerning production. If any of these oc cur the Subway store would not be able to operate or break any products. 3. Research and Development Strengths Develops and test markets the viands that they serve, making sure it is of high standards and quality. Weaknesses The markets are constantly changing and they cannot continuously source gravel from the same suppliers.Research needs to be through with(p) constantly and they do not always suck the resources to do so, Opportunities Do customer surveys in different demographic areas to provide what those areas are in demand for. Threats Data recorded may be incorrect depending on what type of information they require and can come from unreliable sources. 4. Financial Management Strengths Subways finance team is responsible for tracking, organizing and account on all financial activities and storing this entropy for future reference. This data can help 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 labour as employees come and go, more staff required for officious 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 withal further. Threats Price fluctuations, for example oil, can dramatically threaten Subways financials as consumers will have lower disposable incomes which will dismiss them from freely spending their money.5. Information Systems Strengths Subway has a loyalty notification system which they use to gather information on their customers. severally bankers bill has a unique 16-digit identification number. The card enables Subway to collect 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 introduce this card throughout all Subway stores so they can collect a larger amount of data for their information system.Threats Without certificate measures in place with their loyalty cards people could produce duplicitous cards to receive rewards from the company. External Environment Customers Strengths Subway already has a strong client base because of their fresh and more nutritious products. These factors appeal to the customers. Weaknesses Customers do not always feel like healthy options and on occasions 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 influence Subways decisions with how to do things better and to discover what products shift 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 ope rate. Another threat is if negative feedback from customers is spread around consequently this could potentially stop customers from returning Suppliers Strengths Subway sources as a lot 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 righteousness and sustainability. Weaknesses Some suppliers can be unreliable and not provide cable when ordered. Opportunities There are more opportunities to source more locally braggy 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 rallythat the price they are receiving for their products is to a fault low, causing them to refuse supply. Competitors Strengths Largest fast food restaurant chain in the world by the number of outlets. presently the Subway operates over 38,181 restaura nts in 99 countries, more than McDonalds 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 competitors, so they need to stay innovative and come up 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, Hungry Jacks and KFC are some of subways main competitors. These competitors all offer family meal deals and cheap insect bite sizes on their menus which makes them more appealing to consumers. Pressure Groups Strengths Subway topics 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 represent the m ajority.Opportunities 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 whole community when the push 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 deliverance 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 reduce in the amounts of sale because they cannot control consumers disposable incomes. Opportunities When the economy is strong, consumers 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 government 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 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 pro mote their products they can be fined hefty amounts of money or level off closed down. Technological Strengths As a global 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 engineering is good just because it is new.Subway needs to research thoroughly before investing in new technology to make sure that it operates with their commitments to a cleaner, healthier 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 accept 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 outsid e its boundaries in the natural 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 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 episodic 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 involved with the communities surrounding them so they are always aware of the on-line(prenominal) and emergent trends happening in their locations. Weaknesses Subway cannot follow all emerging trends as there are too many and it would be too dear(p) 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 speech 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 September 2013 from http//www. mindtools. com/pages/article/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/ Unknown Publisher, (2012). Evaluating the External Environment. Retrieved on 13 September 2013 fro m http//2012books. lardbucket. org/books/strategic-management-evaluation-and-execution/s07-evaluating-the-external-enviro. html