ASSIGNMENT ON SUBWAY

PRESENTED BY: Lakhpreet Singh

MBA-1st

16421225

INTRODUCTION

• Subway  is an American fast food restaurant franchise that primarily sells submarine sandwiches (subs) and salads. 

• It is owned and operated by Doctor's Associates, Inc. Subway is one of the fastest growing franchises in the world, with 42,673 restaurants in 108 countries and territories as of September 13, 2014.

COMPANY PROFILECRITERIA DETAILS

TYPE Privately Held Company

INDUSTRY Restaurants

GENERE Fast Foods

FOUNDED Bridgeport, Connecticut, U.S

FOUNDERS Fred DeLuca and Peter Buck

HEADQUARTERS Milford, Connecticut, U.S

NO. OF BRANCHES 42,938 Restaurants in 107  Countries

PRODUCTS Submarine Sandwiches; Salads, Pizzas (some Locations).

WEBSITE www.subway.com 

products• Subway's core product is the submarine

sandwich. In addition to these, the chain also sells wraps, salad, and baked goods.

• Subway's best-selling sandwich, ontains pepperoni, salami and ham.

Mission of Subway“To provide the tools and knowledge to allow entrepreneurs to successfully complete in the QSR industry worldwide by consistently offering value to consumers through providing great fasting food that is good for them and made the way they like it”

Marketing Strategy•  Subway's marketing program addresses health,

fresh, custom-made sandwiches expectations of consumers through a number of approaches.

• Success factors for fast food franchisees will include products and marketing targeted to healthier menu selections, brand consistency, low start-up costs, franchisee support, and consumer convenience. Subway represents a running example of a fast food franchisee ready for success in the future fast food market.

• Branded fast food continuing to move into other nontraditional venues such as colleges, airports, military bases, hospitals, and amusement centers. Part of their marketing strategy, Subway includes identifying which venues and retail chains would be most amenable to quick-service brands.

Other strategies1) Market Penetration2) Market Development3) Diversification4) Product Development

Market Penetration• Market penetration is a firm increases its share of

a market in which it already operates.• SUBWAY always focuses their marketing

strategies to penetrate the markets which they are already operating. They have one operating department, it is Franchise sales, this group is dedicated to finding those individuals who has quality of the entrepreneurial spirit required to open a SUBWAY franchise of their own. They find new franchisees to penetrate the market.

Market Development• This strategy involves finding new markets for the

products a firm already makes.• SUBWAY has developed a team specifying for

market development. New Business Development. This team works closely with potential franchisees who wish to open a SUBWAY restaurant in non-traditional locations such as in a supermarket, movie theater or gas station.

• Subway restaurant sites are adaptable to any type of location.

Diversification• Diversification involves the firm going into new

markets which are totally different from those targeted by the existing activities of the firm. SUBWAY is going for real estate markets, mobile phone markets and some financial markets to reduce their business risk through diversification.

Product Development• Improvement of products over time to maintain

their competitive position. Product development is one of the main marketing strategies of SUBWAY, specially introducing improved healthier menus.

• SUBWAY has a Research & Development team this department is responsible for developing and test marketing the food that we serve and the equipment that is used.

5 Functions of Management

– Planning– Organizing– Staffing– Directing– Controlling

PLANNING• Planning is the process used by managers to identify and select appropriate goals and courses of action for an organization.

• The planning function determines how effective and efficient the organization is and determines the strategy of the organization.

• In Subway, objectives are set, launch of new products, introduction of new schemes, market survey etc. is done.

• For e.g.:- Subway recently introduced an Italian at a cost of Rs125/- , to increase its customer base.

• Market survey is done in order to know what is more in demand. For example, surveys are done regarding to the demand in the market. 

ORGANIZING• In organizing managers create the structure of working relationships between organizational members that best allows them to work together and achieve goals.

• An organizational structure is the outcome of organizing. This structure coordinates and motivates employees so that they work together to achieve goals.

• In Subway, the whole activity is divided into task groups each dealing with a specific area like food committee, decoration committee, packaging committee etc. In every outlet these are under the overall supervision of the official in charge.

STAFFING

• BETTER STAFFING LEADS TO HAPPIER PEOPLE.• Staffing is the managerial function of filling and keeping filled position in the organization structure. This is achieved by, first, requirement of workforce, followed by recruitment, selection, placement, promotion, appraisal and development of personnel to fill the roles designed into the organization. 

DIRECTING• In directing, managers determine direction; state a clear vision for employees to follow and help employees understand the role they play in attaining goals.

• The outcome of directing function is a high level of motivation and commitment from employees to the organization.

• In Subway, one of the reasons of success is because of healthy supervisor-worker relationships. Mc Donald’s and KFC in comparison has a very low turnover ratio implying that the workers are provided with healthy working conditions, incentives, motivation and efficient communication.

CONTROLLING

• In controlling, the manager evaluates how well the organization is achieving its goals and takes corrective action to improve performance. 

• The outcome of controlling function is the accurate measurement of performance and regulation of efficiency and effectiveness.

• In Subway, the increasing sales and consistent demand shows that in the organization activities are performed as per the plans, also the organizations resources are being used effectively and efficiently. 

• The SUBWAY system is committed to providing a wide range of great tasting, healthier food choices while reducing our environmental footprint and creating a positive influence in the communities we serve around the world.