Internal and External Analysis of Subway

Topics: Subway, Fast food, Submarine sandwich Pages: 8 (1584 words) Published: June 22, 2014


Internal and External Analysis of Subway
STR 581
Carlos Pineda
June 9, 2014

Internal and External Analysis of Subway
Subway’s mission is: “Delight every customer so they want to tell their friends – with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience.” Subway’s franchise vision is to be the number one Quick Service Restaurant (QSR) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience. Subway has three core values: family, teamwork, and opportunity. Subway is known for its fresh, customizable sub sandwiches. They also offer wraps, salads, and cookies. The five most popular Subway sandwiches are: Italian B.M.T., Tuna, Subway Club, Meatball Marinara, and the Chicken & Bacon Ranch. With so many options of breads, meats, cheeses, and veggies there are over two million sandwich varieties available. Subway conducted a study and found that almost 2,800 Subway sandwiches and salads are sold every minute. The target market for Subway is adults between the ages of 18 and 49 who are working and/or studying. They define this target market as, “Demanding Young People Who Know Their Own Minds.” Subway shop has simple organization structure with a total of eleven employees on average in most of the franchises. Their organizational structure is likely to change due to the fact that the owners plan to manage the store; however, as they grow and expand to other Subway stores, the management staff will have to be added. The Sandwich Artists that are on staff are paid a salary of minimum wage dollars per hour, and overtime is accrued after an employee has worked over forty hours in a week.

Internal environmental factor
Strengths:
Subway Restaurants is one of the leading submarine sandwich franchise based in the United States and having presence in more than ninety five countries having over 30,000 restaurants all over the world. The growth rate of the company has been increasing year after year. Subway has established itself in the fast food industry having brand recognition all over the world. Due to its great strategies the company has become the leading franchise in the United States in a very short period of time. In the United States alone there are over 23,000 subway restaurants. The company has even positioned itself in places like hospitals, churches, schools and popular retail stores. Subway is known to be companies that offer healthy subs sandwich that are preferred and much better as compared to food items offered by other fast-food chains. The company has partnered with the American Heart Association to add to its image further. The food menu of the Subway reflects the high demand of healthy and fresh food which is fast too. All material, vegetables, sauces, meat and cheese have to be sourced from the supplier certified by Subway. Franchises cannot procure from other non-certified suppliers. All material has to be stored at specified temperatures to ensure freshness. All franchises are required to abide by the Gold Certification standards of Subway. Weaknesses:

The decoration and look of the franchises is said to be old an outdated. Another problem with franchises is that the satisfaction level of the customers is not the same across franchises and also some franchises perform very poor. Service commitment is not consistent from store to store. This can be said to be related to staff as there is not much motivation and the turnover rate of the employees is very high. It gets very stressful preparing some ones food right in front of them; most managers have realized this is the reason for a high turnover. So Subway made some changes. Knowing that half of the turnover occurred in the first 30 days of employment, the managers first set out to keep new hires' stress levels down. To put new employees more at ease, the managers or designated trainers spend 20 hours with workers during their first two weeks on the job....

References: http://www.subway.com/subwayroot/development/FranchiseFAQs.aspx
Admin. (2011, July 22). Subway Restaurant Annual Report 2010: Sales, Revenue, Profits and new Products. Retrieved May 28, 2014, from http://www.financeninvestments.com/annual-report/subway-restaurant-annual-report.html
Kolb, E. (2011, March). Industry Standards Restaurants. [Electronic Version] Standard &
Poor’s, 1-42.
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