I have chosen SUBWAY® as an Multi-National Company for my assignment. Subway was opened by Fred DeLuca at the age of seventeen in 1965 with the help of a friend, Dr.Peter Buck, who invested $1000 in his first sandwich shop which was named Pete’s Super Submarine which was located in Bridgeport, Connecticut which was meant to fund his dreams of becoming a doctor. He set a goal of having 32 stores in 10 years but by 1964, they had only 16 stores. They realized that they would not be able to reach their goal in time therefore they started franchising their sandwich shop as SUBWAY®. SUBWAY® today is the largest sandwich shop in the world consisting of over 34,000 stores in 97 countries whose aim is to provide their consumers with fast and nutritious meals that are indented for all ages. The company has since grown into a multi-billion dollar business offering over 2 million different sandwich combinations which are served at 2,800 per minute which is equivalent to wrapping around the planet 6 times in a year. ( http://www.subway.com.sg)
The four major environment factors that affect this Business are Global Consumer’s Preferences, Competitors, Management across Culture and Demographics. Global consumer’s preference refers to the taste and preferences of the consumers, the choices consumers make based on their own beliefs and culture. SUBWAY® being in the food and beverage industry aims to serve fresh and healthy food to its consumers. As the global consumer’s preference is shifting to healthy food instead to fast food due to the increase awareness of health issues around the world, SUBWAY® has the competitive advantage in this field. The success of SUBWAY® is based on the fact that they are known for delivering healthy food which at the same time tastes delicious and with this consistency, it has built itself a reputation. Secondly, there are Competitors like McDonald's, Burger King, KFC, Delifrance and O'Brien's, as well as local fast food options in Singapore. Competition can spur a company to lower prices to get or keep business especially in Singapore where the consumers are always looking for the best buy. As competitors lower their prices, it causes their competitors to always lower their prices to have a competitive advantage. Although a competitor has its disadvantages, it also has its advantages. Because of high competition in Singapore, SUBWAY® has invested in R&D, research and development, to create new products to attract its consumers. Thirdly is Management across cultures. Singapore is a multi-racial country and therefore in consists of many cultures with different beliefs. This affects every business in Singapore especially those in the Food and Beverage Industries as it has to follow the law given by individual Cultures. For example, Muslims in Singapore will only consume food which is classified as HALAL by the government. Having said that, up till now, SUBWAY® has not been labeled as HALAL thus it’s losing almost one third of the population of the countries which are Muslims. On the positive side, foreigners who migrate to Singapore, preferably Caucasian are the top consumers of SUBWAY® all over the world thus it gains a number of consumers as well. The last is the changing of demographics. Singapore has a population of 5,183.7 (2011) with 21.7% being over 65 years old. People over 65 years old tend not to patronize SUBWAY® as much as the 78.3% who are below 65 due to the large portion of the meals and the their own taste preference. This is a disadvantage to Subway because it has already lost 21.7% of its consumers before even starting. Besides that, the Old-support Ratio, which determines the ratio of working-age residents to elderly residents has dropped. Indicating that there are more elderly which are not working, resulting in elderly reducing their spending power.[http://www.singstat.gov.sg/pubn/popn/population2011.pdf]
The 2 major factors that affect the company is General...
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