Hospitality Business Strategy

Hospitality Business
Strategy

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
PART A...........................................................................................................................................3
PESTLE Analysis........................................................................................................................3
SWOT Analysis...........................................................................................................................5
Porter’s Five Forces.....................................................................................................................7
PART B...........................................................................................................................................8
Strategic Directions Available to Subway...................................................................................8
Most Appropriate Strategy for Subway.....................................................................................10
Strategic Management Plan.......................................................................................................10
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
There exist numerous forces and factors present within the micro and macro environment
of a business organisation that can come to significantly influence and impact the operational
performance and profits generated by a business organisation within operational industries
(Čepel and et.al., 2018). This report assesses the business environment of Subway, which is a
chain of fast food restaurants that operates within the hospitality industry of UK. Subway was
founded in 1965 and currently operates from its operational headquarters in Connecticut, USA.
Subway operates more than 41,600 distinct fast food establishments across more than 100
different countries around the world. Subway specialises in selling various assortments of
sandwiches, salads, pizzas and other fast food snacks to the customers within hospitality industry
of UK. On account of its sustained successful operations within the global hospitality industry
for such a prolonged period of time, Subway has become the single largest brand restaurant chain
in the entire world.
MAIN BODY
PART A
PESTLE Analysis
Using the Pestle analysis allows for us to effectively analyse and evaluate the forces
present within the macro environment of Subway, that can have an impact and influence the
operations and functions of the business organisation within hospitality industry of UK. The
Pestle analysis for the Subway within hospitality industry of UK is as follows:
Political Factors: The current political instability within UK, on account of the phenomena
known as Brexit can significantly impact and influence the operations of Subway within the
hospitality industry of UK. Brexit will involve the scrapping of currently complex, convoluted
and opaque international trading laws with simpler and more transparent trading laws, which will
inevitably enhance the international trading operations of Subway, which can have a positive

impact on the overall operations and functions of the business organisation within hospitality
industry of UK.
Economic Factors: There are also present numerous economic factors that have a significant
impact and influence on the operational and financial performance of Subway within the UK’s
hospitality sector. The most important of such economic factors relates to inflation within the
UK’s economy, which will result in a decrease in the purchasing power of the average UK
customer (Gaganis, Pasiouras and Voulgari, 2019). This can have a significantly negative impact
on both the operational performance and productivity of Subway and its financial profitability
within UK’s hospitality industry because should the purchasing power of UK citizens decrease,
Subway would find it increasingly hard to maintain its current customer base and profitability
metrics.
Social Factors: Social trends such as increasing preference of the hospitality customers of UK to
switch from a fast food diet to healthier alternatives can also have a severely negative impact on
the operations and profitability of Subway within the hospitality markets of UK. As this social
trend is on the up rise in the last few years, should a major portion of the UK population modify
their customer behaviour based on this trend and choose to opt for a more healthier lifestyle, then
this social trend can also have a significantly negative impact on the fast food restaurant that is
Subway within the hospitality sector of UK.
Technological Factors: Advancements and upgrades to the technological solutions present in
the external environments can have a significantly positive impact on the overall operational
performance, efficiency and financial profitability of Subway within the hospitality industry of
UK in a significant manner (Ključnikov and et.al., 2016). Should the leadership of Subway
choose to invest in such advanced and upgraded technological solutions present in the external
markets, then the business organisation would be able to conduct its daily operations at increased
performance and efficiency while consuming considerably less energy resources, enhancing the
overall productivity and profitability of Subway in a significant manner within the hospitality
industry of UK.
Legal Factors: Revisions and edits to the legally mandated regulations and legislations, enforced
by the governing authorities of UK, which Subway is mandated to adhere to such as the