Strategies and Analysis of Subway

This document provides an analysis of the strategies followed by Subway and highlights the major internal and external issues. It includes an environmental analysis using PESTLE and SWOT frameworks. The document also discusses the company's mission, vision, and values, as well as its goals and objectives. The implementation and monitoring plans are also outlined.

RUNNING HEAD: SUBWAY 1
Subway
Name
University

RUNNING HEAD: SUBWAY 2
Executive Summary
The project identifies the strategies followed by subway and how the company chooses to
implement them. Environmental analysis including PESTLE and SWOT, highlight major
internal and external issues. Subway began operating in 1965. The headquarters of the company
is located in Milford. The company specializes in submarine sandwiches.

RUNNING HEAD: SUBWAY 3
Subway
Introduction:
Fred and Peter opened the company, namely subway in the year of 1965. It was known as the
peter submarine sandwiches in those times. Submarine sandwiches were the specialty food that
the company served in those days. The company since then has grown to a mighty structure. The
name of the company was changed to the subway in 1966. The company now has its restaurants
in more than hundred countries. Main food item served by the company include sandwiches
along with salads and baked items (Lewis, 2019).
The main purpose served by the company is to deliver fresh food to its customers. Stakeholders
of the company, including directors, managers, franchise owners and staff members make sure
that they stick to the core mission of the company. The company has a very simple supply chain
structure to manage its process. The independently owned supply chain, allows the company to
ensure streamline operations and to hold people at each process accountable for their work.
Mission Statement
The mission statement of the subway is quite different from its competitors. The mission
statement is focused on freshness, customer experiences and positive word of mouth. The
mission of the company is to serve fresh and delicious sandwiches to its customers. The
delightful experience will consequently be shared among other friends by the customers who eat
fresh food at subway. The company strives to create an exceptional eating experience for its
customers. The company has differentiated itself from its other competitors by focusing on fresh
food items and creating a valuable experience for its customers.

RUNNING HEAD: SUBWAY 4
Value Statement
Values of the company revolve around three basic principles. These principles include family,
teamwork, and opportunity. Subway believes in serving its customers and the society in the same
way as we do in our families. The company believes that community and customers make up a
single family. Subway takes care of the community members as if they head their own family.
The company believes in care, empathy, and support. The employees and other staff members of
the company get their work done through teamwork. Collaboration and cooperation are among
the most valued values of the company. The members of the company share goals, rewards, and
responsibilities. They are collectively accountable for the shared goals they have to accomplish
(Jurevicius, 2013).
Vision Statement
The vision statement of the subway is somehow similar to its mission statement. The vision
statement states that the company envisions to be among the top-ranked quick service restaurants
around the globe by delivering an amazing and valuable experience and serving the fresh
sandwiches. The company aims to be among the top-ranked fastest servicing restaurant in the
future. The aim is clearly highlighted in the vision statement of the company (Farhan, 2019).
Mandate
The organization fulfils its mandate of excellent services and fresh food through it dedicated
team and committed franchise owners.

RUNNING HEAD: SUBWAY 5
Environmental Analysis
PESTLE analysis
Subway is likely to be affected by the political scenario. Changes in food policies and regulation
will impact the policies of the company. Economic factors such as disposable income, inflation
are likely to affect the purchasing power of customers. More income and reduced prices will
enable subway to attract a large pool of customers. Social factors, such as a change in the
lifestyle of the people to consume fresh and healthy food, will enable subway to earn huge
profits. The company already focuses on fresh and healthy food. Change in technology will
impact the subway. Few competitors in the fast food industry have improved their technology to
introduce ease for customers. Point of sale system, online systems for complaint handling will
improve the experience of customers in the subway. Subway is still lagging behind in terms of
use of technology by customers. Subway must comply with all regulatory procedures regarding
food preparation and keeping it safe and healthy for customers. Subway takes care of the
environment. The company does not use antibiotics in its meat. However, it has been seen that
subway uses additives in its food (Frue, 2018).
SWOT analysis:
The strength of the company lies in its recognition and strong brand name. The fresh food and
exceptional experiences in economical prices are among the strengths of the company. However,
the weaknesses of the company include the use of limited technology in restaurants and a few
menu items being served. The opportunity for the company lies in the provision of free delivery
services and drive-through services. The major threat that subway faces are the saturation of the
market due to ease of entry in the industry (Jurevicius, 2013).

RUNNING HEAD: SUBWAY 6
Strategic Issues:
In the year 2017, the sales of the restaurant declined. The number of stores declined to about one
third. The main strategic issues that the company has to face is its inability to innovate and keep
up with the latest trends. Subway is lagging far behind than its competitors. The company has
still not offered any drive-through service (Taylor, 2018).
Goals, Objectives, Performance Indicators, Outcomes:
The major goal of the company as mentioned in the vision statement is to be among the top-
ranked quick servicing restaurant franchises around the work. The objectives of the company
include the following
 Creating a delightful experience for customers
 Service fresh and healthy food
The main performance indicators used by the company are its sales and profit. Both the figures
declined in the year 2017 as compared to previous years, thus, resulting in the closure of stores.
Grant Strategy Statement:
Subway’ marketing strategy is based on creating long-lasting positioning or impression in the
minds of the customers. Products are competitively priced however, additional charges are
collected for additional services. Stores of the restaurant are strategically located on runways.
The company effectively utilizes its strategies to its outcomes of creating a valuable experience
and serving the fresh food. Product strategy relates to serving limited menu items (Bhasin, 2018).

RUNNING HEAD: SUBWAY 7
Issues Specific Strategies:
Product strategy followed by the company is alienating customers. The company is not coming
up with new menu items that may delight customers. Placement strategies are not properly
determined. Stores are located on runways but without a drive-through.
Subunit Strategy Statement:
Strategy statement of each unit and department coincides with the main strategies and the vision
and mission of the company. Main strategies are determined by the headquarters which are later
passed onto different regional heads.
Implementation and Action Plans:
Various strategies of the company are implemented by the regional heads. They are responsible
for implementing those strategies in their specific regions. The chief executives determine the
main action plans. They are then passed on to functional and then project managers, who are
ultimately responsible for implement those strategies. Various departments may collaborate
before a strategy is to be implemented.
Other Plans:
The finance managers determine the budget required for the implementation of the plan. Project
managers work with the human resource to progress on the given strategies and plans. The
marketing department is involved when a new product or service is to be launched. They design
promotional and advertising companies. IT department makes a decision regarding the
introduction of new technology or managing the existing ones (Hierarchy Structure, 2018).

RUNNING HEAD: SUBWAY 8
Monitoring and Evaluation Plans:
Strategies are broken down into the team and departmental goals. The progress of each goal is
tracked against key performance indicators. These KPI’s include deadlines, allocated budget,
number of errors and completion rates. Work in progress in monitored by team leaders or project
manager, who report to managers of project manager. The manager of the project manager report
to the functional manager who ultimately reports to the CEO.
Plans for Updating:
Plans are updated by the research and development department if they see a change in trend.
Plans are updated if existing strategies do not work. The CEO gives the final approval.
References
Bhasin, H. (2018, March 6). Marketing Strategy of Subway – Subway Marketing Strategy.
Retrieved from https://www.marketing91.com/marketing-strategy-subway/
Farhan, B. (2019, January 23). Food and Beverage Mission Statements. Retrieved from
https://www.thebalancesmb.com/food-beverage-mission-statements-4068551
Frue, K. (2018, October 29). PESTLE/PESTEL Analysis of Subway Restaurants. Retrieved from
https://pestleanalysis.com/pestle-analysis-of-subway-restaurants/
Hierarchy Structure. (2018). Subway Management Hierarchy. Retrieved from
https://www.hierarchystructure.com/subway-management-hierarchy/
Jurevicius, O. (2013, September 14). The mission statement of the Subway. Retrieved from
https://www.strategicmanagementinsight.com/mission-statements/subway-mission-
statement.html

RUNNING HEAD: SUBWAY 9
Jurevicius, O. (2013, February 16). SWOT analysis of Subway. Retrieved from
https://www.strategicmanagementinsight.com/swot-analyses/subway-swot-analysis.html
Lewis, R. (2019). Subway. Retrieved from Britannica:
https://www.britannica.com/topic/Subway-restaurant-chain
Taylor, K. (2018, January 19). 'Subway is dying': Battles at HQ are killing the world's largest
fast-food chain — and many franchisees are turning against the CEO. Retrieved from
https://www.businessinsider.com/subway-franchise-owners-say-leadership-threatens-
surival-2018-1

RUNNING HEAD: SUBWAY 10