Analysis of Subway's External Environment and Business Challenges

This report provides an analysis of Subway's external environment and the business challenges it faces. It includes a critical analysis of competitors, target customer market, and influencing factors from the external environment. The report also identifies the top three issues that Subway is facing, including difficulty in understanding modern technology, cold freeze technology, and advanced preferences.

Research Report

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Clarify who your client is, and what is the problem they are facing.......................................1
2. Using research, break the problem down by critically analysing and presenting areas of
importance to the client such as, competitors, target customer market and influencing factors
from the external environment.....................................................................................................2
3. From your above analysis, what are the top three issues the client is facing?........................4
CONCLUSION................................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
There are different factors of business that will lead to have major impact on its practices
and performance. It is essential for organisation to analyse and evaluate different aspects in order
to take right decision for increase business practices. Business consultancy firm is significant for
analysing different issues and problems associated with the organisation in order to provide right
direction (Jacky and Sulaiman, 2022). This report is based on Subway organisation. This is an
American multinational fast food restaurant franchise which is providing different types of
products and services to customers. This company is dealing in fast food sector and it has been
developed in year 1965. This report includes information about the client along with the problem
faced by organisation. In these different factors from the external environment has been
determined in this report. Apart from these different issues that is faced by client has been
analysed in this report.
MAIN BODY
1. Clarify who your client is, and what is the problem they are facing.
Subway is a well known organisation that is providing high quality products and services in
order to meet different needs of customers. It is essential for this organisation to analyse and
evaluate different aspects of business external environment in order to take right decision for
business growth. Founder of this organisation is Fred DeLuca, Peter Buck and Camela DeLuca.
This company is providing its products and services in all over the world. The problem which is
faced by the client company that is Subway is that it is related to unique challenges which is
directly affecting its sales and performance of organisation (Klonowski, 2022). Respective
company is not able to develop products or services which is as per the trends along with the
requirements of customers. the major issues of this company is facing is related to the issues of
the bread that is used by company for making its different products.
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2. Using research, break the problem down by critically analysing and presenting areas of
importance to the client such as, competitors, target customer market and influencing
factors from the external environment
In this there are large numbers of elements or regions those prompt significant effect over
working of organisation and in this external and internal environment is examined with
inclination. In light of this external environment is examined with help of Pestle investigation
and watchman's five force that is as momentarily summed up beneath as:
PESTLE examination: It depends on full scale environment investigation with this distinctive
viewpoint that influences the working consequences has been won and it is as analysed and
mention below as:
 Political factor - The political stability of UK typically help the business to propel its
working and through which Subway company is in favor and ready to accomplish critical
development and advancement alongside this additionally guarantee to keep every one of
the separate guidelines and rule of government so that working capability has been
handled with mindfulness (Cueto and et.al., 2022).
 Economic factor - It is a perspective that is related with financing cost, expansion and
numerous others too and because of Covid 19 the working consequences of business has
been impacted on more extensive premise with this working of Subway company
likewise get impacted. However, according to as indicated by post pandemic Subway
company carries out different ideas to propel its working with assumption for deals
amplification.
 Social factor - The conduct and inclination of customers have been changes generally
and for this Subway company guarantee to utilize SWMAS with the goal that a created
approach is utilized in order to propel innovation and its individual system to go into new
commercial center.
 Technological factor - The innovation is continually being trying for business as it take
higher expense and augmented activities with this Subway company guarantee to carry
out something very similar with thought of leaned toward precautions.
 Legal factor - The legitimate edge depends on guideline and decides that is normalized
by government and under this Subway company generally guarantee to follow something
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similar with this they are responsible to direct business working easily (Lašáková,
Remišová and Bohinská, 2022).
 Environmental factor - It is considered as major and advance issue with this Subway
company guarantee to fill in according to thought of environmental premise and inside
this Subway company guarantee to decrease carbon footprint hence guarantee to limit
waste production and use paper packs rather than plastic one.
Porter’s five forces -
It is a strategic model that has been utilized to gauge the market seriousness and alongside this
additionally explains about the working consequences of cook through which conceivable
procedure and sufficient drives has been taken in favoured way.
 Bargaining Power of Suppliers - The Subway company is a developing bakery and
furthermore be a sole exchanging business that worked over to contend enormous divided
market. There are various of providers in market along these lines the bargain power is
less and bakery can buy the items according to possess accommodation.
 Bargaining Power of Customers - The customers never stick to single brand as with
regards to bakery items and for this Subway company guarantee to match the prerequisite
and request of customers as by offering them the most appropriate administrations
alongside this bargain power of customers are a lot of high as they have a capacity to
switch.
 Competition in the Industry – This company is dealing in highly competitive market area
which is affecting its business practices and performance (Lenning, Gremyr and Raharjo,
2022). Subsequently the component include higher power with this Subway company
generally guarantee to carry out favored changes with this they are possible ready to
propel their market presence easily and flawlessness.
 Threat of Substitution – This force of external environment is to endure that they should
have guarantee to execute the positive reaction in working through which important
changes are adjusted as far as equilibrium working environment.
 Threat of new entrant – Subway is a well established company that is providing high
quality products to customers. the new items continually having the option to snatch
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market fascination and in this Subway company required all of the time to work tirelessly
with this working validity and its mindfulness both get controlled with adequacy.
3. From your above analysis, what are the top three issues the client is facing?
There are different issues and problems that is faced in company which will lead to have
negative impact over organisation as well as affect its business practices. The three different
issues that client is facing is mention below -
 Difficulty in understanding modern technology – The bakery has been confronting an
ocean change inside scope of bakery items alongside confectionaries. The advanced types
of gear of hardware likewise being come about because of constant innovation and it
become progressive change inside industry. In this according to as indicated by
endurance in middle of merciless rivalry it is essential that bakery should have twist
themselves according to as per market patterns and in this execute change with deference
of winding blenders, planetary blenders, mixture sheeters, stoves alongside numerous
different strategies too.
 Cold freeze technology - It depends on frozen innovation that is gradually changes or
change into additive readiness of food and there is a more extensive accessibility of
advance information on customers in this manner they additionally select the thing
according to agreement to possess wellbeing (Rouault and Albertini, 2022). On the side
of this innovation Subway company can freeze the items and move them to numerous
areas with viability. Moreover, it is needed for bakery to safeguard the individual
administrations for longer time however alongside this stock administration additionally
assumes a significant part with this sufficient equilibrium is kept up with in the middle of
organic market.
 Advanced preferences – The interest of customers have been founded on their conduct
and inclinations and it additionally get impact according to as per taste and regularly
founded on friends or family accounts also. The most loved selection of customers is
essentially encircled all around ride, puffs, rolls and numerous others also. In this it is
needed to gauge and control the quality according to as indicated by amount that has been
utilized or waste. The contribution is straightforwardly founded on accommodation of
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customers with this incredible saving is modified and customer engagement likewise gets
progresses.
CONCLUSION
From the above report it has been concluded that business consultancy organisation has been
conducting its practices effectively in order to provide best solution to its clients. There are
different factors of business environment that will lead to affect organisation as well as influence
its performance. It is important for company to take business decision according to the impact of
external factors.
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REFERENCES
Books and Journals
Jacky, Y. and Sulaiman, N.A., 2022. The use of data analytics in external auditing: a content
analysis approach. Asian Review of Accounting.
Klonowski, D., 2022. Venture Capital Post COVID-Response: External Environmental Scanning
and Investment Opportunities. In Venture Capital Redefined (pp. 93-122). Palgrave Macmillan,
Cham.
Cueto, L.J. and et.al., 2022. Digital Innovations in MSMEs during Economic Disruptions:
Experiences and Challenges of Young Entrepreneurs. Administrative Sciences, 12(1), p.8.
Lašáková, A., Remišová, A. and Bohinská, A., 2022. Barriers to ethical business in Slovakia: an
exploratory study based on insights of top representatives of business and employer
organisations. European Journal of International Management, 17(1), pp.86-113.
Lenning, J., Gremyr, I. and Raharjo, H., 2022. What contributes to auditee satisfaction in
external ISO 9001 audits?. The TQM Journal.
Igwe, P.A., Rugara, D.G. and Rahman, M., 2022. A Triad of Uppsala Internationalization of
Emerging Markets Firms and Challenges: A Systematic Review. Administrative Sciences, 12(1),
p.3.
Rouault, J. and Albertini, E., 2022. Reconciling the social sector with external accountability
requirements: Lessons from stewardship theory. Journal of Business Research, 142, pp.485-498.
Rocha, C., Narcizo, C.F. and Gianotti, E., 2022. Internet of management artifacts: Internet of
Things architecture for business model renewal. In Emerging Issues And Trends In Innovation
And Technology Management (pp. 297-316).
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