Managing Innovation in Business: Subway's Strategies and the Future

This report analyzes Subway's innovation management strategies in the context of the evolving food industry, focusing on trends post-2022. It examines the organization's innovation requirements, including adapting to consumer preferences for fresh, hygienic food and leveraging digital technologies. The report highlights key trends such as Generation X consumers, digital utilization, convenience scale-up, circularity, and meaningful collaborations. It discusses the importance of technological factors and the impact of the global pandemic on Subway's business practices. The report further explores how Subway can build future innovation capabilities through strategic alliances, shareholder engagement, and transformation practices, emphasizing the need for continuous adaptation and innovation to maintain a competitive edge. Desklib provides this and many other solved assignments for students.

Managing Innovation
in Business

Table of Contents
INTRODUCTION...........................................................................................................................1
The future of the industry 2022 and beyond..........................................................................1
Organisations innovation requirement 2020 and beyond ......................................................4
Building of future Innovation capabilities..............................................................................5
CONCLUSION................................................................................................................................7
References:.......................................................................................................................................9

INTRODUCTION
It is a essential for every organization to focus on their innovative strategies so that they
will gain competitive advantage within the market. Innovation is not all about thinking
something new or introducing a new product or process but it also consists of producing those
products and services which will mitigate the problems of society and help them to satisfy at
their maximum level. The food industry in UK is one of the fastest growing industry which
continuously contribute in innovations. This is the industry which must require to innovate
because as time passes the customers’ needs and wants limited to their foods and beverages are
becoming developed and high demanding (Ali, and et.al., 2021) The main purpose of this report
is to identify the future innovative strategies for the business and what all changes a business can
suffer After 2022. the first coverings of this Report are the future of the food industry in 2022
and beyond, the innovations required by the organization for their upcoming time and the
building of future innovation capabilities by the organization. Subway is chosen organisation for
this report which is American multi-national fast food restaurant franchise which primarily sells
submarine sandwiches, wraps, salads and beverages. It was founded in 1965 by Fred De Luca
and Peter Buck. It is one of the most popular fast-food chains in the industry. It is well known for
their high-quality sandwiches and their soft drinks. It has 37,540 locations in more than 100
countries and territories with 410,000 number of employees involving franchise.
The future of the industry 2022 and beyond
In context of food industry, the customers are having high demand for quality and fresh
food products to consume. Today, most of the customers want to reach those students which are
hygienic and offer them fresh food products. Customers are ready to sacrifice the price which
means they can’t even pay a little high price but their primary motive is to get tasty food which is
made with fresh ingredients. The food industry in UK is currently switching to sustainable
development which means they are innovative within their restaurants and within their menu.
The innovation is not only seen in the products but it also seen in the packaging systems where a
company have to use those packaging systems which are decomposable and the labelling should
be perfect (Arsawan, and et.al., 2020). Customers in this industry are becoming more health
conscious and hence, they are focusing on the labelling to analyse the expiry date, ingredients
used to prepare that food product, and many others. However, after the year 2020, food and
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beverages industry are ready to face the challenges related to the past year and develop various
tools and techniques which can enhance their business productivity and sales. After this
pandemic, the people across the globe have become more health conscious in order to eat foods
from market place. In context to Subway, the management of this company has to adopt various
health safety measures regarding the production of their foods items which can help them to
maintain their brand image and reputation in the mind of their potential or new customer's. Due
to global pandemic and strict protocols creates by the government have made people all around
the globe to remain in their houses. This has made much more fundamental interaction of
citizens with technology which majorly includes online channels such as food panda and many
more online food provider application (Coelho, and et.al., 2019). People become more digital
savvy and start to transact their food order through online channels which has also become a
trend for future. It has been examine that the organisation of food and beverages sector
implement this online techniques for conduct their business operations which can help them to
make effective communication with their customers. The change in the preference and demand
of the consumer demand has made the food companies to develop various new techniques of
production and business model which can create more core value for their customers. However,
2022 will not be good year of sales of various food and beverages organisation.. Covid-19
remains as a topic of concern as long as its new variants are been come out in various parts of
world. There are major trends in relevance with food and beverages industry regarding Subway
are mentioned below:-
Generation X as consumers- The food and beverages companies can focus on satisfying
the necessities of their consumers in relation to Generation X. In this generation both employees
and customers who are related with the company are concerned. They have jobs and spending
power without their reliance on their parents. In context to Subway, they can offer the
appropriate and impressive product to their customers by creating and adding innovative food
products in their menu (Kelliher, Kearney, and Harrington, 2018).
Utilization of digital world-. In context to Subway, they have their online channels
through which they inform their customers regarding their new and upgraded products. In today's
world, online practices are no longer used for new start-ups or e-commerce business activity
various industries can adopt this process to do the sales of their product and services. Well-
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established food or beverage organisations are coming forward to embrace online channels for
making their reach to larger customers base present across the globe (Dodgson, and et.al., 2021) .
Convenience scale up- Due to fear of corona, people want contactless and frictionless
delivery of their shopping products regarding retail sector. In case of Subway, the higher
authorities of this company can bring innovative features in Subway Outlets. They are also
thinking to follow sustainable practices in their operations.
Circularity and traceability in demand- Consumer behaviour is changed due to
sustainability practices adopted by organisations as they prefer those establishment who are
sustainable in nature . In relation to Subway, managers can opt for bringing sustainable
innovations in their operations which helps them to gain more consumers (Helmy, and et.al.,
2020).
Collaborate with meaning- Food and beverages organisations are making collaborations
with other establishment in order to cover the losses they have emerged at the time of corona
pandemic .Progressive as well as distinctive collaborations of Foods and beverages industries
helps them to achieve more market share in their specific market industry.
There are some major priorities that needs to understood by organisations operate in Food
and beverages industry. In case of subway they should develop and implement new business
procedure of production which can help them to fulfill the needs and demand of their new or
potential customers.
Factors driving innovation practices
Technological factors- Emerging technology in relation to digitalisation practices retail
industry in making their reach to massive number of customers. Through this, people can
embrace technology-based shopping environment which led them to give a frictionless shopping
experience. The emergence of digital technology in the food and beverages industry will help
them to reach to large number of customer base. In case of subway, their customer can order
their food online from their official website and will get home delivery of that order (Katunina,
I.V., 2018).
Effect of global pandemic- Due to this crises, various changes in the preference of the
customers such as behaviour, perception, attitude and expenditure pattern arises which can effect
the ongoing business process. This pandemic has made people to stay in their houses and
restricts them to shop outside. After end of global pandemic, Subway needs to develop
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innovative business procedure or practices as these help them to attract existing customers with
variations in their product list.
Organisations innovation requirement 2020 and beyond
It is very important for an organisation to adopt various new tools and manufacturing
techniques in their business operation which can help them to differentiate their offer product
from other competitors present in their market industry. In case of Subway, the management of
the company should have complete knowledge of their customer by which they can make
appropriate changes in their organisation in order to produce high quality product and services, It
is very necessary for an organisation to make time to time changes in their business production.
Ideas- In context to Subway, the management of this company should develop innovative
ideas in their business production which will help them to satisfy the demands of their customer's
due to this they will not go to any other food company. They are trying to remove unhealthy raw
material in their products which can attract more customers towards their organisation to
consume their food and beverages product (Kelliher, and et.al., 2018).
Selection and Prioritization- In the framework of pentathlon it is considered as next
phase while selecting the desirable idea which is developed in previous stage. At the early-stage
idea is generated where priority is assessed for developing of products in innovative way. In
respect to Subway, managers are trying to transform their ideas to reduce the plastic use. The
company is planning to hire new employees so that idea can be achieved in effective way. The
company has believe in making team dedicated for driving disruptive innovation where new and
innovative practices are introduced for catering market segment needs. The manager of subway
is planning to create innovation hub in order to offer quality products of food and sustainable
practices regarding future can be address. In order to prevent any wrong step it is important to
prioritize varied ideas and activities which can take lot of time and make planning useless
(Mousavi, and et.al., 2018).
Implementation- In this stage the organisation start working on the selected idea. In
context to subway, after idea is created its priority is assessed and now in real world situation it
is implemented. In the food hub, the manager will opt to create an dedicated team for
implementing the innovative practices which comprises of innovative managers. The process of
recruiting is started by the manager of Subway in order to manage the innovative practices. It is
imperative for managers of Subway to measure their planning procedure earlier applying any
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chosen innovative practices in their operations. It is desirable for them to assess their methods
and products before applying any new thing in their operations which help them to save their
resources from wasting (Mention, Barlatier, and Josserand, 2019).
Building of future Innovation capabilities
The Subway managers are enough capable to build their future by adopting innovation
practices in effective manner. To make the innovation efficient it will enhance digital presence.
The manager of Subway will enter into partnership with the other firms for having growth and to
implement the innovation in successful way so that customer experience can be enhanced. The
strategic alliance was made by Subway for dealing with emerging technology, international
network and proprietary research (Mousavi, Bossink, and van Vliet, 2018). The other
organisation provides Subway an live network that enables them to oversee technology-based
consumer product. As Subway provide knowledge as well as exposure of their sector in
becoming a digital giant. Through this partnership, managers of Subway focus on delivering
commercial outcome as well as tangible return on investment to their partners. The operation of
Subway will enhance for creating strong position as per the changes in market conditions.
Engagement with shareholders
The company has ensured to keep its stakeholder satisfied with help of innovative
practices as they are capable in making engaged stakeholders with the operations of business in
most effective manner. The stakeholder of Subway comprises of their employees, customers,
suppliers and shareholders. The company introduces differential sustainability practice for
ensuring that stakeholders are satisfied. The adequate digital experience is provided to the
manager of subway which are committed to their varied stakeholders. In order to make digital
transformation effective subway is retaining commercially as well as technical team support
their technological-driven business in a rational manner.
Transformation practices adopted by Subway
In the innovative practices to become more capable. The subway managers are
announcing to have transformation in the business so that sales can be increase and more
customer can be attracted towards the brand. The transformation will help in enhancing the
customer experience as it will bring new innovative products in its varieties with new sauces,
ingredients that will improve the taste and customer will find the product in new variegation with
taste. The manager of Subway has adopted the operating model that helps in demonstrating the
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understanding in respect to adopting of agile methods of industry (Perrini, and Russo, 2019). The
transformation improves the customer engagement by using the digital technologies. The
Subway digital is transforming the experience of customer by reaching to customer where they
are and makes easy to locate restaurant, viewing of menu & nutritional options The Subway's
marketing program focuses on health, the freshness of their custom-made sandwiches, and their
consumers.
Organisation culture
It is defined as collection of values, perceptions and practices which make team informed
and directs regarding the goal attainment and objectives. The effective organisation culture helps
mangers in reducing the employee turnover rate and productivity of employees. This helps in
making the identity brand strong and viable. The team collaboration & cohesion is supported
which is considered as effective to bring innovative practices. In order to implement innovative
practices, it becomes important for the organisation manager to practice good culture of
organisation for having better understanding of organisation culture Handy's cultural dimension
is developed.
In order to develop the effective culture of business organisation, it has been found as necessary
for employees to work with coordination among all of them. The choice of adoption of principles
and values is in the hand of management of business organisation. Below mentioned are the
several dimensions of Handy's cultural model in the context of Subway:
Power Culture: It is defined as the culture under which the authority and decision making power
has been provided to the few number of persons working in the organisation. Such people are
consider as the most powerful in the firm because they have the authority of taking the decisions.
The employees working in such culture are neither liable to take any responsibility and authority
nor they are asked to present their views (Santoro, and et.al., 2020). The Subway company is not
adopting power culture in their organisation because they are providing right to take the
decisions to their employees. In order to bring any innovation in the organisation, the
management is require to give proper scope to their employees, so that they can actively
participate in the new innovative approach and work in an effective and efficient manner.
Task Culture: It is the culture under which the teams and groups of individuals have been
divided on the basis of their specialization and interest. The decisions in the organisations
following this culture has been taken as a whole. In order to attain the organisational goals and
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objectives, all the team members have to give equal contribution. At the work place of Subway,
several teams have been developed under which the person with same specialization and interest
are keep together. It is found as the best possible manner adopted by the management of Subway
for attaining the organisational goals and objectives in an effective and efficient manner.
Person Culture: It is found as the culture, under which the employees consider themselves as
more important than the organisation. The employees majorly focus on their personal interest
and they never attach with the organisation and work only for money. The managers of Subway
are working effectively in order to preventing such type of feeling in their employees as such
type of behaviour of employees are not acceptable at work place (Zach, Nicolau and Sharma,
2020). In order to prevent this feeling, several opportunities are being provided to the employees,
so that they can grow and develop. It has been found as necessary for the employees of Subway
to give the more priority and focus on the organisational goals and objectives rather than their
own interest. The activities related to this, help the management of Subway to bring innovation
in the organisation as the people will work with more efficiency and effectiveness.
Role Culture: It refers to the culture under which the the roles and responsibilities of employees
are being divided on the basis of their interest, expertise and educational qualification. It help the
employees in in becoming higher productive and innovative which has been found as essential to
attain the organisational goals and objectives (Oeij and et. al., 2019). It help the employees in
working effectively because they are well known about their roles and responsibilities and they
know the manner, in which they have to perform the operations. The management have
developed the accountability and responsibility in their working. The managers of Tesco has
divided the roles and responsibilities of their employees as per their specialization which is found
as essential to bring the innovation in the organisation.
Subway is adopting role culture under which the management is delegating the authorities and
responsibilities as per the expertise. And qualification of employees. It leads to the introduction
of innovation in the organisation (Petkova, 2018).
CONCLUSION
From the above report, it has been concluded that the innovation is the most important
approach in any organisation because it leads to the increase in profitability and productivity of
organisation. Pentathlon framework leads to managing the innovation in the organisation which
is being introduced because of introduction of new idea and thoughts of managers. The
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innovation in the food industry result in the attraction of higher number of people along with
gaining the competitive advantage as well. Several of practices of innovation, act as the proactive
approach of changing the process. In order to bring the innovation in the organisation, it is found
as essential to grow the culture of firm in such a manner, so that the employees can easily adopt
the changes and attain the organisational goals and objectives in an effective and efficient
manner. The Subway company is adopting role culture, which help the management in bringing
the effectiveness and efficiency in the organisation. The managers of organisation are required to
perform the innovative approaches constantly as it results in the growth and development of
overall organisation. The customers in this industry are searching for the quality, freshness and
low price of food products. The subway is operating in fast food industry which requires to
innovate their operations to remain profitable. The subway implemented these activities to be
competitive in market and helps in attracting more customers.
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References:
Books and Journals
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Arsawan, and et.al., 2020. Leveraging knowledge sharing and innovation culture into SMEs
sustainable competitive advantage. International Journal of Productivity and
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pp.262-271.
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Perrini, and Russo, 2019. The Roots of Corporate Sustainability: the Art of Managing Innovation
and Relationships by illycaffè. In Managing Sustainable Business (pp. 363-394).
Springer, Dordrecht.
Petkova, 2018. Fashion Companies: Organizational Responses to Managing Innovation in E-
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Cham.
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