Analysis of Subways internal and external environments

2247 Words Oct 16th, 2013 9 Pages
This essay will analyse the organisation Subway’s internal and external environments and their impacts on this organisation. This will include a swot analysis on resources and capabilities which are a part of the internal environment and on customers, suppliers, competitors, pressure groups, economic, political, technological, natural environment and emerging trends in the external environment. “A SWOT Analysis is a useful technique for understanding your Strengths and Weaknesses, and for identifying both the Opportunities open to you and the Threats you face” (2013).
Internal environment
1. The Workforce
Strengths – Subway restaurants operate out of over 36,000 locations in 99 different countries.
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All of this preparation contributes to the productivity of the store. Without these steps, the restaurant would not run efficiently.
Weaknesses – Old equipment that is no longer working at its best and staff not being available to work can be weaknesses in the production process.
Opportunities – Focusing their sustainability initiatives on energy efficiency, water & resource conservation, waste reduction, sustainable sourcing and supply chain management.
Threats – Equipment failure and power outages are a huge threat to Subway concerning production. If either of these occur the Subway store would not be able to operate or produce any products.

3. Research and Development
Strengths – Develops and test markets the food that they serve, making sure it is of high standards and quality.
Weaknesses – The markets are constantly changing and they cannot always source produce from the same suppliers. Research needs to be done constantly and they do not always have the resources to do so,
Opportunities – Do customer surveys in different demographic areas to provide what those areas are in demand for.
Threats – Data recorded may be incorrect depending on what type of information they require and can come from unreliable sources.

4. Financial Management
Strengths – Subway’s finance team is responsible for tracking, organizing and
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