Analysis paper
Subway is a term used when referring to the privately owned chain of restaurants. Apparently, business is not so scrupulous, and they, therefore, decide to join the likes McDonald’s, Dunkin’ Donuts and the Burger King in break fast and fast foods production. The Subway restaurants single consists of close to twenty-five hotels in Canada and US alone. It mainly deals in fast foods and competes with the high and mighty likes of McDonald’s. As a result of declining sales, the Subway’s management has been on an initiative to improve its image and operations, which are in turn supposed to improve sales. One of the sectors that needed improvement was the one dealing with break fast and creation of an effective menu (Paley, pg 345).
Subways has also resolved to looking into factors such as micro and macro economic elements, marketing structure as well as financial factors all of which will contributes to sales increments. In the micro economic sector, we have competitors, consumers as well as suppliers. These are the micro economic factors affecting business operations (Paley, pg 345). Subways has tried dealing with the competitors who entail firms like McDonald’s by identifying their operational strategies. This way, the Subways will identify success strategies used by its competitors.
Observation of consumer markets was also another important feature of the economy.(Madura, pg 411). In the case of Subways, there has been a drop in sales. Strategies to improve the situation ought to be implemented. It is vital that Subways restaurant open early to capture more customers. A regular customer identified as Ryan suggested this idea. Public consumption patterns are of importance in menu formation.
Subways has also tried working on the macro economic factors such as the demographic in terms of human population. Another factor is the economic environment and cultural structure (Anderson, pg 114). The culture of people in the Subway’s situation is such that they have few visits, which means low sales. The management resulted to coming up with ways to at least; persuade customers to make extra visits for breakfast. The Restaurant management also conducted surveys on customers who suggested it would be of immense help if breakfast became more profitable, as the restaurant revised its opening hours. Customers preferred having breakfast as from eight o’clock.
The current economic situation is also not favoring as the country is in a recessional state (Anderson, pg 114). During this period, only the full- service hotels reap substantial profit margins. With reasonable investment coupled by changes in the eating patterns, Subways should be able to rise above their current sales.
Remarkable effort in marketing Subways is visible. This step is essential as a business gets to know competitive advantage from firms operating in the same sector as well as the needs of customers. Subways has been effective in all this, by merging with the leading firms in the industry. It has also succeeded in seeking to know customer views regarding its operations (Madura, pg 411). It has also decided to add more items to its menu such as sandwiches. Subways has to keep at par with the new additions in the menus of competitor firms to entice more customers also provide a variety in the menu. Advertising has improved tremendously with signs on windows and doors. Customers need a lot of convincing regarding Subways as an excellent fast-foods joint.
Financially, Subways has to put in more capital to add on the menu. After the market situation had been analyzed, conclusion was that a few opted to start have meatball marinara coupled with other niceties for lunch. In addition, restaurants that tested breakfast menu-increased sales by six percent. If more investments on sandwiches were made, it would form a significant investment for Subways.
Work Cited
David Anderson. Cracking the AP in economics macro & micro exam. New York: The Princeton Review publishers. 2004. Pg 114.
Jeff Madura. Introduction to business. New York: Cengage learning publishers. 2006. Pg 410- 411.
Norton Paley. The manager’s guide to competitive marketing strategies. London: Thorogood Publishing 2006. Pg 345, 367.
