Business Research HI6008
In order to ascertain the continuous enhancement of an organization and ascertain its market share can be expanded further, it is needed to emphasize ways of enhancing the business performance of the organization. This would make it essential for the organization to focus on performance management that would help its employees in delivering with the quality of performance.
Considering the above-made discussion, the focus of the present assignment would be on discussing the ways in which the business performance of an organization can be enhanced. In the process of discussing the above-mentioned aspects, Subway would be taken into consideration. The journey of Subway began more than 50 years ago. The person responsible for building the brand was Dr. Peter Buck who provided the idea of opening a submarine sandwich shop. At present, Subway is one of the leading fast food restraint chains globally. It primarily focuses on providing with a variety of subs and salads. It is having its presence in 112 countries with more than 43,306 restaurants.
Objectives of the present assignment are as follows:
To identify ways in which Subway can enhance its business performance
To identify the best strategies for Subway to enhance its business performance
To evaluate the impact of the chosen strategies on Subway
To provide with recommendations for dealing with the negative impact of the chosen strategies
The scope of the present study would be specific to Australia wherein the business performance of the chosen company in the Australian market would be taken into consideration. Considering the scenario of the company, under the scope of the present study, strategies for enhancing business performance and profitability of Subway would be provided that can be applied globally.
In the process of reviewing literature, various peer-reviewed journals that provide with different strategies for enhancing business strategies that would be applicable for Subway would be taken into consideration. It is on the basis of this review of different kinds of literature, strategies that are apt for Subway for enhancing its business performance can be identified.
Subway, in order to enhance its business performance, on the first hand, is required to emphasize on strategic assessment. According to Barned (2011), most effective strategic positions are derived with the help of having a detailed understanding of customer needs context to demand products that are provided by Subway. It is with the help of this understanding, Subway, in the process of enhancing its business performance, would be able to understand the needs of customers in the Australian market, develop its products according to that would result in its enhanced business functioning.
It is essential on the part of Subway, to focus on strategic planning. The reason being, with the help of effective strategic planning, the organization would be able to have a right direction for its future operational activities. As stated by Williams and Naumann (2011), with the help of strategic planning, businesses like that of Subway would be able to set priorities towards which it is required to work and allocate its resources accordingly. In order to achieve these objectives, the business would be required to outline a particular plan according to which it would be needed to act. According to Yang et al. (2011), on the implementation of the formal process associated with strategic planning the business performance is assessed and evaluated on a regular basis. Strategic planning also helps business managers and owners in implementing organizational changes and resources that are beneficial for the organization in achieving its set target and enhancing its performance. Thus, the consequence of this is an enhanced business performance on the part of Subway.
Subway, for d
eveloping its business performance is also required to focus on its operational activities and models followed by the company. As opined by Blackburn et al., (2013), in this regard if the operational model of Subway is taken into consideration it can be observed that the organization follows an exclusive franchise. Following this model allows the organization in opening its outlets in diverse locations that include shopping centers, convenience stores, universities etc. This has resulted in providing the organization with drastic growth in recent years. As per Aarseth and Sorhaug (2011), it is worth mentioning here that, this form of operation to a great extent, is risky in nature as the franchisor’s success is largely dependent on the success of the franchisees. It is due to this high dependency level on franchisee’s success that makes it essential for Subway to emphasize on stock management and capital investment.
To get in depth of the matter, as per Hoerl and Snee (2012), businesses, which deal with stock, have increased the risk of wastage and inefficiency of its resources. The reason for such wastage of resources is the lax approach towards stock movement and its inadequate understanding along with a lack of effective record keeping. In case of ineffective management of the organization’s stock, it may lead to cash flow wastage that may have a direct impact on its sales rate. As a result, according to Colquitt et al., (2011), of this, on the part of Subways, to ascertain its enhanced business performance it is needed to have an in-depth understanding of stock level that is needed for supporting its business operations. While managing its stock, Subway is needed to emphasize on having the right stock level so that it can address its customer’s needs. It would help Subway in formulating its strategies in such a way so that the need of its customers get the address, the result of which would be the organization’s enhanced business performance.
For Subway, to develop further its business performance, capital investment plays an integral role. In this context, it is of great significance for Subway to secure its long-term viability and growth by making an investment of its capital in the business. In accordance with Trimi & Berbegal-Mirabent (2012), it is with the help of effective utilization of its capital and its resources like staffs, the organization can have ascertained output and performance. It is due to the fact that, dedicated investments when made by the company for maintaining and updating its resources like technology, Subway would be benefited because of maximized utilization of its resources and its limited wastage (Morgan, 2012). As a result, of this, the overall business performance of the organization would witness major enhancement.
One of the basic yet significant initiatives that are needed to be taken by Subway for enhancing its business performance is increased productivity. According to Colquitt et al. (2011), there are two factors that are needed to be emphasized in this context that includes, enhancing the potential of the staff and better use of technology. Subway when employing its employees is required to perceive that each staff brings certain value to the organization and its performance. Furthermore, it is required to perceive the fact that when an employee is truly engaged it results in having a major positive impact on the business success. According to Gruman and Saks (2011), this makes it essential for Subway to prioritize employing and retaining employees who make a significant contribution to organizational productivity. Subway, in order to enhance its productivity with the help of its staff engagement, it required to formulate a culture of mutual trust among the staffs, collect feedback from employees, develop effective communication among the employees and provide them with commissions and bonus to acknowledge their work. This would result in enhancing their level of productivity and in turn help in achieving developed organizational performance.
Technology plays an integral role in the business performance of an organization, which is particularly relevant for the present technological era. It is worth mentioning here that, enhancing business performance by Subway through effective use of technology would require an in-depth understanding of the main business process. According to Jeston (2014), it is on the basis of this understanding, managers and business owners can evaluate its operational areas wherein the effective incorporation of technology may help in enhancing these processes. Herein, if Subway is taken into consideration it may be observed that the standard website of the company is not responsive in nature. In other words, the website designed for the company is not responsive and the site’s traffic estimation is medium. As per Wang and Wang (2012), this implies that the viewership of the website is not high and the organization’s promotional activities are not effective in nature, as it has not been successful in reaching the mass population. As a result, of this, the organization is needed to focus on making technological advancements like designing website-ordering platform that would help the customer base in placing their orders in an effective manner (Wu et al., 2015). Making such technological advancements would help the company in placing the orders of customers at their desired location. As a result, of this, the organization would be effective in catering to the needs of the customers. Hence, the incorporation of such technological advancements in the functioning of the company would be helpful for it in enhancing its business performance.
In the process of making such technological advancement, Subway is required to be aware of the fact that, incorporation of such technology would require providing its employees with needed training. According to Zellner (2011), this would help the employees in having needed skills for incorporating these technologies into their functioning along with perceiving the significance of the technology in the functioning of the business. It is also important on the part of Subway while incorporating such new technologies in its functioning, to incorporate it in such a manner wherein the existing technology is also incorporated.
Segmentation and targeting is another mentionable aspect on which Subways is needed to emphasize on, in order to enhance its business performance. At present, the organization’s target market is young adults within the age group of 16-39 years. According to Hu and Xie (2013), within this age group, the demand for takeaway or home delivery can be seen to be high. Hence, it is with the help of segmenting and targeting of its customer base, Subway can identify in a successful manner, the need of its customer and according to bring change in its performance and operational activities. Thus it would help in enhancing the business performance of the company. Herein, identifying the particular need of its target market would result in implementing E-marketing initiative by the company that would help the company in catering to particular needs of the customer and thus results in overall organizational success. According to Schiuma (2012), it is furthermore mentionable here that, within the help of effective segmenting and targeting of the customer base, the organization would be able to recognize in a successful manner, the products that are particularly preferred by them or changes they would require in Subway’s menu. The target audience being catered by Subway can be seen to become highly focused on fresh and healthy diet. According to Salonen and Deleryd, (2011), hence, with the help of segmenting Subway would be able to understand that there are certain categories of product that are of a particular preference for Subway. This would result on the part of the company to formulate its menu and take strategies in a way so as to cater to these needs of the customers and thus result in enhanced business performance.
In alignment to effective utilization of resources, assets are another mentionable drivers affecting business performance of an organization. According to Phillips (2012), optimizing the use of assets plays an integral role in developing business performance. Successful management and integration of long-term assets and working capital make significant contribution to the success of the business along with developing the business performance.
Other than that, the organization, with the help of conducting environmental analysis can successfully identify the external and integral factors that result in affecting the performance of the organization. As opined by Ates et al. (2013), it is based on this understanding, Subway can formulate its strategies according to deal with the factors that may have an adverse impact on the organization’s functioning. Subway, on acting according to these strategies would result in enhancing its business performance.
Based on the above-made discussion, it may be observed that there are various factors, which, if focused upon by Subway would help in enhancing its business performance. These reviewed articles reflected that segmentation, technological advancements, effective use of its resources, taking initiatives for developing the organization’s productivity through engaging its employees and utilizing its resources are some of these factors. Thus, if Subway can take initiatives according to focus on these aspects and integrate it into its functioning, it would result in improved business performance on the part of Subway.
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