What Are The Advantages And Disadvantages Of Subway?

Subway Report

Executive Summary

This report has examined the current franchising process in which Subway adhere to, while also indicating to subway that they could improve their franchising method by monitoring and controlling franchisees operations, while providing assistance and support throughout. Moreover, this report highlights the cultural challenges, such as; legal systems, laws and regulations, language barriers and the cultural differences with regard to Subways menu. Lastly, the recommended alternative approach Subway can use in conjunction with franchising, in order to gain a competitive advantage, is to export their products into supermarkets overseas.

Introduction

As consultants to Jim Bryant, this report will examine the current franchising process in which Subway adhere

Advantages

• Transfer of knowledge between partners

• Enable partners to achieve goals that are difficult to achieve independently

• Offer a more rapid and successful entry into a new location due to partners knowledge

• Brings together different skills and resources which means the joint venture are stronger than they were when they were independent

• Enables partners to share costs and risks so there isn’t pressure on a specific partner

(D, Johnson, 2009)

Disadvantages

• The objectives of each partner may be different. Objectives therefore need to be clearly stated at the start of negotiations.

• Difference in the culture and style of business could result in friction and poor communication

• Knowledge transfer between partners may not be as straightforward as first thought

• May not be able to implement the cultures and operations of the partner company

• When moving into a foreign market could be exposed to commercial, culture or currency