Major Products and Industries Essay Example
Major Products and Industries Essay Example

Major Products and Industries Essay Example

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  • Pages: 4 (949 words)
  • Published: October 1, 2018
  • Type: Case Study
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Subway is excited about expanding its brand in Brazil, a country with immense growth potential. Through thorough analysis of our business model, we have teamed up with GE Franchise Finance to support our investment in Brazil. Our initial test store will be located in Brasilia, a city that benefits from a large influx of tourists and upscale hotels. Brazil's recent strides towards being more open economically are expected to increase efficiency and encourage the development of industries where Brazil has a strong international competitive position.

Our optimal strategy is to uphold a 99-year contract with the Brazilian government and employ local staff to promote stability in the regional market. For market entry, we plan to franchise under the Subway International, GE Franchise Finance, and Brazilian Economic and Development Committee platforms. By entering the Brazilian market as a franchise, we can reduce initial expenses and i

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ncrease cash flow. Furthermore, Subway's straightforward operational model contributes to the cost-effectiveness of franchise establishment.

Franchisees don't need to spend a lot of money on costly appliances like grills and fryers since there is no cooking required. In addition, the decor package is designed to avoid spending money on assets that cannot be recovered. To organize Subway's Brazilian franchise, a functional organizational structure will be implemented which groups people together based on similar positions, tasks, or skills.

When individuals are categorized based on their similar positions, it becomes easier for them to exchange information and communicate with each other. Decision-making can also be expedited when individuals share similar perspectives as opposed to having contrasting viewpoints. As the business landscape in Brazil expands, we will strive to establish an organizational structure that can accommodate

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our growth. To accomplish this goal, Subway plans on forming a Strategic Alliance with local businesses in the area to provide fresh products to its restaurants and utilize local delivery trucks for transportation.

Despite having Burger King and McDonald's as our main competitors in Brazil, we possess a competitive edge owing to our strategic location. Additionally, if we encounter any issues with fresh vegetables, we have an alternative plan to obtain them from Guyana located just south of the border. Our Brazilian division will serve as a branch of our United States stores, and our objective is to provide the necessary tools and knowledge for entrepreneurs to effectively compete in the QSR industry worldwide. With an aim to have ten establishments operating within three years and eventually reaching a maximum of fifty stores within eight years, each year we will assess the financial practicality of the area and make appropriate modifications.

Our restaurant is committed to providing a variety of amenities, such as backup generators for uninterrupted service, round-the-clock customer support, and a play area for children. Our dedication to the people of Brazil is unwavering and enduring. The start-up costs for our restaurant will include expenses for franchise fees, real estate, leasehold improvements, equipment, security systems, freight charges, exterior signage, opening inventory, insurance coverage supplies, training expenses advertising legal and accounting fees as well as other miscellaneous expenses.

The costs associated with starting up will be paid in US dollars, as per contract requirements between Subway International, GE Franchise Finance and the Brazilian Economic and Development Committee. Local personnel and vendors will be paid in the local currency based on the exchange rate. One hundred percent financing

for this expansion in Brazil has been agreed upon between Subway International and GE Franchise Finance. Subway International will also finance its own franchise in case of any market downfalls or shortfalls experienced by GE Franchise Finance. Our strategic planning and finance department will analyze this proposal and develop a business plan to present to stakeholders.

Top level management will disperse funds as necessary. Module 8 focuses on the development of a global MIS (Management Information Systems) that addresses the information needs of Subway's managers. To make informed business decisions, the Global Information Needs Manager will require: a System Analysis Report to examine inputs, processes, and outputs of the entire company; a Forecasting Report to anticipate future trends including inflation, interest rates, employment levels, and supply costs which can impact sales; and an Econometric Analysis Report to estimate demand cycles, cost and supply functions, income distribution changes, and more.

The Summary of Year-end Operating Results report, provided to all business managers annually, includes the Balance Sheet. Subway has internal sources of information that provide valuable insights about the organization. Internal sources of information can take various forms, such as training officer, HR staff, employee surveys, and internal training records. Additionally, internal sources of information include payroll records, workload reports, organizational charts and affirmative action reports which contain employee demographic information.

The significance of knowledge as the key competitive advantage has been exacerbated by the borderless global economy. To obtain essential external data, our top management will consult with the Brazilian Economic Development Department, local banks, and distribution agencies. In terms of information management technology, Subway will establish a Wide Area Network connected to our headquarters through

AT;T after a thorough evaluation. The purpose of this network is to connect various applications that report inventory levels, sales analysis, and other financial information.

As part of our plan, we have secured a license agreement with Symantec Security Systems for monitoring our network and will lease fiber optic lines through the Brazilian government. To provide wireless access for our customers, we will utilize Cisco routers. Our action plan includes installing computer applications on our servers to access internal data and generate reports for management purposes.

Our restaurants will provide wireless internet access for customers, while our supplies will be procured from local suppliers in partnership to secure affordable prices and services.

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