This sample will let you know about:
- What is business management?
- Discuss various aspects of business management.
INTRODUCTION
Business and management are the important kind of disciplines devoted to organizing, evaluating and planning the various kinds of business operations and activities. It is the branch of education that provides the knowledge and training to supervise organisational works and activities positively. Respective report is based on the Food industry by evaluating their Internal strength, external business environment, organisational performance, organisational structure of both the organisations and at last comparison and contrast of both companies.
About Subway
Subway is a well known restaurant chain specialize in submarine sandwiches, it become the largest fast food chain in market of USA in terms of no. of outlets (Chaffey,Hemphilland Edmundson-Bird,2019).
About KFC
KFC is an American fast food restaurant that specialize in the Fried chicken. It is the world's largest chain of food after McDonald's as it records its presence in the 136 countries.Need Assignment Samples?Talk to our Experts!
SWOT analysis
SWOT of KFC
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Strength
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Weaknesses
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Opportunities
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Threat
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Key findings
It has been evaluated that organisation operates in global level with the great brand identity in the marketplace. It is very much potential for them to enlarge the products and services by introducing new products and services such as healthy food as consumers are very much health conscious in today's business environment.
SWOT of Subway
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Strength:
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Weaknesses:
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Opportunities:
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Threats:
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Key findings
From the analysis it has been evaluated that they are well known food service provider in the market but on other hand faces the threat of local food provider which hinders their self interest (Harmon,2019).
External Environment
To analyse the business environment it is very much important to use a framework that is PESTEL analysis that are as follows:
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Factors |
Subway |
KFC |
|
Political |
Political factors impact on the business works and activities. For an example the UK and EU passes through the certain changes and BREXIT also created uncertainties in market . |
KFC is one of only fast food restaurants with fast food services to achieve the goals they make political system that change their business strategy and make progress of company. |
|
Economic |
In economic factors consist of interest rates, tax regimes and many more (Hassanienand Dale, 2019). In context of Subway the recession in USA impact on their business in UK and other countries. Subway increase in revenue due to enhancement in their disposable income. |
In economic aspect of the organisation is about fund or money as they provide their products at lower prices. They provide the food packet as per the consumer demand that support to buy there again (KFC PESTEL analysis for international expansion, 2020.). |
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Social |
In social factors Subway considers the two important factors first is styles of people in general in UK, USA and EU. They by obeying the religious rules in certain countries in order to gain desirable outcomes. |
In social factors consist of change in taste and preferences of consumers they by providing the food that taste related with the country that have a good performance and talent in cooking for chef. |
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Technological |
They by using the social media tools in order to promote the products and services. By using their own loyalty card “ subcard” to pushing consumers towards purchasing. |
In context of KFC they focus on the advancement of products and services by making a website so that easily can reach at large no. of consumer base. |
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Legal |
Subway must comply with the rules of land it operates. Packaging, food hygiene, quality of food that affect on their law. The different kind of legal systems affect on their business activities. |
KFC is a legal companyby overseas the companies that going to international businessso that they can maintain faith in between the employees. |
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Environment |
Change in the local, national and international environmental regulations impact on their business works and activities (Kao,2019). Byusing the more sustainable and greener approach in order to serve consumers in best manner. They are responsible for making Subway restaurants and operations as environmentally and socially responsible as possible. |
Environment is one of most important as without environment organisation can not transmit because environment are their consumers and they gain profit from them. |
So after analysing respective factors, it has been evaluated that organisation always have to focus on the major areas of improvement in order to build strategies and tactics positively. In context of subway they have to build products that are liked by consumers as they demand the healthy food to capture the large market share. On other hand KFC they have to follow the legal rules and regulations to coordinate the works and activities in systematic manner. Ask for assignment help from our experts!
THE ORGANISATIONAL STRUCTURE
About KFC organisational structure
Organisational structure is the system which outlines the way activities are directed in order to achieve desirable goals in an organisation (Millerand Engemann,2019). In context of KFC they use the hierarchical organisational structure in which with the help of various ranks of experts and vertical chain of command knowledge and information passes through the right direction in order to gain desirable outcomes. In it the straightforward chain of knowledge from the top of organisation to the bottom.
Vision of the organisation
Their passion as an restaurant company is to put YUM on the face of people around the whole world. They devoted for satisfying consumers every time by serving better food.
Mission
KFC is the internationally renowned fast food chain in the whole world, their main ambition is to enhance the quality of food (Management functions performed by Kentucky Fried chicken, 2020). They want to provide products in order to give one of best experience by expanding branches in whole world.
The major department of the organisation are marketing, finance, operation, HRM and quality control department to control all the activities of organisation.
Themajor functions of management is to planning, organizing, leading, controlling and assurance for serving to ultimate consumers positively.
About Subway organisational structure
Organisational structure defines about the formally divided, grouped and coordinated in order to gain desirable outcomes from theimplementation of the structure. In context of subway they use flat organisation structure refers to the with few or no levels of management in between the management and staff level (Myers,2019). In respective structure organisation supervise employees less while promoting the their increased involvement in the crucial decision making.
Mission and vision of subway
The mission of Subway is to delight every consumer with great value through fresh, delicious, made to other sandwiches and exceptional experiences in order to remain competitive in the marketplace.
The vision statement of the organisation is to become the quick service franchise restaurant in the whole world by delivering delicious, fresh sandwiches. So all people in the organisation by building teams aimed to give one of the best products and services to the ultimate consumer base to remain competitive in marketplace.
ORGANISATIONAL PERFORMANCE
Estimates of the KFC financial performance in pound
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Factors of financial performance |
2020 |
2021 |
2022 |
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Revenue |
27300 |
28600 |
29800 |
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Dividend |
60 |
62 |
64 |
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Net profit |
2100 |
2300 |
2450 |
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Gross income |
8000 |
8400 |
8800 |
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Total assets |
26100 |
28430 |
30970 |
From the above data and statistics it has been evaluated that the KFC is very much progressive organisation as their revenue in 2020 is 27300 pound and it is estimated that it gradually increases by 28600 in 2021 and 29800 in 2022 (FINANCIALS KFC, 2020). the dividend in year 2020 is 60 and it rises by 62 in 2021 and 64 in year 2022. the net profit of the organisation is 2100 in year 2020 and 2300, 2450 respectively. So it can be said that it is very much important to measure the financial growth of organisation in order to build strategies and tactics. Order Economics Essay Help Now!
Non financial performance
In non financial performance of the KFC consist of the training and development program that provided to the service crews or food service workers in field of customer service, health and safety and food preparation. So respective kind of training program enables to organisation to serve the consumers in best manner in order to remain competitive in marketplace.
Estimates of the Subway financial performance in pound
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2017 |
2018 |
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Operating profit margin |
32.38 |
52.33 |
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Gross profit margin |
32.38 |
52.33 |
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Net sales |
|
0.11 |
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Net profit |
-0.02 |
-0.02 |
From the above discussion it has been summarised that the factors of the financial performance indicates shows that operating profit margin in the year is 32.38 and in year 2018 is 52.33.the gross profit margin is same to operating profit margin (Subway Finance And Investment Company Ltd, 2020). The net sales of the organisation in year 2018 is .11. so it can be said that there financial prosper organisation and gain sustainability with help of their strategies and tactics.
Comparison
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Factors |
Subway |
KFC |
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External environment |
Subway sandwich string and concentrates on their marketing strategy and targets. In order to they presents the internal and external conditions with a detailed description by using SWOT for the business in order to remain competitive in the marketplace. That helps to develop the insights into target market along with promotional and rates strategies so far to generate value for consumers (Nosratabadi and et.al., 2019). |
In context of KFC they on continuous basis conduct the research and development in order to collect important information such as political background, economic factors and many more in order to gain desirable outcomes. With the help of proactive approach to deal with the problems to remain competitive in marketplace. |
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Advertising |
Subway to reach at large no. of consumer base they use slogan Eat fresh by focusing on the way its sandwiches freshly backed and usage of fresh ingredients in front of consumers. |
In context of KFC they use colonel Sanders that is key component of their advertisingas it work as key icon of company as an international symbol of hospitality. With thehelp of franchise to fund nationwide to gain desirable outcomes positively (Novakand Janeš,2019). |
Conclusion
From the above report it has been concluded that for an organisation it is very much important to evaluate or visualise various aspects such as competitors in market, trends of market in order to build strategies and tactics in potential manner. With the help of SWOT, PESTEL and analysis of organisational internal information a firm can be able to reach at crucial decision making by acknowledging important information positively. By collecting the financial and non financial performance organisation can know about their strength and areas of improvement in order to gain desirable outcomes.
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