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Subway Criteria of Performance Management

Paper Type: Free Essay Subject: Business
Wordcount: 1876 words Published: 3rd Jul 2017

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In this project, I have discussed all the aspects of Subway restaurant. I have explained the introduction, history, strategy, mission statement and objective of the Subway. I have described the criteria of performance management and the important issues of the organization. And how Subway can meet their future needs adopting new strategies ideas and feedback given by the people is included in this report.

Introduction of the Company:

The Subway restaurant chain is the world’s biggest submarine sandwich company, with more than 32,200 locations in 90 countries. Headquartered in Milford, Connecticut, and with regional offices in Amsterdam, Beirut, Brisbane, Miami, and Singapore, the Subway chain was co-oriented by Fred DeLuca and Dr. peter Buck in 1965. The Subway brand was ranked the number one Franchise Opportunity and the number one Global Franchise Opportunity in the 2010 edition of Entrepreneur magazine’s “Annual Franchise 500” survey, an honor that the Subway chain has received 17 times in the past 23 years. For more information about the Subway restaurant chain, please visit www.subway.com. Subway is a registered trademark of Franchise World Headquarters. It was the mainly introduction of the Subway restaurants which explained that how they get started. (1)

SUBWAY’s Strategy:

Subway is exclusively a franchise operation, and does not own or operate any corporate restaurants. The Subway chain was built on the concept of franchising units to independent owner. In 1992, Subway introduced a new co-branding strategy, arranging to install smaller Subway units inside convenience stores and other retail locations. The co-branding concept also included partnerships on local levels with independent grocery store chains, hospitals, and college and high school food service operations.

Mission of SUBWAY:

At the core of an organization is its purpose or mission. The mission provides the guiding direction for developing strategy, defining critical success factors, searching out key opportunities, making resources allocation choices and pleasing customers or stakeholders.

“To provide the tools and knowledge to allow entrepreneurs to successfully compete in the QSR industry worldwide by consistently offering value to consumers through providing great tasting food that is good for them and made the way they like it.” (3)

We believe that the only way to eat is fresh, when it is made in front of you by real people in a place that you want to visit.


Values are sources of strength, because they give people the power to take action. Values are deep and emotional and often difficult to change. There are some values of Subway are as follows:

  • Subway wants to customer satisfaction through offering best quality food with exceptional service and good value.
  • They take care in serving each other, their customers and their communities.
  • They seek regularly improvement in all that they do.
  • They expect fairness and mutual respect in all their activities.
  • They know their achievement depends upon the initiative
  • They have ability to work as a team.


Every organization has some objectives. If that organization is able to achieve these objectives then it will be successful in the market. There is very difficult to make a good image because, there is a lot of competitors in the market. Objective is basically a powerful mental image of what we want to create in the future. They are rooted in reality, but focus on the future. They enable us to explore possibilities, desired realities. Because of this, they become a framework for what we want to create, which guides us in making choices and commitments for action.

To be the number 1 in the submarine sandwich category, there are some objectives of Subway which are as follows:

  • Subway want to make the good quality
  • It aims to target teens
  • Wants to increase the sale by offering in the products
  • It aims to make a good customer service in the market
  • Subway wants to beat their competitors by better quality, taste and make cheaper than the others
  • It aims to introduce itself in other countries

Performance Management:

Performance management is that, how can we manage our performance in the business. We have to check, are we going into the right direction or no. If there is any problem in anywhere of the business then we have to remove this problem and should be in the right way. Armstrong and Baron define performance management as

“a process which contributes to the effective management of individuals and teams in order to achieve high levels of organizational performance. As such, it develops shared understanding about what is to be achieved and an approach to leading and developing people which will ensure that it is achieved.” (4)

Performance management depends upon management system and people working together to make sure the right things happen. It is concerned with the boarder issues facing a business if that business is to function effectively in its environment, and the general direction in which the business intends to go to achieve its long term goals.

There are a number of aspects of the performance management which cover the whole system:

  • Vision or review goals
  • Define a performance management
  • Planning of performance management
  • The performance measurement framework
  • Human resource
  • Reporting performance
  • Taking action for improvement
  • Feedback

First of all there should be a vision in front of us. We take an extra care about vision, vision is that, where we want to be seen our company or organization. Visions are the result of head and heart working together. We should know which goal we have to achieve or which area we have to target. When the complete sketch of vision in our mind then we can achieve that goal through performance management. Vision of performance management offers your project focused organization a powerful business learning tool which helps you to turn business data into knowledge.

Define a performance management is not as hard as it sounds. All we need to do is define overall performance objectives and processes essential to delivering a good service. Not only the goal needs to be defined clearly but according to the business of the organization, its business objectives also need to be defined apparently so that all the employees of the organization know what the objectives of the organization are. Clearly define and document them so anyone in the group can do them.

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Planning is vital to our life’s success. Whether we are running a business or doing any other job, planning plays an important role for this achievement. Planning is the beginning makes for better conclusion. Nothing is impossible without the proper planning. Planning makes things easy to implement. If the planning is done in the organization it needs to take care of some of the needs of the employees and the employees also needs to be involved in the planning to some extent. In other words, involving employees in the planning process improves confidence. Business plans are a keystone of the successful performance management. An effective plan provides a solid foundation for achievement. Every person knows how they contribute to achieving the company’s improvement objectives. The service planning process is the opportunity to make balanced and co-ordinate decisions. Planning process is the right place to identify areas where performance can be reduced, must be improved. After the planning stage, everybody should have a clear idea of what is expected from them.

Customer and market focus is very important step in the performance management. We should stay our customers and remain close to them. We should know their full range of demand and to understand what they want to us. We must look for opportunities to better serve our customer and give them priority,

“To make performance management effectively, every individuals of the organization should know on what basis their performance will be measured. The measurement should be clear and implement fairly across the organization. The measures might be input and output of every individual or as a team. Some points of performance measures are highly contextual, which are as follows

Individual output measures:

  • Objectives achievement
  • Achievement against agreed standards of performance
  • Specific instances of performance

Input measures:

  • Ability and skill
  • Experience
  • Potential to develop new skills and progress to next career level
  • Communication skill which enhance team roles.

Team measures:

  • Individual contribution to the team
  • Support for others to achieve their objectives
  • Understanding of team role” (5)

Human resource department plays an important role in the performance management. This department decides that whether this employee is suitable for this job or not. In every successful organization, right person doing their right job. The HR department should have the ability to decision making because this section is very effective for any organization. If human resource is not performing well then there will be some weaknesses. There are some weaknesses points are as follows:

  • “Unclear rating method
  • Performance standards are not clearly described
  • There is no objectivity in making value judgment on performance
  • Rating are not given adequate training to provide them with performance management skills
  • Results are changed by senior management
  • Recent event, whether positive or negative, are given undue weight
  • The evaluation results are not used in management decision” (6)

So what we must do? We collect the information to ensure that we can achieve a high degree of efficiency and effectiveness in managing the system of managing employee performance. To ensure that there is a linkage of employee performance to our organizational productivity.










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