ASSIGNMENT

MBA-202
Marketing Management

Model Institute of Engineering & Technology (Autonomous)

(Permanently Affiliated to the University of Jammu, Accredited by NAAC with “A” Grade)
Jammu, India
2023-24

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 TABLES OF CONTENT……..

S.NO CONTENTS

1. INTRODUCTION

1.1 PRODUCTS

1.2 REGIONAL VARIATIONS

1.3 LOCATIONS

2 SUBWAY, JAMMU

2.1 PROBLEM OBSERVED

2.2 SUGGESTIONS

3 INVENTORY MANGEMENT

3.1 INVENTORY MANAGEMENT IN SUBWAY

3..2 CHALLENGES

3.3 SUGGESTIONS

4. CONCLUSION

5. REFRENCES

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 SUBWAY:

1.INTRODUCTION:

Subway is a global sandwich franchise, known for its customizable submarine sandwiches
and salads. In India, Subway has a significant presence with numerous outlets across various
cities, offering a range of sandwiches, wraps, and salads tailored to local tastes.

Subway entered the Indian market in 2001 through a franchise agreement with Subway
Systems India Pvt. Ltd. The company rapidly expanded its presence across the country by
offering a menu tailored to local tastes while maintaining its core concept of customizable
sandwiches and salads. Over the years, Subway has become a popular choice for quick and
healthy dining options in India, with a growing number of outlets in major cities and towns.
They've adapted to local preferences by introducing vegetarian and non-vegetarian options
suited to Indian palates, contributing to their success in the region. On September 4, 2012,
Subway opened its first all-vegetarian outlet on the campus of Lovely Professional University
(LPU) in Jalandhar, Punjab.[61] On March 6, 2013, Subway opened its second all-vegetarian
outlet also offering Jain food in Paldi, Ahmedabad.

1.1Products

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Subway's main product is a type of sandwich called a submarine sandwich or "sub". Each sub
is made from a combination of baguette, meat, cheese and vegetables. Subway has
different menu items for different countries. However, there are some common products that
are sold in most countries. They are:

 Italian BMT (Stands for "Biggest, Meatiest, Tastiest" though it stood for "Brooklyn
Manhattan Transit" at first.[5])

 Steak & Cheese

 Meatball Marinara

 Chicken Teriyaki

 Subway Club

 Chicken & Bacon Ranch

 Tuna

 Roasted Chicken

 Veggie Delite

1.2Regional variations:

Subway formerly had 23 kosher restaurants in Israel. All were closed by 2004. In the United
States, there used to be 12 locations with kosher food. As of 2011 only 5 were open.

Subway opened its first restaurant in India in 2001 in New Delhi. Subway restaurants in India
do not serve beef and pork products in deference to Hindu and Muslim beliefs respectively.
Subway opened its first all-vegetarian outlet on the campus of Lovely Professional
University (LPU) in Jalandhar, Punjab. In 2009, Zagat Survey Says "Top Overall",
Behind Wendy's.

1.3Locations:

Distribution of Subway
restaurants around the world
1000 or more

100 to 999

10 to 99

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 1 to 9

As of February 2023, Subway had approximately 37,000 locations in more than 100
countries, all independently owned and operated by a network of franchisees. Subway has the
highest concentration of locations in North America with more than 20,000 in the United
States, 2,881 in Canada, and 758 in Mexico, as of 2019. This was almost as many U.S.
locations as McDonald's and Starbucks combined, as of 2018. Outside North America, the
countries with the most locations are Australia (1,215), Brazil (1,643), and the United
Kingdom (2,195), as of 2019.

Question 1: Find any retail outlet (Retail/Wholesale /Restaurant) nearby to your home
place and discuss the layout of the outlet. Identify the problems in the layout and give your
suggestions to improve the layout

2.SUBWAY layout in Bahuplaza:

subway restaurants in India typically follow a similar layout to those found in other countries.
Here's a general description of the layout commonly seen in Subway outlets:

1. Entrance and Ordering Area: Upon entering a Subway restaurant, customers

usually encounter a clear path to the ordering area. This area typically consists of a
counter where customers can see the available bread, toppings, and sauces. There may
be menu boards or digital screens displaying the menu options and prices.

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2. Bread Selection: Customers first choose the type of bread they want for their
sandwich. Options often include varieties like Italian, wheat, honey oat, and
multigrain.

3. Toppings Station: After selecting the bread, customers proceed down a line of
ingredients where they can customize their sandwich with a selection of meats,
cheeses, vegetables, and condiments. This area typically includes options such as
lettuce, tomatoes, onions, cucumbers, bell peppers, olives, pickles, jalapenos, and
sauces.

4. Toasting Area (Optional): Some Subway restaurants offer toasting or heating options
for sandwiches. If a customer chooses to have their sandwich toasted, it is placed in a
toaster oven for a brief period to warm the bread and melt the cheese.

5. Cashier and Payment Counter: After customizing their sandwich, customers move
to the cashier counter to pay for their order. The cashier rings up the items and may
ask if the customer wants to add
any sides or drinks to their order.

6. Seating Area: Once customers have paid for their order, they typically proceed to a
seating area where they can enjoy their meal. The seating area may include tables and
chairs or booths for customers to sit and eat comfortably.

7. Drink Station: In many Subway outlets, there is a self-service drink station where
customers can refill their drinks or choose from a selection of beverages such as
sodas, iced tea, and bottled water.

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 8. Condiment and Napkin Station: Near the drink station or at another convenient
location, there is often a station with additional condiments, napkins, straws, and
utensils for customers to use as needed.

Overall, Subway restaurants in India aim to provide customers with a customizable and
convenient dining experience, allowing them to create sandwiches tailored to their
preferences.

2.1Problems observed in the Subway outlet:

Subway restaurants, like any other food service establishment, face various challenges in
their layout design. Here are some problems that arise in Subway restaurant layouts:

1. Congestion at Ordering Area: If the ordering area is too small or poorly

organized, it can lead to congestion and long wait times, especially during peak
hours. Customers may feel frustrated and may be less likely to return if they
experience delays in placing their orders.

2. Inefficient Flow of Customers: A layout that does not facilitate the smooth flow of
customers from the entrance to the ordering counter and then to the seating area can
cause bottlenecks and confusion. This inefficiency can result in decreased customer
satisfaction and slower service.

3. Limited Seating Capacity: Subway restaurants with limited seating capacity may
struggle to accommodate customers, especially during busy times. This can lead to
customers leaving without making a purchase or feeling crowded and
uncomfortable while dining.

4. Lack of Accessibility for People with Disabilities: If the layout is not designed
with accessibility in mind, it can pose challenges for people with disabilities, such
as those using wheelchairs or mobility aids. Subway restaurants should ensure that
their layout complies with accessibility standards and provides easy access to all
areas of the restaurant.

5. Limited Visibility of Menu and Pricing: If the menu boards and pricing
information are not clearly visible or easily accessible, customers may struggle to
make informed decisions about their orders. This can lead to delays in the ordering
process and frustration among customers.

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 6. Poorly Organized Condiment and Drink Stations: If condiment and drink
stations are not well-organized or stocked, it can create confusion and
inconvenience for customers. Subway restaurants should ensure that these stations
are easily accessible and clearly labeled to facilitate self-service.

7. Inefficient Use of Space: Inefficient use of space can lead to wasted areas or
cramped seating arrangements. Subway restaurants should optimize their layout to
make the best use of available space while ensuring that customers have enough
room to dine comfortably.

8. Maintenance and Cleaning Challenges: Layouts that are difficult to clean and
maintain can result in hygiene issues and detract from the overall dining experience.
Subway restaurants should prioritize layouts that are easy to clean and maintain to
ensure a clean and sanitary environment for customer.

2.2Some suggestions to improve the layout:

1. Optimize Ordering Area: Streamline the ordering process by redesigning the layout
to reduce congestion and wait times. This may involve expanding the ordering area,
adding additional order stations during peak hours, or implementing self-order kiosks
to expedite the process.
2. Enhance Flow of Customers: Ensure a smooth flow of customers from the entrance
to the ordering counter and then to the seating area. Use clear signage and designated
pathways to guide customers through the restaurant efficiently.
3. Expand Seating Capacity: Increase seating capacity by maximizing space utilization.
This could involve rearranging seating arrangements, adding communal or bar-style
seating, or creating outdoor dining areas where feasible.
4. Improve Ventilation and Temperature Control: Upgrade ventilation systems and
temperature control mechanisms to create a comfortable dining environment for
customers. Ensure proper airflow and temperature regulation throughout the restaurant.
5. Prioritize Accessibility: Ensure that the layout is accessible to all customers,
including those with disabilities. Install ramps, widen aisles, and provide accessible
seating options to accommodate individuals with mobility impairments.
6. Enhance Visibility of Menu and Pricing: Make menu boards and pricing information
more visible and accessible to customers. Consider using digital menu displays with
dynamic pricing updates and high-contrast text for improved readability.

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 7. Organize Condiment and Drink Stations: Optimize condiment and drink stations for
ease of use and cleanliness. Arrange condiments and drink options in an organized
manner, and regularly restock and clean these stations to ensure a pleasant dining
experience.
8. Maximize Space Efficiency: Make efficient use of available space by optimizing
layout design and furniture placement. Consider modular furniture options that can be
easily rearranged to accommodate varying customer traffic and seating preferences.
9. Implement Easy-to-Clean Surfaces: Use materials and surfaces that are easy to clean
and maintain to ensure a hygienic environment. Choose durable, non-porous materials
for countertops, tables, and seating to facilitate quick and thorough cleaning.
10. Regular Maintenance and Inspection: Conduct regular maintenance and inspection
of the restaurant layout to identify and address any issues promptly. This includes
monitoring traffic flow, cleanliness, and overall functionality of the layout.

Question 2:-Discuss the inventory management/ Quality Management of chosen outlet.

Which method of inventory management/ Quality assurance technique they are opting.
Give your recommendations to improve the inventory management/quality
management.

3.What Is Inventory Management?

Inventory management helps companies identify which and how much stock to order at
what time. It tracks inventory from purchase to the sale of goods. The practice identifies
and responds to trends to ensure there’s always enough stock to fulfill customer orders and
proper warning of a shortage.

Once sold, inventory becomes revenue. Before it sells, inventory (although reported as an
asset on the balance sheet) ties up cash. Therefore, too much stock costs money and reduces
cash flow.

One measurement of good inventory management is inventory turnover. An accounting

measurement, inventory turnover reflects how often stock is sold in a period. A business does
not want more stock than sales. Poor inventory turnover can lead to deadstock, or unsold
stock.

Why Is Inventory Management Important?

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Inventory management is vital to a company’s health because it helps make sure there is
rarely too much or too little stock on hand, limiting the risk of stockouts and inaccurate
records.

Public companies must track inventory as a requirement for compliance with Securities and
Exchange Commission (SEC) rules and the Sarbanes-Oxley (SOX) Act. Companies must
document their management processes to prove compliance.

3.1Inventories Management in Subway:

Subway restaurants typically maintain inventories of various food and non-food items to
ensure smooth operations and meet customer demand. Here are some common items found in
a Subway restaurant inventory:

1. Bread: Subway restaurants stock various types of bread such as Italian, wheat, honey
oat, and multigrain to use as the base for sandwiches.

2. Meats: Inventory includes a variety of meats such as turkey, ham, roast beef, chicken
breast, and salami, which are used as protein options for sandwiches.

3. Cheeses: Different types of cheeses like cheddar, Swiss, pepper jack, and provolone
are kept in stock for sandwich customization.

4. Vegetables: Subway restaurants typically stock a range of fresh vegetables including

lettuce, tomatoes, onions, cucumbers, bell peppers, spinach, olives, and jalapenos for
sandwich toppings.

5. Sauces and Condiments: Various sauces and condiments such as mayonnaise,

mustard, barbecue sauce, ranch dressing, honey mustard, and hot sauce are kept on
hand for flavouring sandwiches.

6. Cookies and Chips: Many Subway restaurants offer cookies and chips as side
options, so inventory includes these packaged snacks.

7. Beverages: Inventory includes bottled beverages such as sodas, bottled water, iced
tea, and fruit juices.

8. Napkins and Utensils: Subway restaurants stock napkins, straws, plastic utensils, and
other disposable items for customer use.

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 9. Cleaning Supplies: Inventory includes cleaning supplies such as disinfectant sprays,
wipes, sanitizers, and paper towels for maintaining cleanliness in the restaurant.

10. Paper Products: Inventory includes various paper products such as sandwich wrap
papers, sandwich bags, and receipt paper.

11. Packaging Materials: Subway restaurants stock packaging materials like sandwich
boxes, bags, and cups for serving food items.

12. Cooking Supplies: For Subway restaurants that offer toasted sandwiches, inventory
includes toaster oven liners, trays, and other related equipment.

13. Frozen and Refrigerated Items: Some Subway restaurants may stock frozen or
refrigerated items like pre-cooked proteins, cheeses, and sauces to ensure freshness
and food safety.

14. Produce: Inventory includes fresh produce such as lettuce, tomatoes, onions, and
other vegetables used as sandwich toppings.

3.2Challenges faced in Inventory management in Subway restaurants, impacting

operations and profitability.

1. Inaccurate Inventory Tracking: Manual inventory tracking or outdated systems can

lead to inaccuracies in inventory counts. This can result in overstocking, stockouts,
and discrepancies in ingredient availability, affecting service quality and customer
satisfaction.
2. Poor Forecasting and Ordering: Ineffective forecasting of ingredient demand can
lead to overordering or underordering of supplies. Without accurate predictions based
on historical data, seasonality, and customer trends, Subway restaurants may struggle
to maintain optimal inventory levels.
3. Inefficient Stock Rotation: Failure to adhere to proper stock rotation practices, such
as first-in-first-out (FIFO), can result in expired or spoiled ingredients. This can lead
to increased food waste and decreased profitability.
4. Storage Space Limitations: Limited storage space within Subway restaurants may
pose challenges for organizing and storing inventory efficiently. Lack of adequate
space can lead to cluttered storage areas, making it difficult to access ingredients and
increasing the risk of inventory errors.

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 5. Supply Chain Disruptions: Disruptions in the supply chain, such as delays in
ingredient deliveries or quality issues from suppliers, can impact inventory
availability. Subway restaurants need to have contingency plans in place to address
supply chain disruptions and maintain consistent ingredient supply.
6. Manual Data Entry Errors: Manual data entry when recording inventory
transactions can result in errors and discrepancies in inventory counts. This can lead
to mismanagement of inventory levels and affect financial reporting accuracy.
7. Lack of Standardized Processes: Inconsistent inventory management processes
across Subway locations can lead to inefficiencies and discrepancies in inventory
tracking. Standardizing procedures for ordering, receiving, storing, and tracking
inventory can help improve consistency and accuracy.
8. Training and Staff Turnover: Inadequate training of staff members on inventory
management procedures can lead to errors and inconsistencies. High staff turnover
rates may also impact the continuity of inventory management practices, requiring
continuous training efforts.
9. Wastage Due to Portion Control: Poor portion control practices can result in
wastage of ingredients, impacting food costs and profitability. Ensuring proper
training and oversight of portioning practices can help minimize waste and improve
cost management.
10. Limited Technology Adoption: Lack of advanced inventory management systems or
technology tools can hinder efficient inventory tracking and analysis. Implementing
inventory management software with features like real-time tracking and reporting
can enhance visibility and decision-making.

3.3Suggestions for improving inventory Management in Subway

 Utilize Inventory Management Software: Invest in inventory management software that

allows for real-time tracking of ingredients, automated ordering, and forecasting
capabilities. This software can help streamline inventory processes and reduce manual
errors.
 Implement Standardized Processes: Develop standardized procedures for ordering,
receiving, storing, and tracking inventory across all Subway locations. Ensure that all
staff members are trained on these processes to promote consistency and accuracy.

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 Conduct Regular Inventory Audits: Schedule regular inventory audits to verify physical
inventory counts against recorded levels. This helps identify discrepancies and ensures
that inventory records are accurate.
 Optimize Stock Levels: Use historical sales data, seasonality trends, and customer
preferences to forecast demand and adjust stock levels accordingly. Avoid overstocking or
understocking ingredients by maintaining optimal inventory levels.
 Adopt FIFO (First-In-First-Out) Method: Implement FIFO principles to ensure that
older inventory is used first to prevent spoilage and minimize waste. Train staff on proper
stock rotation techniques to maintain freshness and quality.
 Monitor Ingredient Usage: Keep track of ingredient usage patterns to identify trends and
make informed purchasing decisions. Analyze sales data to determine which items are
popular and adjust inventory orders accordingly.
 Centralize Ordering Process: Centralize the ordering process to ensure consistency and
control over ingredient purchases. Designate a responsible individual or team to manage
inventory orders for multiple locations to leverage bulk purchasing and negotiate better
deals with suppliers.
 Streamline Supplier Relationships: Cultivate strong relationships with suppliers to
ensure reliable and timely deliveries of ingredients. Negotiate favourable terms, such as
volume discounts and flexible payment terms, to optimize inventory costs.
 Invest in Training: Provide comprehensive training to staff members on inventory
management procedures, including proper handling, storage, and rotation of ingredients.
Empower employees to take ownership of inventory responsibilities and encourage
proactive problem-solving.
 Utilize Mobile Technology: Equip staff members with mobile devices or tablets to
facilitate on-the-go inventory management tasks, such as scanning barcodes, updating
inventory levels, and placing orders remotely. This enhances efficiency and flexibility in
inventory operations.
 Monitor Waste and Losses: Keep track of waste and losses related to inventory to
identify areas for improvement. Implement measures to minimize waste, such as portion
control, inventory shrinkage prevention, and proper storage practices.
 Continuous Improvement: Regularly review and evaluate inventory management
processes to identify opportunities for improvement. Solicit feedback from staff members

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and customers to address any issues and refine inventory management practices over
time.

4.CONCLUSION:

In conclusion, effective inventory management is crucial for Subway restaurants to ensure smooth
operations, meet customer demand, and maximize profitability. By implementing standardized
processes, utilizing inventory management software, and optimizing stock levels, Subway can
minimize waste, reduce errors, and improve overall efficiency in managing their inventory.
Additionally, fostering strong supplier relationships, investing in staff training, and embracing
technology can further enhance inventory management practices. Continuous monitoring,
evaluation, and improvement are essential to adapt to changing market conditions and maintain a
competitive edge in the fast-food industry. Ultimately, by addressing inventory management
challenges and implementing best practices, Subway can enhance customer satisfaction,
streamline operations, and drive long-term success.

5.REFRENCES:
https://en.wikipedia.org/wiki/Main_Page
https://subway.in/menu
https://en.wikipedia.org/wiki/
File:List_Of_Countries_With_Subway_Restaurants.png
https://www.investopedia.com/terms/i/inventory-management.asp
https://www.investopedia.com/terms/q/quality-management.asp

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