Proposal for Smart Phone Application Based Ordering for Subway Sandwiches - Report Example

? Proposal for Smart Phone Application based ordering for Subway Sandwiches The report aims at proposing a technology application to Subway to mitigate the flaws it has been recently witnessing in its service delivery process. Addressing the company background, the report further addresses the business problems faced by Subway. Based on the information gained regarding the business problems, the discussion tends to specify the solution proposed with the incorporation of smartphones in Subway’s service delivery process along with the benefits which the initiative can reward after solving the problem. The report also elaborates on the technical as well as business approaches required to be considered when applying the proposed mechanism along with the likely changes to be witnessed after its implementation. Challenges and the subsequent measures required to be considered have also been addressed in this report along with recommendations and a high-level implementation plan. 2. Background of the Company Subway is an American restaurant chain founded in the year 1965, by Dr. Peter Buck and Fred DeLuca. Today, the restaurant chain is situated in around 98 countries and 34,000 locations all around the world. The company has its regional offices in Brisbane, Miami and Singapore (The Ultimate Software Group Inc., 2000). The products which are offered by this restaurant chain principally fall in the category of submarine sandwiches. It has also been offering pizzas to its customers in certain areas. Subway has been operating for around 46 years and is often ranked as the largest chain of submarine sandwiches in the world. The company has been rewarded with several awards for its superior products and services which are provided to its nationwide and international customers (Doctor's Associates Inc., 2009). 3. Business Problems In today’s highly competitive market scenario, technology and better communication with the target customers have become quite essential for companies to obtain better advantages and growth prospects. However, based on this context, Mr. Van Hout, the technological officer of Subway, stated that with the power of technological assistance, the sales and the profitability of its stores can be increased substantially. Fundamentally, it has been due to its lacuna in incorporating technology in its customer service procedure that the customers have to face problems when placing orders which has been principally associated with the time-consuming delivery process of the organization. Applying the traditional delivery process, the customers need to wait in long queues which in turn tend to hamper their satisfaction level by a large extent affecting the productivity as well as on the reputation of the company (Journalistic Inc., 2013). Hence, incorporating technological innovations such as smart phones to enhance customer relationship in Subway can prove highly beneficial for the company. 4. High level Solution In order to mitigate the restrictions or rather the limitations witnessed by Subway and its customers, incorporation of developed technology application can prove to be highly beneficial. The application can be downloaded by the customers in their smartphones to be used for placing orders in a time-efficient and cost effective manner. Correspondingly, the stores will be equipped with advanced computer systems to receive, interpret as well as analyze the data collected in relation to customers’ requirements for the use of staff members. It is expected that the technology development will minimize the time-constraints in the delivery process rendering greater satisfaction to the customers and thereby rendering competitive advantages to the company so as to increase its revenue growth substantially over the long-run. 5. Benefits of solving the problem With the incorporation of the technology, it is possible for the staffs to take orders and place it in a time-effective way which shall in turn enhance the quality of customer service in Subway and likewise encourage better satisfaction within the customers. The customers, using their smartphones can order their requirements in the nearby stores which shall be available to them by the time they reach the store in person. The company can also obtain a significant benefit of understanding and continuously monitoring the buying behavior of its customers with more in-depth and rational data. This shall further facilitate the company to respond to the customers’ needs more efficiently and thus enhance customer satisfaction along with better profitability. On the whole, Subway shall gain the benefits of customer satisfaction, customer loyalty and increased competitive positioning within the industry by applying technology streamlining. 6. Business/technical approach The technical approach suggested to Subway in order to mitigate its limitations of customer delivery through traditional mechanisms focuses on its streamlining of the order placing procedure. The currently practiced method for placing orders in Subway makes the customers wait in long queues in front of the store which not only creates pressure and negative influence upon the customers making them reluctant in buying the products but also creates extreme pressure on the workforce of the company. Contextually, with the application of the proposed technical approach, i.e. setting up of a downloadable application which can be downloaded by the customers to place orders at Subway, it shall become quite easier for the employees to deal with the individual customers facing lesser pressure which can further generate better customer satisfaction making the entire process more convenient for them. This technical streamlining approach can also be regarded as a Customer Relationship Management (CRM) initiative of Subway. This particular initiative can also assist the employees to obtain regular feedbacks from them regarding the quality of food products. This shall also prove beneficial in monitoring the changes when assessing customer demand, tastes and preferences. Additionally, when concentrating on its short-run objectives, such as increased sales revenue, customer loyalty and enhanced productivity, it can be noted that with the proposed CRM software application, Subway can improve customer experiences which will reward better satisfaction amid its targeted group. The enhanced confidence among the existing customer base can further be channelized to attract new customers and therefore increase its sales revenue over a given period of time. 7. Business Process Changes Inclusion of any kind of changes through business or through technical approaches in an organizational process often leads to massive changes within the entire procedural structure. The incorporation of the proposed smartphone application to strengthen Subway’s customer relationship can also impose significant changes within its business process. For instance, incorporation of the technology application in smartphones will also require setting-up of computer programs in the Subway stores to receive signals from the customers decoding their orders, their time of arrival and other necessary facts. To ensure that employees are aware of the program sufficiently, they need to undergo training courses with the intention to make them technically skilled. The inclusion of the technical approach may also make it essential to recruit more skilled labor force in Subway stores which can have a strong impact on its overall organizational culture as well as its business process. Additionally, the incorporation of the technical advancement may also increase the flexibility of the entire business process in Subway to respond as per the industry changes and thus obtain the desired profitability. 8. Use of technology or business practices It is worth mentioning in this context that the incorporation of the proposed technical approach may cause certain challenges for Subway in its initial phase. For instance, the implementation of the planned approach will require the introduction of a substantial amount of investment. It will also require a high degree of cooperation from the employees and the customers. Thus, where on one hand, the employees need to be motivated to inculcate the change in the business process, the customers also require being strongly motivated to download and use the application in their smartphones. Major ethical issues can also rise during the implementation of the plan. For instance, customers might feel reluctant to download the application in their smartphones with the fear that it might disrupt their privacy by obtaining access to their personal information unnecessarily. Therefore, Subway will also need to maintain transparent and ethically sound acclamations when persuading the customers to participate in the process. 9. Conclusion and Recommendations From the above observation it can be concluded that Subway needs to restructure its customer deliverance process in order to mitigate the limitations it has to currently face when rendering its services to the customers in a convenient manner. Contextually, introducing a technically advanced service deliverance procedure shall assist the organization to obtain greater customer satisfaction and loyalty to augment its profitability and competitiveness in the market segment. It is worth mentioning in this context that applying any technological innovation is quite likely to bring changes in the business processes being performed by the company which can also be observed in the context of the proposed smartphone application system. Thus, the company should emphasize on applying effective change management practices in order to keep both employees and customer motivated in adapting the changes enforced. 10. High level implementation plan Steps Responsibility Potential Obstacles & Influence Requirements Resource Requirements Completion period Identify the store locations with maximum numbers of customers Store managers Might be a time-consuming and complex procedure Data of the sales turnover in the stores for a given period of time 30 days Organize meetings with the technicians regarding the proposed technology application CRM manager and store managers of the selected stores Unavailability of all the responsible members at a particular time may be demanding Time and consent of the selected members along with a corporate space to organize the meeting 30 days Obtain feedbacks from employees and valuable customers regarding the implementation of the program Store managers of the selected locations Customers and the employees may feel reluctant to the change being introduced Proper medium of communication 60 days Develop proper budget and strategic planning to introduce the proposed smartphones application CRM manager Non-cooperation from the workforce or the customers which can delay the steps Constraints in terms of inadequate obtainment of the required data Adequate information regarding employee and customer expectations 60 days 11. Summary of the project Subway is often categorized as one of the leading restaurant chains in the global market. Because of its focus on traditional service deliverance procedure, the organization has to face difficulties in responding to the rapidly increasing market-demand. It is in this context that the company can make use of technology advancements with the intention to overcome the challenges of time-consuming delivery process, weak customer satisfaction and increasing stress on employees, the company is proposed to use a technical application which will allow the customers to order through their smart phones and therefore facilitate efficiency in its business process substantially. References Doctor's Associates Inc. (2009). The history of Subway restaurants. Retrieved from http://www.subway.co.in/page_about_us.html Journalistic Inc., (2013). Improving the experience. Retrieved from http://www2.qsrmagazine.com/articles/tools/116/subway-1.phtml The Ultimate Software Group Inc. (2000). Subway. Retrieved from http://www.ultimatesoftware.com/pdf/casestudies/subwaycasestudy.pdf Bibliography Fajardo, J. F., Juan, A. A. & Grasman, S. E. (2012). Decision Making in Service Industries: A Practical Approach. USA: CRC Press. Read More