Live Project on Principle of Management

A
PROJECT REPORT ON
PRINCIPLES OF MANAGEMENT
OF
SUBWAY SYSTEMS INDIA PVT
LTD

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(AICTE APPORVED & AFFILITED BY GUJARAT TECHNOLOGICAL UNIVERSITY)
Submitted To:-
Neha Hamilton
(Professor)
In Partial fulfillment of the requirement
For the award of the degree of
Masters of Business Administration (Semister-1)
Prepared By:-
N i r a j G B h a d u w a l a
Subject: - Principles of Management.
Enrollment No: - 138220592022
Academic year: - 2013-2014

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DECLARATION
I hereby declare that the study entitled ‘A PROJECT REPORT ON
PRINCIPLES OF MANAGEMENT OF SUBWAY SYSTEM INDIA
PVT LTD’ is being submitted by me in the partial fulfillment of the
requirement for the award of MASTERS OF BUSINESS
ADMINISTRATION.
The matter embodied in this project report has neither been
submitted to any other University nor to any Institution for the award of
degree. This project is my original work and it has not been presented
earlier in this manner. This information is purely of academic interest.
Name: Niraj G Bhaduwala Signature
Date: 1 December 2013
Place: VADODARA

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CERTIFICATE
This is to certify that a project entitled “PRINCIPLES OF
MANAGEMENT OF SUBWAY SYSTEM INDIA PVT LTD” is a
record of project work done by Niraj G Bhaduwala, bearing Enrollment
No: 138220592022, student of MBA(1st
Semester INSTITUTE OF
TECHNOLOGY AND MANAGEMENT) has satisfactorily completed.
This project during academic year 2013-14 and has not been previously
formed a basis for the award of any degree.
This project represents an independent work on the part of the
candidate under the guidance.
Place: Vadodara Name & Signature of the guide:
Date: 1 December 2013
Signature of Student:

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CONTENTS OF TABLE
Sr. No Contents Page
No.
1 PREFACE 5-6
2 ACKNOWLEDGEMENT 6-7
3 HISTORY OF ORGANIZATION 7-9
5 SUBWAY’S MISSION & VISSION 9-10
6 SWOT ANALYSIS 10-11
7 MANAGERIAL FUNCTIONS 11-12
8 5 FUNCTIONS OF MANAGEMENT
 PLANNING
ORGANIZING
DIRECTING
STAFFING
CONTROLLING
9 CONCLUSION
10 REFERENCES
11

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PREFACE
The M.B.A curriculum has been designed to provide the further manager
ample practical exposure to business world. The project program is
necessary and essential part of the M.B.A degree cource. It helps the
student to gain the knowledge about various aspects of market, consumer
and industry.
“Management is the Process of Planning, Organizing, Staffing and
Controlling the activates of various resources within the organization
through systematic, coordinated, and cooperative human efforts to
achieve organizational objectives.”
Basically when we are playing with computer in every part of life, I used it
in my project not for the ease of my but for the ease of result explanation
to those who will read this project. The project presents the Principles
Managerial functions of “SUBWAY SYSTEMS INDIA PVT LTD”
I had toiled to achieve the goals desired. Being a neophyte in this highly
competitive world of business, I had come across several difficulties to
make the objectives a reality. If anywhere something is found not in
tandem to the theme then you are welcome with your valuable
suggestions. My project “Principles of Management of “SUBWAY
SYSTEMS INDIA PVT LTD”.” is based on study conducted by me under
the guidance of Neha Hamilton. It gives me pleasure to prepare the report
on this company.
I believe that my project report will have been very helpful to the practical
knowledge in the field of management of any organization.
I could Ancash this opportunity to the best of my encompetence, zeal,
perfection and academic knowledge and I am keen to make it on going
journey throughout my life as I strongly believe that learning is a journey
not a destination.

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ACKNOWLEDGEMENT
“It is not possible to prepare a project report without the assistance &
encouragement of other people. This one is certainly no exception.” I
would like to extend my sincere & heartfelt obligation towards all the
personages who have helped me in this endeavor. Without their active
guidance, help, cooperation & encouragement, I would not have made
headway in the project.
I feel great pleasure to prepare and present report of principles of
management and information being gathered and so much knowledge
and experience, feeling of gratitude arises. Firstly I would like to thank my
college “Institute of Technology And Management” and my dean
Academics Dr. Sanjay Kumar Vij for giving me an opportunity to learn
from this project. I would like to take this opportunity to express my
sincere thanks and gratitude to my subject teacher Miss Neha Hamilton
for providing their guidance of my report without which I would not
complete this project.
I am thankful to the organization for providing their time for giving me
information on their website I would even like to thank the organization for
their valuable contribution to the county being largest food chain in the
nation.
At last but not least I am thankful to all who have helped me directly or
indirectly for completion of my project report
Lastly any omission in this brief acknowledgement does not mean lack of
gratitude.
NIRAJ BHADUWALA
(INSTITUTE OF TEHNOLOGY AND MANAGEMENT)

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HISTORY OF THE ORGANIZATION
In 1965, Fred Deluca had just graduated from high school in Bridgeport,
Connecticut, USA. Like many young adults his age, he had dreams of
attending college. Although he was a hard-working, competent and
dependable young man, the $1.25-per-hour he earned working at the
local hardware store wouldn’t be enough to finance his education.
Discouraged, Fred decided to ask Dr. Peter Buck, an old family friend, for
some advice. The two had known each other for years and Fred half
expected Dr. Buck to loan him the money for college after telling him of
his plans to study to become a medical doctor. Instead, Dr. Buck gave
Fred an idea that would change his life and the lives of people around the
world.
"I think you should open a submarine sandwich shop," said Dr. Buck. At
first Fred was skeptical, but after Dr. Buck explained how the sandwich
shop could finance Fred’s future education, he was on board. That night,
Fred and Dr. Buck formed a partnership that would lead to the first
SUBWAY®
restaurant.
By lunchtime on the first day Fred and Pete’s submarine shop was open,
customers were pouring in. From that day on the company continued to
grow. Fred and Pete had a goal of opening 32 submarine sandwich shops
within 10 years. By 1974, eight years after they opened their first
sandwich shop, Fred and Pete owned and operated sixteen shops
throughout the state of Connecticut, only halfway to their goal.
As Fred and Pete looked to grow the business, talk turned to franchising,
an idea they had previously dismissed as something only for “the big
guys.” Determined to succeed, Fred and Pete decided franchising was
the key to achieving their goal. So Fred met with his friend Brian Dixon
and made him an offer he couldn’t refuse. He offered Brian a loan to buy

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one of their restaurants, but to sweeten the deal, Fred told Brian that if he
didn’t like the business, he could return it and owes nothing.
Brian is known as the very first SUBWAY®
franchisee – setting the new
standard for the SUBWAY® business model. This enabled Pete and Fred
to not only reach their goal, but surpass it. Today, entering their 46th year
of operation, SUBWAY® restaurants is the world’s largest submarine
sandwich chain operates more units in the US, Canada and Australia
than McDonald’s® does. Countless awards and accolades have been
bestowed upon Fred DeLuca and the SUBWAY® chain - the
SUBWAY® name and its products have even appeared in numerous
television and motion picture productions.
Thus Subway is in the fast food industry. Subway is unique because
instead of greasy, unhealthy food it serves nutritious subs, salads, wraps
and others. Subway is popular because they make your food in front of
you, and you get to pick what you want on it. Subway has had many
slogans in the past such as “My Way” in 1985, “The place where fresh is
the taste” in 1990, “What a sandwich”; in 1994, “Right before your eyes”
in 1995, “The way a sandwich should be” in 1996 and has been “Eat
Fresh” since 2000.
Subway has 32004 restaurants in 90 different countries. Subway is
America’s largest sandwich shop. Subway has over 150,000 employees
across the world. All subway restaurants are franchised. In 2007,
Subways total sales valued over 11 billion. There are over 2 million
different variations on Subways menu.

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SUBWAY’S MISSION & VISSION
 MISSION
To provide the tools and knowledge to allow entrepreneurs to compete
successfully in the Fast Food industry worldwide, by consistently offering
value to consumers through providing great tasting food that is good for
them and made the way they want it.
To be the leading integrated food services group in the Asia Pacific region
based on consistent quality products and exceptional customer-focused
service.
Subway intends to invest more in advertising. It targets different sections
of the market in order to sell its products. Subway wants to focus more on
young people and the working class by associating its name with events
linked to youth, sports and health. Health is one of the crucial priorities for
the franchise.
 VISSION
Subway’s vision is to offer customer satisfaction, offer high quality food at
a great value, while giving the best service possible; and they strive to
give this all to their customers worldwide. The franchise takes pride in
continuing to improve upon their customer service, among other sectors
within their company. Subway expects that each and every one of their
employees, as well as the partners of each chain, remains fair and
respectful as they represent the company. Subway knows that nothing
can be accomplished alone, but instead, that they most work all together
to accomplish common goals and succeed.

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SWOT ANALYSIS
The Subway franchise currently finds them well positioned to leverage
their strengths and address reasonable threats, weaknesses, and
opportunities.
 Strengths:
Subway is a well-established global brand and a leader in the quick
service restaurant industry. The company has been able to multiple very
quickly due to its successful business strategies. The Subway franchise is
strengthened through its size and number of stores, this aid with the
strength of their worldwide brand recognition. Furthermore, their brand
consistency helps to strengthen their brand recognition. Subway is also
very focused on their customers. Subway is currently associated with the
Coca-Cola brand which strengthens the company. The Subway brand
has caught on quickly as a result of their “Eat Fresh” slogan and their
ensuing advertising campaigns. Subway's sandwiches are all made when
ordered, right in front of the customer. The restaurants decor is also
designed to emanate “freshness”.
 Weakness:
Subway must face their weakness as they work to become a global
strength. A weakness commonly found in the labor-intensive industry is
that the employee turnover rate is very high. A high employee turnover
rate can be the result of employees not having a high level of motivation
or are dissatisfied with their employment. Some franchisees are found to
be unhappy with in the Subway franchise. This could be a result of a
number of factors; for example, a declining turnover rate, fees for
materials or corporate policies; .Another weakness is that the employees
have no control over franchise saturation in a given market
situation. Furthermore, the service delivery is found to be fairly
inconsistent from store to store. From the customers' point of view there
are some franchise weaknesses. Many customers have come to the
conclusion that the decor of Subway restaurants is outdated. Subway's

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prices can be considered a weakness because they are higher than most
other quick service restaurants.
 Opportunities:
Subway is fortunate because they have many opportunities in the global
market as they continue to invest in their international growth and
expansion. The companies have the capacity, potential and know how to
further expand the franchise. Subway also has the opportunity to improve
on many things that will directly help the face of their brand in the eyes of
the customer. Subway can update their “outdated” decor, which would
result in more customers dining in opposed to take away. The employees
of Subway can also work to improve their customer service through
improving their Customer Service Model. Subway has the opportunity to
bring this menu option for children global. The company also has the
opportunity to follow in many other fast food restaurants’ footsteps by
further developing partnerships with movie producers and toy
manufactures. This is a great opportunity for co-branding to promote new
movie releases through children's menu packaging.
 Treats:
Like all corporations, Subway faces a number of external threats. One of
all businesses' critical threats is the economy. When an economic
recession arises companies are all gravely affected by the consumption
and spending power of the consumer. Another economical threat is that
of interest costs. Interest costs can be very high, especially when opening
a new restaurant. Franchisees can become overwhelmed when having to
pay for their interest costs, the cost of rent, electricity, advertising, and
employee paychecks. Another economical threat is that of interest costs.
Interest costs can be very high, especially when opening a new
restaurant. Franchisees can become overwhelmed when having to pay
for their interest costs, the cost of rent, electricity, advertising, and
employee paychecks. Subway also finds itself battling other external
threats. Food contamination is always a risk in the restaurant industry.
Some threats involve Subways customers, including their taste, personal
income, demographics and demand for the product.

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MANAGERIAL FUNCTIONS
Management in all business and organizational activities is the act of
getting people together to accomplish desired goals and objectives using
available resources efficiently and effectively. “Management is the
process of designing and maintains an environment which individuals,
working together in groups, efficiently accomplish selected aims. this is
known as management” Management comprises planning, organizing,
staffing, leading or directing, and controlling an organization (a group of
one or more people or entities) or effort for the purpose of accomplishing
a goal. Resourcing encompasses the deployment and manipulation of
human resources, financial resources, technological resources and
natural resources. Each and every functions of management has its own
importance and role in an organization.
 Henri Fayol was the first to describe the five managerial functions of
management when he was the CEO of a large mining company in
the later 1800’s.
 Fayol noted that manager at all levels, operating in a profit or not for
profit must perform each of the functions :
 Planning
 Organizing
 Leading
 Staffing
 Directing
 Controlling

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5 FUNCTIONS OF MANAGEMENT
Henry Fayol has described the following 5 functions of management
which could be implemented in an organization for effective working of
the organization.
PLANNING
Planning (also called forethought) is the process of thinking about and
organizing the activities required to achieve a desired goal.
Planning is the process used by managers to identify and select
appropriate goals and courses of action for an organization. Planning is
the process of thinking about and organizing the activities required to
achieve a desired goal. Planning involves the creation and maintenance
of a plan. As such, planning is a fundamental property of intelligent
behavior. This thought process is essential to the creation and refinement
of a plan or integration of it with other plans; that is, it combines
forecasting of developments with the preparation of scenarios of how to
react to them.
The planning function determines how effective and efficient the
organization is and determines the strategy of the organization.
In Subway each franchisee just strives to do the best they can in their
given situation. Each franchisee also works to insulate themselves
against outside forces but, of course, Subway does keep an eye on their
competitors. Subway hopes to remain fending off their competition by
focusing on what they are good at and trying to further improve on their
successes.
In Subway, objectives are set, launch of new products, introduction of
new schemes, market survey etc. is done.
For e.g.:- Subway recently introduced an Italian at a cost of Rs 125/- , to
increase its customer base.
Market survey is done in order to know what is more in demand. For
example, surveys are done regarding to the demand in the market.

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ORGANIZING
In organizing managers create the structure of working relationships
between organizational members that best allows them to work together
and achieve goals.
An organizational structure is the outcome of organizing. This structure
coordinates and motivates employees so that they work together to
achieve goals.
In Subway, the whole activity is divided into task groups each dealing with
a specific area like food committee, decoration committee, packaging
committee etc. In every outlet these are under the overall supervision of
the official in charge.
In this system, employees report not only to a functional manager but also
to a project team leader or a product manager with regard to product
issues. A key feature of the matrix structure is this dual reporting, which
violates a traditional principle of establishing reporting relationships. This
radical step is taken because the special expertise of the functional
worker is deemed essential to the success of the project or product. The
assignment may be temporary or long term, depending on the nature of
the project.
 ORGANIZATIONAL CHART
An organizational chart (often called organization chart, org chart,
organogram (me), or organogram (me) is a diagram that shows the
structure of an organization and the relationships and relative ranks of its
parts and positions/jobs. The term is also used for similar diagrams, for
example ones showing the different elements of a field of knowledge or a
group of languages. A company's organizational chart typically illustrates
relations between people within an organization. Such relations might
include managers to sub-workers, directors to managing directors, chief
executive officer to various departments, and so forth. When an
organization chart grows too large it can be split into smaller charts for
separate departments within the organization.
STAFFING

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Staffing is the managerial function of filling and keeping filled position in the
organization structure. This is achieved by, first, requirement of workforce,
followed by recruitment, selection, placement, promotion, appraisal and
development of personnel to fill the roles designed into the organization.
Staffing also includes
 Training and development
At Subway all employees receive extensive training provided through using
blended learning techniques (e-learning, on-the-job and formal classroom).
All team members receive comprehensive training in the following areas:
- customer service
- food preparation
- cash handling
- food safety
- stock control
All Shift Supervisors/management participate in our Subway Global
Training curriculum (40 core competencies). The training is designed and
facilitated by accredited professionals (internal and external) to ensure
all Shift Supervisors/Management gain the skills, knowledge and experience
to operate our successful restaurants. Our Subway training is matched
against the Australian Qualifications Framework (AQF) and recognition of
prior learning is available.
In addition, the company provides comprehensive training in the following
areas:
- leadership development
- culture
- interaction management
- fire safety
- first aid training
- food safety

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- human resources, workplace health & safety
- information systems
- financial & operations accounting
Training continues throughout everyone's career with the company.
DIRECTING
In directing, managers determine direction; state a clear vision for
employees to follow and help employees understand the role they play in
attaining goals.
The outcome of directing function is a high level of motivation and
commitment from employees to the organization.
In Subway, one of the reasons of success is because of healthy supervisor-
worker relationships. Mc Donald’s and KFC in comparison has a very low
turnover ratio implying that the workers are provided with healthy
working conditions, incentives, motivation and efficient communication.
CONTROLLING
In controlling, the manager evaluates how well the organization is achieving
its goals and takes corrective action to improve performance.
The outcome of controlling function is the accurate measurement of
performance and regulation of efficiency and effectiveness.
In Subway, the increasing sales and consistent demand shows that in the
organization activities are performed as per the plans, also the organizations
resources are being used effectively and efficiently. The SUBWAY® system
is committed to providing a wide range of great tasting, healthier food
choices while reducing our environmental footprint and creating a positive
influence in the communities we serve around the world.

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CONCLUSION
I am really very happy on concluding this report because it was great
opportunity for me to prepare the report on “SUBWAY SYSTEMS INDIA
PVT LTD”
I am very glad to say that it has been great opportunity to prepare this report
on managerial functions of organization. I have made my full efforts to include
all the aspects of management and have clearly presented the functions
systematically.
I feel very happy and glad to present this report as it is very important part in
the study of our MBA program to gain all the theoretical knowledge of
PRINCIPLES OF MANAGEMENT of Subway. I conclude that
However, looking at the Subway success story, I might wonder if other business
areas that have similar modes of functioning should perhaps rethink their
business model and change their strategy, like that of Subway's, to franchising.
This could make certain allying mass marketing chains come back to profit, as it
would stimulate private entrepreneurship.
In this conclusion I would like to say that the organizational growth and
objectives can only be achieved by properly implementing these principles of
management as subway has implemented it effectively.
At the end lasts but not the least I wish that the “SUBWAY” keeps on growing
and progress in the future.

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