Reasons for Change

Reasons for change

Juliana Hendrix

February 29, 2016

HRM/310

Christian Forscutt

There are numerous reasons why an organization would change and find a new way to do business. In the highly competitive market we live in, companies need to be in constant change and advancement in order to stay competitive in the market. Technology is one of the main reasons why a company would change seeing technology is advancing at he speed of light.

Technology, desire for growth, process improvement and regulations are one of the main reasons companies change. Subway was created in 1965 under a different name, and it struggle in order to be successful; however, in 1974 they changed their name to Subway and began selling franchises, making it today a big company with over 22525 stores in the United States as of 2009 (Joseph, 2016). Changes must occur in order for businesses to stay competitive in today's market as every day new ideas and concepts are being created making companies re-think their structure and the way they handle business in order to remain competitive.

Subway Sandwiches

From 1965 and 1974 Subway was not very successful, and it had not become a big hit; however, a new change in the way of doing business was introduced, and the company started to sell franchises of the restaurant becoming one of the strongest sandwich business.

The reason structural changes are taking place is because the market is competitive and companies are being creative daily and becoming efficiently and proactively, in addition, the company founders had a goal of opening 32 stores by 1975 and by 1972 with only 16 stores opened they realized they would not be able to reach their goal; therefore, the change was necessary in order to remain competitive and accomplish the company goal of 32 stores by 1975 (“The History of Subway”, 2016).

Organization Changes

Organization changes are to change an organization significantly; for example to add a new product or service. Subway is always offering promotions in order to remain competitive with other businesses out there offering the same product and service. Subway can implement a new faster way to achieve ordering; such as in a computer screen so then the cashier can go ahead and help out with the sandwiches while the consumers place the order and they receive the order a lot faster and with no mistakes, so that reduces complaints and unhappy customers.