The Effective Allocation of Resources For Operations Management


  • Unit No: 25
  • Level: High school
  • Pages: 18 / Words 4427
  • Paper Type: Assignment
  • Course Code: NA
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Question :

 This assessment will cover certain questions which are like:

  • Analyze the resource allocation plan in Subway.
  • What are the strategies for resource allocation plan.
  • What are the devising areas and SRA for managing Subway.
Answer :
Organization Selected : Subway


Operations management is an operation of management which is mainly concern for planning, designing and controlling the process. Consideration of this aspect within the organisation is essential in terms to enhance performance and attain business objectives. This following assignment is based on Subway and it is an extension of Part One, that defined operation management and its activities. This report focus on considering the effective allocation of resources for operations management and strategic risk evaluation on operations functions of the organisation (Kuei and Lu, 2013).


P7. Preparation of a Resource Allocation Plan

Resource allocation depicts to an effective process that an organisation espouses in order to assign all the resources or assets of in an effective so that accomplishment of organisational objectives and requirement can be ascertained. This plan will cover all the tangible assets which has possessed by an organisation which helps them in appropriate allocating right resources to the right operation (Tieman, van der Vorst and Che Ghazali, 2012).

In regards to Subway, company is carrying out various operational activities like location Strategy, manufacturing, quality management, supply chain management and advertising. Therefore, some requirements are arising due to these activities which need to be considered by organisation. In this aspect, resource allocation plan for the organisation is given beneath:






Financial Resources


In order to operate all the manufacturing activities prominent funds are required to ensure effectiveness of each activity. Therefore, these resources needs to be allocated appropriately as it would help the firm in carrying out all the production activities significantly.



12nd June, 2020

10th September, 2020

Human Resources


This is the foremost requirement of a firm which define about its infrastructure that will give contribution in location strategy. In this, HR department will give their emphasis on searching spectacular location where they can build building of Subway (Sampso, 2012).

10th December, 2019


July, 2020

Artificial Intelligence Technology


This is the most essential requirement of a company so as to maintain quality of food management, packaging, delivering and customers service operations, Subway can use this resource effectively in terms to bring perfectionism in their operations.



20th August, 2020




This is most operational requirement of Subway as it is required raw material on daily basis and supply its finished used to end customers. An effective transportation medium would help the firm in maintaining supply chain which is suitable as per the time and appropriate logistics and inventory supply.

18th August, 2020



Strategies For Supporting Resource Allocation Plan Along With its Critical Analysis

A range of strategies are available in this context which needs to be acquired by the company that would assist them in effectively implementing resource allocation plan and increase efficiency of organisation. In this aspect, various strategies are describing below: 

  • Training and Development: This is considered as one of the most important strategies for accomplishing the requirement infrastructure is training and development. The employees who are indulging in development of infrastructure needs effective training and development programs with the help of several techniques and methods like simulations, that will assist them in carrying out all the activities related to handle all operations related to develop a significant location strategy (Abaunza and et. al., 2015). This strategy has huge significance for the organisation as it will increase the motivation, production and competence level of employees which help the Subway organisation in developing their infrastructure and fulfilling the operational requirement. In order to get higher efforts of employees, organisation must give their focus on adopting most suitable learning style for everyone as each personal is different in their own way due to which it becomes essential to make proper flexibility within the firm.
  • Capital Budgeting: Consideration of this strategy is essential for the organisation as it is related to maintaining financial resources of the company to carry out all manufacturing activities significantly. This will help the company like Subway in determining all the assets like machinery, product development etc. to operate all the functions optimally. This will also help them in eliminated all unnecessary resources so that smart investment decision can be made. The main advantage of this strategy is that it will identify all the risk which is associated with investment opportunities which enables the organisation to come up with best decision to regulate appropriate manufacturing activities (Vejrum Wæhrens, Cheng and Skov Madsen, 2012). However, in case if the proper assessment will not conduct then the wrong application of decision might be taken. Due to this, it is essential for organisation to analyse risk first and after that they should make decision related to conduct all the manufacturing operations.
  • Total Quality Management: It is the most effective strategy which needs to be adopted by the firm to maintain their quality. This strategy is mainly concern for espousing appropriate processes and methods which would keeps up consistency within the firm. It is very beneficial for the Subway organisation as with the help of this they can deliver quality products and services to their consumers that are nucleus requirement of organisation. But it has some disadvantage also as it might happen that company needs to adopt those methods, techniques and equipments which incur higher cost for the firm. Due to this, before possessing any of the method it is essential for an organisation to evaluate several alternatives on the basis of cost and quality so that they can choose a most effective process for themselves (Andradóttir, Ayhan and Down, 2013).
  • Just-In-Time Inventory Management: This is known as inventory management technique which will help Subway organisation in making their supply chain strong. It will also help them in accomplishing logistics requirements with the help of quality that would be needful for a firm, which would help them in maintaining their time and efforts of grooving more transportation channels. The main benefit of this, it will reduce the cost and give assurance of maintaining appropriate relations with supply chain management. But this method also consist disadvantage as Subway is a fast food outlet, so that it does not required for them to utilise set quantities, as because they it has higher demand in weekends and throughout the day. Thus, organisation needs to acquire effective methods and techniques which help them in maintaining proper level of stock to provide effective service to their customers.


VRIO model can be explained as the framework which helps to find out the capabilities of an organisation through which company can take additional advantage in the market. It is said that any of the organisation most have the knowledge about their strength and weaknesses so that goals can be easily achieved within the specific time period. While talking about Subway, VRIO will be one of the model which will explain that how future changes can be adopted by knowing the main internal capabilities of a company. There are four different area which are mainly focused in it which is explained below.

  • Valuable: This is the stage where company is required to find that the resources which they uses really add on the value to organisation or not. It is one of the way through which any of the threats can be dealt easily. In context of Subway, it can be easily said that the value which they add on to their organisation can be easily adopted by the rivalry firm to give strong competition in future period of time. If company wants to take more advantage from the market then they are needed to ensure that they will bring value to their resources so that it becomes different for other to copy.
  • Rareness: In simple words, Subway doesn't have the rareness in their product and services as it can be easily adopted by other organisation. But, the brand image which they have maintained in the market is one of the way which can help to say that rareness is still available in their services and products.
  • Imitability: The concept which are being used by the business organisation like Subway are not that imitable because their resources can be copied at any period of time. This is can create negative impact on the working condition of the company.
  • Organisation: Although, the products which are being sold by the Subway are not that important but still it is necessary to understand that the resources which they uses helps them to attain any of the goals. In simple words, the available resources are helping the company to perform any of the work at a greater platform.

McKinseys Model

McKinseys Model is a business model which simply explains that internal factor of a business organisation must be managed in a systematic manner in order to ensure that required objective can be achieved in specific time period. This model is based on internal factors which are simply categorised into hard and soft elements. While talking about the Subway, it is the model which can help them to manage their work in a systematic manner which will directly lead to accomplish the target. Discussion about the elements are mentioned below:

Hard Elements

  • Strategy: It is the first element of the model which explains that proper strategy plays the crucial for the business organisation to attain the target. In context of Subway, their management is required to make the proper strategy where they must focus that how they can provide the better quality of product in the market so that goals can be achieved.
  • Structure: It is needed be understood that organisation structure plays the crucial role because it helps to decided whether goals can be achieved or not. Talking about Subway, they are one of those business organisation where they follows divisional organisational structure. This strategy simply helps to expand business activity which takes organisation near to their mission and vision.
  • System: It is necessary to be understood that company must have a proper plans and procedure so that they can work as per the systematic manner. For Subway, it is necessary for them to understand that must monitor each and every activities which are being conduct by the staffs so that future improvement can be done easily.

Soft Elements

  • Shared Values: In soft elements, it is necessary to be understood that shared values plays the crucial role in the organisation because it discusses about the culture and ethics being followed in the organisation. Talking about Subway, their management is required to ensure that they will treat each and every employees equally so that customers can be given proper services.
  • Style: Subway can take the help of transformational leadership style which will give idea to the leader that how they are required to react in any of the situation. This will allow company to attain their targets which facing any of the problems.
  • Staff: It is needed to be ensure within the business organisation like Subway that they provide the appropriate training to their employees which can allow them to perform their task specifically.
  • Skills: It is necessary for the company like Subway that they must use proper skills within their work because that is the only way they can provide the appropriate services to their customers which they requires while connecting with the company.


P8. Devising and Carrying Out an SRA For Subway

Strategic Risk Analysis (SRA) depicts to proper evaluation of certain risk which might create hindrance in taking all the strategies and operations in a significant way. Screening of this is highly essential as it will help the company in making some effective plans which would reduce the negative impact of these factors and can enhance organisational performance (Vom Brocke and et. al., 2014).

Even so, in context of Subway, the Strategic Risk Assessment is defined below:






Equipment Failure


Quality Manager

The penalty or consequence of equipment failure will direct affect the production process and quality of products. Also, it will create lower productivity and can create hurdled in providing safety to the employees.






R&D and Manufacturing Department

Changes in Supply Chain Regulations


Inventory Manager

The main influence of these has on the supply chain management and also experienced by logistics.

Logistics Department

Employee Disloyalty


HR Manager


Marketing, Sales and Manufacturing Divisions.

These all the above mentioned risk can create various disadvantages for the company. Also, it can develop several complexities at the time when the need to operational requirements required to be accomplished. Subway’s strategies and functions also could experience drawbacks while making efforts in achieving organisational goals and gain competitive advantage (Hick, Hanfling and Cantrill, 2012).

Contingency Plans:

However, it is essential for the company like Subway to formulate and implement various contingency plans in a well manner, which will help them managing, handling and minimising risk which is attached with the functions of company effectively. Here is defining contingency plan for Subway which is defined below:





Equipment Failure

In terms to effectively tackle the risk of equipment failure, organisation can adopt in-house testing which would help the organisation in increasing scope of their performance by using equipments and tools of the firm.

Quality enhancement Manager

2 Months

Changes in Supply Chain Regulations

The organisation must give their emphasis on making appropriate relationship with supply chain management so that any kind of negative impact cannot experience while adopting changes. Along with this, suppliers also require to formulate on contractual basis so as to maintain proper authenticity in supply chain management.

Public Relations Manager

5 Months

Employee Disloyalty

It is essential for the organisation to monitor each and every employee performance in order to motivate them to adhere an ethical framework so as to get their higher efforts.

HR Policy Manager

12 Months

Therefore, these above contingency plans will give huge support and guidance to the company, which will help them in minimising the risk which are linked with the functions of the firm (Ponsignon, Smart and Maull, 2012).

Strategies and Justifications:

These above described strategies are very appropriate for the company in order to ensure effectiveness within the organisational functions by reducing risk from operation of the company. Therefore, it is required to justify all the strategies at specific level which are described beneath:

  • Monitoring (Operational Level): This is considered as one of the most effective strategy which is effectual in making proper monitor on the performance of the organisation. It is very beneficial at operational level as it will help in bringing stability in regards to carrying all the operational functions in an effective manner. Along with this, monitoring also would helps in enhancing sustainability in the functions of the organisation and developing effective growth towards accomplishing the organisational goals (Chiodo and et. al., 2012). 
  • Contractual Relations (Strategic Level): Supply chain management concept is the most crucial strategy for the organisation like Subway as their daily operations or activities and quality depends on the effectiveness and consistency of the supply chain. Also, Contractual relationship will also make a legal relationship with their major suppliers which will give huge contribution in providing protection while they are espousing changes rapidly. Additionally, these strategies will help them organisation in gaining higher competitive advantage in market place, which will allow them in taking their operational activities in a most significant way.
  • In-House Equipment Testing (Tactical Level): This is refers to on tactical level, this is also a very beneficial technique as it would help the company in keeping up consistency in the operations of organisation. Overall strategy is also having positive impact on the time management technique. Hence, this will help the Subway in becoming tactically strong (Abaunza and et. al., 2015).

Discussion On SWOT

It can be explained that SWOT analysis one of the model which add on the value in company because it gives the idea that what are the strong and weaker area in the organisation. SWOT analysis will allow business organisation like Subway to do future improvement so that their goals can be accomplished in a specific manner. For collecting the detail knowledge about SWOT analysis, it has been discussed below in context of Subway.



Company like Subway have developed the strong market base due to which they are able to maintain their name in one of the most fastest growing food chain business in the world and that has been one of the main strength of a company.

There are number of outlets which are unable to maintain their customers on regular basis because they have very low quality of chairs which doesn't give comfort to customers.



Still there are number of countries where Subway has the option to expand their business as that will allow them to attain their targets on specific time period.

Subway is getting the tough competition from the internation market of McDonald's KFC due to which profitability might decrease in future period of time.


While talking about the company like Subway they are needed to find that how their internal management is handling all of the condition of a company because this will allow them to bring future changes through which goals can be accomplished easily. Even there will be chances that weaker area can be improved which will uplift the standard of a company.

Also read: Difference Between Management and Financial Accounting


From the above file, it can be understood that operations management is the most crucial factor for the organisation in order to carry out all the activities in a most significant way. Consideration of Resource allocation plan is necessary so that organisation can allocate all the resources in such way which allows them in accomplishing their operational requirements. At last, assessment of strategic risk analysis is essential for the company which are associated with the strategies of the business so that proper assurance of the business organisational activities can be assured to enhance the overall performance. Get more details about assignment help UK from our experts.


  • Abaunza, F. and et. al., 2015. Do flow principles of operations management apply to computing centers?. Production Planning & Control. 26(4). pp.249-264.
  • Andradóttir, S., Ayhan, H. and Down, D. G., 2013. Design principles for flexible systems. Production and Operations Management. 22(5). pp.1144-1156.
  • Chiodo, A. and et. al., 2012. Using Lean principles to manage throughput on an inpatient rehabilitation unit. American journal of physical medicine & rehabilitation. 91(11). pp.977-983.
  • Hick, J. L., Hanfling, D. and Cantrill, S. V., 2012. Allocating scarce resources in disasters: emergency department principles. Annals of emergency medicine. 59(3). pp.177-187.
  • Kuei, C. H. and Lu, M. H., 2013. Integrating quality management principles into sustainability management. Total Quality Management & Business Excellence. 24(1-2). pp.62-78.
  • Ponsignon, F., Smart, P. A. and Maull, R. S., 2012. Process design principles in service firms: Universal or context dependent? A literature review and new research directions. Total Quality Management & Business Excellence. 23(11-12). pp.1273-1296.
  • Sampson, S.E., 2012. Visualizing service operations. Journal of Service Research. 15(2). pp.182-198.
  • Tieman, M., van der Vorst, J. G. and Che Ghazali, M., 2012. Principles in halal supply chain management. Journal of Islamic Marketing. 3(3). pp.217-243.
  • Vejrum Wæhrens, B., Cheng, Y. and Skov Madsen, E., 2012. The replication of expansive production knowledge: the role of templates and principles.Baltic Journal of Management. 7(3). pp.268-286.
  • Vom Brocke, J. and et. al., 2014. Ten principles of good business process management.Business process management journal. 20(4). pp.530-548.
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