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Navigating the Future: A Case Study on Subway’s Response to Technological Unemployment

1. Introduction

1.1 Background Information

DeLuca and Peter Buck founded Subway in 1965; it has grown to be the world’s largest submarine sandwich chain with over a hundred countries (Subway, 2023). Famous for its “build-your-own” arc concept, Subway offers customers a variety of healthy additives to their orders and has developed an alternative version of fast food. Promising freshness and transparency, Subway serves a wide variety of made-to-order sandwiches, wraps, and salads. Besides its influence on cuisine, the brand is well-known for its unique yellow and green logo, community involvement, and commitment to providing healthy choices in fast food (Roncha and Radclyffe-Thomas, 2016).

1.2 Type, Sector, and Size

Fast-food company Subway is a privately held franchise. It is a QSR. Subway is a well-established brand with thousands of locations across the world, which makes it one of the largest fast-food chains in existence. The decentralized franchise model involves a number of different operations in several regions and markets (Subway, 2023).

1.3 Main Products/Services Provided

Subway is well-known for its sandwiches and salads that are made to order. The main products are different fresh and customizable submarine sandwiches, wraps, and salads. The brand is characterized by a focus on healthier choices, with fresh vegetables and lean protein options. Subway also offers other products, including cookies, drinks, and sides (Subway, 2023).

1.4 Main Customers

The primary customer segment of Subway consists of customers who want convenient, personalized meals. However, health-conscious consumers in search of substitutes for conventional fast food are attracted by the brand. Subway’s ever-varied menu appeals to taste and satisfies different dietary needs, resulting in wide popularity. The addressee market includes students, young professionals, and whoever wants to eat fast food but at the same time be healthy (Subway, 2023).

2. Literature Review: The Development of Technological Unemployment

2.1 Introduction

Over time, technological unemployment increased as a result of automation and advanced technologies taking away from human labor. This literature review tracks its beginning, evolution, and occupational outcomes studied via pertinent peer-reviewed articles such as the seminal paper by Frey & Osborne (2017), plus trade press and authoritative sources.

2.2 Origins and Historical Evolution

The roots of technological unemployment can be traced back to the Industrial Revolution. However, as mechanization led to the displacement of manual workers, job replacement became a worry. In the early 19th century, the Luddite movement expressed protest against the mechanization of textile production, which manifested opposition to technological unemployment. The word itself came into prominence during the mid-20th century, noting the expanding role that automation had begun to play. The emergence of the digital era has brought about an unparalleled technological revolution, transforming industries and restructuring work. In this light, scholars and thought leaders have delved into an intimate connection between technology and employment. This paper details core observations from refereed research by Brynjolfsson and McAfee (2014), Autor (2015), Dorn & Hanson and Chui et al. (2016)

2.3 Peer-Reviewed Insights

The paper by Frey and Osborne (2017), “The Future of Employment,” has been a turning point. Their study focused on the automation vulnerability of different occupations and calculated that approximately 47% of jobs in the US were at risk. This paper established a framework for exploring the possible consequences of future technological innovations, identifying different types of employment according to their susceptibility to automation. However, in “The Second Machine Age,” Brynjolfsson and McAfee (2014) focus on the rapid acceleration of technological change that has a profound influence on the workforce. The technology works as a catalyst for increased productivity but also contributes to widening inequality of income and replacing some jobs.

2.4 Trade Press and Authoritative Sources

HBR as a reliable provider of expert opinions on the emerging changes in work. Articles like “Rethinking the ‘F’ Word: When it comes to jobs, do we have a reason to fear the future?’ contain insightful views on technology and employment (Flanagan, 2007). The knowledge presented in HBR helps to make informed discussions on the future of work and the possible dangers that technological developments can cause. In addition, “The Onrushing Wave,” published in The Economist, addresses the continuing momentum of automation and its impacts on business sectors and policymakers. This paper discusses tactics for coping with technological unemployment. The economists ‘Economist’s analyses shed macroeconomic light on a global image of technological disruption and advise policymakers to make proper decisions concerning responses.

Traditional reports from the WEF are considered a valid source of information about future employees; for instance, “The Future of Jobs Report.” It is reflected through these reports showcasing the competencies required when technology advances and gauges how jobs might be replaced (World Economic Forum, 2020). With its contributions, WEF helps establish a collaborative description of the developing landscape related to employment on an international level.

2.5 Synthesis, Analysis, and Emerging Trends

The literature shows that, with regard to the transformational aspect of technology on employment, there is a consensus. The study by Frey and Osborne (2017) set off a trend in research that underscored the need for aggressive adaptation. The peer-reviewed papers and authoritative sources highlight the intricacies of technological unemployment, which are industry or nation-specific. Finally, Cords and Prettner (2022) offer a modern perspective. In their research, they evaluate the changing scenery, calling for responsive policies to prevent undesirable outcomes. The disparity between their findings and those of Frey and Osborne (2017) provides a more nuanced analysis of the issue of technological unemployment.

In summary, this literature review pinpoints the background, critical studies, and current approaches to technological unemployment. Synthesizing peer-reviewed articles, trade press insights, and authoritative sources assists in comprehending the diversity of this phenomenon. During the process of managing the fourth industrial revolution, guided policy choices and prudent change management are essential for coping with technological unemployment.

3. Navigating the Technological Landscape: Subway Case Study amid Automation

The world of work is beset by the technological revolution, which has brought up concerns regarding technologically motivated unemployment. Here, we examine the use of Frey and Osborne’s findings in Subway – a worldwide fast-food corporation cleaning-out jobs that are high risk (> 70%). More importantly, a comparison to more recent studies by Cords and Prettner (2022) provides insight into the ever-changing discourse of technological unemployment. At last, we wonder if the rise of automation should be viewed as an overall positive factor for society.

3.1 Scenario: Navigating the High-Risk Terrain

In the low-impact scenario that is hypothesized, jobs with high risk (> 70%) are most likely to be automatable, according to Frey and Osborne’s predictive framework. Subway has the largest franchise network and relies on its diverse workforce of entry-level employees and managers. Meanwhile, the scenario used invites a detailed analysis of possible effects on identified high-risk roles within the Subway organization.

3.2 Evaluate Impact on Subway: Story of Automation and Adjustment

Using Frey and Osborne (2017) results, applying Subway requires defining the roles within the management of which are high-risk work. Automation due to robotic advancements might threaten front-line jobs like order takers and food preparers. Currently, automated order kiosks and robotic kitchen assistants can streamline operations but may cause the replacement of existing job roles.

Nevertheless, managerial positions are less automatization-prone in Subway because they imply complicated decision-making and interpersonal skills. According to Frey and Osborne (2017), the classification of jobs based on their susceptibility gives Subway the ability to make strategies aimed at reallocating resources appropriately, investing in upskilling, and developing a workforce resistant to technological disturbances.

3.3 Comparative Analysis with Cords and Prettner (2022)

In order to deepen our grasp of the dynamic panorama, a comparison with recent research by Cords and Prettner (2022) is crucial. Cords and Prettner’s work may indicate recent estimates owing to the changing nature of technology. The findings from their research provide a semblance of comparison, providing Subway with more significant points on the possible path of technological redundancy.

Cords and Prettner (2022) could offer a more subtle approach to how Subway might manage itself in an age of automation. In other words, their work may provide insights into future technologies in the works, possible mitigations of such high-tech products, and some innovative methods for reducing unemployed workers. The comparative analysis helps Subway improve its adaptive strategies so that they are consistent with the most recent findings.

3.4 Technological Unemployment: A Net Benefit to Society?

The pivotal question remains: What technological unemployment is beneficial to society? The solution is inherently linked to how businesses and societies will respond to the threats and opportunities posed by automation. For this inquiry, Subway’s case serves as a microcosm. On the level of society, automation can ensure efficiency by reducing costs and promoting innovation. On the other hand, a disruption of the workforce has issues linked to unemployment and growing inequality in earnings that derive from weak social welfare systems. As an international corporation, Subway has to play a role in the welfare of society.

The strategic response of Subway to automation will define the story. Should Subway take a holistic approach including reskilling initiatives, job reallocations and retaining skilled human working force then the threats posed by automation to high-risk jobs could be eliminated. In this case, the challenge of technological unemployment could be considered a transition problem rather than an ongoing evil. The question of whether technological unemployment is a net gain for society depends on the steps that business such as Subway take. The path that Subway will take does not only determine its own future but is also one of the keys to creating tomorrow’s world, in which technology and a healthy society go hand-in-hand.

4. Conclusion

In conclusion, this study of technological unemployment by using the case of Subway. Factoring Frey and Osborne’s results, key areas of threats emerged in risk occupations leading to tactical deliberation for adaptation. Cords and Prettner’s insights helped to make comparative analysis forward-looking. In the end, technological unemployment is a positive net contribution to society if companies react positively. The focus on reskilling, job relocation and social welfare from Subway can thus alleviate technological challenges into opportunities such that innovation exists in conjunction with societal prosperity through the changing environment of work.

References

Arntz, M., Gregory, T., & Zierahn, U. (2016). The risk of automation for jobs in OECD countries: A comparative analysis.

Autor, D. H. (2015). Why are there still so many jobs? The history and future of workplace automation. Journal of economic perspectives29(3), 3-30.

Bessen, J. (2019). Automation and jobs: When technology boosts employment. Economic Policy34(100), 589-626.

Brynjolfsson, E., & McAfee, A. (2014). The second machine age: Work, progress, and prosperity in a time of brilliant technologies. WW Norton & Company.

Chui, M., Manyika, J., & Miremadi, M. (2016). Where machines could replace humans-and where they can’t (yet).

Cords, D., & Prettner, K. (2022). Technological unemployment revisited: automation in a search and matching framework. Oxford Economic Papers74(1), 115-135.

Flanagan, M. (2007). Rethinking the F word: A review of activist art on the Internet.

Frey, C. B., & Osborne, M. A. (2017). The future of employment: How susceptible are jobs to computerisation?. Technological forecasting and social change114, 254-280.

Roncha, A. and Radclyffe-Thomas, N., 2016. How TOMS’“one day without shoes” campaign brings stakeholders together and co-creates value for the brand using Instagram as a platform. Journal of Fashion Marketing and Management20(3), pp.300-321.

Subway, 2023. https://www.subway.com/en-AU/

World Economic Forum, J. (2020). The future of jobs report 2020. Retrieved from Geneva.

 

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