This is a good way to do it, but you could also use Avidemux, which is GUI software and makes it easier to add useful filters to the processing chain.

Also, I don't like merging subtitles into the video. I prefer to put them with the original video and audio tracks in a container which can handle them separately such as mp4 or mkv. I use command-line tools to do that: MP4Box / mkvtoolnix.