Report on Business Culture
and Strategy
Candidate No.:
Candidate Name :
Tutor :
Nov 2th, 2015
Central South University of Forestry and Technology
PEST analysis
PEST analysis include social factor, technology factor, economic factor and legal factor, which is used to analyze the influence of the external environment to the organization. In this case, social factor, for example, J D Wetherspoon sell a wide range of real ale relatively low prices. Wide range can meet customers’ need well and low price will add the conversion cost of customers which promote sales. Other social factor is that J D Wetherspoon serve food which is available all day and sold at relatively cheap prices.
Technology factor has limited influence to J D. Free WI-FI and TV screen provide convenience for customers.
Currency condition and national income are major element of economic factor. In this case, in 2004 it remove price incentives to drink larger measures of spirits and reduced the amount of alcohol in its cocktail pitchers which has an adverse effect on sales of spirits and cocktails. If national income increase, citizen’ consumption will increase.
Legal factors have limited effect to company as much as technology factors. In this case, tied house system had been broken by ruling from the MMC which severely limited the number of pubs which a brewer could operate. Other hand, government is concerning about binge drinking and the consequent anti- social behavior. It may reduce sales.
Political factor is MMC and binge drinking. In case, tied house system had been broken by a ruling from the MMC which limited the number of pubs.
Increasing public concern about binge drinking and the consequent anti-social behavior. These impact the sale.
SWOT analysis
In SWOT analyse, S and W belong interior factors and external factor include W and T. Advantage of strength are reflected following circumstances. Training courses, area meetings and shift management meetings form part of the working week which will not encroach into staff leisure time. It can improve staff’ loyalty, and competitor do not take them. The other circumstances is that it is committed to lifelong training and it provides staff with opportunities to gain relevant qualifications such as those offered by British Institute of Innkeeping. These can keep staff and avoid outstanding employee quitting.
Weakness are reflected these aspect. Music and TV programmes. J D Wetherspoon do not play music and show TV programmes which reduce its allure so that competitive advantages is lower than competitors.
About opportunities, J D wetherspoon has developed the ‘Lloyds Number One Bar’ brand and greatly increased the number of outlets. New product can attract attention of customers. If the new product’s quality is good, J D’s sales will future new outlets will be divided between the J D wetherspoon and Lloyds No1 Bar brand. Reasonable market segments will expand sales.
Threat are from concern about binge drinking and the consequent anti-social behavior. It will reduce sales seriously. Even more, due to opportunities
are less, J D must be impacted from environment, advantages are probably to be covered by threat. Apart from these point, there also are some competitors in pubs industries.
Guidelines
In the earlier stage of planning, company should use SWOT analysis to compare with competitors so that senior managers can plan activities and distribute resource well. SWOT analysis must be specific and avoid ambiguous areas. The analysis also should be linked with competition and should not be long and complex. SWOT analysis is a kind of subjective and short term in its nature, so it can?t use to analysis long-term situation.
The analysis is changing. S and W is familiar with O and T each other. Former opportunities and threat is reflected by present strength and weakness. J D Wetherspoon also needs to make plan for anticipated changes so that be fully prepared to meet them.
S and W is interior factor. O and T is external factor. Before using SWOT analysis, managers should refer some relative material. J D Wetherspoon needs to control their SWOT, specially at the times of crisis, and deal with the changes that have already occurred.
Value and assumption
culture is the outcome of the shared experiences arising from an organisation's attempts to resolve fundamental problems of adapting to the external world and achieving internal intergration and consitency. Culture
is something every organisation has, but it is not a concrete entity. Value and assumption belongs the level of culture.
Value is high-profile symbol include strategy, misson, statement and goals. In this case, as well as ensuring that the site was big enough, this strategy of organic growth enabled the company to choose locations which it considered suitable for pubs of its type. Statement also has been mentioned in case, Share value act as a quite to behavior and ways of dealing with anxiety. J D Wetherspoon has a ‘lifestyle guarantee’ which aims to give managers time for a life outside work, which can reduce staff’ pressure.
Assumption is low-profile symbol, which is reflected by staff or audience how to feel the rules. It is not visible. Culture elements of this level is called as unspoken rules and is rarely discussed within the organization. They direct the way events and actions are perceived and interpreted by the organization. In this case, J D Wetherspoon create a quarter of the space in each establishment is non-smoking.
Model of organisation culture
The model of organizational culture is Terrence Deal and Allan Kennedy, which based on how quickly organizations receive or strategies and the level of risk that they take. It stated that these two factors gave rise to four generic types of cultures, which they called tough guy/macho culture, work hard/play hard culture, bet-the-company culture and process culture. J D is work hard/play hard culture, because in Tim Martin’s company, the staff work hard every day, and then they will get a holiday for several days and the company also work to the food industry. This is typical in large organisations that