Business Culture and Strategy

Student name Course human subroutineivity argument line grow and outline SCN Outcome No. 1-5 Group nark name Report for billet Cultural & Strategy of J D Wetherspoon keep go with Date Content I. Introduction 2 II. Discussion 2 air division 1 External Environment 2 SPELT psycho epitome2 plodding analysis 4 The centering design on how to conduct a grind away analysis5 arm 2 Organization civilization6 Business civilisation sh atomic progeny 18d out apprizes & shinen for apt(p) presumptuousness 6 Four examples for establishment glossiness7 destination influences arrangement port 8 A nonher formation polish for J D Wetherspoon 9 Section 3 Business Strategy9 Business schema definition and types10Business system for J D Wetherspoon and benefits 11 e superior deuce dissimilar strategies how to excise the behaviors12 Some grammatical constituents changing melody system 13 Business dodge and strategic choice14 The key issues had to take write up in sanc tify to manage the schema15 Section 4 transpose16 spend forces for channelize study the diverseness reason16 contain one genes and definition 17 The impelling wariness role for kind18 The advice to financial aid the lodge analysis the variegate19 III. Conclusion 20 IV. Recommendation 20 V. Reference 21 I. Introduction This repot institute out talk everywhere the furrow culture and strategy of the JD Wetherspoon.At first, the changes in the external surroundings which J D Wetherspoon has set about since it was found in 1979 be analyzed. The punt is clear the race between organization culture and organization behavior. The trine is that comp atomic number 18 and definition cl too soon the strategies of the company so that they gouge affair to deal with the change in the future and how management after go away get by with change will be aware as fol diminished-down. II. Discussion Section 1 External purlieu 1. The examples of social, technological, fr ugal, political and legal factors which learn impact the way the organization has be bringd. Socio-cultural factor The higher style will augment the demand of the confuseing. In 1980s, legion(predicate) great deal wanted to take a leak a quite place for family gather and friends playing or conversation. This changing brought great opportunities to public houses development (Quain, 2009). ?The kinds of public cheer places be limited. The mo nonone restaurant set up non take ining the step of new age. This is in any case a groovy prospect for pubs development (Quain, 2009). Political factor ?The government insurance not encourages the pubs. The government not encourages the pubs so that the purchase get ones decreased and the hurt change magnitude (Quain, 2009). The government prohibits drinking for particular crowd. The government release insurance policy that prohibits drinking for particular crowd such as teenager and driver so that the guests of pubs ar obvious reduce (Quain, 2009). scotch factor ?The supplier cast up usu everyy have-to doe withs the guest quantity. During 2002-2004, super commercializes began air current astraying drinks at loss-leader prices and the premium larger which brought affect for the sale price and the commercialize of the pubs (Quain, 2009). ?The grocery place appears to be over-supplied. The retail licensing food trade had change to the changes in the tied house ystem and other retail pub chains had been developing their demarcation. Then the market appears to be over-supplied (Quain, 2009). Legal factor ?A legal born will change pubs office staff. The traditional affiliation between the brewing companies and pubs k at one fourth dimension as the tie house dodge had been cut by beer order in 1989. Pubs gaind a genuine change (Quain, 2009). ?The ruling from the Monopolies and Mergers Commission. Because the ruling from the Monopolies and Mergers Commission which severely limited the number of pubs which a beer maker could operate, this is too a capit eithery changes in the pubs market (Quain, 2009). Technological factor The incompatible run is always a determination to win the market. Pubs have a public discussion system to ensure that the customer brush off not smell the chain reactor and adapted toilet for any customer plain the disabilities (Quain, 2009). ?Improve the beverage alcohol to contendnt the market. In 2004, the pubs reduce the bill of alcohol in its cocktail pitchers and create the new product which is beverage with alcohol. This is a break-dance way to developing the pubs well (Quain, 2009). 2. Using a SWOT analysis to explain the relationship between JD Wetherspoon and the environment it is facing during the early days of the twenty-first century.Strength ?People are its best asset The conciliative training and the high treatment for stuff is also provide many opportunities so that they are build a maven of loyalty (Wetherspoon, 2009). ?The wear product quality The pubs of J D Wetherspoon sell a childlike range of real ale beers at relatively low price and keen quality wine. This is obtaind the customer satisfaction (Wetherspoon, 2009). Weakness ?Single product groundwork not satisfied to a greater extent customer The pubs precisely offer the drink and beverage, provided the other pubs have some list for breakfast or dinner. Then many customers had to choice the other pubs (Wetherspoon, 2009). No harmony and no TV show JD Wetherspoon pubs did not show World Cup football game and gross sales suffered as a result in 2002. And there are also no medicinal drug player be offered. This situation leads to many customers choice the other pubs (Wetherspoon, 2009). Opportunity ?Merge the Lloyds pubs and shoot their management emolument In 2000, it acquire the Lloyds pub chain consisting of 10 pubs so that the JD Wetherspoon acquire many dissimilar menu from it and this action as a stronger entertainm ent section bring a bigger market to the pubs (Wetherspoon, 2009). Enter into a new industry development JD Wetherspoon began to developing budget hotel appointment known as Wetherlodges which have bar facilities attached to them. This is a new opportunity to develop JD Wetherspoon and accumulate competition advantage (Wetherspoon, 2009). Threat ?The supplier for customer improver During 2002-2004, supermarkets began selling drinks at loss-leader prices and the premium larger which brought negative influences to JD Wetherspoon in the intensified competition (Wetherspoon, 2009). ?The market appears to be over-supplied.The overall result has been an increase in the number of pubs, and and so the JD wertherspoon must adapted the over-supplied market (Wetherspoon, 2009). 3. attain a set of guidelines that the management of JD Wetherspoon should use on how to conduct a SWOT analysis such as one you have simply on a lower floortaken. Use the perfect stave management as strength to hoodwink the opportunity and head off the threat is most important in the management. ?To avoid threat influence ?Threat In this instance, the retail market had adapted to the changes in the 21st century so that many pubs are look which result the over-supplied market.At the like time the supermarket began selling drinking and has a low price make more and more people drinking at home. Then, there was increasing public and government concern about bout drinking that not encourages the pubs. ?Use strength to avoid Under the pubs market suffers a big shock, the company uses the perfect lag management to affect that the sales and the profit growth have also slowed down and the circumstances price in the stock market is also fall. ?To catch the opportunityThen under the perfect staff management, the company review the operations and change the weakness so that it acquire the Lloyds pubs in 2000, at the same time the company use the stronger strength to catch the opportunity that they began to developing budget hotel accommodation known as Wetherlodges which have bar facilities attached to them. The company acquires the Lloyds NO 1 bar concept in the hotel and developing the pubs at the same time so that the company green goddess adequate the market changing. therefore, the company can development well and catch more profit from 2 different fields.Section 2 Organization culture 1. Explain the organization culture in JD Wetherspoon in terms of shared values and taken for granted assumptions in an organization. You should illustrate your explanation with ONE example of each element from the case study. For each example, you should say why it illustrates this aspect of organisational culture. ? appropriate values People are best asset is shared value in J D Wetherspoon. In JD Wetherspoon, the staff involvement and intercourse is a good shared value. They kept in touch with every week newsletters, a monthly company video and by publicizing the proceed ing of Board meetings.The company has a great importance on the sense of hearing to and acting on and feedback from members of staff on all aspects of the pipeline. Staffs can discuss the issues which are provide in Board meeting and are rewarded for their good suggestions. Each staff is like the manager has a common goal, so all the members in the company are work hard to achieve the share value. ?Take for granted assumptions Moon under water is an assumption for J D Wetherspoon. In JD Wetherspoons, they do not play music or show TV programmes to keep silence.And at least a quarter of the space in each establishment is non-smoking, and it has each as a ventilation system which aims to ensure that customers do not date smelling of smoke. As the company maxim is cleanliness, beer, services and maintenance, all the activity is order to ensure that the members of the company suitable the organization culture intangible and create a new style of pubs to bring their customers more sa tisfactions. 2. Explain the type of culture that JD Wetherspoon has, using a recognized amaze of organizational culture. Give examples to fullify why you have chosen this type of culture.harmonize to Charles Handys theory, there are 4 types of organizational cultures which are separately effect culture, role culture, task culture, and person culture. In this case study, JD Wetherspoon has the supply culture. ?Power culture It is fairly common, particularly in economies that are growing and rely heavily on the smaller organizations to provide the economic foundation. (SQA, 2004) ? The reason to choice this culture is definite explain as get married In this case, the JD Wetherspoon has a focal person who the founder is named Tim Martin, when the company was a small organization.He is the key to sits in the whole organization centre, surrounded by ever widening circles of intimates and influence. Tim Martin had all the powers and make all the decisions and his ad hominem busines s views, philosophy and values formed the companys organizational culture. His notional pub called Moon under Water, he want to offered brassy beer, good conversation and solid architecture. As a result, the company motto of J D Wetherspoon is cleanliness, beer, service and maintenance. Therefore, the destiny of the company was more often than not dependent on Tim Martins personal capability as the power culture characteristics. . Using the type of culture you identified in part 2 above, what is the relationship between organizational culture and organizational behavior in JD Wetherspoon. Power culture always has a direct impact on organizational behavior. The destiny of the company was largely dependent on Tim Martins personal capability as the power culture characteristics as keep. ?The pub called Moon under Water by Tim Martin willingness With the power culture, the pubs sell good quality wine and real ale beer at relatively low price, and do not play music or show TV program mes to keep silence. ?J D Wetherspoon had a policy of expansionWith the culture, all the melodic line and facilities of the pubs must be provided by Tim Martins required. ?Tim Martin said the People are best asset With power culture, the company makes the staff involvement and communication. Staffs can discuss the issues which are provided in Board meetings. ?The staff belief of the power person With this culture, he had all the powers and made all the decision. There were 95% of staff were happy to support the Martins decision in the pubs. Then, the relationship between organizational culture and organizational behavior is consistency 4.To what achievement would the management approach in JD Wetherspoon be different if the company had take a different culture? Again, make use of the same framework that you used in part 2 above. If the JD Wetherspoon had adapted to the task culture the management approach will be different as companion BehaviorsPower cultureTask culture Power takeTim Martin had all the powers and made all the decisions. Team possess the autonomy and decision-making power. There is a high risk to make a bad decision. Resource allocationAll members of the organization use the common resource to operate.Equipped with resources sightly to each team so that the resource lack. Business goals achievementTim Martin personal business views affected all the staff. Each team leader has a different business views and required for the pubs operate. Staff willingnessThey are co-ordinate well and have a common willingness such as 95% were happy for the pubs to be used in Martins No campaign. They are co-ordinate only present in each team, and each team has a different willingness. Each team like an independent organization not includes all the staff in the company. Section3 Business strategy . Briefly explain four possible strategies which organization whitethorn adopt. In each case, indicate the environment which would be appropriate for the strateg y concerned. Strategy is the direction and scope of an organization over the yearn-term which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the involve of markets and to fulfill stakeh hoaryer expectations which include overall Low-Cost supplier Strategies, Broad differentiation strategy, Best-cost Provider Strategies and Focus strategy (Chen, 2009). Overall Low-Cost Provider Strategies Overall Low-cost provider strategies are make achievement of meaningful lower costs than rivals the theme of firmlys strategy which in the pubs industry. And the important is that find approaches to achieve a cost advantage in ways difficult for rivals to copy or match. And the low-cost leadership means low overall costs, not just low manufacturing or production costs. ?The external environment to use this strategyWhen the market price competition is vigorous and product is standardized or readily available from many su ppliers or there are a few(prenominal) ways to achieve differentiation and the buyers are large and have fundamental bargaining power (Chen, 2009). ?Broad preeminence strategy Broad Differentiation strategy is find ways to differentiate that create value for buyers and are not easily matched or speciously copied by rivals, and not expending more to achieve differentiation than the price premium that can be charged. ?The external environment to use this strategyNeed to value and gratify customers when buyer call for and uses are diverse. At the same time, few rivals are succeeding(a) a similar differentiation approach and technological change and product innovation is fast-paced (Chen, 2009). ?Best-cost Provider Strategies Best-cost Provider Strategies are combining a strategic emphasis on low-cost with a strategic emphasis on differentiation. Under this strategy, company makes an upscale product at a lower cost to give customers more value for the money. ?The external envir onment to use this strategy It need to the company have a large scale and high hard operating with a coarse ime. And the decision maker have a intelligibly strategy mind to achieve the objectives (Chen, 2009). ?Focus Strategy Focus strategy involve change state economic aid on a narrow piece of the total market and choose a market niche where buyers have distinctive preferences, extra requirements, or unique take to develop unique capabilities to serve needs of target buyer segment. ?The external environment to use this strategy It has a geographic uniqueness and specialized requirements in using product or service, or when the company only need to special product attri yetes to assembling niche buyers (Chen, 2009). 2.Which strategy did J D Wetherspoon appear to be quest during the 1980s and 1990s? Justify your decision and identify four benefits that J D Wetherspoon gained from this strategy. During the 1980s and 1990s J D Wetherspoon adopted the gigantic differentiation strategy. Justify this decision Through external environment analysis when J D Wetherspoon entered into the pubs market, peoples consideration has changed from drinking to socializing when they go to pubs. ?In order to suitable to this change, it developed unique social-bars to execute the changing of customers needs which include do not play music or show TV programs. Each pub has a ventilation system which aims to ensure that customers do not leave smelling of smoke and the pubs also pay attention to the toilets even for customer with disabilities. Due to the inhering analysis is that there is a unique and perfect people policy which people is best asset. So this is a broad differentiation strategy. bring out four benefits The benefits that JD Wetherspoon gained from this strategy as sustains ? This strategy brought JD Wetherspoon an opportunity to quickly smash itself in the pubs market.In 1992, JD Wetherspoon only consisted of a chain of 44 pubs, while it now has more tha n 700 pubs. ?Large number of customers brought large fare of cash flows and over 50% of the finance for the new developments came from the cash generated by the business. ?Improve the market value in a period. In 2002, about 10 years after flotation, its share price rose to more than ten time its original value. ?It makes the company have a large competition advantage. It winnerfully attracted large numbers of customers to set up themselves brand and customer loyalty. . J D Wetherspoon seems to be following a different strategy during the 21st century from the cone that it adopted during the 1980s and 1990s. Compare two different strategies with respect to the influence that each had on the behaviour of the organization. J D Wetherspoon has a different strategy during the 21st century and during the 1980s and 1990s. The engagement will be compared as follow Different strategies will lead to different management styles. ChangesOld strategy (During the 1980s and 1990s)New strategy (the 21st century)Broad Differentiation strategyFocus Differentiation strategy Organization Behaviors ?They sell real ale beers and good quality wine. ?They do not play music or show TV programmers. ?All day serve food provide and sold cheap prices ?Removed price incentives to drink larger measures of spirits and reduced the amount of alcohol. ?Some pubs now show televised football. ?Serve breakfast and open anterior in the morning before normal licensing hours begin at 1100 a. m. 4. Assess the factors that J D Wetherspoon had to consider when changing its business strategy. match to analysis the JD Wetherspoon growth, it had to change the strategy to suitable the market when it faces the factors as follow. ?Socio-cultural factor ?The peoples willingness is increasing With the society developing, the new style is instead of the old style entertainment places. The monotone restaurant can not following the step of new age. ?Political factor ?The government policy control There was in creasing government concern about binge drinking. Pubs cannot be seen to be encouraging this state of affairs as it brings them bad publicity. ?Economic factor The supplier increase During 2002-2004, supermarkets began selling drinks at loss-leader prices and the premium larger. This made it difficult for pubs to compete on price and encouraged drinking at home. ?The market appears to be over-supplied. The overall result has been an increase in the number of pubs, and then the market appears to be over-supplied. ?Weakness ?Single provide can not satisfied customer The pubs only offer the drink and beverage, but the other pubs have some list for breakfast or dinner. JD Wetherspoon pubs did not show TV program and play music. 5.Explain how the experience of J D Wetherspoon illustrates the connection between the terms business strategy and strategic choice. The business strategy is including Overall Low-Cost Provider Strategies, Broad Differentiation strategy, Best-cost Provider Strate gies and Focus strategy. But the JD Wertherspoon is choice the focus differentiation strategy in 21st century. And why the company choice this strategy is clearly as follow External factors ?The government policy limited the pubs development There was increasing government concern about binge drinking and pubs cannot be seen to be encouraging.It must be change the strategy that it removed price incentives to drink larger measures of spirits and reduced the amount of alcohol in its cocktail pitchers in 2004. ?The supplier increase affect the competition During 2002-2004, supermarkets began selling drinks at loss-leader prices and the premium larger. Then the company competition position was reduced so that the strategy needs to change. Most pubs now have a devote family dining area where children and adults can eat together. Internal factors ?Single provide can not satisfied customer The pubs only offer the drink, but the other pubs have some list for breakfast or dinner.Then the st rategy must be changed that pubs now serve breakfast and open front in the morning before normal licensing hours begin at 11. 00 a. m. ?No TV program and no music can not follow the market JD Wetherspoon pubs did not show World Cup football and sales suffered as a result in 2002. And there are also no music player be offered. Then the company needs to choice the new strategy to attract the customers. So in 2004 the pubs stand out to show televised football. 6. Describe the key issues that J D Wetherspoon has had to take flyer of in order to manage its business strategy.With many factors change the business strategy must be change to ensure that the JD Wertherspoon can suitable the market and win the competition. There are two key issues that it has had to take account of such as ? Clear the objective In order to complete the new strategy perfect, it need to the company have a large scale and high hard operating with a long time and the decision maker must have a clearly strategy mind. ?Avoid risk The company must pay attention to the below points a best cost provider may get squzzed between strategies of firms using low-cost and differentiation strategies.And low-cost leaders may be able to siphon customers away with a lower price. And high-end differentiators may be able to steal customers away with better product attributes. Section 4 Change 1. With reference to force for change, explain why the strategy of JD Wetherspoon changed over time. The aspects of force for change theory include customer expectations, technology, competition, legislation, economy. The reason for the strategy changed over time is described as follow ? Customer expectations In 1980s, peoples consideration changed a lot and many people wanted to have a quite suitable place.So this changing brought considerable opportunities to JD Wetherspoon development. But in the 21st century more and more people hobby to drinking at home or require a higher place to satisfy themselves. Then the s trategy must be change to gain the demand and attract more customers. ?Technological factor Binge drinking had brought some anti-social behaviors, the pubs are not encouraged by government. The JD Wetherspoon had to reduce the amount of alcohol in its cocktail pitchers. And improve the promotion so that the profit is decrease a lot. Competition By the start of the 21st century, JD Wertherspoon was facing much more competition, then the market now appears to be over-supplied. The JD Wetherspoon pubs did not play music and no TV programmer leads to many customers choice the other pubs which have showed the televised football. ?Legislation According the ruling from the Monopolies and Mergers Commission which severely limited the number of pubs which a brewer could operate, JD Wetherspoon acquired a better opportunity as a retailer debut into the pub market. ?EconomyDuring 2002-2004, supermarkets began selling drinks at loss-leader prices and the premium larger. This made it difficult for pubs to compete on price and encouraged drinking at home, which brought change for the sale price and the market of the JD Wetherspoon. Therefore, the strategy must be changed over time to catch the opportunity and avoid the threat to ensure that the company can own the competition advantage to run well in the market. 2. Choose ONE of the following stakeholder power business goals organization culture business ethics social responsibility.Explain how the factor you have chosen could lead to change in JD Wetherspoon. Organization culture leads to change in JD Wertherspoon. ?Reason for chose The culture of the organization is created by organization members behave toward each other and approach their work. But the organization can not exist well then the culture will be not keeping balance so that the current culture can not be maintained. So the company needs to change in the future. ?Reason to lead to change In this case, Tim Martin as the founder of JD Wertherspoon has been fu nctional on twenty five years since 2004.But Tim Martin gave up day-to-day control in 2004 to become non-executive chairman working two days a week. With the power culture, he was the key to sits in the whole organization centre and had all the powers and made all the decisions and his personal business views, philosophy and values formed the companys organizational culture. To this power culture, if the center of the company changed the culture may be faced influence. At the same time the JD Wertherspoon faced a lot of problems and market competitors lead to the operating income maintain down fast.Therefore, with the destabilization culture, the strategy must be changed to ensure that the company suitable the market well and acquire more competitor advantage to win the competition. 3. Explain the role that the management of JDW could play in dealing with the changes that have occurred during the period since the year 2000. According to the research the management has five roles to be played in the company, which is including director, expertise, negotiator, educator and participator. Management role is to decide on and implement a suitable change strategy.In the case study, the management roles of JD Wertherspoon seemed includes director, educator and participator. ?Director role Managers of JD Wetherspoon can use all the powers to impose changes and make a decision, which would help JD Wetherspoon quickly implement the changes and reduce the change risks. ?Educator role The management educates the staff to know involvement and communication. It is a good example to help them understand and accept the changes. The suitable education is always motivating the staff and improves their power use to face change. ?Participator roleParticipator role is that the manager gives staff regain to discuss the issues which refer from the board meeting. So it can help the mangers better implement the changes and help the employees of JD Wetherspoon know how to resist the c hange. The three roles are also continued to affect the future of JD Wetherspoon. 4. What advice would give to the management of JD Wetherspoon to help them analyze a change situation and to overcome any tube to change. Use Lewins Change Model (Chen, 2009) to analyze the change situation is advised to the management of JD Wetherspoon.There are three steps to analyze change situation and to overcome any resistance to change are as follow ? Unfreezing The company must create a sense of need for the change, and establishes sense of urgency in the members of the JD Wetherspoon. Due to many competitors had been come into the pubs market, the management of the JD Wetherspoon need to acquire the experience from guiding coalition. At the same time, the company needs to create a vision and communicate the vision with the staff to minimizing resistance to the change. ?ChangingWhen the changing is occurred in people, tasks, structure, and technology, the manager need to empower people to act on vision and create short-term wins and consolidates improvements to produce further change in the end. ?Reinforcing When the changing is end, the company need to reinforcing the change and judging success to modifications so that look for some new institutionalize approaches III. Conclusion The changes in the external environment which J D Wetherspoon has faced since it was found in 1979 have analyzed and the relationship between organization culture and organization behavior are considered clearly.The report also evaluates the business strategies which J D Wetherspoon adopted during the period covered by the case study. Many strategies have been compared clearly and specifically, combined with the strategies to deal with the change of the company and consider how management can cope with change. IV. Recommendation Due to the change of the pubs industry, the recommendation for the JD Wetherspoon is that use short time to investigation what is the market need and use the strategy t o plan to change the company, but need to ensure that the people policy is continue.And analysis the competition advantage of the other pubs and hotel to combine the management of two industries to create the new strategy to make differentiation. V. 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