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1、IntroductionThe Company was founded in 1979 by Tim Martin who opened his first J D Wetherspoons pub and become well-known organization in UK which offers cheap beer, good conversation and solid architecture., Marlers Bar, at Colney Hatch Lane in London. Many of the other early J D Wetherspoons pubs
2、were also in the same part of Haringey. Martin took the name of the chain J D Wetherspoons from an old schoolteacher. And J D Wetherspoons became a plc in 1992 at which time it consisted of a chain of 44 pubs.Discussion:Section 1: External environmentQuestion 1: Give examples of social, technologica
3、l, economic, political and legal factors which have affected the way it has behaved. social factors：The value of market: Research estimates that the UK beer Market is the main Beverages market which was worth 52.62bn at retail selling prices (rsp) in 2007. In comparison, the U.Ks soft drink market i
4、s estimated at having a market worth of only 13 billion. (, 2008)Pub culture: Social life in the UK for a high percentage of the population revolves around a public house; often a community will have a local pub that will form a natural hub for the inhabitants of its immediate area. More often than
5、not there will be organised events several times a month ranging from a pub quiz to a full blown excursion. Quite often the public house will have sports teams, usually playing traditional pub games such as pool and darts; these team will most times enter into some sort of league on a local level al
6、though some sports have nationwide pub leagues. (Buck, 2008) Political factors: Promotion policies set by government: These include specific regulation of “Tax Rate Reduction”, the promotion style of the pub as a vital part of Britains leisure industry and the actives involvement of the all British
7、pub and beer industry to encourage and guarantee safe and responsible drinking for consumers. (blacksacademy, 2008)The government prohibits drinking for teenager: The government release policy that prohibits drinking for teenager so as a result that the consumers of pubs are obvious reduces. (Greshe
8、s, 2008) Economic factors:Marginal benefits: Brewing and pubs contribute 28 billion to the UK economy - more than the airline, clothes retailing and broadcasting industries. Tourists and visitors to Britain make 13.2 million visits to our pubs each year, with pubs consistently on the list of positiv
9、e perceptions of the UK. The pub and brewing industry employs 540,000 people directly and 380,000 in associated trades 27 per cent of the adult population visit a pub every week. (Manifesto 2009)Economic depression: As with other segments of the marketplace, the beer industry was hurt by the economi
10、c depression of the 1970s. Ingredient and production costs for Beverages market rose to an all-time high, and U.K. per capita consumption of beer drinks dropped off for the first time in thirteen years in 1974, though only a minuscule 0.9 percent (to 31.6 gallons per capita). (Giichinese, 2006) Lega
11、l factors:Restriction on smoking: beer industry in UK have enacted bans on smoking in a great number of public pub places since the early 2000s, often in conjunction with a reduction in the proportion of the population who smoke. A 2000 Gallup poll found that 54% of UK residents supported bans on sm
12、oking. (Manifesto 2000)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 brewer could operate, this is also a capitally changes in the pubs market. Technological factorsTV application
13、In 2004, word cup football games are popular in UK. Almost every one are concern the competition situation. So applying TV equipment is essential for pub industry. It will increase the sales.Improve brewing skills: the members of brewing industry know how to plan and establish a microbrewery, brewin
14、g successfully at microbrewery level, technological ingredients for the brewing industry and preparation for brewing examinations. (Bobber, 2009)Question 2: Using a SWOT analysis, explain the relationship between J D Wetherspoon and the environment it is facing during the early years of the 21st cen
15、tury.SWOT AnalysisSWOT analysis includes strength, weakness, opportunity and threat.l Strength1. Long history of brand: Companies was found in 1979 and mainly focus on brewing industry. This makes company become specialist in this industry.2. Convenient location: The excellent location is strength o
16、f J D Wetherspoon plc. In the case study, the sites of pubs are in town and city centers, with good public transport system and convenient facilities.Weakness1. Single product: The pubs only offer the common drink and food beverage, without constantly in innovative ideas such as provide local flavou
17、r in other countries, fruit platter. Then many customers have little to this pub and to choice the other pubs.2. No Television show: pubs in J D Wetherspoon did not offer any television which can offer some program for customer as a style of entertainment. These will loss some loyalty customers, suc
18、h as football fans.l OpportunityAs a strong retailer: The traditional link between the brewing companies known as thetied house system had been broken by a ruling from the Monopolies and Mergers Commission. This had forced companies to choose between brewing and retailing. J D Wetherspoon entered th
19、e market as a retailer. It was a new company with no connections to any brewery and was able to build from scratch.Enter into a new industry development: JD Wetherspoon began to developing budget hotel accommodation known as Wetherlodges which have bar facilities attached to them. This is a new oppo
20、rtunity to develop JD Wetherspoon and accumulate competition advantage.l ThreatGovernment did not encourage binge drinking: There was increasing public and government concern about binge drinking and the consequent anti-social behaviour, particular in city centres. Pubs cannot be seen to be encourag
21、ing this state of affairs as it brings them bad publicity. Other competitors: in 2002-2004, supermarkets were allowed to sell drinks, which will divide market share together with J D Wetherspoon. This will force company to fall down price and decrease the profit. Question 3: Prepare a set of guideli
22、nes that the management of J D Wetherspoon could use on how to conduct a SWOT analysis such as one you have just undertaken. Using strength to overcome threats:Because of Government did not encourage binge drinking, so customers consumption attitudes have changed from drinking. Due to this factor, J
23、 D Wetherspoon attracts customers by convenient and comfortable circumstances with good public transport system and convenient facilities, which meets the customers successfully. This would make J D Wetherspoon become more competitive. Using strength to gain opportunities:With the help of increased
24、profit caused by high quality customer care, company decided to acquire the Lloyds pub chain consisting of 10pubs and develop budget hotel accommodation. These actions made company stranger enough to compete with the supermarkets. Section 2: Organizational cultureQuestion 1: Explain the organization
25、 culture in J D Wetherspoon in terms of “share values” and “taken for granted assumption” in an organization.Organizational culture is the personality of the organization. Culture is comprised of the assumptions, values, norms and tangible signs of organization members and their behaviors. In J D We
26、therspoon, there are two aspects of “share values” as follow: high staff participation system in JDW:There is a high staff participation system in JDW. JDW places great importance on listening to, and acting on. Feedback from members of staff on all aspects of the business. In the regular meeting, s
27、taffs are awarded for their suggestions, so staff has an easy communication with his supervisor. its clean and non-smoking environment:each of JDW pubs has a ventilation system (costing more than 100,000) which aims to ensure that customer do not leave smelling of smoke. I will use “high staff parti
28、cipation system in JDW. There is a high staff participation system in JDW. These behaviors of its employees are shared values of JDW which make the communication fast and convenient. Employees will be dedicated more to the development of the company. All above will bring high profits and large marke
29、t share and stability position in the whole industry.In J D Wetherspoon, there are two aspects of “Take-for-granted assumptions” as follow:l Ideal pub environmentIn case study, JD Wetherspoon offered cheap beer, good conversation and comfortable environment, which is a popular pub chain for local re
30、sidents. And the company motto is “cleanliness, beer, service and maintenance” which is the basic assumption. JD Wetherspoon has own outstanding characteristics, such as sell a wide range of real ale beers at relevant low prices, all day available and sold at relatively cheap prices and provide vent
31、ilation system which aims to ensure that customers do not leave smelling of smoke. l Moon under water is an assumption for J D Wetherspoon. JD Wetherspoons also renamed as Moon under water. They do not play music or show TV programmes. And at least a quarter of the space in each establishment is non
32、-smoking, and it has each as a ventilation system which aims to ensure that customers do not leave smelling of smoke.I will analysis the “Ideal pub environment”: as an entertainment environment which offer cheap beer and food, good conversation and comfortable environment, all these attractions give
33、 consumers a notion of deserving to go there. All above will bring high profits and large market share and stability position in the whole industry.(b) Explain the type of culture that J D Wetherspoon has, using a recognized model of organizational culture. Give examples to justify why you have chos
34、en this type of culture.According to Charles Handys theory (1985), it outlines four culture types in organizational culture. They are power culture, role culture, task culture and person culture. In the case, JD Wetherspoon has character of power culture. Evidences Martin carried all his business do
35、cuments in two plastic supermarket carrier bags. He is a noted euro-sceptic and in 2002 printed 500,000 beer mats and put up 10,000 save the pound posters to encourage customers to think about the issue while they drink. JD Wetherspoon adopts listening policy. Staff can discuss company issues with v
36、isiting Board members like Tim Martin. Feedback from members of staff on all aspects of the business. Ideas and suggestions are discussed each week in company meetings and staffs are rewarded for their suggestion. (c) Using the type of culture you identified in part 2 (b) above, what is the relation
37、ship between organizational culture and organizational behavior in J D Wetherspoon?In the case study, power culture in J D Wetherspoon as guideline to guide the behavior by following steps:l Tim Martin said the People are best asset With power culture, the company makes the staff involvement and com
38、munication. They kept in touch with weekly newsletters, a monthly company video and by publicizing the minutes of Board meetings. Staffs can discuss the issues which are provide in Board meeting and are rewarded for their good suggestions. l Operation characteristic in JD WetherspoonThe companys mot
39、to of JD Wetherspoon is “cleanliness, beer, service and maintenance”. Therefore, JD Wetherspoon provide comfortable and convenient environment for the customers such as they provide non-smoking area, ventilation system, good quality wine is available and cheap, particular attention is paid to toilet
40、 and serve food all day available. l J D Wetherspoon had a policy of expansionJ D Wetherspoon had a policy of expansion. In order to provide all the atmosphere and facilities of the pubs which Tim Martins required. So J D Wetherspoon pubs needed to be fairly large. During the 1980s and 1990s the com
41、pany relied on organic growth by acquiring suitable sites and converting them into J D Wetherspoon pubs.l Expansion on other filedJ D Wetherspoon also begun developing budget hotel accommodation known as Wetherlodges, a development which began when it acquired premises with rooms in the late 1990s.
42、it now has more than ten of these hotels, all of which have bar facilities attached to them. Some of these are part of the Lloyads No 1 Bar concept. (d) To what extent would the management approach in J D Wetherspoon be different if the company had adopted a different culture? Again, make use of the
43、 same model that you used in part 2 (b) above.power culture is suited for JD Wetherspoon. If it is changed another one such as personal culture, there was a negative effect on JD Wetherspoon. Then a table will show the comparison of applying both these two cultures. BehaviorsPower cultureTask cultur
44、ePower controlTim Martin had all the powers and made all the decisions.Team members empowered and individuals take part in decision-making all together. It is flexible and adaptable which lead to high risk to make a bad decision.Business goals achievementTim Martin views affected all the staff.The a
45、tmosphere and facilities of the pubs must be provided according to Tim Martins requirementEach team member has a different business views and operation style for pubs. It will affect the pubs operation and management, which may influence the right of market demand.People managementStaff highly parti
46、cipate in and have communication in the organization meeting. The stress for each staff is lower.Each team is independent of the company. Staff involvement are not adequately participate in the meeting, so they can not provide an effective advice for the meeting decision. Staff satisfactionThey are
47、co-ordinate wellThey have fully voice in the company decision marking staff have a common satisfaction of 95% were happy for the pubs to be used in Martins No campaign.They are co-ordinate only present in each team, each team like an independent organization not includes all the staff in the company
48、. Staff value can not be reflected because they dont participate in whole company discussion and decision-making. Section 3: Business strategy (a) Briefly explains four possible strategies which organizations may adopt. In each case, indicate the business environment which would be appropriate for t
49、he strategy concerned.According to Michael Porter (1980) theory, four possible strategies may adopt. These are Overall Low-Cost Provider Strategies, Broad Differentiation strategy, Best-cost Provider Strategies and Focus strategy. While the following are just four of these possible strategies.l Overall Low-Co