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StrategyandCultureinJDWetherspoon

Section1:Externalenvironment

(a).

ThePESTELanalysisheadingareaframeworkinwhichenvironmentalinfluencearecategorizedintosixmaintypes:political,economic,socio-cultural,technological,,environmentalandlegal.

P:politicalforces,asthepoliticalarenahasahugeinfluenceupontheregulationofbusinessandthespendingofconsumersandotherbusinesses.Thepoliticalisincludinggovernmentstability,taxationpolicy,socialwelfarepoliciesandthetraderegulations.

InourcaseofJDWetherspoonplc,theMonopoliesandMergersCommissiontakearulingaboutbrokenthe‘tiedhouse’system,thisrulinglimitedthebrewersellingthebeerandbrewingthebeeratsametime.Andthegovernmentpaysattentionforthedisadvantage.

2.E:economicforces,asthestateofatradingeconomyintheshort-termandlong-terminfluencethewealthofapopulation.Theeconomicisincludinginterestrates,inflation,anddisposableincomeandproductseasonalityandsoon.

AbouttheJDWetherspoonplc,inthestartoftwentyfirstcentury,JDWetherspoonwasfacingmuchmorecompetition.Theretaillicensingmarkinghadadaptedtothechangesinthe‘tiedhouse’systemandotherretailpubchainslikeRegentInnsandPunchTavernshadbeendevelopingtheirbusinesses.Andthesupermarketbegansellingdrinksalsohaveinfluenceonthecompany.

S:socio-culturalforces.Suchasreligionanddemographicsimpactuponproductdesignandspendingbyconsumers.Itincludeslifestyletrends,educationlevel,populationdemographicsandsocialresponsbility

Inthecase,peoplemoreandmorecarefullytotakeattentionontheirhealth,sotheybegantoreducethewinedrinking.ThenJDWethersponplcdevelopsakindoflowethanolwine.

T:technologicalforces,suchasinformationtechnologyinfluencesproductionmethods,andtransportationinfluencesmarketpenetrationandproductcosts.Itwillincludespeedofintroductionofnewtechnologies,innovations/developmentsandconsumerbuyingoptionsandsoon.

Inthecase,withthetechnologicaldevelop;thebeercanbebottledandsellinginthemarket.Becauseofthis,peoplearen’tneedtodrinkbeeronlyinthepubs.ThiscandecreasethesellshareoftheJDWetherspoon.

L:legalforces,suchasproductsafetyinfluencesdesign,andtradingpracticesinfluencehowbusinessesconductthemselvesinthemarket.Itmayincludelikeemploymentlaw,healthyandsafety,companylawandconsumerprotectionandsoon.

Inthecase,thegovernmentissuedpoliciestolimitthewinedrinking,andtheMonopoliesandMergersCommissiontakearulingaboutbrokenthe‘tiedhouse’system,thisrulinglimitedthebrewersellingthebeerandbrewingthebeeratsametime.AlloftheselegalforcescouldhaveinfluenceonJDWetherspoon.

(b).

Theanalysisoftheorganization’sinternalandexternalstrategicenvironmentisreferredtoasaSWOTanalysis.SWOTisanacronymforstrengths,weakness,opportunitiesandthreats.TheSWOTanalysisisaverypopulartoolwithmanagersbecauseitisquickandeasytolearn.

SWOTanalysisforJDWetherspon

Internal

Strength:

Staff.

Goodserviceandenvironment.

Weaknesses:

Food.

Serviceforchildren.

External

Opportunities:

Differentpubbrand.

Developingbudgethotel.

Threats:

1.Otherpubscompete.

2.Governmentpolicy.

S:inthecase,JDWetherspoonclaimedthatpeopleareitsbestasset.20%ofseniormanagersbeganasbarstafforcleaners.Thecompanyprovidelifelongtrainingandadopthestaffsuggestion,andcommunicatewiththem,JDWetherspoonprovidequietenvironmentandtheservicearealwayssatisfiedtheconsumerdemand,allofthesecanprotectthecompanydevelopwell.

W:thefoodinpubsofJDWetherspoon,itsupportscomplimentarycrispswithbaguettes,thiskindisbadforcustomers’healthanditdidn’tdistinguishthehotdegree,thismightcausecustomer’sdiscontentedfortheJDWetherspoon.Italsodoesn’thavechildren’smeals.Thiswillletthecustomersofadultunconvenient,anditmaybecausethechildrenarehurt.Allofthesecanlossthecustomers.

O:JDWetherspoonismanaginghepubstyleas‘quiet’.Butnow,itacquiredtheLloydspubchain,JDWetherspoondevelopitasanotherstyle.Thiskindofpub’smusicdazedoutletswithamuchstrongerentertainmentelementandshowTVprograms,thiscanattractmuchmorecustomers.Thecompanyalsobegundevelopingbudgethotel,thiscandevelopanothermarketandincreasetheprofitofJDWetherspoon.

T:JDWetherspoonfacedmanycomputers,likeRegentInns,PunchTavernsandthesupermarket.Theywillstrivetheshareofmarketandthecustomer.Thegovernmentpolicyalsoinfluencesit.Likethelimitofbrewinganddrinkbeerinthecenturyofthecity,thisalsocandecreasetheshareofJDWetherspoon.

(c).

ThroughaSWOTanalysisanorganizationcanassessitscurrentpositionandmakecomparisonswithcompetitorsinordertoplanactivitiesandresourcesappropriately.Itisthefirststageofplanningandhelpsmanagerstofocusonkeyissues.ItisimportantrememberwhencarryingoutaSWOTanalysisthatitisnotabsolute.

SimplerulesforsuccessfulSWOTanalysislikenext:

Thecostfocusisaformaimsatbeingthelowscostproducerinthatnicheorsegment,itinanarrowmarketscopeenvironmentlikelowcostthanthedifferentiationinaniche.

Thefocusdifferentiationisafirmcreatescompetitiveadvantagethroughdifferentiationwithinthenicheorsegment.Itspotentialproblemsaresmall,specialistnichescoulddisappearinthelongterm.Itsassociatedenvironmentisinthenarrowmarketscope,youcanuseaspecialproductfromthemajordevelopedmarketcompetitorswhohavedifferentpurposes.

(b)Inthecase,duringthe1980sand1990SthecompanyreliedonorganicgrowthbyacquiringsuitablesitesandconvertingthemintoJDWetherspoonpubs.Anditisdevelopingastylethatisquiet,healthyandsatisfiedenvironment.Inthecase,wecanseethatitbuildnon-smokingandprovidehealthfoodtothecustomers.Toitsstaff,thecompanythinksthatpeopleareitsbestasset.Thisstyleismoredifferentwithothers.

Inourcase,allofthesewehavesaid,duringthe1980sand1990s,JDWetherspoonisapubchain,ithasmanypubs,thecompany’saimistomanagethepubtosatisfiedwiththecustomer,anditisalwaysmakeitsstrategyinthepubchain,itsallofactionslikeprovidecheapbeerandnon-smokingareaandsoon,whichareallofsetthemainpointtoitspubmanagestyle.

SoIadvisethatthecompany’ssituationissuitGeneric-StrategiesMichaelPorter(1990),differentiation.

Fromthestrategy,JDWetherspoongetsmorebenefits,hereIonlyidentifyfouraboutit:thecompanybuilditsownstyleandbrand,ithasitsowncustomergroup,theexpansionaboutshareandscopeisgrowingquickly,andthebenefitsismorethanbefore.

(c)

Duringthe21stcentury,JDWeterspoonwasfacingmuchmirecompetition,andthroughthegovernment’spolicylimited,itsdevelopwasdecreaseandslowly,thenitbegaintochangeitsstyleandacquiredothers,itservebreakfastandopenearlierinthemorning,supportthefamilydiningarea,showtelevisedfootballandsoon.Thecompanyalsobegantomanageotherarealikethehotel.

SoitsuitGeneric-StrategiesMichaelPorter(1990),segmentation,nicheorfocusstrategy.

Duringthe1980sand1990s,thecompanyreliedonorganicgrowthbyacquiringsuitablesitesandconvertingthemintoJDWetherspoonpubs.Inthecase,wecanseethatitbuildnon-smokingandprovidehealthfoodtothecustomers.Toitsstaff,thecompanythinksthatpeopleareitsbestasset.ItisGeneric-StrategiesMichaelPorter(1990),differentiation.

Duringthe21stcentury,italsopaysattentiontothestaff,butittrytochangeitsstyle,managemotel,andthefoodwhathasprovided.

(d)

Whenacompanywaschangingbusinessstrategy,itmustbeconsideringthefactors,soasJDWetherspoon.

Exteriorenvironment:bythestartofthetwentyfirstcentury,becauseoftheretaillicensingmarkethadadapttothechangesinthe“tiedhouse”systemandothercompetitorhadbeenadapteditanddevelopingtheirbusiness.SoJDWetherspoonwasfacingmuchmorecompetition.Manyothercompetitorsrunthepubandreceivethepayrent,thissituationleadtosaturationofthepubmarket.SoJDWetherspoonneedstochangeitsbusinessstrategy.

Policy:during2002-2004,governmentallowsthesupermarketbegansellingdrinks,particularlypremiumlarger,atloss-leaderprices.Thismeansthatthepubcannotcomparewithsupermarketinprice.Ontheotherhand,governmentconcernaboutbingedrinkingandtheconsequentantspecialbehaviors,particularlyincitycenters.Thisleadthedecreaseofnewpubnumberandsharesofcaseform.Theymusttochangetosavetheircompany.

(e)

Strategyismanythingslikeplan,pattern,position,ployandperspective.Asposition,strategyisthestanceorganizationstake.Organizationscanchooseto:beaspecialistprovider;bethelow-costproviderandsoon.Inthecase,wecanknowthat:atfirst,itsuppliesspecialenvironmentquiet,clean,non-smokingtoothers.Duringthedevelopmentofpubs,theyallbecametodospecialenvironmentlikethat.ThenJDWbegantoservebreakfast,showWorldCupfootballandsoon,italsodevelopnewbrandlike”LNO”,andbegundevelopingbudgethotelas“Wetherlodges”tochangeitsstrategy,alltheseprocessofstrategyfromdifferentiationtofocusondifferencestrategychoosingisitsstrategicchoice.Sothestrategychoosingisaprocess.

(f)

Keyissuesinthemanagementofabusinessstrategylikenext:

Market/industryknowledge

Sufficiencyofresourcesandcapabilities

Offeringconsumers’auniquevalue’perceivedorreal

Establishingakey’differentiator’

Consistentcommunicationconsistently

ManagementmustkeepchangefeasibleandStructure

Recognizetheprincipalcausesofstrategicchange.

AbouttheJDWetherspoon,Iwilltalkabouttwopoints:

Consistentcommunicationconsistently.IntheJDWetherspoon,‘movementandcommunication’,staffsarekeepingintouchwithweeklynewsletters,amonthlycompanyvideoandbypublicizingtheminutesofbroadmeeting.AndJDWetherspoonattendtolistentothestaffvoice,liketheirsuggestionswetherspoon’s‘listening’policyisbasedonasystemsuccessfullypioneeredbythehi-foreteller,richersounds.

Establishingakey‘differentiator’.Duringthedevelopmentandgrowthofthecompany,itprovidesrealalebeersatrelativelylowpricesandcareaboutchildanddisable,itbuildnon-smokingareatokeephealthforthecustomers.

Section4:Change

(a)

Becauseofthetwopowersaboutrestrainingforcesanddrivingforcestakeeffect.ThestrategyofJDWetherspoonchangedovertime.Throughtwoforcesofrestrainingistheforceworkingagainstdesiredchanges.Andtheotherforceofdivingistheforceofworkingfordesiredchanges.

Ifthedivingforceisstrongerthanrestrainingforce,thenthefirmwillbechanging.Theleadercouldcomparethetwoforces,andconsiderthecompanyneedtochangeornot.

NextwewilltalkaboutJDWetherspoon’sdrivingforceandrestrainingforces.

Drivingforces:Theincreasecompetition,manycompetitorsrunpubstorentthemoney.

Governmenttakesmanypolicelikeconcernaboutbingedrinking,andthoughtitisanti-socialbehaviors.

Thechangingmarket,themarketappearstobeover-supplied.

Restrainingforces:Inertia(habit)oftheJDWetherspoon,liketheirstaff,theyhavehabittotheirrulerandmanagement.Theywantthesteadyenvironmentofwork.

StrengthofcultureintheJDWetherspoonisverystrong,theculturehasastrongeffectonJDWetherspoonanditsstaffanditsstructure.

(b)

ThebigchangesfrombusinessethicsisamainlyfactorintheJDWetherspoon.

Inthecase,thegovernmentconcernaboutbingedrinkingandthinkitisananti-socialbehaviors,anditisparticularlyinthecitycanters.Thesituationofpubwasn’tbeensawtobeencouragingbringsthembadpolicing.TheeventcausesabadeffectonJDWetherspoon.

ThebadinfluenceonJDWetherspoonaboutprofitandsharesandsales.TimMartinnowasanexecutive,hehadgiveuphispowerthroughdailytime.SothebusinessethicsisveryimportantfactorsforJDWetherspoon.

(c)

TheroleofmanagementofJDWetherspoondealingwiththechangesislikenext:

Establishingdirections:developingavisionofthefutureofteninthedistantfuture,andstrategiesforproducingthechangesneededtoachievethatvision.DuringtheJDWetherspoon’sdevelopmentandgrows,thefirmsalebearincheapprice,takenon-smokingarea,providetelevisionprogramandsoon.AllofthesemeansJDWetherspoonadopttheabovebehaviortoreplychange.

Aligningpeople:communicatingdirectioninwordsanddeedstoallwhosecooperationmaybeneedsoastoinfluencethecreationofteamsandcoalitionsthatunderstandthevisionandstrategiesandaccepttheirvalidity.AbouttheJDWetherspoon,itcommunicatesandknowsaboutcustomersneeds,thenchangeitsbusiness,likebreakfastservinginthemorningbeforenormaltimeat11:00a.m.

Motivatingandinspiring:energizingpeopletoovercomemajorpolitical,bureaucraticandresourcebarrierstochangebysatisfyingbasic,butoftenunfulfilled,humanneeds.Monitoringorganizingandresults,throughfindthecarelesstosolvetheproblems.TheleadershouldfideoutthedifferencebetweenJDWetherspoonandothers.Italwaysneedstocommunicationwithpeople,knowtheirneedsandsolvethem,helpthemtoadaptthechangesinthecompany.

(d)

IwillgivesomesuggestionstoJDWetherspoon’smanagement,inordertohelpthemanalysisachangesituation.Iamintroducingthethree-stepconceptualframeworkfromKurtLewintomanagement.Hehasintroducedthethree-stepchangemodelin1951andhasagreedthechangethatshouldbeinvolvedandconcernedwiththethreestagesandtheindividuals.

Thethreestageslikenext:

Unfreezingthepresent.Reducingtheforcesmaintainingtheorganizationinitspresentsituation.Recognizingtheneedforchangeandimportant.

Inthisstage,managementneedlettheiremployeesknowtheimportanceofthechange.Inthe21thcentauryofthecaseofJDWetherspoon,itfacedmorecompetition.Someotherretailpubchainshadbeendevelopingtheirbusiness,andsomeofthepubareincreasingthemarketappearstobeover-supplied.Thegovernmentlimitedthedrinkingandtheconsequentanti-socialbehavior.Inaword,themarketshare,profitandsalesaredecreasing.Sothecompanyneedstochange.

Movingtothenewlevel.Shiftingthebehavioroftheorganizationtoanewlevelbyencouragingstafftoadoptmewbehaviorandattitudes.Theimplementationofthechange.

Inthisstage,theemployeeneedstoacceptthemewbusinessculturewiththemanagement’shelp.Leadercanusemotivatemethodstoencourageemployeessayyestothechange.Forinstance,theycangiverewardstoemployees,orsobenefits.AboutJDWetherspoon,ithassomechangeslike:mostpubshaveadedicatedfamilydiningareawherechildrenandtheirparentscaneattogether,andthepubbegantoservebreakfastandopenearlierinthemorning,andpubsstarttoshowTVprogramandthetelevisionfootball,andsoon.

Refreezingthenewlevel.Stabilizingtheorganizationinitsnewstateofequilibriumby,forexample,establishinganewcultureornewstructurethatreinforcesthechange.

Inthisstage,thebehaviorandattitudesoftheemployeesneedsmanagers’forcetotreatandadaptthenewculture,andmonitorisessential.Managersneedtoensurethebusinesschanges’attit