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1、Business Strategy and CultureTutor: Tong ChuanStudent: Yang Qi目录Introduction3Discussion3Section A3a)Examples of SPETL analyze.3b)SWOT analysis6c)Guidelines for management use7Section B8a)Organization culture in JDW8b)The type of culture in JDW9c)The relationship between organization culture and beha
2、vior10d)Management approach to different organization culture10Section C11a)Possible strategies and indicate business environment11b)What strategy JDW followed during 1980-1990s12c)Compare two strategies in terms of influence and on the behavior of the organization13d)What has consider before changi
3、ng its strategy14e)Illustrate the connection between business strategy and strategic choice.14f)Key issues to manage its business strategy15Section D16a)Why the strategy of JD Wetherspoon changed over time16b)One factor which may lead to change in JDW16c)The role that management play dealing with ch
4、anges in 200017d)Advice give to the management of JDW help and analyze change situation overcome any resistance to change17Conclusion19Reference20IntroductionThe JD Wetherspoon plc was founded by Tim Martin who opened the first JD Wetherspoon pub in the 1979. It based the model for a pub on a 1946 e
5、ssay by George Orwell which referred to an imaginary pub called Moon Under Water. In the 1992, the JD Wetherspoon became a plc which time it consisted of a chain of 44 pubs and now it has over 600 pubs. In 2002, about 10 years after flotation, its share price rose to more than ten times its original
6、 value. This report has 4 sections. Section A is going to give examples of external environment which have affected the way JD behaved. Moreover, using a SWOT analysis, explain the relationship between JD and the environment it is facing during the early years of the 21st century. Section B aims at
7、explains the organization culture and organization behavior in an organization. Moreover, the report will explain the type of culture that the organization has using a recognized model of organizational culture. Section C mainly evaluates the business strategy that JD adopted and how to manage strat
8、egy within an organization. Section D deals with the times change which affect JD Wetherspoon directly and give some recommendations for these negative changes.DiscussionSection Aa) Examples of SPETL analyze.The social factorPub suit for the traditional cultureThe UK social culture is traditional co
9、ncept, so the JD Wetherspoon pubs dont play music or show TV programs. secondly, the UK social culture is pursue the higher standard living, so that the JD Wetherspoon pubs not serving complimentary crisps with baguettes, were health conscious and almost always left the crisps, introducing a hotness
10、 rating on the curry menu.Entertainment element At the beginning of 80s, younger generations of customers want to enjoy music or an evening out, therefore, Wetherspoons need to transform from tradition to entertainment in order to remain competitive.The technological factorVentilation SystemEach of
11、the ventilation systems cost more than 100,000 pounds. It aims to ensure that customers do not leave smelling of smoke.Security systemIt now has more than ten of these hotels, all of which have bar facilities attached to them. This is technical factor. In order to attach customer, the pubs must use
12、high technology and equip it. JD provide ventilation system in each pubs for customers to give a clear indoor environment.The Economic factorEconomics crisisAs know that in the beginning of 21st century has a big economic crisis in the work, it cause the Economic environment of British is not prospe
13、rity. So more and more company redundancy the employees, it will be make a large number of people loss the job, moreover it cause the income is down and the peoples buy power is decrease. Consumer behavior Because in the supermarket, the wine and beer is cheaper in the pubs, some more and more peopl
14、e like buy some wine go back home rather than go to the pubs. So that the JD Wetherspoon have to expand business areas which it has begun developing budget hotel, the JD Wetherspoon pubs now serve breakfast and have a dedicated family dining area where children and adults can eat together. It will b
15、e immediately make more profit for self-help.Political factorJoin the EuroThe UK government considers make the Pound join the Euro aim to Euro integration. It is a dispute for the British, because if the Pound joins the Euro, it causes the depreciation of sterling so that the commodity price will be
16、 increase. This point is very important for the JD Wetherspoon pubs, because it will be make the customer will pay more cash for the alcohol. So that the Martin is a noted euro-sceptic and in 2002 printed 500,000 beer mats and put up 10,000 save the pound posters to encourage customer to think about
17、 the issue while they drink.Unemployment factorsThe Government applied monetarist policies to reduce inflation, and reduced public spending. Deflationary measures were implemented against the backdrop of the early 1980s recession, leading to 100.000 being added to the unemployment register every mon
18、th, the early 1980s recession saw unemployment saw unemployment rise above three million, it directly led to pub industry economic losses.Legal factorGovernment policyIn this case, it show some legal for the pubs, for instance, the government concern about binge drinking and the consequent anti-soci
19、al behavior, particularly in city centers, beer tax. It made the less of people go to the pubs. So the JD Wetherspoon pubs have to diversify operation, For example, it serve the breakfast and open earlier than licensing hours begin at 11.00 am. Opportunity J D Wetherspoon seized the opportunity of p
20、olitical stability and positive economy trend to expand smoothly. Besides, J D Wetherspoon owned its outlets, therefore it can easy to control its outlets based on wide span of control. Minimum human resources waste on management caused by J D Wetherspoon is a centralized structure.ThreatAs governme
21、nt issued the social policy, pubs cannot be seen to be encouraging binge drinking and the consequent anti-social behavior. J D Wethspoon suffered a resistance from social policy, the market shrunk due to competitor adopts different approach to share the market, and the company has to change the stra
22、tegy as a result. The cost of changing will delay the development.b) SWOT analysisStrength1 JD Wetherspoon has a perfect communication in the company. As know that the JD Wetherspoon places great importance on listening to and acting on, it has two-way communication from members of staff on all aspe
23、cts of the business about the feedback. Moreover, the JD Wetherspoon owned some fantastic facilities, for instance it has a ventilation system in each pubs.Strength2High degree of staff loyalty thanks to the companys training policy. Staff is willing to work due to their advice or recommendation cou
24、ld be adopted by the board if it makes sense.Weakness1But JD Wetherspoon also has weakness. JD Wetherspoon follow the British traditional culture, so the JD Wetherspoon pubs dont has any fashion facilities, for example they dont have the TV and music, so they loss of customer. Chairman gave up day t
25、o day control in 2004 to become non executive chairman working two days week. This seriously influence JDs marketing activity.Weakness2Government concerns about binge drinking which would result anti-social behavior. Opportunity1 JD Wetherspoon reviewed it opportunity. In 2002, it acquires Lloyds pu
26、b chain consisting of 10 pubs. Since then, it has developed the Lloyds Number One Brand and greatly increased the number of outlets. Opportunity2The music based outlets with a much stronger entertainment element has been adopted in some J D Wetherspoon outlets. Younger generation would like to consu
27、me the pubs like this.Threat1But JD Wetherspoon also has threats. For example, the market now appears to be over supplied. It competes with supermarket. supermarket began selling drinks, particularly premium lager, at loss-leader prices.Threat2Supermarket began selling drinks, particularly premium l
28、ager, at loss-leader prices. Therefore, niche market and fierce competition has coming.c) Guidelines for management useOperations in communication S1-T1The company has a perfect communication in the company. As know that the JD Wetherspoon places great importance on listening to and acting on, it ha
29、s two-way communication from members of staff on all aspects of the business about the feedback. As a strong competitive factor they should extend services to drinking-off period to attract more customers.Developing high degree of staff loyalty S2 to T2High degree of staff loyalty avoids J D Wethers
30、poon lose the number of staff in high unemployment. It helps the company pull through the risk of unemployment.Section Ba) Organization culture in JDWThe organizational culture is the basic assumptions, shared values and beliefs that guide the way organizational members behave toward each other and
31、approach their work. Shared valuesThe shared values are the norms of behavior which run around the organization. According to the case, the JD Wetherspoon shows the democratic leadership in the organization values. The companys operation is involvement and communication. Staffs are kept in touch wit
32、h weekly newsletters, a monthly company video and by publicizing the minutes of Board meetings. The norms and values of a culture are effectively the rules by which its members must abide.Granted assumptionTaken for granted assumption are more informal and develop over time often in the form of low
33、profile symbols such as physical symbols, stories and common language. In this case, Wetherspoons listening policy is based on a system successfully pioneered by the hi-fi retailer, Richer Sounds. Julian Richer, owner of the company, acted as a consultant to JD Wetherspoon. The Martin eventually bec
34、ame a regional manager. The manager can use this way to reduce positive mood move into the job and improve the loyal for the JD Wetherspoon.b) The type of culture in JDWOrganizational culture is a system that people can use to classify what a businesss personality and ethos is like. According to Cha
35、rles Handy “The Gods of Management” 1985 there are 4 types of culture each based upon a Greek god.CentralizedZeusAutocraticInformalPower cultureApolloBureaucraticFormalRole cultureDionysusAnarchicIndividualistic cultureAthenaMatrixTask-based cultureDevolved(Figure1)For JDW it represents for Zeus Cul
36、ture which means power culture. As figure1 show the characteristics of the four types of culture JD Wetherspoon is typically Zeus culture. This type of culture looks to people with power but it may not always be formal power-holder. Also obtain demonstrate sponsorship. JDW was founded by Tim Martin
37、and based his model for pub. And all the new pubs provide the atmosphere and facilities which Tim required. During the last two decades much of the success of JDW was attributed to the funder Tim Martin. So it was centralized but informal one which Tim Martin was the power man.c) The relationship be
38、tween organization culture and behavior The organizational culture decides the organizational behavior. According to the case, the JD Wetherspoons culture is Zeus culture. Power and influence emanate from the centre is the key feature for this culture. Chairman regularly travelled round the country
39、visiting pubs come out his business plan through this kind of travel. He is a noted euro-sceptic and add his political stand into the daily business, although Union leader and others condemned his action but he justified them by using the method poll among company staff which showed 90% were support
40、 his stand and 95% customers were happy for the pubs to be used in Martins NO campaign. Ideas and suggestions are discussed each week in company meeting and staff are rewarded for their suggestion, staff can also discuss company issues with board members.d) Management approach to different organizat
41、ion cultureIf JD Wetherspoon adopt other organization culture like Athena culture individuals are expects in their jobs and come together in project or task group. This would required the management approach to be more flexible based on different project as different department in the company should
42、 have a open communication. And systems and methods are transient as the group applies its energies and commitment to the task. So the different organization culture made the different organization behaviour.Time80s-90s21centuryCulture changingPower culture (Zeus)Task culture (Athena)Behavior changi
43、ng in JDW the management and staff are surround by one person and the work decide by one person the work will have more communication between management and staffBehavior changing Tim Martin focus on oneselfDedicated more on employee and give them more flexibitySection Ca) Possible strategies and in
44、dicate business environmentOverall Low-Cost Provider StrategyLow-cost provider strategy means low overall costs, not just low manufacturing or production costs. Price competition is vigorousProduct is standardized or readily available from many suppliersThere are few ways to achieve differentiation
45、that have value to buyersMost buyers use product in some waysBuyers incur low switching costsBuyers are large and have significant bargaining powerEnvironment conditions: make achievement of meaningful lower costs than rivals the theme of firms strategy; skill in designing products for efficient man
46、ufacturing.Board Differentiation Strategy Incorporate differentiating features that cause buyers to refer firms product or service over brands of rivals.There are many ways to differentiate a product that ave value and please customersBuyer needs and uses are diverseFew rivals are following a simila
47、r differentiation approachTechnological change and product innovation are fast-pacedEnvironment conditions: Highly skilled and creative product development team; strong sales team with the ability to successfully communicate the perceived strengths of the product; Need to value and please customers
48、when buyer needs and uses are diverse.Focus Low Cost StrategyThe focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation. A narrow price of the total market The appropriate environment includes where buyers have distinctive preferences, special requirements, or unique needsFocused Differentiation StrategyIn differentiation focus a firm seeks a cost advantage in its target segment. It focus exploi
