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Report on Business Culture and Strategy Candidate No Candidate Name Tutor Nov 2th 2015 Central South University of Forestry and Technology 2 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 3 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 increase Secondly 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 4 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 5 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 strive for high quality customer service Rapid feedback and reward and low risk is the feature of work hard play hard In the case J D Wethrspoon has a lifestyle guarantee which aims to give managers time for a life outside work It reduce risk from staff pressure to quitted Another key aspect of the company s operation is involvement and communication Staffs are kept in touch with weekly newsletters a monthly company video and by publicizing the minutes of Board meetings It promote feedback Relationship between culture and behavior Organisational behaviour is the study of human behavior in organizational settings the interface between human behavior and the organization and the organization itself Organizational culture is difficult to define precisely A simple description is that it is a system of shared meaning between members of an organization or the way we do things here Every organization has culture but culture is a abstract conception Organisation culture can affect what company should do in next step so every culture will have a kind of behavior In this case poll and staff meeting is major embodiment For example Tim Martin justified them by using the results of a poll among company staff which showed that 90 were against the single currency and 95 were happy for the pubs to be used in Martin s No campaign If managers are willing to execute the choice of
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