Introduction
JD Wetherspoon plc was founded by Tim Martin who opened the first JD Wetherspoon pub in 1979. He based his model for a pub on a 1946 essay by George Orwell which referred to an imaginary pub called ‘Moon under Water’. JD Wetherspoon became a plc in 1992 at which time it consisted of a chain of 44 pubs. It now has over 600 pubs, which means that it has expanded on average at the rate of about one new pub each week.
Much of the success of JD Weatherspoon during the last two decades of the twentieth century was attributed to the founder, Tim Martin. He is a controversial and unusual character for a businessman. In his capacity as executive chairman, he regularly traveled round the country visiting pubs and, when he did so, he carried all his business documents in two plastic supermarket carrier bags.
In this report, its purpose is to indicate four sections which External environment, Organizational culture Business strategy and Change are concerning in JDW issues.
Section 1 External environment
A. “SPELT” analysis
Social factor In the article, there are examples of social factors. Most pubs now have a dedicated family dining area where children and adults can eat together. The area is restricted and limited to meal times only. Children are not allowed in the bar areas and company believes it does greatly after the atmosphere of the pubs. The pubs have a great rule to restrict children. Children are at young age,
Technical factor They need education. Pubs are bad for them; it will bother the social security. It 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 high technology and equip it.
Economic factors JD Wetherspoon has over 600 pubs and each has a ventilation system(cost more than ﹩100,000). In all, it cost more than 60,000,000. Aim to ensure that customer do not leave smelling of smoke. Customers are first. It is economic factors.
Political factors There was increasing public and government concern about binge drinking and the consequent anti social behavior particularly in city centers. It belongs to political factors. Government concern about binge drinking, they intervened the behavior and take measures. Pubs can not be seen to be encouraging this state of affairs as it brings them bad publicity.
Logical factor The traditional link between the brewing companies and pubs known as the tied house system had been broken by a ruling from the monopolies and mergers commission which severely limited the number of pubs which a brewer could operate. This required to consider the implications of legislation, both in its policies and procedure and regard to the market in which it operation.
JD Wetherspoon in the 21thcentury is competitive and severe. It is facing much more competition. What is more, it has many problems during the operation.
(b) “SWOT” analysis
Strengths and weaknesses The internal factors are strengths and weaknesses. Although JD Wetherspoon faced big challenge, Tim Martin still keeps up the plan. He continues to hold over 15% of the shares and to influence and contribute to the way the business operates. The basic approach to JD Wetherspoon outlets remains unaltered but it has made some changes which are good for its pubs. JD Wetherspoon has also reviewed it operations. It remains a successful business. Pubs now serve breakfast and open earlier in the morning before normal licensing hour begin at 11.00a.m. Completing to other pubs, it will get more customers. But JD Wetherspoon also has weakness. He gave up day to day control in 2004 to become non executive chairman working two days week. The influence is serious to JD Wetherspoon.
Opportunity and threats Opportunity and threats are external factors. JD Wetherspoon reviewed it opportunity. In 2002, it acquires Lloyds pub chain consisting of 10 pubs. Since then, It has developed the Lloyds Number One Brand and greatly increased the number of outlets. But JD Wetherspoon also has threats. For example, the market now appears to be over supplied. It competes with supermarket. Firstly, supermarket began selling drinks, particularly premium lager, at loss-leader prices.
(c) Advice to manger to use the SWOT There are some simple rules for successful SWOT analysis. For example, be realistic about strength and weaknesses of the organization. Analysis should distinguish between where your organization is today and where it could be in the future. What is more, always analyze in relation to the competition and keep your SWOT short and
simple, avoid complexity and over-analysis. SWOT should always be used, and then you can find the weaknesses in the organization. JD Wetherspoon can develop market such as internet, moving into new market segments that offer improved profit and improve the location of business and quality of good and services.
Section 2: Organizational culture (a) Organization culture in JDW
Organization culture
Organization culture is the pattern of assumptions, values and norms shared by organization members. Research shows that the culture of an organization can significantly affect the way in which the company operates, particularly in terms of its effectiveness. J D Wetherspoon in term of shared values and taken for granted assumptions in the organization. One is that value concerned with what ought to be in an organization. Norms guide the way employees should behave in particular situations. The other is that basic assumptions, which, at a very fundamental, almost sub-conscious level, tell employees how to perceive, think and feel about things. Artifacts are the visible demonstration of the culture of an organization.
Shared values In the case, company shared values in the organization culture. They are behavior norms that run through the whole company. The norms and values of a culture are effectively the rules by which its members must abide. They are pure and formal. Values are established by senior manager. They register as high profile symbols. For example, Wetherspoon’s has claimed that people are its best asset. It has a flexible training policy which enables people from all kind of back grounds to join the company. The flexible training policy is providing staff with opportunities. The company uses lifestyle guarantee to give managers time for a life outside work. They work a 48 hour week with two consecutive days off and a maximum of four late closures a week. All managers get a day off in lieu for every bank holiday they work. Training courses, area meeting shift management meeting form part of the working
week, so that they ensure training courses do not encroach into staff leisure time. These rules for people in company could create values of J D Wetherspoon.
Taken for granted assumptions In the case, company taken for granted assumptions in the organization culture. They are material and informal. The assumptions are come from the long-term development of organization culture, such as stories and rituals. They register as low profile symbols. Organization culture affects the company’s operation. For example, taken for granted assumptions is that the long-term development such as stories and rituals. Stories describe what people talk about in the organization. Furthermore, it decrease what matters in the organization and what constitutes success or failure. Rituals are activities that the organization likes to highlight, as long service, sales achievement, innovation practices. A typical story includes a bad guy which often shady and unnamed and a good guy which often the founder or a prototypical cultural member. There may also be an innocent. In many respect, relations with staff stem from the informal approach adopted by Tim Martin. He used to enjoying telling stories of member of staff who over-indulged at the opening of a pub called the Monk retreat and drove away in a refuse lorry. She eventually becomes a regional manager. Rituals explain how an organization highlights and possibly rewards such practices. They may be used in such as rites of passage, such as when someone is promoted or retires. They may be associated with company events such as the release of a new event. They may also be associated with everyday events such as Christmas.
(b) The type of culture in JDW
J D Wetherspoon has work hard and play hard type of culture. Deal and Kennedy"s model of culture is based on characterizing different four types of organization, based on how quickly they receive feedback and reward after they have done something and the level of risks that they take. In the case, by the start of 21st century, however, they was facing much more competition, they had adapted to the change, after a long-term
development, the risk will be row, then reward and feed back will be quick. They accept advices from staff.The key aspect of company’s operation is involvement communication. Staffs are kept in touch with weekly newsletters, a monthly company video and by publicizing the minutes of board meeting. JD Wetherspoon places great importance on listening to, and acting on, feedback from member of staff on all aspects of the business. Ideas and suggestions are discussed each week in company meeting and staffs are rewarded for their suggestions. Staff can also discuss company issues with visiting board members like Tim Martin.
(b) The relationship between organization culture and behavior in JDW
In J D Wetherspoon, the relationship between organizational culture and behaviour is coherent. The organizational culture decides the organizational behavior. In the case, J D Wetherspoon has work hard and play hard type of culture. It show that low risk and quick feedback. After the long term hard work, the risk is decreased and reward is much more. The company’s operation is involvement and communication, staff keep I touch with weekly newsletters, a monthly company video and by publicizing the minutes of board meetings. The relationship is affecting in each other.
(c) Different management approach for different culture
So J D Wetherspoon could not adopt the different culture such as tough guy. The company could not manage this type of culture. In this culture, organizations must take high risks, they should be short-term development. But J D Wetherspoon was facing more completion and changes, they has the long-term investment. So tough guy is not fit for the company and could not get a good performance and work well.
Section 3: Business Strategy
(a) Introduction to Four strategies
There are four strategies which organizations may adopt. They are Market Penetration, Market Development, Product Development and Diversification. The Market Penetration is the name given to a growth strategy where the business focuses on selling existing products into existing markets. The Market development is the name given to a growth strategy where the business seeks to sell its existing products into new markets. Product development is the name given to a growth strategy where a business aims to introduce new products into existing markets. This strategy may require the development of new competencies and requires the business to develop modified products which can appeal to existing markets. Diversification is the name given to the growth strategy where a business markets new products in new markets. In Market Penetration Strategy, Newspaper industry was appropriate it strategy. In Market Development, exporting the product, or marketing it in a new region, is examples of market development. For example what Alcohol Is? .
(b) J DW strategy in 1980s and 1990s
J D Wetherspoon Company follows the market development strategy during the 1980s and 1990s. The market development strategy is here we market our existing product range in a new market. In this case, the J D Wetherspoon company was just a retailer at first; bar is new market to J D Wetherspoon Company. J D Wetherspoon company have some product, it do not needs to cost for develop new products. When the J D Wetherspoon company entry new market, it can have some new customer. When the J D Wetherspoon company entry new market, it needs to develop products by a new channel or market, so it can be to obtain more information of customers by a new channel or new market. In the new market, different price can attract the customers of different levels.
(c) The change of JD Wetherspoon strategy during the 21 st
century
J D Wetherspoon Company has followed the Product Development strategy since the start of the 21 st
century. This is a new product to be marketed to our existing customers. J D Wetherspoon Company has customers before 21 st , now it needs new product to develop of the customer that has. The market development strategy is different form the product development. These two strategies are different on tendency. One is market and other one is product. Market development is existing product range in a new market, and the product development is a new product to be marketed to our existing customers. In this case, J D Wetherspoon pubs now serve breakfast and open earlier in the morning before normal licensing hours begin at 11.00 a.m.
(d) The factors JDW to consider when changing its business strategy
Before changing its business strategy the J D Wetherspoon company has had to consider some factors. First is the price, J D Wetherspoon company just entry the market needs the low price attracts customers. In the case, J D Wetherspoon pubs sell a wide range of real ale beers at relatively low prices. Second it needs considering different product form other pubs to attract customers. In this case, J D Wetherspoon pubs now serve breakfast and open earlier in the morning before normal licensing hours begin at 11.00 a.m. Some pubs now show televised football.
(e) The connection between the terms “business strategy”
And “strategic choice”
The business strategy is an abstraction, a construct. No concrete form or substance. And the strategic choice is a concrete, have clear-out directions. Different phases used different strategy. In this case, J D Wetherspoon follow during the 1980s and 1990s used the market development strategy, while, in 21 st , the J D Wetherspoon used the product development strategy.
(f) The two issues that JDW to take account of to manage its
Business strategy.
J D Wetherspoon has had to take account of in order to manage its business strategy; the one key issue is principle of strategic. Different period should adoptee different strategy. The other issue is it needs considering there are resources whether can change. J D Wetherspoon needs to consider it money and materials whether rich.
Section 4: change
a. “Forces for change “and resistance for change
There are two forces for change. The one is the forces working for your desired changes—driving forces. And the other one is the forces working against your desired changes—restraining forces. In this case, in 21 st
have a lot of new pubs, the competition is more and more fierce, driving the pubs development. And as the local government policy to limited development of wine, driving the change of wine. But as the J D Wetherspoon company have made the achievement, the company’s stuff unwilling to change, and the the J D Wetherspoon company’s manager Tim Martin want to keep the original state and influences strength to keep the company. That is restraining forces of J D Wetherspoon Company. The drawing force is more than the restraining forces. So J D Wetherspoon Company needs to change strategy.
I choose the social responsibility. In this case, J D Wetherspoon company’s pubs serve breakfast and open dallier in the morning before normal licensing hours. And the J D Wetherspoon companies reduce the content of the alcohol in wine. There are the J D Wetherspoon company social responsibilities.
(b) Management roles in dealing with the changes
Differentiate the key roles played by management from those of strategic management. Planning and budgeting is establishing detailed steps and timetables for achieving
needed results ten allocating the resources necessary to make it happen. Organizing and staffing is establishing a structure, staffing that structure with individuals, delegating responsibility and authority, providing policies and procedures, and creating methods to monitor implementation. Controlling and problem-solving is monitoring results, identifying deviations from plan, solve these problems. Producing the degree of predictability and order to consistently produce the short-term results expected by various stakeholders。
(c) Advice to management to analyze situation and overcome
Resistance to change
Tactics for detailing with resistance to change include six approaches, which are education and communication, participation, support, negotiation, manipulation; co-opting and coercion. About Education and Communication, it is important that management should not presume that knowledge and information are passed downward through the organization automatically but should ensure more effective communication with every employee at all stages of change, Resistance can be reduced by communication with employees to help them see the logic of a change. This tactic assumes that the course of resistance lies in misinformation or poor communication. It employees receive the full facts and clear up any misunderstanding receive the full facts and clear up any misunderstanding, the resistance will subside. About participation and involvement, where the initiators do not have all the necessary information to design the change, and where others have considerable power to resist. When employees are involved in the change effort they are more likely to want change rather than resist it. This approach is likely to decrease resistance of those, who merely acquiesce in the change. For the support, managers can offer a range of supportive efforts to reduce resistance: when employee’s fear and anxiety are high, counseling or new skills training, to name but two, may facilitate adjustment. About the negotiation, this requires the exchange of something of value for a lessening of resistance. Manipulation refers to covert attempts to influence, for
example, twisting and distorting facts to make them appear more attractive, withholding undesirable information, creating false rumors to get employees to accept a change. Co- opting is a form of both manipulation and participation. It seeks to buy-off the leaders of resistance group by giving them a key role in the change decision. Finally for coercion, this is the application of direct threats of force upon resistors, for example threat of transfer, loss of promotion, poor letter of recommendation.
Conclusion
In conclusion, this report can be concluded as some following issues. Firstly, there are some simple rules for successful SWOT analysis. For example, be realistic about strength and weaknesses of the organization. Analysis should distinguish between where your organization is today and where it could be in the future.
Secondly, in terms of the organizational culture, J D Wetherspoon has work hard and play hard type of culture. JD Wetherspoon places great importance on listening to, and acting on, feedback from member of staff on all aspects of the business. Next comes to the section three, J D Wetherspoon Company has followed the Product Develoment strategy since the start of the 21 st
century. This is a new product to be marketed to our existing customers. Finally, this report mainly focus on the tactics for detailing with resistance to change include six approaches, which are education and communication, participation, support, negotiation, manipulation and co-opting and coercion.
Reference
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