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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
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