HND商务文化与策略.doc

Assessment task 1
Outcome covered
All outcomes (1-5)

Section 1:
(a).
The PESTEL analysis heading are a framework in which environmental influence are categorized into six main types: political, economic, socio-cultural, technological,, environmental and legal.
1. P: political forces, as the political arena has a huge influence upon the regulation of business and the spending of consumers and other businesses. The political is including government stability, taxation policy, social welfare policies and the trade regulations.
In our case of J D Wetherspoon plc, the Monopolies and Mergers Commission take a ruling about broken the ‘tied house’ system, this ruling limited the brewer selling the beer and brewing the beer at same time. And the government pays attention for the disadvantage.
2. E: economic forces, as the state of a trading economy in the short-term and long-term influence the wealth of a population. The economic is including interest rates, inflation, and disposable income and product seasonality and so on.
About the J D Wetherspoon plc, in the start of twenty first century, J D Wetherspoon was facing much more competition. The retail licensing marking had adapted to the changes in the ‘tied house’ system and other retail pub chains like Regent Inns and Punch Taverns had been developing their businesses. And the supermarket began selling drinks also have influence on the company.
3. S: socio-cultural forces. Such as religion and demographics impact upon product design and spending by consumers. It includes lifestyle trends, education level, population demographics and social responsbility
In the case, people more and more carefully to take attention on their health, so they began to reduce the wine drinking. Then J D Wetherspon plc develops a kind of low ethanol wine.
4. T: technological forces, such as information technology influences production methods, and transportation influences market penetration and product costs. It will include speed of introduction of new technologies, innovations/developments and consumer buying options and so on.
In the case, with the technological develop, the beer can be bottled and selling in the market. Because of this, people isn’t need to drink beer only in the pubs. This can decrease the sell share of the J D Wetherspoon.

5. L: legal forces, such as product safety influences design, and trading practices influence how businesses conduct themselves in the market. It may include like employment law, healthy and safety, company law and consumer protection and so on.
In the case, the government issued policies to limit the wine drinking, and the Monopolies and Mergers Commission take a ruling about broken the ‘tied house’ system, this ruling limited the brewer selling the beer and brewing the beer at same time. All of these legal force could have influence on J D Wetherspoon.

(b).
The analysis of the organization’s internal and external strategic environment is referred to as a SWOT analysis. SWOT is an acronym for strengths, weakness, opportunities and threats. The SWOT analysis is a very popular tool with managers because it is quick and easy to learn.

SWOT analysis for J D Wetherspon
Internal

Strength:
1. Staff.
2. Good service and environment.
Weaknesses:
1. Food.
2. Service for children.
External

Opportunities:
1. Different pub brand.
2. Developing budget hotel.
Threats:
1. Other pubs compete.
2. Government policy.
S: in the case, J D Wetherspoon claimed that people are its best asset. 20% of senior managers began as bar staff or cleaners. The company provide lifelong training and adopt he staff suggestion, and communicate with them, J D Wetherspoon provide quiet environment and the service are always satisfied the consumer demand, all of these can protect the company develop well.
W: the food in pubs of J D Wetherspoon, it supports complimentary crisps with baguettes, this kind is bad for customers’ health and it didn’t distinguish the hot degree, this might cause customer’s discontented for the J D Wetherspoon. It also doesn’t have children’s meals. This will let the customers of adult unconvenient, and it may because the children are hurt. All of these can loss the customers.
O: J D Wetherspoon is managing he pub style as ‘quiet’. But now, it acquired the Lloyds pub chain, J D Wetherspoon develop it as another style. This kind of pub’s music dazed outlets with a much stronger entertainment element and show TV programs, this can attract much more customers. The company also begun developing budget hotel, this can develop another market and increase the profit of J D Wetherspoon.
T: J D Wetherspoon faced many computers, like Regent Inns, Punch Taverns and the supermarket. They will strive the share of market and the customer. The government policy also influences it. Like the limit of brewing and drink beer in the century of the city, this also can decrease the share of J D Wetherspoon.
(c).
Through a SWOT analysis an organization can assess its current position and make comparisons with competitors in order to plan activities and resources appropriately. It is the first stage of planning and helps managers to focus on key issues. It is important remember when carrying out a SWOT analysis that it is not absolute.
Simple rules for successful SWOT analysis like next:
¡ Be realistic about the strengths and weaknesses of the organization.
¡ Analysis should distinguish between where your organization is today, and where be in the future.
¡ Be specific. Avoid grey areas.
¡ Always analysis in relation to the competition.
¡ Keep your SWOT short and simple. Avoid complexity and over-analysis.
SWOT analysis is a kind of subjective and short term in its nature, so it can’t use to analysis long-term situation.
For example, when you analysis the opportunities, you can think about: where are the good opportunities available to our organization？

Section 2:
(a).
1. 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’. It acts as the social glue which holds the organization together. Research shows that the culture of an organization can significantly affect the way in which the company operates, particularly in terms of its effectiveness. Shared values become embodied in the organization’s ideology or philosophy and act as a quite to behavior and ways of dealing with anxiety.
In J D Wetherspoon pubs, it says that people are its best asset. The company is satisfied the staff, so this is its organizational culture. It has a flexible training policy which enables people from all kinds of different backgrounds to join the company. It is committed to lifelong training and it provides staff with opportunities to gain relevant qualifications such as those offered by the British Institute of Innkeeping, 20% of senior managers began as bar staff or cleaners.
2. Basic assumptions at a very fundamental, almost subconscious, level tell
employees how to perceive, think and feel about things. These are the elements of culture are unseen and not openly identified in the day-to-day interactions of the members of the organization. Culture elements at this level exist as ‘unspoken rules’ and are rarely discussed within the organization. They direct the way events and actions are perceived and interpreted by the organization.
In the case, J D Wetherspoon create a quarter of the space in each establishment is non-smoking.
(b).
A kind of recognized model of organizational culture is Terrence Deal and Allan Kennedy. It is based on how quickly organizations receive or strategies and the level of risk that they take. Deal and Kennedy 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. Through the case, we can know Tim Martin is a ‘big man’ in his company; he manages the company with his mind and idea, it company is include by the food industry, all the staff work hard every day, and then they will have a holiday for several days. So J D Wetherspoon is suit the tough work hard/pay hard culture.
The work hard/pay hard culture’s core value is keeping good customer service. In the case, the company has a ‘lifestyle guarantee’ which aims to give managers time for a life outside work. 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 The company always pays highly attention to the staff and the customers, and the information’s high-speed recreation, and the company also does these suggestions quickly.
(c).
Culture is something every organization has, but it is not a concrete entity. The culture of an organization impacts upon how that organization reacts to change and it also explains what an organizations stands for. 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’. The founders of the organization have traditionally had a major impact on the organization’s early culture.
Through the culture and the behaviors, in the company, the company built the pubs environment very quiet and let its staff work hard in several days and have a holiday in several days.
So, a kind of culture will have a kind of behavior.
(d).
The other type of Terrence Deal and Allan Kennedy of recognized model of organizational culture is process culture, it is focus on details and process excellence. However, the stress may come from internal politics and stupidity of the system. This kind of culture has slow feedback/reward and low risk. As a food industry, it pays attention on the result about the customers satisfied. So it isn’t paying much attention on the details and process. If the company becomes the process culture, it will bog down with how things are done and not with what is to be achieved.

Section 3:

(a)
In the Generic-Strategies---Michael Porter (1990), there are three strategies: cost leadership, differentiation and segmentation, niche or focus strategy.
1. Cost leadership is a low cost leader---gain competitive advantage from being able to produce at the lowest cost---‘cost advantage is the focuses’, the low cost doesn’t mean low price---gain the benefits. It in a broad market scope environment where it has a kind of substitute products and power competition.
2. Differentiation is differentiated goods and services satisfy the needs of customers, and the companies can de-sensitize prices and focuses on value-higher price and a better margin. So it needs to incur additional costs in creating its competitive advantage. It in a broad market scope environment is in that the customers’ loyalty can help the company limited and reduce new entrants and competitors.
3. The segmentation, niche or focus strategy is included cost focus and focus differentiation.
¡ The cost focus is a form aims at being the lows cost producer in that niche or segment, it in a narrow market scope environment like low cost than the differentiation in a niche.
¡ The focus differentiation is a firm creates competitive advantage through differentiation within the niche or segment. Its potential problems are small, specialist niches could disappear in the long term. Its associated environment is in the narrow market scope, you can use a special product from the major developed market competitors who have different purposes.
(b)
In the case, during the1980s and 1990S the company relied on organic growth by acquiring suitable sites and converting them into J D Wetherspoon pubs. And it is developing a style that is quiet, healthy and satisfied environment. In the case, we can see that it build non-smoking and provide health food to the customers. To its staff, the company thinks that people are its best asset. This style is more different with others.
In our case, all of these we have said, during the 1980s and 1990s, J D Wetherspoon is a pub chain, it has many pubs, the company’s aim is to manage the pub to satisfied with the customer, and it is always make its strategy in the pub chain, its all of actions like provide cheap beer and non-smoking area and so on, which are all of set the main point to its pub manage style.
So I advise that the company’s situation is suit Generic-Strategies---Michael Porter (1990), differentiation.
From the strategy, J D Wetherspoon gets more benefits, here I only identify four about it: the company build its own style and brand, it has its own customer group, the expansion about share and scope is growing quickly and the benefits is more than before.
(c)
During the 21st century, J D Weterspoon was facing much mire competition, and through the government’s policy limited, its develop was decrease and slowly, then it begain to change its style and acquired others, it serve breakfast and open earlier in the morning, support the family dining area, show televised football and so on. The company also began to manage other area like the hotel.
So it suit Generic-Strategies---Michael Porter (1990), segmentation, niche or focus strategy.
During the1980s and 1990s, the company relied on organic growth by acquiring suitable sites and converting them into J D Wetherspoon pubs. In the case, we can see that it build non-smoking and provide health food to the customers. To its staff, the company thinks that people are its best asset. It is Generic-Strategies---Michael Porter (1990), differentiation.
During the 21st century, it also pays attention to the staff, but it try to change its style, manage motel, and the food what has provided.
(d)
When a company was changing business strategy, it must be considering the factors, so as J D Wetherspoon .
¡ Exterior environment: by the start of the twenty first century, because of the retail licensing market had adapt to the changes in the “tied house” system and other competitor had been adapted it and developing their business. So J D Wetherspoon was facing much more competition. Many other competitors run the pub and receive the pay rent, this situation lead to saturation of the pub market. So J D Wetherspoon needs to change its business strategy.
¡ Policy: during 2002-2004, government allows the supermarket began selling drinks, particularly premium larger, at loss-leader prices. This means that the pub can not compare with supermarket in price. On the other hand, government concern about binge drinking and the consequent ant special behaviors, particularly in city centers. This lead the decrease of new pub number and shares of case form. They must to change to save their company.
(e)
Strategy is many things like plan, pattern,