商务文化策略.doc

F7J7 35: Business Culture and strategy

Assessment 1

Assessor: Qingchun Ma
Candidate: Wenzhi Duan
Words: 4587 words
SCN: 157042211
Submitted date: 22-4-2016

Table of Contents
1.0 Introduction…………………...………………………………………………….2
2.0 External environment……………………………………………………………2
2.1 PESTEL analysis……………………………………………………………..2
2.2 SWOT analysis……………………………………………………………….3
2.3 Guidelines for conducting SWOT analysis…………………………………4

3.0 Organizational culture………………………………………………..……….…6
3.1 Organization culture, “shared value”, “taken for granted assumptions”..6
3.2 A model of organizational culture………………………………….………..7
3.3 Organizational culture and organizational behavior………………………7
3.4 An alternative model of organizational culture…………………………….8

4.0 Business strategy……………………...………………………………………….9
4.1 Four possible strategies…………………………….………………………..9
4.2 Benefits of the strategy……………………………………………………..10
4.3 An alternative strategy……………………………...………………………11
4.4 Two factors influencing business strategy…………………………………12
4.5 Business strategy and strategic choice……………………………………..12
4.6 Key issues in the management of business strategy……………………....13

5.0 Change……………………………………………………..……………………13
5.1 Forces for change…………………………….……………………………..13
5.2 The factor leading to change in the organization…………………………15
5.3 Dealing with change…………………………………………………..……16
5.4 Analyzing a change situation and overing resistance to change…….16

6.0 Conclusion……………………..………………………………………………..17
Reference list………………………………………………………………………..18

1.0 Introduction
This report introduces the external environment through PESTEL analysis, and SWOT analysis; and organizational culture and organizational behaviour. This report also describes some information of business strategy, and analysis of two different types’ changes for the organization.

2.0 External environment
2.1 PESTEL analysis
PEST analysis refers to a framework for the using of macro environmental factors in strategic management of environmental scanning ponents. (SQA, 2006)

Political/ legal factors refer to many kinds of law, which can affect how a pany operates, its costs, and the demand for its products. Based on the case, the ‘tied house’ system had been broken by the MMC which limited the number of pubs which a brewer could operate. J D Wetherspoon has to obey the legal of MMC.

Economic factor include economic growth, interest rates, exchange rates, inflation rate, which has greatly affects how businesses operate and make decisions. (SQA, 2006)From the case, only pubs sell drinks before, but now supermarket and lots of new pubs began selling drinks, at lower prices during 2002-2004. With the increasing of supplies, the selling price of drink in whole area will be decreased as a demand of drinks is fixed. This economic factor has huge impact on JD Wetherspoon’s selling price, market share, and other impact that makes it difficult for pany to pete on price.

Social factors include the cultural aspects and health consciousness, population growth rate, age distribution, career attitudes and emphasis on safety, which affect the demand for a pany's products and how that pany operates. People pay more concern about their health, and all pubs and restaurants in UK are non-smoking places. Due to this social trend, J D Wetherspoon set space in each establishment was to be non-smoking.

Technological factors include technological aspects, which can determine barriers to entry, minimum efficient production level and influence the outsourcing decisions. J D Wetherspoon developed a new brand called ‘Lloyds Number One Bar’ which has various high-end technological equipments, such as plasma screens to show TV programmes to satisfied people’s needs.

2.2 SWOT analysis
SWOT analysis involved in a project or in a business undertaking. It involves specifying the current position and identifying the internal and external factors to achieve organisational goals. Strengths and Weaknesses are internal factors, Opportunities and Threats are external factors. (SQA, 2006)

Strengths are the business or projects that give it an advantage over others. Weaknesses are that place the business or project at a disadvantage relative to others. Opportunities are elements that the project could exploit to its advantage. Threats are elements in the environment that could cause trouble for the business or project.

Strength:
JD Wetherspoon has a training policy to provide training opportunity, and mitted to lifelong training for employees. Good quality employees is one of strengths for the enterprise, which can help JD Wetherspoon develop better.

Weakness:
JD Wetherspoon has to build from scratch when it entered into a hotel chain. The pany lack experience when they entered into a new area. So it is weakness of J D Wetherspoon. It requires JD Weherspoon cost a lot on their finance, time, and human resources to develop as other pubs.

Opportunities:
J D Wetherspoon need to choose to between brewing and retailer, J D Wetherspoon took this opportunity as a retailer to build from scratch. After ‘tied house’ system broken by a ruling from the MMC. JD Wetherspoon got the license trade which could provide opportunities for JD Wetherspoon to enlarge the business.

Threats：
In 21st century, J D Wetherspoon was facing much more petition; the number of increasing number of pubs caused the market over-supplied. It will affect the JD Wetherspoon’ s profits. Thus J D Wetherspoon had more stress as its threats.

2.3 Guidelines for conducting SWOT analysis
Business environment influence the pany a lot. S&W are internal factors, and they always depend on what the firms has done in the past. Managers need to identify them based on internal environment. For example, JD Wetherspoon has gained convenient location, good reputation, and staff loyalty. These are the internal factors which can identified the S&W.

PESTEL can be used to identify O&T for macro environment. In other word, JD Wetherspoon’s manages need to identify O&T for the pany firstly with PESTEL analysis.

Current S&W may base on the result of past O&T. The government limited the alcohol provided by pubs, it will be the T for the JD Wetherspoon. JD Wetherspoon now reduce the content of cocktail for customers, it would help the pany enjoy a high reputation on against drink problem. Then, it has bee to strength for the pany.

S, W, O, T is changing over time. To begin with, JD Wetherspoon did not have TV and serve crisps as a dissimilarity with other pubs is S for JDWetherspoon. But now people realized the important of healthy, so they did not prefer junk food anymore. At the same time, they did not has TV caused the pany lost the petiveness. Therefore it became to a W in that period. But the pany has TV later on, and help JD Wetherspoon win the petitive power. So it bees S in 2002.

SWOT analysis is important help the pany to identify the situation subjectively. It does not determine the strategy, but it usually be taken account when the pany needs to makes strategy bee more efficiency.

The organisation should take consideration on all of four elements together, they should not pay too much attention on W or T only if they want to take some measures according to SWOT analysis. Managers should find solution to overe W and T, and turn the W and T bee to S and O. And also, the pany should use its’ strength and catch the opportunity to get petitive advantages and develop better.

3.0 Organizational culture
3.1 Organization culture, “shared value”, “taken for granted assumptions”
Organization culture refers to a system of shared meaning between members of an organization or the way we do things here. Culture is a symbol of organization which discriminated from another, includes artefacts, espoused values and basic underlying assumptions.

Shared values are the organisations’ stated values and rules of behavior, which includes many elements such as strategies, goals, slogans, and mission statements. JD Wetherspoon thinks people are best assets of the pany, and give people lifelong training opportunities. Each employees recognizes this value within the organization. So this way will form a shared value that employees can be devloped.

Taken for granted assumptions are more informal and develop overtime to create an unseen and unopened rule to give managers direction, and lead the employees perceive things more correctly. JD Wetherspoon has toilets for customers with disabilities. There may not have any disabled customer use the toilet, but if there has disabled customer, they can use the toilet. JD Wetherspoon has already considered about the things will happened.

3.2 A model of organizational culture
Terrence Deal and Allan Kennedy’s culture model shows that different types of organization, have different receiving feedback or reward speed, and risks the organization should take. Deal and Kennedy is important for organization management, and this culture is suitable for JD Wetherspoon.

Work hard/ play hard culture is most suitable for JD Wetherspoon. This culture encourage the staff pleted the low risk task and has rapid feedback. As a chain of 44 pubs, JD Wetherspoon needs immediately feedback. For example, their frequency weekly meeting and broad meeting could let management receive feedbacks immediately. And if there is any issues of JD Wetherspoon, management let employees participate to discuss the issue immediately. Thus, the pany has high speed action. Therefore, the immediately feedback and high speed action will lead good-quality work and high-quality service for customers. The employees are promoted internal, and the human resource in the pany is stable. It is familiar of the pany to get know the background of employees. So the risk is low.

3.3 Organizational culture and organizational behavior
Organizational culture refers to a share meaning system among each member in the organization or the way of doing things. （SQA, 2006）Organisational behaviour is a kind of reaction of change both for internal and external environment, and it refers to the way of human elements behave as a result of organsiational culture in an organization.

Organization culture is consistent with organization behavior, what organization culture the pany selected determined the organization behavior. Organizational culture can guide the behaviors while the behavior can influence the organizational culture. The culture will help to dictate the behavior, and the behavior will e back around to reinforce the organizational culture.

Due to the selection of the work hard / play hard culture in JD Wetherspoon, this pany needs staff to be enthusiastic and reach high standards. Organization culture which place great importance on listening to, actioning on, and feedbacks from staff could affect organization behavior to help promote the business target achieves. Organization culture in JD Wetherspoon would also help the pany ensure the ogranisation behavior on pursuing of innovation and service quality, and staff would develop their skills and knowledge by lifelong training to meet the each customer's needs. Create this sort of culture and ensure everyone in the firm know about this culture. Everyone in this organization is willing to pete initiatively to fulfill their abilities, which could help pany to develop better.

3.4 An alternative model of organizational culture
JD Wetherspoon could adapt tough guy culture. This culture developed by Deal and Kennedy, and it focus more on present instead of the planning in the future. (SQA, 2006)

This culture has quick feedback as same as Work hard/play hard culture. For example, the weekly meeting, broad meetings, and news letter of JD Wetherspoon all shows the quick feedback of the pany. Weekly meeting of JD Wetherspoon requires management and employees participate immediately can make contributions. The meeting is frequency means the employees participate frequency.

And another difference between work hard/ play hard culture and tough guy culture are high risks and reward. And as for JD Wetherspoon entered into the hotel industry, they need to be decisive and careful. So this decision suffers high risks. And stress es from risks and potential loss or gain of reward which focus on present rather than future. JD Wetherspoon would faces high risk because of the tough guy culture. When traditional link are broken, JD Wetherspoon enter the market as a retailer with no connections with any brewery. It is high risk to maintain their operation, and it is difficult to avoid dangers and catch interests for JD Wetherspoon. But JD Wetherspoon faces the challenge well to take effect measures to change. Therefore, JD Wetherspoon is successful.

4.0 Business strategy
4.1 Four possible strategies
Selection strategy is a direct impact on the development of the organization and in the future, we can adopt different strategies to solve different problems.

Cost leadership strategy
This strategy refers to use low cost to obtain the petitive advantage in the market. The low production cost and low modity prices can help organisations gain petitive advantages. Plant establishment and maintenance, personnel recruitment and training can reduce production cost.

There will be lots of petition in business environment. Low cost can help pany gain petitive advantages. Furthermore, if JD Wetherspoon adapts this strategy, the pany would attract customers who prefer same products with lower price, and gain petitive advantages.

Differentiation strategy
Differentiation strategy refers to the products or service is unique. Providing products and services for a premium price to meet customer demand, in order to create superior products, and have a sustainable petitive advantage. 

The drink is the production of different types of pubs to meet the customer. From the case study, JD Wetherspoon provides family areas and breakfast areas for customers, and differentiated services to win customers, and achieve sustained petitive advantage. The pany paid attention to the pany's products in order to attract different groups of customers.

Segmentation, niche or focus strategy
The Segmentation strategy is also known as a niche or focus strategy. The generic strategy of focus rests on the choice of a narrow petitive scope within an industry. Cost focus strategy emphasis produces products or service with lowest cost. Differentiation strategy emphasis produces special products or service which is unique. (SQA,2006)

This strategy only can be adapted by small business for short-term. If a branch of JD Wetherspoon followed the differentiation focus strategy to create more unique service or product, such as invite singers to perform could help pany attract more customers and gain more petitive advantages.

Prospector strategy
Prospector refers t