BusinesscultureandstrategyDE3X35Trade07WEIWEI1IntroductionJDWetherspoonplcwasfoundedbyTimMartinwhoopenedthefirstJDWetherspoonpubin1979.Hebasedhismodelforapubona1946essaybyGeorgeOrwellwhichreferredtoanimaginarypubcalled‘MoonunderWater’.JDWetherspoonbecameaplcin1992atwhichtimeitconsistedofachainof44pubs.Itnowhasover600pubs,whichmeansthatithasexpandedonaverageattherateofaboutonenewpubeachweek.MuchofthesuccessofJDWeatherspoonduringthelasttwodecadesofthetwentiethcenturywasattributedtothefounder,TimMartin.Heisacontroversialandunusualcharacterforabusinessman.Inhiscapacityasexecutivechairman,heregularlytraveledroundthecountryvisitingpubsand,whenhedidso,hecarriedallhisbusinessdocumentsintwoplasticsupermarketcarrierbags.Inthisreport,itspurposeistoindicatefoursectionswhichExternalenvironment,OrganizationalcultureBusinessstrategyandChangeareconcerninginJDWissues.Section1ExternalenvironmentA.“SPELT”analysisSocialfactorInthearticle,thereareexamplesofsocialfactors.Mostpubsnowhaveadedicatedfamilydiningareawherechildrenandadultscaneattogether.Theareaisrestrictedandlimitedtomealtimesonly.Childrenarenotallowedinthebarareasandcompanybelievesitdoesgreatlyaftertheatmosphereofthepubs.Thepubshaveagreatruletorestrictchildren.Childrenareatyoungage,TechnicalfactorTheyneededucation.Pubsarebadforthem;itwillbotherthesocialsecurity.Itnowhasmorethantenofthesehotels,allofwhichhavebarfacilitiesattachedtothem.Thisistechnicalfactor.Inordertoattachcustomer,thepubsmustusehightechnologyandequipit.EconomicfactorsJDWetherspoonhasover600pubsandeachhasaventilationsystem(costmorethan﹩100,000).Inall,itcostmorethan60,000,000.Aimtoensurethatcustomerdonotleavesmellingofsmoke.Customersarefirst.Itiseconomicfactors.BusinesscultureandstrategyDE3X35Trade07WEIWEI2PoliticalfactorsTherewasincreasingpublicandgovernmentconcernaboutbingedrinkingandtheconsequentantisocialbehaviorparticularlyincitycenters.Itbelongstopoliticalfactors.Governmentconcernaboutbingedrinking,theyintervenedthebehaviorandtakemeasures.Pubscannotbeseentobeencouragingthisstateofaffairsasitbringsthembadpublicity.LogicalfactorThetraditionallinkbetweenthebrewingcompaniesandpubsknownasthetiedhousesystemhadbeenbrokenbyarulingfromthemonopoliesandmergerscommissionwhichseverelylimitedthenumberofpubswhichabrewercouldoperate.Thisrequiredtoconsidertheimplicationsoflegislation,bothinitspoliciesandprocedureandregardtothemarketinwhichitoperation.JDWetherspooninthe21thcenturyiscompetitiveandsevere.Itisfacingmuchmorecompetition.Whatismore,ithasmanyproblemsduringtheoperation.(b)“SWOT”analysisStrengthsandweaknessesTheinternalfactorsarestrengthsandweaknesses.AlthoughJDWetherspoonfacedbigchallenge,TimMartinstillkeepsuptheplan.Hecontinuestoholdover15%ofthesharesandtoinfluenceandcontributetothewaythebusinessoperates.ThebasicapproachtoJDWetherspoonoutletsremainsunalteredbutithasmadesomechangeswhicharegoodforitspubs.JDWetherspoonhasalsorevieweditoperations.Itremainsasuccessfulbusiness.Pubsnowservebreakfastandopenearlierinthemorningbeforenormallicensinghourbeginat11.00a.m.Completingtootherpubs,itwillgetmorecustomers.ButJDWetherspoonalsohasweakness.Hegaveupdaytodaycontrolin2004tobecomenonexecutivechairmanworkingtwodaysweek.TheinfluenceisserioustoJDWetherspoon.OpportunityandthreatsOpportunityandthreatsareexternalfactors.JDWetherspoonrevieweditopportunity.In2002,itacquiresLloydspubchainconsistingof10pubs.Sincethen,IthasdevelopedtheLloydsNumberOneBrandandgreatlyincreasedthenumberofoutlets.ButJDWetherspoonalsohasthreats.Forexample,themarketnowappearstobeoversupplied.Itcompeteswithsupermarket.Firstly,supermarketbegansellingdrinks,particularlypremiumlager,atloss-leaderprices.(c)AdvicetomangertousetheSWOTTherearesomesimplerulesforsuccessfulSWOTanalysis.Forexample,berealisticaboutstrengthandweaknessesoftheorganization.Analysisshoulddistinguishbetweenwhereyourorganizationistodayandwhereitcouldbeinthefuture.Whatismore,alwaysanalyzeinrelationtothecompetitionandkeepyourSWOTshortandBusinesscultureandstrategyDE3X35Trade07WEIWEI3simple,avoidcomplexityandover-analysis.SWOTshouldalwaysbeused,andthenyoucanfindtheweaknessesintheorganization.JDWetherspooncandevelopmarketsuchasinternet,movingintonewmarketsegmentsthatofferimprovedprofitandimprovethelocationofbusinessandqualityofgoodandservices.Section2:Organizationalculture(a)OrganizationcultureinJDWOrganizationcultureOrganizationcultureisthepatternofassumptions,valuesandnormssharedbyorganizationmembers.Researchshowsthatthecultureofanorganizationcansignificantlyaffectthewayinwhichthecompanyoperates,particularlyintermsofitseffectiveness.JDWetherspoonintermofsharedvaluesandtakenforgrantedassumptionsintheorganization.Oneisthatvalueconcernedwithwhatoughttobeinanorganization.Normsguidethewayemployeesshouldbehaveinparticularsituations.Theotheristhatbasicassumptions,which,ataveryfundamental,almostsub-consciouslevel,tellemployeeshowtoperceive,thinkandfeelaboutthings.Artifactsarethevisibledemonstrationofthecultureofanorganization.SharedvaluesInthecase,companysharedvaluesintheorganizationcultu