1、 business culture and strategy yang qibusiness strategy and culturetutor: tong chuanstudent: yang qi目錄introduction3discussion3section a3a)examples of spetl analyze.3b)swot analysis6c)guidelines for management use7section b8a)organization culture in jdw8b)the type of culture in jdw9c)the relationship

2、 between organization culture and behavior10d)management approach to different organization culture10section c11a)possible strategies and indicate business environment11b)what strategy jdw followed during 1980-1990s12c)compare two strategies in terms of influence and on the behavior of the organizat

3、ion13d)what has consider before changing its strategy14e)illustrate the connection between business strategy and strategic choice.14f)key issues to manage its business strategy15section d16a)why the strategy of jd wetherspoon changed over time16b)one factor which may lead to change in jdw16c)the rol

4、e that management play dealing with changes in 200017d)advice give to the management of jdw help and analyze change situation overcome any resistance to change17conclusion19reference20introductionthe jd wetherspoon plc was founded by tim martin who opened the first jd wetherspoon pub in the 1979. it

5、 based the model for a pub on a 1946 essay by george orwell which referred to an imaginary pub called moon under water. in the 1992, the jd wetherspoon became a plc which time it consisted of a chain of 44 pubs and now it has over 600 pubs. in 2002, about 10 years after flotation, its share price ro

6、se to more than ten times its original value. this report has 4 sections. section a is going to give examples of external environment which have affected the way jd behaved. moreover, using a swot analysis, explain the relationship between jd and the environment it is facing during the early years o

7、f the 21st century. section b aims at explains the organization culture and organization behavior in an organization. moreover, the report will explain the type of culture that the organization has using a recognized model of organizational culture. section c mainly evaluates the business strategy t

8、hat jd adopted and how to manage strategy within an organization. section d deals with the times change which affect jd wetherspoon directly and give some recommendations for these negative changes.discussionsection aa) examples of spetl analyze.the social factorpub suit for the traditional culturet

9、he uk social culture is traditional concept, so the jd wetherspoon pubs dont play music or show tv programs. secondly, the uk social culture is pursue the higher standard living, so that the jd wetherspoon pubs not serving complimentary crisps with baguettes, were health conscious and almost always

10、left the crisps, introducing a hotness rating on the curry menu.entertainment element at the beginning of 80s, younger generations of customers want to enjoy music or an evening out, therefore, wetherspoons need to transform from tradition to entertainment in order to remain competitive.the technolo

11、gical factorventilation systemeach of the ventilation systems cost more than 100,000 pounds. it aims to ensure that customers do not leave smelling of smoke.security systemit now has more than ten of these hotels, all of which have bar facilities attached to them. this is technical factor. in order

12、to attach customer, the pubs must use high technology and equip it. jd provide ventilation system in each pubs for customers to give a clear indoor environment.the economic factoreconomics crisisas know that in the beginning of 21st century has a big economic crisis in the work, it cause the economi

13、c environment of british is not prosperity. so more and more company redundancy the employees, it will be make a large number of people loss the job, moreover it cause the income is down and the peoples buy power is decrease. consumer behavior because in the supermarket, the wine and beer is cheaper

14、 in the pubs, some more and more people like buy some wine go back home rather than go to the pubs. so that the jd wetherspoon have to expand business areas which it has begun developing budget hotel, the jd wetherspoon pubs now serve breakfast and have a dedicated family dining area where children

15、and adults can eat together. it will be immediately make more profit for self-help.political factorjoin the eurothe uk government considers make the pound join the euro aim to euro integration. it is a dispute for the british, because if the pound joins the euro, it causes the depreciation of sterli

16、ng so that the commodity price will be increase. this point is very important for the jd wetherspoon pubs, because it will be make the customer will pay more cash for the alcohol. so that the martin is a noted euro-sceptic and in 2002 printed 500,000 beer mats and put up 10,000 save the pound poster

17、s to encourage customer to think about the issue while they drink.unemployment factorsthe government applied monetarist policies to reduce inflation, and reduced public spending. deflationary measures were implemented against the backdrop of the early 1980s recession, leading to 100.000 being added

18、to the unemployment register every month, the early 1980s recession saw unemployment saw unemployment rise above three million, it directly led to pub industry economic losses.legal factorgovernment policyin this case, it show some legal for the pubs, for instance, the government concern about binge

19、 drinking and the consequent anti-social behavior, particularly in city centers, beer tax. it made the less of people go to the pubs. so the jd wetherspoon pubs have to diversify operation, for example, it serve the breakfast and open earlier than licensing hours begin at 11.00 am. opportunity j d w

20、etherspoon seized the opportunity of political stability and positive economy trend to expand smoothly. besides, j d wetherspoon owned its outlets, therefore it can easy to control its outlets based on wide span of control. minimum human resources waste on management caused by j d wetherspoon is a c

21、entralized structure.threatas government issued the social policy, pubs cannot be seen to be encouraging binge drinking and the consequent anti-social behavior. j d wethspoon suffered a resistance from social policy, the market shrunk due to competitor adopts different approach to share the market,

22、and the company has to change the strategy as a result. the cost of changing will delay the development.b) swot analysisstrength1 jd wetherspoon has a perfect communication in the company. as know that the jd wetherspoon places great importance on listening to and acting on, it has two-way communica

23、tion from members of staff on all aspects of the business about the feedback. moreover, the jd wetherspoon owned some fantastic facilities, for instance it has a ventilation system in each pubs.strength2high degree of staff loyalty thanks to the companys training policy. staff is willing to work due

24、 to their advice or recommendation could be adopted by the board if it makes sense.weakness1but jd wetherspoon also has weakness. jd wetherspoon follow the british traditional culture, so the jd wetherspoon pubs dont has any fashion facilities, for example they dont have the tv and music, so they lo

25、ss of customer. chairman gave up day to day control in 2004 to become non executive chairman working two days week. this seriously influence jds marketing activity.weakness2government concerns about binge drinking which would result anti-social behavior. opportunity1 jd wetherspoon reviewed it oppor

26、tunity. 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. opportunity2the music based outlets with a much stronger entertainment element has been adopted in some j d wetherspoon outlets.

27、younger generation would like to consume the pubs like this.threat1but jd wetherspoon also has threats. for example, the market now appears to be over supplied. it competes with supermarket. supermarket began selling drinks, particularly premium lager, at loss-leader prices.threat2supermarket began

28、selling drinks, particularly premium lager, at loss-leader prices. therefore, niche market and fierce competition has coming.c) guidelines for management useoperations in communication s1-t1the company has a perfect communication in the company. as know that the jd wetherspoon places great importanc

29、e on listening to and acting on, it has two-way communication from members of staff on all aspects of the business about the feedback. as a strong competitive factor they should extend services to drinking-off period to attract more customers.developing high degree of staff loyalty s2 to t2high degr

30、ee of staff loyalty avoids j d wetherspoon lose the number of staff in high unemployment. it helps the company pull through the risk of unemployment.section ba) organization culture in jdwthe organizational culture is the basic assumptions, shared values and beliefs that guide the way organizational

31、 members behave toward each other and approach their work. shared valuesthe shared values are the norms of behavior which run around the organization. according to the case, the jd wetherspoon shows the democratic leadership in the organization values. the companys operation is involvement and commu

32、nication. staffs are kept in touch with weekly newsletters, a monthly company video and by publicizing the minutes of board meetings. the norms and values of a culture are effectively the rules by which its members must abide.granted assumptiontaken for granted assumption are more informal and devel

33、op over time often in the form of low profile symbols such as physical symbols, stories and common language. in this case, wetherspoons listening policy is based on a system successfully pioneered by the hi-fi retailer, richer sounds. julian richer, owner of the company, acted as a consultant to jd

34、wetherspoon. the martin eventually became a regional manager. the manager can use this way to reduce positive mood move into the job and improve the loyal for the jd wetherspoon.b) the type of culture in jdworganizational culture is a system that people can use to classify what a businesss personali

35、ty and ethos is like. according to charles handy “the gods of management” 1985 there are 4 types of culture each based upon a greek god.centralizedzeusautocraticinformalpower cultureapollobureaucraticformalrole culturedionysusanarchicindividualistic cultureathenamatrixtask-based culturedevolved(figu

36、re1)for jdw it represents for zeus culture which means power culture. as figure1 show the characteristics of the four types of culture jd wetherspoon is typically zeus culture. this type of culture looks to people with power but it may not always be formal power-holder. also obtain demonstrate spons

37、orship. jdw was founded by tim martin and based his model for pub. and all the new pubs provide the atmosphere and facilities which tim required. during the last two decades much of the success of jdw was attributed to the funder tim martin. so it was centralized but informal one which tim martin wa

38、s the power man.c) the relationship between organization culture and behavior the organizational culture decides the organizational behavior. according to the case, the jd wetherspoons culture is zeus culture. power and influence emanate from the centre is the key feature for this culture. chairman

39、regularly travelled round the country visiting pubs come out his business plan through this kind of travel. he is a noted euro-sceptic and add his political stand into the daily business, although union leader and others condemned his action but he justified them by using the method poll among compa

40、ny staff which showed 90% were support his stand and 95% customers were happy for the pubs to be used in martins no campaign. ideas and suggestions are discussed each week in company meeting and staff are rewarded for their suggestion, staff can also discuss company issues with board members.d) mana

41、gement approach to different organization cultureif jd wetherspoon adopt other organization culture like athena culture individuals are expects in their jobs and come together in project or task group. this would required the management approach to be more flexible based on different project as diff

42、erent department in the company should have a open communication. and systems and methods are transient as the group applies its energies and commitment to the task. so the different organization culture made the different organization behaviour.time80s-90s21centuryculture changingpower culture (zeu

43、s)task culture (athena)behavior changing in jdw the management and staff are surround by one person and the work decide by one person the work will have more communication between management and staffbehavior changing tim martin focus on oneselfdedicated more on employee and give them more flexibity

44、section ca) possible strategies and indicate business environmentoverall low-cost provider strategylow-cost provider strategy means low overall costs, not just low manufacturing or production costs. price competition is vigorousproduct is standardized or readily available from many suppliersthere ar

45、e few ways to achieve differentiation that have value to buyersmost buyers use product in some waysbuyers incur low switching costsbuyers are large and have significant bargaining powerenvironment conditions: make achievement of meaningful lower costs than rivals the theme of firms strategy; skill i

46、n designing products for efficient manufacturing.board differentiation strategy incorporate differentiating features that cause buyers to refer firms product or service over brands of rivals.there are many ways to differentiate a product that ave value and please customersbuyer needs and uses are di

47、versefew rivals are following a similar differentiation approachtechnological change and product innovation are fast-pacedenvironment conditions: highly skilled and creative product development team; strong sales team with the ability to successfully communicate the perceived strengths of the produc

48、t; need to value and please customers when buyer needs and uses are diverse.focus low cost strategythe focus strategy concentrates on a narrow segment and within that segment attempts to achieve either a cost advantage or differentiation. a narrow price of the total market the appropriate environmen

49、t includes where buyers have distinctive preferences, special requirements, or unique needsfocused differentiation strategyin differentiation focus a firm seeks a cost advantage in its target segment. it focus exploits the special need of buyers in certain segmentsbest-cost provider strategydeliver

50、superior value by meeting or exceeding buyer expectations on product attributes and beating their price expectations. be the low-cost provider of a product with good-to-excellent product attrivutes, then use cost advantage to underprice comparable brands.environment conditions: where buyer diversity

51、 makes product differentiation the norm. where many buyers are also sensitive to price and valueb) what strategy jdw followed during 1980-1990sduring the 1980s and 1990s, j d wetherspoon adopted the board differentiation. they provided the differentiated goods and services to meet the needs of custo

52、mers in a wide market. for example, they sell a wide range of real ale beers at relatively low price; good quality wine is available; they do not play music or tv programmes; at least a quarter of the space in each establishment is non-smoking; each has a ventilation system which aims to ensure that

53、 customers do not leave smelling of smoke; particular attention is paid to the toilets, including the provision of specially adopted toilets for customers with disabilities.there are four benefits of using this strategy on j d wetherspoon plc: 1) the pubs expanded on average at the rate of about one

54、 new pub each week.2) it opened over 90 new pubs and over 50% of the finance for the new developments came from cash generated by the business. 3) in 2002, about 10 years after flotation, its share price rose to more than ten times its original value.4) the good services and goods attracting more an

55、d more customers.c) compare two strategies in terms of influence and on the behavior of the organizationduring the 1980s and 1990s the company relied on organic growth by acquiring suitable sites and converting them into j d wetherspoon plc, rather than buying the other pubs. 80s- 90s 21th strategyb

56、road differentiation strategyfocused differentiation strategybehavior 1 hand one brand only, just j d wetherspoonin 2000, it acquired the lloyds pub chain consisting of 10pubsbehavior 2 pubs based on the same model. do not including entertainment element.a minority of j d wetherspoon outlets did hav

57、e tv screens for entertainment. e.g. football tournament.in the twenty first century, market challenger compete its market statues, and the market appears to be over-supplied. so jd wetherspoon adopted strategy in focused differentiation strategy. it serves breakfast and open earlier in the morning,

58、 support the family dining area, show televised football and so on. the company also join other industry like the hotel.j d wetherspoon is going on different businesses, the previous management style is not fit now. d) what has consider before changing its strategyexternal environment: by the start of the twenty first century, because of the retail licensing market had adapt to the changes in the “tie