Business culture and strategy

1、businesscultureandstrategywith economic development fast, the business market becomes normal and mature more and more. the company who may success in a industry must have some special characteristics, such as innovation ability, advanced technology and management, unique business culture and strateg

2、y to form core competitiveness. nevertheless, some characteristics such as technology and management way may be followed by others soon. but the business culture and strategy can not be copied difficultly. what is more, the business culture and strategy becomes one key successful factor for lots of

3、famous companies as well as j d wetherspoon. in the report, i will analyze the subject of business culture and strategy with a case of j d wetherspoon. the report includes five parts of contents: analyzing external environment of j d wetherspoon, explaining organizational culture of j d wetherspoon,

4、 analyzing business strategy of j d wetherspoon, how to change strategy with different environment and why choose an organization of j d wetherspoon as case. section 1: external environment of j d wetherspoon1.1 the content of external environmentevery organization faces one complex social, technolo

5、gical, economic, political and legal factors which have affected its operation and behaviors severely. j d wetherspoon found in 1979 experienced different outside environment. some outside resource does certain positive affect to the company. during the 1980s and 1990s the company mainly relied on o

6、rganic growth by acquiring suitable sites to gain competitiveness. for good site may gain more attention from consumer, supplier and other relative subjects. of course, social environment also largely influence the companys strategy as well as economic and technological environment. for example, wit

7、h the restrained social policy, that pubs cannot be seen to be encouraging binge drinking and the consequent anti-social behaviour, particularly in city centres, the saleroom decreased at the same time. 1.2 analyzing the environment of j d wetherspoon by swothere, in the 21st century, j d wetherspoo

8、n has faced one special environment completely different from the 20st century. the analysis methods of environment include several ones in which swot analysis is most popular at present. swot just analyzes the strength, the weakness, opportunity and treat of the company according to its surrounding

9、. the strength of j d wetherspoon: firstly, it has a long development history and already itself organization culture accepted by staffs and clients. secondly, its size, over 600 pubs, may bring out more profit than other small company. thirdly, the product price sold has enough competitiveness. las

10、tly, the staffs quality and loyalty are higher for its training policy, promoting system and recognition degree.the weakness of j d wetherspoon: firstly, the basic approach to j d wetherspoon outlets remains unaltered mostly so that it difficultly adapts to the competition surrounding. for example,

11、the business range is too narrow to meet client needs. secondly, the management way too delays the industry development. finally, its customers are limited in some aspects such as limit the children in the pubs. the opportunity of j d wetherspoon: firstly, the old customers recognition and loyalty g

12、ive the company to sustain its development orientation. after all, the company is a famous brand in the past decades. secondly, its management layer is completely aware of its weakness and will to actively alter the present condition and do some innovation such as increasing its other business, supp

13、lying some different pub style to meet special client demands. lastly, in 2000, the company acquired the lloyds pub to strengthen its energy.the treat of j d wetherspoon: firstly, the competition in the industry becomes drastic more and more. especially some companies become stronger and stronger. s

14、econdly, the outside environment changes too quickly to influence its operation such as discouraged social policy, uncertain client needs, fast developing economy and so on. 1.3 how to conduct a swot analysisthe swot method often is used to analyze one outside environment. so it is important to mast

15、er it. in my opinion, the analysis process includes several steps as the following shows: at the beginning, we should detailedly investigate the inside and outside condition by questionnaire, and collect relative data supplied by kinds of layer staffs, which is the important step.the second step is

16、to filtrate and analyze the data and condition acquired by the first step to form useful information. as we know, the data or condition may be imprecise or deficient so that we need to tell the useful and useless data and get rid of the mistake one. except that, if the information is deficient, we s

17、till analyze what we are lack of and collect further. the third step is to determine which the strength, weakness, opportunity and treat are according to useful information. the last step is to choose relative method to strengthen its strength, decrease its weakness, grasp its opportunity and solve

18、or avoid its treat, which is the key step. the above content may be simply distinctly described like the below picture1.collect datafiltrate and analyze dataanalyze environmentsolving strategystep1step3step4step2picture1 the steps of conducting swto analysissection 2: organisational culture analysis

19、2.1 organisational culture of j d wetherspoonorganization culture just points the whole value idea, moral idea, shared value and behavior model of member in an organization. organizational behavior is indirectly influenced by organization.j d wetherspoon based one model for a pub on a 1946 essay by

20、george orwell which referred to an imaginary pub called moon under water. this offered cheap beer, good conversation and solid architecture. as a result, the company motto of j d wetherspoon is cleanliness, beer, service and maintenance. in a word, j d wetherspoon attaches importance to good product

21、 quality and excellent humanistic service. as a result, the company must carefully choose finer suppliers, check product quality in detail, try to improve services service level, think over clients material and spirit demand and so on, even with high cost. what is more, wetherspoons has consistently

22、 claimed that people are its best asset so that it supplies every staff chance to improve them by training and finally realize the staffs value by being potential management material. as a result, whosesoever, both the workforce and clients are the same important for j d wetherspoon.2.2 organisation

23、al culture style of j d wetherspoonj d wetherspoon emphasizes peoples importance and tries to meet every ones demand. such organization culture should be humanistic management theory actually. its contents generally includes: human management is the first; the way to urge staff working hard is to in

24、spire them with promoting, adding salary, material and spirit encouragement and so on; in order to reach the consistent of company and staff, build harmonious human relationship; try to actively exploit human resource, the core of which is to dig staffs potential ability and the key of which is to i

25、mprove staffs quality; finally, forwardly foster and fully exert team spirit, because the team energy is far larger than individual one. j d wetherspoon belongs to service industry so that the product supplied points not only beer but also the service. in addition, it must directly face and serve a

26、lot of clients every day. so the center of j d wetherspoon is to meet peoples needs. these are the reason why i have thought this type of culture as j d wetherspoons organization culture. 2.3the relation of organisational culture and organisational behavioursince the organization culture of j d weth

27、erspoon is one type of humanistic culture, they must carefully think over every aspect of humanistic behavior. for example, good quality wine is available at a relatively cheap price; at least a quarter of the space in each establishment is non-smoking which has a ventilation system to ensure that c

28、ustomers do not leave smelling of smoke; particular attention is paid to the toilets, including the provision of specially adapted toilets for customers with disabilities, and so on. these show the organizational behaviors just express the central idea of humanistic management. in fact, each differe

29、nt organization culture should actively adopt different organizational behavior. so if the company should apply another culture, it must choose other behavior to gain its purpose. the humanistic culture may compare with the formal traditional culture. the formal traditional culture demands the staff

30、 must strictly obey organizational system. each work must comply with the operation process. and also the mine or beer and service must be designed certain quality standard. it emphasizes behaviors standard. section 3: business strategy of j d wetherspoon3.1 possible strategies which the organizatio

31、ns may adopt in fact, business strategy has a lot of sorts, such as price strategy, differentia strategy, service strategy, stabilization strategy, culture strategy, technology strategy, low cost strategy, etc. however, different business environment would be appropriate for different strategy, for

32、some strategies collide with each other. of course, it does not say that the organization just may choose only one strategy as well as j d wetherspoon. at one hand, each strategy has certain advantages and disadvantages. on the other hand, business environment is very complex and may be adopted by s

33、everal strategies at the same time. according to the environment analysis by swot, i think it may adopt price strategy, service strategy, differentia strategy and stabilization strategy. for the first one, j d wetherspoon provides the product with relatively cheap price, which go deep into clients c

34、oncept and is recognized by them. as a result, it fits to continuously keep such tradition; otherwise some old consumers maybe dislike the change. for the second one, it points the company must emphasize and constantly advance its service. after all, the company is a service industry.for the third o

35、ne, as we know, the available competitiveness is to form itself exclusive feature different from other companies. in a drastically competing market, many small and middle companies gain success just for its differences except some large companies. and also j d wetherspoon may do the same. for exampl

36、e, they do not play music or show tv programmes in the pub in order to meet some clients need. what is more, since j d wetherspoon has over 600 pubs, they may manage by supplying different service. for the fourth one, j d wetherspoon already has nearly 70 years history and now its size is relatively

37、 large. except that, the present condition is still austere, which induces to the performance decreasing during the past years, for the competition is drastic. as a result, the company should develop steadily in the future years.3.2 the strategies did j d wetherspoon follow during the 1980s and 1990

38、sduring the 1980s and 1990s, the monopolies and mergers commission which severely limited the number of pubs which a brewer could operate broke the traditional link between the brewing companies and pubs. in order to adapt to the environment change, j d wetherspoon chose to reduce its business and g

39、ive up their brewing operations or their chains of public houses and hotels. and then it concentrated on retail. in fact, its choice was very correct. for the company benefited a lot from that choice. one is that its resource may fully support its reserved business. the manager may control its opera

40、tion further. the pubs business can not be limited and influenced by brew. the last one easily adapted to the changing environment. at the start of the 21st century, the whole industry has been an increase in the number of pubs. in town and city centers, in particular, the market now appears to be o

41、ver-supplied. as a result, the importance of the company is to search more business by enlarging its service range. for example, pubs now serve breakfast and open earlier in the morning. during the 1980s and 1990s, however, the company relied on organic growth by acquiring suitable sites and convert

42、ing them into j d wetherspoon pubs. so its strategy paid more attention to advantage resource. at the latter time, the key resource may mainly determine its successful rate. but for the former, it is impossible to only depend on one resource. in conclusion, the business strategy should be altered wi

43、th the environment changing. 3.3 the connection of business strategy and strategic choicethere are always many business strategies which may be chosen. however, how to choose strategy? some companies just choose one strategy according to environment, and some choose two or more. in fact, a key facto

44、r between business strategy and strategic choice determines how to do the work. the inside and outside environment asks organization to choose one or more strategies to realize organizational purpose as well as j d wetherspoon. at the beginning, it chosen to manage retailing and brewing, for the env

45、ironment allows the company to multi-manage. nevertheless, during the 1980s and 1990s, the company had to change the former strategy to manage retailing only. except that, after 2000, new environment appeared so that it changed its strategy again. that all shows it is uncertain about business strate

46、gy and some factors should be taken into account when choosing strategic style. 3.4 the key issues of management business strategythen what factors has j d wetherspoon had to consider before changing its business strategy? in my opinion, the factors should be divided into two aspects: one aspect poi

47、nts the inside factors such as resource condition, organization strength, organization structure, management character, product characteristic, productive condition and technology etc; the other points the outside factors such as clients demand and characteristic, industrial policy and standard, eco

48、nomic policy and environment, technique level, competition condition etc. at present, j d wetherspoon still has had to take account of some key issues, when it manages its business strategy. at one hand, the management of business strategy can not be too renitent. some people always think that the b

49、usiness strategy should not be changed every now and then. but i do not think so. when the environment gravely alters or the strategy can not availably respond to companys development. on the other hand, we can not go to the other extremeness, which the strategy can not be changed by chance. the bus

50、iness strategy, after all, is a long plan. so we should weigh whether the strategy must be changed. section 4: strategy and environment change4.1 why the business strategy changed over timesome one maybe question that why the strategy needs to be changed, since the strategy is so important. as the a

51、bove shows, when some key factors changed, the strategy already can not meet company demand as well as j d wetherspoon. in the 1980s and 1990s, monopolies and mergers commission forced the company to change. in the 21st century, there are so many similar pubs competing with j d wetherspoon that it t

52、ried to search new method to improve its competitiveness. for the j d wetherspoon, its forces for change of strategy mainly come from outside environment. in fact, if the inside environment changes largely, the strategy should be changed too.here, i take social responsibility to explain how the fact

53、or could lead to change in j d wetherspoon. every one and every organization should take on certain social responsibility, for they all are members of the society. for example, the society discourages binge drinking. so the company must concern about such affair. sometimes policy which should be obe

54、yed limits some organizational behavior. 4.2 how to deal with the changessince the year 2000, the company developed fast at the rate of over 90 new pubs and over 50% of the finance each year. the management of j d wetherspoon just grasped the development chance. as a result, its share price rose to

55、more than ten times its original value about 10 years after flotation at the year of 2000. the executive chairman, tim martin, regularly travelled round the country visiting pubs to understand and learning the other companys operation. except that, he asked consumers to advise about the service and

56、investigated the staff to poll its business. these work helped the manager know how to manage the business. so the management played an important role in dealing with the changes.4.3 analyze a change situation and overcome its resistance to changehowever, how to face the environment changing? the ma

57、nager should pay attention to the relative information every now and then so that he may respond to that on time. and then the company should compare the new condition with the operation of the company. if the comparison result is not accordant relatively, the management should change certain operat

58、ion style, or even choose new business strategy. of course, the information coming from outside should be checked its facticity, validity, and reliabilityafter the leader determines to alter the condition, there must be some resistances to change. the reason includes: some one worries to loss his po

59、sition, power and benefits; some one does not recognize the new innovation; some one dislikes the uncertain change. in order to actualize the new process, the manager should overcome the above resistances. for the first one, it should make up them by supplying certain benefit, or directly ask them to comply with. for the second and the third one, the manager should show the condition and the