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1、 F7J7 35: Business Culture and strategyAssessment 1Assessor: Qingchun MaCandidate: Wenzhi DuanWords: 4587 wordsSCN: 157042211 Submitted date: 22-4-2016Table of Contents1.0 Introduction.22.0 External environment22.1 PESTEL analysis.22.2 SWOT analysis.32.3 Guidelines for conducting SWOT analysis43.0 O

2、rganizational culture.63.1 Organization culture, “shared value”, “taken for granted assumptions”.63.2 A model of organizational culture.73.3 Organizational culture and organizational behavior73.4 An alternative model of organizational culture.84.0 Business strategy.94.1 Four possible strategies.94.2

3、 Benefits of the strategy.104.3 An alternative strategy.114.4 Two factors influencing business strategy124.5 Business strategy and strategic choice.124.6 Key issues in the management of business strategy.135.0 Change.135.1 Forces for change.135.2 The factor leading to change in the organization155.3

4、 Dealing with change.165.4 Analyzing a change situation and overcoming resistance to change.166.0 Conclusion.17Reference list.181.0 IntroductionThis report introduces the external environment through PESTEL analysis, and SWOT analysis; and organizational culture and organizational behaviour. This re

5、port also describes some information of business strategy, and analysis of two different types changes for the organization.2.0 External environment2.1 PESTEL analysisPEST analysis refers to a framework for the using of macro environmental factors in strategic management of environmental scanning co

6、mponents. (SQA, 2006)Political/ legal factors refer to many kinds of law, which can affect how a company 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 Wether

7、spoon 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 sell

8、ing 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 Wetherspoons selling price, market share, and other impact that makes it difficult for

9、company to compete 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 company's products and how that company operates. People pay more concern about their

10、 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 infl

11、uence 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 peoples needs. 2.2 SWOT analysisSWOT analysis involved in a project or in a business unde

12、rtaking. 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 adv

13、antage 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 Wetherspoo

14、n has a training policy to provide training opportunity, and committed 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.

15、 The company 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 Wetherspo

16、on 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 comp

17、etition; 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 analysisBusiness environment influence the company a lot. S&W are internal factors

18、, 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

19、 used to identify O&T for macro environment. In other word, JD Wetherspoons manages need to identify O&T for the company 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 Wethe

20、rspoon. JD Wetherspoon now reduce the content of cocktail for customers, it would help the company enjoy a high reputation on against drink problem. Then, it has become to strength for the company.S, W, O, T is changing over time. To begin with, JD Wetherspoon did not have TV and serve crisps as a d

21、issimilarity 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 company lost the competiveness. Therefore it became to a W in that period. But the company has TV later on

22、, and help JD Wetherspoon win the competitive power. So it becomes S in 2002. SWOT analysis is important help the company to identify the situation subjectively. It does not determine the strategy, but it usually be taken account when the company needs to makes strategy become more efficiency.The or

23、ganisation 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 overcome W and T, and turn the W and T become to S and O. And also, the company

24、 should use its strength and catch the opportunity to get competitive advantages and develop better.3.0 Organizational culture3.1 Organization culture, “shared value”, “taken for granted assumptions”O(jiān)rganization culture refers to a system of shared meaning between members of an organization or the w

25、ay 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,

26、and mission statements. JD Wetherspoon thinks people are best assets of the company, 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 mo

27、re 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 cus

28、tomer, they can use the toilet. JD Wetherspoon has already considered about the things will happened. 3.2 A model of organizational cultureTerrence Deal and Allan Kennedys culture model shows that different types of organization, have different receiving feedback or reward speed, and risks the organ

29、ization 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 completed the low risk task and has rapid feedback. As a chain of 44 pub

30、s, 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 company has h

31、igh 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 company is stable. It is familiar of the company to get know the background of employees.

32、 So the risk is low.3.3 Organizational culture and organizational behaviorOrganizational 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 envir

33、onment, 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 company selected determined the organization behavior. Organizational culture can guide the

34、 behaviors while the behavior can influence the organizational culture. The culture will help to dictate the behavior, and the behavior will come back around to reinforce the organizational culture. Due to the selection of the work hard / play hard culture in JD Wetherspoon, this company needs staff

35、 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 company

36、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 organiz

37、ation is willing to compete initiatively to fulfill their abilities, which could help company to develop better.3.4 An alternative model of organizational cultureJD Wetherspoon could adapt tough guy culture. This culture developed by Deal and Kennedy, and it focus more on present instead of the plan

38、ning 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 company. Weekly meeting of JD Wetherspoon requires management and employees pa

39、rticipate 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 dec

40、isive and careful. So this decision suffers high risks. And stress comes 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

41、 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 Bu

42、siness strategy4.1 Four possible strategiesSelection 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 strategyThis strategy refers to use low cost to

43、obtain the competitive advantage in the market. The low production cost and low commodity prices can help organisations gain competitive advantages. Plant establishment and maintenance, personnel recruitment and training can reduce production cost. There will be lo

44、ts of competition in business environment. Low cost can help company gain competitive advantages. Furthermore, if JD Wetherspoon adapts this strategy, the company would attract customers who prefer same products with lower price, and gain competitive advantages. Differentiation strategyDifferentiati

45、on 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 competitive advantage. The drink is the production of different types of pu

46、bs 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 competitive advantage. The company paid attention to the company's products

47、 in order to attract different groups of customers.Segmentation, niche or focus strategyThe Segmentation strategy is also known as a niche or focus strategy. The generic strategy of focus rests on the choice of a narrow competitive scope within an industry. Cost focus strategy emphasis produces

48、 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

49、 service or product, such as invite singers to perform could help company attract more customers and gain more competitive advantages. Prospector strategyProspector refers to company should predict business trend and market needs to innovate new products or services, and find new market opportunitie

50、s.JD Wetherspoon wanted to expand because they developed well in pub industry now. Then they aimed at the hotel industry. New market means a great amount of new customers, it will bring more customers. In order to get better development and business growth, enterprise could bring new products to mar

51、ket to new customers. 4.2 Benefits of the strategyFrom1980s to 1990s, JD Wetherspoon adopt differentiation strategy. JD Wetherspoon has developed better than many pubs, because they provide different services from other pubs. For example, company provides lunch and open earlier. Company also provide

52、 for toilets for disabled customers and non-smoking places. Therefore, the differentiation strategy helps JD Wetherspoon to satisfy the needs of different customers through a sustainable competitive advantage. These are differences between JD Wetherspoon and other pubs.Maintain this strategy could h

53、elp JD Wetherspoon attract highly skilled, creative people join this group by good reputation of company to help company develop better. This belongs to the reform of human resources, the company increased the number of employees to better serve enterprises. As soon as the firm uses this strategy by

54、 providing good service will have repeat customers. This is a potential advantage for the company, not only can gain customers satisfaction and loyalty but also can gain good reputations.This strategy can help the company to increase market share, make more profits. Since it has good reputation whic

55、h brings opportunities for JD Wetherspoon, it has chances to diverse it business like entering others areas. The expansion means more profits.4.3 An alternative strategyAs for cost leadership strategy which is adopted by JD Wetherspoon from 1980s to 1990s. In this strategy, JD Wetherspoon sells good

56、 quality of beers with low price and provides cheap food with good taste. Thus, JD Wetherspoon aims at low cost both for product and service. In 21st century, the company followed prospector strategy. JD Wetherspoon faced more competition in this period. So the company started to develop new brand p

57、ubs called Lloyds Number One Bar. And company has catch market opportunity, such as expand business for hotel industry to develop better.Things do not change:Firstly, both 1980-1990s and 21st century JD Wetherspoon focuses on provide best services and foods for customers with low price. Secondly, company continuously devotes to create socializing atmosphere and emphasis this for a long-term culture. And it consistently set up family areas for customers.Things changed:In order to increase the profit, JD Wetherspoon changes content of ingredients by reducing the alcohol amount in cocktail pitc