The people’s living styles have changed. More persons prefer drinking at home with families. Most pubs now have a dedicated family dining area. Political The traditional link between the brewing companies and pubs known as the ‘tie house’ system had been broken by a ruling from the Monopolies and Mergers Commission which severely limited the number of pubs which a brewer could operate. On choosing between brewing and retailing, JD Wetherspoon entered the market as a retailer. It was a new company with no connections to any brewery and was able to build from scratch.
Economic With the changed market environment, the 1980s and early 1990s were characterized by a number of launches and re-launches as well as changes of ownership among other public house operators. Legal Smoking ban is putted out. A quarter of the space in each pubs is non-smoking. Technology There are more entertainment elements. They have plasma screens and can show TV programmas. Shared values lead to a combination of the organization. Every organization and leader should have a different set of values that are appropriate to its business situation.
In JD, the “lifestyle guarantee” which aims to give managers time for a life outside work is a good shared value. The managers work a 48 hour week with two consecutive days off and a maximum of four late closures a week. Training courses, area meetings and shift management meetings form part of the working week so that they do not encroach into staff leisure time. The flexibility of working time in the company reveals the personalized management in JD. This leads to the efficiency and effectiveness of the work.
Taken for granted assumptions JD has the motto of ‘cleanliness, beer, services and maintenance’. In order to meet the standard, the company has done the following things, such as: They sell a wide range of real ale beers at relatively low prices. In each pub, at least a quarter of the space in each establishment is non-smoking. Meanwhile, each has a ventilation system which aims to ensure customers do not leave smelling of smoke. Martin has the largest influence on the operation of the business.
Martin may lose his power of management with the scattering of right. On changing the management, staffs must follow it under the power of Martin. It may be poor at implementing change management. Less time will be cost on decision-making. More time will be cost on discussion until meeting agreement. Explain four possible strategies which organizations may adopt. Michael Porter’s Generic Strategies (quickmba,2009) Strategy Definition Appropriate environment Overall Low-Cost Provider Strategy