Case Study of J D Wetherspoon Plc

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Case study of J D Wetherspoon plc


1.Section 1: External environment2
1.1SPELT analysis2
1.2SWOT analysis5
1.3How to conduct a SWOT analysis used by J D Wetherspoon plc7 2.Section 2: Organisational culture8
2.1Organsation culture “taken for granted assumptions” and “shared values”8 2.2J D Wetherspoon’s type of culture9
2.3Relationship between organisational culture and organisational9 2.4Management approach in J D Wetherspoon10
3.Section 3: Business strategy10
3.1Strategies adopted by organisation10
3.2Benefits J D Wetherspoon gained from strategy11
3.3Different strategies and behaviour of the organisation12 3.4The factors of J D Wehterspoon hd to consider before changing its13 3.5Experience of J D Wetherspoon illustrates the connection between the13 3.6Key issues that J D Wetherspoon has had to take account of in order to14 4.Section 4: Change15

4.1Why the strategy of J D Wetherspoon changed over time15 4.2Social responsibility lead to change in J D Wetherspoon16 4.3The role that management of J D Wetherspoon could paly in dealing with16 4.4The advice given to the management of J D Wetherspoon17 III.Conclusions17



J D Wetherspoon plc was founded by Tim Martin who opened the first J D Wetherspoon plc in 1979. He based his model for a pub on a 1946 essay by George Orwell which refered to an imaginary pbu called “Moon under Water”. The company motto of J D Wetherspoon plc is “ cleanliness, beer, service and maintenance”. J D Wetherspoon plc became a plc in 1992 at which time it consisted of a chain of 44 pubs. It now has over 600 pub, which means that it has expanded on average at the rate of about one new pub each week. In 2000, for example, it opened over 90 new pubs and over 50% of the finance for the new developments came from cash generated by the business. In 2002, about 10 years after flotation, its shre price rose to more than ten times its original value.


Section 1: External environment

1 SPELT analysis

a) Social factor

The social factor involved the lifestyle trends, education levels and population demographics factors.

i. Lifestyle trends

The lifesyle trends means different culture people who love different style. For expamle, in UK, most of people love soccer. So they want to watch soccer game together and they will choose the pub which has the TV or go to the TV sports pub.

ii. Population demograghics

The population demograghics means that if the there no people the customers will not exist. So to this industry the source of customers is very important. For example, is the city has 300,000 residents, there may have 3,000 potencial customers. However, if the city only has 3,000 residents, only 3 people may become customers.

b) Technological factor

Technological factor involved speed of introduction of new technologies, innovations or developments and consumer buying options. i. New technologies
New technologies.For example, a Unique Brewing Technology, the new technology reduces carbon emissions by approximately 30% during the boiling process. It not only could reduce the cost in brewing but also bring a new taste in products. So new technology could make the products differentiated. ii. Innovations

Innovations. Innovation of product, for example, a new kind of cocktail may increase more customer to go into pubs. If this culture innovated, That more people will concern about this industry.

c) Economic factor

Industry could be affect by interest rates, inflation, disposable income and product seasonality as economic factors.

i. Interest rates

Interest rates. For example, if...
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