Section 1: External Environment
A report has been requested by John Pringle and the purpose of the report is show the Strategy and Culture in J D Wetherspoon.
A SPELT analysis was carried out to show examples that have affected how the organisation has behaved. A SPELT analysis is a planning tool used in business in order to make effective strategic plans.
Social and Cultural factors affecting J D Wetherspoon are Demographic Patterns and Trends, Income and Wealth Distribution, Educational Standards, Attitude to Work and Leisure. Social habits are changing and therefore Wetherspoon’s need to change in order to remain competitive they did this by acquiring the Lloyds chain are more entertainment based because the younger generation of customers want to enjoy music on a evening out.
Political factors that contribute to how Wetherspoon’s operate are (Minimum wage for employees and Minimum age of staff employed due to serving alcohol. The Monopoly and Mergers Commission made a ruling limiting the number of pubs a brewer could operate, Weteherspoon’s entered the market as retailers and had no connections to any breweries and so was able to build from scratch.
Economic factors have a major impact on how the company behaves this factors are Taxation rates both on the business and the alcohol(VAT), Inflation, interest rates and unemployment which has a knock on effect to the disposable income customers have available after paying household bills. A major factor was supermarkets started selling meal deals and alcohol at loss-leader prices, this lowered the number of new pubs opening in 2004 to just 30 a year from a target of 100 per year, affecting share prices in the stock market.
Legal aspects and legislation relating to labour and working hours, Wetherspoon’s adopted a policy that Managers do not go over the 48 working week law therefore nobody has to feel forced to opt out, Sunday working, licensing laws,...