Understanding Organisations
1. Introduction
JD Wetherspoons was founded by Tim Martin in 1979; it was a simple pub that offered cheap beer, food all day and good conversation. It became a PLC in 1992 and consisted of a chain of 44pubs, this had now grown and the company own over 750 pubs all over the United Kingdom, it is now established as one of the high street pub chains in Britain.
In this report I have been asked to both analyse as well as identify changes in the business environment over the years and how this has affected the pub chain Wetherspoons. I will look into things such as the competative and external environment whilst finding key factors which are affecting the organisation. Meanwhile the company’s competitive strategies will be investigated.
2. PEST – External Environment
I have been told to analyse the external environment and from this identify the key factors which are affecting Wetherspoons, the majority of research I did for this was over the internet, reviewing different sites with relevant information then adding my personal views on the topics.
Firstly the political factors which contribute to how Wetherspoons will operate are things such as minimum wage as well as the minimum age their employees need to be which would be over 18 as they are selling alcohol. This will also result in them having to pay a slightly better wage than them under 18 costing the organisation more money. Wetherspoons has smoke free areas in pubs to cater the non-smoking customers and even converting some of its pubs into complete none smoking environments this was before the legislation took place. The smoking ban has not had that much of an effect on Wetherspoons, states BBC news because although there was a decline in bar sales, food sales had a good rise which outweighed the smaller intake through alcohol. Chief executive John Hutson states “The company revealed today that like-for-like sales for the 13 weeks ending 28 October fell 1% despite a 1.4% increase in food sales
JD Wetherspoons was founded by Tim Martin in 1979; it was a simple pub that offered cheap beer, food all day and good conversation. It became a PLC in 1992 and consisted of a chain of 44pubs, this had now grown and the company own over 750 pubs all over the United Kingdom, it is now established as one of the high street pub chains in Britain.
In this report I have been asked to both analyse as well as identify changes in the business environment over the years and how this has affected the pub chain Wetherspoons. I will look into things such as the competative and external environment whilst finding key factors which are affecting the organisation. Meanwhile the company’s competitive strategies will be investigated.
2. PEST – External Environment
I have been told to analyse the external environment and from this identify the key factors which are affecting Wetherspoons, the majority of research I did for this was over the internet, reviewing different sites with relevant information then adding my personal views on the topics.
Firstly the political factors which contribute to how Wetherspoons will operate are things such as minimum wage as well as the minimum age their employees need to be which would be over 18 as they are selling alcohol. This will also result in them having to pay a slightly better wage than them under 18 costing the organisation more money. Wetherspoons has smoke free areas in pubs to cater the non-smoking customers and even converting some of its pubs into complete none smoking environments this was before the legislation took place. The smoking ban has not had that much of an effect on Wetherspoons, states BBC news because although there was a decline in bar sales, food sales had a good rise which outweighed the smaller intake through alcohol. Chief executive John Hutson states “The company revealed today that like-for-like sales for the 13 weeks ending 28 October fell 1% despite a 1.4% increase in food sales