Enterprise Inns Plc.
This assignment will explore the cultural web of Enterprise Inns. Schein defines organisational culture as the ‘basic assumptions and beliefs that are shared by members of an organisation, that operate unconsciously and define in a basic taken-for-granted fashion an organisation’s view of itself and its environment’. (Innovation for Growth. 2012)
Diagram 1. (Innovation for Growth. 2012)
Enterprise Inns: the beginning
In 1989 Ted Tuppen and a carefully selected management team founded Enterprise Inns, a lease and tenanted Pub Company that in 1991 bought 386 public houses off Bass Brewery. Mr Tuppen who has on many occasions publically condemned the Government for interfering was quoted as saying to the Venture Magazine, “ Pubs which had previously not been available to outsiders suddenly became available in large quantities. It was a complete false market created by Government interference, and gave me the opportunity to start a new business on which I had no experience at all.” (Saunders,P. 2005) The Government and lord Young initially triggered this in particular, because the Big Six breweries also owned thousands of the public houses, which permitted vertical integration as you become your own supplier. The Government responded (Monopolies and Mergers Commission) by instructing the large breweries that they would have to sell of part of their estates as they had too much control in this market sector. Lord Young in 1989 decided to cut the brewers pub monopoly and were told in 1992 by the Monopolies and Mergers Committee they were to only have 2000 pubs each or sell their breweries, this was part of the Beer Orders 1989. (Saunders,P. 2005) The stories and the power overlap in this cultural web significantly. Enterprise; the early days
Enterprise Inns is a tenanted pub company, which means tenants operate the pubs and the company collects rent from the tenants also known as publicans, who operate and live in the public houses. The model is said to make the pub industry more accessible than the purchase of a freehold while giving a publican the feeling of autonomy that is attributed to developing your own success in the industry. (Enterprise Inns. 2013) The organisational structure. (Structure and Controls)
There are 508 employees for the 5,766 outlets. The organisational structure is flat when communicating with publicans, and the regional manager is the key contact with the company this is very symbolic of all the pubco’s. The regional manager also agrees improvement works to certain pubs belonging to the estate, which from experience incorporates them increasing the publican’s rent as a means of recovering their investment. The Tied Model: the empowerment and the exploitation. (Control and routines) The company offers different types of tenancy agreement, most agreements with this company also incorporate what is called a beer tie that obligates the tenant to buy all beer through the company; with their latest contract including a tie on spirits, wines, ciders and soft drinks. The more tied the publican becomes with the contract the less rent is paid however the price for the beverages is inflated to balance the reduction in the rent. This is where the company makes most of their profit as they charge the publican a fixed price for the beer rather than the publican being able to deal direct with the brewery which is 90% cheaper in most cases. According to the Government who are unveiling new statutary codes of fair practice in 2014, “Enterprise Inns and other pubco’s are using their position to exploit the publican on the level of beer and rent they have to pay”. (Forsey,M. 2013) When entering in to the contract with the company you are given a reduced rent for the first year . The company will charge an average of £20,000 ingoing cost for fixtures and fittings your chosen pub, most of these pubs will have in controls such as Brulines which is a company that...
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