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Report on Business Culture
and Strategy
Candidate No.:
Candidate Name :
Tutor :
Nov 2th, 2015
Central South University of Forestry and Technology
PEST analysis
PEST analysis include social factor, technology factor, economic factor and legal factor, which is used to analyze the influence of the external environment to the organization. In this case, social factor, for example, J D Wetherspoon sell a wide range of real ale relatively low prices. Wide range can meet customers’ need well and low price will add the conversion cost of customers which promote sales. Other social factor is that J D Wetherspoon serve food which is available all day and sold at relatively cheap prices.
Technology factor has limited influence to J D. Free WI-FI and TV screen provide convenience for customers.
Currency condition and national income are major element of economic factor. In this case, in 2004 it remove price incentives to drink larger measures of spirits and reduced the amount of alcohol in its cocktail pitchers which has an adverse effect on sales of spirits and cocktails. If national income increase, citizen’ consumption will increase.
Legal factors have limited effect to company as much as technology factors. In this case, tied house system had been broken by ruling from the MMC which severely limited the number of pubs which a brewer could operate. Other hand, government is concerning about binge drinking and the consequent anti- social behavior. It may reduce sales.
Political factor is MMC and binge drinking. In case, tied house system had been broken by a ruling from the MMC which limited the number of pubs.
Increasing public concern about binge drinking and the consequent anti-social behavior. These impact the sale.
SWOT analysis
In SWOT analyse, S and W belong interior factors and external factor include W and T. Advantage of strength are reflected following circumstances. Training courses, area meetings and shift management meetings form part of the working week which will not encroach into staff leisure time. It can improve staff’loyalty, and competitor do not take them. The other circumstances is that it is committed to lifelong training and it provides staff with opportunities to gain relevant qualifications such as those offered by British Institute of Innkeeping. These can keep staff and avoid outstanding employee quitting.
Weakness are reflected these aspect. Music and TV programmes. J D Wetherspoon do not play music and show TV programmes which reduce its allure so that competitive advantages is lower than competitors.
About opportunities, J D wetherspoon has developed the ‘Lloyds Number One Bar’ brand and greatly increased the number of outlets. New product can attract attention of customers. If the new product’s quality is good, J D’s sales will future new outlets will be divided between the J D wetherspoon and Lloyds No1 Bar brand. Reasonable market segments will expand sales.
Threat are from concern about binge drinking and the consequent anti-social behavior. It will reduce sales seriously. Even more, due to opportunities