STRATEGIC DEVELOPMENT AT J.D. WETHERSPOON

Strategic development at J.D. Wetherspoon



Strategic development at J.D. Wetherspoon

As a consultant, I will suggest the senior management of J.D Wetherspoon to conduct an inrternal and external audit, than to develop an organizational strategy on the basis of findings of these audits, than resource evaluation will be conducted, and finally targets and timescales of the strategy will be defined. All these things are broken down into five tasks as mentioned below:

Task 1

Strategic Analysis

The strategic analysis is a broad term that takes into account a number of factors that could affect the operations and plans of the business (Wellman, 2009, Pp. 1-44). First of all, the environment is what it provides for the company to be survived in the market. Environmental change can be a fatal for organizations; hence, the organization needs to analyze their environment carefully in order to anticipate the environmental change. There are sources of threats such as revolutionary technologies or the entry of new competitors and environmental change can be fatal for organizations (Keith, 2010, Pp. 1-12).

Macro environment analysis

Macro environment is the highest level layer in the business environment. This consist of factors such as political, economic, social and technological which impact to the organization. Tran (2008, Pp. 11-17) identified that there are many factors in the macro-environment that will affect the decisions of the managers of any organization. Tax changes, new laws, trade barriers, demographic change and government policy changes are all examples of macro change. To help analyze these factors managers can categorize them using the PESTEL model.

Political factors

This may refers to the government policy such as the degree of intervention in the economy. Government alert with the health of the nation as well and restricted areas for smoking, J.D. Wetherspoon pioneered completely to non-smoking in most of the pub which this could attract family type customer. Government responsible for the economic policy and regulation as well which leads the economic to determine the extent of population's spending power on goods and services and this might bring impact on the hospitality businesses. Government may imposed tax on the good and services such as the value added tax (VAT), and hence businesses like JD Wetherspoon need to pay tax for their businesses(Schumacher, 2005, Pp. 11-19; JD Wetherspoon, 2010). According to Thomas (2009, pp. 128), JD Wetherspoon attacked the Government over its "opportunistic tax grabs", which it believes are contributing to the demise of the struggling pub sector where the pub industry as a whole is under great pressure and that the costs of taxes and regulations have gone too far.

Economic factors

According to Keith (2010, Pp. 1-12) economic factors are concerned with fiscal and monetary issues that have a great impact on hospitality businesses. According to the interim report 2010 of JD Wetherspoon PLC, there have been 2 pubs closed down but 17 pubs opened in a total of 775 now. This shows that the economic issues does not affect much of the company to continue ...