Business feel forced to opt out, Sunday working,
Business Culture and Strategy Report 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, smoking bans, weights and measures acts, Health and safety and food hygiene laws, potentially all these factors can cause significant problems if the law is broken as there is high penalties for the chain and in some respects the staff also for example selling age restricted lines to underage customers resulting in fines and possible criminal records. Legislation such as the smoking ban, licensing laws, task 25, Weights and Measures and Trading Standards operations)Technology has surprisingly affected how the chain operates, they now have their own website advertising current promotions, menus, job vacancies are also advertised on the website under the recruitment link, Wifi is available free of charge in throughout the chain, The cash registers are now touch screen and each member of staff have their own login which can enable management to monitor staff behaviour and security such as theft, since acquiring the Lloyds chain Wetherspoon’s have introduced Plasma screens in order to screen live sports game s and music channels.