Report on business culture and strategyA Report on strategy and cultureIn J D wetherspoonHND, JIANG HE 江何江何SCN：115420550April 18, 2012Content1 INTRODUCTION 32section1：External environment 33section2：Organizational culture64 CONCLUSION105 REFERENCES111.0IntroductionJD Wetherspoon plc was founded by Tim Martin who opened the first JD Wetherspoon pub in 1979. JD Wetherspoon became a plc in 1992 at which time it consisted of a chain of 44 pubs, it now has over 600 pubs, which means it has expanded on average one new pub each week. In 2000, for example, it opened over 90 new pubs and over 50 of the finance for the new developments came from cash generated by the business, In 2002, about 10 years after flotation, its share price rose to more than ten times its original value.This report is mainly about two sections. One is analyzing JD Wetherspoons external environment by using means of PESTEL and SWOT and another is analyzing its organizational culture in terms of shared values and taken for granted assumptions. At the same time explain the type of culture that JD Wetherspoon has and identity the relationship between organizational culture and organizational behavior in JD Wetherspoon as well. 2.0Section1：External environment(a) Give examples of social, technological, economic, political and legal factors which have affected the way it has behaved.Social culture factors: The JD is from a character in a TV program Dukes of Hazzard. And it has been renamed The Montague Pyke after a well-know London entertainment mogul. This is following the example of an imaginary pub Moon Under Water, most people know this pub which in an essay by George Orwell.With the improvement of peoples living standard, more and more people prefer to enjoy facilities with entertainment elements, according to this situation, JD Wetherspoon adopt TV screens and show some TV programs, including football games. Technological factors: JD Wetherspoon acquired the Lloyds pub chain consisting of 10 pubs. Many new facilities and ideas from the Lloyds pub chain had been absorbed by JD Wetherspoon. And, the entertainment elements JD Wehterspoon has will help them to attract more customers or visitors.Economic factors: Euro had impacted on the pound over the period of this time, and there is no doubt that it also caused problems to JD Wetherspoon.In 2002 the founder Tim Martin printed 500000 beer mats and put up 10000 save the pound posters to encourage customers to think about the issue while they drink.Political factors: During 2002-2004, there was increasing public and government concern about binge drinking and the consequent anti-social behavior, particularly in city centres. Pubs cannot be seen to be encouraging this state of affairs as it brings them bad publicity. For this problem, JD wetherspoon in 2004 remove price incentives to drink larger measures of spirits and reduced the amount of alcohol in its cocktail pitchers. This has had an adverse effect on sales of spirits and cocktails. Legal factors: The traditional link between the brewing companies and pubs known as the “tied house” system had been broken by a ruling from the Monopolies and Mergers Commission which severely limited the number of pubs which a brewer could operate. This forced companies to choose between brewing and retailing, with the result that companies were selling off either their brewing operations or their chains of public houses and hotels. JD Wetherspoon entered the market as a retailer.(b) Using a SWOT analysis, explain the relationship between JD Wetherspoon and the environment it is facing during the early years of the 21st century.Strength:JD Wetherspoon offered cheap beer, good conversation and solid architecture; In addition it had a clear idea what sort of pubs it wished to operate and was able to ensure that its approach was consistently maintained across all its outlets. JD Wetherspoon acquired the Lloyds pub chain consisting of 10 pubs, they have two brands of pub and develop budget hotel accommodation, at the same time they have a new concept as well. Since then, they are music based outlets with a much stronger entertainment element. They have plasma screens and can show TV programs. All of above are JD Wetherspoons advantages.Weakness: Most of JD Wetherspoons pub locates in the center of city. Nowadays this leads to increasing public and government concern about binge drinking and the consequent anti-social behavior. Pubs cannot be seen to be encouraging this state of affair as it brings them bad publicity.And its price is comparatively high. Supermarkets began selling drinks, particularly premium large, at loss-leader prices. This makes it difficult for pubs to compete on price and encourages drinking at home.Opportunities: The traditional link between the brewing