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a. Strategy is getting it right and doing it right. It is very important to organizations. Choosing strategy is direct effect organization’s development and future. And every strategy have advantages and disadvantages, so in the different complex situation, we can adopt different strategies to solve problems. Now I will choose four possible strategies which the organizations may adopt.
The first is cost leadership strategy. Cost leadership is the low-cost leader in any market gains competitive advantage from being able to produce at the lowest cost. Company can use low cost strategy defeat the competitors among the marketing environment.
The second is differentiation. A competitive strategy that allows a company to sell its products for a premium price. This emphasizes creating superior products, products with unique or more desirable features or design.
The third is focus strategy. The generic strategy of focus rests on the choice of a narrow competitive scope within an industry. The focuser selects a segment or group of segments in the industry and tailors its strategy to serving them to the exclusion of others. The focus strategy has two variants. One is in cost focus a firm seeks a cost advantage in its target segment, the other is in differentiation focus a firm seeks differentiation in its target segment.
The fourth is diversification. This is where we market completely new products to new customers. There are two types of diversification, namely related and unrelated diversification. Related diversification means that we remain in a market or industry with which we are familiar.
b. During the 1980s and 1990s, JD Wetherspoon used broad differentiation strategy. Compare other pubs; JD Wetherspoon is special and different. They sell a wide range of real ale beers at relatively low price; good quality wine is available; they don’t play music or TV programmers; especially the non-smoking and toilet design.
Because its clean comfortable atmosphere and low price high quality products, it bring some benefits to JD Wetherspoon.
They provide good services, such as cheap beer, good conversation and solid
architecture with 24-hours. It is not only attracting more new customers, but also improves the customers’ loyalty. Then the purchases will increase.
Their employees have high loyalty and good quality, it is easy to manage and control. Then it will steadily develop the company’s future.
Their delicious food and thoughtful service can build a good reputation and good brand image, and maybe the company will become a trend.
JD Wetherspoon can expend to help the company increase market share, make more profits.
c. In 1980-1990s, business strategy is broad differentiation strategy. While in the 21st century, business strategy is focus differentiation strategy.
In 1980-1990s, they don’t play music or watch TV. But in the 21st century, they have plasma screens and it can watch football.
In 1980-1990s, the pub just has only one business. But in the 21st century, the pub serve breakfast and begun developing budget hotel accommodation.
In 21st century, JD Wetherspoon Removed price incentives to drink larger measures of spirits and reduced the amount of alcohol. But In 1980-1990s, they just sold real ale beers and good quality wine.
d. J D Wetherspoon need to consider some factors when change its business strategy. The first is policy. From the case, we can see during 2002-2004, government concern about binge drinking and the consequent ant special behaviors, particularly in city centers. Before changing a policy, they need to concern about whether the new policy could make more profits.
The second is internal environment. Because the customers demand increases, J D Wetherspoon should improve employee’s quality, make the service more thoughtful. Before changing a policy, they need to concern about whether the new policy is suits different customers.
The third is social. In this case, the supermarket began selling drinks, encourages drinking at home and increase in the number of bars. It increased more competitors.
So before changing policy, they need to consider about whether the policy can bring more customers and whether could reduce competition with other companies.
e. Business strategy is the plans choices and decisions used to guide a company to greater profitability and success. It should be designed to bring success and avoid failure. Strategy choice is described of deciding which strategies can benefits organization’s future. This strategy decision is very important to company. From the case, in 21st century, J D Wetherspoon adopts the differentiation business strategy. There are some new products like provide a dedicated family dining area and serve the breakfast. The new market was begun developing budget hotel accommodation known as ‘Wetherlodges’. In a competitive pubs market, J D Wetherspoon is different from other pubs by using this way, it had already open the new market for increasing the competitiveness. It is an attractive pubs for customers. Then this strategy brings more profit for JD Wetherspoon.
f. JD Wetherspoon is operating well now, but it still needs to consider some key issues: The one is need to enhance communication between managers and employees. This management method can help managers and employees exchanging their ideas and suggestions. It also can help company deeply develop, improve service and products. For some problems, they can solve these problems at once. The other is needed to consider whether the business strategy is flexible. When the environment changes, the strategy can quickly respond and find a way to constant changes.