Analyzing J D Wetherspoon PLC's Global Business Strategy

This report provides a strategic audit of J D Wetherspoon PLC, analyzing its financial and business performance, and examining strategic actions such as market development, product development, and technology implementation. The analysis includes financial ratios from 2018-2020, revealing fluctuating profitability and liquidity. The report highlights the importance of customer analysis, environmental factors, and strategic models like PESTLE and Porter's Five Forces in shaping J D Wetherspoon's strategies. Market development is identified as a key strategy for expanding the business and reaching new customer segments, while product development focuses on innovation and new offerings. Technology implementation, particularly social media, is crucial for promotion and customer engagement. The report emphasizes the need for effective communication, customer feedback, and a thorough understanding of the customer journey to ensure the success of these strategies.

GLOBAL BUSINESS
STRATEGY

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
TASK ..............................................................................................................................................4
Strategic Audit.............................................................................................................................4
Analysing strategic actions that applied in the context of Jd Wetherspoon plc...........................5
Reflective statement...................................................................................................................12
CONCLUSION AND RECOMMENDATION.............................................................................12
REFERENCES..............................................................................................................................14
Appendix........................................................................................................................................15
Annual Report............................................................................................................................15

EXECUTIVE SUMMARY
Business strategy is defined set of effective actions, methods, and plans that in turn
provide a lot of benefits to a company or entrepreneur. By developing and using appropriate
venture tactic, they obtained unpredictable benefits while running a business or firm into specific
market, with skilled workforce. Most of the companies has taken approach to develop a business
strategy, when they tend to grow and succeed in the overall industry. The current assignment will
be based on Jd Wetherspoon plc, which falls under the category of the most popular pubs in the
United Kingdom. For purpose of generating revenue, organization efforts to provide tasty food
items, accommodation and other pubs services to customers more than four years, in the UK.
The study has explained strategic actions that applied in regard to choose company that enable it
to grow rapidly and complete over next 3 to 5 successful years. In the world of business there are
different form of strategic models and frameworks available and utilized in the context of varied
firms. In case of chosen company, several models such as PESTLE, Porter's five forces, etc. has
been applied in the context of strategies that it take into its consideration and these are product
development, market development and technology utilization. In regard to firm, these three
strategies enable management to take pleasure of increasing productivity and profitability over
next three to five eras.
Market development is the best action that company has taken into its consideration,
which driven management attention toward obtaining a lot of benefits. It allows firm to gain
competitive advantages in term of entering into new and profitable market, where it plans to
establish its specific outlet. Product development is as beneficial as above action that Jd
Wetherspoon plc consider and work accordingly in productive manner. According to this key
solution, firm will focus on develop a product such as application that they used to provide
appropriate services and products to each customer.
Along with above two, organization also consider advanced technology implementation
as important and beneficial action that will be helpful in regard to next 3 to 5 years business
success in the competitive business environment. This action in return provide unexpected
benefits of chosen firm which pleasure it will take for longer time period, as well as provide
same to key stakeholders who are connected with it and contribute to reach desire aims.

TASK
Strategic Audit
Financial performance
An analysis of the financial performance enables the company to make an analysis of its
financial statement and financial ratio so that decision in relation with the company’s
performance can be taken. In respect to JD Wetherspoon the financial performance is as follows:
Ratio 2020 2019 2018
Net Profit ratio: Net
profit(loss)/Sales*100
=
(97561)/1262048*100
= -7.73%
=
72777/1818793*100
= 4%
=
66709/1693818*100
= 3.93%
Current ratio: Current
assets/Current
liability
= 69813÷326671
= 0.21
= 88570÷326671
= 0.27
= 109513÷316628
= 0.34
Return on Equity:
Net
earnings/Shareholder
equity*100
= (97561)/325199
= 0.30
= 72777/316812
= 0.22
= 66709/286562
= 0.23
From the above analysis it can be said that the net profit ratio of the company is
fluctuating i.e. in 2018 it was 3.93% while in 2019 it raises and become 4%. However, in 2020
with the incurrence of loss it become -7.73%. This shows that the financial performance in terms
of profitability is declining and negative because with respect to net profit ratio the company’s
financial profitability can be analysed which in case of JD Wetherspoon is declining.
In case of Return on Equity ratio which analyse the rate of return given to the
shareholders of the company. From the above table it can be analysed that the ratio of the
company is showing a declining phase in 2018 and 2019 i.e. 0.23 in 2018 while in 2019 it
become 0.22. However, in 2020 it raises and become 0.30.
Likewise, while making an analysis of current ratio which analyse the liquidity position
of the company. From the above table it can be analysed that the current ratio of the company is
low while making it compared with the ideal current ratio. This is because in 2018 it was 0.34
while in 2019 it become 0.27 that further decline and become 0.21 in 2020. This shows that the

company’s liability is more than assets that may have a negative impact towards the company
and need to be improved.
Business performance
The performance of the company can be evaluated with the analysis of the balance sheet that
determine the financial position of the company along with an analysis of the income statement
under which the financial performance of the company is determined.
As per the income statement it can be analysed that the JD Wetherspoon is earning a profit
of 66709 in 2018 while in 2019 it become 72777. However, in case of 2020 it declines and
become (97561). This shows that the business performance of the company is declining and not
showing the positive performance. This need to be improved so that the company can raise the
profitability and earn high rate of return in respect to its sales.
From the above balance sheet it can be analysed that Balance sheet of the company
shows the fluctuating performance of the company. Likewise, it truly complies with the
accounting equation that shows the total of assets is equal to the sum of liability and equity.
Analysing strategic actions that applied in the context of Jd Wetherspoon plc.
Each organization, whether it is small or large, seek to consider strategic actions that they
may utilize to solve any major or minor challenge that put negative impact on their businesses
growth and success. These challenges may occur due to several factors, including external or
internal.
Strategic actions implication in regard to Jd Wetherspoon plc-
Market development-
In the recent time, organizations taken approach to utilize this strategy and develop plan
to develop a new market where they easily enter to grow and gain benefits. The business
environment is full of challenges because of certain factors and due to that companies survive in
varied manners (Market Development – Strategies, Advantages and Examples, 2022). In that
case, market development is the best method that they may consider and utilize in appropriate
manner by conducting practice to take key steps to establish venture in new markets with current
product portfolio. They may develop important plan to expand businesses into a profitable
geographic area with existing items and services that new target audience prefer to purchase
exchange of money that they are ready to pay.

Jd Wetherspoon plc and its management may implement this strategy in effective and
systematic manner, which enable them to overcome the negative impact of external or internal
factors and provide opportunity to grab the attention of potential customers (Sharma and et.al.,
2021). The tactic that firm may plan to utilize is the best and most successful one, because of key
benefits that it may include. For example, market development strategy may enable chosen
company to expand venture and build wide base of potential buyers, who might be contributed to
generate revenue more than last few years. It may offer Jd Wetherspoon plc chance to deal with a
new customer base or segment, among which each consumer prefer to follow the specific trend,
that management may consider and perform accordingly (Wibowo, Prakoso and Masruroh,
2021). The implication of chosen strategic action in turn provide more benefits to Jd
Wetherspoon plc in form of increasing sales via new ways to utilize a product such as burger,
regarding which they may innovate something new.
Product development-
It is another strategic action that Jd Wetherspoon plc and its management used to gain
benefits and deal with current business situation that has been affected from several factors, as it
impact each and every sector adversely (OMOSA, 2022). Product development method or tactic
is defined as key element that companies consider, to take right action in term of introducing or
bring a new food items in hotels and pubs, and other things in different category that play
significant role in growth of companies, especially in case of new market entrance (Diaz and
et.al., 2021). Product development strategy may drive the attention and concentration of Jd
Wetherspoon plc and its management to prepare new food items that they may sell to new as
well as existing customers.
Advanced technology implementation-
Each form of technology may contribute to manage and run its venture operations
productively and competitively. For example, the utilization of social media channels such as
Instagram and other may drive the attention of chosen restaurant marketer toward promoting
venture globally as well as their key category of burger that people prefer to purchase &
consume. In the recent time, due to technologies implementation, most of the companies may
overcome the negative impact of forces on their businesses, which has been influenced in higher
extent (Pelau, Dabija and Ene, 2021). By using Instagram, marketer may promote its venture
from local to international level that is important for them to do that. It may aid to attract new

customers and retain them with existing for longer, which is as essential, beneficial and useful as
conducting other activities related to operational and business management.
There are varied factors exist in the market or sector that put impact on all above three
strategies and these are defined via applying strategic models as applied below;
Customers analysis-
There are several forms of approaches accessible in the corporate world that applied in
the context of understanding customers need. Customer analysis is one of these methods, that
combines quantitative & qualitative research techniques. It may drive the attention of JD
Wetherspoon Plc, toward comprehending their target market even better, before entering into
new market and providing new product as per selected product & market development strategies.
They may take few steps into their consideration that encompasses in customer analysis concept
and these stages are;
Structure existing consumer data base-
It is essential for management and company to appropriately structure customers
information before taking decision to entre into new market and offer item. They may take
approach divide each buyer into group with same features by following demographic (Age,
income and gender), geographic (location), and psychographic (Values, personality, interest and
beliefs) segmentation strategies.
Identify most valuable buyers-
After passing above step, they may move to next one which enable management to make
possible change or adopt new tactic related to both chosen strategies along with utilization of
advance technologies.
Effective communication-
It is necessary for management to communciation with target market, which allow them
to know more about their need and requirement in the context of accommodation, and food
products. For this purpose, they may utilize social media and other types of technologies, along
with written communication approach.
Collect customer feedback-
After passing all above phases, its time to focus on essential things like above. According
to that management may take approach to collect important information or feedback from

existing customer, just to make assure that their needs may change and what they expect to
consume further.
Run surveys-
It may enable marketer to talk to target audience and collect their vouces from field as
qualitative approaches. With this technique, they may get an idea to offer new product in the
market, where firm may plan to enter.
Creating customer personas-
The very next step after survey is current one, according to that they may take initiative
to utilize all insights in order to create customer personas.
Consideration of customer journey map-
It is important for marketing and other departments of JD Wetherspoon to consider
customer jounry map that include varied stages. As it may allow them to conduct each pratice
related to market and product development strategies accordingly.
Environment basics-
CSR, customers trend, economic growth and other environmental factors are included in
this category of model. It may revolve around the sector such as Food & bervage, where JD
Wetherspoon Plc may establish its venture and also tend to utilize strategic actions or strategies
such as chosen two.
Degree of turbulence-
Turbulence refer to state of disorganized or unpredicted change and confusion that put
direct impact on any organizational practices in negative manner. In case of JD Wetherspoon Plc,
any unexpected change in the industry may affect negatively upon its strategies and actions, as it
may face challenge to get success in regard to market expansion and product development. The
extent of this term is high, as change is unpredictable and occur suddenly.
PESTLE analysis-
Political factor-
Change related to any political factors put direct impact on current practices and activities
of industries, whether it is Food & beverage or retail. In case of JD Wetherspoon Plc, political
stability along with other political forces may put positive impact on business, in term of
providing firm chance to expand globally.
Economic factor-

This force may also affect positively upon chosen company in term of providing venture
chance to increase profitability and productivity as with disposable income people are able to
purchase quality products and utilize satisfactory services such as food, beverage,
accommodation, etc.
Social factor-
Any fluctuation related to social factors may affect current management practices in
negative manner as the need and preferences of customers has changed because of current
market trend. It may drive the attention of organization toward considering each trend in
appropriate manner, which consume a lot of time.
Technology factor-
Jd Wetherspoon plc and its administration may gain benefit of specific factor such as
technology advancement that play significant role in the context of its rapid and unpredictable
growth in the market during and after critical or competitive business environment (Nozawa and
et.al., 2022).
Legal factor-
Employment laws, data protection, work safety regulations, etc. may put straight impact
on JD Wetherspoon Plc as it may drive their attention toward complying with legal terms that
consume a lot of time and require additional resources.
Environmental factor-
Environmental sustainability is one of those external factors that may put positive impact
on firm current strategy such as product and market development. It may increase work pressure
on management to utilize raw material for packaging food products, according to environmental
policies and laws in the new market where it tend to expand or enter.
Industry life cycle-
Food and Beverage or hospitality industry life cyle may depict several phases where JD
Wetherspoon operate, run and manage business in effective manner. These phases are;
Start-up-
It can be said that consumer demand that is limited because of unfamiliarity with new
item feature & performance (Industry Life Cycle, 2022). At this phase, firm generate low revenue
and take worst experience of negative cash flow, as it is the beging part.
Growth-

After geeting familiar with accommodation services and food product, customers may
contribute to make industry and company able to reach this stage, where they may take pleasure
of venture growth.
Shakeout-
This phase is considered as consolidation of industry, where chosen company may
operate. The growth extent of profits, performance, cash flows slowing down as the sector
approach maturity.
Maturity-
While reaching this phase, organization may take pleasure of increasing success and
growth, which is quite essential and beneficial for it to stay or stand competitive in the market,
whether it is new or existing.
Decline-
According to this last phase, extent of competition in a decline sector rley on varied
factors. It may drive the attention of company toward developing effective plan that help to
overcome decline stage negative impacts.
Key factors for success-
It can be said that technology advancement is considered as the best success factor in
the corporate world that organization may consider and utilize in effective manner. It may enable
firm to obtain unpredictable success in the new market, with value added products, in term of
gaining customers attention and retaning them with existing. Effective leadership styles, skilled
workforce, better promotional plans and productive team of operations management are
included in list of factors that help to make venture successful.
Five forces analysis-
Bargaining power of suppliers The degree of this force is low, because
number of suppliers that exist in the industry
and market.
Bargaining power of customers The level of this force is high because
customers may found alternative solutions of
expensive accommodation service that may put
negative impact on current strategies or

strategic actions of company.
Threat of new entrance The extent of this force is low, becuase
expenses and resource requirement in the
hospitality sector, which lead to decrease new
companies entrance effectiveness.
Threat of substitute products and services The level of this force is high because number
of services and products available in the
market that affect negatively upon
organizational strategies.
Competition between existing companies The competition level between existing
companies is high, that affect success and
growth chances of JD Wetherspoon Plc.
Four links analysis-
Motivation-
Customers trends may drive the competitors toward conducting competitive actions that
affect product and market development strategies of JD Wetherspoon Plc.
Current strategy-
It is essential for company to focus on rivals activities that enable them to develop the
best plan to gain competitive advantages.
Capabilities-
It is also very important for them to consider strengths & weaknesses of competitors,
which may allow them to utilize own strengths in term of garbbing existing market growth
chances.
Management assumptions-
They may take approach to make appropriate assumption about competitors efective
manangement team that affect the way firm conduct its practices.
Competitor analysis-
Basis JD Wetherspoon PLC Byron
Product It may take approach to As Bryon may only serve food

provide accommodation
services along with food
products.
items.
Price It may utilize competitive
pricing strategy.
While, company may utilize
low pricing tactic.
Place It may have own outlet to
serve each product along with
online presence.
On the other hand, Byron may
offer burger via using onw
space in the UK.
Promotion JD Wetherspoon utilize
traditional and digital
marketing tools.
While, it may use only digital
promotional techniques.
Reflective statement
I had learned a lot of things whilst completing the management study, as it encompasses
different key aspects that provide individuals chance to gain knowledge about each aspect and
then utilize the same further for purpose of achieving key aims and objectives. It can be said that
management report play vital role in the context of improving individual knowledge. I am able to
grab this chance in form of developing my comprehending about strategic actions as well as
functional areas of Jd Wetherspoon plc. I had developed my understanding during this
management study and that related to PESTLE, Customers, competitors and several models
analysis.
I had gained more knowledge about market and product development approaches that
chosen company will consider, to deal with losses and other negative or adverse impact of
pandemic. There are lots of concepts covered in management report that provide key benefits to
me in form of improving my understanding.
Along with above learning, I had gained better comprehend about functional as well as
operational strategies that applied in regard to critical issues that firms face. Each management
study serves to measure venture performance, and I am able to do that because it is important and
useful too for me.