Economic Environment
HNC Business Management
Economic Environment
Module Leader:
Dan O’Hare
Essay By:
Nichola D. Robinson
(21042952)
Deadline Date
Tuesday 13th November 2012 A. Using economic concepts from the module; identify the key factors from the economic environment that affect an organisation of your choice.
B. Evaluate the effect of these factors on the organisation.
You should identify a range of relevant factors, and concisely ascertain the impact on your chosen organisation.
J D Wetherspoon plc. is a British pub chain founded in 1979 by Tim Martin, promoting low prices, long opening hours and no music, they also operate the Lloyds No. 1 chain, Wetherspoon Hotels and to date own 860 outlets.
Around the early 1990s, they began selling off their smaller or less profitable outlets and replacing them with larger premises close by, there are now around 100 outlets which were originally part of the chain and none of the earliest outlets in the chain are still part of the estate.
Reporting record sales in 2009 with takings growing by 1.2% and pre-tax profit up by 13% to £66.2 million; although it was a record for sales it did not reach record profits due to the increases in government tax and duty.
December 2009 saw a plan to invest £250 million in 250 new pubs across the country over a five year period.
Using both PESTEL and SWOT models to analyse the economic environment surrounding the UK Pub Industry, the following are key factors have been identified as having had an impact on J D Wetherspoon and their present position within the market, by outlining these factors and their current impact this will give insight into their future sustainability within the market;
The Licensing Act of 2003 was introduced in order to allow Clubs, Pubs, Bars, Supermarkets and Service Stations to apply for longer opening licences, granting of such licences is subject to the consideration of the impact they would have
Economic Environment
Module Leader:
Dan O’Hare
Essay By:
Nichola D. Robinson
(21042952)
Deadline Date
Tuesday 13th November 2012 A. Using economic concepts from the module; identify the key factors from the economic environment that affect an organisation of your choice.
B. Evaluate the effect of these factors on the organisation.
You should identify a range of relevant factors, and concisely ascertain the impact on your chosen organisation.
J D Wetherspoon plc. is a British pub chain founded in 1979 by Tim Martin, promoting low prices, long opening hours and no music, they also operate the Lloyds No. 1 chain, Wetherspoon Hotels and to date own 860 outlets.
Around the early 1990s, they began selling off their smaller or less profitable outlets and replacing them with larger premises close by, there are now around 100 outlets which were originally part of the chain and none of the earliest outlets in the chain are still part of the estate.
Reporting record sales in 2009 with takings growing by 1.2% and pre-tax profit up by 13% to £66.2 million; although it was a record for sales it did not reach record profits due to the increases in government tax and duty.
December 2009 saw a plan to invest £250 million in 250 new pubs across the country over a five year period.
Using both PESTEL and SWOT models to analyse the economic environment surrounding the UK Pub Industry, the following are key factors have been identified as having had an impact on J D Wetherspoon and their present position within the market, by outlining these factors and their current impact this will give insight into their future sustainability within the market;
The Licensing Act of 2003 was introduced in order to allow Clubs, Pubs, Bars, Supermarkets and Service Stations to apply for longer opening licences, granting of such licences is subject to the consideration of the impact they would have
References: J D Wetherspoon Website. (2012, November). Retrieved November 2012, from http://www.jdwetherspoon.co.uk/ Fletcher, N Robinson, N. D. (2012). Five Year Financial Analysis of JD Wetherspoon Plc. Sheffield. Note, K. (2012). J D Wetherspoon Plc. Key Note. Ltd, M. G. (2012). Pub Visiting. Mintel Group Ltd. • Gillespie, A. (2011). Foundations of Economics. United States: Oxford University Press.