Business Strategy Sara Aldridge, Iain Blinko, John Cubbin, Richard Marrett and Vicky Palmer Licensed...
-
date post
19-Dec-2015 -
Category
Documents
-
view
219 -
download
5
Transcript of Business Strategy Sara Aldridge, Iain Blinko, John Cubbin, Richard Marrett and Vicky Palmer Licensed...
Business Strategy
Sara Aldridge, Iain Blinko, John Cubbin, Richard Marrett and Vicky Palmer
Licensed Houses
Licensed Houses : Environmental Analysis
Identify key opportunities and threats
Assess the nature of the environment
Audit environmental influences
Identify key competitive forces
Strategic position
Identify competitive position
Source: Exploring Corporate Strategy 4th Edition, Johnson, G & Scholes, K 1997
Licensed Houses : Drinking Trends
• A shift away from full-bodied dark drinks, like stout,whisky and dark rum.• A growing liking for lighter coloured drinks like lager and vodka.• The rise of the wine-drinking habit.• A major shift in the place of consumption away from the on-trade towards the off-trade.• Growing appreciation of foreign, imported, premium beers.• 12 million + people visit a pub at least once a week (second only to T.V. viewing).• In a Mintel survey of 25,000 people from 1995 to 1999 the percentage of pub visitors varied by approximately 1%.
Licensed Houses : Annual Pub Turnover
TOTAL OUTLETS TOTAL TURNOVER £BN TURNOVER PER OUTLET £ WEEKLY TURNOVER £
1996 72,329 20.6 284,804 5,4771997 71,846 21.3 296,400 5,7001998 71,700 21.9 305,292 5,8711999 71,048 22.4 314,600 6,0502000 70,504 22.7 322,400 6,200
2001 (EST) 70,675 23.3 329,680 6,340
19
19.5
20
20.5
21
21.5
22
22.5
23
23.5
1996 1997 1998 1999 2000 2001
Turnover £Bn
Licensed Houses : Turnover of Chains/Independent Pubs
0
2
4
6
8
10
12
14
16
18
1996 1997 1998 1999 2000 2001
Pub Chains £BnIndep. Pubs £Bn
INDEP. OUTLETS INDEP. OUTLETS £BN INDEP. AS % OF OUTLETS INDEP. AS % OF TURNOVER
1996 36,113 8.3 49.9 40.11997 34,888 8.2 48.6 38.51998 30,664 7.4 42.8 33.91999 29,579 7.3 41.6 32.42000 28,352 7.2 40.2 31.5
2001 (EST) 26,891 7 38.0 30.0
Licensed Houses : Catering RevenueFAST FOOD PUB CATERING RESTAURANTS OTHER CATERING TOTAL
£Bn £Bn £Bn £Bn £Bn
1990 4.49 2.94 4.14 2.37 13.941991 4.86 3.02 4.24 2.41 14.521992 5.20 3.17 4.23 2.47 15.071993 5.57 3.36 4.32 2.57 15.811994 5.95 3.57 4.46 2.69 16.671995 6.25 3.75 4.59 2.85 17.441996 6.55 3.93 4.84 3.07 18.381997 6.91 4.14 5.10 3.27 19.431998 7.38 4.41 5.36 3.43 20.591999 7.96 4.59 5.62 3.49 21.652000 8.42 4.80 5.83 3.64 22.69
0
1
2
3
4
5
6
1990
1992
1994
1996
1998
2000
PUBCATERINGTURNOVER£Bn
Licensed Houses: PEST Analysis
POLITICAL• 24 hour licensing laws• Minimum wage• Monopolies• Disabilities Discrimination Act
ECONOMIC• Customer PDI rates• Recession• Euro• Expansion
SOCIAL• Leisure trends• Population trends• Fashion• Consumer spending• Transportation
TECHNOLOGICAL• Increased use of I.T.• Centralised purchasing• Automatic measuring systems• New innovations
Licensed Houses: Scenario Analysis
• 24 hour licensing laws
• Increase in price of home sports viewing
• Drink driving• Smoking ban in
pubs
• War on Terrorism • Foot and Mouth
Outbreak• Decrease in
popularity of alcohol
Licensed Houses : 24 Hour Licensing - Stakeholders Map
Minimum Effort Suppliers (+) Lenders (+)
Keep Informed Local People (-) Customers (+) After hours food outlets (+) Police (+)
Keep Satisfied Employees (+)
Key Players Government (+) Bar Owners (+) Nightclub Owners (-)
Licensed Houses: 5 Forces Analysis
POTENTIAL ENTRANTS
SUBSTITUTES
SUPPLIERS BUYERS
Economies of Scale Capital Requirement Distribution Competition Differentiation Takeovers Legal
Male and Female Aged 16+
Breweries Drinks Suppliers Food Suppliers
Eating and Drinking at home ‘Doing without’
Threat of Entrant
Threat of Substitutes
Bargaining Power
COMPETITIVE RIVALRY
Balance of Competition Product Lifecycle
Fixed Costs Differentiation
Takeovers
Bargaining Power
Source: Exploring Corporate Strategy, 4th Edition Johnson, G & Scholes, K 1997
Licensed Houses: Organisational Structure
Licensed Houses : Pub Market Segments in Bournemouth
A3%
B36%
C3%D
16%
E29%
F13%
A – Local PubB – Modern PubC – Family PubD – Café/BarE – Yuppie BarF – Pre-Club Bar
Licensed Houses : Directional Policy Matrix
Strong Medium Weak
High
Medium
Weak
A
C
B D
F
E
A3%
B36%
C3%D
16%
E29%
F13%
Licensed Houses : Product Life Cycle
AB
C
D
E
F
A – Quiet LocalB – Modern PubC – Family Eating D – Café/BarE – Yuppie BarF – Pre-Club Bar
Licensed Houses: SWOT Analysis
STRENGTHS• Good social environment• Chance to escape/relax• More choice
WEAKNESSES• Unemployment rise, fall in PDI• Current licensing hours
OPPORTUNITIES• Home deliveries• Expansion of chain brands• 24 hour licensing
THREATS• Supermarkets, off-licenses etc• Home delivery of alcohol• Growth of ‘pre-club’ bars
Licensed Houses : Predictions 1-5 Years
• Industry expansion after initial downturn
• Increase in chain owned SBU’s
• Commercial branding will saturate the market
• 24 hour Licensing will become available to all
• The catering percentage of public houses total revenue will increase
Licensed Houses
Any Questions?