Local, national and European economies impact on Vauxhall Motors and JD Wetherspoon Essays

Local, national and European economies impact on Vauxhall Motors and JD Wetherspoon Essays Local, national and European economies impact on Vauxhall Motors and JD Wetherspoon Essay Local, national and European economies impact on Vauxhall Motors and JD Wetherspoon Essay In investigating to what extent local, national and European economies impact on two contrasting organisations within the UK, Vauxhall Motors and JD Wetherspoon provide a interesting and informative perspective to base this on. An organisation has traditionally been defined as a group of people with a common purpose. According to this view, the organisation is a distinct entity separate from its environment. This means that if the organisations environment changes the organisations has to adapt. So in looking at economics, which is essentially an organisations environment, you need to understand what exactly economics are. The fact is economics affect our daily lives. Continually we are being made aware of local, national and international economic problems, and continually we are faced with economic problems and decisions of our own. Basically economics is essentially about money. This is measured by how much money people are paid, how much they spend, what it is costs to buy various items, how much moneys firms earn and how much money there is in total in the economy. But despite the large number of areas in which our lives are concerned with money, economics is more than just the study of money. There are many areas such as the production and consumption of goods, demand and supply, which affect organisations. With this is mine two UK companies which have been affected heavily in recent years buy local, national and European Economies are Vauxhall Motors and JD Wetherspoon. They have been affected in very different ways and this report will try and demonstrate the ways in which these companies have been affected. Vauxhall Motors Firstly Vauxhall Motors is one of the longest established motor manufacturers in the world, and part of the worlds largest corporation General Motors. Founded in 1903 the company now employs 7,000 people directly, and supports an estimated 30,000 further jobs in the UK. It is estimated that approximately 100,000 people are employed throughout the entire supply chain to support Vauxhalls presence in the UK from raw material suppliers to dealership staff. One major manufacturing facility, UK parts warehouse and headquarters are located in the Luton area. The second major manufacturing facility where the Astra is produced was opened in Ellesmere Port in 1963, and in 1992 a major engine facility was added, exporting V6 engines and components throughout the world. Latest Position During 2001 car production continued at both the UK sites. As part of Europe-wide restructuring to stem losses and return GMs European operations to profitability, 2000 ended with the difficult announcement that car production at the Luton plant would cease in 2002. Throughout the year the manufacturing plant developed and implemented a strategy for a dignified end of production, scheduled for the end of March 2002. For a look at its current position please see appendix A. On the same site is Vauxhall Powertrain, which produces V6 engines for GM-Fiat Powertrain customers around the world. With increased sales volumes in 2001 the company became the leading supplier of UK-produced vehicles to the domestic market, and Vauxhall also boasts the widest range of UK-manufactured cars and vans, including Astra, Astravan Frontera, Vectra and Vivaro. Vauxhalls average total employment for the year was 8,362, excluding some 500 staff transferred to GM Fiat powertrain and purchasing joint ventures during 2001. With the plant at Ellesmere Port, Vauxhall is the largest private employer in Cheshire. Also for employees, Vauxhall have enhanced Family Friendly policies, offering a new industry-leading maternity and paternity benefit programme. Retail operations are provided by 507 franchised retailers throughout the UK. From looking at Vauxhall current position you can see its main aim to get back to profitability. (See appendix B) JD Wetherspoon JD Wetherspoon on the other hand is a fairly new company and has an organic growth in process. A 24-year-old law student named Tim Martin acquired his first ever pub in North London in December 1979, but he could never have envisaged how popular his style of operation was to prove. He is said to have been spurred on by the lack of good quality pubs in the area where he was living, he decided to take action by purchasing the outlet he drank in, which he named Wetherspoons. His first pub offered a good range of cask-conditioned beers in a music-free environment. Twenty years on, the range of beers and the absence of any music, form the twin cornerstones of the companys pubs, together with their all-day food and non-smoking areas. In the formative years of the company, Wetherspoon pubs were all located in North London. But, as the company grew, it began to open pubs across London and in the Home Counties. Following its successful Stock Market floatation in 1992, Wetherspoon began to expand rapidly. In 1994 it opened its first pub in the Midlands, The Square Peg in Birmingham, followed by others in major cities, including Bristol, Liverpool and Manchester. (See appendix C) Latest Position There are now more than 435 Wetherspoon outlets throughout the UK. The company aims to continue opening new pubs for the foreseeable future. Wetherspoon Chairman Tim Martin said: in the past 20 years Wetherspoon has grown from a single pub to a national company. However our commitment to comfortable, music-free pubs offering excellent beer, all-day food and first-class service has remained consistent, regardless of the size of the company. Wetherspoon is set to open approximately 80 new Pubs and Lloyds No.1 bars during the next 12 months as it builds on a record-breaking year. In the financial year ended July 28 2002, the companys turnover and pre-tax profits were at their highest levels ever. A total of 87 outlets opened across the UK in the year, including unprecedented numbers of Lloyds bars and Wetherspoon Lodges. (Please see appendix D) Types of Organisations There are many ways of classifying organisations: large, medium or small; local, national or international; primary, secondary or tertiary. However for the purpose of this report the best way to define them is either private, public, charitable and voluntary. Both Vauxhall Motors and JD Wetherspoon are Private organisations. Vauxhall is a larger company than JD Wetherspoon. Vauxhall has international links where JD Wetherspoon is UK based. Essentially both companies provide a service to its customers and would be considered large companies. The service they provide is very different and they dont have any link, or hopefully they shouldnt. The main thing to remember between the two from there latest positions are one is in decline (Vauxhall Motors) and the other is growing rapidly (JD Wetherspoon). Organisations Purpose, Aims and Objectives Organisations need to have aims and objectives to be able to focus on the clear direction needed for success in the modern business world. The aim is the overarching goal for the organisation, which can be broken down into a subset of objectives to achieve the aim. Business organisations aims usually relate to profit, market share, return on capital employed, sales, growth, levels of service and customer/user perception. In the case of both Vauxhall Motors and JD Wetherspoon this is no different. Vauxhall Motors In 2000 reported that the main economic challenge for Vauxhall was returning to profitability. Although economic performance in 2001 went some way to reversing the losses witnessed in 2000, a return to profitability remains the overriding economic challenge for the company. Following the launch of a record four new products in 2000, a further four new vehicles were launched in 2001 (Vivaro, Combo, Corsavan and Astra convertible) assisting sales through the year, and with the launch of New Vectra in 2002 and extensive cost saving and revenue building programmes in place, Vauxhall aims to break even in 2002 and return to sustained profitability in 2003. So using initiative and new ideas is an objective of Vauxhall to get back to profitability. But essential Vauxhall have much the same objectives as of any other company. JD Wetherspoon The organisation owns and operates pubs throughout the UK. Without the gimmies of profit, market share etc. The company aims to provide customers with good-quality food and drink, served by well-trained and friendly staff, at reasonable prices (See appendix E). The pubs are individually designed and excellently maintained. This has been an underpinning aim of JD Wetherspoon as they look to such areas of customer loyalty as a method of increasing profits. Some companies, especially pubs, have not had this in mine and there is not enough emphasis on customer service. JD Wetherspoon is said to be always committed to quality, choice and value. JD Wetherspoon has taken a simple idea that people go to pubs for good beer, food and service, in a clean and friendly environment and turned it into a major success story; one which is growing by two new openings each week. JD Wetherspoon is said to give as much back to our people as possible and have one of the best benefits packages in the business. The other major aim is to continue its rapid growth this is proving the country with jobs. Essential Vauxhall are trying to claw its way back where as JD Wetherspoon is onwards and upwards with its aims and objectives. Responsibilities Organisations have a range of responsibilities to their stakeholders. Both these organisations have many responsibilities. Social During 2001 Vauxhall developed an umbrella social policy, which summarises a number of existing policies into a single document. The aim of the policy is to communicate better with employees and the wider public on key issues to Vauxhall, including health and safety, human rights, equal opportunities, community involvement and supplier conduct. A look at the Vauxhalls social highlight and challenge can be seen in appendices F and G. Environmental Responsibility for environmental issues is delegated throughout the company, from the Managing Director, who is the main board environmental champion, to the shop floor. Corporate issues are discussed and agreed by the Environmental Issues Team, which comprises individuals with environmental responsibilities from various parts of the company. So essentially Vauxhall are meeting their responsibilities in designing schemes and methods to measure this. Vauxhall have also won many awards in this area (See appendix H).A look at the Vauxhalls environmental challenge can be seen in appendix I. JD Wetherspoon has more social responsibilities due to the area of the pub business. This is in the sense of the area of alcohol, which is not socially responsible in the first place. JD Wetherspoon is meeting its responsibilities by been profitable and providing excellent quality of service.