Business Environment Analysis

This report provides an analysis of the business environment, focusing on the case of Leon Restaurant. It covers the value chain model, micro-environmental forces, and reflection on the internal business environment. Discover how Leon Restaurant has become a popular fast food chain with a focus on healthy and vegan options.

Business Environment
Analysis

Contents
INTRODUCTION...........................................................................................................................1
INTRODUCTION...........................................................................................................................2
MAIN BODY..................................................................................................................................2
Leon Restaurants.........................................................................................................................2
Value Chain Model Of Leon.......................................................................................................3
Micro-environmental forces........................................................................................................5
Reflection on Internal Business Environment.............................................................................6
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................8
Online..........................................................................................................................................9

INTRODUCTION
Business Environment refers to the sum up of all the kind of factors that may be external or
internal which covers the managers, customers, profits, innovation and also the various trends
that use to be followed in organisation whether economic, social or technological. It provides the
detailed information about the emerging changes and also the requirements that is to be needed
in business (Leon: Fast food chain turns its restaurants into shops. 2020). The organisation
chosen for this report is Leon Restaurant, It is a Fast Food restaurant its headquarter is in
London, UK . This report will cover the value chain models which will provide the idea through
which product is introduced. Micro-environment forces and internal business environment.
MAIN BODY
Leon Restaurants
Leon Restaurant is a most popular Fast food Restaurant in London, UK. It was founded
in 2004 by John Vincent, Allegra Mcevedy and Henry Dimleby. This restaurant has covered
approx 61 locations till March 2020. This restaurant firstly deals with all the vegetarian and
plant based dishes mainly vegan but later on, they decided to add up healthy fast foods in there
menu and make it as there key element as with the growing trend and need of customers this was
marked as an important change. Leon has also expanded its work outside UK by following up
some more restaurant in other countries like in US, Dublin, Amsterdam. Leon has also started its
cookbook which has some bestseller recipes of there chefs, and with that they had also started
there on tableware line and cookware equipments (Porter's Value Chain. 2020).
This Restaurant works on an important policy in which one is equal pay for equal work
so all the employees working under them gets equal pay whether they may be of different age
group. They brought a new change in the food market by giving fast food a healthier touch, The
restaurant is providing various varieties of Natural fast food which is for every age group and
covers a vegan touch in food that means a people who love eating fast food but are scared of
eating it because of increasing calories and fat Leon made it easy for them by giving the
delicious taste and same products in healthier style (Business Environment. 2019) The restaurant
has also added up a Gluten free nuggets, desserts and products with a rich taste. It upgrade by
innovative styles and techniques for there restaurant so as to attract more customer and be the
best in the market. They aims at giving Mediterranean touch to there food by including fresh
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herbs, fresh veggies, proper and well nutrition meat. And there most important healthiest thing is
there Original New Salad (Leon restaurant, 2020).
Value Chain Model Of Leon
It is a model used for the business which covers all the activities used to make any
services or products. This model mainly helps out to analyse the company’s requirements and
markets need before introducing any new product in the market it focusses on giving the best
product at low cost (Value chain Analysis, 2013).
This models gives out all the process needed in order to introduce any new product that
may cover its manufacturing, raw material, licensing, testing and many more. The value chain
models help Leon to make proper strategies for the business and to secure more customer. There
has to be made several teams in order to work according to the model and Leon has various
departments which works and gives innovative ideas for their products efficiency.
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Illustration 1: Value Chain Model, 2016

 Inbound Logistics: This is the first process which covers the initial stage of product it
implies all the management of product, its receiving and also to transfer of product to
warehouse. Leon merely operates as a company which makes their own products and
they not only have single restaurant but have so many franchise all over. The restaurant
firstly decides that what kind of product is needed in the market and as they make the
vegan food and give it a touch of fast foods so they makes a proper planning like from
where they are going to get healthy veggies and select the gardens or the market which
helps them, and as there are so many Leon restaurant chain all over the world they keep
check on the requirements of raw material and food items which are not available in that
zone and tries to transfer (Inbound Logistics, 2018). Operations: Once the products is being selected then there made a procedure which helps
in converting raw material in the finished or final product. Leon has decided to use the
vegan or the healthy food items in their fast food range without any change in taste then
there team focuses on how to convert the boring food into something healthier and tasty.
There chefs and the other team tries to innovate and expand there thinking ability of
making a fast food healthier without loosing its essence of taste.
 Outbound Logistics: This refers to the final product distribution to the customers, Leon
operates there restaurants in various formats like they provide Dine-in services where the
waiters and waitress takes the order, this usually covers all the families and friends to
come together as Leone has a perfect ambience and they welcomes there guest in a heart
warming way and makes them take the best dine-in experience, Other than this sit-down
service it also provides take-away facility and online delivery through this they tries to
cover all kind of customer whether that may be working from home or families. They
also have a team which takes care about all the precautions taken during delivering of
food items as they takes the proper sanitisation, and cleanliness while delivery (Outbound
logistics, 2020). Marketing and Sales: In this step it covers all the strategies which is used in order to
attract more customers and to attain maximum profit and for companies uses various
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platforms like advertising, printing or making certain offers which makes customers to
come over there (LEON RESTAURANT SWOT ANALYSIS. 2017)(L D C ’ S T O P
F I V E F A S T F O O D B R A N D S O F 2 0 1 7 - # 3 L E O N LEON RESTAURANT
CAMPAIGN TO FEED NHS REACHES £1M TARGET. 2020)Leon has a prominent
image as a restaurant in UK and they also expanded there business globally and for that
they uses certain advertising ways even wit that they tries to connect with there regular
customers by direct mails and calls in order to tell them about the new offers and
discounts on there food item as Leon is also having their own cookbooks they gave
various brief about there new launch and bestsellers in order to give customer knowledge
about their products. There theme of providing healthy fast food is advertised through all
online means in order to draw customers attention.
 Service: This is the final program which covers all the services provided to the customers
in order to maintain the value of products and gain a positive response of there customers
like refund, exchange, repair and many more. Leon has the best services as they made a
team which focuses on the services being provided to the customers they make it
impressive like Leon provides an exchange of there food item if the customer is not
satisfied from the food, they even provide the refund to the customer if there is any
problem in the dish from there side, there team keeps check on the quality of food its
tasting, plating and presentation. The chef personally makes the fresh dishes and the team
takes the feedback of the customer about there experience in Leon.
Thus, this model helps in attaining the maximum customers and provides the best way
through which a product may be introduced in the market, Leon follow this model by applying
innovation and proper team management to make their product different from all.
Micro-environmental forces
There are 6 types of Micro environmental factors: Competitors: Company takes care of working of there rivalry, it keeps checks on the
working of the opponent so as to make there product more efficient, Leone as has a good
image all over the world but there is a massive competition in the food industry so there
is always a stress that any other company may come within better idea and may execute it
in perfect way.
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Customers: Companies fulfils customers needs and demands to gain maximum customers
by there work, but customers always want innovation in every area whether technology or food
and they also want to have good product at lower price. (Micro Environment of Business: 6
Factors of Micro Environment of Business. 2020). Leone has always came out with an
innovative idea of providing healthy fast food but they have to provide that in low pricing. Suppliers: They are the distributors who provides raw material to the companies and
provides raw material within optimum quality. As Leone has a good image in the market
and it deals with numerous of suppliers so this helps it to take ,material at lower cost.
Public: It refers to the general people of the area, as all the company has to make their
products according to needs of public. Leone has a team to keep check on the requirements of
the public which makes them aware about the idea of making products (PESTLE Analysis, 2020)
((Suppliers of Leon Restaurant, 2017). Market Intermediaries: It is a distributing agencies, which covers al the financial,
technical and market value of the organisation. Leone has so many distributing agencies
helps in working with better quality of product at lower cost.
 Workers and their Unions: Employees of the organisation has to maintain good relation
with the employees. Leone always guides and supports there employees and motivate
them in trainings.
Reflection on Internal Business Environment
Strength
 It provides unique menu and fresh food
every-time which attracts customers
which involves healthy junk food made
with proper olive oil.
 They try to use innovative techniques
by making their own healthy salad and
healthy fast food that makes it more
attractive (THE RISE OF LEON
RESTAURANTS – HOW THEY
TURNED ‘HEALTHY EATING’ INTO
A GLOBAL BUSINESS. 2019)...
Weakness
 They are quiet expensive in comparison
to other fast food items which makes
customers shift towards it.
 It is tough to serve fresh food to all at a
same time which makes it delay in
there services and sometimes make
customers angry.
 Organic food has different zones and
areas to be developed and sometimes it
is difficult to do that as the
unavailability can be a big threat at
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 They give there product at average cost
which makes customers to come
frequently and to get good taste and
healthy products at lower pricing.
times.
Opportunity
 They may also add some healthy
beverages with there meals by using
some innovative techniques.
 The restaurant can expand in the areas
where they had not reached yet so as to
gain more customers globally and can
earn more profits.
 They use such material in serving
which can be recycled and reused and
helps in sustainability of the
environment like use of serving plates
should be eco-friendly, and can also
add up all the reusable items.
Threat
 New restaurant with that same idea and
with lower pricing can decrease its
market value and will adapt that same
techniques in an innovative way.
 The changing market conditions can
attain the restaurant in more risking
face as through the changing trend
customers shifts in other places as well.
 After coming of Brixit there are so
many policies which are changed which
results in change of all the prices and
variations and that created a revolution
in all the sectors.
CONCLUSION
From this above report it is concluded that, Business environment refers to all the
organisation, entities, individuals and also the working of employees. A value chain model is
being applied as it helps the company to introduce new products in the market by giving its steps
and the way through which it is launched. This model helps to frame strategies in the company
for enhancing its business. Furthermore, it is analysed from the report that Micro environment
factors are effective tool for the organisation and for customers, suppliers, people,workers,
public. It also covered SWOT which helps in effective business strategy.
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REFERENCES
Online
Porter, M.E.(1985). Competitive Advantage: Creating and sustaining superior performance. New
York: Free Press.
Leon: Fast food chain turns its restaurants into shops. 2020. [Online] Available through;
< https://www.bbc.com/news/business-51996773>.
Porter's Value Chain. 2020. [Online] Available through;
< https://www.mindtools.com/pages/article/newSTR_66.htm >.
Business Environment. 2019. [Online] Available through;
< https://www.economicsdiscussion.net/business-environment/business-environment/
32496 >.
Micro Environment of Business: 6 Factors of Micro Environment of Business. 2020. [Online]
Available through; < https://www.yourarticlelibrary.com/business/micro-environment-of-
business-6-factors-of-micro-environment-of-business/23370>.
LEON RESTAURANT SWOT ANALYSIS. 2017. [Online] Available through;
< https://gardenchapelchurch.org/wvowae/leon-restaurant-swot-analysis-3f74b8html>.
L D C ’ S T O P F I V E F A S T F O O D B R A N D S O F 2 0 1 7 - # 3 L E O N . 2018.
[Online] Available through; < https://www.localdatacompany.com/blog/ldcs-top-five-
fast-food-brands-of-2017-3-leon>.
LEON RESTAURANT CAMPAIGN TO FEED NHS REACHES £1M TARGET. 2020. [Online]
Available through; < https://www.thedrinksbusiness.com/2020/04/leon-restaurant-
campaign-to-feed-nhs-reaches-1m-target/>.
PESTLE Analysis, 2020. [Online] Available through; <https://pestleanalysis.com/pest-
analysis/>.
Value chain Analysis, 2013. [Online] Available through;
<https://strategicmanagementinsight.com/tools/value-chain-analysis.html>.
Inbound Logistics, 2018. [Online] Available through; <https://smallbusiness.chron.com/inbound-
logistics-manufacturing-14398.html>.
Outbound logistics, 2020. [Online] Available through; <https://optimoroute.com/outbound-
logistics/>.
Leon restaurant, 2020. [Online] Available through; <https://leon.co/>.
Suppliers of Leon Restaurant, 2017. [Online] Available through;
<https://www.foodserviceequipmentjournal.com/exclusive-leon-working-with-
suppliers-to-reduce-kitchen-costs/>.
THE RISE OF LEON RESTAURANTS – HOW THEY TURNED ‘HEALTHY EATING’ INTO A
GLOBAL BUSINESS. 2019. [Online] Available through; <
https://www.businessleader.co.uk/why-are-leon-restaurants-at-the-forefront-of-the-
healthy-food-revolution/63504/>.
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