Competitive Advantage in a Changing World

This report analyzes the main factors that can help Leon Restaurants gain competitive advantage in a changing world. It includes a critical evaluation of the industry environment, strategy, resources, capabilities, and growth strategy.

COMPETITIVE
ADVANTAGE IN A
CHANGING WORLD

TABLE OF CONTENTS
Introduction......................................................................................................................................1
Critical evaluation of the environment of the industry in which the Leon Restaurants operates....1
PEST Analysis.............................................................................................................................1
Review of emerging megatrends that are applied to restaurant trade..........................................2
Determination of strength of Porter’s 5 forces............................................................................3
Summary of industry environment..............................................................................................3
Critical evaluation of the strategy of Leon Restaurants...................................................................3
Identifying the resources of Leon restaurant...............................................................................3
Identify the capabilities of organization, evaluate the all essential resources and capabilities...4
Compare the sustainable resources and capabilities with Industry sector and impact on the
Mega Trends................................................................................................................................6
Critical evaluation of the growth strategy of Leon Restaurants......................................................7
By using the information or data that can gather from resource and describe about the
operation of Leon Restaurants.....................................................................................................7
Discuss about the vision of Leon restaurants..............................................................................7
Critically assess the extent to which government supports the delivery of vision......................8
Evaluating the extent to which strategy is become sustainable...................................................8
Conclusion.......................................................................................................................................8
REFERENCES..............................................................................................................................10

Introduction
Leon Restaurants is a fast- food chain that was established in 2004 whose main headquarter is
in London, UK. Founders of this fast- food chain were John Vincent and Henry Dimbleby with
chef Allegra McEvedy. First outlet of this chain was opened in 2004 in Carnaby Street and
initially it was named as Best New Restaurant in Great Britain but in 2009 when Leon became a
founding member of sustainable restaurant association this chain was named as Leon restaurants
(Leon Restaurant Vision, 2020). These restaurants are designed to meet desires and requirement
of health-conscious clientele as a result they have maintained a reputation of sustainable
practises. The main vision statement of Leon restaurants is to make it easy for everyone to eat
good food. They are focusing upon achieving this vision by serving fast food of high quality to
customers. The main purpose of this report is to analyse main factors that can help Leon
restaurants to gain competitive advantage. Overall structure of this report will cover critical
evaluation of environment of the industry in which PEST analysis and will be done and mega
trends will be identified, strategy of Leon restaurants will be analysed through VIRO, resources
and capabilities of organization and growth strategy of Leon Restaurants. Further in this
emerging issues and ways in which these issues can impact overall company values will also be
focused upon.
Critical evaluation of the environment of the industry in which the Leon
Restaurants operates
PEST Analysis
PEST analysis helps in analysing external factors that can influence a business in both
positive and negative manner. PEST Analysis of Leon restaurants will help in analysing ways in
which political, economic, social and technological factors affect Leon restaurant.
Political Factors: there are various kinds of political factors like tax reforms, health and safety
guidelines that can directly affect Leon restaurants that operate in UK. It is important for them to
adhere all the guidelines of government and maintain overall quality of food products as per
those government regulations and guidelines (Weiner, 2018). UK has strict food regulations that
forces restaurants to maintain overall quality of food products by adhering those regulations and
guidelines.
Economic Factors: Economic factors like change in inflation rate of a country directly impact
overall price of products. Increase in inflation rate can result in increase in overall prices of food
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and beverage products sold by Leon restaurant. Another factor that can impact operability of
Leon restaurants is disposable income of customers. If this, disposable income of customers is
high then overall sales of restaurant will also increase.
Social Factors: these are one of the main factors that can affect Leon restaurants. Change in
perception of people can impact overall business of Leon restaurants. Like Today a greater
number of people are becoming health conscious (Liu and Tse, 2018). Most of the people tend to
avoid oily, unhealthy or fatty or high calorie food products. Leon restaurants can focus upon
introducing organic and healthy food items for their customers. It will help them to attract a
greater number of customers.
Technological Factors: it is another important technological factor. Introduction of advance
technology can directly impact overall operability of Leon restaurants. Leon restaurants can
adopt this advance technology and taker their business online by taking orders online and
delivering orders to customers directly (King, 2020). They can also focus upon adopting advance
mobile technology for management of CCTV footage of restaurant, analysing customers
information in order to get to know their customers preferences, maximum preferred food items
etc. so that they can bring changes within their business accordingly.
Review of emerging megatrends that are applied to restaurant trade
There are various kinds of mega trends that are emerging in this food and beverage
sector.
 Today most of the organizations are focusing upon increasing their online presence in order
to provide their products and services to their targeted customer base. Online presence has
also helped organizations to enhance their overall business and operability. This mega trend
can be applied to restaurant trade as well (King, 2020). Leon restaurants can focus upon
increasing their online presence so that they can reach a greater number of customers in
shorter time period. This will help them to increase their overall revenue and sales directly.
 Third party home delivery service is the latest current trend. Due to current situation of
Covid-19 this trend of home delivery has boosted drastically. this mega trend can be applied
to restaurant trade as well because adopting third party service for delivering customers
orders can help Leon Restaurants to increase their overall revenue and customer base.
 Today most of the restaurants are focusing upon reducing their kitchen area and increasing
sitting area in order to accommodate a greater number of customers. Current situation of
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Covid-19 has further forced restaurants to maintain social distancing so for this they need to
increase their sitting area in order to accommodate a greater number of customers.
Determination of strength of Porter’s 5 forces
Some of the main strengths of Porters five force are: this model can help Leon
Restaurants to understand their current competitors in the market in which they operate. This will
help them to understand threat that current competitors can give to the restaurant (King, 2020).
Another strength of this framework is that it helps in identifying main strengths and weaknesses
of their competitor. This analysis further helps organizations to understand ways in which they
can overcome their own strengths and weaknesses and convert their weaknesses into
opportunities.
Summary of industry environment
From the above analysis it has been identified that in order to succeed in food and beverage
industry it is important for organizations to understand ways in which changing external
environment can impact their overall business. Organizations should focus upon continuously
studying and analysing their changing market in which they operate and bring changes within
their business accordingly. They should also focus upon current mega trends in the industry in
which they operate and focus upon bringing changes within their current business strategies
accordingly.
Critical evaluation of the strategy of Leon Restaurants
Identifying the resources of Leon restaurant
There are different kinds of essential resources that have been identified such as physical
resources, financial, human, technological and other marketing resources. This will help for
consideration of all essential resources in order to improve overall business performance in
global marketplace. It is mainly referred to the internal resources which are primarily held by
enterprise. Sometimes, it can be used to gain more knowledge of internal resources and their
value as foundation of acquisition of market resources (Casado, Salguero and et.al., 2019). In
Leon restaurant, it is mainly consider all different type of resources such as Blogs, publication of
restaurants, conference or event program *and another kind of association that help for providing
the best quality of communication supports of everyone. Additionally, it would be considered the
equipment’s such as chair, table and Linen Clothes facilities within luxurious rooms. In this way,
it can be identified the different resources within Leon Restaurant.
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Identify the capabilities of organization, evaluate the all essential resources and capabilities
By using VRIO analysis, it will sever as first analytical tool or platform to study about the
Leon restaurant, identifying the international resources and capabilities. This will help for
identifying the sources of competitive advantage (Nair, 2019). As per analysis, Leon restaurant’s
resource must identify the four different criteria such as Valuable, Rare, costly and imitate or
organise all capture values. But initially, it can defined the essential resources on the basis of
tangible as well as intangible assets. It involves capital, physical, workforce and equipment’s,
technological innovation. It enabled to the improve the capabilities which are exploiting the Leon
physical resources.
Resources/
capabilities
Value Rarity Inimitable Organizational
support
Competitiv
e
Advantage
-Free WiFi
- Accommodation
and luxuries rooms
✔
✔
Competitive
equality
- Meeting
space
- High
quality of
product and
services
- Local
Nightlife
spot
✔
✔
✔
✔
✔
✔
Temporary
competitive
benefit or
advantage
-Training or HR
management
- strong
environment or
culture
- customer
experience
✔
✔
✔
✔
✔
✔
Long term
Competitive
advantage
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- renowned brand
-Excellent
leadership
- sustainability
program of Leon
Restaurant
- innovation within
technological
aspect
-Excellent
leadership style
✔
✔
✔
✔
✔
✔
✔
Table: 1
As per analysing, It should consider all essential resources of Leon Restaurant via VRIO model.
Through this, it can easily detected that most effective way to products and other type of
competencies which giving a long term competitive advantage. Usually, Leon restaurant include
assets which are related to accommodation room facilities and standards services (Alauddin,
Ahsan and Islam, 2019). However, it will manage or control the meeting room space, size and
location. Leon restaurant have provided the flexibility within its room facilities whereas many
consumers attract towards restaurant.
Leon restaurant do have beautiful view and representing the traditional culture through
restaurant arts. It means that resources give them as temporary competitive advantage on the
basis of VRIO analysis.
All kind of resources allows them to sustain competitive advantage and typically branded
resources such as sound suits, pleasurable environment and decoration. These type of resources
are mainly include by Leon restaurant.
In Leon restaurant, restaurant manager is mainly focused on the excellent leadership style
and technical innovation (Darvishmotevali, Altinay and Köseoglu, 2020). For example-include
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necessary assets which provided by specific group of people that Leon restaurant is collecting or
gathering more benefits. Main example that is the most suitable for this study is related to
sustainability program of Leon restaurant. There are wide range of actions of restaurant,
experiences and knowledge are shared amongst of properties of individual groups. It allows them
to have access all types of deals, maintain better communication. In this way, it enabled to
improve the significant improvement within organization.
Compare the sustainable resources and capabilities with Industry sector and impact on the Mega
Trends.
In Leon restaurant, The sustainable resources are such as employee skills, knowledge of staff
members, sustainable equipment’s and other kind of sustainable green infrastructure. These are
considered the important resources that always support for improving overall business
capabilities and abilities. In this way, Leon restaurant can perform different accommodations
service in order to provide better facilities of their guest members. As comparison with
capabilities which means to define the ability of enterprises effectively make use of its
sustainable resources.
The continuous adaptation to sustainable resource that can directly impact on the overall
performance of Leon restaurant. It help to support in the improvement of their competitiveness
by identifying new strategies (Amar, Syariati and Rahim, 2019). In Leon restaurant, one way of
doing so is to provide strategic value to management of sustainable resources. In this respect, it
can utilise the restaurant information, together within technologies and system supporting. By
using sustainable resources, it will be managed effectively as well as efficiently in order to
favour the development of capability which leads to gain more sustainable competitive
advantage.
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Critical evaluation of the growth strategy of Leon Restaurants
By using the information or data that can gather from resource and describe about the operation
of Leon Restaurants
As per analysis, it has been gathered or collected different information about the Leon restaurant
and also integrating with the all department of restaurant. By using value chain, there are
different activities or operation performed by Leon restaurant.
It has found that logistics, operations of sales and marketing and in more general way,
giving service itself. Leon restaurant can perform different operation in order to target the
potential audience who are always inspire or motivate within accommodation services
(Darvishmotevali, Altinay and Köseoglu, 2020). Manager of Leon restaurant can interact with
sales team to promote the various service by using online channels.
Afterwards, Human resource department is doing some important operation to hire or
recruit skilled or talented people, who have already capabilities or abilities to handle complex
situation. Afterwards, it will provide the better facilities of restaurant’s guest and fulfil their
expectation level. Moreover, Information technology department can perform operation to
maintain or control back-up service for business perspectives.
For Supporting activities or operation, Human resource department, manager is focused on
the sustainable action through social operations in majority, personal development and flexible
working condition (Darvishmotevali, Altinay and Köseoglu, 2020). This will help for providing
the better benefit or advantage of Leon restaurant. Through these operations, it has found the
concept of innovative solution which is always support for entire business infrastructure.
Discuss about the vision of Leon restaurants
Main vision of Leon restaurant is to enhance the lives of existing consumers by enabling or
creating positive experience. This type of positive vision of Leon restaurant may be provide the
finest facilities and service in global marketplace. Afterwards, it will support for creating a good
place to staff members (Suryaningtyas and Irawanto, 2019). In this way, they can earn or achieve
profitable return by its owner. Leon restaurant has been creating the suitable vision and then
creating an effective environment so that each and every staff members to focus on their
organizational goals. It became easier for Leon restaurant to increase productivity as well as
profitability in global marketplace.
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Critically assess the extent to which government supports the delivery of vision
Government have been supported the Vision of Leon restaurant, which make develop or
create appropriate strategy that help to option for enhancing their business in marketplace. The
government has taken a major important decision to give relief of restaurant owner, deciding the
validity of approval or certification of restaurant (Suryaningtyas and Irawanto, 2019). In this
way, it is positively impact on the existing consumers whereas Leon restaurant can develop a
loyalty or trust among consumers.
Additionally, government has decided to implement suitable legislation that may support
for Leon restaurant in delivery of vision, achieving desirable goal or objective.
Evaluating the extent to which strategy is become sustainable.
A corporate sustainable strategy is one of the most prioritised which can setup different
actions. It is not only provide the agreed framework to concern about the focus investment and
drive the performance, engaging with external as well as internal stakeholders (Suryaningtyas
and Irawanto, 2019). Leon restaurant can use CSR strategy that will help for making important
decision to focus on the certain issue or problem.
Conclusion
From above discussion, it has concluded that Leon restaurant can gain more competitive
advantage within changing environment or culture, which is always influencing the potential
consumers to revisit within restaurant. In this way, it has been summarised about the importance
of analysis of Leon restaurant to collect or gather all essential resources. As per analysis, it has
identified that sustainable resources and capabilities of enterprise help to enhance overall
business performance.
In this report, it has been described about the primary main purpose of report is to analyse
main factors which can utilise by Leon restaurants. in this way, it gained more competitive
advantage or benefits in marketplace. Furthermore, it has been discussed about the critical
evaluation of environment of the industry by using PEST as external tool or platform.
Afterwards, it can examine the certain positive impact on the mega trends. In this documentation,
it has been explaining the strategy of Leon restaurants that applicable in the form of VIRO,
resources and capabilities of organization and growth strategy of Leon Restaurants. Moreover, it
has been emerging the issue or problem in which these issues can impact overall company value
and focused on the certain level which may improve current condition or situation of enterprise.
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REFERENCES
Books and Journals
Alauddin, M., Ahsan, S.H. and Islam, M.M., 2019. Investigating the relationship between service
quality, customer satisfaction and customer loyalty in restaurant industry: Bangladesh
perspective. Global Journal of Management And Business Research.
Amar, M.Y., Syariati, A. and Rahim, F.R., 2019. Enhancing Restaurant Industry Performance
Through Service Based Resources and Strategic Enterpreneurship (Case Study At
Restaurant Industries In Indonesia). Academy of Entrepreneurship Journal. 25(3).
pp.1-10.
Casado Salguero, G. and et.al., 2019. Competitive intelligence and sustainable competitive
advantage in the restaurant Industry. Sustainability. 11(6). p.1597.
Darvishmotevali, M., Altinay, L. and Köseoglu, M.A., 2020. The link between environmental
uncertainty, organizational agility, and organizational creativity in the restaurant
industry. International Journal of Hospitality Management. 87. p.102499.
King, C.W., 2020. Energy and Food: The Megatrend of Megatrends. In The Economic
Superorganism (pp. 25-57). Springer, Cham.
Liu, P. and Tse, E.C.Y., 2018. Exploring factors on customers’ restaurant choice: an analysis of
restaurant attributes. British Food Journal.
Nair, G.K., 2019. Dynamics of pricing and non-pricing strategies, revenue management
performance and competitive advantage in restaurant industry. International Journal
of Hospitality Management. 82. pp.287-297.
Suryaningtyas, D. and Irawanto, D.W., 2019. Exploring High-Performance Work Systems for
Sustainability in the Restaurant Industry.
Online
Weiner, M., 2018. Strategy plan for a full-service restaurant (Doctoral dissertation, California
State University, Northridge).
Leon Restaurant Vision. 2020. [Online]. Availalble Through:< https://leon.co/vision/>
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