Competitive Advantage in a Changing World

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
1

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
2