Evaluation of Environment and Strategy of Leon Restaurant

This report evaluates the environment and strategy of Leon Restaurant through PESTLE and Porter's 5 forces analysis. It also examines the operations and resources of the restaurant.

INDIVIDUAL
REPORT

EXECUTIVE SUMMARY
Business environment reflect the working of the internal and external factors
which reflect the overall working position of the organization. As present report is
based upon the Leon restaurant which carry the fast food chain in market and their
main focus is to be sustain customer through providing the best services and also the
food is served by keeping the needs of the health-conscious clientele. In this report the
PESTLE and Porter five forces is conducted to determined the aspects relating to
working of the macro environment. In this the resources and capabilities of the
organization are also identified so that they can maintain the integrity of the restaurant
for longer way.

Contents
EXECUTIVE SUMMARY.......................................................................................................................2
INTRODUCTION.....................................................................................................................................4
Evaluation of environment of Industry through PESTLE and Porters 5 force analysis......4
Determining the strategy of Leon Restaurant................................................................................5
Examining the operation conducted under Leon Restaurant....................................................7
CONCLUSION........................................................................................................................................8
REFERENCES........................................................................................................................................9
APPENDIX.............................................................................................................................................11

INTRODUCTION
This report covers the whole study of the Leon’s restaurant which was one of
the fastest food chains in UK. The concept of this restaurant is brought by the John
Vincent, Henry Dimbleby and Allegra McEvedy in 2004. After having continuous
success of this concept, this restaurant is awarded with one of the best restaurants in
Great Britain. The main reason of choosing this report on this topic is to identify the
factors which is analyzed in respect of contributing to the gain various competitive
advantages (Business environment, 2019). This report will include the completed
evaluation of the organization in respect of conducting the PESTLE and porters 5
forces analysis It also includes the strategies which is adapted by Leon restaurant in
respect of identifying the resources and capabilities.
Evaluation of environment of Industry through PESTLE and Porters 5
force analysis
In respect of conducting PESTLE which is relevant to be discussed in appendix,
the matters which is relevant to this Leon restaurant is that in respect of
- Political: It affects the Leon restaurant in respect of expanding the business into
different countries., As every country had certain rules and regulation regarding
carrying the import activities. In such manner, the restriction is imposed in
respect of taking the right decision.
- Economic: In respect of inflation rates, the economy of the country is determined
in respect of dealing business at large scale Thus, management is to be done in
respect of dealing the business with accurate planning and procedure.
- Social: As the demand of the customer are changes and it mainly depends upon
the change in culture. Thus, in such manner the foods are to be offered by
keeping the culture in mind and also able to fulfil all the needs of the people
from different culture.
- Technological: In respect of advances technology, Leon restaurant mainly
forward their business through online. As through this aspect they able to reach
large customer and also resolve their issue by interacting with them through
technology.
- Legal: In these matters, before dealing in any business activity, the laws are to
be taken care and also to be carried in respect of carrying any transaction or
innovating any products in restaurant. Through this manner, they take care of
the customer health and safety and also deal in accurate and quality services to
their clients.

- Environmental: In this due to changes in climatic condition, the issue raises in
respect of timely delivery of orders. Thus, in such manner, decision of the
customer is fluctuated in respect of preferring the services of Leon restaurant in
near future or not.
In context of determine the strategies related to external environment the factors
are identified on the bases of political aspects. As in this the government had order the
owner of the Leon restaurant regarding watching the strategies which is adapted by the
Britain in respect of running the restaurant. In such manner, the issue arises in respect
of carrying the wider ranges of studies regarding the working criteria. Thus, they had to
learn the basic thing regarding undertaking the needs and demand of the customer
regarding preferring the particular products or services. In respect of challenges which
Leon restaurant faced in context of environmental factors is that due to changes in
climatic condition, the needs of the products are also changing and thus customer
preferred different products at particular time period. In such manner the issue arises in
respect of facing bad condition thus they unbale to reach within the particular time
period. This results in distracting the customer needs and demands at larger scale.
The major strength which is analyzed through carrying the porter five force
analysis is relevant to in respect of
- Competitive rivalry: In respect of competitors by focusing more on offering
discounts instead of managing the interiors of the restaurant.
- Bargaining power of suppliers: Suppliers carry the right as they deal in regular
perspective Thus, their happiness is the major aspects of the business for
smooth working.
- Bargaining power of buyers: They are more satisfied in respect of getting best
quality products at reasonable prices.
- Threats of new entry: As new entrance are less attractive; thus, they can retain
the customer interest through innovative promotional technique.
- Threats of substitute of products or services: Customer are confused regarding
choosing the best products but in case of Leon they already carry the renowned
brand name in market. Thus, it is easy to substitute the services in better way.
In respect of rise in technology, this is one of the latest megatrends which is
emerged in global market in near future. As through these aspects they able to reach
to large customer base.
Determining the strategy of Leon Restaurant
1) In respect of identifying the resources in Leon restaurant.
The resources which is identify under the restaurant is relevant to
- firstly, Human resources: In respect of human resources, their main duty is
to appoint the skilled person to handle the work in better way. This cane be
done in respect of advertising the vacancies or giving the post on social

media platform regarding the vacant post. Thus, in such manner, the
resources of the Leon restaurant are identified.
- Capital resources: This includes in respect of machinery or equipment’s
which is used on respect of manufacturing or producing the goods or
services. This is one the basic needs in restaurant as without this, they
cannot deliver quality products to their clients (Thompson, Strickland and
Gamble, 2015).
- Monetary or financial resources: It mainly stands the restaurant reputation
in the emerging market in respect of paying salaries to their clients or buying
goods from suppliers. It also results in helping Leon restaurant to expand the
business in other markets.
- Information resources: As this mainly results in using the advanced system
which is adapted by restaurant in respect of reaching to large customer
base. As information resources helps in respect of gathering data and
information from the market so that they can examined the competitor’s
strategy in respect of expanding the business at global level (Lloret, 2016).
Through these aspects, it helps Leon restaurant to reach customer and also
resolve their problems and issues in better way.
2) Capabilities of the Leon restaurant
In respect of enhancing the employees and customer towards the business,
there are various aspects which is to be examined as
 Leadership: In respect of enhancing the employees towards the work
premises, the leaders of the Leon restaurant adapts the democratic
leadership style. By these aspects they motivate the employees to
present their ideas and thought in the work place. They also give
freedom to implement such ideas to give better productive results.
 Communication skills: By having effective communications skills
results in attracting more customer needs (Lichy and Kachour, 2019). As
customer demand personally interaction and also their reviews are taken
in positive way. Through this manner they can able to grab their interest
for longer time period.
 Speed: As changes in work place always attract the customer and the
changes can be in respect of modification of foods or any interiors
change or also changes in the services criteria. Through these aspects
the capability of the restaurant is determined.
 Time management: Time is the major aspects in respect of reaching to
large customer base. As by delivering services within time and also
resolving their issue timely result in getting more interest of customer.
3) Evaluating the resources and capabilities
In respect of evaluating the resources and capabilities on the bases of VRIN
week as:
Value: As all resources which are needed in the restaurant carry the equal
importance.

Rareness: As every resources and capabilities are rare and it is not necessary
that it is adapted by every restaurant (Kukanja, Planinc and Šuligoj, 2016).
Imitability: It is not necessary that all the ideas are copied or implemented by
the competitive business.
Non- Substitutable: As the resources or capabilities which is carried by the
Leon restaurant is necessary to be costly. Thus, it is tough to be adapted by
various restaurant.
4) Sustainable resources and capabilities with comparing the success
criteria of the Leon restaurant.
In context of sustaining the business through adapting the resources and
capabilities in Leon restaurant, the megatrends which is examined is relating to
protecting environment (Sivadas and Jindal, 2017). Thus, this can be done
through examine the issue which is affecting the environment and also resulting
causing issue related to health or any other problems. Thus, in such manner, by
adapting he resources and capacities in right manner resulting in saving
wastages in restaurant.
Examining the operation conducted under Leon Restaurant
1. The operation of the Leon restaurant
In respect of above judgment, the resources and capabilities are identified and
then accordingly the decisions are raised through through carrying its operations such
as:
 Labor: Thus, it is managed through examining the day to day working of the staff
regarding producing the accurate orders (GHYS, 2017). As labor are to be
trained and motivated so that accurate guidance is given regarding the
production procedure.
 Food productivity and wastages of raw materials: In this, management is to be
done in respect of reusing the waste products to invent new dishes. In such
manner appropriate management is to be undertaken.
 Employee turnover: As the success of the restaurant is determined by satisfying
the needs and demands of the employees working in that premises. Thus, it
also requires in respect of treating them in better way.
2. Vision of the Leon restaurant
The vision of the Leon restaurant is to serve a good and hygienic food and also
impose nominal rate so that everyone carries the budget to buy the products. As this
procedure can be accomplished in respect of getting in building more contact or also
link regarding promoting such business (Álvarez and Sáenz, 2018). Thus, the major
importance is to bring the business online so that they can reach at large scale. AS
mots of the contract are made through digital platform and they can resolve the issue
of the customer which they are facing in respect of providing the accurate services.
3. Extend to which the organization supports

In respect of undertaking the matter related to carrying the organization support, it
is examined in respect of fulfilling the customer needs and demands in better way.
Due to having the changing trends, they customer are preferring the hygienic
product which is according to their diet and not carrying any fats (Yuan and Crooks,
2019). Through this perspective, organization is supporting their demand in better
way and also fulfilling it to attract them for longer time period.
4. Extend to which the operation is sustainable
In respect of sustaining the business for longer way, the products which is used
must be ecofriendly and also not harm environment in any perspective. As to
sustain the business, they majorly carry for pillars such as human interest, social
needs, economic aspects and environment. Thus, in respect of Leon restaurant
they mainly focus on environment aspects.
CONCLUSION
From the above study, the report concluded that Leon restaurant carrying the
wider spread of the food chain and also engaging customer towards the products and
services. In such manner the mega trends which is determined by the restaurant in
respect of protecting the environment is the biggest concept of every restaurant. As
pestle is conducted to determined the macro factors which affecting the business and
also helps them to undertake the methods for better results. By conducting the porters
five resulting in determine the market needs and also the strategies adapted by the
Leon to grab the customer interest. The main reason of conducting their report and
factors to be examined is relating to the capabilities and resources which Leon
restaurant uses to expand the business at large scale.

REFERENCES
Books and Journals
Álvarez, J. G. C. and Sáenz, A. B. M., 2018. Success Factors of a Quality Model
Award. Red Internacional de Investigadores en Competitividad. 6(1).
Carballo, R. R., Carballo, M. M. and León, C .J., 2018. 3 The tourist centres’
image. Green Events and Green Tourism: An International Guide to Good
Practice.
GHYS, T., 2017. Exploring the Potential of Belgium’s Social Restaurants for Poverty
Reduction. Japan Social Innovation Journal. 7(1). pp.23-32.
Hwang, B. N., Huang, C. Y. and Wu, C. H., 2016. A TOE approach to establish a green
supply chain adoption decision model in the semiconductor
industry. Sustainability. 8(2). p.168.
Jayanthi, S., 2017, July. Sustaining the Identity of the Indian Woman in a Multicultural
Realm “Mrs. Sen” in Jhumpa Lahiri’s Interpreter of Maladies. In Journal of
English Language Teachers’ Interaction Forum. (Vol. 8, p. 16).
Kukanja, M., Planinc, T. and Šuligoj, M., 2016. Influence of managers' demographic
characteristics on CSR practices in the restaurant industry: the case of
Slovenia. Tourism and hospitality management. 22(2). pp.151-172.
Lawrence, H., 2019. The Ethics of Eating: A Comparative Study of Sustainable
Restaurants in Austin, TX and London, UK. The Rice Examiner. 2(1). pp.47-73.
Lichy, J. and Kachour, M., 2019, June. Big Data Perception & Usage: A Micro-Firm
Perspective (The Case of the French Traditional Restaurant Sector).
In Proceedings of the 2019 3rd International Conference on E-commerce, E-
Business and E-Government. (pp. 89-94). ACM.
Lloret, A., 2016. Modeling corporate sustainability strategy. Journal of Business
Research. 69(2). pp.418-425.
Naderian, A. and Baharun, R., 2015. The role of service quality and relationship
marketing in hospitality industry. International Journal of Economics,
Commerce, and Management. 3(3). pp.1-15.
Prieto, L. C. and et.al., 2019. The Four Cardinal Points of Entrepreneurship', African
American Management History: Insights on Gaining a Cooperative Advantage.
Thompson, A., Strickland, A. J. and Gamble, J., 2015. Crafting and executing strategy:
Concepts and readings. McGraw-Hill Education.
Van Tonder, E. and et.al., 2018. Perceived value, relationship quality and positive
WOM intention in banking. International Journal of Bank Marketing. 36(7).
pp.1347-1366.

Yuan, X. and Crooks, A., 2019, November. Assessing the placeness of locations
through user-contributed content. In Proceedings of the 3rd ACM SIGSPATIAL
International Workshop on AI for Geographic Knowledge Discovery. (pp. 15-23).
ACM.
Online
Business environment. 2019. Online. Available through:
<http://www.businessdictionary.com/definition/business-environment.html>.

APPENDIX
In respect of examining the effects of external environment in respect of
attaining the business opportunity in such manner PESTLE is conducted.
Through these aspects various factors are determined respect of gathering
information in respect of Leon restaurant working. Thus, PESTLE is conducted
on the bases of following factors such as:
Citation Factors
Thompson, Strickland and Gamble,
2015
Political: In these aspects, the factors
are affecting in respect of changes in
government policies regarding
preferring the healthier products. As
the interferences arise in respect of
pushing the public to buy diet
conscious products.
As most of the restriction of
government are in respect of
importing or exporting any goods or
services. Thus, in such manner the
laws are imposed in respect of
imposing the heathier and organics
products in their menu card which
affects the interest of the customer in
positive way.
Prieto and et.al., 2019 Economic: In respect of Leon
restaurant the changes are examined
in respect of changes in inflation rate.
As Leon restaurant are carrying the
restaurant in around UK, Europe and
USA and also it is examined that 54
restaurants are mainly in UK. Thus, in
such manner inflation rates and
changes in taxes resulting in affecting
the food chain in global market.
Carballo, Carballo and León, 2018 Social: These factors mainly affect in
respect of changes in consumer
demand and needs regarding
preferring the particular products. In
such manner the country mainly
focuses on getting the healthier
products in the restaurant which
doesn’t not raises any health issues.
In respect of this aspects, the impact
arises in respect of fulfilling the needs

and demands of the customer at
higher level.
Naderian and Baharun, 2015 Technological: In respect of matter
related to technology, it is expanded
in vast area. As various sources are
undertaken in respect of promotion of
food services at global level. Thus,
most of the companies uses the TV
channel to promote advertisement.
But due to changes in time customer
are spending mots of the time surfing
through internet or searching new
aspects to reach large customer base.
In such manner, the impact arises in
respect of using the advances
technology, so that Leon restaurant
can also track the list of inventories
and also manage the customer orders
online. As technology results in
bringing various competition in market
and customer prefer the services
where they get discount or offers on
particular eatables. In such manner
the impact results in reaching to large
customer base through digital
technology.
Van Tonder and et.al., 2018 Legal: In context of carrying the food
chain, government impose various
restriction and also norms in respect
of managing the control and quality of
the goods served. Thus, laws are
imposed in respect of taking care of
the public and also providing quality
services which results in safeguarding
their interest and also maintain their
health in better way. Thus, impact
arises in respect of working under the
laws which is imposed by government
regarding the Leon restaurant working
or expanding he business in different
countries.
Lloret, 2016 Environmental: In this aspects, the
major environment factors which
results in affecting in taking the right
decision is in relation to changes in
climatic condition. As business are

less taking care of the environmental
problems and carrying such activity
which affects the environment badly.
This result in facing problems in
respect of not following the
government norms in right manner.
The major reason arises in respect of
wastages in products which occurs in
respect of not preferring the meal or
wastages in raw material.
Porters 5 force analysis:
In respect of analyzing the result related to porter five force analysis, it
determined the different companies’ strategies in respect of retaining in market
for longer time period. Thus, there are various factors which determined the
porter five force analysis such as:
Citation Factors
Lawrence, 2019 Bargaining power of suppliers: In
respect of this aspects, the bargaining
power of supplies is examined in
respect of getting the employees to
work under the restaurant. Thus,
supplier impose the barging power in
respect of delivering labor to
accomplish the activity of the Leon
restaurant.
Kukanja, Planinc and Šuligoj, 2016 Bargaining power of buyers:
Customer rights is to bargain from the
restaurant after availing the services.
In respect of visiting to the restaurant
they had the power to make
bargaining regarding the offer or any
special scheme after ordering the
foods from the restaurant. In such
manner the bargaining power is
analyzed after vailing the particular
services.
Lichy and Kachour, 2019 Threats of new entrants: As
restaurant is such sectors where there
are wider range of restaurant exists
and, in such manner, new restaurant
also exist in respect of launching their
business through choosing the social
media marketing or any other platform

to promote the business. Thus, in
respect of maintaining the integrity in
market it requires to launch such
scheme which attract the customer
interest towrds the services for longer
time period.
Jayanthi, 2017 Threats relating to substitute
products or services: In respect of
this services, the threats arise in
respect of getting the same products
and services in all types of restaurant.
Thus, threat raise in respect of
preferring the right products. In such
manner the dishes and location of the
two restaurants are near this results in
facing tough competitors. In such
manner, the threats can be overcome
by viewing the other facility which is
provide in the restaurant such as
cleanness, equipment used, interior
and also services.
Hwang, Huang and Wu, 2016 Competitive rivalry: In this aspect,
the competitors arises in respect of
promoting the same products in
market and also targeting the same
customer regarding preferring the
same products. In such manner the
competitors arise and customer
mainly prefer such services which
carry the renowned brand name in
market. Thus, in respect of attracting
the customer towards their products
and services, they had to offer special
discount and scheme to their
customer if they prefer the services
online. Online is the biggest medium
source to reach large customer base
thus in such manner they can interact
with them personally and also resolve
the issue which they are facing in
respect of attaining their services.
Thus, PESTLE and porter 5 forces resembles the Leon restaurant working and
also helps them in resolving the issue in better way.