Critical Evaluation of Leon's Restaurant: Business Environment, Strategies, and Operations

This report provides a critical evaluation of Leon's Restaurant, including an analysis of the business environment, strategies, and operations. It examines factors such as the industry environment, strategy evaluation, and the value chain analysis. The report also discusses the importance of sustainability and the role of technology in the restaurant's operations.

Individual Report
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EXECUTIVE SUMMARY
Respective project elaborates about the business and related activities in context of the
fast food chain in which the Leon's restaurant deals. With the help of various models such as
Porter five force, PESTEL analysis , VRIN analysis and value added tools organisation can be
able to evaluate their internal as well as external sources of environment to build strategies and
tactics accordingly. After analysing such factors organisation framed strategies to build positive
outcomes within the organisation to gain potential outcomes from them.
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Table of Contents
EXECUTIVE SUMMARY.............................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Critical evaluation of environment of the industry in which the Leon’s Restaurant operates....4
Critically evaluating strategy of Leon’s Restaurant:...................................................................6
Critically evaluating operation of Leon’s Restaurant ................................................................8
CONCLUSION................................................................................................................................9
REFERENCES .............................................................................................................................11
APPENDIX ...................................................................................................................................13
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INTRODUCTION
A business strategy defined as an combination of all the decisions taken by an
organisation and actions performed by an business in order to accomplish the goals and
objectives to gain competitive edge in marketplace. It is the backbone of business that provides
roadmap to attain desired level of performance and goals. This report is based on the Leon's
Restaurant which is the fast food restaurant chain based on the UK and established in the year
2004. this report is based on the critical evaluation of the business environment of the potential
industry in context of Leon and mega trends which directly affect on their business activities.
Further it includes the critical evaluation of strategies of respective restaurant by gathering
information about resources, capabilities by comparing industry success factors. In respective
assessment the factors which contributed to gaining competitive advantages in Leon's restaurant
by using various tools and techniques.
MAIN BODY
Critical evaluation of environment of the industry in which the Leon’s Restaurant operates.
For an organisation it is very much significant to conduct the through analysis of
environment that contributed towards building effective strategies and tactics in accomplishing
organisational goals and objectives (Albertini, 2019 ). Here are the various tools and techniques
to examine the business environment that are as follows:
PESTEL analysis:
Respective tool proved very much beneficial for an organisation to examine exterior
factors.
Political factors:
The political factors that directly impacts on the fast food industry that vary from industry
to industry. There are various kinds of regulations which affects on their business activities that
are wages, hygiene and quality of food as minimum wage rate vary from country to country
(Bustinza And et.al ., 2019. ). In context of Leon they have to maintain their quality of products
by taking care of hygiene to gain potential outcomes.
Economic factors:
Recession affects the business activities of fast food industry at large extent, since from
last days the spending power of consumers rapidly increased. In context of Leon's restaurant
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they to eliminate the negative effects includes the cheaper options in their menu card and focused
towards customer services in positive manner.
Social factors:
Health and life style trends directly affect on the fast food industry as people become
more aware towards the food and their quality (Clarke and MacDonald, 2019.). In which not
only just includes the fast food but also includes the snacks and beverages and other kinds too.
In context of Leon's restaurant due to the change in attitude of consumers they focus towards to
include the low calorie options in their food chain.
Technological factors:
Technological factors which is one of the most important driver for the growth in the fast
food industry. Respective sector not only rely on the attractiveness of menu and food quality
but services to customer and convenience are one of crucial factors that affect on the sales. In
context of Leon's restaurant they by using the marketing and advertising of brands leads towards
the growth and enhancement of their brand.
Emerging mega trends and identify those that apply to the restaurant trade:
For an restaurant chain market trends and demands of consumers plays very major role
to attract and attain loyalty to remain sustainable in the marketplace. Here are the some popular
trends in context of Leon's restaurant that are as follows:
In Today's competitive world to reach at large no. of consumers is very much important, in that
regards bring new concepts and innovation with the organisation and use various kinds of media
channels such as Facebook and Pop ups ads and many more in order to build potential market.
Crucial factors of Porter's model:
Porter's five force model is one of the most important tool for an organisation to
evaluate the factors which contributes in reaching the ultimate consumer base (Daneshvar
Kakhki and Gargeya, 2019). In context of Leon's restaurant they have low bargaining power of
suppliers and threat is moderate in context of new entrants. Further it elaborates that they have
wide variety of options to control the cost of the business in positive manner. They always focus
on the satisfy the consumers needs and wants by taking important measures to remain
competitive in business environment.
Concluding of industry environment:
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It is very much essential for fast food industry is to always bring something new
concepts or theme in the marketplace that helps to gain competitive advantages in proper manner
(Copacino, 2019.). In context of Leon's restaurant they adopt proper healthy measures and take
care about hygiene to attract and for giving always potential outcomes to consumers. There are
some crucial kind of trends occurs in respective industry usage of social media tools and
techniques and new themes that attract the youngsters towards them.
Critically evaluating strategy of Leon’s Restaurant:
For an organisation to evaluate the strategies and tactics it is very much essential to
examine the resources and capabilities in order to remain always competitive in marketplace.
Resources:
Leon's restaurant which is one of the most well known fast food chain in the market of
UK that bring in the marketplace with the natural products that not proved harmful for body. To
reach at ultimate consumer base the major resource that are used by them are tools and
techniques, effective manpower and many more.
Capabilities:
The major capabilities of Leon's restaurant that they by using the advance tools and
techniques build one of most effective and potential food products that helps them to gain
economies of scale and best serving style to consumers.
VRIN analysis:
VRIN framework is one of the most crucial kind of tool that helps to organisation to
access their capabilities and resources in order to gain potential outcomes in effective manner.
VRIN analysis denotes towards valuable, rate, imitable and non substitutable (Frederiksen,
Fredslund and Gottlieb, 2019, ). In context of Leon's here are the VRIN analysis to evaluate the
competitive edge that are as follows:
Valuable Rare Inimitable Non
substitutable
Economies of
scale
✓
Ability to serve
healthy meals
✓ ✓
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Technology ✓ ✓ ✓
Employees ✓ ✓ ✓ ✓
Valuable:
For an organisation it is very much potential to access own capabilities and strength to
remain always competitive in the marketplace that are valuable factors are as follows:
Economies of scale:
In context of Leon's restaurant they specialised in giving food and related products at
relatively low price as they use advance tools and techniques that saves cost and time in bulky
production (Kaur and et.al ., 2019.).
Healthy and hygiene food:
The another crucial factor which is that they always focus on the building the healthy
and hygiene food that are majorly demanded by consumers so it come under valuable attributes.
Tools and techniques:
the another major factors which come under the valuable resources that are tools and
techniques as they focus on producing products that are oil free and cholesterol less that are
highly demanded in today's business environment (Kasemsap, 2019).
Employees:
The another major factor which is human resource that are one of most valuable assets
of an organisation that directly contributes in enhancing the values of products and services.
Rare:
Healthy food: The another factor that bring them into quality of rare food delivers, by serving
food that are tasty and healthy also. In context of Leon's restaurant they are very much rare
within their competitors in order to gain potential outcomes.
Tools and techniques: They use rare kind of tools that saves cost and time and also required
some potential or rare skills set for gaining potential outcomes.
Employees: The work that work under them is rare and skilled in nature.
Inimitable:
Tools and techniques: Technological advancement and highly equipped machinery that used or
avail by the Leon's restaurant are customised in nature that not easily imitate by others.
Employees: In context of Leon's they provide training and development to their employees time
to time in order to give potential skills to them.
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Non substitutable:
Employees: In context of Leon's restaurant they have one of most potential kind of employees
that contributed in value addition in proper manner.
Evaluating the capabilities and competency with the organisational mega trends:
In an organisation the capabilities and trends are differ from the capabilities of the
industry in order to gain potential outcomes (Lin, 2019. ). The major trends that are emerge into
the marketplace that the usage of social media in order to reach at large no. of consumer base in
positive manner. The major trends which adopted by Leon's restaurant that they highly rely on
the social media and focus on the needs and wants of consumers such as consumers are now a
days conscious towards healthy food.
Critically evaluating operation of Leon’s Restaurant .
The Leon foundation:
The major vision and mission of respective organisation is to easy for every one to get
healthy food. They are currently operating in the field of serving best food by believing on their
expertise and network in broad manner.
Value chain analysis of Leon Restaurant:
first and foremost activity of the Leon's restaurant is to serve one of best and hygiene
food to the masses, in that series various operational activities consisted that are as follows:
Primary activities:
In primary activities of the respective restaurant includes the operations, marketing and
providing one of best services in order to remain competitive in marketplace. They accumulate
the raw material from the best suppliers such as fruits and vegetables, spices and other products
in order to convert in consumable products (Mwesiumo, Halpern and Buvik, 2019..). Further in
operational activities of respective restaurant includes the deliver one of the best products and
services by using one of best supply chain to market the products and services to the ultimate
consumer base. In their operational activities further includes the promotional activities such as
advertisements, sales promotion and many more that help to enlarge business opportunities in
positive manner.
Supporting activities:
supporting activities are very much beneficial for an organisation to deliver one of best
services upto ultimate consumer base. In context of Leon's they focus on coordinating and
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evaluating the infrastructure within the organisation as it is very much important for them to
attract and retain consumers for long duration. Employees or human resource is one of the most
important assets of an organisation that provide assistance to organisational activities to gain
productive results in positive manner. In context of Leon's Restaurant they by utilizing one of
best tools and techniques that are come under the supporting activities to develop or build
equipments as per the consumers choice and preferences.
Operational assistance:
The vision and mission statement of respective organisation is to deliver one of the best
food and related services to their consumer base (Pal, 2019.). To build one of best food it is very
much crucial to use various kinds of equipments that consume less oil and heat and not bring out
the nutritional values from the food. Further in technological up gradation department that assist
in that proved beneficial for the whole organisation. The other major activities that come under
the operational activities includes the marketing and sales services that helps to reach at large no.
of consumer base in positive manner.
Sustainability extension by operations:
Leon restaurant are highly sustainable in the marketplace that helps to develop on the
environmental ground to gain potential outcomes (Pearlson and Saunders, 2019.). They focus
on the usage of waste reduction with the help of renewable energy that are very much potential
for restaurant as well as for individual to gain eco friendly products which is crucial for
organisation in order to remain competitive in marketplace.
CONCLUSION
From the above report it has been concluded that every organisation which operates in
business environment encounter several kinds of issues or concerns that hinders their self interest
in giving one of their best efforts. The important role or mission of the respective assignment is
to analyse the factors which impact on organisational works and activities such as internal and
external factors and value analysis tools to gain potential outcomes in order to remain
competitive in marketplace. So for an organisation it is very crucial to analyse the value of
products and services that contributes one of best efforts.
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REFERENCES
Books and journals:
Albertini, E., 2019. The contribution of management control systems to environmental
capabilities. Journal of Business Ethics. 159(4). pp.1163-1180.
Bustinza, O.F. And et.al ., 2019. Product–service innovation and performance: the role of
collaborative partnerships and R&D intensity. R&D Management. 49(1). pp.33-45.
Clarke, A. and MacDonald, A., 2019. Outcomes to partners in multi-stakeholder cross-sector
partnerships: A resource-based view. Business & Society. 58(2). pp.298-332.
Copacino, W.C., 2019. Supply chain management: The basics and beyond. Routledge.'
Daneshvar Kakhki, M. and Gargeya, V.B., 2019. Information systems for supply chain
management: a systematic literature analysis. International Journal of Production
Research. 57(15-16), pp.5318-5339.
Frederiksen, N., Fredslund, L. and Gottlieb, S.C., 2019, May. The Hybridity of Strategic
Partnerships and Construction Supply Chain Management. In 10th Nordic Conference
on Construction Economics and Organization (pp. 77-83). Emerald Publishing Limited.
Kasemsap, K., 2019. Promoting strategic human resource management, organizational learning,
and knowledge management in modern organizations. In Advanced Methodologies and
Technologies in Business Operations and Management (pp. 879-891). IGI Global.
Kaur, S. and et.al ., 2019. Organizational ambidexterity through global strategic partnerships: A
cognitive computing perspective. Technological Forecasting and Social Change. 145.
pp.43-54.
Lin, H., 2019. Government–business partnerships for radical eco-innovation. Business & Society.
58(3). pp.533-573.
Mwesiumo, D., Halpern, N. and Buvik, A., 2019. Effect of detailed contracts and partner
irreplaceability on interfirm conflict in cross-border package tour operations: Inbound
tour operator’s perspective. Journal of Travel research. 58(2). pp.298-312.
Pal, K., 2019. Quality Assurance Issues for Big Data Applications in Supply Chain Management.
In Predictive Intelligence Using Big Data and the Internet of Things (pp. 51-76). IGI
Global.
Pearlson, K.E. and Saunders, C.S., 2019. Managing and using information systems: A strategic
approach. John Wiley & Sons.
Pratono, A.H. and Ratih, R.V.S., 2019. International Alliance Strategies: A Case Study of the
Indonesian Medical Device Industry. In Globalization and Development (pp. 381-400).
Springer, Cham.
Spoann, V. and et.al ., 2019. Assessment of Public–Private Partnership in Municipal Solid Waste
Management in Phnom Penh, Cambodia. Sustainability. 11(5). p.1228.
Yan, M.R. And et.al ., 2019. Towards a City-Based Cultural Ecosystem Service Innovation
Framework as Improved Public-Private-Partnership Model—A Case Study of
Kaohsiung Dome. Journal of Open Innovation: Technology, Market, and Complexity.
5(4). p.85.
Online:
FAST FOOD INDUSTRY PESTEL ANALYSIS, 2019. [Online]. Available through.
<https://notesmatic.com/2016/09/fast-food-industry-pestel-analysis/>.
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PEST Analysis Example for the Food Industry, 2019. [Online]. Available through.
<https://pestleanalysis.com/pest-analysis-example-for-the-food-industry/>.
Value Chain Analysis, 2019. [Online]. Available through.
<https://strategicmanagementinsight.com/tools/value-chain-analysis.html>.
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APPENDIX
PEST Analysis
Factors Citations
Political factors: Political factors consist of the rules and regulation,
entry and exit barriers and trends affect on business works and
activities. In the marketplace of UK the fast food restaurants are
adding in their menus the healthier options as health policies
pushed them towards it. In context of Leon's restaurant they reveals
all information such as calorie and nutritional information on their
personal website by targeting low to medium income families. In
UK no. of regulations imposed by government to adopt healthy
measures to safeguard the health of consumers in proper manner.
FAST FOOD INDUSTRY
PESTEL ANALYSIS, 2019
Economic factor: In economic factors consist of the interest rates,
tax regimes and buying or purchasing capacity of consumers and
many more. The positive shift in regards of fast food industry that
it raise the sales in the marketplace as buying capabilities of the
consumers rises with unemployment rates also affect to the food
industry. As healthier options before the organisation
comparatively higher compared to fast food or easy to make meals.
Not only that factors but convenience of ready made food and
various options in front of labours that directly influence the higher
the cost of it. With the changes occurs in the industry impact on the
works and activities to cope up with trends in marketplace.
FAST FOOD INDUSTRY
PESTEL ANALYSIS, 2019
Social factors: In social factors consist of the factors such as change
in taste and preferences of consumers. As in today's world people
become health conscious and they always demand healthy food and
drinks, in context of Leon's restaurant they focus on satisfying the
consumers needs and demands in proper manner. In today's world
people demands the organic food that is very much potential in
PEST Analysis Example
for the Food Industry,
2019
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such kind of life style to remain always healthy and positive. By
using the eco friendly products and services that are not only
beneficial for individual but society also. So Leon's restaurant they
occupy all kind of health measures to gain potential outcomes.
Technological factors: Advance tools and techniques are very much
potential for an organisation, in regards of food industry various
kinds of applications should be availed to better serve consumers to
bring continuous improvement in their performance. Respective
kind of technological advancement bring speed and accuracy but on
other hand takes too much cost also. In context of Leon's restaurant
they by conducting research and development on regular basis in
order to bring potential kind of changes in their working ways or
methods. In addition to advancement in automation and billing
while ordering products and services in that regards employees
required training and development on continuous basis in order to
remain always competitive.
PEST Analysis Example
for the Food Industry,
2019
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Porter's five Forces Citations
Bargaining power of supplier (Low): In food industry there are
requirement of large quantity of the raw material on day to day
basis. Respective factor of food industry attracts the large no. of
suppliers to deal in respective field as it look beneficial. Respective
feature shows that bargaining power of suppliers is relatively low
as they possess the power to negotiate the demand and supply side
of their potential clients.
Associated British Foods
Plc Porter Five Forces
Analysis, 2019.
Bargaining power of buyer (High): Buyer is one of the most
important stakeholder for a business as due to the change in taste
and preferences of consumers marketers have to remain always
updated to as various suppliers of food existed in the marketplace.
Consumers demands lot of aspects such as low cost, effective
quality and quantity such as that shows that buyers have high
bargaining power.
Associated British Foods
Plc Porter Five Forces
Analysis, 2019.
Rivalry among industry: In the business environment there are
large no. of food operators dealing that create lot of competition in
marketplace. To remain always competitive bring changes in tools
and techniques, way of working and many more to enchant the
large no. of consumers. In context of Leon's restaurant they focus
on healthier food segment that are major area of demand of
consumers to remain always competitive in the marketplace.
Associated British Foods
Plc Porter Five Forces
Analysis, 2019.
Threat of new entrants (Moderate): The one of most crucial factor
that are moderating in nature as new entrants sometimes get
successful to enchant consumers by bringing innovation in the food
industry and give competition to older dealers. Respective
activities directly link with the range and quantity with innovation
bring into the marketplace. As small dealers not too much affect to
the business proceedings. In context of Leon's restaurant they
enlarge at moderate level and by using healthier food try to attract
Associated British Foods
Plc Porter Five Forces
Analysis, 2019.
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large no. of consumers to gain potential revenue.
Threat of substitutes (High): In the food industry the major focus
of dealers is to attract the large no. of consumer base. As
consumers have the large no. of options or substitutes. It majorly
rely on the innovative theme and products pick out by the
organisations. In context of Leon's restaurant they deals with large
product portfolio and majorly deals in healthier foods that helps to
lessen down the effects of substitution as people demands always
healthy food due to the awareness.
Associated British Foods
Plc Porter Five Forces
Analysis, 2019.
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