Managing Strategy, Operations, and Partnerships in Leon's Restaurant

This report evaluates the environment, strategy, and operations of Leon's Restaurant, a private organization serving healthy and quality food. It includes a PEST analysis, evaluation of resources and capabilities, and assessment of the operation's support for the vision. The report also discusses industry success factors and the sustainability of business operations.

MANAGING
STRATEGY,OPERATIOS
AND PARTNERSHIPS

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Critical evaluation of the environment of the industry in which the Leon’s Restaurant operates...1
PEST Analysis............................................................................................................................1
Mega Trends................................................................................................................................2
Porter's Five Force Analysis........................................................................................................2
Industry Environment..................................................................................................................3
Critical evaluation of the strategy of Leon’s Restaurant.................................................................3
Resources of the organisation.....................................................................................................3
Capabilities of the organisation...................................................................................................3
Evaluation of resources and capabilities (VIRN)........................................................................4
Compare sustainable resources and capabilities with the industry success factors as per Mega-
trends...........................................................................................................................................4
Critical evaluation of the operation of Leon’s Restaurant ..............................................................5
Operation of Leon Restaurant.....................................................................................................5
Vision of Leon Restaurant..........................................................................................................5
Critically assess the extent to which the operation supports
the delivery of the vision.............................................................................................................5
Evaluation for sustainability of business operations...................................................................6
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7
APPENDIX......................................................................................................................................8

INTRODUCTION
Business organisations are evolving in the complex environment and management
strategy, operations and partnership in business needs to be managed effectively in order to
achieve business operations. To understand the concept of management strategy and operations
Leon Restaurant is considered in this project report. It is a private organisation founded in the
year 2004 by John Vincent, Henry Dimbleby and Allegra McEvedy. The organisation is serving
food which is organically prepared for consumers who prefer healthy and quality food (Adner,
2017). Headquarter of the organisation is situated in London, United Kingdom and business is
expanded at international level. The project report consist of evaluation of industry environment,
strategy and operation of the business against vision and industry success factors. Emerging
issues and their impact in the industry with potential vulnerability faced by Leon restaurant.
MAIN BODY
Critical evaluation of the environment of the industry in which the Leon’s
Restaurant operates
PEST Analysis
Evaluation of the business environment and impact of the various external factors that
affects business operations in Restaurant industry needs to be analysed though PEST analysis. In
relation of Leon's Restaurant is defined as follows-
Political: Health policies that are introduced in political context are adding healthier food
options on the menu of various restaurants. Health menu choice act now making it compulsory
for operators of fast food industry to post number of calories for food and drinks. This political
change will have a impact on sales of Leon's Restaurant (Al-Tabbaa, Leach and Khan, 2019).
Economic: State of the economy in which business is operated affects business of
restaurants like Leon serving healthy foods. As healthy food is served with higher price and
negative economic condition will influence the organisation.
Social: Trends in the food industry keeps on changing as per taste and preference of the
targeted consumer group. As Leon's re is serving food which is health and social environment in
UK, USA, Spain and other countries when demands healthy food. Then a positive impact will be
created on the business.
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Technological: Introduction of technology helps in preparing food which is much
heather and matches with set food levels. Leon's technological system helps the organisation in
serving well and earn competitive advantage.
Mega Trends
In the recent times mega trends that are emerging and having a grate influence on the
restaurant trade of Leon's restaurants is defined as follows-
Food as medicine: A clear and fair relationship exists health, ageing and diet (Ayers and
Odegaard, 2017). A mega trend which is recorded in the century is that food which is tasty and
secures good health at the same time is preferred over others. As government of different nations
are showing their concern to serve food which minimises changes of diseases like obesity and
diabetes.
Meet reduction if more: As consumers all over the nation have desire to live healthier
and in order to become more sustainable lives meet reduction is supported. As per the statical
data available consumers in the industry are transforming towards vegan diets as in the year 2014
only 0.8% of the population in Britain were Vegan but now the rate has reached to 3%.
Porter's Five Force Analysis
Restaurant industry is highly competitive and in order to analysis level of competition in
the industry Porter's Five Force Analysis is conducted. Through this power available with
business and its competitive organisation is available (Brekalo and Albers, 2016). In relation of
Leon's Restaurant it is defined as follows-
Threat of new arrival: Leon's restaurant is operating in one of the competitive industry
as per recent research. Number of new arrivals in the industry is high and some of them are
available with innovative ideas and tenured out to be a competition for the business.
Bargaining power of buyers: Goods offered by the Leon's restaurant is rich in minerals
and nutrients. As still there is effective bargaining power of buyers exists as there are number of
demands and they are hard to please.
Bargaining power of suppliers: Their are number of suppliers available to the restaurant
in order to serve restaurant with all the required services and goods. Suppliers of Leon's
restaurant possess good bargaining power as this shift can leads to generation of negative effect
on business operations.
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Threat of substitute products: Leon's restaurant is serving goods which are healthy and
move an individual towards heather and safe life style. Availability of substitute goods are less in
the industry and this termed to an an strength of the business (Burke and Demirag, 2019).
Competitive rivalry: In the recent times there are number of competitive business
organisations has emerged. Leon's restaurant is old and possess good market image so this turned
out as a advantage for the business organisation.
Industry Environment
 In order to become successful in restaurant industry goods and services must be served as
per recent trends and they must match with taste and preference of target consumer
group.
 The future of restaurant industry will change and individuals will start taking their food
as a medicine i.e. food which is heather will be preferred over others.
 Reduction in the consumption of meet will be their in food because it minimise chances
of some diseases that exists in animals.
Critical evaluation of the strategy of Leon’s Restaurant
Resources of the organisation
Resources in a organisation can be available in terms of finances and non-finances.
Evaluation of all the available resources made for the Leon's restaurant helps in accessing
effectiveness of the resources (Clarke and MacDonald, 2019). As the organisation is making
growth in sales for more then 10 percent which indicates that all the resources are employed in
most efficient manner. Finances are arranged in more settled manner and human resource
employed is suitable as per their job description. As Leon's restaurant is based on healthy and
quality food concept then availability of raw material must be made which is organic and ensure
good taste. When all these resources employed in the business to generate positive results based
on planning then competitive advantages is maintained by the businesses.
Capabilities of the organisation
Capabilities of the organisation will be accessed on the basis that goods provided by
Leon's restaurant can be substituted with other products or not. As the organisation was
established in the year 2004 and make all possible efforts to adopt changing environment and
compete effectively. Expansion of business at international level make it one of the well
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recognised organisation serving one of the best quality food products which are healthy and tasty
at the same time. It become one of the well known brand at global level and its value chain make
it more capable for serving large number of consumers (Keers and van Fenema, 2018).
Evaluation of resources and capabilities (VIRN)
It stands for Valuable, Identifiable, Rare and Non-substitutable. Jay Barney an American
professor in the year 1991 provided complete framework. Explanation of VRIN model for Leon's
restaurant is mentioned as follows-
Leon restaurant organizational resources & capabilities V R I N
Uniqueness of food products based on their personal recipes ✔
Effective and efficient human resources ✔ ✔
Efficient food production system based for cost efficiency and
low price
✔ ✔
New technological improvement for efficient order placing ✔
Leon's restaurant sustained competitive advantages/core
competencies:
V R I N
Globally recognised as a brand name ✔ ✔ ✔ ✔
Portfolio that attracts consumers ✔ ✔ ✔ ✔
All the details that are identified as per this model helps to ensure that strategic
management and planning based on such information will generate positive results for business.
All the resources and qualities available with Leon's restaurant generate a capability which
supports long term success to the business (Sadovnikova and Pujari, 2017). All the resources
helps in creating and maintaining good brand image of the business at national and international
market and ensures that restaurant is operating with highest efficiency and generating more and
more amount of targeted profits.
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Compare sustainable resources and capabilities with the industry success factors as per Mega-
trends
Mega-trends in the food industry is recorded for considering food as a medicine. Serving
quality food which is rich in all the vitamin and minerals is a long term step to generate
sustainability in business operations. Leon's restaurant is offering goods and services which is
comparable with the changing requirement of the consumers in the industry. Goods served by the
organisation helps in providing a separate brand image form its competitors. Business
organisations when adopt mega-tends then sustainability is achieved to run business in most
profitable manner (Stafford and Taylor, 2016).
Critical evaluation of the operation of Leon’s Restaurant
Operation of Leon Restaurant
Business when operated as a restaurant then number of services to effectively complete
activities are performed. These operations are conducted so that level of satisfaction that
consumers are gaining form these services can be improved. In this relation some specific
services that Leon's Restaurant is providing is as follows-
 Serving variety of food: As Leon organisation operates in restaurant industry and
prepares health food then services for providing variety of food products are operated on
daily basis. Variety of food as per taste and preference of consumers helps in generating
competitive advantage to the business.
 Delivery services: The organisation is providing facility to consumers to make delivery
of food product at their door step (Walters and Helman, 2020). This facility attracts
more and more consumers and make business more competitive then others in the
industry.
Vision of Leon Restaurant
Foundation of Leon's restaurant was made with one of the vision which says that all the
initiative will be taken to make it easy for everyone to eat good food. In order to achieve this
vision fast food services are provided by the organisation. Food served by the restaurant is made
with organic raw material which is rich in minerals and ensures good quality with health to
consumers. To accomplish this vision expansion of business is made at national and international
level so that each individual have access to healthy food.
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Critically assess the extent to which the operation supports
the delivery of the vision
Operations of the business organisation performed by Leon's restaurant supports to
accomplish the vision as it facilitates through serving good quality of food. Level of competition
and various emerging trends in the business operations are analysed so that serving various
quality services are enjoyed for generating brand image. Operations are performed in order to
ensure that business activities will contribute towards achieving objective of providing easy
accesses to healthy and quality food.
Evaluation for sustainability of business operations
Leon's restaurant operations are sustainable as goods and services provided by the
organisation is based on the recent trends which is recorded in the restaurant industry. Emerging
taste and preference of consumers are considered so that all the requirements recorded to
compete in the business environment is met effectively (Wassmer, Pain and Paquin, 2017). It is
determined that entire services and activities of Leon’s are appropriate and suitable for the
visitors as these are designed and developed with superior quality and provides maximum
satisfaction. It is also evaluated that almost every function of restaurant is valid and suited to the
market standards which help in constant increase for the Leon's in the future time period. It is
obvious that when a respective restaurant provide the best quality services and most suitable
consumer good which support in fulfilling the need then overall popularity and profitability and
most importantly desired sustainability can also be attained.
CONCLUSION
In the end of the report, it is concluded that there is a necessary need for knowing the
external market situation that can be supportive for a company in running business in specified
pathway that can contribute to overall growth and development. As hotel sector is wide thus
there more involvement of government in the context of quality food, make use of standardise
raw material to prepare food, etc. in conclusion, it is also stated that Porter five force analysis
help to define that there is higher risk because of tough competition and bargaining power of
customer. Thus Leon’s Restaurant, must consider both factors which help in gaining the
competitive advantage and reach the desired outcome. By using VRIN model, capabilities and
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resources of a company be assessed which help manager to make better policies and strategies to
maximise the income level.
7

REFERENCES
Books and Journals
Adner, R., 2017. Ecosystem as structure: An actionable construct for strategy. Journal of
management. 43(1). pp.39-58.
Al-Tabbaa, O., Leach, D. and Khan, Z., 2019. Examining alliance management capabilities in
cross-sector collaborative partnerships. Journal of Business Research. 101. pp.268-284.
Ayers, J. B. and Odegaard, M. A., 2017. Retail supply chain management. CRC Press.
Brekalo, L. and Albers, S., 2016. Effective logistics alliance design and
management. International Journal of Physical Distribution & Logistics Management.
Burke, R. and Demirag, I., 2019. Risk management by SPV partners in toll road public private
partnerships. Public Management Review. 21(5). pp.711-731.
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.
Keers, B. B. and van Fenema, P. C., 2018. Managing risks in public-private partnership
formation projects. International journal of project management. 36(6). pp.861-875.
Sadovnikova, A. and Pujari, A., 2017. The effect of green partnerships on firm value. Journal of
the Academy of Marketing Science. 45(2). pp.251-267.
Stafford, S. and Taylor, J., 2016. Transnational education as an internationalisation strategy:
meeting the institutional management challenges. Journal of higher education policy
and management. 38(6). pp.625-636.
Walters, D. and Helman, D., 2020. Partnerships: Managing Intra-and Interorganizational
Relationships–The Global Value Chain Network. In Strategic Capability Response
Analysis (pp. 195-219). Springer, Cham.
Wassmer, U., Pain, G. and Paquin, R. L., 2017. Taking environmental partnerships
seriously. Business Horizons. 60(1). pp.135-142.
Online
Nation's Diet. 2018. [Online]. Available through:
<https://www.gov.uk/government/news/phe-publishes-latest-data-on-nations-diet>
Transformation of Restaurant Industry with Technology. 2019. [Online]. Available through:
<https://www.uktech.news/news/how-tech-has-helped-transform-the-restaurant-
industry-20190214>
PESTLE Analysis of the Food Industry. 2019. [Online]. Available through:
<https://pestleanalysis.com/pestle-analysis-of-the-food-industry/>.
Porter's Five Forces of Restaurant Industry. 2019. [Online]. Available through:
<https://www.porteranalysis.com/porters-five-forces-of-restaurant-industry/>.
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APPENDIX
Notes or findings Citation
PEST analysis of Leon's restaurant to access
industries environment for business operations.
Political: Government of UK and other nations
are concerned with introducing some healthy
food habits to society as a whole. In this
relation government has introduced several
food standards so that health can be maintained
and set as a priority. Political climate affects
employees in the industry as providing
minimum wages become compulsory as per
government regulations. Required nutrition
become one of the political concern and
policies which leads to introduction of healthy
food is introduced to the nation as a whole.
(PESTLE Analysis of the Food Industry,
2019. )
Economic: Number of economic factors have
a positive and negative influence over
restaurant businesses. Economic factors like
pay scale, living standards and rate of
unemployment influence societies step towards
adaptation of heather life style. All these issues
can be resolved in the industry by a step which
ensures minimum wages to all. This will make
access of each individual towards healthy life.
(PESTLE Analysis of the Food Industry,
2019. )
Social: Awareness that society possess towards
healthy life is increasing at the global level and
contribution of various influencing
personalities is high in this relation. Society as
a whole is shifting towards consumption of
(Nation's Diet, 2018)
9

food which keeps health as primary concern
rather then taste. This social trends influence
various restaurants to serve food to large
number of consugarima.goyalmer group who
prefers quality and healthy food which is rich
in taste as well. The data available for whole
nation specifies that food habits of
garima.goyalindividual for consuming
unhealthy products is decreasing in each age.
Technological: Technology in the industry has
turned out to be the biggest change and made
delivery of services easy and quick. Installation
of computers to take orders and prepare bills
generate good amount of accuracy and reliance
of consumers on restaurants increases. New
machines are used for preparing various goods
that are offered so that level of minerals and
fibres can be maintained in the food without
any form of contamination. Technological
improvement in the industry needs to be
adopted by restaurants so that external thread at
national and international level for technology
can be minimised. For example- online
booking and rating a restaurant services and
food make this sector advanced.
(Transformation of Restaurant Industry with
Technology, 2019)
Porter's analysis is made by Leon's restaurant
is to analyse level of competition available in
the industry. Their are five different factors
that are available in this analysis and each
factors clarifies how all the organisations
(Porter's Five Forces of Restaurant Industry,
2019)
10

serving in the same industry is affecting the
business. Factors of Porter analysis is defined
as follows-
Threat of new arrival: In the recent trends of
restaurant industry it is recorded that number of
new entry in the sector is quite high. As
restaurant industry is quite wide and have a
huge scope of serving large number of
consumers belongs to different age group and
having separate taste and preference.
Government policies and regulations
applicable on the food and safety industry
made it little difficult to entry in this sector and
instead of this ratio of new arrivals is high.
(Porter's Five Forces of Restaurant Industry,
2019)
Bargaining power of buyers: Buyers possess
more power of bargaining when number of
suppliers are high in the industry. Restaurant
industry is one of the finest example where
massive bargaining power lies in the hands of
the consumers. This can be seen as Leon's
restaurant stop using certain type of meet
because it was expansive to use such material
and charging high price was shifting
consumers towards other businesses. High
pricing will limit consumers and market share
of business will decline. Availability of number
of options made it simple to change preference
of consumers.
(Porter's Five Forces of Restaurant Industry,
2019)
Bargaining power of suppliers: Raw material (Porter's Five Forces of Restaurant Industry,
11

requirements in the restaurant industry are met
with number of suppliers. Instead of
availability of number of suppliers bargaining
power is high because availability of quality
raw material to Leon's restaurant is maintained
by limited number of suppliers. Situation of
high bargaining power of suppliers are
modified by the restaurant by providing bulk
orders so that cost of ordering is maintained
and quantity discount can be enjoyed.
2019)
Threat of substitute products: Food choices
of consumers in the industry are shifting
towards organic and healthy food. Leon's
restaurant is serving food which is healthy and
possess good quality. Despite of serving
consumers with good food it is quite easy and
frequent to make shift in food products.
Consumers always seek for new experience
and availability of various substitute goods
serves as a threat for Leon's restaurant.
(Porter's Five Forces of Restaurant Industry,
2019)
Competitive rivalry: Restaurant available in
UK and other nations are operating form
decades and their existence and service quality
make it difficult to have a effective competition
with them. Cost for establishing this business is
high whether it is fixed and operating and some
huge business ventures generate some good
amount of competition for the business.
Competition rivalry is one of the strong term
which needs to be considered by business
(Porter's Five Forces of Restaurant Industry,
2019)
12

organisations.
13