Resourcing Opportunities and Challenges for Leon's Global Expansion

This report discusses the resourcing opportunities and challenges faced by Leon Restaurant in their global expansion plans. It provides an overview of the case study and critically analyzes the opportunities and challenges. The report also offers recommendations to address these key resourcing opportunities and challenges.

Report
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Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY ..................................................................................................................................3
Overview of case study...............................................................................................................3
Critically analyse the resourcing opportunities and challenges facing Leon in view of their
global expansion plans................................................................................................................4
How would you recommend that Leon address their key resourcing opportunities and
challenges? Justify recommendations.........................................................................................8
CONCLUSION..............................................................................................................................10
REFRENCES.................................................................................................................................11
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INTRODUCTION
Globalization is defined as procedure of interacting as well as integrating with
government, firms and people at the worldwide level. In respect of business, globalisation is
considered as expanding business from one country to another multiple countries. By adopting
globalisation company able to gain various benefits such as increase market shares, profitability,
customer's base and so on (Gygli and et. al., 2018). While adopting globalisation or expanding
business face issues related to resource and talent management. Organisation selected for this
report is Leon Restaurant which a private company operating in restaurant industry. It is founded
by Allegra McEvedy, Henry Dimbleby and John Vincent in year 2004. Its head office is located
at London, United Kingdom. This report is considering topics like opportunities and challenges
of resourcing faced by respective restaurant while expanding business. Moreover it will also
include recommendations which help restaurant in resourcing opportunities and challenges
properly.
MAIN BODY
Overview of case study
Leon Restaurant is private fast food restaurant which is founded in 2004, they are
severing at numbers of locations such as United Kingdom, Norway, Spain, Ireland, United State
and Netherlands. The main purpose of opening Leon restaurant is that, owners want to show or
prove that fast food be both tastes good as well as does customer's goods. The key person of
respective restaurant in today's time is John Vincent who is Chief Executive officer. The vision
of Leon Restaurant is to make easy for every person to eat good as well as healthy food (THE
LEON VISION, 2020). They are currently doing this by serving fast food as well as they also
established a Leon Foundation which is a non profit firm and that's aim is to easier for every
individual of society to eat good and healthy food. Leon Restaurant is focusing on resource and
talent management issues which they generally face while expanding their business at different
location of United Kingdom.
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Critically analyse the resourcing opportunities and challenges facing Leon in view of their global
expansion plans.
Global expansion plans is considered as strategy or action plan which is developed by a
company in order to expand their business into multiple nations throughout world (Hirst and
Thompson, 2019). By this firm able to gain numbers of benefits such as enhancement of
customer's base, profitability ratio, market shares and goodwill. In respect of Leon Restaurant
they are facing issues related to resourcing and talent planning while they expand their business
at the global level. Below some opportunities as well as challenges related which occur during
implementing global expansion plans are given:-
Opportunities of global expansion plan Enhance business growth: It is one of the main opportunity which a gain by a company
when they expand their business at the international market. This is so because when an
organisation adopt global expansion plan they able to identify new opportunities which
help them in increasing or boosting their business (The Advantages and Disadvantages of
International Expansion, 2019). In respect of Leon Restaurant, by adopting or
implementing global expansion plan they able to increase growth of their business which
increase their business profitability. Along with this, it will also increase business
footprint by attract more and more new audiences towards restaurant foods, drinks and
services. It will also provide opportunity of further expansions at different location. Entry to new emerging market: It is one of the main opportunity which is gain by a
company when they expand their business in international marketplace. According to this
opportunities a company able to conduct their business in developed as well as
developing countries which aid them in gaining high profitability and market shares
(Rupert and Smith, 2016). In respect of Leon Restaurant when they expand their business
in new marketplace they able to enter into emerging or growing market which increase
opportunities related to enhance market shares, profitability ratio and goodwill. Stay ahead of competition: By adopting global expansion plan an organisation able to
get opportunities related to gain competitive advancement in effective as well as
successful manner (Michie, 2019). This will also help them in attracting more and more
investors or stakeholders as compare to their competitors. In respect of Leon Restaurant,
by adopting strategy related to business expansion they able to grow business which help
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in attracting more and more customers. That directly impact on decreasing business of
competitive restaurant or hotel by which respective restaurant able to gain competitive
advancement at the multinational level. Increase brand recognition: By implementation of brand expansion strategies or action
plan an organisation able to enhance their brand recognition at the marketplace which
help them in gaining high competitive advancement and profitability ratio (5 benefits of
international expansion, 2020). In respect of Leon Restaurant by implementing business
expansion plan or strategy they able to increase their brand recognition at the marketplace
through that they able to attract more customer's at restaurant. Along with this, it will also
help respective company to increase brand recognition of their restaurant at the potential
marketplace in successful manner. Foreign investment opportunities: Foreign investment is a biggest opportunity for Leon
Restaurant because it help them to retain their control over the business operations and
many other aspects. Foreign investment involves an organisation entering at international
market by making a substantial or sufficient investment in the nation (Gooch and et. al.,
2018). This strategy would help Leon Restaurant by providing advantages of cheaper
material, low-cost labour etc. Along with this, there are several opportunities that would
be gain by company at international level by using foreign investment. It includes,
cheaper material, leverage low-cost labour etc. to decrease manufacturing cost towards
getting a competitive benefit over challengers. Greater access to talent: This is consider another benefit or opportunity for Leon
Restaurant is to take their business internationally and get access to a new pool of
potential workers with unique mindsets and skills. This will help restaurant to improve
their brand image and retain top talent for longer time period. As international level,
talented employees support an enterprise by attracting large number of international
client and also increasing sales of the business (Duncan and et. al., 2019).
 Learning a new culture: Getting information regarding a new place can support Leon
Restaurant to make their business more well-rounded. Along with this, having a proper
knowledge of person who are not form their nation will provide them an innovative
perspective on strong relations with clients, and may even support them to work
effectively with business partners and domestic customers. Thus, it is a best opportunity
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for restaurant to expand their business globally and achieve long term goals and
objectives (Sitati and et. al., 2019).
Challenges related to global expansion plan Physical Distance: Expansion of business at the international market is related with the
challenges of distance, even if there is all sources such as internet as well as telephone for
communicating overseas. But it will increase the expenses of company, related to
travelling, usage of internet for interaction and many more (8 Challenges for Companies
Going Global?, 2020). In respect of Leon Restaurant by adopting expansion plan they
may face issues in interacting with all staff which lead to miscommunication. Along with
this, it will also impact on the productivity and motivational level of staffs. Fees of Tariffs and Export: If a company expand their business in international market
then they need export and import material which incurred some fee, that directly enhance
the expenses of firm (Potrafke, 2015). In respect of Leon Restaurant, by adopting
expansion plan or strategies they need to conduct exportation due to which they need to
pay fees related to Tariffs as well as Exportation. Unfamiliar Culture: It is a biggest challenge that have negative impact over entire
performance and success of an organisation. If an organisation not familiar with the
culture of a country, they can not interact with the international client. As it turn to
impact on brand image and goodwill of Leon Restaurant. In order to overcome thus
challenge is essential for restaurant to expand their business globally so that business can
easily assimilate with the large number of person who will become their clients (Cox,
2018). Organisation Communication: This is another challenge that will be going to faced by
Leon Restaurant while they expand their business at international level. In order to handle
globalisation efforts, main role of team member is to communicate, report and track their
own efforts. As it have direct impact on success and growth of company at global level.
In case of Leon Restaurant, if they not communicate appropriate information about their
business expansions to the employees, it has negative impact on business growth and
success at marketplace (Oggioni, Chelleri and Forino, 2019). Tax codes and compliance issues: It is another challenge that could face by Leon
Restaurant while expanding their business at international level. In order to understand
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laws and regulations of the country is not easy for company that turn to impact over
business performance and growth of restaurant negatively. For example: dealing within
an type of tax can be a issue event when an organisation operating an individual country.
Dealing with tariffs, fees and taxes for global trade can be a main obstacle of issue for a
Leon Restaurant. For this, restaurant require to be aware about the trading of regulations
and standards of particular nation. Selection of right countries: This is an another and biggest challenge that will be going
to face by Leon Restaurant while expanding their business globally. In order to select
right nation is biggest challenge because each and every country have their own benefits
and drawbacks.
 Operational risks with hiring staff: This is another sort of challenge or risk that will be
faced by restaurant while expanding their business at international level. For this, Leon
Restaurant require maximum number of employees who manage the increased pressure
on their business of working in specific country (Adeniji and et. al., 2019). Restaurant
may even require to recruit talented and knowledgeable employees on the ground in the
another nation. However, recruiting maximum staff member is always a biggest risk. At
this process take more time and cost of an organisation that turn to impact over overall
success and growth in negative manner.
Therefore, these are biggest resourcing opportunities and challenges that are facing by
Leon in view of their global expansion plans. In this opportunities will support an organisation in
development of its growth at international level. It will also support an enterprise to achieve
competitive advantages and expand their business successful. Apart from this, above mentioned
all these are consider biggest challenge that are facing by restaurant at international level. These
challenges have negative or unfavourable impact on brand image and goodwill for the
Restaurant.
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How would you recommend that Leon address their key resourcing opportunities and
challenges? Justify recommendations.
From the above mentioned information, it has been recommended that global expansion
is essential for the success and growth of an organisation. Despite of these, there are various
challenges faced by Leon Restaurant while enlarging their business. These are physical distance,
fees of tariffs and export, unfamiliar culture, organisation communication, tax codes and
compliance issues, selection of right countries and operational risks with hiring staff. These are
biggest issues that were faced by restaurant. In order to address these challenges, there is need of
some recommendations to the Leon Restaurant (Kamau, 2018). These are determined as below:
Proper market study: Leon Restaurant must conduct proper market research about the
country. For this company should use primary and secondary source of research. As these
sources will help them by providing appropriate information regarding the drawbacks and
benefits of country. Thus, restaurant will become more able to select best nation and develop
their business successfully. As this will support restaurant by providing large number of
opportunities to expand their business and also grow speedily.
Adoption of communication channels: This is another recommendation to the restaurant
to use different number of communication channels. There are number of communication
channels such as face-to-face, mobile communication, electronic communication etc. These are
best channels of communication that must be used by Leon Restaurant for communicating each
information regarding the business expansions to employees. These methods will also support an
enterprise to promote their products or services in marketplace and attract large number of
customers easily. Therefore, adoption of best communication channels will be more beneficial
for the success and growth of company (Bandara and et. al., 2018).
Development of training program: Leon Restaurant must provide training to their
employees who have lack of knowledge about business process, culture, services etc. As training
will support employees by increasing their understanding regarding the business. Knowledgeable
and talented workers support restaurant by dealing with any kind of situation at global level.
Trained employees will also played important role in promoting services and products of Leon
Restaurant and also maximising customer base. As it turn to support an enterprise by improving
their brand image and also increasing sales.
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Adapt to the environment and set up a go-to market strategy: Company will require to
evolve to face realities of new marketplace. Perhaps Leon Restaurant will require to overhaul
practices in order to encounter compliance laws and regulations. They will also analyse a new
nice marketplace for one of their products or services. Effective and friendly working
environment support restaurant by overcoming issue of Unfamiliar Culture (Smith, 2018).
Adoption of go-to market strategy will be beneficial for company to attract maximum number of
customers.
In order to address key resourcing opportunities, there are some recommendations to the
Leon Restaurant which will be explained as below:
Foreign direct investment: In order to enter into emerging market, Leon Restaurant
should adopt FDI. It is an useful entry mode strategies that helps restaurant to expand their
business successfully at international level. This strategy influences the investment patterns of an
economy and supports to maximise overall development. As this will be beneficial and easy
entry mode for restaurant to use and enlarge their business successfully.
Ways to increase brand recognition: There are several ways suggested to the Leon
Restaurant about how to increase their brand awareness among international clients
(Hemmington, Kim and Wang, 2018). These are, do their SEO research, double-down on social,
take advantage of Google's AdSense auto ads etc. These are consider main ways that would be
beneficial for business to increase their brand awareness among customers. Brand recognition is
important for an enterprise for its better growth and success.
Adoption of best pricing strategy: It is a recommendation to the Leon Restaurant to adopt
best pricing strategy as it will help them to compete their competitors and gain competitive
benefits easily. This will be beneficial for the success and growth of restaurant at international
marketplace. This strategy will also help an enterprise in maximization of customer base and
accomplish of better outcomes easily.
Hiring of suitable candidates for right position: Leon Restaurant must hire
knowledgeable and talented workers who have appropriate understanding about the international
expansion. As this way help an enterprise to retain best talent for long time and accomplish long
term goals and objectives within a given time duration. Therefore hiring of best person will also
support an organisation in attraction of large number of customers and retention of talented
employees for longer time period (El-Sawalhy, 2018).
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CONCLUSION
From the above mentioned information, it has been concluded that business expansion at
global level helped an organisation by increasing number of customers, increasing brand
awareness etc. There are number of resourcing opportunities and challenges that were faced by
company while expanding their business internationally. Enhance business growth, entry to new
emerging market, stay ahead of competition, increase brand recognition, foreign investment
opportunities, greater access to talent and learning a new culture. These are main opportunities
that support an enterprise in expansion of business internationally. Apart from this, there are also
number of resourcing challenges that were faced by business while they enlarge their business at
global level. These challenges are mainly related with physical distance, organisation
communication, fees of tariffs and export, operational risks with hiring staff tax codes and
compliance issues, unfamiliar culture, selection of right countries etc. These are main issues that
impact on company at global level. These will also impact over growth and success of an
enterprise in negative manner. Apart from this, number of ways also used by business for dealing
with resourcing opportunities and challenges such as foreign direct investment, ways to increase
brand recognition, adoption of best pricing strategy and hiring of suitable candidates for right
position. These will support business to successfully expand their business and accomplish better
outcomes easily.
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