Managing Strategy, Operation and Partnerships

This report analyzes the impact of the external environment on the food industry, with a focus on Leon's restaurant. It discusses the strategies and operations of the restaurant and explores emerging trends in the industry.

MANAGING STRATEGY,
OPERATION AND
PARTNERSHIPS

Executive summary-
The current report is based on Leon restaurant, it has been justifies impact of
external environment on food industry and companies work under this sector.
Furthermore, it also explains the operation of company and strategies which they used
to sustain for longer in market.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Environmental analysis of food and beverage industry in which Leon's restaurant operates.....4
Strategy evaluation of firm........................................................................................................10
Operation of Leon's restaurant...................................................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
Appendix-......................................................................................................................................16

INTRODUCTION
Leon is large chain of fast food restaurant in UK, opened their first outlets in
Carnaby street. They operate 57+ restaurants in the world effectively with strong team,
company operates their business in Dublin, Oslo and other place in order to spread their
business all over the world. They chose the most populated area into new market to
expand business, Leon mostly established their restaurant nearby railways stations and
airports. They published several cookbooks, tableware line with John Lewis and
developed cookware, all these are the additional activities of business. Along with this,
the purpose of this report is understood the impact on different factors on Leon
restaurant and its operations within food industry. The present report is based on Leon
restaurant, it explains the environment of food sector in which company operates by
applying different types of tools and methods. Furthermore, it justifies strategy of
business, abilities and resources and also define the operations of organization along
with vision statement.
MAIN BODY
Environmental analysis of food and beverage industry in which Leon's restaurant
operates
PESTLE analysis-
This framework is used to analyse the different types of factors and its impact on
specific industry growth within marketplace for short term or long term period. It helps to
monitor the external environment and how it influences upon businesses.
Political factor-
Foreign trade policy, labour law, political stability and instability, and trade
restrictions include in political factors, these elements is all about to what and how
degree government influence in certain sector or economy (Baum and Fisher, 2014).
Public health policies is one of the political factors that affects on food industry in
which Leon's restaurant operate their business for longer and able to increase profit
margin. This element force sector for preparing food with lower sugar and sodium
intakes because it is not good for the health of people. Fast food chain of business face
criticism when lack of healthy options does not include in their menu. This policy
required to make changes in existing menu and the way food is being produces for

potential consumers. Public health policies motivate people to make healthier choices,
which directly influence on fast food restaurant chains and their productivity that is not
appropriate for business growth within market.
Economic factor-
Inflation rates, disposable income of clients, interest rates and economic growth
are the different types of economic elements that influence particular industry, these are
the determinants of certain economy's performance. Unemployment rates after Brexit
is high, is affects food industry the most, in which Leon's restaurant operate their large
chain of fast food effectively (Crescimanno, Galati and Bal, 2014). After Brexit the
business productivity and profitability get low, because of many people left out Europe
after separation which affects food production operations the most. Many people do not
have any job after all these happen, in which food industry feel pressure from
government to hire some applicants in business that helps to raise the living standards
of individual and support to enhance the level of economy much better than after Brexit.
Along with this, when the economic changes happen in nation where Leon's restaurant
operate their business, it lead to have bad impact on large restaurants chains. The
stable and slow growth in economy of nation place greater threat for food industry in
which they cannot be able to growth faster.
Social factor-
UK has large customer market, population of nations is more than 66.4 million,
the demand of these people are continuously changed according to trends in market
that influence on population preferences and choices for purchasing products and
eating food. Social factor examine the social environment of current market and
standard determinants like trends, population analytics, cultural etc (Fernqvist and
Ekelund, 2014). fast food trends is changed based on what people want, as defined
throughout market analysis people are driving towards healthiness and focus on eating
health food more than junk food because it helps to make consumer fit and health for
longer period. In simple words, due to changes in consumers preferences, food
industry suffer a lot, it directly impacts on way they make food for people which is quite
difficult to change according to clients new demands. Government and clients push
restaurants operate in Food industry to make changes accordingly.

Technological factor-
These determinants pertain to innovation in technology that affect operations of
fast food industry and market unfavourably or favourably, it refers to research and
development, automation and amount of technological awareness that market have. UK
is the technologically advanced nations in the world. Advancement of technology
create new opportunity for food industry to reach at its target market and get more
information about consumer preferences (Moses and et.al., 2014). It impacts positively
because with the help of technology or social media marketing Leon's restaurant will
generate awareness about business and products that they offer to consumers
according to requirement. Technology is essential to create food labels, packaging and
production of food. For example, Oxy fryer is one of the best device in market that
posses greater success. This technology prepare food use of less oil and make it tasty
and health which is quite beneficial for business to retain people how wants to eat
healthy.
Environmental factors-
These elements include all those factors that influence by surrounding
environment, it is the crucial part of PESTLE analysis for food industry which affects
production and packaging of food procedure the most. Environmental sustainability is
another significant factor to impact food industry internationally. Government show their
concern towards environment safety and make some changes in their regulations and
rules that pressed restaurants to adopt greener approach (Tansey and Worsley, 2014).
Whether, UK or Europe, quality standards become stiffer everywhere, administration
tightened their rules, which affects fast food business, and they feel pressure to
contribute in CSR for well fare to environment, reduce use of plastic bags for food
packaging and will use paper bags.
Legal factor-
Certain laws affects food industry for longer or short term period as well as
companies work under this sector. Leon's restaurant operate their large chain of fast
food in this industry to serve the best food. Consumer laws, labour laws, safety
standards and other laws in nations affects food sector. Employment Act 1996 is one
of the legal factors that impact on industry and the way they hire applicants in order to

run business effectively. According to this law restaurants provide the rights of
employees and cater the best facilities to them, changes in this law create many issues
for firms to modify their current employment structure accordant to the new rules which
is quite impossible, but essential to operate in many nations (Lelieveld, Holah and
Gabric, 2016). This act protects rights of workers legally without any differences and
inequality in workplace. In addition to this, Equality Act 2010 is another law applied in
food sector in order to protect their staff members from any discrimination in work areas,
changes and any kind of modification in above laws negatively affects operational
structure of Leon's restaurant as well as whole industry.
Emerging mega trends-
In recent time, there are many electronic machines or devices is designed to
deliver quality of services and products to consumers in Food industry. Oxy fryer is one
of the emerging mega trends which affects food production procedure of entire sector.
Demand for health and tasty food is increased significantly that forced Leon's restaurant
in industry to revamp their older method of frying food items that will satisfy the needs of
potential clients. The intention behind revamping technology is to maintain tendency of
people towards fast food in future.
This trend will apply in business effectively which helps to retain consumers
towards restaurant for longer. Oxy fryer combines fast circulating hot air wit grill, it
makes cooking staff in restaurant capable to prepare healthy or tasty fried food with less
oil according to people demand and preferences. In restaurant food is fried accordant to
traditional methods with large amount of oil that does not make food items health at all.
But while using fryer in kitchen area Leon's restaurant run their large fast food chain
effectively, with the help of this magical tool, it allows employees to cook food with less
oil in order to make it healthier for those consumers who drive towards health-
consciousness but still wants to eat French fries and other fast food items. By using Oxy
fryer in business company run their food chain efficiently and able to cook dishes with
low calories and cut fat content.
Food delivery apps is another emerging mega trends that will apply in
restaurant business effectively to improve the quality of services. This application gain
major success in metro cities and gaining popularity in many states as well. Working's

class and students who do not have much time on their hand for the home to cooked
and prepare meal for their family as well as themselves, it is one of the biggest issue of
working peoples. But with the help of food delivery applications in available in market
people will place their order easily and get tasty food from outside of house. By using
food delivery applications in business, Leon's restaurant grab the attention of new and
potential consumers. Just eat. Deliveroo, Talabat etc. are the different types of food
delivery applications in UK that enhance the productivity and increase profitability of
restaurant rather than before. This trend is easily and efficiently apply in restaurant
trade that provide benefits in term of retaining people, enhance food production systems
and generate revenue in market.
Porter's five forces-
Threat of new entrance- Threat of new entrance is high. When barriers to enter
into food industry is low, new companies easily enter market due to low costs and
moderate competition (Carraresi and Banterle, 2015). New firms take the advantage of
low barriers, they take one step towards expanding their business within highly
profitable market where they effectively increase profit margin and generate revenue
more than before. High threat of new entrance impact on Leon's restaurant business
and large chain of fast food in many nations. The outcomes in many new entrants which
will decrease consumer base and profit margin. Without tough barriers new company
take entry into profitable market and attract consumers by delivering better services to
them.
Threat of substitutes services or goods-
The degree of this force is High. In food industry, due to high threat of substitutes
products or services Leon's restaurant feel pressure because it impacts on their
production procedure the most. In market, different types of substitute products is
available for consumers that drive people towards purchasing it. High threat of
substitute goods make food industry less attractive, it decreases profit potential for
restaurant in this sector and make longer term affects on entire business chain.
Availability of substitution goods is high in market that effects profit margin of firm
because customers select to purchase substitute instead of fast food products. For
example, baked potato fries is the substitute products of French fries.

Bargaining power of suppliers-
The bargaining power of suppliers is moderate. This force present to which
extent suppliers influence costs of supply. In food industry, the number of suppliers is
large which decrease their power to high cost of services more than before. It impacts
positively on Leon's restaurant business and its supply chain where they operate
business effectively (Grigore, 2014). A lot of suppliers available in market for supplying
raw materials to company, does not allow them to influence prices and practice control
in food sector. In this sector due to low bargaining power suppliers cannot not be able to
pressure firm by charging higher prices.
Bargaining power of clients-
The level of this determinant is high. Consumers have high bargaining power in
market where there are many fast food restaurants available, as it allow people to
choose any one of them easily without thinking twice. Outside of restaurant the queue of
consumers is too long, in this situation consumers probably go to another restaurant just
across road which impact on consumers base of business and decrease their
profitability. Leon's restaurant operate their fast food chain in those places where other
restaurants provide the same products to clients without waiting too much, it is one of
the disadvantage for firm.
Competition among exiting-
This determinant is moderate in context of leon's restaurant because they
provide the same quality of products to its potential consumers. The competition among
exiting restaurants is moderate as they offer fast food items to people and sell quality
goods. Due to health-consciousness number of eateries is low which decrease the level
of competition within food industry. Moderate competitive sector such as food industry,
companies exercise high and have control on price of services or goods. Rivalry
between existing player is moderate because of high market growth rates and it is also
moderate when barriers for exit is low.
Environment of food industry-
Technology implementation, contribution in CSR policy and by improving
consumers services Leon's restaurant can succeed in their industry and increase
productivity more than before. Technology enhance their productivity, improve

performance, enhance the speed for delivering food products to consumers on time
without barriers.
Food industry environment is change in future with the help of applying mega
trends in their large fast food chain. Oxy fryer bring a lot of happiness and success for
company as it helps to retain people with them for long period, it allows consumers to
visit again and again. Emerging mega trends influence positively as it helps to grow
business more and more.
Strategy evaluation of firm
Resources of Leon's restaurant-
Skilled and professional applicants is the main resource of restaurant business
that help to produce tasty food for consumers and able to increase profitability (Adhikari,
2018). Most of the workers provide their services in night shift, they go to restaurant for
night off from cleaning and make preparation for next day menu. Knowledgable staff
contribute to gain competitive advantages and also capable to collect information about
consumer preferences.
Cooking equipment is important resources of restaurant business that allow
staff of prepare food quickly and make them able to give proper fishing after cutting or
chopping food items.
Menu, sets the tone for company and attract people towards business, menu of
restaurant will be clear and full of creativity which grab the attention of new consumers
into marketplace and drive the existing ones.
Structure of dining hall is the main part of restaurant and essential resource
which helps to provide comfortable feeling among number of clients.
Source of funding, the most important part of restaurant resources is fund
because without having food financial background and funds Leon's restaurant cannot
be able to satisfy clients accordant to needs and sustain for longer within industry as
compare to their competitors.
Capabilities of company-
Ability of business define the capacity to effectively perform within Food industry
and successfully work a different business activity such as taking orders via web, loyalty
programs and home delivery etc. for Leon' restaurant. In short, company is able to

deliver the best quality service to its consumers on time with the help of talented
candidates in business. Firm is capable to access funding and operate their large fast
food chain effectively, by having good funds they will be able to implement and except
any changes within technology and adopt new emerging trends in their work. The ability
of restaurant is to organize the collection of particular people, technology, information
and production procedure of food which together act to realize the business capability to
satisfy requirement of consumers. Furthermore, this restaurant is able to update their
menu according to consumer preferences.
VRIN-
Valuable-
It includes value create plan which help one outperform their competitors by
improving their effectiveness of operations. Leon's restaurant is able to reduce their
weakness and gain competitive benefits with the helps of updating their existing menu
accordant to market trends and preferences of people which is quite beneficial for
overall business.
Rare-
This stage includes those resources which is unique and not available to
business competitors (Wan Yusoff and et.al., 2015). Leon's restaurant had good funds
and strong financial background which supports to sustain in market and permit them to
take better decision without thinking too much in regard to business success.
Imperfectly-
Leon's restaurant governed Oxy fryer in food industry which other restaurants
cannot copy, they have trade mark on their packaging bags which cannot be copied by
any other firms in same sector.
Non substitutable-
Leon's restaurant is global recognized company in the world, then name to
business is considered as non substitutable resources.
Comparison between capabilities and sustainable resources within food industry-
Sustainable capabilities Sustainable resources
Leon' s restaurant is able to contribute in As compare to sustainable capabilities,

environmental sustainability, they will
reduce use of plastic bags for packaging
food items as compare to sustainable
resources. It helps to achieve high
success within food industry. They are
able to apply oxy fryer in their business
which helps to improve cooking style and
enhance the workers' performance.
resource of business make them stronger
rather than the competitors in marketplace.
Leon's restaurant is able to recycle plastic
bag, it can be unceasingly replenished.
Operation of Leon's restaurant
Food production operation-
It is the activity of cooking food items on mass scale, company can prepare and
cooked food with the help of available resources that is skilled labour in workplace. All
operation in business is pertaining to this particular operation in which knowledgable
staff members cooked food by considering the preferences of clients.
Marketing and promotional operation-
This is the wider term that collectively describe activity of advertising Leon'
restaurant fast food products including procedure, people, technology that enable
promoting to operate efficiently.
Cleaning operation-
Cleaning is the most essential part of restaurant operations, it makes the positive
impact on consumers and allow them to keep environment safe and hygienic.
Vision of Leon restaurant-
Leon restaurant vision is to provide quick service to people and cater good
experience of serving fast food in its large chain. They want to retain consumers with
the for longer in order to increase profitability.
Marketing operation supports delivery of business vision-
Through creating the best and effective marketing plan leon's restaurant will
attract potential clients with them as well as grab the attention of new ones (Piercy and
Evans, 2014). Marketing strategies or plans generate awareness about services or food
products produced by restaurant for its large target market.

Extent to which marketing operation is sustainable-
Marketing and promotional operation is sustainable for restaurant as it gain more
revenue and increase consumer base of Leon restaurant rather than before within
marketplace.
CONCLUSION
From above analysis, it has been summarized that political, social, economic,
technological and legal factors impact on Leon restaurant. With the help of available
resources and capabilities company gain high success within food industry which is
beneficial for overall business. They increase productivity and profitability rather than
before by using different types of emerging trends in their business that allow reaching
at target market and satisfy needs to clients effectively. The purpose of this study is to
evaluate the affects on new entrance into market, and measure the impact of low
bargaining power of suppliers. Furthermore, Leon with the help of marketing gain
success and increase revenue, they fulfil its vision and also build strong position within
marketplace. Bargaining power of clients is the vulnerabilities for business which
pressure on firm to drop prices of fast food products and make changes in services
according to demand.

REFERENCES
Book and Journals
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Fernqvist, F. and Ekelund, L., 2014. Credence and the effect on consumer liking of
food–A review. Food Quality and Preference. 32. pp.340-353.
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Appendix-
Political factor
Public health policies- this factors affect
Food industry the most, it makes pressure
on restaurant to make change in its current
menu and add some nutrition supplements
to make people health and fit.
He, F.J., Brinsden, H.C. and MacGregor,
G.A., 2014. Salt reduction in the United
Kingdom: a successful experiment in
public health. Journal of human
hypertension. 28(6). p.345.
Economic factor
Unemployment rates- this element of
economic factors directly affects the
growth of company and pose threats to
Leon's restaurant business.
Manning, A., 2016. The elusive
employment effect of the minimum wage.
Economic changes- slow and stable
progress of economy impact on the
success of business and also negatively
affects the profitability of restaurant.
PESTLE analysis of food industry. 2016.
[Online]. Available
through:<https://freepestelanalysis.com/pe
stel-pestle-analysis-of-restaurant-
industry/>
Social factor
Consumers preference- in recent time,
people are very health-conscious which
put pressure on Leon's restaurant to make
change in their menu, which is quite
difficult task.
Irene Goetzke, B. and Spiller, A., 2014.
Health-improving lifestyles of organic and
functional food consumers. British Food
Journal. 116(3). pp.510-526.
Technological factor
Advancement of technology- it impacts FAST FOOD INDUSTRY PESTEL

positively on Leon's restaurant business.
Technology enhances the performance of
workers and delivery good quality of food
to people.
ANALYSIS. 2019. [Online]. Available
through:<https://notesmatic.com/2016/09/f
ast-food-industry-pestel-analysis/>
Environmental factor
Environmental sustainability-
environmental sustainability is the main
concern of government as well as people
which required food industry to give their
effective contribution and make some
modification in several operations that
might be a reason of pollution.
Beske, P., Land, A. and Seuring, S., 2014.
Sustainable supply chain management
practices and dynamic capabilities in the
food industry: A critical analysis of the
literature. International journal of
production economics. 152. pp.131-143.
Legal factor
Employment Act 1996 and Equality Act
2010- according to this law, food industry
consider the rights of workers and provide
facilities accordingly in which the
requirement of changes consumes a lot of
time and affects on other operations of
business as well.
Ortega‐Ramirez, L.A and et.al., 2014.
Potential of medicinal plants as
antimicrobial and antioxidant agents in
food industry: a hypothesis. Journal of
food science. 79(2). pp.R129-R137.