Analysis of Leon Restaurant's Business Environment and Functions

This report provides a detailed analysis of the business environment, focusing on Leon Restaurants. It begins by defining the business environment and its impact on organizations, then proceeds to compare and contrast different organizational types, including public (NHS), private (Leon Restaurants), and voluntary (Red Cross) sectors, examining their size, scope, growth, and legal structures. The report then delves into the functions of Leon Restaurants, such as human resources, production, finance, and marketing, and explores their interrelationships. Furthermore, it conducts PESTLE and SWOT analyses of Leon Restaurants, evaluating the interrelationship between strengths, weaknesses, and external factors. The report concludes with a reflection on how SWOT analyses influence business decision-making.

Business and business
environment

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
P1.Different types of organisations........................................................................................1
P2. size, scope and growth of the organisation......................................................................2
Differentiate with background information of different type organisations..........................3
P3.Functions of Leon restaurant and how they are interrelated.............................................6
TASK 2............................................................................................................................................8
P4.Pestle analysis of Leon restaurants....................................................................................8
P5.Swot Analysis of Leon restaurants and KFC..................................................................10
P6.Interrelationship between strength and weakness and external factors...........................11
Reflection on how SWOT analyses influence decision making of business........................12
CONCLUSION..............................................................................................................................12
REFERENCES..............................................................................................................................14

INTRODUCTION
Business environment refers to a combination of internal and external factors which
affect the operating system of organisation (Prajogo, 2016). The nature of this type of factors is
very dynamic. Business environment influence the business in terms of overall performance and
sustainability. The report will present different type of organisation such National health service,
Leon restaurants and Red cross with their purpose and growth in the international market. The
study also differentiate between NHS, Leon restaurants and red cross in terms of their vision,
mission, size & scope and legal structure. This report also defines the functions and pestle
analysis of Leon restaurants.
TASK 1
P1.Different types of organisations
Public sector organisation
Public sector organisation refers to those organisations in which peoples buying shares
and becomes shareholder and the involvement of government in their capital is more than 51
percent.
The purpose of this type of organisation is to provide better quality products and services
at reasonable price to customers rather earning more profit. Public sector organisation also
provides the employment services to their local communities (Erasmus, Strydom and Rudansky-
Kloppers, 2016).
The legal structure of the public organisation, This type of company is owned by the
board of director on behalf of the shareholder and it can sale its shares on the stock exchange to
public (Tarhini, Al-Dmour and Obeidat,2015)
Private sector organisation
The private sector organisation is owned by the individuals and companies rather than
government bodies. So this type of company is not controlled by the government. (Virglerová,
Dobeš and Vojtovič, 2016).
Purpose of private sector organisation is to increase the profit of company and their
shareholders. It has also objective to make clearness in financial reports which is restricted to
company stakeholders.

The legal structure of private organisation includes, this type of organisation is owned by
private peoples and shareholder and they have to complete various type of legal documents such
as company name, trade and their registered office.
Voluntary organisation
Voluntary organisation refers to an association of individuals which performs the number
of actions for welfare of individuals and growth & development of country.
The main purpose of the voluntary organisation is to create the social wealth or provide
benefit to society rather than earning the profit. It also educates its member to reach their goals.
The legal structure of the voluntary firm, this type organisation includes Trust, in which
trust by name, trustee only, no members and no separate legal body from the individual trustee.
Growth of voluntary organisation
P2. size, scope and growth of the organisation.
Public organisation
The size and scope of the national health service, it has 1.5 million and more than
employees worldwide and it deals with 1 million patients in every one hour. For improving their
long term safety and quality NHS has to concentrate on many specialist service into fewer
centres of excellence.
Growth of public sector organisation
Public sector organisation such as National Health Service is one of the worlds most
efficient health care system established in England, united kingdom. The purpose of NHS is to
provide better health care service quality rather than earning profit. It deals with 1 million
patients in every 36 hours in NHS England. It provides employment to more than 1.5 million
peoples and putting its self as high workforce organisation in worlds top five largest work forces.
Private sector organisation
The size and scope of the Leon restaurants, It has branches in US and Netherlands. It is
connected with 57 number of location as restaurant in UK. It can grow by providing very
delicious food.
Growth of private sector organisation
The growth of private sector firms is more than the government sector because their
major focus on maximising the profit. Leon restaurants is the private sector organisation and it

has grown to a network with 57 restaurants across the United kingdom and Netherlands with the
aim of increasing the profit of company (Miller and Jentz, 2017).
voluntary organisation
Size and scope of the Red cross, it has 17 million volunteers and staff member worldwide
and it coordinated with 190 national societies across the world. It can grow through addressing
global challenges, increase the scale and show the result and impact of their solutions.
For example growth of Red cross organisation, which is established in Geneva,
Switzerland. It has 17 million volunteers and staffs worldwide with the aim to provide health
safety and services to peoples. The red cross is coordinated and connected with 190 national
societies across the world (Holotiuk and Beimborn, 2017).
Differentiate with background information of different type organisations
basis National Health
service(public)
Leon Restaurants
(private)
Red Cross(voluntary)
Background
information
NHS provides the
healthcare services to
UK's communities.
It is food service
organisation and
located in more than
57 towns across the
UK and Netherlands.
It provides the health
safety and services to
peoples who suffer
from emergency
disaster.
Product & services NHS provides health
care services through
hospitals, dentist,
pharmacy and also
facilitate patient
transport including
accident and
emergency.
It refers to a fast food
service which involves
fries, big mac, chicken
sandwich, hamburgers,
the quarter ponder
with cheese, salad,
wraps, desserts, soft
drinks and other
beverages
(Allmendinger and
et.al., 2017). It also
facilitates home
It is a humanitarian
organisation run by the
volunteers with an aim
to provide relief to
victim of disaster and
also protect peoples
from emergencies. Red
cross also provide
shelter and emotional
support to needy
persons.

delivery services to its
customers.
Size and scope It has 1.5 million and
more than employees
worldwide and it deals
with 1 million patients
in every one hour. For
improving their long
term safety and quality
NHS has to
concentrate on many
specialist service into
fewer centres of
excellence.
It has branches in US
and Netherlands. It is
connected with 57
number of location as
restaurant in UK. It
can grow by providing
very delicious food
(ivari and et.al., 2016).
It has 17 million
volunteers and staff
member worldwide
and it coordinates
among 190 national
societies across the
world. It can grow
through addressing
global challenges,
increase the scale and
show the result and
impact of their actions.
Vision & mission To create an
environment that
enables innovations in
order to improve
peoples health and
well-being (Chi,
2015).
To move with
profitable growth and
providing very
delicious food to their
more customers. Also,
facilitating
comfortable place to
eat and drink.
To build a strong
network of volunteers
and staff members.
Preventing the human
suffering in face of
emergencies.

Business objective The main objective of
NHS is to improve the
quality of health
service and reduce
errors.
Business objective of
Leon restaurants is to
provide high standard
good and quick service
to its customers for
earning high
profitability.
To minimise the death,
injuries and impact
from disasters.
Promote respect for
human dignity (Stott,
Stone and Fae, 2016).
Organisational
structure
The organisational
structure of NHS is
matrix.
organisational
structure of Leon
restaurants is vertical
structure.
Its organisation
structure is line
organisation
Legal structure This type of company
is owned by the board
of director on behalf of
the shareholder and it
can sale its shares on
the stock exchange to
public (Tarhini, Al-
Dmour and Obeidat,
2015).
Private companies are
owned by owners and
shareholders. It has to
completed legal
documents before
forming company such
as objective of
company and their
registered office and
headquarter.
The legal structure of
this type organisation
includes Trust, in
which trust by name,
trustee only, no
members and no
separate legal body
from the individual
trustee.
Stakeholders It includes the chief
scientific officer, cross
government,
Academy for health
care science, national
school of healthcare
science and north
wealth healthcare
science network.
The stakeholder of
Leon restaurants, his
employee, customers,
investors and
communities (Henson
and Garfield, 2015).
It included Red cross
volunteers from all 50
states and district of
Columbia and America
Samoa. It receives
financial support from
corporations such as
UPS.

Evaluation and analysis of this difference
As a private company Leon restaurant provides its food services in more than 57 towns
across the UK and Netherlands which brings high profitability of company, where public
company such NHS provides health services only with in the UK and with this they do not gain
high profitability. Every company follows the different organisational structure which affect the
productivity of the firm, Leon follows the vertical organisation structure which defines the clear
roles and responsibility of the all department which contributes in the achievement of the
organisational goals, whereas voluntary firms such as red cross follow the line organisational
structure in which manager control the employees and only give command to do work which
crates the conflict between management and employees and results in decreasing the productivity
of the firm.
P3.Functions of Leon restaurant and how they are interrelated
The organisation structure of Leon is vertical structure, in which manager gives command and
control to their employees work. This type of organisation structure in Leon restaurants shows
that there are clearly explained roles and responsibilities.

Leon restaurant includes various function such as human resource department, production
department, finance department, and marketing departments which are controlled by the separate
managers. (Chi, 2015).
Human resource department: human resource department of the Leon restaurants provides the
employees with high skill and knowledge which are essential for the success of the restaurant.
Production department: production department of Leon restaurants produce the product and
services according to the requirement of the consumers which increase the interest of the
consumers towards the food products of the Leon Restaurant.
Finance department: finance department is the heart of the Leon restaurants because it provides
the financial resources as well as also provides the profit and loss of the firm. This department
provides the appropriate finance to production department for accomplishing production
activities.
Marketing department: The main role of marketing department is to find out the way in which
Leon restaurant provides its food services to consumers. It also helps in building a brand image
of the restaurant in the market place.
Interrelationship
Human resource department and production department play an important role in the
every successful industrial establishment. These two department runs together in the
achievement of organisational goals. Leon restaurant is a food manufacturer company and for
making delicious food, skilled and competent chefs are required which is only provided by the
human resource department because it ensures that person is goof fit for job and have the
required level of skill and knowledge (Allmendinger and et.al., 2017).
Advantages and disadvantages
Relationship between HR and production department plays an important role in
accomplishing organisational objective effectively. Production department fulfil the customer
requirement by providing attractive products through human resources. With the help of human
resource department, production department produce high quality production and also increase
the productivity of the Leon food restaurants.
The relationship between different departments also has disadvantage, when human
resource department not provides the appropriate resources to production department which

results in decreasing productivity and profitability (Erasmus, Strydom and Rudansky-Kloppers,
2016).
Impact of interrelationship between different functions on organisational structure
The organisational structure of Leon restaurants is vertical structure which present the
clear roles and responsibilities of the employees. In which human resource department directly
communicate to production department and also with other department for solving any issues or
conflict in the organisation. It provides smooth functioning to all the department of Leon food
restaurants. In this different functions go into different departments that report to their
department manager.
This type of organisation structure reduce the communication barriers which results in healthy
working environment.
TASK 2
P4.Pestle analysis of Leon restaurants
Political factors-
Political factors include the government rules and regulations for fast food restaurant and
for franchisee business that affects the working of the Leon restaurants. Continuous changes in
legislation, stability, trade agreement etc. influence operations of fast food industry (Iivari and
et.al., 2016).
Stability of the government also affects the operations of Leon restaurants as if there exist
instability of government then it gets difficult for the company to adopt the changes in
regulations on frequent bases that negatively impact on overall working of Leon, Whereas stable
government leads to efficient working of the company. Timely payment of taxes and creating
employment let to build healthy relationship with the government. That positively impacts on
overall operations of company.
Economic factors-
Economic factors like inflation, exchange rate, employment rate, GDP etc. affect the
company to great extent (Henson and Garfield, 2015).
As inflation lets influence purchasing power of the people, if there is inflation then value
of currency will be down that will minimise spending power of population and hence less
revenue generation for the company because consumers will not take interest in buying such
costly products. As the company dealing internationally so it needs to be aware on the global

supply and currencies exchange because to meet the demand of its product company needs to
import its raw material as local market cannot meet such abundant supply and due to frequent
changes in currency exchange rate trading becomes difficult for the company (Tarhini, Al-
Dmour and Obeidat, 2015).
If the economy is growing then the income of the people increases and hence they could
spend more.
Socio-cultural factors-
Socio-cultural factors means the lifestyle, customs, traditions that influence the consumer
behaviour.
Leon restaurant faces many socio-cultural factors like rising cultural diversity means
consumer preferences differs from country to country so it is difficult for the company to meet
the needs of all the customers across the region. Leon restaurant has been criticised on serving
unhealthy product to the customers which negatively impacts the business of the company.
As standard of living of the people is rising day by day, they are becoming more and more
habitual of eating fast food so it is an opportunity for the company to increase its revenue which
positively impacts the growth of the company (Leon restaurants-Strategy, SWOT and Corporate
Finance Report, 2017).
Technological factors-
Advancement of technology, technological innovations Play a vital role in running
company's operations effectively and efficiently. Leon restaurants does not facilitate online food
delivery in some cities which a big hurdle for the company and it negatively affects the
company's sales.
The company provides free Wi-Fi facility in their outlets to the customers and automation in
operations as the food is prepared in different equipments and machines so that quick food
servicing is done and provide transparent food preparation service to customers that positively
impacts the brand image of the company. (Holotiuk and Beimborn, 2017)
Legal factors-
Modification in legal schemes and new law's comes under the purview of legal factors.
As Leon is an international company and has its outlet in India, UK etc. many locations so the
company is abided by the laws and regulation of both Indian and international law so it becomes

difficult for the organisation and if the entity fails to follow any law then huge penalty has to be
bear by the company which negatively affects the goodwill of the company.
Leon is a multinational firm with unique trademark and brand image that attracts the children
and the young which creates a positive sign for the company's growth (Prajogo, 2016).
Environmental factors-
This factor refers to the changes in the ecological environment like changes in the
climatic conditions, external environmental projects etc.
Changes in the climatic condition is a threat to the company because it is a fast food
restaurant and if the climate changes the stability of the product changes as in rainy season the
food could get soggy so it negatively affects the working of the enterprise.
Through some ecological or environmental projects firm could contribute towards the welfare of
the society that will positively impact the company's reputation. (Holotiuk and Beimborn, 2017)
P5.Swot Analysis of Leon restaurants and KFC
Leon restaurant KFC Restaurant
Strength
 Leon has unique brand name as it
provides quality product with quick
serving and at reasonable price.
 company has presence all over the
world like Netherlands, UK etc.
 he children and the young are the loyal
customers because of their quality
product and consistent taste.
 the firm has wide range of products like
burgers, fries, cold drinks, ice-creams,
wraps, puffs and pizza etc. that the
customer can choose as per his
preference.
 Leon adopts various promotional
strategy like discount coupons, free
Strength
 High brand loyalty is the main strong
point of KFC that aids the firm in
gaining attention of mass audience.
 Strong trademark recipes are strength
of KFC. This has made the food
standout.
 Close monitoring over hygiene,
cleaning, quick services that make it
unique from other competitors.