Case Study Analysis: Business Development of Leon Restaurants

This case study examines Leon Restaurants, a fast-food chain in the UK, co-founded by John Vincent. It analyzes the company's purpose, objectives, stakeholders (including Wagamama and Nick Evans), and corporate social responsibility. The internal audit covers corporate culture, resources, Porter's Value Chain, core competencies, and key strengths and weaknesses. The study further explores the remote environment using PEST analysis (political, economic, social, and technological factors) and the operating environment through Porter's Five Forces. Finally, a TOWS analysis outlines opportunities (expansion, service improvements) and threats (competitors like McDonald's and Pizza Express). The analysis highlights the importance of customer satisfaction, innovation, and adapting to market changes for Leon Restaurants' growth and sustainability.

CASE STUDY

Table of Contents
Workshop 1......................................................................................................................................1
1.1 Purpose: ...........................................................................................................................1
1.2 Internal Audit:..................................................................................................................2
Workshop 2......................................................................................................................................2
Remote environment..............................................................................................................2
Operating Environment;.........................................................................................................3
TOWS ....................................................................................................................................3

Workshop 1
1.1 Purpose:
The purpose of an organisation highly depicts its aims as well as objectives of carrying
operational activities. It sets a framework guiding the managers and other personnel in the
venture to perform their tasks. The cited venture here is, Leon restaurants, co- founded by John
Vincent in the year 2004. Type of business and objectives: Leon Restaurants is a fast food supply chain operating
in UK, basically, it is an organisation or group that deals with providing hospitality and
tourism services in the economy. This industry deals with providing delicious as well as
innovative food offerings to its customers and thus, serving them. The objective of this
organisation is to become a global brand or name in offering dishes which attract
customers. Even, the mission statement of mentioned venture states that, “it is all about
winning not fighting.” Stake holder's analysis: Stakeholders are recognised as the biggest pillar behind
operational activities to be considered in an organisation and the success to be achieves,
as they are then investors who provides finance to the company to carry out its venture
related activities. The major stakeholders for Leon restaurant includes, Wagamama, La
Tasca, Yo Sushi, these are the personnel who have invested in the American food chain
of mentioned organisation. Also, Nick Evans is an active partner or investor for the
restaurant as he has always shown his excitement towards the potential growth of the
venture in near future.
 Corporate Social Responsibility: CSR deals with the social responsibilities to be
undertaken by an organisation. Social responsibility of a firm is often towards the well-
being of its customers. The cited firm is restaurant which is highly consumer oriented
and requires its customers to be satisfied in order to gain advantage. The greatest
responsibility of this restaurant towards its customers is to provide innovative, new as
well as healthy dishes or food offerings, as per the tastes and preferences of desired
customers.
1

1.2 Internal Audit: Corporate culture: The culture of the organisation highly depicts preparing delicious
dishes for the customers with keeping their health factor in the mind. Also, the chefs at
the restaurant use own cookbooks in respect of preparing new dishes. Corporate Resources: The biggest resource for the cited venture is recognised to be as its
human resource as well as its stakeholders. Human resource for this organisation includes
its chefs at kitchen and other personnel operating within the restaurant.
 Porter’s Value Chain:
 1. Firm's infrastructure: Restaurant possess with sitting facilities for its customers to relax
as well as enjoy the food.
 2. Human Resource Management: Experienced chefs are appointed in the kitchen area of
the restaurant and other necessary staffs in order to serve customers with quality services
are also appointed.
 3. Technological development: Highly innovative techniques are adopted in the cooking
process to make it look more attractive. 4. Procurement: Required raw materials, i.e. vegetables and other materials used in a dish
used in cooking are purchased well in advance and in a bulk. Core competences: The core competencies that brings advantage for mentioned
restaurant is its taste that it provides to its customers as well as the services provided by
staff appointed at venture to serve the customers.
 Key Strengths and weaknesses: The restaurant premise is always clean as well as tidy.
The offerings provided are delicious and attractive. Also, the restaurant enjoys a good
image in the minds of its customers. Weakness part includes that the firm fails to provide
new offerings to its customers.
Workshop 2
Remote environment In order to determine the threats and opportunities of cited restaurant, it should
first analyse the remote environment that affects its activities. It can be determined by
undertaking PEST analysis, a detailed discussion of the same is given as under:
2

 Political factors: It includes health related rules and regulations imposed by the
concerned government on the workings of hotels as well as restaurants. Economic factors: Both, inflationary as well as deflationary pressures adversely affect
the purchasing power of customers hence, resulting a decline in the number of customers
for the cited restaurant. Social factors: The customer wants keep on changing with changing time, this requires a
restaurant to be updated with the changing trends by offering all types of vegetarian as
well as non-vegetarian food suitable for all customers.
 Technological factors: Technological advancement for the cited firm includes, online
ordering services can be provided to the customers and large screens showcasing the
menu can be effective.
Operating Environment; The operating environment of cited venture can be analysed with the help of
Porter five forces. A detailed evaluation of this analysis is presented as here: Power of suppliers: The suppliers in this cited restaurants provide raw material for the
dish to be prepared and the personnel in organisation. The suppliers in this industry have
lees bargaining power. Power of customers: Customers of mentioned organisation enjoy more bargaining power
with them, as they are the whole and sole target of their producing activities. New entrants: New entry in this sector is quite risky as often customers are loyal towards
their chosen restaurant. Substitutes: There are numerous substitutes of Leon restaurant available in the market,
but the image of mentioned venture differs itself from others.
 Competitors: The biggest competitors for cited restaurant company are McDonald and
Pizza express.
TOWS Opportunities: The opportunities available with mentioned restaurant defines its
possibilities or potentialities in the existing market. The restaurant lies with enormous
3

opportunities of expanding and diversifying its activities towards different countries as
well. Opening new fast food centres can gain much more beneficial results for the
concerned venture. It can also improve its offerings and services for the customers, it can
offer welcome drinks on arrivals of customer. Even, fast home delivery services can
assist a venture.
 Threats: Competitors are the greatest threat for an organisation, hindering their growth
and developmental process. McDonald, pizza express are major competitors for Leon
restaurant as they also deal with fast food serving to its customers. The growing brand
image of both these firms is biggest threat for cited business venture. Even the discounts
offered by these two ventures highly affects the sales of the concerned restaurant, as
customers are highly attracted towards low price quality goods.
4