A Detailed Analysis of Competitive Advantage at Leon Restaurants UK

This report provides a comprehensive analysis of the factors contributing to the competitive advantage of Leon Restaurants in the UK. It begins with an executive summary and an introduction to the company, including its vision and financial performance. The main body of the report delves into the market environment using PESTLE analysis and Porter's Five Forces to assess political, economic, social, and technological factors, as well as competitive forces. It then examines Leon's strategies using the VRIO model and cultural web to evaluate valuable, rare, imitable, and organized resources and capabilities, along with cultural elements. The report also explores Leon's growth strategy, considering market trends and customer preferences, particularly in the context of the COVID-19 pandemic. The analysis highlights the importance of innovation, customer engagement, and strategic resource management for maintaining a competitive edge in the fast-food market. The report concludes with a summary of findings and a list of references.

Analysis of the factors
contributing to
competitive advantage
in Leon Restaurants UK

Executive Summary
From the study within the report it was being concluded that organizations tend to
implement several innovative approach within their working process. Through which it tend to
make sure that it is able to provide a new and rare product to the customers by which they can be
motivated to pay high prices for the organizational services. But in order to implement
innovative approaches company has to make sure that the developed product is able to fulfil the
customer requirements. Due to which organization has to develop an effective bi-directional
communication, through which it can provide specific products to customers.

TABLE OF CONTENT
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Market environment of Leon restaurant......................................................................................4
Strategy of Leon Restaurant-......................................................................................................7
Growth strategy of Leon restaurant.............................................................................................9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
Appendix-......................................................................................................................................13

INTRODUCTION
Management consulting is the practice in which organizational performance is being
improved by analyzing various organizational segments and consultancy instructions are being
provided to on the bases of gathered information to improve the specialized expertise. Leon
restaurant is one of the most rapidly evolving contemporary fast food market which tend to
provide different variety of fast food services to customers. The Leon restaurant is an UK based
fast food chain which was being established in the year 2004 by the founding members, John
Vincent Henry Dimbleby, Allegra McEvedy. The vision statement, of Leon restaurant is to
develop food such that it, taste good and do good to customers as well, which they can consume
on the high street (Leon, 2021). The net asset position of the company within the financial year
of 2019 was £13,197,114. which was £5,335,857 in the year 2018. Evaluation external macro
environment of the organization is being done in this report, with that analysis on the new
emerging market trends which tend to affect the organizational working is also being done in the
report. Also analysis on the strategic approach of the Leon restaurant in terms of utilizing
organizational resources, for improving its performance within the marketplace. Study on the
organizational growth strategy is being done within the report, in terms of developing strategy
and achieving a competitive edge.
MAIN BODY
Market environment of Leon restaurant
PEST analysis
Pestle analysis is being done to evaluate the macro environmental conditions of the company.
Following is the PEST analysis of Leon restaurant.
PEST Analysis Citations
Political- Leon restaurant to develop its working process as per
the government developed policies and rules which it has to
follow. This can be seen in the present time of COVID-19 in
which the government has to introduce total lock-down within
the country, which the company has to follow, due to this its
number of sales per day has been decreased and has result in
(Caraher, 2019)

affecting economic growth.
Economical- Company has to establish product pricing such that
it is able to recover the capital investment which it has done,
with that also is having a high profit margin. But due to COVID-
19 several customers have lost their jobs and temporary short
term recession is being faced because of which Leon restaurant
has to introduce creative pricing strategy to maintain its customer
base and its sustainability within the marketplace.
(Lam-González and et.al,
2021)
Social- In order to accomplish high sales, company has to make
sure that the products are being provided to the customers, such
that their requirements are being fulfilled. Due to this it has to
evaluate the changing requirements of the targeted customer base
and with that has to analyze the changing market trends. Though,
this it can ensure that new customers are being attracted towards
the company.
(Leon, 2021)
Technological- Leon restaurant has to ensure that it is able to
provide a uniform level of organizational services to the
customers and with that is having high work productivity and for
which it has to establish synchronize working within
departments. For accomplishing this company has to integrate
technological advancements by which overall operations can be
collaborated and proper time is being allotted on an scheduled
basis.
(Bennett and et.al, 2020)
Porter's five forces-
Porter's five forces is framework which is being used to evaluate the competitive environment of
the company. Following is the porter's five force analysis of Leon restaurant.
Porter's five forces- Citations
Potential entrance- Leon restaurant operate in a marketplace
which is full of some of the biggest market competitors. Thus, if
a new entrance tend to enter within the market, then
(Sigala, 2020)

organizational customer base will further be decreased because
of which company can use its efficient brand awareness to
develop efficient bi-directional communication with customers
by which negative impact of new entrance can be reduced.
Power of buyers- Customers are having a wide variety of options
to choose for the type of service which they want to achieve.
Due to which company tend to ensure that it is able to identify
the specific customer requirements and then improvise product
placement accordingly to maintain customer's loyalty towards
the organization.
(Vargas-Hernández, 2020)
Bargaining power of suppliers- Leon restaurant provide products
like spicy and tasty vegan food options to the customers with
different variety of healthy food as well. Therefore, because of
which company has to make sure that efficient communication is
being established with the suppliers by which the investment
cost to buy resources is reduced and high profit margin can be
accomplished.
(Bou Beltran, 2017)
Threat of Substitute- The threat of substitute is low for the
organization because the company provide different alternatives
of food options. Due to which customers are being assured that
their requirements are being fulfilled because of which the
chances of brand switching is being reduced.
(NADERIAN, 2017)
Industry rivalry- UK's market is full of some of the biggest
restaurant chain, which are having a large customer base because
of which Leon restaurant has to implement several promotional
strategies by which new customers can be attracted towards the
company.
(Vasquez, 2019)
Emerging mega-trends- In the present time of COVID-19 customers are increasing their
engagement in online delivery in which the order is being placed through the means of internet

and company's mobile application. With that customers also prefer packaging, through which
they can utilize the product at their preferred location. Due to this Leon restaurant also
introduced innovative steps for taking plastic less approaches and also other steps by which the
level of service to customer can be increased,
Summarize industry environment- Leon restaurant is able to provide different type of products
to the customers because of which it has managed to achieve high sales and efficient economical
background. But the company faces limitations in integrating the innovative approach into the
main stream operations because of which overall work productivity is being affected (Cornelsen
and et.al, 2017). Thus, the requirement of alcohol free cocktails and spicy variety of vegan food
is often more likely to increase. Due to which by taking innovative approach company can make
sure that it is able to achieve high customer engagement with the organization.
Strategy of Leon Restaurant-
VRIO model
Valuable Rare Imitable Organized
Employees yes no no yes
Machineries yes yes no yes
Economic
growth
yes no yes no
Valuable- Leon restaurant tend to provide an integrated approach of product placement and due
to which company provide additional special training to the employees because of which
organizational employee workforce is highly valuable for organization. With that company is
also having specially developed machinery for the achievement of the desired target. Also, at the
same time company's economic growth is highly valuable for it because through this it can make
sure that it is able to achieve high work productivity.
Rare- Organizational employee workforce may be highly beneficial for the company but it is not
rare because the market competitors can also provide specific training to their employees. To
change the level of products in their product placement strategy, however the organization
develop machinery as per its requirements (Lawrence, 2019). Due to which it is highly rare, this

becomes important for the company because it has to ensure that it is able to accomplish high
work productivity.
Imitable- The employee workforce of Leon restaurant is not imitable because the employee at
Leon restaurant have to develop vegan as well as non-vegan foods. This segregate the employees
of Leon restaurant from other organizations because of which company is able to achieve a
competitive edge by which customers are being assured that they are able to achieve new
products.
Organized- Leon restaurant is having a large employee workforce by which it tend to ensure that
working within different departments is being synchronized. Due to which the organizational
employee workforce is being organized for providing high level of work productivity to
customers (Nguyen and et.al, 2018). However, the economic growth of Leon restaurant is not
being organized because of COVID-19 company was not being able to achieve returns from its
investments, due to which its economic growth is being affected.
Cultural web-
Stories- This is the collective memory of organizations like Leon restaurant, it includes elements
like the reason for which the company was being formed, steps which were being taken to
overcome specific situations and employee's capability to accomplish the task. Since Leon
restaurant is being developed to provide healthy food options to customers, due to which
company integrate learning from previous examples, for improving the current performance
(Personio, 2020).
Ritual and Routine- This is the daily set of actions which the employee tend to perform for
accomplishment of an target. This is the prime consideration which is often being integrated in
the strategy development process because with this approach company make sure that employees
are having an opportunity to implement change.
Symbols- This is the symbolic representation of the company which is often being identified.
This can be achieved by company uniform or logos, by which organization is being identified by
which the organization tend to make sure that it is able to analyses the market trends and
improvise self working (Robinson and et.al, 2018). Through which it can provide new level of
services to the customers.
Organizational structure- Organizational structure is the way in which hierarchy of power is
being distributed at different levels of the company. This is an important for Leon restaurant

because it has to make sure that problem solving time of the employee is being reduced, by
which they overall work productivity will be increased (University of Sydney, 2021). Due to
which different organizational structure like the matrix structure can be used by the company to
achieve high work productivity and low problem solving time.
Control System- This is the system in which the employee's tend to perform several operations to
control the business operations as per their expertise. This is done as an performance
management approach in which the specific tasks are being provided to the employees on the
basis of their respective fields and expertise.
Power structure- This is the organizational power in which the employee at the higher power to
control the organizational operations (Boateng, 2020). This is an important step because the
selection of employees has to be done in such a way that company is being resourced with high
talent and skills.
Sustainable resources and capabilities- Company is widely known for its products which it
tends to provide to the customers, due to which by evaluating the overall working process in
context to the feedback provided by the customers. Leon restaurant can ensure that it is able to
improvise the working of the specific organizational sections which is affecting the company's
performance. Through this step company can make sure that customers are able to achieve best
in class services.
Growth strategy of Leon restaurant
Leon restaurant is the organization which tend to provide hospitality services to its
customers, the company tend to provide services like healthy foods to the customers at different
geographic locations. In order to provide a uniform quality of service to the customer company
continue its operations through in-store purchases. With that it also provide its customers an
opportunity to develop a direct contact with the organization through the means of its digital
customer touch-points. With which the operations of Leon restaurant are being continued and
provided to the customers as well. Company tend to develop its working strategy in such a way
that organizational machinery and employee workforce are being properly being used. This is an
important step for the organization because if has to make sure that the final quality of services
to the customers is being increased. Due to which it develop a bidirectional communication with
the customers by using its online appearance, to identify their requirements by which
concentrated actions can be made by the company.

The vision, of Leon restaurant is the serve the food which is good in taste and also good
for customer's healthy, with which it tends to make sure that customers are having best in class
services. Thus, in order to provide organizational services company uses natural fast foods. With
that in order to improve its performance within the market, organization uses three different
commitments which are as following. Food sourcing & coffee, waste, energy & property and
people, with this ongoing commitment company make sure that its overall working is able to
develop a positive image in front of the customers.
Extent to which government support delivery of vision- In the present time of COVID-19 in
which the organization was not being able to continue its sales due to the government introduced
lock-down. Due to which the Leon group was being able to achieve several governmental
advantages in the form of Business rates reliefs like PAYE and VATE payments. Through this
the expenditures were being reduced and company is able to invest the capital into its operations
to maintain its sustainability within the marketplace, through which the chances of goal
achievement can be increased.
Extent to which strategy is sustainable- Company tend to introduce new products to the
customers and due to which it introduced vegan eating options to the customers and was being
able to accomplish an high growth in the overall profit margin (Altarriba Bertran and et.al,
2019). This can be seen in the KPI presentation of Leon UK restaurant in which company's
performance in the 52 weeks end at 29 December 2019 was being of £74.4m which has grown
from £64.9m. With this approach it can be identified that Leon restaurant's step for integrating
innovative approach in the product placement has managed to provide high benefits to the
company.
This is an effective step, however the company has to make sure that it also provide
different variety of food options to the customers which include the services like alcohol free
cocktail and many more. By this step it can make sure that it is able to maintain the high level of
customer engagement with the organization and also at the same time customer's loyalty towards
the company is being increased.
CONCLUSION
From the above evaluation it can be concluded that organizations has to ensure that it is
able to develop a positive image in front of the customers. Through this it can make sure that it is
able to achieve a high level of customer engagement by which chances of brand switching can be

reduced. This is important for the company, but in order to identify the specific weak
organizational areas it has to identify the organizational working. Once the company is able to
identify the areas at which the actions have to be taken then on that bases appropriate set of
actions can be taken. Also at the same time company has to make sure that the employees are
able to implement the developed working improvement on the ground, through which it can
make sure that the fellowship of the strategy can be achieved. Thus once it is able to provide
high level of organizational services to the customers, then on that bases organization has to
introduce creative advertisement strategy by which it can attract new customers for increasing
sales.

REFERENCES
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