This sample will let you know about:
- Discuss about the PEST Analysis.
- Discuss about the Porter's Five Force Analysis.
INTRODUCTION
Business organisations are evolving in the complex environment and management strategy, operations and partnership in business needs to be managed effectively in order to achieve business operations. To understand the concept of management strategy and operations Leon Restaurant is considered in this project report. It is a private organisation founded in the year 2004 by John Vincent, Henry Dimbleby and Allegra McEvedy. The organisation is serving food which is organically prepared for consumers who prefer healthy and quality food (Adner, 2017). Headquarter of the organisation is situated in London, United Kingdom and business is expanded at international level. The project report consist of evaluation of industry environment, strategy and operation of the business against vision and industry success factors. Emerging issues and their impact in the industry with potential vulnerability faced by Leon restaurant.
Critical evaluation of the environment of the industry in which the Leon’s Restaurant operates
PEST Analysis
Evaluation of the business environment and impact of the various external factors that affects business operations in Restaurant industry needs to be analysed though PEST analysis. In relation of Leon's Restaurant is defined as follows-
Political: Health policies that are introduced in political context are adding healthier food options on the menu of various restaurants. Health menu choice act now making it compulsory for operators of fast food industry to post number of calories for food and drinks. This political change will have a impact on sales of Leon's Restaurant (Al-Tabbaa, Leach and Khan, 2019).
Economic: State of the economy in which business is operated affects business of restaurants like Leon serving healthy foods. As healthy food is served with higher price and negative economic condition will influence the organisation.
Social: Trends in the food industry keeps on changing as per taste and preference of the targeted consumer group. As Leon's re is serving food which is health and social environment in UK, USA, Spain and other countries when demands healthy food. Then a positive impact will be created on the business.
Technological: Introduction of technology helps in preparing food which is much heather and matches with set food levels. Leon's technological system helps the organisation in serving well and earn competitive advantage. Order assignment help from our experts!
Mega Trends
In the recent times mega trends that are emerging and having a grate influence on the restaurant trade of Leon's restaurants is defined as follows-
Food as medicine: A clear and fair relationship exists health, ageing and diet (Ayers and Odegaard, 2017). A mega trend which is recorded in the century is that food which is tasty and secures good health at the same time is preferred over others. As government of different nations are showing their concern to serve food which minimises changes of diseases like obesity and diabetes.
Meet reduction if more: As consumers all over the nation have desire to live healthier and in order to become more sustainable lives meet reduction is supported. As per the statical data available consumers in the industry are transforming towards vegan diets as in the year 2014 only 0.8% of the population in Britain were Vegan but now the rate has reached to 3%.
Porter's Five Force Analysis
Restaurant industry is highly competitive and in order to analysis level of competition in the industry Porter's Five Force Analysis is conducted. Through this power available with business and its competitive organisation is available (Brekalo and Albers, 2016). In relation of Leon's Restaurant it is defined as follows-
Threat of new arrival: Leon's restaurant is operating in one of the competitive industry as per recent research. Number of new arrivals in the industry is high and some of them are available with innovative ideas and tenured out to be a competition for the business.
Bargaining power of buyers: Goods offered by the Leon's restaurant is rich in minerals and nutrients. As still there is effective bargaining power of buyers exists as there are number of demands and they are hard to please.
Bargaining power of suppliers: Their are number of suppliers available to the restaurant in order to serve restaurant with all the required services and goods. Suppliers of Leon's restaurant possess good bargaining power as this shift can leads to generation of negative effect on business operations.
Threat of substitute products: Leon's restaurant is serving goods which are healthy and move an individual towards heather and safe life style. Availability of substitute goods are less in the industry and this termed to an an strength of the business (Burke and Demirag, 2019).
Competitive rivalry: In the recent times there are number of competitive business organisations has emerged. Leon's restaurant is old and possess good market image so this turned out as a advantage for the business organisation.
Industry Environment
- In order to become successful in restaurant industry goods and services must be served as per recent trends and they must match with taste and preference of target consumer group.
- The future of restaurant industry will change and individuals will start taking their food as a medicine i.e. food which is heather will be preferred over others.
- Reduction in the consumption of meet will be their in food because it minimise chances of some diseases that exists in animals.
Strategic Resourcing and Talent Management
Critical evaluation of the strategy of Leon’s Restaurant
Resources of the organisation
Resources in a organisation can be available in terms of finances and non-finances. Evaluation of all the available resources made for the Leon's restaurant helps in accessing effectiveness of the resources (Clarke and MacDonald, 2019). As the organisation is making growth in sales for more then 10 percent which indicates that all the resources are employed in most efficient manner. Finances are arranged in more settled manner and human resource employed is suitable as per their job description. As Leon's restaurant is based on healthy and quality food concept then availability of raw material must be made which is organic and ensure good taste. When all these resources employed in the business to generate positive results based on planning then competitive advantages is maintained by the businesses.
Capabilities of the organisation
Capabilities of the organisation will be accessed on the basis that goods provided by Leon's restaurant can be substituted with other products or not. As the organisation was established in the year 2004 and make all possible efforts to adopt changing environment and compete effectively. Expansion of business at international level make it one of the well recognised organisation serving one of the best quality food products which are healthy and tasty at the same time. It become one of the well known brand at global level and its value chain make it more capable for serving large number of consumers (Keers and van Fenema, 2018). Need Assignment Samples?Talk to our Experts!
Evaluation of resources and capabilities (VIRN)
It stands for Valuable, Identifiable, Rare and Non-substitutable. Jay Barney an American professor in the year 1991 provided complete framework. Explanation of VRIN model for Leon's restaurant is mentioned as follows-
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Leon restaurant organizational resources & capabilities |
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Uniqueness of food products based on their personal recipes |
✔ |
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Effective and efficient human resources |
✔ |
✔ |
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Efficient food production system based for cost efficiency and low price |
✔ |
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New technological improvement for efficient order placing |
✔ |
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Leon's restaurant sustained competitive advantages/core competencies: |
V |
R |
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Globally recognised as a brand name |
✔ |
✔ |
✔ |
✔ |
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Portfolio that attracts consumers |
✔ |
✔ |
✔ |
✔ |
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All the details that are identified as per this model helps to ensure that strategic management and planning based on such information will generate positive results for business. All the resources and qualities available with Leon's restaurant generate a capability which supports long term success to the business (Sadovnikova and Pujari, 2017). All the resources helps in creating and maintaining good brand image of the business at national and international market and ensures that restaurant is operating with highest efficiency and generating more and more amount of targeted profits.
Compare sustainable resources and capabilities with the industry success factors as per Mega-trends
Mega-trends in the food industry is recorded for considering food as a medicine. Serving quality food which is rich in all the vitamin and minerals is a long term step to generate sustainability in business operations. Leon's restaurant is offering goods and services which is comparable with the changing requirement of the consumers in the industry. Goods served by the organisation helps in providing a separate brand image form its competitors. Business organisations when adopt mega-tends then sustainability is achieved to run business in most profitable manner (Stafford and Taylor, 2016).
Critical evaluation of the operation of Leon’s Restaurant
Operation of Leon Restaurant
Business when operated as a restaurant then number of services to effectively complete activities are performed. These operations are conducted so that level of satisfaction that consumers are gaining form these services can be improved. In this relation some specific services that Leon's Restaurant is providing is as follows-
- Serving variety of food: As Leon organisation operates in restaurant industry and prepares health food then services for providing variety of food products are operated on daily basis. Variety of food as per taste and preference of consumers helps in generating competitive advantage to the business.
- Delivery services: The organisation is providing facility to consumers to make delivery of food product at their door step (Walters and Helman, 2020). This facility attracts more and more consumers and make business more competitive then others in the industry.
Vision of Leon Restaurant
Foundation of Leon's restaurant was made with one of the vision which says that all the initiative will be taken to make it easy for everyone to eat good food. In order to achieve this vision fast food services are provided by the organisation. Food served by the restaurant is made with organic raw material which is rich in minerals and ensures good quality with health to consumers. To accomplish this vision expansion of business is made at national and international level so that each individual have access to healthy food.
Critically assess the extent to which the operation supports the delivery of the vision
Operations of the business organisation performed by Leon's restaurant supports to accomplish the vision as it facilitates through serving good quality of food. Level of competition and various emerging trends in the business operations are analysed so that serving various quality services are enjoyed for generating brand image. Operations are performed in order to ensure that business activities will contribute towards achieving objective of providing easy accesses to healthy and quality food.
Evaluation for sustainability of business operations
Leon's restaurant operations are sustainable as goods and services provided by the organisation is based on the recent trends which is recorded in the restaurant industry. Emerging taste and preference of consumers are considered so that all the requirements recorded to compete in the business environment is met effectively (Wassmer, Pain and Paquin, 2017). It is determined that entire services and activities of Leon’s are appropriate and suitable for the visitors as these are designed and developed with superior quality and provides maximum satisfaction. It is also evaluated that almost every function of restaurant is valid and suited to the market standards which help in constant increase for the Leon's in the future time period. It is obvious that when a respective restaurant provide the best quality services and most suitable consumer good which support in fulfilling the need then overall popularity and profitability and most importantly desired sustainability can also be attained. Ask for Coursework Help from our experts!!
CONCLUSION
In the end of the report, it is concluded that there is a necessary need for knowing the external market situation that can be supportive for a company in running business in specified pathway that can contribute to overall growth and development. As hotel sector is wide thus there more involvement of government in the context of quality food, make use of standardise raw material to prepare food, etc. in conclusion, it is also stated that Porter five force analysis help to define that there is higher risk because of tough competition and bargaining power of customer. Thus Leon’s Restaurant, must consider both factors which help in gaining the competitive advantage and reach the desired outcome. By using VRIN model, capabilities and resources of a company be assessed which help manager to make better policies and strategies to maximise the income level.
Read more - Management and Operational Process
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Notes or findings |
Citation |
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PEST analysis of Leon's restaurant to access industries environment for business operations. Political: Government of UK and other nations are concerned with introducing some healthy food habits to society as a whole. In this relation government has introduced several food standards so that health can be maintained and set as a priority. Political climate affects employees in the industry as providing minimum wages become compulsory as per government regulations. Required nutrition become one of the political concern and policies which leads to introduction of healthy food is introduced to the nation as a whole. |
(PESTLE Analysis of the Food Industry, 2019. ) |
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Economic: Number of economic factors have a positive and negative influence over restaurant businesses. Economic factors like pay scale, living standards and rate of unemployment influence societies step towards adaptation of heather life style. All these issues can be resolved in the industry by a step which ensures minimum wages to all. This will make access of each individual towards healthy life. |
(PESTLE Analysis of the Food Industry, 2019. ) |
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Social: Awareness that society possess towards healthy life is increasing at the global level and contribution of various influencing personalities is high in this relation. Society as a whole is shifting towards consumption of food which keeps health as primary concern rather then taste. This social trends influence various restaurants to serve food to large number of consugarima.goyalmer group who prefers quality and healthy food which is rich in taste as well. The data available for whole nation specifies that food habits of garima.goyalindividual for consuming unhealthy products is decreasing in each age. |
(Nation's Diet, 2018) |
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Technological: Technology in the industry has turned out to be the biggest change and made delivery of services easy and quick. Installation of computers to take orders and prepare bills generate good amount of accuracy and reliance of consumers on restaurants increases. New machines are used for preparing various goods that are offered so that level of minerals and fibres can be maintained in the food without any form of contamination. Technological improvement in the industry needs to be adopted by restaurants so that external thread at national and international level for technology can be minimised. For example- online booking and rating a restaurant services and food make this sector advanced. |
(Transformation of Restaurant Industry with Technology, 2019) |
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Porter's analysis is made by Leon's restaurant is to analyse level of competition available in the industry. Their are five different factors that are available in this analysis and each factors clarifies how all the organisations serving in the same industry is affecting the business. Factors of Porter analysis is defined as follows-
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(Porter's Five Forces of Restaurant Industry, 2019) |
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Threat of new arrival: In the recent trends of restaurant industry it is recorded that number of new entry in the sector is quite high. As restaurant industry is quite wide and have a huge scope of serving large number of consumers belongs to different age group and having separate taste and preference. Government policies and regulations applicable on the food and safety industry made it little difficult to entry in this sector and instead of this ratio of new arrivals is high. |
(Porter's Five Forces of Restaurant Industry, 2019) |
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Bargaining power of buyers: Buyers possess more power of bargaining when number of suppliers are high in the industry. Restaurant industry is one of the finest example where massive bargaining power lies in the hands of the consumers. This can be seen as Leon's restaurant stop using certain type of meet because it was expansive to use such material and charging high price was shifting consumers towards other businesses. High pricing will limit consumers and market share of business will decline. Availability of number of options made it simple to change preference of consumers. |
(Porter's Five Forces of Restaurant Industry, 2019) |
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Bargaining power of suppliers: Raw material requirements in the restaurant industry are met with number of suppliers. Instead of availability of number of suppliers bargaining power is high because availability of quality raw material to Leon's restaurant is maintained by limited number of suppliers. Situation of high bargaining power of suppliers are modified by the restaurant by providing bulk orders so that cost of ordering is maintained and quantity discount can be enjoyed. |
(Porter's Five Forces of Restaurant Industry, 2019) |
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Threat of substitute products: Food choices of consumers in the industry are shifting towards organic and healthy food. Leon's restaurant is serving food which is healthy and possess good quality. Despite of serving consumers with good food it is quite easy and frequent to make shift in food products. Consumers always seek for new experience and availability of various substitute goods serves as a threat for Leon's r |
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