leon's Irfan.docx - Leon’s Strategy and Operations Analysis Contents 1 Introduction 2 2 External Analysis of Industry 2 2.1 3 4 PEST 2 2.1.1 Political

leon's Irfan.docx - Leon’s Strategy and Operations...

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Leon’s Strategy and Operations Analysis Contents 1. Introduction 2 2. External Analysis of Industry 2 2.1. PEST 2 2.1.1. Political 2 2.1.2. Economic 3 2.1.3. Social 3 2.1.4. Technological 3 2.2. Emerging Megatrends 4 2.3. Porter’s 5 Forces Strengths 5 2.4. Industry Summary 6 3. Evaluation of Leon’s Strategy 6 3.1. Resources and Capabilities 6 3.2. VRIN Analysis 7 3.3. Industry Comparison 8 4. Evaluation of Leon’s Operations 8 4.1. Operationality 8 4.2. Operations Sustainability 9 5. Conclusion 9 6. References 10 7 Appendices 12 #1: GDP analysis for the United Kingdom 12 #2: Analysis of Leon Restaurant 12
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1. Introduction Leon Restaurants initiated in 2004 as a part of Leon Foundation. The UK-based foundation aimed at providing a healthier alternative to the conventional fast food which is high in sodium and cholesterol and caused obesity. Leon aimed to promote the idea of fast food, but with healthier items on the menu, making fast food more “exciting”. Alongside the standard British food items, Leon offers Mediterranean and other international fast food items which are not only healthy, but also introduce new flavours to the masses. 15 years after the beginning, Leon has spread beyond UK and is not stepping into global market. This study will ascertain various external trends and recent practices pertaining the global fast food industry, while critically analysing the strategy and operationality of Leon restaurants in details, highlighting key points of differentiation and disadvantages. 2. External Analysis of Industry 2.1. PEST PEST analysis is the external analysis pertaining to an industry on four aspects which are Political, Economic, Social, and Technological (Sammut-Bonnici & Galea, 2015). 2.1.1. Political Brexit is currently the biggest political issue for fast food industry (Colantone & Stanig, 2018). Britain’s exit from the EU can make European fast food companies lesser competitive in the UK, while UK’s fast food companies will find it more expensive to enter the European markets due to new regulations.
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2.1.2. Economic Figure 1: GDP Growth The economic conditions of the UK have destabilised due to Brexit, with growth rate currently at 1.4 percent. European Union’s GDP growth rate has been stable at around 2 percent for the past 3-4 years. Meanwhile, USA’s economy is progressing at 2.8 percent per annum. However, the pace of economic progress is forecasted to slow down from 2021 onwards (Gilpin, 2018). 2.1.3. Social Due to a concern relating to environment, a lot of people are switching towards veganism due to planet’s lack of capacity to produce excess meat, which is not only resource stressing but also environment unfriendly (Wang et al., 2018). 2.1.4. Technological Due to technological progress, meat and vegetables especially halal foods, can be easily imported from any part of the world, hence reducing costs, providing all-year availability, and reducing bargaining power of suppliers.
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2.2. Emerging Megatrends Figure 2: Emissions per tonne of proteins Veganism has become an emerging global trend lately. Hundreds of thousands of people every
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  • Fall '16
  • jame

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