ROYAL DOCKS SCHOOL OF BUSINESS AND LAW
MANAGING STRATEGY, OPERATIONS AND PARTNERSHIPS SG7001
Room Number: CW.3.21
Updated August 2019
Assessment 1: Individual Report
Learning outcomes evidenced by this assessment:
In this assessment you are to analyse the factors contributing to competitive advantage in Leon’s Restaurants. You should concentrate on demonstrating your ability to use the tools and techniques taught during the first part of the term. Most of the data you will require can be found on the organisation’s web pages, and you are guided towards any further research requirements. Do note the final Learning outcome being assessed. The word count is tight.
You will need to retrieve this assignment if any of the following occur during the semester:
You fail to achieve a weighted average of 50% for this module or You fail to achieve 40% or more for one of its components.
You are offered a second attempt when you should only retrieve the assessments for which you have achieved less than 50%
To re-sit your Individual Report you should:
Re-work the stages outlined in the assignment brief but accommodate the following scenario.
A foreign chain of restaurants has started operating close to the outlets of Leon Restaurants, offering similar healthy food, but undercutting prices.
Motorway café’s are getting a bad reputation for serving low quality food.
Your work will be used using the same rubric as that used within the term.
Important note: Just improving your original submission will not be sufficient. You must accommodate the above to achieve a pass grade.
Leon’s Restaurants are fast food outlets designed to meet the desires of a health-conscious clientele as well as establishing a reputation for sustainable practice.
Individually: Prepare a report of 2000 words that:
Details of the task.
You should take this task in steps. You are being asked to show that you can use the tools and techniques to assist with an analysis. Take the following steps one at a time. The word counts for each section should be taken as a guide and are not monitored. However, the total word count should not exceed 2000 words ±10%. If the lecturer marking your work considers the word count is too high, it will be checked, and marking will stop at the word count.
1.Provide the necessary background:
Critical evaluation of the environment of the industry in which the Leon’s
Restaurant operates600 words
to change in the future given the influence of the megatrends you identified
The most frequent error made in this stage is to assess the organisation’s environment, not that of the industry
You will have to conduct the research for this section. When doing so you will probably find PEST and/or Porters Forces analysis that have already been undertaken. However, we want you to conduct your own and the full version of both, complete with citations should be in the appendix. This should be presented in a table with your notes or findings in the left column, supported by a citation in the right hand. The word count of the left-hand column should not exceed 1000 words. If the citations prove to be inappropriate, a mark of 0 will be given for this section of your work. Only summarise key points in your report.
|Critical evaluation of the strategy of Leon’s Restaurant.||600 words|
|Using the information in the resources below:|
|1.||identify the resources of the organisation.|
|2.||Identify the capabilities of the organisation||Week 3a|
|3.||Evaluate the resources and capabilities (VRIN).|
|4.||Compare sustainable resources and capabilities|
|with the industry success factors developed above|
including consideration of the impact of megatrends
The most frequent error made in this stage is to describe rather than evaluate, and to omit stage 4.
Critical evaluation of the operation of Leon’s Restaurant.500 words
In the above section you would have identified what Leon’s Restaurant do. In this section you would investigate how they do it. Return to the value chain and identify the elements that fall under their direct control.
1.Using the information that you gather from the resources below briefly describe the operation of Leon Restaurant.
2.Refer briefly to the vision of Leon Restaurant.
3.Critically assess the extent to which the operation supports the delivery of the vision.
4.Evaluate the extent to which the operation is sustainable
The challenge: keep the description to just enough to support the analysis
The purpose of the conclusion is to provide a very brief overview of the main body of your work and answer the question underlying the purpose of the report.
It should not:
You have been asked to produce a business report. These are not referenced in the same way as academic work. You should not reference any material that is from any of the above resources, or in your appendix. Additional references should be in the form of footnotes.
Structure and presentation
To complete your submission, you should add the final elements to produce the following:
Cover sheet (in the assessment area in Moodle)
Title page containing a title for your work and your student number.
Executive summary. (No more than 100 words)
Contents page structured in the same way as in this handbook.
Main body using the headings in bold in the detail section.
Word count from the end of the contents to the end of the conclusion.
MANAGING STRATEGY, OPERATIONS AND PARTNERSHIPS SG7001
The primary objective of the report is highlighting the various factors providing a competitive edge to the Leon restaurant in the competitive market. The restaurant had its origination in the year 2004 at the UK by John Vincent, Allegra McEvedy and Henry Dimbleby. On an early note. Leon restaurant has its locations at the Carnaby Streets, however, after getting consumer acceptance the company opened 60 outlets across the globe. For addressing the consumer interest more specifically, the company aims at preparing green menu comprising of seasonal vegetables comprising of more seasonal vegetables as the main motto of the company is to produce sustainable foods having a less environmental impact. In this context, a foreign chain of restaurant, Motorway café has opened their outlet nearby to the restaurant, serving similar food products. However, since they are undercutting the prices, the food quality is automatically getting hampered, thus affecting brand identity. In this context, the study would critically evaluate the success factors of Leon restaurant and conduct an in-depth analysis of Motorway café for addressing their issues in the competitive market.
The assignment will take active participation in evaluating the environmental factors and its impact on the business operation of the Leon restaurant. The assignment would seek a deep insight towards the rising trends of the hospitality sectors for determining areas of futuristic scope. The strategic approach of the company will be evaluated by addressing the resource, capabilities and competency of the firm over its rival brands. The operational management of the company will also be discussed critically for determining the reason for competitive success.
The conduction of Pestle Analysis would be detaining the external factors influencing the business operations of the Leon restaurant. Please check Appendix1 evaluating Pestle analysis.
While referring to the analysis, it can be stated that the negotiation aspects associated with BREXIT are affecting the political and financial stabilisation of the organisation. Increased rate of inflation is, however, beneficial for the success of the restaurant. Owing to the slower rising of the rates of income, the overall disposable income of the consumers has become automatically low, thus becoming choosier about purchasing products. In this context, it could be stated that Motorway café will be struggling a lot as their product quality is low, and consumers will not at all be interested in spending on purchasing their food items, which is not the case with Leon restaurant. However, the preferences of the consumers are changing and they are preferring nutritious and healthy food products like that of Leon restaurant. Furthermore, the up-gradation of technological advancement will be attracting tech-savvy consumers. Additionally, both Motorway café and Leon restaurant should be complying with the regulations associated with Waste Disposal for maintaining environmental sustainability.
Over the years, the restaurant industry is expanding at an alarming rate. In this context, it can be stated that trends of online ordering have increased rapidly, which is working in tandem with a physical visit to restaurants by the consumers. Therefore, both the restaurants need to focus on managing their online presence for attracting consumers. There is an estimation that the restaurants are accounting nearly $32 and $13 billion respectively from the presence of third-party services. Hosting off the beat type of experiences has been in demand over the years, where exclusive menu list is on offer. Owing to the advancement of medical facilities and treatment methods available, the consumers are willing to visit the restaurant more often.
In this context, the restaurant has to take active participation in considering the menu for both the young and old age population. Another aspect why consumers are preferring healthy products is that instances of fatty liver, digestion problems, diabetes and high cholesterol have enhanced at an alarming rate. Owing to the rapid occurrence of Diabetes in the UK market, the government is keen on considering reduced-sugar products. The restaurants have already started reformulating their menu owing to the high imposition of taxes on excess inclusion of sugar in foods.
Please check Appendix 2 for analysis of Porter’s Five Forces
From the analysis of Porter's five forces, it can be assumed that threats coming from the news companies are considerably high, which is increasing the buyer power of the consumers. Contrastingly, the bargaining power of the suppliers is considerably low for both restaurants. In the case of Motorway café, the threat of substitute is considerably high owing to poor maintenance of quality in their products. In the case of Leon restaurant threat of substitution is minimal, however, the company will be facing rivalry from existing brands. In this context, both the companies should innovate their product and services as per the altering consumer preferences accordingly. The aspect of Market Skimming will help Leon restaurant to maintain competitive upper hand and Motorway Café can also follow the footsteps of their successful rivals for overcoming the productivity woes.
The restaurant industry is expanding at an alarming rate. Individuals often purchase fast foods owing to variable working hours, erratic lifestyle, attending parties for spending leisure times and appetite for tasting different types of foods. In this process, the companies are continuously innovating their products and services for addressing the anticipated expectations of the consumers. While the UK is facing economic crunch and political instability, the restaurant visiting consumers have enhanced over the years. The consumers are more conscious about their health and therefore, organic and nutritious food products are given first priority. While Leon restaurant has addressed the industry needs successfully, Motorway café has received criticism for selling low foods, irrespective of promising to sell healthy products.
In regards to the hospitality sector, the megatrends suggest that organic food products are adding to the health quotient of the consumers. Due to rising health concerns in individuals, a healthy food service assists in keeping an individual fit as well as relieve the taste buds. With the production of tasty and nutritious products, consumers of all ages are getting attracted to either order online or visiting restaurants at regular intervals. Owing to the rising demand for online ordering due to discounts available, the restaurant industry has experienced a significant leap in enhancing the overall economic productivity. However, reviews are also important in online ordering and due to poor product quality, negative reviews are affecting the brand image of Motorway café, whereas reviews are working in positive favour of the Leon restaurant.
3.1 Organisational resources
The organisational resources comprise of tangible and non-tangible resources which are illustrated below:
Resources which are tangible by nature are subjected to the physical acquisitions from the organisational perspectives, starting from the property handling, revenue earning and usage of machiner. The tangible resources utilised in both the restaurants comprise of the furniture, crockeries and decors used for infrastructure, funding and raw materials needed for the preparation of foods. Additionally, in the case of Leon, the company has its own vegetable production for maintaining the quality of its food products. Leon restaurant generates revenues approximately at the rate of $30M and the company has 167 employees in total with its headquarters situated in the city of London, UK.
The brand image, credibility aspects, public image, patents and employee excellence are regarded as some of the aspects of intangible resources. Since Leon restaurant has its own vegetable and plant production, it monitors food quality strictly, therefore, earning goodwill and trust amongst the consumers. In contrast, instead of undercutting prices, low product quality of Motorway Café is affecting the brand image and its credibility is being questioned.
Organisational capability refers to the ability of an individual to get competitive supremacy over its rivals. The Leon restaurant takes active participation in promoting a healthy working culture giving equal opportunities to all. Wing Tsun and fitness centre has been created for the welfare of the employees. The company takes the initiative of using reusable products for attaining environmental sustainability. Due to the confidence, the consumer has in its food products, the company has been able to generate a positive image in the organisational context. Furthermore, the company has expanded its outlets in the global market, which is not the case with Motorway Café. The company is struggling in the domestic market itself, so it needs to improve its product quality for expanding into the international market in future.
|Brand identity||Leon restaurant has a positive brand image due to its proactive working culture and service excellence||The particular aspect is not rare as any eminent company emphasizes a productive work culture and strong service quality||The specific aspect is imitable by nature es effective customer service and training of the employees for attaining success is the primary motive of any company within the hospitality sector,||The brand identity of the company cannot be substituted because it has a global presence and consumers trust the brand|
|Healthy and organic food production||It is a critical success factor aspect as consumers always prefer healthy as well as tasty foods offered by Leon restaurant.||It is a rare combination because not only the company takes active participation in producing healthy fast food, but it also has its own vegetable and plant production, probing for environmental sustainability||The specific aspect is difficult to imitate as companies selling health products rarely have their own raw material production unit||The healthy production of foods from perspective of Leon is happening for quite some time and therefore, it's difficult to substitute, as this is one of the most effective ways of producing organic and healthy food products.|
One of the key aspects is that Leon restaurant has been successful in improvising its presence along with current market trends, which is not the case with Motorway café. The product quality of Motorway Café is Questionable, whereas Leon has its own production without any involvement of artificial preservatives and pesticides. The trend of purchasing eating foods in the form of medicine is a trend which aligns with the healthy production of foods. Another interesting perspective is that, due to the busy lifestyle, customers have to consume fast foods, however, if the offerings are healthy it will automatically lure consumers.
The operational management is very much keen on the Leon restaurant. For maintaining high-quality product offerings, certain raw materials are being produced within the organisation itself. While some of the raw materials are taken from the suppliers, consistent standardisations are met so that the overall quality is not hampered. The quality analyst ensures all ingredients of food and utensils are washed cleanly before delivering it to the final consumers. The packaging of products is also done with proper care. However, in the case of Motorway Café, quality management is lenient and more priority is given on undercutting pricing, rather maintaining food quality and hygiene.
While aligning with the company vision, it can be estimated that many companies are successful in providing tasty foods at cost-effective rates, however, it lacks healthy quotient. Some companies like Motorway Café compromise with its product quality while undercutting prices. However, Leon restaurant takes active participation in producing healthy as well as tasty food products.
While probing for the company vision, it can be stated that the company looks for serving fresh vegetables and high-quality meat. The framing of the fishes is hand made and the company emphasizes on preparing plant vase dishes. The pork used has its certification from the RSCPA, thus ensuring premium quality. Regular visits are initiated at chicken farms for checking the health status of chicken, thus ensuring food products are not hampered. As far as the Motorway café is concerned, the company sells typical fast foods at cheap rates, which are not enjoyed by all section of consumers. The primary motive is profit generation, which is getting hampered owing to rising consumer complaints.
The operational management of Leon restaurant is triggered by Green energy which comprises of Hydro, solar, wind and anaerobic digestions. Reusable products and less plastic usage allow the company to attain environmental sustainability. Depending on the weather forecasting, the company probes for preparing fresh foods.
While summarising, it can be estimated that Leon Restaurant gains competitive supremacy as it has consumer faith on their side due to healthy food offerings. However, Motorway café has received criticisms for offering low quality and less hygienic food products due to undercutting of price. Irrespective of having own vegetable production, quality analyst and strong brand identity, the company is facing few constraints due to poor financial and political scenario of UK. However, owing to its competency and global presence, Lean restaurants can outperform its competitors in the competitive market.