Analyzing Competitive Advantage in Leon’s Restaurants: A Strategic Assessment

Learning Outcomes

1.Understand the impact of current and emerging trends on organisations. 

2.Demonstrate the ability to effectively analyse problems and issues employing a range of appropriate concepts, theories and approaches. 

3.Apply the tools and techniques of strategic and operations analysis. 

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.

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.  

Prepare a report of 2000 words that:

1.Critically evaluates the environment of the industry in which Leon operates.

2.Critically evaluates the strategy and operation of the organisation against its vision and industry success factors

3.Identifies a range of relevant emerging issues and explores their potential impact at different points within the company’s value chain. 

4.Identifies areas of potential vulnerability facing Leon Restaurants

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:

oA brief overview of Leon’s Restaurant including their vision.

2.An explanation of the purpose of the report.

3.An overview of the structure.

4.Explanation of potentially ambiguous terms.

1.Conduct a PEST(LE). 

2.Review emerging megatrends and identify 

those that apply to the restaurant trade

3.Determine the strength of Porter’s 5 forces.

4.Summarise the industry environment

a.Identify what it takes to succeed in the industry.

b.Identify how the industry’s environment is likely 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.

Using the information in the resources below:

1.identify the resources of the organisation.

2.Identify the capabilities of the organisation

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.