There are multiple factors which lead toward organizational change in Le Chic Restaurant.

An analysis is
provided below in the context of internal and external drivers for change which explains multiple drivers
to change both internal and external.

Change Drivers – PEST Analysis

We will start change context from PEST analysis. PEST analysis is tool used for mainly external
environmental factor leading towards change. PEST analysis will help us to explain change drivers in Le
Chic Restaurant from overall strategic management point of view.

PEST Analysis of Change Context in Le Chic Restaurant

P – Political Factors

Le Chic Restaurant is affected by multiple political factors. One of the main component of political
factors is Government rules and regulations. Tare strict food quality control regulations applicable on Le
Chic Restaurant. There is always to change that Government regulation can change and have an impact
on the operations of the Le Chic Restaurant.

E – Economic

The external business environment is changing for Le Chic Restaurant. Declining macro-economic
environment always negatively impact business and Le Chic Restaurant is no exception. It is essential for
the company to change the way they are doing business for the past many years.

S – Social

Restaurant business like all businesses is directly linked with consumer needs and wants. Consumer
preferences change with the period of time. In case of Le Chic Restaurant customers have to wait for
long to get their food. This is leading for toward dissatisfaction. Currently Le Chic Restaurant is not doing
any activity related to community which is recommended to be done for better change.

T – Technology

Technology has changed business environment for the past few decades. Currently Le Chic Restaurant is
focusing on traditional order taking system which is required to be changed. Orders are getting delayed
and order information is not communicated to kitchen on time.

Change Drives – SWOT Analysis

One of the most widely used framework for overall environment analysis is SWOT analysis. This
framework will elaborate change context in terms of internal and external drivers.

Strengths – Internal Factors

Le Chic Restaurant is located in a major city on busy street. For any type of food related business
location is of prime importance. Due to steady flow of customers, Le Chic Restaurant is famous in that
area. The organization can capitalize on this strength further as well.

Weaknesses – Internal Factors

It seems like current staff of Le Chic Restaurant is not synched with existing business operations. This is
ultimately resulting in delayed order, bad reputation and dissatisfaction of customers. Profit margins are
also squeezing highlighting financial distress ahead.

Opportunities – External Factors

There is always to growing demand among customers for good, fresh and tasty food. Le Chic Restaurant
can exploit this factor to further enhance their competitive advantage. A standard menu is easy to copy
for competitors. There is good opportunity to change menu to restrict competition.

Threats – External Factors

Competition is increasing for Le Chic Restaurant with the opening for many bars and alternate food
outlets. Lack of differentiation in food items offered by Le Chic Restaurant and its competitors will
further erode profit margin thus creating need for change.