Managing International Operations and Marketing As shown in Exhibit 1, Mia Foster must make several changes both in China and in the corporate office if she wishes to successfully expand into the Chinese market, while maintaining a positive brand image and reputation.
However, if the company attempts to enter additional foreign markets, White may not have the time or expertise to manage everything. Firstly, Foster must address the reporting issues that the company is currently facing.
Specifically, what should she do about Louis Chen? I have made this proposal because Chen has noted that the standardized offerings will not meet the needs of the customers in the Chinese market.
For example, Chinese eat few dairy products, so we should downplay our cheese soup. For example, serving organic fresh food which is strength of Levendary would be valued by Chinese consumers who look for fresh food and have concerns about it or the personalized services that Levendary is well-known for and Chinese restaurants lack for.
She No explained how concerned she and White had been about Steele's report. There are difference between the Chinese culture and the American culture. By the opening of the 23rd location in a Korean expatriate-heavy suburb of Shanghai, all but one sandwich item had Levendary cafe the china challenge removed from the menu, and replaced by a variety of local dumplings.
A clear communication rules would prevent such problems.
His local knowledge and connections helped him lock in prime locations at good prices, and within a year, his initial location had grown into a chain of 23 restaurants.
Leclerc managed both the food development group and the marketing team that together determined what Levendary represented to the customer. This case, though based on real events, is fictionalized, and any resemblance to actual persons or entities is coincidental.
I don't think you guys appreciate the difficulty of managing a business in this environment. We will write a custom essay sample on Levendary Cafe: The second aspect is the barriers that exist with communication.
While some concepts had bridged these categories for years e. They have to give the needed support to have the financial reports in accordance with GAAP and to give the training if needed for the staff in China. And what changes if any would you propose at headquarters? Steele spent 10 days in China, and at a weekly executive meeting in late March, presented his findings.
Levendary headquarter should be aware of the international operations and the problem associated with and how to fit in and gain a strong position in such market. Foster was ready for this conversation. These were two opposite approaches, and Foster was not sure either model was appropriate for Levendary.
There are typically two modes of entering a foreign market. At the board's urging, management instructed its strategy team to research opportunities in China, a market that had attracted a great deal of attention among U.
Thoughts racing, she thanked Chen for his candor and expressed a desire to visit China to see in person what he had built, and also to finally meet him face- to-face.
X op Personalized service? Chen also had a network of contacts to help speed up the process of permitting, incorporating, and staffing stores. Success in the Restaurant Franchising Business In order to be successful in the restaurant franchising business, a company must follow a few key guidelines.
Customers in China are different from those in US in term of their habits and food preferences. Ultimately, Foster needs to spend more time with Chen if she hopes to align their ideas into one strategic plan. He had entrepreneurial spirit to work in the restaurant industry with no experience in this sector, and he was confident that Levendary will success in the Chinese market.
But she was also grappling with some nagging doubts about whether Chen was right person for the job. In spite of the monumental work ahead, the board was convinced that Chen was the right choice. The EVP of Administration agreed that using non-GAAP numbers from China in the financial reports was a risk, and that formalizing the reporting process was a necessary change.
The China Challenge t os we have to adapt our store design and menu.
The China Challenge t os much. However, if the company attempts to enter additional foreign markets, White may not have the time or expertise to manage everything. Discuss them in light of China and the US.
Immediately after the meeting, an irate Lucian Leclerc appeared in Foster's office. High turnover in the industry required restaurant companies to continually source and train new employees and to manage employee attrition.
Once a company enters a foreign market, it is necessary to formalize the reporting process.Levendary Cafe: the China Callenge Essay Words Mar 9th, 6 Pages Multi-unit Restaurant Business concepts are represented by units with independent operators.
Organizationally, Foster has been frustrated by the apparent unwillingness of Louis Chen, president of Levendary China, to conform to the company's planning and reporting processes.
t os REV: FEBRUARY 26, rP CHRISTOPHER A. BARTLETT ARAR HAN Levendary Café: yo The China Challenge Levendary Café was spun out from private equity ownership in Januaryand the following month, Mia Foster was named as its new CEO.
Sep 29, · Levendary Café – The China Challenge Evaluation: Chinese Market Entry After reviewing Steele’s analysis, it is appropriate to say that Levendary Café has entered the Chinese Market in an unusual way.
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Published: Mon, 5 Dec Levendary Café is a well-known, publicly traded, brand in the US and currently expanding into China. They began as a small soup, salad, and sandwich restaurant that grew into a $10 billion business.Download