Levendary Cafe Case Essay
1. What is your evaluation of the way Levendary Cafe has entered the China market? What is the main issue here?
The main issue in this case is not the entry strategy of Levendary Cafe into China but a communication breakdown between Louis Chen, the China CEO and the US head office due the following factors:
Management Styles: CEO Leventhal was very hands off with Chen, and allowed Chen to have full control over the operations and strategy for China. This differs from Foster’s management style, which is more process driven and valued standardization.
Culture Differences: The various cultural differences between the two cultures is not being understood by the headquarter, who insists on enforcing its own rules and policies regardless of the local preferences.
Limited Experience: China is only the second international market that Levendary Cafe has entered besides a partnership in Dubai. Thus, there is limited experience with operating in a completely unfamiliar environment. Thus, CEO Leventhal relied fully on the expertise of Chen to execute the necessary actions in order to make the franchaise successful in China. In addition, Foster does not have any international experience and is not familiar with the China market. Her lack of local market knowledge will hinder her credibility with Chen and his response to her demands.
Levendary Cafe entered the Chinese market with on shop in a central location. This was crucial in its success and proved that Chen had great business insights on the local market. He then was able to utilize this case as both leverage to continue expanding into China we well as gaining credibility from headquarter.
2. What changes (if any) should Mia Foster make? Specifically, what should she do about Louis Chen? And what changes (if any) would you propose at headquarters?
Foster should proceed with caution so that she doesn’t make any drastic changes to the current way of operations in China. She needs to emphasize to the market as well as Wall Street that Levendary Cafe takes its culinary due diligence seriously and that it has a sustainable growth strategy in China. Increasingly, American chains have thrown away cookie-cutter-style menus in favor of culinary localization, a flexible strategy that makes room for ingredients and dishes that reflect local tastes, culture and religious requirements.
Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more