Chen has no excuse for not following the GAAP in the financial reports he submitted which should be taken into consideration and corrected immediately. There is no smooth flow of the informations between departments. The structure has to be dynamic to adapt to current market, needs and expectations.
Foster who is a good communicator should make everything clear to Chen and let him Levendary cafe essay to which extent his changes are acceptable and to emphasize on the identity of Levendary and the image that they want consumers to have.
Harvard Business School, 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. Administrations have five other subject under to operate with. Even if they would know more than CEO and their decision will be more inform decision than CEO to who infotmations are being passed from the managers, who are being below, even if the information are from first hand, CEO cannot asses them properly, as each manager is being specialised in given are, therefore their decision will be more proper and could bring lots of benefits, but in autocratic system CEO make all decisions.
The biggest con of how Levendary entered the Chinese market was relying too heavily on Louis Chen. The subsidiary company should not have a different reporting style from the mother company. His familiarity with the region made him a key asset to the company as he had a clear and perfect understanding of the market dynamics and this would facilitate his strategy for identifying good areas for opportunities to expand the chain.
Chen was a very high-energy and motivated entrepreneur. Levendary has revealed poor planning and preparation for its international challenges, starting from its selection process of relying on Chen as their solely operator in an extremely complex market to the communication breakdown and a lack of support from head office.
Finally, a plane for the operation should be put and controlled. Chenalso had no experience working outside China and he had also never worked in the restaurant business industry. The cost and revenue: There is no proper communication between admin and operating officer, this is further delayed by vertical miscommunication ie.
The pro of this would be having the corporation become an integral part in the operations and providing Chen with the resources needed to expand across the Chinese market as much as it can.
Because it seems that the proper communication is missing. He also had a network of contacts who would assist him in speeding the procedures for incorporating, permitting and staffing the restaurant. But for the recognition purposes the outlook stays the same.
Foster had only worked within the hotel industry in the united state. This option is viable as it will attract a vast majority of customers like most localized cafes.
These forces and challenges in new markets are similar to those in the domestic market, except that they happen in foreign countries. Within the operations of any business, it is always a rule that the personal goals of every department arein synch with the overall goal of the entire company in order to avoid avenues for conflict and eventual failure.
Additionally, the company was devoted to evolving menu alternatives that kept the name of the Levendary cafe brand crisp in the eyes of its customers. Lavendary Cafe will have to adapt its sandwiches, soups and salads to accommodate the tastes of the chinese population to enable its sales to flow, following the examples of McDonalds and KFC.More Essay Examples on Cafe Rubric.
Focusing exclusively on financial statements is not sufficient enough when accessing a new market. Chen has seemingly been redefining Levendary’s brand image based on market needs and sensing opportunities. Levendary Café was born as a small soup, salad and sandwich restaurant.
Under the direction of former CEO Howard Leventhal, who stood behind Levendary’s vision of “delighting the customer”, the restaurant was transformed into a multi-billion dollar firm comprised of 3, cafés nationwide.
Levendary main issue is not entering Chain’s market but whether such decision is a right decision and if do so how to survive in such aggressively competitive market, to which extent the management have a detailed plan about and control over the penetration in the new market, adequate information about the culture and a proper [ ].
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. 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.
Levendary Café was spun out from private equity ownership in Januaryand the following month, Mia Foster was named as its new CEO.
The departing CEO, Howard Leventhal, was the beloved founder of the popular chain of 3, cafés.Download