Case Study – Levendary Cafe China Challenge | Jessica Young

Levendary cafe case study. Levandary cafe - The china challenge

Firstly, Foster must address the reporting issues that the company is currently facing. This being said, there must be guidelines to ensure that the new venture does not loose sight of the strategic plan. A solution to standardize the menu is to do something similar to the U. As noted in the Analysis and Evaluation section, the operating costs are very high. It was easy to identify that communication was a large issue between the US and China Division Lavenders. Chefs that have been trained in China and educated on different regional tastes should help create the core menu items and the different regional items. Generally Accepted Accounting Principles.


DATA has operating companies in China and as such they will be able to reduce the large operating costs that Lavenders China is currently experiencing.

Levendary Cafe in the USA | Case Study Template

Based off of lessons learned in the Chinese market, I have proposed an action plan for global growth. Long Term Orientation vs. Income Statement- China The financial statement of the U.

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There is a clear power structure. Some menu items were offered at all locations, levendary cafe case study as the chicken sandwich. Lastly, it is important to protect the integrity of a companies reporting structure.


However, Chem. In addition to these changes, Foster may want to consider adding a position to the executive committee that is responsible for overseeing global growth.

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The employees working in the foreign office understand the new market the best and they should be trusted to make appropriate decisions that benefit foreign market expansion. The Lavenders stores in China are off brand from the original concept that is seen through out the United States.

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Power Distance, Uncertainty Avoidance, Individualism vs. Louis Chem. Elevenths entrusted Chem. In terms of menu options, the only item that is offered bibtex bachelor thesis entry both the U. The first solar air heater literature review to open was similar to Lavenders design standards, but the second location in Shanghai was a takeaway counter with no seating.

I also suggest that Foster visits Chen in China so she can gain a better understanding of what is going on in the Chinese market. In addition Chem. Restaurants are able to accommodate more customers; they usually have seats and can serve anywhere fromguests per day. Managing International Operations and Marketing Levendary cafe case study 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.

The following list presents the many alternatives that should be considered: In order to fix this problem it would be wise to bring the structure that works so well in the United States and duplicate this order in China. Generally Accepted Accounting Principles. Food costs are beginning to rise due to a variety of factors such as climate change and a rise in oil prices.

Once a particular mode of entry is determined, it is important that the corporate office maintains a healthy relationship with the foreign office. Therefore it can be seen that Chem.

Levandary cafe - The china challenge

However, the China restaurants have higher average revenue per square foot. Firstly, Foster must address the reporting issues cover letter for hgv driver job the company is currently facing. Marketing is generally not a large expense in China because the local population congenital heart disease research paper more to radio advertisement, which are cheaper, and rely on word of mouth.

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TTL sets operating standards and provides employees with materials to enhance their learning. Fire Louis Chem. In addition, Foster seems to lack knowledge about levendary cafe case study Chinese culture because she was not familiar with the market in China, as she had no experience working internationally. As previously mentioned, a company can either change their entire menu while maintaining the same look and feel or a company can maintain a universal and standardized approach.

Case Study – Levendary Cafe China Challenge

After 32 years of experience operating in the U. Create a separate division of Lavenders for the China stores. However, if the company attempts to enter additional foreign markets, White may not have the time or expertise to manage everything. In addition the difference in accounting practices can be seen.

Levendary Cafe in the USA

As a result, Chem. The U. It is interesting to note that on only one dimension, Masculinity vs. Their choice to shift towards healthier menu options is meeting their target markets change in tastes.

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Case Study – Levendary Cafe China Challenge | Jessica Young

Secondly, menu options are vastly different across all 23 locations. It is with these differences that communication issues between the two countries can be seen.

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Once a company enters a foreign market, it is necessary to formalize the reporting process. With his time managing the Chinese division of Lavenders, Chem. This is demonstrated in the case when Chem.

It is imperative for levendary cafe case study company to choose one of these modes of entry in order to have a focused and strategic plan. The responsibility of overseeing the China operation was given to Louis Chem.

This position will aid in the communication efforts between the corporate office and all other foreign offices. There was no clear strategic plan for the operation in China, when Chem.

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This is seen in Lavenders China as the standards between all the restaurants vary and are different from the brand standards that are seen in the United States Lavenders stores. In order to continue with the stores in China then restoration will need levendary cafe case study be completed to all the levendary cafe case study.

Nick White clearly let this responsibility go and as a result the China Division does not reflect the US vision for Lavenders.

  • Restaurants are able to accommodate more customers; they usually have seats and can serve anywhere fromguests per day.
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In addition to these changes in China, Foster must make some changes in the corporate office if she wishes to continue to enter the Chinese market successfully. This position will help eliminate these communication problems and will make knowledge and information more readily available to both the corporate and foreign offices.

As noted in the Analysis and Evaluation section, the operating costs are very high. A solution to standardize the menu is to do something similar to the U. In addition the Chinese real estate market is very high meaning that any location is very expensive.

Entering into a Joint venture with a company who has established infrastructure will help eliminate these costs and allow Lavenders to increase their profits for the first couple of years. This cover letter for hgv driver job said, there must be guidelines to ensure that the new venture does not loose sight of the strategic plan.

These elements are highly complex and require serious knowledge and insight. The different dimensions that Egger Hefted identified are: China scores very highly on this dimension as people value their superiors and do not act outside of their ranking in society.


Based on the case study analysis, the difference between the two countries in terms of eating out habits and eating references seem not to be understood by the Denver headquarter. Although Chan makes a couple valuable points, it is necessary to protect the integrity of the companies reporting structure.

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Related posts: This alternative includes renewing the contract for Louis Chem. The pre-opening expenses also contributed to the loss of income in the first year for China. Both office locations must work together to share information and resources in order for the strategic plan to be carried out efficiently and effectively.

Each region also offers different menu items from one and other, on top of the core menu items. A fully scaled test kitchen and food science laboratory also allows the company to meet the changing tastes of their consumers. It is easy to target Louis Chem. The current financial reports are being sent to the U.

White may be able to oversee Chen and the Chinese market entry. With a low Nanking in the Chinese culture it is evident that this country looks at laws as flexible. From the case the main issue was identified as: First and foremost, it is crucial to have a full understanding of the market that a fractions decimals and percentages problem solving year 5 would like to enter.

CaseStudy & Lecture Notes for International Business of Levendary Cafe

The final area that must be standardized is accounting practices. Cultural Difference Whenever a company is entering a new market it has to take into consideration the cultural differences between countries. It would be extremely beneficial to hire someone who can speak the local language, as well as, someone who is familiar with the local neighborhoods.

The Hefted Dimensions that were listed above demonstrates the cultural differences that separate the two branches of Lavenders. However, there is no separate international division from the Denver Headquarters and the new CEO, Aim Foster, lacks international management experience. Masculinity vs. His willingness to take calculated risk led to the company using organic grains in its bread and hormone-free naturally raised meats.

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This is seen through his urge to keep his position with Lavenders China and the fast pace in which he opened the stores in China. This was the turning point in the relationship between Foster and Chem. Global communication has been a major problem in the Chinese market initiative.

Individualism vs. However he lacks communication skills, which was noticeable through the expansion of 23 Lavenders shops in China that do not fit with the brand image.