Lavendery Cafe Essay

Levendary Cafe was appointed with a new CEO in January 2011. Mia cheer is a first time CEO with no multinational management get wind, faced with a major ch all in allenge at Levendary Cafe, a $10billion US-based fast chain. However, the Levendary Cafe already established in mainland mainland chinaware foodstuff while departing CEO Howard Leventhal in the position. Strategically, m both(prenominal) of the bodied staff make up become concerned that the companys major expansion into china is moving too far from Levendaryswell defined creations of store figure and menu. Besides that, Mia treasure is also found that Chinese subsidiary submitted all management and financial taradiddles to Denver or likely known as headquarters of Levendary Cafe in its own format. Louis subgenus subgenus subgenus subgenus Chen is the president of Levendary mainland China. He is capable of speak Mandarin Chinese and English and had long experience as retail property developer gave him intimate f amiliarity with neighborhoods in strike and capital of Red China. Chen also had a network of contacts to help speed up the plow of permitting, incorporating, and staffing stores.However, in order to oercome these challenges, Mia Foster had her first video convocation meeting with Louis Chen. Since, Mia Foster is not satisfied with financial report format, she urged Louis Chen to make a change. Meanwhile, financial evidence shows that Chens efforts piss produced strong results and suggests that he knows China far better than U.S headquarters does. Mia Foster wants to protect the integrity of report structure. Organizationally, Foster has been frustrated by the presumable unwillingness of Louis Chen to confirm to the companys planning and reporting processes. Therefore, Chief Franchise officer Peter was move to China bestow a comprehensive review on the 23 Levendary Cafe in the commercialise. Hence he submitted the detailed description on the 23 Levendary Cafes in China to Mi a Foster.Based on the detailed description submitted to the CEO, She found that some(prenominal) Levendarys Cafe concept of store design and menu was customized with proscribed any standardized. Thus, Mia Foster had a second video conference meeting with Louis Chen. During the meeting, Chen response angrily to Foster, he was work hard to begin from zilch until 23 Levendary Cafe today and explained the necessitates of differentiation and customization in the foreign food market as well. Finally, Foster is aw are of thedifficulties of localizing a chain restaurant concept in foreign market. As a result, Foster decided flies to China to meet with Chen someoneally and to make a determination that will determine the future of Levendary China.ProblemsWhen Levendary entered China, they gave Chen the full control over the operations there, although a well-developed detailed plan and a clear evasive action of how to implement this plan is a must. However it is clearly this is not the strip whereas everything had been handed to Chen from A to Z. The chain of Levendary Caf in USA are run by a strict set of normals and allowing modifications only afterward approval from the concept group regarding the grimace and feel of the firm. The Levendary Caf in China is following a business stumper which is completely different from that of the US operation model. Chen wanted this caf to change to the changing tastes of people from organize toObserving the various critical situations menti cardinald above, the following are the various problems that are to be dealt. The first problem will be the differences in history techniques used by China and US. This is a major problem for the HQ of Levendary Caf because as it being a listed company it should be as luculent and uniform as possible while preparing its income statements which will be the translated into yearbook reports and they will be the face of the company in the public. So, translating the income reports fr om China into reports correspond to the GAAP principles used in USA is both time fetching and increasing the costs.Furthermore, the outlet design standards and menu selection in China are different with US. There are non- standardized operations in China with US. The Levendary Caf in China is following a business model which is completely different from that of the US operation model. Chen wanted this caf to adapt to the changing tastes of people from place to place. Chen setting up stores harmonise to the local needs rather than following the standardized model suitable by US outlets. He also tried to modify the look and feel of the caf according to the locality in which it is operating.For example, the branch at Shanghais historic Yu Garden area provided atakeaway snack counter with no seating and the branch at North entrance to Beijings Forbidden City, replaced classic wooden framed upholstered chairs with aplastic framed preference besides no salads on its menu which salad is a must on US menu. While the branch at Shanghai, all but one sandwich item had been removed from the menu & replaced by a grade of local.Chen was modifying Levendarys signature menu items, outlet design standards and the boilersuit caf environments without consulting U.S. management. Hence, newly appointed Levendary CEO Mia Foster was faced with a shape of pressing matters ranging from how to link Chen and his management team to those in corporate headquarters, to the standardization of future Levendary Caf locations.Decision Analysis &SolutionsConcluded of the case study, Levendary Caf has taught the person who reads particularly business player to concern and obey headquarter, yet disremembering the accessory within doing business. Even somehow headquarter is not the centre of the truth without doing any respectable communication with the subordinate. The Levendary Cafs main person is Mia Foster, as a CEO and Louis Chen, an employee who runs and in charge of the Levendary b usiness in China.By this case, Chen must be obviously maintain the communication and the concern of Levendary China situation to the Headquarter. The situation of Lavendary China must be monitored by consensus and Chinese Operation market. Mia Foster as a CEO, she might more look the needs of Headquarter and Levendary China market. The operation of the Levendary China will follow the requirements and report by Louis Chen.Generally, the Levendary headquarter must be extra concern about the streetwise and current issues of the subsidiary office. By the case study, the Levendary China is struggling into the market and competition, how to settle the business in China as well as trying hard to keep an eye on certain rule and regulations of headquarter, essentially those were not be working.Technically, the barrier was facing in Levendary China is about localized the market segmentation. The Levendary China must build the truehearted and tough team through leading by Chen. Actually, Lo uis Chen had excellent idea to draw the excessive concept for Levendary China and would work out with that idea. The only things that Chen needs are reasonable endorsement from Mia Foster and headquarter.