Each restaurant location that Chen opened had different menu options and did not operate using standardized methods. It would be extremely beneficial to Levendary cafe the china challenge someone who can speak the local language, as well as, someone who is familiar with the local neighborhoods.
Foster should also sit in on meetings between White and Chen to ensure that she is fully aware of the stage and status of the Chinese market entry initiative. Ultimately, Foster needs to spend more time with Chen if she hopes to align their ideas into one strategic plan.
Therefore, it is strongly recommended to hire someone who is familiar with the location to lead the foreign office.
Having different restaurant layouts and formats confuses the customer and portrays a weak brand image. Once a foreign office leader is hired, it is important for company to choose a mode of entry into the foreign market. These assets will be particularly helpful when determining store locations and will speed up the process of permitting, incorporating, and staffing stores.
Chan argued that it is too expensive and that it will complicate expansion efforts in China. However, I do not support Chen and his decision to change the layout and design of the restaurants that he has launched.
The company must understand the consumer behavior of the local people as well as the locations cultural and religious practices. Firstly, Foster must address the reporting issues that the company is currently facing. 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.
Although Chan makes a couple valuable points, it is necessary to protect the integrity of the companies reporting structure. This position will help eliminate these communication problems and will make knowledge and information more readily available to both the corporate and foreign offices.
In addition to these changes, Foster may want to consider adding a position to the executive committee that is responsible for overseeing global growth. 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.
These elements are highly complex and require serious knowledge and insight. Success in the Restaurant Franchising Business In order to be successful in the restaurant franchising business, a company must follow a few key guidelines.
Global communication has been a major problem in the Chinese market initiative. This being said, there must be guidelines to ensure that the new venture does not loose sight of the strategic plan.
This ensures that all company growth initiatives are being executed at their fullest potential by providing access to valuable resources and knowledge that White and Foster may not be able to provide.
Some companies are successful by changing their entire menu while keeping the same look and feel. Lastly, it is important to protect the integrity of a companies reporting structure. In order to formalize the reporting process, I recommend that Foster hires an International Financial Analyst.
Seeing that Chen is extremely familiar with the Chinese market, I believe his insight should be trusted and valued.
Although, both locations need to work together, it is also vital to allow the foreign office some freedom to make necessary decisions that work for the new market. However, if the company attempts to enter additional foreign markets, White may not have the time or expertise to manage everything.
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. By establishing a Global Growth Director, the company can ensure that global growth initiatives are getting the focus that is required and that White can attend to his other responsibilities as Chief Operating Officer.
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.
White may be able to oversee Chen and the Chinese market entry. There are typically two modes of entering a foreign market. It is imperative for a company to choose one of these modes of entry in order to have a focused and strategic plan. Both office locations must work together to share information and resources in order for the strategic plan to be carried out efficiently and effectively.
Once a particular mode of entry is determined, it is important that the corporate office maintains a healthy relationship with the foreign office.
Based off of lessons learned in the Chinese market, I have proposed an action plan for global growth. Other companies are successful by maintaining a universal and standardized approach.
Once a company enters a foreign market, it is necessary to formalize the reporting process. 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.
First and foremost, Foster must work with Chen to determine a mode of entry so that they can work towards one strategic vision.Levendary Cafe: The China Challenge, Spanish Version Cafe Coffee Day Hilmann Reinier: Coke’s Coffee Challenge in China Saurer: The China Challenge (A) Saurer: The China Challenge (A) Coffee Wars in India: Café Coffee Day Takes on the Global Brands China s Challenge to Feed Its People GM in China OSI in China China unbalanced.
Levandary cafe - The china challenge 1.
• Phase 1: • Building a team for MR. Chen. • Making Chen understand what are the Levendary Café’s core values. • Renovating the current layout of the stores. • Phase 2: • Invest more from USA. • Have more control on Chen from Foster. Levendary Café: The China Challenge Levendary Café Expansion to China BUS Mari-Liis Laiverik Company Background Company Structure Domestic Industry.
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.
The China Challenge 1) Close down in China, leave the market 2) Develop solely American concept restaurants 3) Keep on doing what they are doing and trust Chen. Strategically, many of her corporate staff have become concerned that the company's major expansion into China is moving too far from Levendary's well-defined concepts of store design and menu.Download