Preview

Levendary Cafe Case Analysis

Better Essays
Open Document
Open Document
2347 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Levendary Cafe Case Analysis
Levendary Café Case Analysis
Final Case

Haley Woods
International Management
Professor Vogus
December 3, 2014
Levendary Café Case Analysis
Introduction
Levendary Café is a quick casual dining experience that is expanding into China. The new CEO, Mia Foster, took over the company and began looking into the eighteen-month expansion that was occurring in China. She discovered that the Levendary Café China President, Louis Chen, was up to no good. He was given free reign from the previous CEO and he needed to be handled with. First, Foster is going to have to take a look at China and what it has to offer, and then figure out a way to negotiate with Chen accordingly. Foster will need to make an analysis of the environment of China to determine what kind of society she will be doing business with. Then she will need to look at an analysis of the economy and demography. After that she will need to establish that there are going to be cultural differences between the two countries and she can use Hofstede’s Cultural Dimensions to help minimize the issues. A quick look at the financial analysis of China and Mia Foster can start to begin her recommendations for change.
Case Summary
Levendary Café is a publicly traded, franchised brand of about 3,500 stores in the United States that is expanding into China. Known for their wholesome soups, salads, and sandwiches, Levendary Café offers high-quality organic ingredients to satisfy customer demand. They are committed to serving their customers in comfortable, friendly environments. Levendary Café is a combination of Quick Service Restaurants and Casual Dining. They offer a Quick Casual dining experience with an average check in the $8 to $12 range. Levendary Café is distinguished by their willingness to takes risks, a key trait of the original founder. This is also a trait of the President of Levendary China, Louis Chen, possesses. With the expansion into China, there have been changes



References: China. (n.d.). Retrieved December 2, 2014, from http://www.heritage.org/index/country/china Commerce. (n.d.). Retrieved December 2, 2014, from http://www.ukessays.com/essays/commerce/levendary-cafe-case-study-commerce-essay.php THE HOFSTEDE CENTRE. (n.d.). Retrieved December 2, 2014, from http://geert-hofstede.com/china.html

You May Also Find These Documents Helpful

  • Good Essays

    Timbuck2 Case Study

    • 869 Words
    • 4 Pages

    Like various other foreign countries, the Chinese market embraces the country’s diverse culture. Successful expansions depend heavily on a corporation’s ability to integrate and accept different cultures. The Chinese work culture is more personal than in the U.S. The Chinese work environment embodies this personal nature when doing business with carriers, customers, vendors. In order to successfully expand, the corporation must know how to adapt to this nature and work without hesitation. The corporation has to be able to keep its patience and work around the cultural differences.…

    • 869 Words
    • 4 Pages
    Good Essays
  • Best Essays

    EGT1 Task 4 - China

    • 2785 Words
    • 80 Pages

    The company has brought to our attention that it desires to expand into the Eastern Asian market where it is believed that the opportunity will be best and certainly more than double its profits by this venture. The Country of choice will be China; location is the city of Macau, which is an established trading center in Southeast Asia. B. Major Cross-Cultural Issues and Impacts: There are some marketing aspects to consider. Our approach must be culture sensitive to be successful. Insulting anyone in our business relations for work in China could end the deal or cause unnecessary delays. It is vital for all personnel involved in this venture to train with care in the marketing and cultural behaviors of the Chinese. Culture is a major issue and the company must be meticulous with training in order to be accepted. The Asian cultures are very careful about not losing face and this is critical. Keeping face goes back to Confucianism, which focuses on ones duty and loyalty, honor, sincerity, and keeping harmony with all those related to them through family, business, and social ties. This is strictly followed with respect for age first in any of these relationships. One must never lose face with any of these ties for to lose face is to lose honor. The concept of face translates as honor, good reputation, and respect. There are four types of face. Face behavior is power-oriented behavior with the purpose of maintaining stability or control of one’s self. Diumianzi originates from the word mian and directly relates to one’s reputation or place in society. It is actions or deeds, which others have observed, and it is earned. Geimianzi is response to or giving of face to another through showing respect to the other person. Liumianzi is developed by avoiding mistakes and showing wisdom in making decisions. Jiangmianzi, when face is increased through others by another complementing one to a business partner or associate.…

    • 2785 Words
    • 80 Pages
    Best Essays
  • Powerful Essays

    Egt1 Task 4 Essay Example

    • 2598 Words
    • 11 Pages

    Let us consider China for our example. China is the largest market in Asia and as such, it is an object of great interest for expanding companies. Many companies have already taken advantage of the opportunities afforded by dealing with China and many more will surely follow. The most successful of these companies are the ones that acknowledge the cross-cultural differences between Chinese and American lifestyles and find a way to embrace and cooperate with those differences. Those that fail to grasp these important differences often fail.…

    • 2598 Words
    • 11 Pages
    Powerful Essays
  • Good Essays

    Mini Assignment #1

    • 377 Words
    • 1 Page

    2. When interacting with Chinese business colleagues, McCain might face challenges with most, if not all, of Hofstede’s culture dimensions. For example, when looking at power distance, Canadian managers at McCain could face challenges because Canada has a much lower power distance than China, and workers may not feel comfortable with this power dynamic. A Canadian manager may try to get workers to work harder so they can achieve greater success, but Chinese power distance doesn’t allow this; in China, one works and does not have aspirations that exceed one’s position within the company.…

    • 377 Words
    • 1 Page
    Good Essays
  • Powerful Essays

    Most companies did not consider cups of coffee to be a very profitable or expandable market, until Starbucks. Starbucks started selling their gourmet coffee at almost four times the cost of a regular cup of coffee and people flocked into their stores. Starbucks is now considered the number one leader in the gourmet coffee industry. Since Starbucks created this extremely profitable and somewhat simple market, many competitors have taken interest in trying their hands in the gourmet coffee market. Starbucks number one competition is McDonalds new line of gourmet coffee. McDonalds started selling McCafe coffee, which include items such as frappes and lattes with popular flavors such as mocha and caramel. The biggest advantage that McDonalds possesses is the price difference. McDonalds gourmet coffee is cheaper than anything Starbucks offers. Another company that is beginning to come up in the gourmet coffee world is Sonic. Sonic started selling items such as their Premium Roast coffee and their Java Chiller with your choice of caramel, mocha, or hazelnut flavors. Both of these competitors offer a cheaper substitute for Starbucks gourmet coffee. Another problem Starbucks is facing is the rise in dairy and coffee products and the loss of flavor due to their cost saving methods. The resources required to sell gourmet coffee is rising which will make it difficult to…

    • 1862 Words
    • 8 Pages
    Powerful Essays
  • Best Essays

    Nowadays, economic globalization is becoming an irreversible tendency; therefore, different multinational corporations always want to extend their branches to other countries, especially for the food companies, such as, McDonald’s, Starbucks, and Burger King. In recent years, the world has also witnessed that China’s economy has developed to a higher level since China has reformed and opened for more than 30 years. According to Lardy, in the middle of 1990s, China had become one of the largest world’s trading nations (Lardy, 1995, p.1). Now, Chinese customers have more desire and abilities to enjoy western food. Therefore, many multinational food corporations, such as, Starbucks, KFC, and Krispy Kreme, want to enter in Chinese market, and these companies…

    • 3266 Words
    • 14 Pages
    Best Essays
  • Satisfactory Essays

    Levendary Café is $10 billion US-based fast food chain that is spun out of a private equity ownership. Levendary Café is currently expanding to China, Mia Foster appointed as the new CEO with low international experience to run and manage the business in China. This case discuss the president of the subsidiary in China Louis Chen and the establishment of the subsidiary in China, as well as negotiating the operations with the parent company in U.S., as well as the challenges Foster faces to be capable to manage international growth and success.…

    • 497 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    SugarFine Café will be owned and operated by Sarah Rhinhart. The café will be set to open on October 1, 2015. You can expect to see an array of pastries and sweets, from pie slices to custard you are sure to leave with a mouth watering expeirnce. SugarFine café will be open 7 days a week. During the week the business hours will be 11am-7pm and on the weekends 11 am- 11pm. These hours have been chosen based off of how many sales per hour SugarFine expects to do. Sugarfine Café also will have entertainment on the weekends to increase the amount of customers coming into the store.…

    • 108 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Business in China

    • 698 Words
    • 3 Pages

    China is doing business more and more the American way, but non-Chinese executives still must work hard at building trust in relationships with their Chinese business partners. Chinese business strategy has changed a lot, and they adopt western practices (Chau, 2012).…

    • 698 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    The author had a vision to create a sophisticated cafe, with an indoor playground that would be suitable for younger children and all age. Boboiboy Dorothy’s Café would offer this younger crowd with the ability to freely play on the playground and engage in fun toys, all, within the reach of their parents or caregivers. This would give the parent time to sip on a cup of coffee or tea, sit and relax, and watch their child play. The author also envisioned Boboiboy Dorothy's Cafe as being a social hub, where locals from the neighboorhood would be able to bring their children together to play, while the parents would get to network and build friendships.…

    • 115 Words
    • 1 Page
    Satisfactory Essays
  • Powerful Essays

    Cultural Sensitivity

    • 1560 Words
    • 7 Pages

    Due to the current import and export infrastructure we already have in place with China, I would like to make a recommendation that we look at this country for our new venture. Before making any decision toward this move there will be several cultural issues that must be addressed. Clearly there are differences between our two countries and I would like to mention ones that could affect our relationship with them.…

    • 1560 Words
    • 7 Pages
    Powerful Essays
  • Good Essays

    Established in 2004, the Northstar Café has been serving Columbus natural and locally grown foods for over a decade. Their menu features New American cuisine in a comfortable but upscale dining environment. The vibe in the restaurant is a sort of urban casual chic. Everything is clean and modern and tastefully decorated. But it’s the food that keeps customers coming back. The dedication to quality and organic ingredients makes for delicious menu items. Whether you come for breakfast, lunch, or dinner, the ambiance and food combine for a truly satisfying experience.…

    • 908 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    Yang Jianguo was recently promoted from country manager for China to global head of product development at a staid French perfume maker. He was chosen for his technical smarts and his knowledge of emerging markets - a critical avenue for growth, given that sales in the company's core markets have stalled. Eager to succeed in his new role in Paris, Jianguo has lots of fresh ideas, but they seem to be falling on deaf ears. Members of the executive team, for their part, find Jianguo to be largely indifferent to their input. Can Jianguo adjust to this new culture? And can he succeed without sacrificing his identity? Three experts comment on this fictional case study in R0901A and R0901Z. Katherine Tsang, the CEO of Standard Chartered Bank in Shanghai, explains the cultural differences between China and France and recommends that Jianguo push his thinking beyond the Chinese market. She also suggests that the company give all its executive team members multicultural training so they have the tools to understand one another and work together effectively. Mansour Javidan, the dean of research and a professor at Thunderbird School of Global Management, acknowledges that Jianguo's transition would be easier if he had the full support of the CEO, Alain Deronde. But since that isn't forthcoming, he advises Jianguo to work with Alain to develop targets for growth in emerging and traditional markets and a plan for building an infrastructure to achieve those goals. James Champy, the chairman of consulting for Perot Systems, is surprised that a family business would choose an "outsider" for this important post, but he recognizes it as a wise strategic move. He says that Jianguo needs a coach and should focus on learning the home market first, before trying to make inroads further…

    • 296 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    Culture and Starbucks

    • 1411 Words
    • 6 Pages

    True, the company experienced several downturns because of cultural issues but it triumphantly gained a name for itself in the global market, especially in China. How did Starbucks able to comeback from its failure? Why did they fail in the first place? How important is it to understand cultures of other countries in globalization? These, we shall answer in the course of this paper. What follows is an enumeration of the cultural barriers that Starbucks encountered in its expansion in China.…

    • 1411 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Yang Jianguo was recently promoted from country manager for China to global head of product development at a French perfume maker named Deronde. He had been country manager for the China operations, having been promoted from his job running a lab that had produced two hit scents in the Asian market. The company’s CEO, Alain Deronde had chosen Jianguo over three other rising stars. Yves Saurac, one of the three rising stars, was the vice president of the company who everyone had assumed to get job instead of Jianguo. Yves was also close friend with the CEO’s family but Jianguo succeeded in the competition. Jianguo was eager to succeed in his new role in Paris. There were several issues to deal with in the first place. The company’s best prospects were in emerging markets, yet consumers in China and many other Asian markets found the Western scents unpleasantly strong. Sales were weak in Latin America as well. Given that after decades of double digit growth, Deronde’s market share was also sliding. Jianguo had no doubt that he had some winning ideas, but they seem to be falling on deaf ears. During the Jaingguo’s pitch at the board meeting, everyone at the meeting felt unease about Jiangguo’s idea pitch. Members of the executive team, for their part, find Jianguo to be largely indifferent to their input. Those other board members, including the three rising stars kept opposing to Jianguo’s ida pitch. He was getting nowhere. Jianguo’s first pitch to board members turned out to be very disappointing. Those three are competitor, but they had known each other for years and as a result, they also shared degree of trust. When, three of them had a moment to connect privately, Yves expressed his earnest concern about company’s future and how Jianguo avoid talking to him about the issue of connecting Eastern and Western culture.…

    • 2654 Words
    • 8 Pages
    Powerful Essays

Related Topics