Levendary cafe case analysis
What implications does this have for the way levendary should manage its international operations?
Global communication has been a major problem in the Chinese market initiative. With 23 stores in China, Levendary will need a separate branch in China, as it will provide structure to that side of the business. The new CEO decided to look more closely into the China operation and planned a trip to China to meet with Chen for the first time. However, I do not support Chen and his decision to change the layout and design of the restaurants that he has launched. All locations would offer the same core menu items, but each region would have some different menu items that vary from one another. However, Chem. The final area that must be standardized is accounting practices. 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 the Chinese real estate market is very high meaning that any location is very expensive. This is largely due to the fact there is limited communication because the key players in the United States and Louis Chem. Individualism vs.
This will ensure that communication is kept to a high standard and that the brand image remains constant. Each knowledgeable and highly experienced member of the management team knows their responsibilities and who responds to them.
Levendary cafe case analysis
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 terms of restaurant size, U. In addition the Joint venture will allow Lavenders to be partnered with people who are culturally aware and possess cultural intelligence. This position will aid in the communication efforts between the corporate office and all other foreign offices. There should be extensive market research conducted on design and atmosphere that would be successful in China. Due to this lack of experience Leventhal trusted Chen with implementing the needed actions to grow a successful franchise in China. The action plan is detailed below through three different stages. The income statement for China can be seen below. This is seen in Levendary China as the standards between all the restaurants vary and are different from the brand standards that are seen in the United States Levendary stores. In regards to the case study it is confounding that Chem. If Louis Chen cannot properly function and communicate with the US Levendary division then he may need to be replaced by someone with a fresh perspective on the business. However, the China restaurants have higher average revenue per square foot.
Louis Chen opened the first store in Shanghai in, January ; the first location was in a high traffic business area. Individualism vs. The final area that must be standardized is accounting practices.
Collectivism This dimension looks at how individuals think and act, if it is for the greater good or if it is for their own well-being. Femininity, the two countries have a comparative score.
Levendary cafe the china challenge prezi
An alternative to the situation would be to hire a management firm to look after the China division. It is interesting to note that on only one dimension, Masculinity vs. The Hefted Dimensions that were listed above demonstrates the cultural differences that separate the two branches of Lavenders. This alternative includes renewing the contract for Louis Chen and brings more managers to China to help grow Levendary in the China market with the vision and brand image of the US Division. Some menu items were offered at all locations, such as the chicken sandwich. Femininity, the two countries have a comparative score. Therefore, it is strongly recommended to hire someone who is familiar with the location to lead the foreign office. The Chinese culture is very focused on planning for a long-term future. It is with these differences that communication issues between the two countries can be seen. 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. Furthermore, creating shared goals and documentation could possibly minimize the administration costs and prevent the sunk cost related to marketing and pre-opening expenses. The Chinese culture looks out for the group when making decisions. Create a separate division of Levendary for the China stores.
Therefore it can be seen that his contract should be renewed for another term with the stipulation that Chen will be working underneath other Levendary managers in China. The U.
based on 38 review