1.) Levendary Café entered the Chinese market, hitting the ground running with Louis Chen running the show. Chen had a very ambitious attitude and succeeded in opening 23 new Chinese locations in a very short period of time. However, by Chen focusing more on obtaining the highest amount of profits, he did unfortunately sacrifice the image of the Levendary franchise. Before entering this market, research was conducted and it appeared that several other American franchises succeeded due to China’s high population and growing GDP. Since many of the regions vary significantly within China, management style, area food tastes, as well café atmosphere should have been further reviewed in order to understand how to properly penetrate the Chinese market.
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It was essential for Levendary to understand the habits and preferences of the Chinese people, however, they could not deter too much from their original business plan or else they would become unrecognizable. The new CEO, Mia Foster, was very unhappy about the way the cafes were being conducted in China and tried to resolve the situation, but Chen was very resistant and stubborn. Overall, when Levendary did initially enter the Chinese market, their profits were outstanding and they did expand quickly, opening 23 locations, but that was only enough to get their foot in the door. Unfortunately, in order to preserve the integrity of the Levendary brand, several factors of the locations in China require vast changes, which will be hard, costly and timely to …show more content…
This may include changes to management style, café atmospheres, pricing, promotions, café offerings, and locations. The organizational structure should change in all areas, including concept, marketing, food, operations, business development and administrative staff groups. This change should include the creation of an international division with a representative from each of these groups. These areas should begin to include partnerships with individuals and companies in China to incorporate the current tastes and items acceptable in the regions it has already expanded into and the areas it also plans to expand into in the
It was essential for Levendary to understand the habits and preferences of the Chinese people, however, they could not deter too much from their original business plan or else they would become unrecognizable. The new CEO, Mia Foster, was very unhappy about the way the cafes were being conducted in China and tried to resolve the situation, but Chen was very resistant and stubborn. Overall, when Levendary did initially enter the Chinese market, their profits were outstanding and they did expand quickly, opening 23 locations, but that was only enough to get their foot in the door. Unfortunately, in order to preserve the integrity of the Levendary brand, several factors of the locations in China require vast changes, which will be hard, costly and timely to …show more content…
This may include changes to management style, café atmospheres, pricing, promotions, café offerings, and locations. The organizational structure should change in all areas, including concept, marketing, food, operations, business development and administrative staff groups. This change should include the creation of an international division with a representative from each of these groups. These areas should begin to include partnerships with individuals and companies in China to incorporate the current tastes and items acceptable in the regions it has already expanded into and the areas it also plans to expand into in the