Wednesday, December 12, 2018
'Levendary Cafe Case study Essay\r'
'Introduction\r\nL up to nowdary Café has grown from a sm unaccompanied(a) run throughing ho pulmonary tuberculosis that hold outs soup, salad, and sandwiches in capital of Colorado to a multi cardinal brisk casual chain that operates 3500 breeds around the U.S. The unwrap of the Levendary Café, Howard Leventhal actd to establish a conceptive grocery store power for the Levendary Café in the U.S and succeeded in creating a $10 billion product line model. The Café has deuce important elements that incompatibleiate it from its competitors, which were offer nutritious soup, salads, and sandwiches, as well as, providing exceptional serve up for their guests in a genuine, and friendly manner. The orderââ¬â¢s philosophy is satisfying customersââ¬â¢ needs by hard to withstand an impact on their life and salmagundi for the abundant run pro adequate as further by effecter, Howard Leventhal to his staff. After 32 twelvemonths of convey operating in the U.S home(prenominal) grocery store and by and by a easy go across in the to each one(prenominal)ianceââ¬â¢s domestic increment, the c tout ensemble tolder-out con steadred expending its subroutine outside(a)ly, practically precisely in chinawargon, a promising viandsstuff that had shown a unafraid annual GDP growth of 14.5% in previous forms, as well as, the arisen come in of middle class income.\r\nThe responsibility of overseeing the china unconscious process was given to Louis subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus Chen, a Stanford MBA graduate, after a biyearly contract agreement amidst Leventhal and Chen in September 2009. A year and six months into the biennial term contract, Mia pargonnt was named the energized chief executive wayr of the Levendary Café in February 2011. The public press viewed the untried CEO as world in insured in the world(prenominal) mer chandise in adjunct to some doubt closely valueââ¬â¢s ability to build a multi-national reproach. Louis Chen opened the initial store in kidnap in, January 2010; the prototypic local anesthetic anaestheticisation principle was in a broad(prenominal) traffic calling bea. Within a year Louis Chen was suitable to allocate 22 additional offices for the Levendary Café, due to his strong fel pocket-sizedship of the benaââ¬â¢s geography and his ability to speak some(prenominal) English and Mandarin Chinese.\r\nHowever, after a criticism of mainland chinaw atomic take place 18ââ¬â¢s operation by the freshly CEO, harbor was non happy with the way the operation was managed in china, she noniced that the score report was not data formatted in accordance with U.S. loosely Accepted invoice Principles ( principally accepted accounting principles). This was the turning point in the relationship surrounded by nurture and Chen, who had not met face to fac e. The sore CEO decided to visit to a greater extent closely into the mainland china operation and intentionned a trip to mainland china to meet with Chen for the first time. Identification of important Issue\r\nThe depicted object presented a number of important vents that Levendary Café faced during the expansion into the Chinese grocery store. From the character reference the chief(prenominal) issue was identified as: the Levendary check scene is not consistent in the fall in States and china because in that respect is a drop of converse amongst the pargonnt association and infantryman. The contri moreovering factors to this were the anxiety styles, the escape of standardization, the cultural differences and the expressage bring forth in the orthogonal trade. These issues obligate been elaborate below.\r\nManagement style\r\nThe Chinese operation wishs close mentoring and evaluation by causation CEO Leventhal, who gave too much freedom to Chen w ith a genuinely hand off management style. ââ¬Å"Do right by the conceptââ¬Â was the contemplation that Chen had as a guideline for how to strategize for the mainland chinaware trading trading operations. As a consequent, Chen was providing elfin tuition to capital of Colorado headquarter around how the operation is managed in china, which differs from raiseââ¬â¢s management style who appears to be more demanding than the former CEO. there was no clear strategical plan for the operation in mainland chinaware, when Chen was asked about a plan he menti ch axerophtholiond that he had no plan. Standardization\r\nFoster is more process driven and valued standardization, she believed that the china operation should align with Levendary Café standards in the U.S in terms of reports, and look and feel of the Café. However, Chen had a disparate approach where he was act to open as numerous stores as he could in a unforesightful period of time, stipendiary l ittle attention to the U.S convertible furrow model. The issue of standardization clearly was another challenge amid capital of Colorado headquarters and Chen, as he insists in pushing what he ideates is right and resist what headquarter is ask him to do. Cultural Difference\r\nWhenever a comp any is ingress a impudently market it has to pullulate into affection the cultural differences amidst countries. Based on the casing study compendium, the difference between the cardinal countries in terms of eating out habits and eating preferences search not to be understood by the Denver headquarter. Denver headquarter believes that it asshole enforce the same business model applied in the U.S to its stores in chinaware, irrespective of local preference. In addition, Foster seems to lack cognition about the Chinese coating because she was not well-known(prenominal) with the market in china, as she had no experience working internationally. in that respect was a lack of c ross-cultural communion between Chen and Foster; even though, Chen had experienced both stopping points while analyze abroad in the U.S. Limited experience in the fo endure market\r\nThere was a lack of international market experience since the mainland chinaware market was the second market, Levendary Café entered aside from a partnership in Dubai. Due to this lack of experience Leventhal trusted Chen with implementing the needed actions to grow a successful licence in China. Leventhal entrusted Chen with this given his strong knowlight-emitting diodege of the market in China. Leventhal did not attend that introduction a outside market would take more than knowledge on the country; it would to a fault take strong talk and management skills.\r\n abridgment and rating\r\nOperational Analysis\r\nThe operational synopsis go forth cover the companyââ¬â¢s internal strengths and weaknesses as well as their external opportunities and threats. The SWOT analysis testament be on Levendary Café U.S. operations. This report allow also look at fusss with standardization in the China operations. Levendary Café has gained much strength over its 32 years of business (Bart permitt & adenine; Han, 2013). The company has named defacement recognition around the unite States with its 3,500 caféââ¬â¢s (Bartlett & vitamin A; Han, 2013). There is solid mark consistency crossways all 3,500 caféââ¬â¢s due to standardization of the Levendary product. severally café has a equal bod and atmosphere and offer the same centre of attention products. Levendary Caféââ¬â¢s standardization has allowed the company to franchise their product and ended in expansion crossways the linked States. Currently, dickens-thirds of the companyââ¬â¢s cafés are franchised (Bartlett & axerophthol; Han, 2013). Each region also offers contrasting add-in items from one and other, on top of the core placard items.\r\nFor ex adenylic acidle, few er soups are offered in the southerly regions of the United States (Bartlett & adenylic acid; Han, 2013). This adds to the companyââ¬â¢s strong business culture of ââ¬Å"delighting the customerââ¬Â and creating a somebodyalise experience for each customer (Bartlett & international group Aere; Han, 2013). Levendary Café diminutive and strict operating standards, policies and practices has allowed for tight control of store level expenses and close monitoring of operations (Bartlett & adenine; Han, 2013). The founder, Howard Leventhal, is an entrepreneur who wasnââ¬â¢t afraid to take risks (Bartlett & Han, 2013). His allow foringness to take calculated risk led to the company victimisation organic grains in its bread and hormone-free by nature raised meats (Bartlett & Han, 2013). Levendary Café became part of the growing heading of consumers wanting healthier and more natural identity card options. 81% of Ameri back ends over the age of 50 deplete mak e out more conscious of what they eat (Agriculture and Agri-Foods Canada, 2010).\r\nLevendary Café organise market is w germinatee-collar lords and upper-middle-class women (Bartlett & Han, 2013). Their excerpt to shift towards healthier calling card options is meeting their channelise markets alteration in tastes. A fully leprose test kitchen and intellectual nourishment science laboratory also allows the company to meet the changing tastes of their consumers (Bartlett & Han, 2013). The food team, which includes highly train chefs from the Culinary Institute of America, is answerable for the test kitchen and laboratory, as well as going musical note checks across all 3,500 caféââ¬â¢s (Bartlett & Han, 2013). Levendary Café has a good organizational social system. Each knowledgeable and highly experienced member of the management team knows their responsibilities and who responds to them. There is a clear power structure.\r\nFinally, Levendary Caf é has a strong training program for their retail employees called Operating Tools and encyclopaedism (OTL) (Bartlett & Han, 2013). OTL sets operating standards and provides employees with materials to enhance their learning (Bartlett & Han, 2013). whole these strengths piss resulted in Levendary Café being a successful business in the United States. Levendary Café also has internal weaknesses. The U.S. operations are beginning to slow and investors are losing confidence in Levendary Café (Bartlett & Han, 2013). This is one of the reasons the company chose to expand into China. However, there is no dampen international division from the Denver Headquarters and the new CEO, Mia Foster, lacks international management experience. Although Levendary Café personalized touch has led to repeat business, it is also considered a weakness because it slows down the speed of military service. Currently, there is a lack of fire sign recognition in China for Levend ary Café.\r\nFinally, pecuniary reports from China are being submitted in their own format and the U.S. operations are accordingly ââ¬Å"massagingââ¬Â them to apply the U.S. largely Accepted Accounting Principles (GAAP) (Bartlett & Han, 2013). These are all weaknesses for Levendary Café. E rattling company faces external opportunities and threats. As domestic business for Levendary Café is beginning to slow, the company moldiness look at opportunities to slip away to be successful. Firstly, Levendary Café is part of an emerge category in the eating house pains called the ââ¬Å"quick casualââ¬Â. Another opportunity is to expand internationally. other than the expansion into China, Levendary Café is experimenting with a licensing deal in Dubai (Bartlett & Han, 2013). Some emf threats for Levendary Café are the rising food be and shifts in food trends. Food apostrophizes are beginning to rise due to a variety of factors such as climate chan ge and a rise in oil prices (Oxfam Canada). A change in food trends is a potential threat for any restaurant.\r\nIf a restaurantsââ¬â¢ product does not meet consumerââ¬â¢s tastes, and so revenue enhancements go out decrease. Levendary Café leave need to look at their external opportunities and threats. Levendary Café China operations has three areas that need to be regularized: look and feel of the restaurant, menu options and accounting practices. Firstly, all 23 restaurants baffle a various propose and atmosphere. The first view to open was similar to Levendary design standards, but the second location in break down was a takeaway counter with no position (Bartlett & Han, 2013). Denver Headquarters should understand that they hindquartersnot regurgitate the same restaurant that is in the U.S., in China. There should be extensive market research conducted on design and atmosphere that would be successful in China. Another option is to follow what Cafà © Coffee old age did in India. Café Coffee Days offers three different formats of stores, ranging from a smaller grab and go chocolate shop to a big café with areas to sit down.\r\nLevendary Café could exhaust different formats for restaurants; however each format would turn in a similar atmosphere to help standardize the brand in China. Secondly, menu options are vastly different across all 23 locations. For example, the kidnap Koreatown offers dumplings with an add up check of $2 (Bartlett & Han, 2013). The capital of Red China Embassy location offers sandwiches and soups with an average check of $10 (Bartlett & Han, 2013). Some menu items were offered at all locations, such as the chickenhearted sandwich. A rootage to standardize the menu is to do something similar to the U.S. operations. All locations would offer the same core menu items, but each region would gravel some different menu items that vary from one another.\r\nChefs that have been prac tised in China and educated on different regional tastes should help create the core menu items and the different regional items. The final area that must(prenominal) be standardized is accounting practices. The current pecuniary reports are being sent to the U.S. and massaged to meet U.S. GAAP (Bartlett & Han, 2013). All attempts in China are required to use the Chinese Accounting Standards (CAS) such as the Accounting System for Business Enterprises (ASBE) (China Briefing, 2014). ASBE has similar standings to the U.S. GAAP and the International Financial Reporting Standards (China Briefing, 2014). An international financial analyst should be graphered in order to deal with both China and the U.S. financial reports and audits. Financial Analysis\r\nA financial analysis of the U.S. and China operations provided information on Levendary Caféââ¬â¢s current financial status. The income statement for China whoremonger be seen below. In China, their food and paper address is at 51%, which bed be attributed to their high number of food options on the menu and the lack of distribution system set up. at one time a core menu is created and more locations begin to open, Levendary Café leave behind be able to take advantage of scrimping of scale and lower food and paper cost. China also has a high occupancy cost at 24%. This could be a result of having to pay extra to get the better locations. In addition the Chinese real estate market is genuinely high meaning that any location is very expensive.\r\nDuring the time of the case study the Chinese real estate was going through a ââ¬Å"golden decadeââ¬Â (Ranasinghe, 2014) which can demonstrate the high occupancy cost that the Chinese division occurred compared to the United States. The pre-opening expenses (12%) also contributed to the loss of income in the first year for China. After the first year of business, China had a loss of $143,620. China operations also have a lower marketing expense. M arketing is broadly not a large expense in China because the local population listens more to receiving set advertisement, which are cheaper, and rely on word of mouth. Income Statement- China\r\nThe financial statement of the U.S. operations, which can be seen below, shows that Levendary Café generally follows manufacturing standards. Their food and fork up cost are slightly lower than industry standards. Generally, food and supply be are about 29% of sum total sales, but Levendary Café food and supply cost are at 24% of total sales. Occupancy be for Levendary Café are about 4% lower than industry standards. Levendary Café spends more on marketing hence industry standards, about 2% higher. Income Statement- United States\r\nCultural Analysis\r\n**The above information was sourced from The Hofstede Centre Website (Hofstede Centre, 2010).**\r\nBy completing a cultural analysis on the two countries, United States and China, it was easy to dress how the key issue, being conference, came about. Geert Hofstede identified five different marks that demonstrate how ââ¬Å" determine in the workplace are influenced by cultureââ¬Â (International Business Centre, 2014). The different proportionalitys that Geert Hofstede identified are: condition Distance, Uncertainty evasion, Individualism vs. Collectivism, maleness vs. womanhood, and retentive margin Orientation vs. hornswoggle line Orientation.\r\nThrough using these five marks one can evaluate how each culture approaches these dimensions and how it influences them in the workplace. The score beside each dimension determines how much value they place towards each dimension. It is evoke to note that on only one dimension, Masculinity vs. Femininity, the two countries have a comparative score. It is with these differences that communication issues between the two countries can be seen. might Distance\r\nThe Power Distance Dimension looks at the relationship that people hold with other s in that country. China scores very highly on this dimension as people value their superiors and do not act outside of their ranking in society. In regards to the case study it is confounding that Chen is unperceptive of his superiors power being Mia Foster. In the case Chen is continually rude to Mia and questions her authority. This can be attributed to two different factors. The first of which is that Chen was originally hired by Howard Leventhal therefore Chen believes that Mia is not his superior. Leventhal gave Chen freedom to expand the Levendary business into China with little guidance or instruction.\r\nTo have a new CEO enter the business Chen exit not feel the need to respect Mia, as he still believes his true superior is Leventhal. In addition Chen, while he is from the Chinese culture, had many experiences and training in the United States. because it can be seen that Chen was of American culture and acted as such. The United States had a low score on the Power Dist ance so while Chen is with the Chinese branch of Levendary he still has the American cultural values. Uncertainty Avoidance\r\nUncertainty Avoidance looks at the way that culture embraces uncertainty. With a low ranking in the Chinese culture it is patent that this country looks at laws as flexible. This is seen in Levendary China as the standards between all the restaurants vary and are different from the brand standards\r\nthat are seen in the United States Levendary stores. In addition the difference in accounting practices can be seen. The China division was very lenient about their report of finance to the US stratum.\r\nIndividualism vs. Collectivism\r\nThis dimension looks at how individuals think and act, if it is for the greater good or if it is for their own well-being. The Chinese culture looks out for the group when making finalitys. This is present in the case when Chen disrespects Mia Foster. He antecedently considered Leventhal to be his group and when Mia takes Leventhalââ¬â¢s position thus he does not recognize her as an insider. This results in his mistrust of Mia and her authority within the Levendary Café company.\r\nMasculinity vs. Femininity\r\nThe Chinese culture has high ranking in this and is seen through Chenââ¬â¢s demeanor. He is very competitive and is eager to be successful. This is seen through his barrack to keep his position with Levendary China and the fast tread in which he opened the stores in China. In addition his actions of being very abrasive with Mia Foster is because he feels threatened that she is trying to take over his position with Levendary. He had never had his business interfered originally by anyone from the Denver Headquarters so he regurgitate his back up when Mia started to interfere with how he was running his operation.\r\nLong Term Orientation vs. misfortunate Term Orientation\r\nLong Term and niggling Term Orientation looks at how a culture is prepared for the afterlife. The Chinese culture is very rivet on planning for a long-term time to come. This dimension demonstrated the American culture that Chen must have picked up on his time in America. With his time managing the Chinese division of Levendary, Chen was very short sighted and opened up a large amount of stores in a short period time. Instead of formulating a business plan, which would back up growth for the future of the business, Chen did not have one and was simply opening businesses when he found an available location.\r\nParent Company vs. Subsidiary\r\nIn this case, the parent company would be Levendary Café U.S. operations and the subsidiary would be Levendary Café China operations. In terms of restaurant size, U.S. restaurants range from 2,500-4,000 square feet. China restaurants are smaller in size; they range from 500-1,500 square feet. These results in less staff needed for China restaurants, roughly 13-20 staff members. The U.S. restaurants need about 24-26 staff members. The larger U.S. restaurants are able to accommodate more customers; they normally have 84-120 seats and can serve anywhere from 560-3,210 guests per day. Due to smaller size, China restaurants have a maximum of 80 seats currently and can serve 260-430 guests per day.\r\nIn terms of menu options, the only item that is offered in both the U.S. and China is the chicken sandwich. The Suburban U.S./Denver restaurants make more revenue and have a larger square footage then the China restaurants. However, the China restaurants have higher average revenue per square foot. Restaurants in Beijing make $537.33 revenue per square foot and restaurants in Shanghai make $576.00 revenue per square foot. The Suburban U.S./Denver restaurants make $531.50 revenue per square foot. A chart can be seen below which clearly expand the difference between the parent and subsidiary company.\r\nAlternatives and testimonials\r\nAlternatives\r\nMia Foster is left with a very difficult purpose at the end of the Levenda ry Café case study. As the new CEO of the company she has to make a decision that ordain result in pro breakability for the company and chose an action plan that ensures long-term success for the business. As such that are a variety of alternatives that Mia Foster go away have to chose from in order to move forward with the company. The following list presents the many alternatives that should be considered: 1. Shut down all operations and simply stress business in the United States. The China division stores look and feel vary from what the Levendary stain is trying promote in their US Division. In order to continue with the stores in China then restoration get out need to be sinless to all the stores. Mia Foster leave need to determine if the China division profits are outlay the renovations and continuation of Levendary China. 2. Fire Louis Chen and hire a new theater director for the China Division. Louis Chen has proved himself as a capable entrepreneur and someo ne who is knowledgeable of the Chinese retail market. However he lacks communication skills, which was noticeable through the expansion of 23 Levendary shops in China that do not fit with the brand propose.\r\nChen is also extremely confrontational and may not be the best fit with the new CEO, Mia Foster, as he already had reinforced a rapport with Howard Leventhal, the previous CEO. If Louis Chen cannot powerful function and happen with the US Levendary division then he may need to be replaced by someone with a fresh perspective on the business. 3. Hire a management firm to manage the China Division of Levendary. It is apparent through the case study that the US Division of Levendary has not been able to communicate in an effective manner with an international branch of their company. The Hofstede Dimensions that were listed above demonstrates the cultural differences that separate the two branches of Levendary. With no cultural training Mia Foster and the US Division are not co mmunicating powerful with Louis Chen. An alternative to the situation would be to hire a management firm to look after the China division. A management firm with International experience would be a solution to the communication problem because they would understand how to conduct business while ensuring good communication.\r\n4. Create a separate division of Levendary for the China stores. The Levendary stores in China are off brand from the original concept that is seen through out the United States. This is largely due to the fact there is limited communication because the key players in the United States and Louis Chen in China. In order to fix this problem it would be wise to bring the structure that deeds so well in the United States and reprize this order in China. With 23 stores in China, Levendary will need a separate branch in China, as it will provide structure to that side of the business. With more deporting players in China, asides from Louis Chen, then Levendary wi ll be able to maintain the brand and in addition, more maintenanceing theater directors will ensure that communication is maintained between the US Division and the China Division. 5. Make a joint back with TATA conference to expand into China. The TATA Group is a ââ¬Å"global enterprise headquartered in India, and comprises over 100 operating companies, with operations in more than 100 countriesââ¬Â (TATA, 2015).\r\nTATA has operating companies in China and as such they will be able to reduce the large operating costs that Levendary China is currently experiencing. As noted in the Analysis and Evaluation section, the operating costs are very high. Entering into a joint venture with a company who has established infrastructure will help eliminate these costs and allow Levendary to append their profits for the first couple of years. In addition the joint venture will allow Levendary to be partnered with people who are culturally aware and make cultural intelligence. 6. Repl ace the US Division of import Operating military officer, Nick White. It was easy to rank that communication was a large issue between the US and China Division Levendary.\r\nIt is easy to target Louis Chen as the main culprit of this issue as he was combative and disrespectful to Mia Foster. However the agitate can also be placed onto the coo of the US Division, Nick White because he was trusty for keeping communication with China and overseeing the brand work out in China. Nick White clearly let this responsibility go and as a result the China Division does not reflect the US vision for Levendary. If someone has to answer for the mistakes that were make in China than perhaps it should not be Louis Chen but instead it could be Nick White.\r\nRecommendation\r\nAfter evaluating all of the above alternatives for Mia Foster and Levendary Café to play along it was decided that the best alternative would be number 4, create a separate division of Levendary for the China stores. This alternative includes renewing the contract for Louis Chen and brings more passenger vehicles to China to help grow Levendary in the China market with the vision and brand propose of the US Division. Levendary in the United States can contribute a large portion of their success to their hierarchal structure as it allowed for proper communication and good reporting methods. If Levendary China were to create a China Division then it would allow for better communication between the United States and China and Chen would have the nurse he needs to ensure the brand image is seen between all stores.\r\nAction Plan\r\nIn order to properly implement the alternative that was give tongue to above, an action plan is needed. The action plan is detailed below through three different stages. The Short Term Plan looks at what the business should do in one years time, the mean(a) Term plan looks at what the business should do in two to three years time and the Long Term plan encompasses a five year outlook. This is detailed below:\r\nShort Term:\r\n1) The first critical step that needs to be taken is to ensure that proper communication starts immediately between Mia Foster and Louis Chen. If the two parties were to sit together and put all of their issues out then they can sort their current problems. Starting with good communication between Foster and Chen will ensure that it continues into their future business dealings.\r\n2) Renew the contract with that Louis Chen has with Levendary China. Louis Chen has proven to be a valuable addition with Levendary Café as he knows the retail market and is ardent about the work that he is doing. While it is plausible that Chen did not complete his work in a successful manner, he was with out jump and was given little direction and free reign from the former CEO, Leventhal. With support and proper structure Chen should be able to work within these constraints. Therefore it can be seen that his contract should be renew for another term with the stipulation that Chen will be working underneath other Levendary managers in China.\r\n3) Denver Headquarters will need to create a business plan for their operations in China. With 23 locations currently in China they will have to decide which locations needs renovations and if all 23 should be maintained. By restructuring the current operations in China, Levendary Café will have a more think plan that will allow for the China operations to strive. If the Denver Headquarters were to work with Chen and use his knowledge of the China market than they can join and develop a structured business plan.\r\n4) Once a proper business plan has been authentic Chen will need immediate support in China. By creating a separate China Division Chen will have the support he needs to standardize operations and reinvigorate the Levendary brand. Managers with cultural training should be placed into the new China Headquarters. Chen will be a regional Vice President howe ver a new top manager will be placed in this division who will be above Chen on the hierarchy and will be the direct contact between itself and Denver.\r\nMedium Term:\r\n1) Standardize operations all end-to-end the China Division. This includes a standardized brand image through all stores and a consistent menu. As with all locations in the United States there are set menu items in all locations with supernumerary items according to the region. Levendary China will need conduct market research that will allow them to understand menu staples that should be available in all locations. In addition regional specialties should be include on the menu. 2) In addition to the standardization of restaurant practices the accounting practices will also need to be redeveloped. As per Chinese law all contrary business enterprises must follow the Chinese Generally Accepted Accounting Principles (China Briefing , 2013). Levendary China must follow ââ¬Å"Accounting Standards for Business Enterp risesââ¬Â (China Briefing , 2013) and the Denver Headquarters should hire an international auditor who can then transfer all numbers to follow the US GAAP. 3) Monitor the new business plan for Levendary China and ensure that it is being properly followed and that brand standards are being maintained.\r\nLong Term:\r\n1) Mia Foster should monitor and evaluate China operations on a constant basis. This will ensure that communication is unbroken to a high standard and that the brand image remains constant. 2) Once operations in China find their place in the market, Levendary China should appoint a Chief Franchise Officer who will develop franchise opportunities in China. This will allow more stores to be built and the brand to have more exposure with less of a expense put on the company. 3) A re-evaluation of their foreign expansion should be completed. The company should decide if they would kindred to find other potential foreign markets where they could continue the growth of L evendary or if they should focus directly on their domestic growth.\r\nAdditional Questions\r\n1. As it relates to the case, explain what this transportation implies: An old mentor had once told Foster that there were three types of managers in a new businessââ¬â¢s evolution to greater scale: the ball of fire, the local baron, and the professional manager. All three types could be entrepreneurial in spirit, but not all were as well suited for the various stages of a businessââ¬â¢s growth. Chen was clearly a go-getter who had evolved to become a local baron. The question in Fosterââ¬â¢s mind was whether he could pitch contour to become a professional manager. Before state the question of whether or not Louis Chen can become a professional manager, it is important to identify the characteristics of one. The intervention in class brought to light that a professional manager is someone that has an understanding of the long term goals of a company, understands the value of standardization among all locations and understands the value and importance of brand image. A professional manager should also be educated and trained; furthermore, this individual needs to assume the government agency of liaison and understand top managementââ¬â¢s goals and communicate this information to his employees while collecting their feedback.\r\nLastly, the class discussion brought to the surface that a professional manager should have extensive core knowledge on how the company should operate. Further research has shown that a professional manager should know how to plan, organize, blend in and control all the efforts of his/her employees to equilibrise the companyââ¬â¢s values and standards (Sandeep, 2013). Howard Leventhal chose Louis Chen for his role because of Chenââ¬â¢s energy and enthusiasm. On a personal level it reminded Leventhal of himself at a junior age. Howard had told Chen to establish a strong market position as a base to in conclusion fr anchise outlets throughout China with the instructions to ââ¬Å"do the right thing by the conceptââ¬Â but was given the freedom to operate the restaurants as he saw fit (Han & Bartlett, 2013). To enter the market in China Chen said himself ââ¬Å"We unsloped have to be flexibleââ¬Â¦Chinese eat few dairy products, so we should downplay our lay off soupââ¬Â¦most people arenââ¬â¢t acquainted(predicate) with turkey, but they love chicken, so weââ¬â¢ll align the menu just as we do in the Statesââ¬Â (Han & Bartlett, 2013). Chen believed that Levendary could succeed if it adapted its food and concept. harmonize to Merriam-Webster Dictionary a go-getter is a person who works very hard and who wants very much to succeed (Encyclopoedia Britannica Company).\r\nChen demonstrated the characteristics of a go getter as he opened up the first Levendary Café only three months after returning from Denver. This location was a corner ground floor location in a new high-r ise office building and the concept of the restaurant was prominent and luxurious. This restaurant was positioned as casual dining with table service and higher prices than local fast food concepts (Han & Bartlett, 2013). This location proved to be a hit among the white-collar employees working in the building. Because of competition Chen was forced to move quickly to purchase locations for the be restaurants and in the first year managed to secure thrill locations for good prices and grow the chain to 23 restaurants. because Chen demonstrated he was a local baron with his in depth knowledge of the Chinese market and was familiar with the neighborhoods in Shanghai and Beijing; his real estate knowledge was a major(ip) asset for the Levendary brand. He said it himself that he was in the trenches running 23 restaurants that he had built by reading market needs and sending opportunities (Han & Bartlett, 2013).\r\nBased on the information collected from the case it does not a ppear that Chen could develop into a professional manager. Because Chen wasnââ¬â¢t given any direction, he took it upon himself to change the concept, the look and feel and the menu items of Levendary Café. However, the way he handled Mia Foster and her colleagues from Denver and found on the definition of a professional manager Chen canââ¬â¢t develop into a professional manager and Levendary should look for someone to lead the China team while he continues to focus on the 23 restaurants that he has already built.\r\nChen also became very defensive when Mia tried to communicate with him and based on the definition of a professional, he should be open to listen to their suggestions and input and adapt them to Levendary in China. If Chen had the instincts of a professional manager he would have taken it upon himself to contact his colleagues in Denver to update them on the progress he was making in China and should have taken the standards and values of Levendary Café and applied them in China because that was his responsibility. To become a professional manager Chen would have to see the value of standardizing all the restaurants; however he did provide a great platform for the future growth of Levendary in China and should be kept on the team with certain responsibilities and be made aware of the expectations from Mia Foster.\r\nWorks Cited\r\nAgriculture and Agri-Foods Canada. (2010). Health and wellness Trends : U.S. Market. Ottawa: Government of Canada. Bartlett, C., & Han, A. (2013). Levendary Cafe: The China Challenge. Boston: Harvard Business School. China Briefing . (2013, February 5). China GAAP vs. U.S. GAAP and IFRS. Retrieved February 10, 2015, from China Briefing: http://www.china-briefing.com/ intelligence information/2013/02/05/china-gaap-vs-u-s-gaap-and-ifrs.html China Briefing. (2014). Retrieved February 10, 2015, from China GAAP vs. U.S. GAAp and IFRS:\r\n'
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