Innovation, Challenge and Development: Universities in China
Levandary cafe - The china challenge
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Transcript of Levandary cafe - The china challenge
Levendary Café’: The China Challenge
Presented By: Ansh Aggarwal
Kuhu Pathak Varun Nigam
Difficult road for Mia Foster, New CEO
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems Plan of Action I Recommended Approach I Conclusion
Lack of
internal mgt exposu
re
Wall street’
s confidence
Stock Price
Chen’s Attitud
e
China’s Local taste
GAAP Cost
Company OverviewIntroduction I Company Overview I Market Analysis I Industry Analysis I ProblemsI Plan of Action I Recommended Approach I Conclusion
- Mia replacing departing founder/CEO of the company
- 3500 quick casual
- Franchised- Publicly traded- Flexible
marketing and menus in America
- Domestic demand
- High quality fast food
- Customer oriented policies
- Risk taker - Organic
ingredients- Keeping up to
date (CCO)- Interior design
Forget today’s profit. Have a positive impact on customers
U.S.A
Market Analysis
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended Approach I Conclusion
Increasing GDP
Stock Market
Speculation
Lucrative Market
Sticking to strategy of internation
al expansion
To check the
untapped potential
Success of competitors like KFC , Mc Donald
Local market
Saturation
Why China ?
Industry Analysis
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended Approach I Conclusion
China :Food intake is increasingEating habits are different than AmericansLargest producer and consumer of Rice
Q1) What is your Evaluation of the way Levendary Café has entered the China Market?
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended Approach I Conclusion
• The organization foundation- Blending Concepts and Operations
Operation
• Franchise • Business
development
Administrative staff groups
• Concept• Marketin
g• Food
Leaping into china
Louis Chen, a strong market position. Right concept, flexible, bright future.
Expanding: The InvestigationChina was conducive for investment, population and GDP growth
An affluent middle class, foreign fast food companies attracted the most
attention.
Serving the U.S marketCustomer delight, customer meet request
Local menu adaptions, the American consumer, evolving menu choices.
Q2) What changes should Mia Foster make? Specifically, what should she do about Louis Chen? What changes would you propose at headquarters?
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended Approach I Conclusion
Changes Mia Foster should make
• Financial Reporting - There should be a China HQ to take care of the Financials reported in Chinese format.
US HQ
China HQ
China restaurant 1
China restaurant 2
China restaurant n
Changes Mia Foster should make
• Restaurant design – Restaurant design should be consistent with US restaurant designs. Restaurants can be small or big to suit the location.
• Food Menu – McDonald’s style menu design should be used.
• Louis Chen – Foster can try to make him understand that standardization is important and can be achieved.
Q3) Prepare a specific action program for Foster to help her deal with the need for continued growth in China.
What should be the agenda for her meeting with Chen?
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended Approach I Conclusion
• Levendary Café is a MuR Business.• There seems a missing link between the two
cultures that is not being understood by headquarters .
• Heirarchical Structure:• USA: Top -Down Approach.• China: Bottom- UP Approach.
• The adaptation China requires for a business from the USA.
• 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.
Recommended Approach
Introduction I Company Overview I Market Analysis I Industry Analysis I ProblemsI Plan of Action I Recommended Approach I Conclusion
Follow KFC’s and other successful American restraunts approach
- Motivate & recognize - Train the employees
Transparency by setting up processes
Team for Chen
Conclusion
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems Plan of Action I Recommended Approach I Conclusion
Following proposed strategyConfident about the meeting with ChenFlexible Marketing StrategySatisfying all : Wall street, Chen and
fosterTrade offs