Levendary cafe case study essay

Introduction

Levendary Café has grown from being a mere restaurant that offers soup, greens, and casse-cro?te in Colorado to a multibillion quick casual chain that operates 3500 stores about the U. S i9000. The owner of the Levendary Café, Howard Leventhal managed to establish a good market situation for the Levendary Café in the U. S and succeeded in creating a $10 billion business design. The Café has two important factors that distinguish it from its competitors, that have been offering healthy soup, salads, and sandwiches, as well as, featuring exceptional services for their friends in a genuine, and friendly manner.

The company’s philosophy is usually satisfying customers’ needs by simply trying to impact their lifestyle and look for the long term profit as encouraged by founder, Howard Leventhal to his staff. After 32 years of experience operating in the U. H domestic market and after a slowdown inside the company’s home growth, the company considered spending its operation internationally, more precisely in China, a promising market that had shown a strong annual GDP growth of 14.

5% in prior years, as well as, the occured number of central class profits.

The responsibility of overseeing the China procedure was given to Louis Chen, a Stanford MBA graduate student, after a two-year contract agreement between Leventhal and Chen in September 2009. 12 months and 6 months into the two-year term agreement, Mia Engender was named the new CEO of the Levendary Café in February 2011. The public press viewed the new CEO as being inexperienced inside the international marketplace in addition to a few doubt regarding Foster’s capacity to build a multi-national brand. Louis Chen opened up the first store in Shanghai in, January 2010; the first area was in a higher traffic business area. Within a year John Chen was able to allocate twenty-two additional locations for the Levendary Café, due to his strong understanding of the country’s geography wonderful ability to speak both The english language and Mandarin Chinese.

However , after a report on China’s procedure by the fresh CEO, Create was not satisfied with the way the procedure was managed in China, she pointed out that the accounting report was not formatted in accordance with U. H. Generally Acknowledged Accounting Concepts (GAAP). This was the turning point in the relationship between Foster and Chen, who had not met in person. The new CEO decided to look more tightly into the Cina operation and planned a trip to China to fulfill with Chen for the first time. Recognition of Key Issue

The truth presented several main issues that Levendary Café faced during the expansion in to the Chinese market. From the circumstance the main issue was identified as: the Levendary brand graphic is not really consistent in the usa and China and tiawan because there is an absence of communication between the parent company and subsidiary. The adding factors to this were the management styles, the lack of standardization, the cultural differences as well as the limited knowledge in the overseas market. These issues have been detailed below.

Management style

The Chinese procedure lacks close mentoring and evaluation by simply former CEO Leventhal, who have gave an excessive amount of freedom to Chen with a very hand off administration style. “Do right by concept” was your expression that Chen acquired as a guideline for how to strategize for the Cina operations. As a result, Chen was featuring little data to Colorado headquarter about how exactly the procedure is been able in Chinese suppliers, which is different from Foster’s management style who is apparently more strenuous than the former CEO. There were no very clear strategic policy for the procedure in Chinese suppliers, when Chen was asked about a plan he mentioned that he had not any plan. Standardization

Foster is somewhat more process driven and valued standardization, the girl believed that the China operation should align with Levendary Café standards in the U. S regarding reports, and show and feel of the Café. However , Chen had a diverse approach where he was aiming to open as many stores when he could within a short period of your time, paying tiny attention to the U. H standardized business design. The issue of standardization clearly was another problem between Denver headquarters and Chen, when he insists in pushing what he thinks is right and resist what headquarter is definitely asking him to do. Ethnical Difference

Every time a company is usually entering a brand new market it needs to take into consideration the cultural variations between countries. Based on the truth study evaluation, the difference involving the two countries in terms of eating at restaurants habits and eating preferences seem never to be comprehended by the Denver colorado headquarter. Hawaii headquarter feels that it may enforce the same business model applied in the U. S to its stores in Cina, regardless of local preference. In addition , Foster generally seems to lack information about the Chinese language culture mainly because she was not familiar with the marketplace in China and tiawan, as the lady had no experience working internationally. There were a lack of cross-cultural communication between Chen and Foster; though, Chen experienced experienced equally cultures while studying in another country in the U. S. Limited experience inside the foreign marketplace

There was a lack of international marketplace experience since the China marketplace was the second market, Levendary Café joined aside from a partnership in Dubai. Due to this lack of knowledge Leventhal dependable Chen with implementing the needed activities to grow a successful business in China. Leventhal entrusted Chen with this presented his solid knowledge of the industry in China and tiawan. Leventhal would not understand that going into a foreign marketplace would take more than knowledge for the country; it might also take strong communication and managing skills.

Evaluation and Analysis

Detailed Analysis

The operational examination will cover the company’s internal abilities and failings as well as their external opportunities and threats. The SWOT analysis will be on Levendary Café U. S. procedures. This record will also take a look at problems with standardization in the Chinese suppliers operations. Levendary Café provides gained much strength above its 32 years of business (Bartlett & Han, 2013). The company has created brand identification around the United states of america with its 3, 500 café’s (Bartlett & Han, 2013). There is good brand uniformity across every 3, 500 café’s because of standardization in the Levendary item. Each café has a similar design and atmosphere and give the same key products. Levendary Café’s standardization has allowed the organization to business their product and resulted in expansion throughout the United States. Currently, two-thirds with the company’s cafés are franchised (Bartlett & Han, 2013). Each area also offers diverse menu things from one and other, on top of the core menu items.

For instance , fewer soups are offered inside the southern areas of the United States (Bartlett & Ryan, 2013). This adds to the industry�s strong organization culture of “delighting the customer” and creating a personalized experience for every customer (Bartlett & Ryan, 2013). Levendary Café detailed and rigid operating requirements, policies and practices has allowed for tight control of shop level expenditures and close monitoring of operations (Bartlett & Ryan, 2013). The founder, Howard Leventhal, can be an entrepreneur whom wasn’t worried to take dangers (Bartlett & Han, 2013). His willingness to take worked out risk triggered the company applying organic grains in its bread and hormone-free naturally brought up meats (Bartlett & Ryan, 2013). Levendary Café started to be part of the growing trend of shoppers wanting healthier and more all-natural menu alternatives. 81% of american citizens over the age of 50 have become more conscious of the actual eat (Agriculture and Agri-Foods Canada, 2010).

Levendary Café target market is white-collar specialists and upper-middle-class women (Bartlett & Ryan, 2013). Their choice to shift to healthier menu options is meeting all their target marketplaces change in tastes. A fully scaled test home and meals science laboratory likewise allows the corporation to meet the changing likes of their consumers (Bartlett & Han, 2013). The food crew, which includes experienced chefs in the Culinary Institute of America, is responsible for quality kitchen and laboratory, and also conducting quality checks around all three or more, 500 café’s (Bartlett & Han, 2013). Levendary Café has a great organizational framework. Each educated and very experienced member of the administration team understands their duties and who have responds to them. There is also a clear electric power structure.

Finally, Levendary Café has a good training program for their retail workers called Operating Tools and Learning (OTL) (Bartlett & Han, 2013). OTL models operating requirements and provides employees with elements to enhance their learning (Bartlett & Ryan, 2013). These strengths possess resulted in Levendary Café as being a successful organization in the United States. Levendary Café also offers internal weaknesses. The U. S. functions are beginning to slow and investors will be losing confidence in Levendary Café (Bartlett & Han, 2013). This is one of the reasons the company chose to broaden into Cina. However , there is absolutely no separate international division in the Denver Headquarters and the new CEO, Mia Foster, is lacking in international management experience. Even though Levendary Café personalized contact has led to replicate business, it is additionally considered a weakness because it slows down the velocity of service. Currently, we have a lack of manufacturer recognition in China intended for Levendary Café.

Finally, monetary reports from China are becoming submitted in their own structure and the U. S. operations are then simply “massaging” those to apply the U. S. Generally Accepted Accounting Rules (GAAP) (Bartlett & Han, 2013). These are generally all disadvantages for Levendary Café. Just about every company looks external options and threats. As home business to get Levendary Café is beginning to slow, the organization must take a look at opportunities to remain successful. Firstly, Levendary Café is a part of an appearing category in the restaurant industry called the “quick casual”. Another prospect is to expand internationally. Besides the development into China, Levendary Café is tinkering with a licensing deal in Syria (Bartlett & Han, 2013). Some potential threats to get Levendary Café are the growing food costs and alterations in foodstuff trends. Foodstuff costs are beginning to rise as a result of a variety of factors such as weather change and a rise in oil prices (Oxfam Canada). A change in food developments is a potential threat for virtually any restaurant.

When a restaurants’ product does not meet consumer’s tastes, after that revenues will decrease. Levendary Café should look at their external possibilities and risks. Levendary Café China procedures has three areas that need to be standardized: appear and feel of the cafe, menu choices and accounting practices. First of all, all twenty three restaurants have got a different design and style and ambiance. The initial location to spread out was comparable to Levendary statutory provisions, but the second location in Shanghai was a takeaway table with no with capacity of (Bartlett & Han, 2013). Denver Hq should understand that they cannot put the same cafe that is inside the U. H., in Chinese suppliers. There should be extensive market research done on design and style and atmosphere that would be good in China. Another option should be to follow what Café Coffee Days did in India. Café Caffeine Days provides three distinct formats of stores, including a smaller get and get coffee shop into a larger café with areas to take a moment.

Levendary Café could have distinct formats for restaurants; however each format would have a similar atmosphere to help standardize the brand name in Cina. Secondly, menu options will be vastly diverse across almost all 23 locations. For example , the Shanghai Koreatown offers dumplings with a normal check of $2 (Bartlett & Han, 2013). The Beijing Charge location provides sandwiches and soups with an average verify of $12 (Bartlett & Han, 2013). Some menu items had been offered at almost all locations, like the chicken meal. A solution to standardize the menu is to do something just like the U. T. operations. Every locations will offer the same core menu items, yet each region would have a lot of different menu items that range from one another.

Many chefs that have been trained in China and educated upon different local tastes ought to help create the core menu items and the diverse regional products. The final place that must be standardized is accounting practices. The current financial reviews are becoming sent to the U. T. and massaged to meet U. S. GAAP (Bartlett & Han, 2013). All corporations in Chinese suppliers are required to use the Chinese Accounting Standards (CAS) such as the Accounting System for Business Enterprises (ASBE) (China Conjonction, 2014). ASBE has identical standings for the U. S i9000. GAAP as well as the International Monetary Reporting Criteria (China Briefing, 2014). A worldwide financial analyst should be employed in order to manage both China and the U. S. financial reports and audits. Financial Analysis

Monetary analysis of the U. S. and Chinese suppliers operations offered information on Levendary Café’s current financial position. The cash flow statement intended for China can be seen below. In China, their particular food and paper cost is at 51%, which can be caused by their high number of foodstuff options on the menu and the lack of distribution program set up. When a core menu is created plus more locations set out to open, Levendary Café should be able to take advantage of economy of size and lower food and paper expense. China has a high guests cost in 24%. This might be a result of spending extra to get the better locations. In addition the Chinese real estate market is very large meaning that any kind of location is incredibly expensive.

During the case study the China real estate was going through a “golden decade” (Ranasinghe, 2014) which can show the higher occupancy cost the fact that Chinese division occurred in comparison to the United States. The pre-opening expenses (12%) as well contributed to the losing of income inside the first season for Chinese suppliers. After the 1st year of business, Chinese suppliers had a decrease of $143, 620. China businesses also have a decrease marketing expense. Marketing is mostly not a huge expense in China as the local inhabitants listens more to radio advertisement, which can be cheaper, and rely on recommendations. Income Statement- China

The financial affirmation of the U. S. functions, which can be viewed below, demonstrates that Levendary Café generally comes after industry specifications. Their foodstuff and supply cost are somewhat lower than market standards. Generally, food and provide costs are about 29% of total sales, although Levendary Café food and supply cost are in 24% of total revenue. Occupancy costs for Levendary Café will be about 4% lower than market standards. Levendary Café spends more in marketing after that industry criteria, about 2% higher. Profits Statement- United States

Cultural Examination

**The above information was sourced in the Hofstede Middle Website (Hofstede Centre, 2010). **

By completing a social analysis around the two countries, United States and China, it was easy to determine how the important thing issue, being communication, came to exist. Geert Hofstede identified five different dimensions that illustrate how “values in the workplace will be influenced simply by culture” (International Business Center, 2014). The different dimensions that Geert Hofstede identified happen to be: Power Length, Uncertainty Avoidance, Individualism or Collectivism, Masculinity vs . Beauty, and Long-term Orientation versus Short Term Alignment.

Through applying these five dimensions you can evaluate how each traditions approaches these kinds of dimensions and how it affects them in the workplace. The rating beside every dimension decides how much value they place towards each dimension. It really is interesting to notice that upon only one dimension, Masculinity or Femininity, the two countries include a comparative score. It truly is with these kinds of differences that communication problems between the two countries is visible. Power Length

The Power Range Dimension looks at the relationship that individuals hold with others because country. China scores very highly about this dimension because people value their managers and do not take action outside of their ranking in society. In regards to the case study it truly is confounding that Chen is unobservant of his managers power becoming Mia Promote. In the case Chen is constantly rude to Mia and questions her authority. This is often attributed to two different factors. The first of which can be that Chen was at first hired simply by Howard Leventhal therefore Chen believes that Mia can be not his superior. Leventhal gave Chen freedom to expand the Levendary organization into China with very little guidance or perhaps instruction.

To get a new CEO enter the business Chen will not feel the need to respect Mia, as he nonetheless believes his true outstanding is Leventhal. In addition Chen, while he’s from the Chinese culture, acquired many experiences and trained in the United States. So that it can be seen that Chen was of American lifestyle and acted as such. The us had a low score for the Power Range so whilst Chen is to use the Chinese branch of Levendary he still has the American cultural beliefs. Uncertainty Prevention

Uncertainty Prevention looks at just how that tradition embraces uncertainty. With a low ranking inside the Chinese traditions it is obvious that this region looks at laws and regulations as flexible. This is seen in Levendary China as the standards between all of the restaurants differ and are different from the brand requirements

which might be seen in the United States Levendary shops. In addition the in accounting practices is seen. The Cina division was very lax about their confirming of financing to the US Division.

Individualism vs . Collectivism

This dimension looks at just how individuals think and action, if it is pertaining to the greater good or if it is for their individual well-being. The Chinese traditions looks to the group when making decisions. This is proven in the case once Chen disrespects Mia Engender. He recently considered Leventhal to be his group and when Mia usually takes Leventhal’s location then this individual does not recognize her since an insider. This results in his doubtfulness of Mia and her authority inside the Levendary Café company.

Masculinity vs . Beauty

The Oriental culture features high rating in this and is also seen through Chen’s demeanor. He is very competitive and is eager to become successful. This is noticed through his urge to hold his location with Levendary China and the fast pace by which he exposed the stores in China. Additionally his activities of being extremely abrasive with Mia Promote is because he feels vulnerable that she’s trying to dominate his location with Levendary. He had under no circumstances had his business interupted before by anyone from the Denver Headquarters so he put his back up when ever Mia started to interfere with how he was working his procedure.

Long Term Orientation vs . Temporary Orientation

Permanent and Short-run Orientation discusses how a lifestyle is well prepared for the future. The Chinese culture is very centered on planning for a long term future. This kind of dimension demonstrated the American culture that Chen need to have picked up on his time in America. With his time managing the Chinese trademark Levendary, Chen was incredibly short sighted and opened a large amount of stores in a short while time. Instead of formulating an enterprise plan, which would encourage growth for the future of the business, Chen would not have one and was simply opening businesses when he identified an offered location.

Mother or father Company vs . Subsidiary

In such a case, the mother or father company would be Levendary Café U. T. operations and the subsidiary can be Levendary Café China functions. In terms of restaurant size, U. S. eating places range from two, 500-4, 000 square feet. China and tiawan restaurants are smaller in size; they range from 500-1, 500 sq ft. These brings about less personnel needed for China restaurants, about 13-20 staff members. The U. S. restaurants need about 24-26 workers. The larger U. S. restaurants are able to allow for more buyers; they usually have 84-120 seats and can provide anywhere from 560-3, 210 friends per day. As a result of smaller size, China restaurants have no more than 80 car seats currently and can serve 260-430 guests each day.

In terms of menu options, the sole item that is offered in both U. S i9000. and Customer the rooster sandwich. The Suburban U. S. /Denver restaurants produce more revenue and have a more substantial square footage then a China eating places. However , the China eating places have higher average income per square foot. Restaurants in Beijing make $537. 33 income per square foot and restaurants in Shanghai help to make $576. 00 revenue every square feet. The Suv U. S i9000. /Denver eating places make $531. 50 revenue per rectangular foot. A chart can be seen below which usually clearly specifics the difference between the parent and subsidiary company.

Alternatives and Recommendations

Alternatives

Mia Foster is left with a very challenging decision at the conclusion of the Levendary Café example. As the new CEO of the company she has to make a decision that will result in profitability for the company and chose a task plan that ensures long-term success for the business. As a result that are a number of alternatives that Mia Create will have to select from in order to move forward with the company. The following list shows the many alternatives that should be deemed: 1 . Shut down all businesses and exclusively focus organization in the United States. The China section stores appear and feel vary from the particular Levendary Manufacturer is trying encourage in their US Division. In order to continue with the stores in China then restoration will need to be completed to all of the stores. Mia Foster will have to determine if the China split profits will be worth the renovations and continuation of Levendary China. 2 . Flames Louis Chen and seek the services of a new director for the China Section. Louis Chen has tested himself as a capable businessman and someone who is knowledgeable of the Chinese housing market for full retail list prices. However this individual lacks connection skills, which has been noticeable throughout the expansion of 23 Levendary shops in China which often not fit with the brand photo.

Chen is also extremely confrontational and may not be the very best fit with the new CEO, Mia Foster, as he already had built a rapport with Howard Leventhal, the previous CEO. If John Chen cannot properly function and communicate with the US Levendary division in that case he may need to be replaced simply by someone having a fresh point of view on the business. 3. Work with a managing firm to handle the Cina Division of Levendary. It is obvious through the case study that the US Division of Levendary has not been capable to communicate in an effective manner with an international branch of their very own company. The Hofstede Sizes that were as listed above demonstrates the cultural differences that individual the two limbs of Levendary. With no social training Mia Foster and the US Department are not connecting properly with Louis Chen. An alternative to the specific situation would be to retain the services of a supervision firm to maintain the Chinese suppliers division. A management organization with Intercontinental experience is a solution to the communication problem because they might understand how to carry out business although ensuring great communication.

4. Create a individual division of Levendary for the China shops. The Levendary stores in China will be off company from the first concept in the world through out the United States. This is largely due to the fact there is certainly limited communication because the key players in the usa and Paillette Chen in China. In order to fix this issue it would be smart to bring the structure that works as good in the United States and duplicate this kind of order in China. With 23 retailers in Chinese suppliers, Levendary will be needing a separate branch in China and tiawan, as it provides structure to that side of the business. With more supporting players in Cina, asides coming from Louis Chen, then Levendary will be able to maintain the brand and moreover, more helping managers will make sure that interaction is managed between the ALL OF US Division plus the China Split. 5. Generate a partnership with ACARA SUSUNAN ACARA Group to expand into China. The TATA Group is a “global enterprise based in India, and contains over 75 operating firms, with operations in more than 100 countries” (TATA, 2015).

TATA offers operating companies in China and as such they are able to decrease the large working costs that Levendary China is currently encountering. As observed in the Research and Evaluation section, the operating costs are very high. Entering into a partnership with a firm who has set up infrastructure may help eliminate these types of costs and permit Levendary to boost their profits for the first couple of years. In addition the joint venture allows Levendary to become partnered with people who are culturally aware and possess ethnic intelligence. 6th. Replace the US Division Key Operating Officer, Nick White. It was easy to identify that conversation was a huge issue between the US and China Section Levendary.

It is easy to target John Chen because the main culprit of this issue as he was combative and disrespectful to Mia Foster. However the fault can also be placed onto the COO of the US Section, Nick White-colored because he was responsible for keeping communication with China and overseeing the rand name image in China. Chip White obviously let this responsibility proceed and as a result the China Split does not indicate the US vision for Levendary. If someone has to response for the mistakes which were made in Cina than probably it should not really be Paillette Chen although instead it may be Nick Light.

Recommendation

Following evaluating all the above alternatives for Mia Foster and Levendary Café to follow it was made a decision that the best alternative can be number some, create a distinct division of Levendary for the China shops. This alternative includes renewing the get Louis Chen and delivers more managers to China to help increase Levendary inside the China market with the eye-sight and company image of america Division. Levendary in the United States may contribute a big portion of all their success for their hierarchal structure as it brought about proper communication and good reporting strategies. If Levendary China would be to create a China Division then it would allow pertaining to better conversation between the United States and China and Chen would have the support he needs to guarantee the brand image is seen among all shops.

Action Plan

To be able to properly implement the alternative that was mentioned above, a task plan is necessary. The plan of action is thorough below through three several stages. The Short Term Plan looks at what the business must do in one years time, the Medium Term plan examines what the organization should do in two to three years time and the Long Term plan encompasses a five year outlook. This is detailed below:

Short-term:

1) The first crucial step that needs to be taken should be to ensure that appropriate communication starts off immediately between Mia Engender and John Chen. In the event the two functions were to sit down together make all of their concerns out chances are they can sort their current problems. Starting with good communication between Engender and Chen will ensure that this continues within their future organization dealings.

2) Renew the contract get back Louis Chen has with Levendary China. Louis Chen has proved to be a valuable property with Levendary Café as he knows the retail market and is passionate about the task that he can doing. While it is debatable that Chen did not finish his work in a successful method, he was with no support and was given tiny direction and free rule from the former CEO, Leventhal. With support and proper structure Chen should be able to job within these kinds of constraints. So that it can be seen that his agreement should be renewed for another term with the stipulation that Chen will be working underneath various other Levendary managers in Chinese suppliers.

3) Denver colorado Headquarters will have to create a business plan for their operations in Chinese suppliers. With 3 locations currently in China they will have to decide which places needs restorations and if all 23 needs to be maintained. By simply restructuring the present operations in China, Levendary Café will have a more concentrated plan that will enable for the China operations to endeavor. If the Denver Headquarters would be to work with Chen and use his understanding of the China and tiawan market than they can collaborate and produce a structured strategy.

4) When a proper business plan has been produced Chen will be needing immediate support in China. By creating a separate China Split Chen may have the support he needs to standardize procedures and reinvigorate the Levendary brand. Managers with ethnical training must be placed into the brand new China Hq. Chen is a regional Vice President however a brand new top supervisor will be put into this section who will become above Chen on the structure and will be the direct speak to between by itself and Hawaii.

Medium Term:

1) Standardize operations every throughout the Cina Division. This can include a standardised brand photo through most stores and a consistent menu. As with all locations in the usa there are arranged menu products in all locations with special products according to the location. Levendary China and tiawan will need conduct market research that will allow them to appreciate menu staples that should be obtainable in all places. In addition local specialties should be included on the menu. 2) In addition to the standardization of cafe practices the accounting techniques will also need to be redeveloped. According to Chinese rules all foreign business enterprises are required to follow the Chinese language Generally Approved Accounting Principles (China Agglom�ration, 2013). Levendary China are required to follow “Accounting Standards for Business Enterprises” (China Conjonction, 2013) and the Denver Hq should work with an international auditor who can in that case transfer all numbers to adhere to the US GAAP. 3) Screen the new strategy for Levendary China and be sure that it is becoming properly used and that brand standards happen to be being managed.

Long Term:

1) Mia Promote should keep an eye on and examine China functions on a constant basis. This will likely ensure that interaction is kept to a substantial standard and the brand image remains frequent. 2) Once operations in China find their place in the market, Levendary China ought to appoint a Chief Operation Officer that will develop operation opportunities in China. This permits more stores to be developed and the brand to have more exposure with less of the expense place on the company. 3) A re-evaluation of their overseas expansion must be completed. The company should decide in the event they would like to find other potential foreign marketplaces where they could continue the growth of Levendary or if they should focus directly on their home-based growth.

Additional Questions

1 ) As it pertains to the case, clarify what this passage suggests: An old coach had once told Promote that there was three types of managers in a new business’s progression to greater scale: the go-getter, the neighborhood baron, as well as the professional supervisor. All three types could be entrepreneurial in heart, but not most were similarly well suited for the many stages of the business’s development. Chen was clearly a go-getter who had evolved becoming a local junker. The question in Foster’s brain was whether he can transition becoming a professional administrator. Before answering the question of whether or not Louis Chen can become a professional manager, it is vital to identify the functions of one. The topic in class taken to light that the professional director is someone that has an understanding of the long term desired goals of a company, understands the value of standardization among all locations and understands the value and significance of brand picture. A professional director should also end up being educated and trained; furthermore, this individual should assume the role of middleman and understand leading management’s desired goals and relay this information to his staff while collecting their opinions.

Lastly, the students discussion taken to the surface which a professional manager should have considerable core understanding on how the organization should work. Further research has shown which a professional administrator should know how you can plan, set up, lead and control all the efforts of his/her personnel to complement you�re able to send values and standards (Sandeep, 2013). Howard Leventhal select Louis Chen for his role due to Chen’s strength and excitement. On a personal level it reminded Leventhal of him self at a younger era. Howard acquired told Chen to establish a strong market situation as a basic to eventually franchise stores throughout Cina with the instructions to “do the right factor by the concept” but was offered the freedom to control the eating places as he found fit (Han & Bartlett, 2013). To the market in China Chen said himself “We just have to be flexible…Chinese eat couple of dairy products, and so we should downplay our cheese soup…most people aren’t familiar with turkey, nonetheless they love rooster, so we’re going adapt the menu just like we perform in the States” (Han & Bartlett, 2013). Chen believed that Levendary could be successful if it designed its food and idea. According to Merriam-Webster Dictionary a go-getter is a individual that works very hard and who wants very much to have success (Encyclopoedia Britannica Company).

Chen demonstrated you will of a proceed getter when he opened up the first Levendary Café only three months after returning by Denver. This kind of location was a corner beginning location in a new high-rise office building plus the concept of the restaurant was prominent and luxurious. This restaurant was located as informal dining with table services and bigger prices than local junk food concepts (Han & Bartlett, 2013). This kind of location turned out to be a hit among the list of white-collar employees working in the building. Because of competition Chen was forced to maneuver quickly to buy locations for the remaining eating places and in the first yr managed to protected prime places for good rates and grow the string to 23 restaurants. Then Chen demonstrated having been a local souverain with his in depth knowledge of the Chinese industry and was familiar with the neighborhoods in Shanghai and Beijing; his real estate knowledge was a major asset pertaining to the Levendary brand. He said this himself that he was inside the trenches working 23 eating places that he previously built simply by reading industry needs and sending options (Han & Bartlett, 2013).

Based on the information collected from the case will not appear that Chen may develop into a specialist manager. Since Chen had not been given any direction, he took it upon himself to change the notion, the look and feel and the menu components of Levendary Café. However , just how he handled Mia Engender and her colleagues from Denver and based on the meaning of a professional manager Chen can’t develop into a professional supervisor and Levendary should search for someone to lead the China and tiawan team whilst he is constantly on the focus on the 23 restaurants that he has already built.

Chen as well became incredibly defensive the moment Mia attempted to communicate with him and depending on the definition of any professional, this individual should be ready to accept listen to their particular suggestions and input and adapt those to Levendary in China. If Chen acquired the predatory instincts of a professional manager he’d have taken that upon him self to contact his colleagues in Denver to update all of them on the progress he was making in Cina and should took the standards and values of Levendary Café and used them in China mainly because that was his responsibility. To become a specialist manager Chen would have to view the value of standardizing all the restaurants; even so he performed provide a superb platform for future years growth of Levendary in Chinese suppliers and should be kept on they with certain responsibilities and be made aware of the targets from Mia Foster.

Functions Cited

Agriculture and Agri-Foods Canada. (2010). Overall health Trends: U. S. Marketplace. Ottawa: Federal government of Canada. Bartlett, C., & Ryan, A. (2013). Levendary Coffeehouse: The China Challenge. Boston: Harvard Business School. Cina Briefing. (2013, February 5). China GAAP vs . U. S. GAAP and IFRS. Retrieved Feb . 10, 2015, from China S�ance: http://www.china-briefing.com/news/2013/02/05/china-gaap-vs-u-s-gaap-and-ifrs.html China Briefing. (2014). Retrieved Feb . 10, 2015, from China GAAP vs . U. S. GAAp and IFRS:

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