Winning Global Taste Buds: v Levendary Café v
Hillary Tzeng
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Table of Contents
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Executive Brief
3
Decision Tree
4
Company Overview
Product Mix & Global Presence
Current Business Model
Value Chain
Competitive Advantages
Growth Imperative
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6
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Country Analysis – China
Economic Overview
CAGE Analysis
Target Consumers
Institutional Voids
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13
Industry Analysis – Multi-Unit Restaurants
Porter’s Five Forces
Market Attractiveness
Industry Trends
Competitor Analysis
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15
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17
Recommendations
18
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Executive Brief
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To reap the profits derived from possessing a strong brand image, quality customer service, and consistent company practices
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Many stores offer slight, local menu adaptations.
Global Presence
Levendary Café currently has over 3,500 stores in the United
States, 23 stores in China, and a partnership in Dubai. Its most immediate plans are to expand its store coverage in China to balance out its slowing U.S. growth.
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Maximizing Profitability Potential
Current Business Model
Tight Control of store expenses
& operations
Increased need for employees’ operating tools
& learning (OTL)
Raised
consumer demand Global scale Higher margins Speedy service
& order accuracy New franchises Royalty fees Reinvest
Branded grocery items
Volume
Profits
Negotiation power with suppliers Diversified global portfolio
Marketing programs New menu boards International expansion 6
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Coordinating Across All Operations
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Value Chain
Levendary Café’s operations touch upon the entire value chain of running a multi-unit restaurant. Its driving force for keeping the brand fresh originates in its R&D Concept group, while it maintains operating standards at its point-of-sale destination as part of the training enforced in Sales & Service.
R&D
- Concept group senses upcoming food trends - Maintains consistency with the slogan
“Tasty Fresh
Roma and Clint Underhill had both had a long day. They were the owners of a successful real estate
The Data that has been collected, read, and analysis was to determine Miguel’s strengths and challenges (weaknesses). According to Miguel’s Data his strengths are Phonemic Awareness, Phonics, and Vocabulary. In the phonemic awareness: The student is scoring very well in phonemic awareness/oral language. He was able to get 10 out of 10 in sounding out words. He was also able to
Mark volunteered to help with the community arts festival; he was supporting the not-for-profit organization as he had in the past. However, he did not know his good intentions as a volunteer would cost him his job as an assistant manager. The retail store’s phone number was printed in the festival advertising in error and ticket requests overloaded the phone lines, causing loss of business and annoyed the store manager. As a result, Mark was seen as the cause of the problems and terminated.
Jennifer is a 2nd grader being referred for possible learning disabilities in reading. Jennifer has always attended Sand Hill Elementary and has not repeated a grade. She is eight years old. She has been screened for vision and hearing problems and was found to have normal vision and hearing. Her teachers have described her as cooperative and likable. She does not exhibit behavioral problems.
Case Name The Smithson’s Mortgage Case Study Teams This case is designed to be conducted by a team of students. The discussion, questioning, and resolution of differences is an important part of the learning experience. Another significant advantage is the sharing of the workload in preparing the final case study report. Knowledge Background This case draws heavily on the material presented in Chapters 2 and 3 of Principles of Engineering Economic Analysis, 4th Edition by White, Case, Pratt, and Agee, particularly Section 3.4 (Principal Amount and Interest Amount in Loan Payments). To a limited extent it draws on concepts from Chapter 4 (Measuring the Worth of Investments), Chapter 5 (Comparison
Starbucks can follow some strategies to differentiate their product even more that will lead to vary their menu prices. For example, Starbucks might create “saving menu” by selling some products at a lower prices to attract even more customers. Also, Starbucks might take into consideration the strategies of opening “Starbucks carts” that open in smaller express places that don’t fit for a whole store. Those “Starbucks carts” will attract even more customers because it is easier to get access to. “Starbucks carts” may provide the customers with low cost products to draw larger market base. To be a best cost provider in the market will allow Starbucks to be the most attractive company in the coffee market internationally. Thus, Starbucks will have a competitive advantage over its rivals by fulfilling the needs of a huge customer base in the market, by providing a high quality products and provide products with the best costs.
Threat: Louis Chen, the VP in charge of Chinese business, is ruining the brand of Levendary Café. Customers come from all over the world. When they visit the store in China, they can tell that there is something wrong with the decoration and menu in the Chinese store. It will destroy the company’s reputation if they notice that the menu is totally different from what it is in the United States. There are Pizza Hut, Starbucks and other competitive American brands, which are growing steadily and widely. They will split the market share from Levendary Café.
Downsizing has become a commonplace strategy for organizations to adopt in an effort to cut costs, eliminate redundancies, and streamline organizational systems. Over the last 15 years, many organizations have engaged in downsizing more than once. Most companies have learned from the mistakes of the past, but some companies are still trying to use the same tactics today that were used in the mid 1980s, that leave employees reeling.
Starbucks is undoubtedly an international brand. The history of coffee traces back to Ethiopia, Africa, India, Arabia, and Europe, and has been traded abroad since the 11th century. Understanding the demand and widespread market for coffee, Starbucks has triumphantly capitalized both the domestic market, and the varied international markets as well. Possessing about 6,500 retail sites worldwide, Starbucks’ net is spread across thirty countries and has been found as one of the most recognized brands all over the globe in equality to McDonalds and Toyota. This organization’s ability to build an international brand has been unprecedented- particularly since it represents a specialty
In scope, all three of Mia Foster’s issues are interconnected. To tackle each individually will suffice the next issue starting with Louis Chen and the China operations. If she were to review Levendary Café’s foundation, along with the Board and COO – Lucian Leclerc, they will be reminded that they are known for their willingness for taking risks – especially those that helped evolve its concept over time. What may have worked in Levendary Café #1 in the US 32 years ago may not work in
The success of Friend-Z 's, a regional based coffee house in the United States, is in its tenth year of business. The small business venture, which began as a cooperative college project, has grown into one of the best coffee houses on the college scene. Friend-Z 's success has sparked the interest of its partners to take their small business to the next level by expanding into the global market. Competing globally would allow Friend-Z 's Coffee House to take advantage of a larger customer base, opportunity to be a stronger competitor, and thrive in diverse environments. Friend-Z 's international business will increase their client base with every new opening. They are not restricted by location or tied a region with failing economics. Therefore, opening Friend-Z 's to the option of an online market. Friend-Z 's will be able to rise as a stronger competitor in the coffee market, especially in countries with fewer competitors. The presentation of the coffee house will be crucial for becoming comparable or communicating its uniqueness. Friend-Z 's existence in the global market opens up their business worldwide. This business move releases dependency on the local or regional market in the United States, reduces growth restraints, and allows movement from potential economic unrest. The advantages of Friend-Z 's beginning a global business are promising, but it would be wise to consider the possible negative factors before going global.
Bartlett, C., & Han, A. (2013). Levendary Cafe: The China Challenge. Boston: Harvard Business School.
Through my research and analysis on consumer reports and surveys, I demonstrated healthy food and ethnic/international food is becoming mega-trend in the current food industry. Despite the number of Korean restaurants and food products are limited, a variety of consumer surveys’ result reveal that Korean food is getting big and many young generations want to try more kinds of Korean food items. Given the good timing for Korean food restaurants or food brands to widen their business in the US market, I decided to develop my brand as a Korean food brand.
In the premium foods and coffees industry, there are substitute products. According to Mary Coulter, the best way to evaluate this threat is to ask whether other industries can satisfy the customer need that this industry is satisfying (Coulter). Other beverage industries can satisfy the customer's need for a drink, and other food industries can satisfy the customer's need to eat. There are obviously good substitutes to Broadway products and the threat is high. This is why it is very important for Broadway Cafe, to innovate and differentiate. By providing free Wi-Fi in the Cafe and marketing signature food products from the famous old recipes of Grandfather, Broadway Cafe can create different image than its competitors.
The food service industry is one of the biggest and most active industries in the world and while growth is limited, there is still room for improvements. The industry’s full-service chain segment reached near saturation point in January 2011 (Heskett & Luecke, 2011). Big name-brand chains in this field are looking at expansions overseas, while smaller regional chains are looking for other domestic avenues which they can pursue for continued growth.