Written Case Submission:
Levendary Café
Table of Contents
Introduction 3
Identification of Main Issue 3
Analysis and Evaluation 5
Operational Analysis 5
Financial Analysis 6
Cultural Analysis 9
Parent Company vs. Subsidiary 12
Alternatives and Recommendations 13
Alternatives 13
Recommendation 14
Action Plan 14
Additional Questions 16
Works Cited 18
Introduction
Levendary Café has grown from a small restaurant that offers soup, salad, and sandwiches in Denver to a multibillion quick casual chain that operates 3500 stores around the U.S. The founder of the Levendary Café, Howard Leventhal managed to establish a strong market position for the Levendary Café in the U.S and succeeded in creating a $10 billion
…show more content…
However, Chen had a different approach where he was trying to open as many stores as he could in a short period of time, paying little attention to the U.S standardized business model. The issue of standardization clearly was another challenge between Denver headquarters and Chen, as he insists in pushing what he thinks is right and resist what headquarter is asking him to do.
Cultural Difference Whenever a company is entering a new market it has to take into consideration the cultural differences between countries. Based on the case study analysis, the difference between the two countries in terms of eating out habits and eating preferences seem not to be understood by the Denver headquarter. Denver headquarter believes that it can enforce the same business model applied in the U.S to its stores in China, regardless of local preference. In addition, Foster seems to lack knowledge about the Chinese culture because she was not familiar with the market in China, as she had no experience working internationally. There was a lack of cross-cultural communication between Chen and Foster; even though, Chen had experienced both cultures while studying abroad in the U.S.
Limited experience in the foreign market
There was a lack of international market experience since the China market was the second
The differences between Chinese Culture and American Culture are immense. Both cultures have very different values and norms, and these differences come out within the negotiation between Buckeye Glass Company and the Xia Xian Glass Factory. Both parties during this negotiation had different objectives and ways to get what they wanted out of the proposed joint venture.
Marketing is a competitive field that companies outdo each other to make a profit. Café Campesino is a retail-based company that assists farmers to sell their products in a fair and profitable trade. The American coffee industry is that which is on growth with more than 64% of American drinks an average of a cup of coffee a day. The coffee industry just like other agricultural products is affected by a host of factors from climatic variations to fluctuation of prices. This paper seeks to look at Café Campesino's marketing plan in the coffee industry. The paper appreciates the effect
Making business abroad can be risky, but it can also be profitable for a company as well; thus the necessity to study in deep the country where the company will bring the business to. International companies are faced with many cultural challenges, when doing business across and inside of different borders. Identifying the significant cultural issues involved when evaluating the attractiveness of a particular location as a place for doing business can be crucial for a business. Aspects to consider when studying culture in a new place
Cultures are varying among different parts of the globe. People with different cultures have different characteristics and viewpoints on the subjects due to diverse understanding and method of learning. During the past few decades, the international trade grows in a very rapid rate due to the advantages that it provides; “increased sales, operational efficiencies, exposure to new technologies and broader consumer choices” (Heslin). Therefore, when considering the culture aspect to current business world, it is crucial for business to understand the culture aspect because of the tremendous growth of international business as well as utilize the international market to its maximum
1. Statement of Problem: What are the problems being faced and the most important 3-4 decisions the company needs to make regarding the situation of the company in China.
With the unstoppable trend of globalisation, it becomes extremely significant for international businesses to have a thorough understanding of different cultures. Hofstede (1980, pp. 21-23) defines culture as ‘the collective programming of the mind distinguishing the members of one group or category of people from another’. This essay examines Hofstede’s cultural framework and suggests that Hofstede’s cultural framework is an outstanding and authoritative tool to analyze culture differences. In this essay, cultural frameworks will be discussed firstly, following by a discussion of my cultural scores and background. Finally, recommendations on cross-cultural management between China and Australia will be provided.
In this assignment, we aim to investigate in which extent an organisation must appreciate cultural differences before entering a market.
“Thanks for your time and we appreciate you for bringing your concern to our attention. We understand your concern expressed in your post and we truly apologize for any inconvenience caused. However, you need to understand that ours is a family business and we strive to serve our community better and so we encourage our customers to bring their children, grandchildren to our children’s story hour. Regarding the concern, you have raised, we are currently evaluating various options and we may consider introducing a separate lounge area with pleasant ambience while keeping it away from the children play area while children can play and enjoy their story telling hour. We hope you as our valuable customer will understand. Thank you for your cooperation and patience for allowing us to serve our customers better.”
This paper aims to explore the cultural barriers that GM encounters while doing business in China especially in terms of language and Asian mind difference. As a matter of fact, we cannot examine all the cultural barriers due to the scope of the paper. On the other hand, some differences emerging from different thinking behavior between US and China are exemplified in the second part of the paper. In the first part, the company information and the SWOT analysis of GM are given before going further with the Asian operations of the company.
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
Through a joint venture franchising structure with fairly rigorous contractual stipulations Michel’s central administration were able to expand the business to China “on a shoestring” while still maintaining “arms length control” of how the Chinese business was run. The licensee and joint venture partner bore the financial risks, while risks of damage to the brand that a failed venture would cause were deemed negligible due to China being so far away from the Australian market.
Cultural issues different customers in the global market have different culture and this calls for a different strategy to handle their needs
Starbucks dates back from 1971 and is based in Seattle, Washington. The company was founded by Gordon Bowker, Jerry Baldwin and Zev Siegl and it
Levendary Cafe has been a successful restaurant chain that initially set up its business primarily in the United States. With their expansion in the Chinese market and over a period of time after their expansion, they faced a number of issues ranging from the differences in Auditing styles between the two countries to a complete change of their standardized image previously maintained in all their outlets bringing about significant changes in their unique identity characteristics.
Culture indeed plays a very important role in deriving the Marketing strategies of a Firm. A good marketer is the one who adapts to the culture he is selling in and alters his Marketing Mix accordingly. In the current assignment we have selected China, one of the BRICS Nation, and analyzed how different aspects of the Chinese Culture impacts the Marketing Mix and how a marketer should respond to ensure he could grab a good market share while working in China.