Levendary Café: The China Challenge Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Levendary Café: The China Challenge Case Solution

Q2 (iii): How did its US foundation fit China market?

A2 (iii): US Foundation in China

As the company saw the majority of opportunities in the Chinese market; Legendary tried to use a different strategy to attract the Chinese market. There were many growth options of Legendary in China, and Chen also received the confidence of the CEO and shareholders to enter in the new market. The venture of the company with China was expected to be the best option for the company. Chen had some plans to make a successful entry in China and through using these plan he thought that the company could also get successful in the global market as tastes are evolving and Chinese people are fond of consuming chicken so adopting a menu according to their taste will fit the foundation of Legendary in China. This was also because the company always offers different offerings to its customers, all while remaining in the same segment as the competitors, so this changing strategy of the company was also a strength to have a successful growth in China. It is also expected that the Chinese people will also connect to the company. The success of KFC, McDonalds, and Pizza Hut in China was also a reason that the Levendary was expected to be fitted in China.

Q3: Please discuss what the key issues facing Mia Foster are and what you would recommend her to address these issues?

A3: Key Issues and Recommended Actions

Key Issues

Mia Foster is facing different issues regarding Levendary Café, but some key issues are the following:

The reporting process from China by Chen in the US as Chen was unwilling to share the reporting and planning processes.
Chinese accounting standards are not as strict as the US’s and the company needs to follow the appropriate standards for China.
Another issue she is facing is the adjustment which China requires from the companies trying to expand in China. The leader of Chinese advertisement only adjusted, and made the vital changes which were required to get fruitful results, but Mia doesn't see any fruitful result at this time.
No organization in the world can achieve success without considering vision. The biggest issue that Levendary Café is facing in China is that Chen has completely blurred the vision.
Keeping the same standards as Levendary US market in China doesn’t tend to be a successful strategy for the company.
The difference in the culture of the US and China is also an issue as the people of China only eat food from restaurants and move but the people of the US are more socialized and like to spend time in restaurants having chat than just eating.

Recommendations

She needs to standardize the reporting procedure to match it with that of the US, before further expansion of stores in China and she should also raise a larger segment of total sales.
She should give complete freedom to Louis Chen as he is the only experienced person who knows the dynamics of operating in China. What Mia Foster should do is to make Louis Chen understand the core values and vision of the Levendary, for China
There should be regular board meetings, discussing various agendas so that the issues will not be matured and will be addressed as soon as possible.
Hire a regional media manager and financial analyst to remain updated with the GAAP and other Chinese operations.

Conclusion

The main objective of the company was to serve best to its customers in the US as well as China. The founder also wanted different menus and food to retain customers. Levendary Café’s team considered the Chinese market before beginning and found a strong place to invest, but it did not identify the culture and target market’s desire which forced Louis Chen to bring changes in branches of Levendary Café. Despite the fact that Levendary's entrance into the Chinese market proved to be a challenge, the organization has increased some significant exercises on global development activities. As the company is facing issues in maintain its growth in China; there are many suggestions for the company to overcome these issues. There is also a difference in the opinions of the founder and operating standards in the market. Levendary China has adjusted the menu in contrast to the first standard menu of the American market. In specific eateries, Chen had just a single unique thing from the American menu, which is a striking distinction. Notwithstanding this Chen adjusted the plan and subject of the eateries opened in China.

The CEO, Mia Foster also lacked management skills and it was difficult for her to manage these issues as the communication gap derived serious issues in China.Mia Foster did not discuss the core values of the organization with Louis Chen. The company needed to incorporate a strategy to make its operation profitable in in China. They should use a balanced scorecard for planning and management that align with the activities of the business. If the CEO decides to expand in China; she needs to adopt the culture and operating standards of China, as this will be a strategically suitable approach for the expansion and profit maximization of Levendary caff...........

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Levendary Café: The China Challenge Harvard Case Solution & Analysis