Analyzed the entry strategy of a mock American fast-food chain into China from a brand manager's perspective, analyzing it's performance and suggesting business restructuring recommendations.

1. GOING FORWARD
WITH LEVENDARY
CAFÉ

2. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
Similarities in Operating Conditions for the U.S. and China Markets
Growing emphasis on healthy lifestyle trend,
especially appealing to white collar workers and middle class women
Restaurants operate on razor thin margins in both countries
People in different states or regions have different taste preferences
MARKET
TREND
INDUSTRY
PROFITABILITY
TASTE
VARIATION
THE UNITED STATES CHINA

3. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
Uniqueness in Operating Conditions for the U.S. and China Markets
MARKET
CONDITIONS
Highly fragmented
across all segments
Food industry is growing,
especially in quick service segment
Customers are willing to
pay more for healthy food
Customers are willing to
pay more for foreign fare
Labor cost is the
major cost
Materials or Occupancy
are the major costs
THE UNITED STATES CHINA
CUSTOMER
BEHAVIOUR
MAJOR
COST
No network can be used to
facilitate operating processes
Chen’s network of contacts helped
speed up certain processes
GUANXI

4. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
1
Lack of symmetry with the traditional Levendary
Café model back in the U.S
Overly localized menu, deviated from original core values2
3 Brand Identity suffers: No clear positioning
4 Short-term growth only – not optimized for the future
Explosive growth in presence
Failed to breakeven
Evaluating Levendary Café’s entry and performance in China thus far
CHEN’S ENTRY STRATEGY
- No clear long term strategy
- Respond flexibly to market needs
- Utilize real estate knowledge to seek
suitable location for new stores
- Utilize network to facilitate expansion
Lower gross margins than in the U.S

5. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
Adopting the Franchise Business Model as a Growth Strategy
STRONG AND RECONGIZABLE
BRAND IDENTITY
1
CLEAR STANDARDIZED
OPERATION PROCEDURES
2
Known for its fried chicken offering
Localized fried chicken seasoning but still
managed to maintain their brand
Clear food-prep steps for all stores to follow
Ensured that customers’ dining experience
and food quality is consistent at all stores
RECOMMENDED GROWTH STRATEGY
To develop a franchise business model and grow by franchising outlets in China

6. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
Establishing the Wholesome Brand Identity in China
STORE
DECORATION
Aligning all store designs
back to original earthy tones
Revert back to using classic wooden
framed upholstered chairs
PRODUCT
OFFERING
Introduce core wholesome menu
items for every store in China
Add localized product offerings that
use wholesome ingredients
Help Levendary Café
build a consistent
brand that is known
for selling high
quality healthy food in a
chic natural environment
DESIRED OUTCOMETACTICS

7. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
INDIVIDUAL STORES
Customer Journey In-store Operations
Order and
Check Out
Food
preparation
Seated
Enjoy
Serve
Standardizing Operation Procedures for Levendary Café China

8. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
COUNTRY-LEVEL OPERATIONS
Hire international accounting firm to ensure GAAP financial reporting symmetry
In-store Operations
Standard Operating
Procedures
Store Opening and Closing
Hygiene
Food Preparation
INDIVIDUAL STORES
Customer Journey
Order and
Check Out
Seated
Enjoy
Standardizing Operation Procedures for Levendary Café China

9. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
• Stronger brand identity in China
• Lower material cost due to standardized
offerings
• Organic growth through franchising
• Standardized and aligned operations
• Consistency and ensured food/service quality
• Easier to measure performance in China
• Raise shareholder confidence
• Unified global brand
Positive Impact Created Across All Levels of Levendary Café China

10. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
• Stronger brand identity in China
• Lower material cost due to standardized
offerings
• Organic growth through franchising
• Standardized and aligned operations
• Consistent and ensured food and service quality
• Easier to measure performance in China
• Raise shareholder confidence
• Unified global brand
Positive Impact Created Across All Levels of Levendary Café China

11. SITUATION ANALYSIS CREATE BRAND IDENTITY STANDARDIZE OPERATIONS IMPACT
• Stronger brand identity in China
• Lower material cost due to standardized
offerings
• Organic growth through franchising
• Standardized and aligned operations
• Consistent and ensured food and service quality
• Easier to measure performance in China
• Raise shareholder confidence
• Unified global brand
Positive Impact Created Across All Levels of Levendary Café China