Mia Foster is the new CEO of Levendary Café, replacing the founder. Levendary Café is a 3,500 location quick casual restaurant chain that is publicly traded. It has been successful in the US market but is now looking to expand internationally, starting in China. There are several challenges Foster faces in China, including differing tastes and business practices compared to the US. She will need to make changes to the company's structure and operations in China to better adapt to the local market and manage the independent business practices of Louis Chen, who operates Levendary Café locations in China. Foster is developing an action plan to standardize practices while allowing flexibility, establish better oversight of Chen, and continue the company's growth strategy in

1. Presented By:
Ansh Aggarwal
Kuhu Pathak
Varun Nigam

2. Difficult road for Mia Foster, New
CEO
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems Plan of Action I Recommended
Approach I Conclusion
Lack of
internal
mgt
exposure
Wall
street’s
confiden
ce
Stock
Price
Chen’s
Attitude
China’s
Local
taste
GAAP Cost

3. Company Overview
Introduction I Company Overview I Market Analysis I Industry Analysis I ProblemsI Plan of Action I Recommended
Approach I Conclusion
- Mia replacing departing
founder/CEO of the
company
- 3500 quick casual
- Franchised
- Publicly traded
- Flexible marketing and
menus in America
- Domestic demand
- High quality fast food
- Customer oriented policies
- Risk taker
- Organic ingredients
- Keeping up to date
(CCO)
- Interior design
Forget today’s profit. Have a positive impact on customers
U.S.A

4. Market Analysis
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended
Approach I Conclusion
Increasing GDP
Stock Market
Speculation
Lucrative
Market
Sticking to
strategy of
international
expansion
To check the
untapped
potential
Success of
competitors
like KFC , Mc
Donald
Local market
Saturation
Why China ?

5. Industry Analysis
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended
Approach I Conclusion
China :
Food intake is increasing
Eating habits are different than Americans
Largest producer and consumer of Rice

6. Q1) What is your Evaluation of the way
Levendary Café has entered the China
Market?
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended
Approach I Conclusion

7. • The organization foundation- Blending Concepts and Operations

8. Leaping into china
Louis Chen, a strong market position. Right concept, flexible, bright future.
Expanding: The Investigation
China was conducive for investment, population
and GDP growth
An affluent middle class, foreign fast food
companies attracted the most attention.
Serving the U.S market
Customer delight, customer meet request
Local menu adaptions, the American consumer,
evolving menu choices.

9. Q2) What changes should Mia Foster
make? Specifically, what should she do
about Louis Chen? What changes would
you propose at headquarters?
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended
Approach I Conclusion

10. Changes Mia Foster should make
• Financial Reporting - There should be a China HQ to take care of the
Financials reported in Chinese format.
US HQ
China HQ
China restaurant 1 China restaurant 2 China restaurant n

11. Changes Mia Foster should make
• Restaurant design – Restaurant design should be consistent with US
restaurant designs. Restaurants can be small or big to suit the location.
• Food Menu – McDonald’s style menu design should be used.
• Louis Chen – Foster can try to make him understand that standardization is
important and can be achieved.

12. Q3) Prepare a specific action program
for Foster to help her deal with the need
for continued growth in China. What
should be the agenda for her meeting
with Chen?
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems I Plan of Action I Recommended
Approach I Conclusion

13. • Levendary Café is a MuR Business.
• There seems a missing link between the two cultures that is not
being understood by headquarters .
• Heirarchical Structure:
• USA: Top -Down Approach.
• China: Bottom- UP Approach.
• The adaptation China requires for a business from the USA.

14. • Phase 1:
• Building a team for MR. Chen.
• Making Chen understand what are the Levendary Café’s core values.
• Renovating the current layout of the stores.
• Phase 2:
• Invest more from USA.
• Have more control on Chen from Foster.

15. Recommended Approach
Introduction I Company Overview I Market Analysis I Industry Analysis I ProblemsI Plan of Action I Recommended
Approach I Conclusion
Follow KFC’s and
other successful
American restraunts
approach
- Motivate &
recognize
- Train the employees
Transparency by
setting up processes
Team for Chen

16. Conclusion
Introduction I Company Overview I Market Analysis I Industry Analysis I Problems Plan of Action I Recommended
Approach I Conclusion
 Following proposed strategy
 Confident about the meeting with Chen
 Flexible Marketing Strategy
 Satisfying all : Wall street, Chen and foster
 Trade offs