The document summarizes the challenges facing Mia Foster, the new CEO of Levendary Café, in their expansion into the Chinese market. Key issues include a lack of international management experience overseeing the China division, differences between Chinese and American tastes, and the independent actions taken by the China President Louis Chen. The document analyzes Levendary's markets and competitors in China and the US, identifies costs and revenues between the two regions. It recommends Foster meet with Chen to establish transparency and train local employees to follow proven American restaurant expansion models. The summary concludes Foster remains confident about resolving issues through a flexible strategy that satisfies all stakeholders.

1. Levendary Café
‘s China dream

2. Content
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•
•
•
Introduction
Company background
Market Analysis
Industry Analysis
Problem
Alternatives I Possible Solution
Plan of Action
Marketing Strategy I Risk analysis I
Budget analysis
Path to success
Conclusion

3. Introduction
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary I Plan of Action I Recommended Approach I Conclusion
Tough Road for Mia Foster, New CEO
Lack of
Intl
Mgmnt
exposure
Wall
Street’s
confidenc
e
China’s
local
tastes
Stock
Price
Chen’s
attitude
Costs
GAAP

4. Company Overview
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary I Plan of Action I Recommended Approach I Conclusion
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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

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

6. Industry Analysis
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary 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

7. Problem Summary
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary I Plan of Action I Recommended Approach I Conclusion
• Louis Chen , President of levendary China has operating with his full control on
levendary china
• No Senior executive has visibility of China as no one has visited China for more than a
year
• Chen has gone beyond core design concept to give local look and feel. He has even
replaced levendary’s classic wooden framed upholstered chairs with a plastic framed
alternative from a local furniture supplier
• Taste preferences of Chinese customers are different than Americans
• Chen’s adamant attitude
• Chen’s has been able to show performance through his customizations

8. Problem Summary
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary I Plan of Action I Recommended Approach I Conclusion
Leave the china
market
Develop solely
American concept
restaurants

9. Industry Analysis
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary I Plan of Action I Recommended Approach I Conclusion
Revenue drivers >>
Levendary
China
Levendary
America
- Volume
- Margin

10. Industry Analysis
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary I Plan of Action I Recommended Approach I Conclusion
Cost drivers in china >>
Fixed cost
- Franchised, rent & overheads
- Redesign costs
- Supplies
- Labor
Variable
- Food
- Advertising
- Regulation
- Maintenance
- Transportation
Investments
- No financing needs
- No Start up costs
- Only Redesign & Marketing

11. Company Overview
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary I Plan of Action I Recommended Approach I Conclusion
Marketing dynamics>>
Promotion
Segmentation
Positioning
- Gender : Both
- Location : Semi
developed areas of
China
- Income : Low Middle
- Prices : Low
- Marketing Campaign
- Increase Brand
awareness by
promoting organic
/healthy food
Customer
Low Income customer
seeking local fast food
options
Place
- Already exists via
Chen
- Populated Areas with
high human traffic
- Fast & Cheap
- Store Design
- Better Quality
Company
Levendary China
offering fast food as per
local taste
Competition
High competition low
margins ; high brand
awareness

12. Plan of Action
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary I Plan of Action I Recommended Approach I Conclusion
<< China
America >>

13. Recommended Approach
Introduction I Company Overview I Market Analysis I Industry Analysis I Problem Summary I 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

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

15. ‘thank you