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Levendary café
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.
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Levendary café
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- 2. Content • • • • Introduction Company background Market Analysis IndustryAnalysis Problem Alternatives I Possible Solution Plan of Action Marketing Strategy I Risk analysis I Budget analysis Path to success Conclusion
- 3. Introduction Introduction I CompanyOverview 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 ICompany Overview I Market Analysis I Industry Analysis I Problem Summary I 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
- 5. Market Analysis Introduction ICompany 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 ICompany 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 ICompany 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 ICompany 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 ICompany 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 ICompany 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 ICompany 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 IntroductionI 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 ICompany 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 CompanyOverview I Market Analysis I Industry Analysis I Problem Summary I 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
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