Levandary Cafe: The China Challenge Case study

Firstly, Please note that this is a Business Management paper. That being said, the tone, vocabulary, and sentence structure must be done with that in mind. Do not use

complicated sentence structure or vocabulary. The paper must have a business tone. Follow the instructions below exactly, and answer all aspects of the instructions. I

have attached the full case as a pdf document to be used when writing this. The following are the instructions :

Assignment:
In this case, you are an experienced business consultant who are hired by Mia Foster at Levandary Café. You are asked by Forster to examine the situation presented in

the case and prepare a business memo of 2-4 pages, double spaced, font 12, addressing the following three specific questions.
1. What is your evaluation of the way that Levandary Café has entered the China market?
2. What changes would you suggest to Mia Foster? Specifically, what should she do about Louis Chen? Should she leave him alone, replace him, or manage him? What are

the pros and cons to each of the three options?
3. Prepare a specific action program for Mia Foster to help her deal with the need for continued growth in China.

The following is the description of the case study: (Please note that this a only a description of the case and I have attached the full case study as a pdf document)
Case Description:
The case describes the establishment of Levendary Cafe’s subsidiary company in China and its evolving relationship with its parent company during the first two years

of its existence. In particular, it focuses on the decisions and actions of Louis Chen, the founding president of the subsidiary as he tries to establish operations in

China and to negotiate his relationships with headquarters in the United States. The trigger issue revolves around how Levendary Cafe’s recently appointed chief

executive, Mia Foster, should manage the Chinese subsidiary. Chen has been resistant to headquarter interference in local operations, and Foster who is concerned about

aspects of the Chinese expansion has struggled to work effectively with him.
Levendary Cafe is a publicly traded company recently spun out of private equity ownership. The stakes are high for Foster, a first-time CEO, and for the brand, which

the public markets are evaluating for the first time. China represents a large potential growth opportunity for Levendary, and Foster is anxious to prove to Wall

Street that despite prior international management experience, she is capable of managing international growth.
Currently, Foster and the Levendary headquarter team are concerned that apart from their name, most of the 23 Chinese Levendary Cafes appear to have little in common

with the original U.S. concept. After giving Chen considerable autonomy in the startup stage, headquarters managers have become concerned with the liberties he has

taken with the menu and physical appearance of the cafes he has opened. Foster is also worried about Chen’s refusal to bring financial reporting in line with the

parent company’s standards. And her attempts to speak with him about a future growth plan have been met with an angry rebuttal that it is impossible to plan for growth

in a dynamic market like China. Chen seems to believe that he is underappreciated by Foster and the headquarters team.
The case concludes with Mia Foster flying out to meet with Louis Chen in China and review these issues with him. In the process, she has indicated that she wants to

identify the appropriate management skills required to run Levendary China, and determine if Chen is still the right person for the job.

The following are suggestions by the professor on how to do the analysis:
Suggestions on Your Analysis:
There are many approaches to analyzing this case. You can approach it from the perspective of strategy and marketing, and focus on the issue of the need for

standardization and control versus differentiation and flexibility. You can also look at its general management implementation and concentrate on the tension between

strategic control and entrepreneurial flexibility. Or you can examine the leadership styles displayed in the case or any other perspectives that you think are

appropriate for this case. Feel feel to use any of the approaches or a combination of a few that appeal to you. See “Professor’s Grading Rubrics” attached for more

guidance.

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