To evaluate the way Levendary Café has entered to China, I would like to use “SWOT” analysis to figure out how it is doing.
Strength: Levendary has a very clear and unique business mode which is targeted at high level customer group. It has a very successful business in the United States. There are stores spread across the country. The high-quality food and hospitality service are becoming Levendary’s brand and reputation. The company is willing to dedicate themselves and build a culture of “delighting the customer.”
Weakness: First, the most important issue in China is “Localization.” There are some services or products are useless in the Chinese market. For instance, most Chinese people don’t have …show more content…
I think headquarters should provide more professional support to the Chinese market. There should be more direct control from headquarters to help stores maintain their style. No matter if it is legal restriction or financial sanitation, headquarters have to take control of how the business is running. They should prevent this situation happening again because there will be no redo in the future.
First of all, Mia Foster should do some surveying behind Chen’s back. Because every piece of information Foster got was from Chen, she doesn’t know what the real situation is in China. Foster cannot win the debate with Chen without any solid knowledge and evidence about the Chinese market. She has to get down to the earth and collect the information. For example, how many times do Chinese people dine out each week? How much are they willing to pay when they eat in a foreign restaurant? Do they prefer pure American style or mix with Chinese characteristic?
Second, after gathering all the background information, Mia Foster should set up a department to help Chen to make good decisions. From the very beginning, Chen has had no professional support from headquarter, beside the six-weeks-training. Chen cannot make all the decisions correctly by himself, so he shouldn’t take full responsibility for some mistakes. There should be a COO, a CCO and a CFO to assist Chen to manage the Chinese market. A COO can manage