Overview of Case Study
Levendary Cafe was appointed with a new CEO in January 2011. Mia Foster is a first time CEO with no international management experience, faced with a major challenge at Levendary Cafe, a $10billion US-based fast chain. However, the Levendary Cafe already established in China market while departing CEO Howard Leventhal in the position. Strategically, many of the corporate staff have become concerned that the company’s major expansion into China is moving too far from Levendary’swell defined concepts of store design and menu. Besides that, Mia Foster is also found that Chinese subsidiary submitted all management and financial reports to Denver or likely known as headquarters of Levendary Cafe in its own format. Louis Chen is the president of Levendary China. He is capable of speak Mandarin Chinese and English and had long experience as retail property developer gave him intimate familiarity with neighborhoods in Shanghai and Beijing. Chen also had a network of contacts to help speed up the process of permitting, incorporating, and staffing stores.
However, in order to overcome these challenges, Mia Foster had her first video conference meeting with Louis Chen. Since, Mia Foster is not satisfied with financial report format, she urged Louis Chen to make a change. Meanwhile, financial evidence shows that Chen’s efforts have produced strong results and suggests that he knows China far better than U.S headquarters does. Mia Foster wants to protect the integrity of reporting structure. Organizationally, Foster has been frustrated by the apparent unwillingness of Louis Chen to confirm to the company’s planning and reporting processes. Therefore, Chief Franchise officer Peter was flies to China conduct a comprehensive review on the 23 Levendary Cafe in the market. Hence he submitted the detailed description on the 23 Levendary Cafes in China to Mia Foster. Based on the detailed description submitted to the CEO, She found that several...
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