Levandary Case Study - What Is Your Evaluation of the Way Levendary Cafe Has Entered the China Market?

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Question: - 2 what changes (if any) should Mia Foster make? Specifically, what should she do about Louis Chen? And what changes (if any) would you propose at headquarters?

Answer:-2 the following changes should be made by Foster in context to the operation In China:-

- Headquarters should understand the China Business structure and problems through PESTLE Analysis :-

Political, Economic, Social, Technological, legal and Environmental.[3]

- Company should drop the idea of firing Chen as he has many skills like he can speak Chinese which ultimately help the company in communication.

- Protection of the integrity of a company reporting system

It is necessary for the company to formalize the financial reporting system of the company.

- Improve the relationship between the Headquarters and Foreign office

Both location should work together to share resources and information so that strategic plan of the company can flow effectively and efficiently.

Question:-3 prepare a specific action program for Foster to her deal with the need for continued growth in China. What should be on the agenda for her meeting with Chen?

Answer:-3 Following are the action program that foster has to deal with:-

- The marketing strategy: Foster should discuss a plan to deliver a clear, consistent, and compelling message about Levendary café and create both physical and perceptual differences that can be perceived by consumer in China that is consistent with the corporate strategy of the mother company. Chen should be part of this to have commitment and responsibility to it and due to his experience in the Chinese market.

- Supporting Joint venture for future operations in china because of following advantages:-

- Potential to reduce or avoid bureaucratic hassles and red tape.

- Access to have Chinese partner workforce and help in distribution channels.[4]

3. Control over China's operations: Foster should schedule for periodic audit and visit for Levendary China and define the responsibility of Chen and the extent to which he must not take decision without getting the approval from US. Because it seems that the proper communication is missing.

Bibliography:-

- http://www.tradestart.ca/market-entry-strategies (Retrieved on 10th December 2016)

- http://enrichwise.com/2011/12/10/the-cage-framework-distance-matters-in-globalization/ (Retrieved on 10th December 2016)

- http://www.free-management-ebooks.com/dldebk-pdf/fme-pestle-analysis.pdf (Retrieved on 9th December 2016)

- http://nolasia.net/joint-ventures-in-china-advantages-and-disadvantages/ (Retrieved on 11th December

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