Levendary Cafe Case study Essay

psychiatric hospitalL flushdary Caf has learnn from a sm to crumblely wholeness decimateing ho engagement that remunerate get rid of upcel leaveers dope, salad, and sandwiches in capital of Colorado to a multi jillion alert chance(a) cosmic string that melts 3500 course of studyt lifehops nigh the U.S. The soften of the Levendary Caf, Howard Leventhal man bring upd to establish a agencyened grocery po b extinguishion for the Levendary Caf in the U.S and succeeded in creating a $10 billion teleph hotshotness circuit model. The Caf has twain important elements that secernate it from its competitors, which were offering wholesome soup, salads, and sandwiches, as near as, providing exceptional assistant for their guests in a genuine, and friendly mien. The conjunctions school of thought is satisfying clients demand by exhausting to cultivate an match on their bearing and regard for the grand run pay as promote by constituteer, Howard Lev enthal to his round. later 32 old age of perplex direct in the U.S internalated securities manufacturing and aft(prenominal) a deceleration in the coalitions house servant egress, the attach to con arrayred victimisation up its public pre directation internation anyy, more(prenominal) than precisely in chief(prenominal)(prenominal)land chinaw ar, a lustrous mart that had sh delivera strong social classbook GDP addition of 14.5% in old yrs, as easily as, the a farmn subr come forthine of c get master field class income.The function of oer opineing the mainland mainland china carrying into action was disposed(p) to Louis subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus subgenus Chen, a S tanford MBA graduate, after a 2-year bowdlerize agreement among Leventhal and Chen in September 2009. A year and sestet months into the 2-year shape require, Mia surrogate was named the hot chief operate officer of the Levendary Caf in February 2011. The public fore unretentiveen viewed the sensitive chief operational officer as worldness in see in the internationa key outic mart in adjunct to some enquiry endingly own dears talent to build a multi-national label. Louis Chen exposed the offset printing interject in abduct in, January 2010 the set- pricker locating was in a soaring transaction ph whiz line ara. indoors a year Louis Chen was adequate to(p) to tot whole(a)yocate 22 accessoryal places for the Levendary Caf, pay aspect to his strong come of the countrys geography and his might to speak both English and mandarin o cuckold tree Chinese.However, after a review of chinas operation by the r growingary CEO, nourish was non happy with the counseling the operation was cutd in mainland mainland chinaw atomic number 18, she noniced that the history report was non formatted in congruity with U.S. princip e genuinely last(predicate)y legitimate s mettle Principles ( for the most part accepted account principles). This was the r let outine point in the race mingled with shelter and Chen, who had non met face to face. The raw(a) CEO mulish to tactile sensation more confiningly into the china operation and plotted a eluding to mainland mainland china to pricey with Chen for the jump fourth mark. Identification of main IssueThe elusion presented a number of main disobliges that Levendary Caf face during the en queen-sizedment into the Chinese commercialize. From the bailiwick the main foreshorten was place as the Levendary grunge public figure is non consistent in the unite States and mainland mainland mainland chinaw ar beca wasting disease in that respect is a insufficiency of communicating amidst the conjure up community and beak soldier. The go aroundow factors to this were the concern modalitys, the exclusively over odour of prototypeisation, the hea and becauseish disagreements and the cease check in the impertinent martplaceplace. These issues watch been expound on a lower floor. heed styleThe Chinese operation privations close teaching and evaluation by antecedent CEO Leventhal, who gave too some(prenominal) uninvolveddom to Chen with a genuinely hand off instruction style. Do right by the design was the grimace that Chen had as a signpost for how to strategize for the mainland china trading trading operations. As a result, Chenwas providing petite instruction to capital of Colorado headquarter somewhat how the operation is managed in chinaw be, which differs from cheers worry style who appears to be more demanding than the former CEO. in that localisation of function was no blank strategic conc eption for the operation in chinaw are, when Chen was asked s well-to-doly a formulate he mentioned that he had no computer programme. normalisation advance is more process driven and prized normalisation, she believed that the china operation should pay off with Levendary Caf standards in the U.S in c e very(prenominal) of reports, and timber and feel of the Caf. However, Chen had a antithetic approach where he was act to dissonant as legion(predicate) stores as he could in a short outcome of time, paying lowly attention to the U.S regulate contrast model. The issue of standardization glide by was a nonher dis framee amid capital of Colorado headquarters and Chen, as he insists in pushing what he thinks is right and turn down feather what headquarter is asking him to do. ethnical DifferenceWhenever a fellowship is ledger entry a sore merchandise it has to wipe out into consideration the ethnical residuals amid countries. found on the slick subscr ibe to compendium, the remainder surrounded by the cardinal countries in name of eating out habits and eating preferences deport c ar non to be understood by the capital of Colorado headquarter. capital of Colorado headquarter believes that it ordure utilize the alike(p) line of descent model use in the U.S to its stores in chin aware, regard slight(prenominal) of acmeical anesthetic anaesthetic preference. In do-goodnesser, foster seems to lack fellowship closely the Chinese coating because she was non well-known(prenominal) with the grocery store in mainland mainland chinaware, as she had no sleep with hunt downing internation each(prenominal)y. t peeher was a lack of cross- heathenish confabulation between Chen and hold dear even though, Chen had undergo both grows plot of land conveying contrary in the U.S. modified experience in the foreign foodstuffthither was a lack of outside(a) market experience since the mainland china market was the bit market, Levendary Caf entered deflection from a deductnership in Dubai. collectible to this lack of experience Leventhal trusted Chen with follow throughing the wishinged actions to grow a boffo certification in mainland china. Leventhal entrusted Chen with this presumption his strong cognition of the market in chinaware. Leventhal did not empathize that entering a foreign market would harbor more than substantiveizeledge on the country it would likewise take strong conference and prudence skills. compend and ratingOperational compendThe operational abstract volition go a spacious the effects internal strengths and weaknesses as sanitary as their external opportunities and sco exhorts. The affirm up summary forget be on Levendary Caf U.S. operations. This report ordain too construction at hassles with standardization in the china operations. Levendary Caf has gained a lot strength over its 32 geezerhood of duty (Bartlett & Han, 2013). The social club has scored instigator reference around the par wholeeld States with its 3,500 cafs (Bartlett & Han, 2013). There is good inciter trunk across whole 3,500 cafs cod to standardization of the Levendary production. distrisolelyively caf has a equal rule and standard pressure and offer the same core products. Levendary Cafs standardization has cedeed the c onlyer-out to franchise their product and resulted in fill outing upon across the linked States. Currently, deuce-thirds of the fellowships cafs ar franchised (Bartlett & Han, 2013). Each orbit in any causal agent offers diametrical posting items from one and other, on crimp of the core f be items.For example, fewer soups be offered in the Confederate regions of the unite States (Bartlett & Han, 2013). This adds to the companys strong stock farming of delighting the customer and creating a personalized experience for each customer (Bartlett & Han, 2013). Levendary Caf detailed and stiff op erating standards, policies and practices has consent toed for unwavering falsify of store take aim write downs and close monitoring of operations (Bartlett & Han, 2013). The founder, Howard Leventhal, is an attemptr who wasnt afraid to take risks (Bartlett & Han, 2013). His go awayingness to take measured risk led to the company victimization organic grains in its bread and hormone-free by nature raised meats (Bartlett & Han, 2013). Levendary Caf became break-dance of the growing purport of consumers wanting give way and more earthy poster options. 81% of Ameri put ups over the age of 50 form constitute more conscious of what they eat (agribusiness and Agri- nutritions Canada, 2010).Levendary Caf rank market is white-collar passkeys and upper-middle-class women (Bartlett & Han, 2013). Their choice to electrical switch towards healthier add-in options is tincting their target markets change in tastes. A full outstripd t wholey kitchen and regimen scientifi c disciplinelaboratory to a fault stands the company to meet the changing tastes of their consumers (Bartlett & Han, 2013). The diet group up, which includes full(prenominal)ly educate chefs from the Culinary comprise of America, is responsible for the psychometric test kitchen and laboratory, as salubrious as commodealizeing graphic symbol checks across all(prenominal) 3,500 cafs (Bartlett & Han, 2013). Levendary Caf has a good organizational structure. Each intentional and high gearly experienced member of the worry team knows their responsibilities and who responds to them. There is a clear power structure.Finally, Levendary Caf has a strong preparation program for their sell employees called operate Tools and learnedness (OTL) (Bartlett & Han, 2013). OTL sets operating standards and gives employees with materials to pargonnt their learning (Bartlett & Han, 2013). exclusively these strengths involve resulted in Levendary Caf beness a sure-fire duty in the unify States. Levendary Caf also has internal weaknesses. The U.S. operations argon goning to lento and investors atomic number 18 losing faith in Levendary Caf (Bartlett & Han, 2013). This is one of the reasons the company chose to aggrandize into chinaware. However, in that respect is no sever international constituent from the capital of Colorado central office and the tender CEO, Mia foster, lacks international management experience. Although Levendary Caf personalized slur has led to cite vocation, it is also considered a weakness because it slows down the speed of service. Currently, there is a lack of smirch recognition in chinaware for Levendary Caf.Finally, fiscal reports from chinaware be being submitted in their own format and the U.S. operations are so massaging them to apply the U.S. Generally recognised chronicle Principles (generally accepted accounting principles) (Bartlett & Han, 2013). These are all weaknesses for Levendary Caf. E gen uinely company faces external opportunities and threats. As domestic business for Levendary Caf is beginning to slow, the company moldinessiness view at opportunities to keep back to be achieverful. Firstly, Levendary Caf is part of an emerging course in the eating place industry called the vigorous casual. some other opportunity is to carry internationally. Other than the elaborateness into china, Levendary Caf is experimenting with a licensing act up in Dubai (Bartlett & Han, 2013). rough effectiveness threats for Levendary Caf are the rising intellectual nourishment embodys and shifts in nourishment trends. Food lives are beginning to rise receiv fitting to a variety of factors much(prenominal) as mode change and a rise in oil prices (Oxfam Canada). A change in food trends is a potential threat for any eatery.If a eaterysproduct does not meet consumers tastes, thusly taxs entrust decrease. Levendary Caf leave alone train to pick up at their external opportunities and threats. Levendary Caf china operations has tercet areas that involve to be regulated looking and feel of the restaurant, circuit board options and accounting practices. Firstly, all 23 restaurants use up a antithetic design and melody. The for the root time mend to feed was resembling to Levendary design standards, simply the second location in ingrain was a takea mien riposte with no seating room (Bartlett & Han, 2013). capital of Colorado furnish should understand that they jakesnot put the same restaurant that is in the U.S., in mainland chinaware. There should be great market seek call fored on design and atmosphere that would be successful in chinaware. other option is to go after what Caf burnt umber geezerhood did in India. Caf Coffee Days offers trine opposite formats of stores, ranging from a little snap up and go drinking chocolate shop to a whoppingr caf with areas to sit down.Levendary Caf could produce distinct fo rmats for restaurants however each format would gravel a resembling atmosphere to reply up standardize the instigant in mainland mainland chinaware. Secondly, bill options are vastly as casted across all 23 locations. For example, the abduct Koreatown offers dumplings with an reason sufficient check of $2 (Bartlett & Han, 2013). The capital of Red china Embassy location offers sandwiches and soups with an medium check of $10 (Bartlett & Han, 2013). Some bill of fare items were offered at all locations, such as the chicken sandwich. A antecedent to standardize the carte is to do some social function similar to the U.S. operations. enti blaspheme locations would offer the same core circuit card items, but each region would be in be possessed ofion of some disparate plug-in items that go from one another.Chefs that take on been trained in China and ameliorate on distinguishable regional tastes should coiffe up pass water the core add-in items and the diffe rent regional items. The closing area that mustiness be convertible is accounting practices. The rate of flow monetary reports are being sent to the U.S. and massaged to meet U.S. GAAP (Bartlett & Han, 2013). All enterprises in China are required to use the Chinese youngs report Standards (CAS) such as the Accounting administration for line of products Enterprises (ASBE) (China instruct, 2014). ASBE has similar standings to the U.S. GAAP and the world-wide pecuniary describe Standards (China brief, 2014). An international financial analyst should be engaged in vow to hatful with both China and the U.S. financial reports and audits. Financial compendiumA financial analysis of the U.S. and China operations provided culture on Levendary Cafs touchable financial status. The income affirmation for China immoral be seen below. In China, their food and musical theme cost is at 51%, which sack up be attributed to their high number of food options on the menu and th e lack of dispersion system set up. formerly a core menu is created and more locations begin to clear-cut, Levendary Caf go forth be able to take advantage of miserliness of scale and lower berth food and base cost. China also has a high line cost at 24%. This could be a result of having to pay extra to get the better locations. In attachment the Chinese real earth market is very(prenominal) high signifi crowd outce that any location is very expensive.During the time of the fibre study the Chinese real estate was sledding finished a golden ten-spot (Ranasinghe, 2014) which give the bounce b parliamentary comelyness the higher(prenominal) occupancy cost that the Chinese instalment occurred compared to the fall in States. The pre- commencement spendings (12%) also contributed to the personnel casualty of income in the depression year for China. after(prenominal) the introductory year of business, China had a loss of $143,620. China operations also piddle a lower merchandise expense. Marketing is for the most part not a large expense in China because the local commonwealth listens more to wireless advertisement, which are cheaper, and rely on intelligence of mouth. Income Statement- ChinaThe financial statement of the U.S. operations, which fecal matter be seen below, shows that Levendary Caf generally follows industry standards. Their food and yield cost are close to lower than industry standards. Generally, food and lend be are about 29% of total sales, but Levendary Caf food and supply cost are at 24% of total sales. occupancy costs for Levendary Caf are about 4% lower than industry standards. Levendary Caf spends more on marketing then industry standards, about 2% higher. Income Statement- join StatesCultural Analysis**The supra teaching was sourced from The Hofstede Centre Website (Hofstede Centre, 2010).**By completing a cultural analysis on the 2 countries, United States andChina, it was favorable to de end point ine how the find out issue, being chat, came about. Geert Hofstede place volt different pro characters that demonstrate how determine in the oeuvre are influenced by culture ( world-wide job Centre, 2014). The different dimensions that Geert Hofstede place are ply Distance, Uncertainty dodge, individuation vs. fabianism, maleness vs. Femininity, and hanker precondition taste vs. small shape penchant.Through using these five dimensions one can quantify how each culture approaches these dimensions and how it influences them in the blendplace. The tot beside each dimension determines how much revalue they place towards each dimension. It is interesting to account that on lone(prenominal) one dimension, maleness vs. Femininity, the two countries mold a comparative target. It is with these differences that confabulation issues between the two countries can be seen. business leader DistanceThe index finger Distance place looks at the relationship that qu ite a little hold with others in that country. China scores very highly on this dimension as population value their spiffings and do not act out of doors of their rank in society. In regards to the case study it is be that Chen is unperceiving of his superiors power being Mia Foster. In the case Chen is continually rude to Mia and questions her authority. This can be attributed to two different factors. The first of which is that Chen was in the beginning selectd by Howard Leventhal therefore Chen believes that Mia is not his superior. Leventhal gave Chen freedom to balloon the Levendary business into China with little advocate or instruction.To feel a virgin CEO enter the business Chen go forth not feel the emergency to respect Mia, as he hushed believes his true superior is Leventhal. In admittance Chen, tour he is from the Chinese culture, had more experiences and training in the United States. hence it can be seen that Chen was of American culture and acted as such. The United States had a low score on the cause Distance so while Chen is with the Chinese peg of Levendary he mollify has the American cultural determine. Uncertainty evasionUncertainty Avoidance looks at the way that culture embraces uncertainty. With a low ranking in the Chinese culture it is spare that this country looks at laws as conciliative. This is seen in Levendary China as the standards between all the restaurants vary and are different from the brand standardsthat are seen in the United States Levendary stores. In addition the difference in accounting practices can be seen. The China di muckle was very voiced about their report of finance to the US section.Individualism vs. CollectivismThis dimension looks at how separates think and act, if it is for the great good or if it is for their own puff up-being. The Chinese culture looks out for the classify when do decisions. This is present in the case when Chen disrespects Mia Foster. He foregoingly considered Leventhal to be his group and when Mia takes Leventhals stick then he does not recognise her as an insider. This results in his mistrust of Mia and her authority at bottom the Levendary Caf company.Masculinity vs. FemininityThe Chinese culture has high ranking in this and is seen done Chens demeanor. He is very rivalrous and is eager to be successful. This is seen through his urge to keep his dapple with Levendary China and the immobile pace in which he candid the stores in China. In addition his actions of being very rasping with Mia Foster is because he feels threatened that she is severely to take over his position with Levendary. He had never had his business interceptd before by anyone from the Denver furnish so he put his back up when Mia started to interfere with how he was racetrack his operation. spacious stipulation Orientation vs. absolutely terminus Orientation wide limit and before long Term Orientation looks at how a culture is prepared for the coming(prenominal). The Chinese culture is very concentreed on forgening for a long-term incoming. This dimension demonstrated the American culture that Chen must pay off picked up on his time in America. With his time managing the Chinese segmentation of Levendary, Chen was very short sighted and un profuseened up a large fall of stores in a short fulfilment time. Instead of formulating a business pictorial matter, which would supercharge growth for the future of the business, Chen did not be piss one and was simply opening businesses when he found an ready(prenominal) location. put up Company vs. supplementaryIn this case, the erect company would be Levendary Caf U.S. operations andthe subsidiary would be Levendary Caf China operations. In toll of restaurant size, U.S. restaurants range from 2,500-4,000 public even up feet. China restaurants are smaller in size they range from 500-1,500 significant feet. These results in less staff guideed for China res taurants, some 13-20 staff members. The U.S. restaurants inquire about 24-26 staff members. The larger U.S. restaurants are able to agree more customers they unremarkably sop up 84-120 lay and can serve anywhere from 560-3,210 guests per day. payable to smaller size, China restaurants flummox a maximum of 80 seats shortly and can serve 260-430 guests per day.In terms of menu options, the entirely item that is offered in both the U.S. and China is the chicken sandwich. The suburban U.S./Denver restaurants return more tax tax and have a larger self-coloured footage then the China restaurants. However, the China restaurants have higher average revenue per square foot. Restaurants in capital of Red China make $537.33 revenue per square foot and restaurants in Shanghai make $576.00 revenue per square foot. The suburban U.S./Denver restaurants make $531.50 revenue per square foot. A chart can be seen below which clear details the difference between the lift and subsidiary company.Alternatives and RecommendationsAlternativesMia Foster is left with a very voiceless decision at the end of the Levendary Caf case study. As the upstart CEO of the company she has to make a decision that volition result in pro enclotheability for the company and chose an action programme that envisions long-term success for the business. As such that are a variety of alternatives that Mia Foster ordain have to chose from in order to move advancing with the company. The following list presents the many alternatives that should be considered 1. Shut down all operations and solely focus business in the United States. The China division stores look and feel vary from what the Levendary Brand is trying promote in their US fragment. In order to dwell with the stores in China then takings go forth lease to be consummate to all the stores. Mia Foster provide pauperisation to determine if the China division net are worth the renovations and continuation of Levendary C hina. 2. ack-ack Louis Chen and hire a unused animal trainer for the China segment. Louis Chen has turn up himself as a capable entrepreneur and person who is associationable of the Chinese retail market. However he lacks confabulation skills, which was obtrusive through the expansion of 23 Levendary shops in China that do not check with the brand realise.Chen is also highly confrontational and whitethorn not be the best fit with the new CEO, Mia Foster, as he already had built a rapport with Howard Leventhal, the previous CEO. If Louis Chen cannot correctly function and pass around with the US Levendary division then he may postulate to be re position by soul with a fresh survey on the business. 3. rent a management firm to manage the China divider of Levendary. It is apparent through the case study that the US segmentation of Levendary has not been able to communicate in an effective manner with an international grow of their company. The Hofstede Dimensions that were listed above demonstrates the cultural differences that infract the two severalisees of Levendary. With no cultural training Mia Foster and the US Division are not communicating mightily with Louis Chen. An alternative to the placement would be to hire a management firm to look after the China division. A management firm with International experience would be a solution to the conference problem because they would understand how to conduct business while ensuring good talk.4. take in a separate division of Levendary for the China stores. The Levendary stores in China are off brand from the air blueprinte pilot concept that is seen through out the United States. This is largely due to the fact there is limited intercourse because the key players in the United States and Louis Chen in China. In order to compel this problem it would be wise to bring the structure that work so well in the United States and duplicate this order in China. With 23 stores in China, Levendar y lead need a separate branch in China, as it give provide structure to that side of the business. With more backup players in China, asides from Louis Chen, then Levendary will be able to carry the brand and in addition, more reinforcement theater directors will undertake that communication is unplowed up(p) between the US Division and the China Division. 5. Make a conjunction proceed with TATA Group to expand into China. The TATA Group is a global enterprise headquartered in India, and comprises over nose candy operating companies, with operations in more than 100 countries (TATA, 2015).TATA has operating companies in China and as such they will be able to reduce the large operating costs that Levendary China is before long experiencing. As note in the Analysis and Evaluation section, the operatingcosts are very high. move into into a joint menace with a company who has open up infrastructure will help fleet these costs and allow Levendary to increase their inter net for the first couple of historic period. In addition the joint venture will allow Levendary to be partnered with people who are culturally aware and possess cultural intelligence. 6. deputize the US Division headspring Operating ships officer, cut ovalbumin. It was wanton to identify that communication was a large issue between the US and China Division Levendary.It is idle to target Louis Chen as the main culprit of this issue as he was combative and insulting to Mia Foster. However the shoot down can also be pose onto the COO of the US Division, Nick uninfected because he was responsible for keeping communication with China and overseeing the brand film in China. Nick White clearly let this responsibility go and as a result the China Division does not reflect the US vision for Levendary. If someone has to answer for the mistakes that were do in China than perhaps it should not be Louis Chen but instead it could be Nick White.Recommendation afterward evaluating a ll of the above alternatives for Mia Foster and Levendary Caf to travel along it was finalized that the best alternative would be number 4, create a separate division of Levendary for the China stores. This alternative includes variety the contract for Louis Chen and brings more handlers to China to help grow Levendary in the China market with the vision and brand image of the US Division. Levendary in the United States can contribute a large portion of their success to their ranked structure as it allowed for decorous communication and good reporting methods. If Levendary China were to create a China Division then it would allow for better communication between the United States and China and Chen would have the sustain he require to reassure the brand image is seen between all stores.Action imageIn order to sui disconcertly implement the alternative that was say above, an action excogitation is needed. The action plan is detailed below through tether different stage s. The Short Term curriculum looks at what the business should do in one years time, the strong point Term plan looks at what the business should do in two to third years time and the Long Term plan encompasses a five yearoutlook. This is detailed belowShort Term1) The first critical measurement that ask to be taken is to chequer that proper communication starts immediately between Mia Foster and Louis Chen. If the two parties were to sit unneurotic and put all of their issues out then they can sort their current problems. scratch line with good communication between Foster and Chen will ensure that it quells into their future business dealings.2) renew the contract with that Louis Chen has with Levendary China. Louis Chen has proven to be a valuable asset with Levendary Caf as he knows the retail market and is passionate about the work that he is doing. While it is moot that Chen did not complete his work in a successful manner, he was with out bread and butter and was condition little direction and free reign from the former CEO, Leventhal. With turn out and proper structure Chen should be able to work within these constraints. Therefore it can be seen that his contract should be renew for another term with the stipulation that Chen will be functional underneath other Levendary managers in China.3) Denver military headquarters will need to create a business plan for their operations in China. With 23 locations presently in China they will have to decide which locations needs renovations and if all 23 should be maintained. By restructuring the current operations in China, Levendary Caf will have a more think plan that will allow for the China operations to strive. If the Denver Headquarters were to work with Chen and use his knowledge of the China market than they can collaborate and grow a structure business plan.4) erstwhile a proper business plan has been haveed Chen will need immediate support in China. By creating a separate China Division Chen will have the support he needs to standardize operations and reinvigorate the Levendary brand. Managers with cultural training should be placed into the new China Headquarters. Chen will be a regional Vice chairman however a new unclutter manager will be placed in this division who will be above Chen on the pecking order and will be the direct clashing between itself and Denver.Medium Term1) govern operations all throughout the China Division. This includes a govern brand image through all stores and a consistent menu. As with all locations in the United States there are set menu items in all locationswith special items fit in to the region. Levendary China will need conduct market explore that will allow them to understand menu staples that should be available in all locations. In addition regional specialties should be included on the menu. 2) In addition to the standardization of restaurant practices the accounting practices will also need to be re take aime d. As per Chinese law all foreign business enterprises must follow the Chinese Generally Accepted Accounting Principles (China brief , 2013). Levendary China must follow Accounting Standards for Business Enterprises (China Briefing , 2013) and the Denver Headquarters should hire an international auditor who can then convey all be to follow the US GAAP. 3) Monitor the new business plan for Levendary China and ensure that it is being flop followed and that brand standards are being maintained.Long Term1) Mia Foster should monitor and respect China operations on a constant basis. This will ensure that communication is kept to a high standard and that the brand image remains constant. 2) Once operations in China flummox their place in the market, Levendary China should diagnose a Chief Franchise Officer who will develop franchise opportunities in China. This will allow more stores to be built and the brand to have more exposure with less of a expense put on the company. 3) A re-ev aluation of their foreign expansion should be completed. The company should decide if they would like to find other potential foreign markets where they could continue the growth of Levendary or if they should focus at once on their domestic growth.Additional Questions1. As it relates to the case, explain what this release implies An old mentor had once told Foster that there were lead types of managers in a new businesss evolution to greater scale the go-getter, the local top executive, and the original manager. All three types could be entrepreneurial in spirit, but not all were equally well suited for the heterogeneous stages of a businesss growth. Chen was clearly a go-getter who had evolved to ferment a local baron. The question in Fosters mind was whether he could transition to let a maestro person manager. Before answering the question of whether or not Louis Chen can suffer a passe-partout manager, it is important toidentify the characteristics of one. The watchwo rd in class brought to light that a passe-partout manager is someone that has an understanding of the long term goals of a company, understands the value of standardization among all locations and understands the value and importance of brand image. A passe-partout manager should also be ameliorate and trained furthermore, this individual needs to strike the role of striking and understand top managements goals and relay this information to his employees while hive away their feedback.Lastly, the class discussion brought to the surface that a professional manager should have extensive core knowledge on how the company should operate. Further research has shown that a professional manager should know how to plan, organize, lead and control all the efforts of his/her employees to escort the companys values and standards (Sandeep, 2013). Howard Leventhal chose Louis Chen for his role because of Chens button and enthusiasm. On a personal level it reminded Leventhal of himself at a younger age. Howard had told Chen to establish a strong market position as a base to eventually franchise outlets throughout China with the instructions to do the right thing by the concept but was given the freedom to operate the restaurants as he saw fit (Han & Bartlett, 2013). To enter the market in China Chen give tongue to himself We just have to be flexibleChinese eat few dairy farm products, so we should minimise our cheese soupmost people arent beaten(prenominal) with turkey, but they rage chicken, so well line up the menu just as we do in the States (Han & Bartlett, 2013). Chen believed that Levendary could succeed if it adapt its food and concept. jibe to Merriam-Webster Dictionary a go-getter is a person who works very hard and who wants very much to succeed (Encyclopoedia Britannica Company).Chen demonstrated the characteristics of a go getter as he open(a) up the first Levendary Caf only three months after move from Denver. This location was a corner run a ground floor location in a new storied office make and the concept of the restaurant was prominent and luxurious. This restaurant was positioned as casual dining with table service and higher prices than local fast food concepts (Han & Bartlett, 2013). This location proved to be a hit among the white-collar employees working in the building. Because of rivalry Chen was agonistic to move rapidly to purchase locations for the rest restaurants and in the first year managed to sacrosanct prime locations for good prices and grow the reach to23 restaurants. consequently Chen demonstrated he was a local baron with his in abstrusity knowledge of the Chinese market and was familiar with the neighborhoods in Shanghai and Beijing his real estate knowledge was a major(ip) asset for the Levendary brand. He said it himself that he was in the trenches cut 23 restaurants that he had built by reading market needs and displace opportunities (Han & Bartlett, 2013).Based on the information sedate from the case it does not appear that Chen could develop into a professional manager. Because Chen wasnt given any direction, he took it upon himself to change the concept, the look and feel and the menu items of Levendary Caf. However, the way he handled Mia Foster and her colleagues from Denver and found on the rendering of a professional manager Chen cant develop into a professional manager and Levendary should look for someone to lead the China team while he continues to focus on the 23 restaurants that he has already built.Chen also became very defensive when Mia move to communicate with him and based on the definition of a professional, he should be open to listen to their suggestions and commentary and adapt them to Levendary in China. If Chen had the instincts of a professional manager he would have taken it upon himself to touch sensation his colleagues in Denver to update them on the progress he was making in China and should have taken the standards and value s of Levendary Caf and applied them in China because that was his responsibility. To become a professional manager Chen would have to see the value of standardizing all the restaurants however he did provide a great platform for the future growth of Levendary in China and should be kept on the team with certain responsibilities and be made aware of the expectations from Mia Foster.Works CitedAgriculture and Agri-Foods Canada. (2010). Health and health Trends U.S. Market. Ottawa presidency of Canada. Bartlett, C., & Han, A. (2013). Levendary Cafe The China Challenge. Boston Harvard Business School. China Briefing . (2013, February 5). China GAAP vs. U.S. GAAP and IFRS. Retrieved February 10, 2015, from China Briefing http//www.china-briefing.com/ news program/2013/02/05/china-gaap-vs-u-s-gaap-and-ifrs.html China Briefing. (2014). Retrieved February 10, 2015, from China GAAP vs. U.S. generally accepted accounting principles and IFRS