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Levendary Cafe Case study

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Written Case Submission:
Levendary Café

Table of Contents
Introduction 3
Identification of Main Issue 3
Analysis and Evaluation 5
Operational Analysis 5
Financial Analysis 6
Cultural Analysis 9
Parent Company vs. Subsidiary 12
Alternatives and Recommendations 13
Alternatives 13
Recommendation 14
Action Plan 14
Additional Questions 16
Works Cited 18

Introduction
Levendary Café has grown from a small restaurant that offers soup, salad, and sandwiches in Denver to a multibillion quick casual chain that operates 3500 stores around the U.S. The founder of the Levendary Café, Howard Leventhal managed to establish a strong market position for the Levendary Café in the U.S and succeeded in creating a $10 billion …show more content…

However, Chen had a different approach where he was trying to open as many stores as he could in a short period of time, paying little attention to the U.S standardized business model. The issue of standardization clearly was another challenge between Denver headquarters and Chen, as he insists in pushing what he thinks is right and resist what headquarter is asking him to do.
Cultural Difference Whenever a company is entering a new market it has to take into consideration the cultural differences between countries. Based on the case study analysis, the difference between the two countries in terms of eating out habits and eating preferences seem not to be understood by the Denver headquarter. Denver headquarter believes that it can enforce the same business model applied in the U.S to its stores in China, regardless of local preference. In addition, Foster seems to lack knowledge about the Chinese culture because she was not familiar with the market in China, as she had no experience working internationally. There was a lack of cross-cultural communication between Chen and Foster; even though, Chen had experienced both cultures while studying abroad in the U.S.
Limited experience in the foreign market
There was a lack of international market experience since the China market was the second

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