Levendary China Case Study

Topics: Han Chinese, China, Overseas Chinese Pages: 18 (761 words) Published: January 23, 2015
Levendary Café:
The China Challenge

By: Anna-Lena Mayer, Tobias Jüngst and Florian Beck

Agenda

Executive Summary
Company Overview
Market Analysis
Market entry China
Recommendation
Implementation

Executive Summary

• The headquarter needs all numbers of all
subsidiaries in the same reporting format
• The US Version of Levendarys will not work
throughout China
• If the necessary adjustments in some places
are too much, Levendary China should get a
new name
Executive Summary

Company Overview

Market Analysis

Market entry China

Recommendations

Implementation

Company Overview

•
•
•
•
•

Executive Summary

3500 cafes worldwide
Franchised
$10 billion business
New CEO Mia Foster
public company (IPO in January 2011)

Company Overview

Market Analysis

Market entry China

Recommendations

Implementation

Concept

•
•
•
•
•

Executive Summary

High quality fast food
Customer oriented service
Organic ingredients
Warm, comfortable atmosphere
High quality shop design

Company Overview

Market Analysis

Market entry China

Recommendations

Implementation

Organizational Chart
Mia Foster, CEO

EVP,
Administration

Peter Steele,
Chief Franchise Officer

Lucien Leclerc,
Chief Concept Officer

VP, Business
Dev.

Nick White,
Chief Operating Officer

VP, Fin/Acctg
VP, Legal

Executive Summary

SVP, Marketing

Regional VP´s, US
Market

SVP, Food

VP, Real Estate

Director,
Creative

Louis Chen VP,
China

VP, IS

Director,
Distribution

Director, Ops,
Tools & Learning

VP, Purchasing

Director, Online

Director, Catering

Company Overview

Market Analysis

Market entry China

Recommendations

Implementation

STEP Analysis

• Eating habits which are different from the U.S.
Sociological • Increasing trend of eating out

• High use of manual labour
Technological

• Per capita income in middle class surged from $942 to $2.576 in ten years from 2000-2010 Economical • Worlds largest producers of rice, corn and tea

Political

Executive Summary

• Corruption
• High government interference
• Strict labour and tax laws

Company Overview

Market Analysis

Market entry China

Recommendations

Implementation

Market Analysis

• 1.4 billion people
• Annual GDP growth of 14.5% (2000-2009)
• Food serving industry grew 80.47% in the last
5 years to about $300 billion
• Quick service sector grew 85.43% in 2009 to
about $70 billion

Executive Summary

Company Overview

Market Analysis

Market entry China

Recommendations

Implementation

• Entered China in
1987
• 3,000
restaurants in
450 cities
• Added local
items to the
menu
• Even altered the
fried chicken
seasoning

Executive Summary

Company Overview

• Entered China in
1992
• 1,100
restaurants in
110 cities
• Added local
items to the
menu
• Price level
stayed

Market Analysis

Market entry China

Pizza Hut

Kentucky Fried Chicken

McDonalds

Competitors

• Entered China in
1990
• 560 restaurants
• High-end casual
dining
• Target group:
Young affluent
Chinese people

Recommendations

Implementation

Market entry in China

• Louis Chen became CEO of Levendary China
• At first internship in each major headquarter
department and in some cafés
• A lot of contacts in china
• Experienced in the Chinese real estate market
• Chen adjusted the restaurants to local needs
• He opened 23 in the first year
Executive Summary

Company Overview

Market Analysis

Market entry China

Recommendations

Implementation

Key issues

•
•
•
•

Executive Summary

All reports are in the Chinese format
Fear of the loss of the company identity
Local responsiveness vs. global standardization
Headquarter control vs. subsidiary freedom

Company Overview

Market Analysis

Market entry China

Recommendations

Implementation...
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