Levendary Café was born as a small soup, salad and sandwich restaurant. Under the direction of former CEO Howard Leventhal, who stood behind Levendary’s vision of “delighting the customer”, the restaurant was transformed into a multi-billion dollar firm comprised of 3,500 cafés nationwide. Leventhal stated that “Its wholesome soups, salads, and sandwiches using high quality ingredients, and a commitment to service in a comfortable, friendly, environment distinguished Levendary Café from other quick casual restaurants.”
Although Leventhal had done remarkably well with Levendary’s domestic expansion, analysts were concerned with the lack of future domestic endeavors and sought to expand on a global level. Levendary soon identified China as
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This has resulted in an identifiable and loyal middle-class customer base willing to make repeat visits and pay the premium prices to dine in the cafés. In China, the majority of the cafés cannot be operated in the same manner, as the majority of the population is not willing to visit the “premium” cafes on such a repetitive basis. This is a potential institutional void in China due to the fact that the cafés must be customized to meet the local customer’s needs, which may tarnish the “premium” image set in place by Levendary U.S.
Q3: Why did Levendary decide to enter China Market? How did its US foundation match against China market needs? (compare US Vs China market in terms of customers and operations)
A3: As Levendary’s domestic growth was slowing, the company began to discuss overseas expansion. “With a population of 1.4 billion people and annual GDP growth of 14.5% over the past decade, China was ripe for investment.”
In the U.S. market, “Levendary was built on a culture that emphasized delighting the customer". Levendary established a clear priority and successfully pursued it by accommodating customer requests. In the U.S. market, customer focus was on the “mommies” and the “yuppies”. Unfortunately, the business derived from this customer group did not support expansion in smaller towns through out the Midwest and South. However, in China, the urban population was rising and “a strong middle class
With 11,000 plus coffeehouses worldwide, it is evident that their strategy of being passionate about their customer relation and their devotion to delivering a quality product goes beyond culture and language.
The attached article discussed the risks and rewards of China going global. Critically analyse China’s international expansion. Also recommend what China can do to generate further economic growth for both its local economy and discuss how this can contribute to the global economic growth.
9. In what ways did China participate in the world of Eurasian commerce and exchange, and with that outcomes?
Café D Pownd is a campus cafeteria, which serves 450 students and faculty, on the campus at the National Academy of Liberal Arts. The Café’s busiest time is at dinner time, where two thirds of the residents are expected to be served between 5:00 and 6:30 pm. The café serves meals, beverages, salads, desserts sandwiches and other snacks. Most students pay with their student meal cards. The Café is designed with three waiting lines, L1, L2 and L3. Line one is for the pre-cooked meals, and it provides a menu of its items. L2 is for the interactive cooking station and the students get to pick what they want to be cooked at that time. L3 is designated for the payment of meals. They have numerous complaints
Positioning strategy helps a company in creating its identity and its products/service it provides (Anderson, 2011). Café Bijoux offers a relatively low price for a cup of soup and a sandwich, while offering healthy and tasty meals to their targeted market (primarily workers at the City Hall). To keep the cost low, the management did not printed a menu instead it was written on a chalkboard and was updated daily. In addition, the condiments were handed out to the customers as they picked up their orders. Business operations were from 10 am till 3 pm, mainly attracting customers from local surrounding business for lunch,
1. Statement of Problem: What are the problems being faced and the most important 3-4 decisions the company needs to make regarding the situation of the company in China.
Threat: Louis Chen, the VP in charge of Chinese business, is ruining the brand of Levendary Café. Customers come from all over the world. When they visit the store in China, they can tell that there is something wrong with the decoration and menu in the Chinese store. It will destroy the company’s reputation if they notice that the menu is totally different from what it is in the United States. There are Pizza Hut, Starbucks and other competitive American brands, which are growing steadily and widely. They will split the market share from Levendary Café.
Café Latte, a new espresso bar, is about to open in Pocatello, Idaho. The business was formed as a limited partnership between three siblings and a friend, Cynthia, Stuart, and Rob Chan, along with Jeff Burns, respectively. The Chans are somewhat knowledgeable about running a business
In scope, all three of Mia Foster’s issues are interconnected. To tackle each individually will suffice the next issue starting with Louis Chen and the China operations. If she were to review Levendary Café’s foundation, along with the Board and COO – Lucian Leclerc, they will be reminded that they are known for their willingness for taking risks – especially those that helped evolve its concept over time. What may have worked in Levendary Café #1 in the US 32 years ago may not work in
China is becoming more westernised, particularly the ‘cosmopolitan’ city of Shanghai, where demand for Western products is increasing rapidly as disposable income rises in line with China’s strong economic growth. Michel’s wanted to establish a foothold in the market at an early stage to demonstrate a long-term commitment, which has been identified as essential to compete successfully in the Shanghai market (per Tim Harcourt, Austrade Chief Economist).
Fock, H K. Y. and Woo. K.S. (1998). The China Market: Strategic Implications of Guanxi. Business Strategy Review, 9(3):
Bartlett, C., & Han, A. (2013). Levendary Cafe: The China Challenge. Boston: Harvard Business School.
People want to get their daily cup of great-tasting coffee in a relaxing atmosphere. Such customers vary in age, although most of clientele are college students and faculty. My market research shows that these are discerning customers that gravitate towards better tasting coffee. Furthermore, many college students consider coffee bars to be a convenient studying or meeting location, where they can read or meet with friends without the necessity to pay cover charges. For Café , this will provide a unique possibility for building a loyal client base. In addition, location of all three Bon! Café in city located to most visited places by young
Coffee shop is the famous business in Cochin. Coffee or Tea bar is a daily requirement for the local coffee lovers, and it is a place to dream big things in life and to discuss among friends and relatives and just a comfortable place to meet your loved ones or to read a book, all alone. With the growing demand for high-quality tea or coffee and great service, The Melody Coffee shop will mainly focus on the institute of management studies in Cochin and other private institutes also. The kind of culture will offer its customers the best prepared coffee/tea in the area that will be served with a muffin and a sweet, moreover we will provide some free books that many more old customers can read and enjoy their visit. The shop will operate a 70 square foot coffee bar near to the entrance of the institute of management studies in the building. The identified place can be obtained for lease for 8 months and it is possible to get a nearly extension in the upcoming months and years. The start-up funding which is available with Mr. Hemant is INR 80,000/- and it is surely that the remaining amount of Rs 50000 will be incurred through some commercial loans from the Bank of Baroda. The business is expected to gain more and more profit that will be more than 150000 per year. Melody Coffee shop will try to maintain a high gross profit margin and reasonable operating expenses throughout the year.
I feel that what helped them move along was the trust they had with the companies they were already dealing with because they had proved to them that they were more than capable and also focused on value and loyalty. The company put their customers first. They still believed in the old-economy know how. Another thing that made them stand above some of the others is when Li & Fung started to focus on the small and medium-sized enterprises (SMEs). This was decided after they did some market research. These smaller companies want the same options as the larger companies when ordering their products. Lifung.com allowed the smaller companies to at least get some options for customization unlike other online companies. Usually the smaller companies are not able to compete because they do not have the options to customize their product as much. By lifung.com being flexible and innovative it allowed them to reach even more businesses.