Levendary Café: The China Challenge

Individual Case Study – ‘Levendary Café: The China Challenge’

Bartlett, CA & Han, A 2011 (rev 2013), ‘Levendary Café: The China Challenge’, Harvard Business School Publishing Brief Cases – 4357 (4357-PDF-ENG).

https://services.hbsp.harvard.edu/services/proxy/content/50856547/50856567/6240f705f0344e7b9e8e87a3256385e5

 “This document is authorized for use only in Contemporary Issues in Int Management-1 by Jonathan D’Cruz, RMIT University from July 2016 to December 2016.”

  • Question 1: The appropriate expansion path 
From the case study, Mia Foster, the CEO of Levendary Café strongly believes in the standardisation of a brand, making sure that there are no differences in the offering of the product. Out of the 23 Levendary Cafés that Chen had opened in China, only two very closely typified the company brand as it was known in the USA the country of origin. According to Chen, the other cafés were meant to suit location requirements. However, Foster was aware the McDonald’s brand had not been altered even as it expanded into China—it was only slightly modified to include rice porridge in the breakfast menus. Denny’s Japan on the other hand had altered its entire menu to meet local requirements, when Denny’s, an American restaurant company, entered the Japanese market—and by doing that it attained great success.

 Discuss the pros and cons of standardisation of business operations for multinational corporations offering a brand in multiple locations across the globe. (350 words)…

SAMPLE ANSWERS

Question One

The pros

Standardization can be defined as the process in which a company creates a uniform production process throughout the organization.  The first advantage of standardization of the production process in the international market is that it reduces the costs by lowering the cost of installing equipments, reduces the need to maintain a huge pile of inventory as well as lowering the maintenance costs along the multinational company to take advantage of the economies of scale that would accrue from purchasing………………Place an order for a customized paper written from scratch

The cons

Standardization means that the customer buys a product that is not differentiated and is not unique in any way. This presents an opportunity to the competitors to come up with tailor made products that are branded to meet the specifications of the local market (Rentfrow, 2007). The other disadvantage is that the multinational organizations risk the loss of responsiveness especially………………Place an order for a customized paper written from scratch

find the cost of your paper