Levendary Cafe case Study Example | Topics and Well Written Essays - 750 words

Levendary Cafe - Case Study Example However, the failure of this company and other companies in the Chinese market is not due to poor management. The failure has primarily resulted from failure to carry out a concise and thorough research. For example, Pretzel Time was unsuccessful in the market as a result of ignorance of proper sitting arrangements. This company overlooked the need to study and adapt decent decor. Hence, the tile dà ©cor they used in its establishment was for a bathroom. The failure by the designer of this company made it lose many potential customers. In addition, the other element which needs to be noted concerning entry into the market revolves around the VP’s decision to select many locations across the country. One can easily assume that VP’s objective for the entry was to ensure that the businesses succeed even during their first year of operations. The assumption is null, since your objective seems to have been to come up with a reliable market niche. From this, the business would have been expanded further. It seems that Chen’s choice of locations depended on their prices. Therefore, he wanted to reduce costs at all levels, so as to come attain his desired goal of achieving a successful business. It is also important to note that the plans to enter the Chinese market were poorly implemented. The poor implementation of the plans is depicted by how this company took long to realize its need to adopt GAAPs for accounting purposes of revenue collected. The VP considered this step to be so expensive. 1. The company needs to close down Chinese-like restaurants and to replace them with those restaurants that assume an American concept. This decision will be effective since competitors such as McDonalds and KFC have remained in foreign markets and still have a good customer base. 2. The headquarters, under your leadership, can embrace a mixed concept aspect. The aspect needs immediate change of the services offered so that at least two menus are served in