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Cafe - Case Study Example

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The concerns/ worries of Mia Foster included: Wall Street’s opinion that her lack of international business management skills would affect the running of the Cafe on an international scene – China; unwillingness by the CEO of Levendary Cafe - Louis Chen to follow the proper…
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Download file to see previous pages The roles and responsibilities of Louis Chen include: Ensuring the continuous running of the Levendary Cafe in China; making strategic decisions that would enable the company to stay competitive and in business against market trends.
The company expanded from the USA to China due to the reason that its domestic growth was slowing down progressively from 2008. The company chose to expand by setting up a strategy team that would be used to research on available opportunities in China. More to that was the fact that China had a high potential for investment since their GDP was 14.5% for the past decade and they had a high population of approximately 1.4 billion people. Out of this, the urban population had risen from 36.2% to 46.6% between 2000 and 2009.
This was an issue that was discovered and brought about by Mia Foster to the Levendary Cafe CEO in China - Louis Chen. The issue was that Louis Chen was not willing to ensure and implement global standardization of procedures.
This was an issue that was projected by Mia Foster to Louis Chen. According to Mia Foster, the CEO of Levendary Cafe in China – Louis Chen was not up to the task of implementing changes that would boost future operations of the organisation.
Louis Chen did not follow the standard GAAP Accounts and reporting procedures for Levendary Cafe in China. Apparently, the financial and management reports that were being sent to Denver were in a format that had been “massaged”.
This was an issue where Mia Foster implied that the way Louis Chen managed the China operations would not sustain the company in future. For example: his refusal to follow a standardized global operating procedure; not adhering to GAAP accounting standards.
In order to address the challenges being faced in China operations, Mia Foster has to follow the following actions: Raise the questions about the China operations to Louis Chen; confront Louis Chen on the issues ...Download file to see next pagesRead More
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