Levendary Cafe Case study 
Written Case Submission:
Levendary Café
Table of Contents
Introduction 3
Identification of Main Issue 3
Analysis and Evaluation 5
Operational Analysis 5
Financial Analysis 6
Cultural Analysis 9
Parent Company vs. Subsidiary 12
Alternatives and Recommendations 13
Alternatives 13
Recommendation 14
Action Plan 14
Additional Questions 16
Works Cited 18
Introduction
Levendary Café has grown from a small restaurant that offers soup, salad, and sandwiches in Denver to a multibillion quick casual chain that operates 3500 stores around the U.S. The founder of the Levendary Café, Howard Leventhal managed to establish a strong market position for the Levendary Café in the U.S and succeeded in creating a $10 billion business model. The Café has two important elements that differentiate it from its competitors, which were offering nutritious soup, salads, and sandwiches, as well as, providing exceptional service for their guests in a genuine, and friendly manner. The company’s philosophy is satisfying customers’ needs by trying to make an impact on their life and look for the long run profit as encouraged by founder, Howard Leventhal to his staff.
After 32 years of experience operating in the U.S domestic market and after a slowdown in the company’s domestic growth, the company considered expending its operation internationally, more precisely in China, a promising market that had shown a strong annual GDP growth of 14.5% in previous years, as well as, the arisen number of middle class income. The responsibility of overseeing the China operation was given to Louis Chen, a Stanford MBA graduate, after a two-year contract agreement between Leventhal and Chen in September 2009. A year and six months into the two-year term contract, Mia Foster was named the new CEO of the Levendary Café in February 2011. The public press viewed the new CEO as being inexperienced in the international market in addition to some doubt about Foster’s ability to
Levendary Café
Table of Contents
Introduction 3
Identification of Main Issue 3
Analysis and Evaluation 5
Operational Analysis 5
Financial Analysis 6
Cultural Analysis 9
Parent Company vs. Subsidiary 12
Alternatives and Recommendations 13
Alternatives 13
Recommendation 14
Action Plan 14
Additional Questions 16
Works Cited 18
Introduction
Levendary Café has grown from a small restaurant that offers soup, salad, and sandwiches in Denver to a multibillion quick casual chain that operates 3500 stores around the U.S. The founder of the Levendary Café, Howard Leventhal managed to establish a strong market position for the Levendary Café in the U.S and succeeded in creating a $10 billion business model. The Café has two important elements that differentiate it from its competitors, which were offering nutritious soup, salads, and sandwiches, as well as, providing exceptional service for their guests in a genuine, and friendly manner. The company’s philosophy is satisfying customers’ needs by trying to make an impact on their life and look for the long run profit as encouraged by founder, Howard Leventhal to his staff.
After 32 years of experience operating in the U.S domestic market and after a slowdown in the company’s domestic growth, the company considered expending its operation internationally, more precisely in China, a promising market that had shown a strong annual GDP growth of 14.5% in previous years, as well as, the arisen number of middle class income. The responsibility of overseeing the China operation was given to Louis Chen, a Stanford MBA graduate, after a two-year contract agreement between Leventhal and Chen in September 2009. A year and six months into the two-year term contract, Mia Foster was named the new CEO of the Levendary Café in February 2011. The public press viewed the new CEO as being inexperienced in the international market in addition to some doubt about Foster’s ability to
Cited: Agriculture and Agri-Foods Canada. (2010). Health and Wellness Trends : U.S. Market. Ottawa: Government of Canada. Bartlett, C., & Han, A. (2013). Levendary Cafe: The China Challenge. Boston: Harvard Business School. China Briefing . (2013, February 5). China GAAP vs. U.S. GAAP and IFRS. Retrieved February 10, 2015, from China Briefing: http://www.china-briefing.com/news/2013/02/05/china-gaap-vs-u-s-gaap-and-ifrs.html China Briefing Han, A., & Bartlett, C. (2013). Levendary Cafe. Harvard Business School. Hofstede Centre. (2010). Country Comparision. Retrieved February 10, 2015, from The Hofstede Centre: http://geert-hofstede.com/culture-and-strategy.html International Business Centre Oxfam Canada. (n.d.). Retrieved February 10, 2015, from Why are food prices rising?: http://www.oxfam.ca/grow/learn/why_food_prices_are_rising Ranasinghe, D Sandeep, P. (2013, 07 01). Meaning/Definition/Nature/Characteristics?Features of Professional Management. Retrieved 02 11, 2015, from Articles Junction: http://articles-junction.blogspot.com/2013/07/meaning-definition-nature.html TATA