LEVENDARY CAFE ANALYSIS Essay Example | Topics and Well Written Essays - 1750 words

LEVENDARY CAFE ANALYSIS - Essay ExampleThus, she still cannot be considered as a seasoned chief operating officer and still needs to prove her power and efficacy for the responsibility. She still does not have any experience in establishing international or transnational brand either and while she had worked in a global accounting firm, the industry is way different from Lavendery Caf and thereby did not provide her the necessary learning curve for her new job. The rest of the management issues that Lavendery CEO MIA Foster is facing sprouted on this relative inexperience of hers.The most obvious difficulty that Foster is facing is how to manage their China point person, Louis subgenus subgenus Chen.Chen made a remarkable progress in establishing Lavendery presence in China with lonesome(prenominal) a short period of time. Even Foster admitted that Chen is an asset to the company only that he is difficult to manage. Chen seems non-cooperative with Foster in standardizing its operat ion according to its parent company in the USA as well as to conform to the companys format in financial reporting. Chens adamant to respect Fosters way may have been attributed by the fact that he was hired by Lavenderys founder Howard Leventhal and not Foster herself.They have several clashes with regard to their transaction strategy as well as their formats in their financial report. Chen seemed to have redesigned the concept of Lavendery Cafe in China that infuriated its Chief model Officer Lucian Lelerc to the point of asking Mia Foster to stop Chen now. Unlike in the United States where the concept of Lavendery Cafe is uniform and standardized with slight variations to allow a specific peculiarity of a regional securities industry (i.e. offering few soup items and more drink options in the South and allowing one or two regional specialties to be added to its core menu where it is listed in its menu items in order of local popularity) Chen seemed to have taken the variati on to the perfect with only Pudong and Beijing embassy row that has semblance to its counterpart in the US. Chens seeming non-cooperation to make his financial reporting conform with company format that is consistent with the Generally Accepted Accounting Practice (GAAP) is likewise a special concern for Foster because this can have implication not only in the operation of their business but pull up stakes also have legal consequences. The Chinese operation is reflected in the financial statement of Lavendery Cafe which will also be reported in turn to the Securities and Exchange Commission according to GAAP standards. Any deviation from good accounting practices may be penalized by SEC especially in this time of heightened awareness in accounting (Enron aftermath) and this could affect the image and the brand of the company whose repercussions are long-term. This will also incur unnecessary cost and manpower in reconciling the format of financial reports in hiring an external fi nancial analyst. In short, Mia Fosters kin with Louis Chen is problematic to say the least as Chen seemed antagonistic in listening to the directives of the CEO. Their conflict however in this kind of venture that involves multinational entity is not uncommon China due to their clashing culture and values (Tjosvold et al 168). With regard to whose perspective will works in China, it would also problematical to use Foster and Lelerc perspective as a yardstick in determining what is the best approach in gaining foothold in a immaterial market considering that both do not have experience in establishing a brand in foreign market. Moreso when Lavendery Cafes foreign market presence is only limited to Dubai and China. 2.