Paper Example on Chinese Outlets

Clarification and Order of the Problems

The main problem was the reporting criteria that the Chinese outlets utilized. The second priority was the type of financial method for issuing statements. The third problem was the absence and failure of a strategic plan in the management of the Chinese stores. The implementation criteria of the new changes were also a challenge to the new CEO.

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The Objective Statement for Solving the Problems and Implementation

Reporting

The first agenda of the meeting between the CEO, Foster and Mr. Chen was to deliberate on the method of submitting financial statements to the management. According to Steel's investigation and findings, it was appropriate for the new chains of restaurants to use the traditional GAAP figures that the US restaurants used in reporting their financial results (Han & Bartlett, 2011). The alignment in reporting would promote transparency in the operations and as such, assure the management of efficiency. The procedure of monitoring the operations needs to comply with the foundation principles which require all the managers of the outlets to report to the district managers. In China, Foster needs to establish a management office in which Chan can head. The store supervisors would be answerable to Chen who in-turn would report to the general director in the USA.

The CEO and Chen would also need to agree on how to hire an expert to conduct the financial analysis after evaluating the advantages and the disadvantages of using external services or local personnel. Basing on Chen's warning about the expenses that the company would exhibit in hiring a foreign financial analyst, it is advisable for the management to recruit an individual with the knowledge about Chinese taxation and policies.

Foods and Menu

The standard of the menu in some outlets that Chen opened was of low standards. The CEO and the management need to extend the Operating Tools and Learning (OTL) that is currently operational in the US market to the Chinese stores. OTL would help teach the employees and the new executives of the upcoming stores to develop the knowledge and skills of maintaining and embracing excellent local production and supply.

There is however, need to allow for the managers to allow for modification of menu in some of the stores especially those in the Chinese rural settings. The quality of the menu would however need regular checks and tests to maintain high quality standards. Establishing an office of a Chief Concept Expert in China facilitate the implementation of excellence in the menu and quality of the foods.

Franchise

The state of the 23 outlets in China revealed shocking and anxious alterations in design for others while some showed changes in the menu. Moreover, the furniture in some restaurants was locally made and different from the standard Levendary wooden classic chairs (Han & Bartlett, 2011). The CEO needs to adopt the franchising system that exists in the US stores. Similar to the US market, franchise of some of the 23 outlets that are operational in China would promote high quality services and condition of the restaurants. Licenses would be issues to companies that meet the standards of the US restaurants.

Additionally, Foster in the agenda needs to discuss the preparation of a long-term and short-term strategy to facilitate the implementation of the management changes. Chen stated that he has successfully been operating and managing the outlets without a strategic plan (Han & Bartlett, 2011). Despite the leader of the Chinese stores being ambitious, it was essential for him to be professional. The facilitators of the tactics to implement the changes would be the CEO and the general executive from the USA. Foster assured Chen of the commitment to offer any form of support during the process. The established approaches would also limit the autonomy that Chen exercised in the management process.

Monitoring and Evaluation

After the implementation of the approaches that the CEO and Chen would have proposed, it will be necessary for the board to ensure monitoring of the operations to assess the progress of the changes. The evaluation would also reveal the effectiveness of the strategies and changes to the operations and continuous growth of the Chinese Levendary cafes.

References

Han, A., & Bartlett, C. A. (2011). Levendary Cafe: The China Challenge. Harvard Business School Cases, 1. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=79831144&site=ehost-live