Levendary Café Case Study Assignment Help

Question 3: Involvement of head office
In the field of international management research, there has been varying perspectives regarding the role of the global headquarters (HQ) in the operations of foreign subsidiaries. Levendary Café global headquarters has had a very “hands off” approach to managing its Chinese subsidiaries. Apart from the radical departures to branding, the accounting has been non-standard, not complying with head office procedure.

(a) Critically discuss the role in which Levendary Café global HQ should play in managing the operations of the Chinese foreign subsidiary.

(b) What level of decision-making autonomy should the management of the Chinese foreign subsidiary be given in strategic and operational level functions?

(c) Discuss two examples of foreign subsidiaries, one example where the foreign subsidiary which was supported direct global HQ involvement and the other example of a foreign subsidiary which had more freedom and minimal global HQ intervention. Evaluate which approach worked best and why.