{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

CASE25_SouthBeauty - South Beauty Group In Quest of...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
South Beauty Group: In Quest of a 'Beautiful' Growth Story INTRODUCTION This case demonstrates how the strategic management process helps firms define a full set of commitments, decisions, and actions to achieve strategic competitiveness and earn above-average returns. Looking toward the future, Zhang Lan, founder and Board Chair of South Beauty Group, has several challenging strategic choices ahead of her. Along with her top management team, she needs to follow the strategic management process to sort through a complex set of issues. To make sound decisions, the successful restaurant group must determine: What strategic inputs can be gleaned from a full evaluation of South Beauty Group's external and internal environments? What are Lan's desires and objectives for the company? How can they be integrated with the strategic inputs to establish a vision, mission, and strategy for the company? How should South Beauty Group prioritize and pursue market expansion opportunities? Do measures to achieve standardization fit into the strategic direction of the company? Which model and business expansion ideas are compatible with the company's strategy? How should South Beauty Group finance its expansion efforts? ANALYSIS External Environment Even though major cities throughout the country are not yet completely modernized, the booming economy in China presents a favorable general environment for business ventures of all types. The government is not necessarily emphasizing growth or activity in the restaurant industry, but disposable incomes are increasing, and consumers are looking for ways to enjoy leisurely time. Few spending limitations exist for business consumers, who respond positively to products and services related to their exclusive and healthy lifestyles. Within this general environment, the catering industry is experiencing rapid growth. The market's size has grown from 1.5% GDP in 1978 to 4.87% in 2007. Chinese consumers are dining out more frequently and have a demand for new tastes. However, the rising needs of the public are not being met by existing traditional restaurants, which typically offer one or more of the nation's distinctive "eight cuisines". In addition to numerous breakfast stands and street hawkers (characterized by low investment, few employees, and lower revenue per outlet), a variety of new restaurants are emerging on the scene to satisfy changing consumer tastes. The table below South Beauty Group - 1
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
South Beauty Group: In Quest of a 'Beautiful' Growth Story compares the three major restaurant categories which compete for a share of the catering business in China. The comparison indicates that Western fast food chains are achieving tremendous growth in the market. Hot Pots also pose a significant competitive threat with their Chinese cuisine and large share of the Top 100, especially if they act aggressively to overcome their unrefined image.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}