Group’s Private Equity Investment in China’s Little Sheep

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Case Study 1: 3i Group’s Private Equity Investment in China’s Little Sheep

Due Week 3 and worth 120 points

Read the case study titled, “Integrative Case 1: 3i Group’s Private Equity Investment in China’s Little Sheep,” located on page 391 of your textbook.

Write a two to three (2-3) page paper in which you:

  1. Assess the level of intensity of the major competitive forces affecting the Chinese restaurant industry using the five (5) forces framework. Speculate on the profit potential within the industry.
  2. Conduct a SWOT (strengths, weaknesses, opportunities, and threats) analysis for Little Sheep Catering Chain Co in which you examine at least three (3) strengths, three (3) weaknesses, three (3) opportunities, and three (3) threats. Recommend two (2) actions that Little Sheep Catering Chain Co. should take based on your SWOT analysis. Note: The SWOT analysis table does not count toward the final page length. Please include the SWOT analysis table in the appendix. Use Microsoft Word, or equivalent software, to create the SWOT analysis table.
  3. Using the VRIO (value, rarity, imitability, organization) framework, analyze the primary resources and capabilities that will enable Little Sheep Catering Chain Co. to generate a sustainable competitive advantage.
  4. Compare and contrast the fundamental benefits that Morgan Stanley, Goldman Sachs, and 3i offered Little Sheep in order to support its growth strategy. Agree or disagree with Little Sheep Catering Chain Co. awarding 3i the contract. Justify your response.

Your assignment must follow these formatting requirements:

  • Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
  • Include a cover page containing the title of the assignment, the student’s name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.

The specific course learning outcomes associated with this assignment are:

  • Examine competitive dynamics at the industry level in order to formulate effective global strategies.
  • Analyze internal capabilities of a firm in order to formulate effective global strategies.
  • Use technology and information resources to research issues in global strategy.
  • Write clearly and concisely about global strategy using proper writing mechanics.
Answer preview
The Chinese restaurant industry has become competitive due existing and emerging firms that have a profit motive. The high competition can lead to low-profit potential in the industry. Alternatively, and industry can apply strategies that can cope with competition plus other factors and emerge as a super competitor outsmarting the others by making huge profits. The intensity of the major competitive forces affecting the Chinese restaurant industry varies in the porters five forces framework. First, because the country has turned out in a consumption economy, the demand for ready food is very high. Consequently, the demand has led to the rising of more companies producing food. Due to the variety, the buyers go for the products that are of good quality with prices that are reasonable. They also go for a company that values them by giving better customer service (Morschett, Schramm-Klein, & Zentes, 2015).(985words)
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