South Beauty Group Case Analysis

I will use the Resources, Capability and Core Competences (RC&C) model and Value Chain Analysis (VCA) to analyse and determine the competitive advantage and strategy competitiveness of South Beauty Group.

A firm has a competitive advantage when it implements a strategy competitors are unable to duplicate or find too costly to imitate (Ireland, Hoskisson and Hitt, 2011, p. 4).

Strategic competitiveness is achieved when a firm successfully formulates and implements a value-creating strategy (Ireland, Hoskisson and Hitt, 2011, p. 4).

RC&C model

Resources

|Tangible Resources |Observations |
|Financial Resources |South Beauty Group’s estimated revenue in 2007 was RMB 384 million. |
|Organization Resources |South Beauty Group’s structure has 2 divisions: head office functions and restaurant operations. |
| |The head office manages the finances, HR, R&D marketing, quality control of food supply and strategy of |
| |the company. |
| |Individual restaurants manage its own operation, and a department specialise in managing and setting up |
| |franchises. |
|Physical Resources |As at 2007, South Beauty Group owns a total of 20 restaurants, 13 in Beijing, and 6 in Shanghai and 1 in|
| |Chengdu. |
| |Locations of restaurants are placed at office building in major cities in

References: 9th edition The Management of Strategy, Concepts and Cases, By R.Duane Ireland, Robert E. Hoskisson and Michael A. Hitt, 2011.