1 Case text: Xuan Sushi’ Entering the City: Where Should Small and Micro Businesses Go? 1 Abstract: Under the background of "Massive innovation and popular entrepreneurship", the academic researches on entrepreneurship are moving toward the stage of concepts and quantification, exploring the mechanism of its occurrence. When mainstream media cast their eyes on college students and entrepreneurial ventures, hundreds of millions of civilians are silently guarding their own shop from morning to evening. There is no expensive or cheap among entrepreneurship, this case selects one of the many small and micro enterprises in China — Xuan Sushi as the description object. From the perspective of the founder, it describes an ordinary person's entrepreneurial story, thus adding fun to the dry academic research and providing factual evidence for theories. Through the study and discussion of the case, MBA students can be enhanced to understand the theoretical aspects such as entrepreneurial traits and the identification of entrepreneurial opportunities. Keywords: Small and Micro Businesses; Xuan Sushi; Entrepreneurial Opportunity Recognition 0 Introduction At 15:15 on August 26, 2017, the rain in the sky was overturning like a waterfall, raindrops like beans hit the glass on the windows. The cigarette on the fingertips of Kun Wang was flickering, Coffee was still warm, but his eyes were somewhat stagnant, his thoughts were flying... I sat quietly opposite him, bowing down in the notebook to record the scattered plots he had told me. 1 Background 1.1 Brief of Xuan Sushi Located in Huaihe Road Pedestrian Street (Xin'an Mall Alley), Hefei City, Anhui Province, Xuan Sushi is a small store with a area of less than 10 square meters. This is also the main one 1.This case was compiled by Associate Prof. Hanhui Chen from School of Business Administration, Anhui University of Finance and Economics, with the supports of Kun Wang, the founder of Xuan Sushi. The authors own the right of authorship, modification and adaptation in the copyright. 2.Anhui Provincial Department of Education Project “Management Degree Case Library and Teaching Case Promotion Center is authorized to use this case and has the right of reproduction, modification, publication, publishing, communication of information on network, adaptation, compilation and translation. 3. Due to the requirements of confidentiality, necessary cover up is made for the name and data in this case. 4.This case is only for classroom discussion and does not imply or indicate whether a certain management action is effective. 5.This case was funded by the Anhui Provincial Department of Education Project “Management Degree Case Library and Teaching Case Promotion Center”.
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1
Case text:
Xuan Sushi’ Entering the City:
Where Should Small and Micro Businesses Go?1
Abstract: Under the background of "Massive innovation and popular entrepreneurship", the
academic researches on entrepreneurship are moving toward the stage of concepts and
quantification, exploring the mechanism of its occurrence. When mainstream media cast their
eyes on college students and entrepreneurial ventures, hundreds of millions of civilians are
silently guarding their own shop from morning to evening. There is no expensive or cheap
among entrepreneurship, this case selects one of the many small and micro enterprises in
China — Xuan Sushi as the description object. From the perspective of the founder, it
describes an ordinary person's entrepreneurial story, thus adding fun to the dry academic
research and providing factual evidence for theories. Through the study and discussion of the
case, MBA students can be enhanced to understand the theoretical aspects such as
entrepreneurial traits and the identification of entrepreneurial opportunities.
Keywords: Small and Micro Businesses; Xuan Sushi; Entrepreneurial Opportunity
Recognition
0 Introduction
At 15:15 on August 26, 2017, the rain in the sky was overturning like a waterfall, raindrops
like beans hit the glass on the windows. The cigarette on the fingertips of Kun Wang was
flickering, Coffee was still warm, but his eyes were somewhat stagnant, his thoughts were
flying... I sat quietly opposite him, bowing down in the notebook to record the scattered plots
he had told me.
1 Background
1.1 Brief of Xuan Sushi
Located in Huaihe Road Pedestrian Street (Xin'an Mall Alley), Hefei City, Anhui Province,
Xuan Sushi is a small store with a area of less than 10 square meters. This is also the main one
1.This case was compiled by Associate Prof. Hanhui Chen from School of Business Administration, Anhui University of
Finance and Economics, with the supports of Kun Wang, the founder of Xuan Sushi. The authors own the right of authorship,
modification and adaptation in the copyright.
2.Anhui Provincial Department of Education Project “Management Degree Case Library and Teaching Case Promotion
Center is authorized to use this case and has the right of reproduction, modification, publication, publishing,
communication of information on network, adaptation, compilation and translation.
3. Due to the requirements of confidentiality, necessary cover up is made for the name and data in this case.
4.This case is only for classroom discussion and does not imply or indicate whether a certain management action is effective.
5.This case was funded by the Anhui Provincial Department of Education Project “Management Degree Case Library and
Teaching Case Promotion Center”.
2
of Kun Wang's three sushi chain stores. The other two are located in Hefei University Town
and Guanting Road. The total number of employees is 24, and the main store occupies 14
persons. This unremarkable food retailer contributed more than three million RMB in annual
sales, and behind the simple organizational structure (Figure1), trademark registration
involved various categories. Although managers of three chain stores have share dividends,
Kun Wang is the only owner. The same store name and trademark are used, but the operating
model of Xuan Sushi does not belong to the corporate form.
Figure 1. Organizational Structure of Xuan Sushi
1.2 Store situations
The location of Xuan Sushi's main store once belonged to a lonely alley. Although it was a
step away from the pedestrian street with a huge stream of people, few pedestrians entered the
alley to look for something. The previous investments swung in the accumulation of
popularity. Until 2011, with the increases in the awareness and loyalty of consumer groups
increased, its orders began to be fully loaded, customers formed a long queue, and capital
return speeded up. The image store of the University Town was also put into action in 2012
(Figure2, 3). Although being a small shop, the previous investments cost Kun Wang
¥850,000 or more, while the progressive system of rent was also dropping small shop
owners into the dilemma of cost calculating when they opened the shop every day.
Figure 2. Main store Figure 3. Store of University Town
Xuan Sushi
Kun Wang(100%)
University Town store(5 Persons)
Pedestrian Street Store(14Persons)
Guanting Road Store(5persons)
Baolifeng Square Store
Manager
(1 Persons)
Cashier
(2 Persons)
Producer
(8 Persons)
Support Staff
(1 Persons)
Cleaner
(2 Persons)
3
Guanting Road Store is similar to the pedestrian street shop, both belong to a takeaway type,
that is, the type of walk-away after customers' purchasing. The University Town shop(UTS)
has added the dine-in service, and the environment is also much more elegant (Figure4, 5),
this is mainly due to the fact that the consumers are mostly young undergraduates.
Figure 4. Inside surroundings 1 of UTS Figure 5. Inside surroundings 2 of UTS
Uniform dressing and standard operating procedures are one of the magic weapons for
retail food stores to win. Facing customer's diversified requirements, all employees need to
cooperate in orderly and rapid completing of confirming orders, producing and delivering
(Figure6, 7).
Figure6. Process 1 Figure7. Process 2
1.3 Product category
Sushi is the main product of Xuan Sushi, the category of Sushi includes traditional egg yolk,
seafood, squid, cheese, fish seeds and other new taste sushi, and constantly creating new
product recipes and unique taste of sauce is Xuan sushi's core competence. In the era of being
constantly imitated, there is only one secret that remaining unsurpassed - that is, be faster than
others to find and adapt to the needs of market customers, and to lead them with product
innovation. Specific products are shown in Figures 8, 9, 10, and 11 below.