A Corporate Entrepreneurship Success Story or Failure

Corporate entrepreneurship is a multifaceted and core concept in an organization which can influence its future development. It can be a strategy which relates to the supply chain and production. It can also be an extensive transformation of structure which leads the organization to be innovative. However, the most important thing is that positive corporate entrepreneurship in an organization makes it suitable to any change in the external environment. The corporate entrepreneurship in Inner Mongolia Little Sheep Catering Chain Co., Ltd which is called ‘Little Sheep’ by customers is such a positive example in its development but a negative one in its consequence. As a young Chinese meal industry started in 1999, it has witnessed a great achievement but still change dynasties this year (Xie Binhui, 2011). To some extent, the corporate entrepreneurship in ‘Little Sheep’ is not helpful to its development in the long term. This essay will analyze and evaluate the success and failure in its growing history, finally a clear conclusion will be presented.

The basic and most important thing in an organization is to survive from environmental turbulences in today’s market. In other words, corporate entrepreneurship should be formed to fit the fast-changing and complex environment and any appeared uncertainties. In this case, to find, evaluate and exploit opportunities become important. ‘Little Sheep’ is exactly such an organization which has held opportunities to develop. It was founded and expanded from a four hundred square meters’ restaurant which can hold only thirty tables and fifty employees on August eighth, 1999. The beginning of ‘Little Sheep’ root from the insight of its founder, Zhang Gang. He happened to explore the chance while having dinner in Tongliao, Hohhot in 1998. This experienced man observed that a Sichuan hot pot restaurant had already owned three branches in Hohhot at that time and there is bright future in mutton hot pot market. The free hot pot...