Research On Corporate Performance Under The Jue Wei Food Asset-Light Operating Model

With the continuous upgrading of China’s consumption level and consumer philosophy,casual lo-mei products have become an important part of the daily diet in the current fast-paced life due to their casual and ready-to-eat characteristics.According to Frost & Sullivan,the market size of the casual brine products industry has a CAGR(compound average growth rate)of 13.87% from 2018-2021,and the report on the development of the brine category released by Meituan shows that the market size of the brine products industry will reach 369.1 billion yuan in 2022.The huge market prospect has attracted a large number of enterprises to join the competition,and the asset-light operation mode mainly based on franchise chain can enable enterprises to quickly seize the share in the casual halogen products industry,which not only enhances the competitive advantage of enterprises,but also helps enterprises to realize the optimal allocation of resources.The study of corporate performance has long been the focus of scholars and entrepreneurs at home and abroad,and there is no absolutely clear answer among scholars regarding whether the impact of the asset-light operation model on corporate performance is good or bad.Therefore,this paper takes Jue Wei Food,an asset-light company,as the case study,and selects data from its annual reports from 2017 to 2021 and CSMAR as the basis of this paper’s analysis,by making a side-by-side comparison with Huang Shang Huang and Chacha Food,both asset-light companies,and taking into account the average value of the agri-food processing industry.The impact of the asset-light operation model on Jue Wei’s performance is analysed,and individual recommendations are made to address the issues that arise.This paper adopts financial index analysis,EVA analysis,and non-financial index analysis to conduct a comprehensive study on the performance of Jue Wei Food.The results show that Jue Wei Food has achieved rapid expansion by adopting an asset-light operation model of mainly franchised chains,supplemented by directly operated chains.The asset-light model is more flexible and adaptable than the asset-heavy model,which has helped Jue Wei’s business performance to grow against the odds.At the same time,however,Jue Wei’s investment in research and development needs to be further improved compared to its sales costs,and the franchise model has led to a decline in the quality of Jue Wei’s products.Therefore,this paper makes recommendations to strengthen product quality control;establish multi-channel marketing to improve marketing capabilities;and increase investment in R&D innovation to improve R&D capabilities.It is hoped that this paper will serve as a reference for other companies in the casual brine products industry.Finally,this paper concludes that,although the adoption of the franchise model in the early stages of business operation is more helpful for marinated products enterprises to increase their market share,no matter which business model is adopted,it is necessary to take into account their characteristics and the current market environment,starting from solving their problems and sorting out a business model suitable for them in the process of solving problems.