Xibei’s Business Model: Creating Shared Value for Stakeholders

By creating shared value (CSV) for stakeholders, Xibei, a 31-year-old catering company, managed to hold on to the number one spot in the Chinese food and beverage market in 2019. Founder and Chairman Jia Guolong said that the company’s creation of shared value for stakeholders was not a noble gesture, but a bid to generate higher business returns and rival other restaurant giants around the world. Over the past 31 years, this business model created a virtuous circle for Xibei, helping to continuously boost competitiveness. As of June 2019, Xibei ran 350 stores in 56 cities across China and had plans to expand into other markets. However, Jia recognized that it would be challenging to implement the CSV business model in the global market, which would test his and Xibei’s ability to capture and deliver value. If Xibei shared value but did not reap the returns, then the model would not work. So, how would Jia adapt the CSV model for the international market?