Transcript PPT
Fun Facts
• Slogans of Hardee’s
- Where the food’s the star.
- Hardee’s. Come on home.
• Unique Strategy compared with its competitors
- Offer high-calorie fast food to appeal to those who
care more about taste, less about their weight
Ex: MONSTER Thickburger
• Successful Children’s Advertising
- Kids meal toys
(Disney characters, Smurfs ……)
1990
Franchise
History
Founded by Wilber Hardee in Greenville,
North Carolina in 1960
First franchise store in Rocky Mount, North Carolina in 1961
Went public in 1963
Purchased by Imasco in 1981
Wholly-owned by CKE Restaurant, Inc. in 2007
More than 1,900 stores in 30 U.S. states and 9 countries
Ranked 16th in “Entrepreneur's Franchise 500®” in 2010
Franchise
Market Assessment
The fast-food market in China is developing favorably
The local and foreign competitors are challenges
for Hardee’s
The low-cost of ingredients and labor in China are evidently
profitable and available advantages
Franchise
Future Outlook in China
Factors that ensure a promising future in China
Higher purchasing power and less trade barriers
Receptive attitude of Chinese people
The high-quality and low-cost supply of raw materials
On the whole, Hardee’s will expand from metropolises
like Beijing, Shanghai, and Guangzhou to other cities
Competitive Franchise
zzzzzzzzzGlobal
McDonald's
• First store in
zzzzzzzzz
Local
KFC
• Establish its
Malan Noodle
• About 400
China: Shenzhen
first store in
stores in China,
in 1990
Beijing in 1987
including 110
• About 1,100
• More than 3,000
stores in China
stores in China
up to 2010
in 2010
stores in Beijing
and Tianjin
Business Environment Analysis Report
Demographics
Large population: 1.4 billion (0.629%)
- one fifth of the world’s total
Urban population: 566 million
- Beijing: More than 22 million residents
Age Structure
- Young generation (15-39) 41.32%
With highest purchasing power
High Population Density:
133 people per sq km
8.1%
30.78%
19.8%
41.32%
Business Environment Analysis Report
Government
1978 Deng Xiaoping
- Market-oriented reforms and opening-up policy
2001 joined the WTO
- Reduced barriers & Implemented favorable polices
Commercial Franchising Regulation & Latest Tax Law
- “ Foreign franchisors are now on an even playing field
with local franchisors.”
-- China CFR
Currency: Yuan (RMB)
- Possibility of RMB to replace the dollar as an international
currency
Business Environment Analysis Report
Physical & Communication Infrastructure
Efficient transportations
1.9 million km of highway
78,000 km railways
97 airports
Internet users (CNNIC)
- 420 million, 31.6%
a well performed
“cold chain”
Business Environment Analysis Report
Economics
Second largest economy by GDP
- $ 10.084 trillion at purchasing parity
- GDP growth rate: 9.6%
Consumer inflation rate: - 0.7% (2010)
Increasing disposable incomes
Ex: Shanghai: 28,838 Yuan
Countries with Largest Economies in 2010
Business Environment Analysis Report
Immense
Labor Force
813.5 million
Low cost of labor,
material and land
1.62
18.65
Business Environment Analysis Report
Culture
Globalization
More McDonald's & KFC
Fit the fast-paced lifestyle
More receptive to fast food
A way of living, a part of life
Competitive Nations
Singapore
Demographics
Population: 4,987,600
Age structure: similar to China
- Young generation with high purchasing power
Urbanization completed in 2008
- 100% of its population is urban citizens
A middle class society
- Nearly 70% of the total population is middle class
Competitive Nations
Singapore
Economy
Highly developed market-based economy
The total GDP at Purchasing Power Parity is $225.338
Inflation rate: 0.2%
Low-risk country, ranked No.1 in ease of doing
business rankings
Economic freedom: Less red tape and bureaucracy
Competitive Nations
Singapore
Culture
Westernized life style
Main language: English
Various culinary cultures
Shortcomings compared with China
Smaller market size and lower growth rate
The labor and land cost is much higher
- The hourly compensation cost
Singapore: $19.5, China: $1.36
Competitive Nations
Malaysia
Demographics:
Population: 28.25 million
Rapid urbanization: 65.1% of the total population
Government
Encourage and promote franchising
More than 233 franchisors in Malaysia
with 6,125 franchisees
Competitive Nations
Malaysia
Economics:
GDP: $403.042 billion at PPP in 2010
Relatively open state-oriented and
newly industrialized market economy
3rd largest economy in South East Asia (2007)
The boom of tourism industry leads the food
industry prosperous alongside
Competitive Nations
Malaysia
Food culture
Preferences to local spicy food
Shortcomings compared with China
A relatively high inflation rate (0.4%),
smaller market size and lower market growth rate
Protectionism of the government
Recommendations
Short Term
Offer low-price food with superior quality and service
Launch effective promotional activities
Provide healthier food
Long Term
Keep working on products and service innovation
Implement both standardization and localization strategies
Open more stores in various favorable locations
Conclusion
China
Demographics
5
Singapore Malaysia
2
3
Government
3
4
2
Infrastructure
3
4
3
Economics
5
4
3
Culture
3
19
4
18
4
Total
15
China offers more favorable business environment for
Hardee’s than Singapore and Malaysia.