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.