Prepared by

Yihui Yan (Eva)

Ying Li (Yvonne)

Yunfeng Fang (Jerry)

• 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 ……)

Fun Facts

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

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

Franchise

zzzzzzzzz Global zzzzzzzzz Local

McDonald's

• First store in

China: Shenzhen

in 1990

• About 1,100

stores in China

up to 2010

KFC

• Establish its

first store in

Beijing in 1987

• More than

3,000

stores in China

in 2010

Malan Noodle

• About 400

stores in China,

including 110

stores in Beijing

and Tianjin

Competitive Franchise

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

41.32%

30.78%19.8%8.1%

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

Immense Labor Force 813.5 million

Low cost of labor, material and land

Business Environment Analysis Report

1.62 18.65

Business Environment Analysis Report

Culture

More McDonald's & KFC

Fit the fast-paced lifestyle

More receptive to fast food

A way of living, a part of life

Globalization

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

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

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

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

5

3

3

5

3

2

4

4

4

3

2

3

3

4

4

China

Demographics

Government

Infrastructure

Economics

Culture

Singapore Malaysia

Total 19 18 15

China offers more favorable business environment for Hardee’s than Singapore and Malaysia.

THANK YOU !

Any Questions ?