1. Prepared by
Yihui Yan (Eva)
Ying Li (Yvonne)
Yunfeng Fang (Jerry)

2. 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

3. 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

4. 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

5. 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

6. Competitive Franchise
zzzzzzzzz
Global
zzzzzzzzz
Local
McDonald's
KFC
Malan Noodle
First store in
China: Shenzhen
in 1990
About 1,100
stores in China
up to 2010
Establish its
first store in
Beijing in 1987
More than 3,000
stores in China
in 2010
About 400
stores in China,
including 110
stores in Beijing
and Tianjin

7. 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%
19.8%
30.78%
41.32%

8. 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

9. Business Environment Analysis Report
Physical & Communication Infrastructure
Efficient transportations
1.9 million km of highway
78,000 km railways
97 airports
Internet users (CNNIC)
million, 31.6%
a well performed “cold chain”

10. Business Environment Analysis Report
Economics
Second largest economy by GDP
$ trillion at purchasing parity
GDP growth rate: 9.6%
Consumer inflation rate: % (2010)
Increasing disposable incomes
Ex: Shanghai: 28,838 Yuan
Countries with Largest Economies in 2010

11. Business Environment Analysis Report
Immense Labor Force
813.5 million
Low cost of labor,
material and land

12. 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

13. 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

14. Competitive Nations Singapore Economy
Highly developed market-based economy
The total GDP at Purchasing Power Parity is $
Inflation rate: 0.2%
Low-risk country, ranked No.1 in ease of doing
business rankings
Economic freedom: Less red tape and bureaucracy

15. 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

16. Competitive Nations Malaysia Population: 28.25 million Government
Demographics:
Population: million
Rapid urbanization: 65.1% of the total population
Government
Encourage and promote franchising
More than 233 franchisors in Malaysia
with 6,125 franchisees

17. Competitive Nations Malaysia Economics:
GDP: $ 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

18. 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

19. Recommendations Short Term Launch effective promotional activities
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

20. Conclusion China Singapore Malaysia 2 3 Demographics 5 4 2 3
Government 4 3
Infrastructure 3 4 3
Economics 5 4 4
Culture 3
Total 19 18 15
China offers more favorable business environment for Hardee’s than Singapore and Malaysia.

21. THANK YOU !
Any Questions ?