Hardees Situation and Opportunity Analysis - Essay Example

? Global marketing: Hardee’s situation and opportunity analysis report Executive summary Hardees is a big global food company thatwas started in the year 1960. The organization has initiated restaurants in different countries, and intends to expand its market share by entering the Australian fast food market. Its products include the uniquely produced burgers, fries, and beverages. It faces stiff competition from other similar global firms such as McDonald. The company has sustained its competitiveness in the market because of its major strengths that include innovativeness and production of different products from competitors. Even though, the firm has a smaller market share compared to its major competitors, it has opportunities to expand its market. This is because it focuses on drawing the right audiences. For instance, it attracts many youths through its brand image. Many youths consume fast foods because they consider it cheap. Additionally, effective leadership in different departments within the restaurants enables the firms to deliver high quality services and merchandise. Global marketing: Hardee’s situation and opportunity analysis report Hardee’s is one of the top companies that deal with fast foods in the United States. The company was commenced in the year 1961. It operates in about 30 states in the United States with a total of approximately 1900 restaurants. Its main strategy that enables it to stay competitive in the market is being innovative. This process focuses on upgrading the quality of its products, and enhancing premium development. Some of its products include ice cream, biscuits, and burger. The firm managers are currently planning to expand its market into the fast food market in Australia. Its major rivals in the country would be McDonalds, KFC, and Hungry Jack (Hardee’s Food System, 2013). Company structure, Capabilities, and Resources The company’s organizational structure consists of different management levels. The top management levels include the CEO, the director, and the Chief Operating Officer. The lower management levels include the restaurant managers, shift managers, and the assistant managers in different departments. The structure is also based on work specialization where employees do specific jobs. For instance, they have specific workers for cooking, serving, and taking orders. The company has the ability to carry out effective promotional campaigns because its organizational structure makes it easier for managers to have considerable control over the restaurants. Some of the company’s resources include its effective human resource and restaurants that are clustered in limited geographical areas. This clustering gives the firm the ability to dominate the regional markets. It also enables it to have more economies of scale benefits in the limited regions. Its other resources include its foods chains that consist of many types of fast foods such as burgers, fries, and several soft drinks. The company also has many franchisees such as the Boddie-Noel Enterprises that have contributed to its expansion (CKE Restaurants, 2012). Products, markets, Distribution, and supply Hardees is the major fast foods company globally. Its products include the different types of burgers, fries, desserts, and chicken sandwiches. It is among the companies with the largest market share. This is because of its 475 restaurants and more than five hundred franchisees. The company holds about 1 percent of the entire global market share. Although this percentage may seem too small, the market share is expanding each year because of increasing sales. The analysis of its sales show that the company has increased its sales by about 61 percent since the company was stated. That company noticed that most of its customers buy the “take away” foods. As a result, it improved its packaging to satisfy such customers. For instance, it introduced the new coffee cup with lids. Additionally, the company realized that its sales were reducing in the past years because customers were complaining about high cholesterol and fat contents of the company’s foods. Consequently, the corporation began using vegetable oil unlike most of its rivals. This helps in increasing the popularity of foods. Hardee’s profitability increases because of its effective distribution and supply systems. The distribution system is very advanced. For instance, whenever sales are rung up the company decrements its inventory according to the recipe. The company has an intelligent controller that helps in the circulation of the inventory order, and submits it automatically to the firm’s network. The mangers then approve the inventory at the company’s network. The managers can then forward the information to the manufacturers and distributors to ensure that all the restaurants receive supplies in time. The firm has about three manufacturing and eleven distribution plants that helps it to make about 250 to 1500 deliveries per week in each restaurant (Hardee’s Food System, 2013). Competitive environment and industry situation The company faces competition from other large similar firms. It still faces competition from some of the most popular fast food companies such as McDonalds, KFC, and Hungry Jack in Australia. Most of companies produce similar products meaning that Hardees will face threat of substitute products from other companies. However, the company’s focus on innovation will enable it overcome this threat. Additionally, Hardees competitors focus on take-home foods in Australia. Hardee’s will also stay competitive because of its high quality packing services. Even though the industry faces the food substitution challenges, Hardee has many advantages that entail providing new meal experiences to its customers through its innovativeness (Young & Kaufman, 1997). The company will also face some difficulties when entering the Australian market due to various barriers. For instance, there is a high concentration of restaurant businesses in the country. This will give the company a hard time during its early establishment (Chandrasekaran &Tellis, 2008). However, the company’s global brand recognition will enable it to complete effectively against the small saturated and new businesses in the market. In addition, it will be difficult to compete against the big companies such as McDonalds that have already acquired larger market shares in the country. However, Hardee’s focus on high quality and differentiated products will enable it to acquire larger shares because of its potential to increase its customer’s loyalty. The firm will face less competition from the new industries than penetrate the market. This is because the high costs of entry and capital will be an obstacle for the new firms (Zou &Cavusgil, 2002). Besides, the new entrants will be hindered by the strict government regulations that face the food industry. In addition, the market has stiff competition because consumers have low costs of shifting to other better firms. If a company loses its customer’s loyalty, it will be easier for them to start buying similar products from other restaurants. Furthermore, it will be easier for Hardees to operate in Australia because suppliers have low bargaining strengths in the industry. This is because the shifting costs from one supplier to another would not be very high. In addition, there are many suppliers in the country. The industry also faces the fast food stigma challenges in Australia just like other countries because of health campaigns against the fast foods (Levitt, 1985). Synthesis of strengths relative to potential opportunities Hardee has several strengths that will give it opportunity to expand the market for its products in Australia. One of the strengths includes its differentiated products such as the Charbroiled burger that other firms do not produce. This will create an opportunity to attract customers to the firm’s unique products (Craig & Douglas, 1996). In addition, the company focuses on improving the quality of its products through the sate-or-art technology. This will increase the company’s opportunity to increase it consumer’s loyalty in the new Australian market. Moreover, the company’s brand recognition will give it a growth opportunity in the new state (Datamonitor: CKE Restaurants, Inc., 2010). Through its high quality and unique products, Herdees possesses popular brands globally. This will make it attract more customers faster. Additionally, the company’s brand image makes it very attractive to youths. This is also an opportunity to expand its market in the new country because many youths consume fast foods. In addition, the company has an extensive hospitality. This will also help in the consumers’ attraction. The other strength includes its effective marketing strategy. For instance, the company invests in the advertisement of its products. It also gives a nutrition description of its products within its menus. The marketing strategy will increase the company’s opportunity to increase its brand recognition in the new country. Hardees management styles such as specialization will help in ensuring the smooth operation in Australia. However, the company may experience some threat that may hinder it from realizing the opportunities. One of the threats includes competition from its rivals. The other threat may include political and legal barriers that also affect comparable business. Strategic fit evaluation and opportunities identified and justified. The company has the opportunity to comprehend its opportunities in Australia. This is because of its innovativeness that helps in enhancing the differentiation of the products (Aaker & Damien, 2010). The company has successfully used the innovative strategies when entering other markets that have contributed to its success. It addition, the company has enough resources, which will enable it to meet the customer’s satisfaction in the new market. One of its vital resources includes their human resources that contribute to increasing its competitiveness. The company’s managers have strong leadership skills that will make them ensure that the business realizes its objectives through the alignment of the firm’s activities with its goals. In addition, the company is capable of delivering the high quality services to its customers in the new country because it has motivated workers. The company’s workers are vey self-driven because the company focuses on satisfying their needs (Kotabe & Kristiaan, 2010). Conclusion Hardees is among the worlds’ most popular restaurants. The company’s strengths such as highly recognized brand and differentiated products will enable it successfully enter the Australian fast foods market. The company has various opportunities to expand in Australia because it has enough resources that will enable it to carry out all the necessary activities. In addition, the company can align its activities with goals that are important success factors in a business. References Aaker, A. and Damien, M.(2010). Strategic Market Management, Global Perspectives. Chichester, UK: John Wiley & Sons. Kotabe, M. and Kristiaan, H. (2010). Global Marketing Management. Hoboken, NJ: John Wiley & Sons. Chandrasekaran, D. &Tellis, J. (2008), Global Takeoff of New Products: Culture, Wealth or Vanishing Differences? Marketing Science, 27 (5), pp.844-860. CKE Restaurants. (2012). CKE Restaurants SWOT Analysis, 1-7. Retrieved from: http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?sid=61f5e533-539b-4f0a-b5ab- a5e9099a8c64%40sessionmgr115&vid=4&hid=16 Craig, C. & Douglas, P. (1996). Responding to the challenges of global markets: Change, complexity, competition and conscience. The Columbia Journal of World Business. Volume 31 (4): pp 6-18. Retrieved from: http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?sid=61f5e533-539b-4f0a-b5ab- a5e9099a8c64%40sessionmgr115&vid=4&hid=16 Datamonitor: CKE Restaurants, Inc. (2010). CKE Restaurants SWOT Analysis, 1-8. Retrieved from: http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?vid=3&sid=61f5e533-539b-4f0a- b5ab-a5e9099a8c64%40sessionmgr115&hid=16 Hardee’s Food Systems. (2013). Franchise opportunities. Retrieved from: http://www.hardees.com/company/franchise Levitt, T. (1985). The Globalization of Markets. Harvard Business Review. Vol. 61, pp.92-102. Retrieved from: http://ehis.ebscohost.com/eds/pdfviewer/pdfviewer?sid=61f5e533-539b-4f0a-b5ab- a5e9099a8c64%40sessionmgr115&vid=4&hid=16 Young, M. V., & Kaufman, B. E. (1997). Interfirm wage differentials in a local labor market: The case of the fast-food industry. Journal of Labor Research, 18(3), 463-480. Retrieved from http://search.proquest.com/docview/214007093?accountid=45049 Zou, S. and Cavusgil, S. T. (2002). The GMS: A Broad Conceptualization of Global Marketing Strategy and its Effect on Firm Performance. The Journal of Marketing. 66 (4), pp. 40- 56. http://search.proquest.com/docview/214007093?accountid=45049 Read More