Acknowledgement

We would like to express our gratitude to all those who gave us the
possibility to complete this assignment. We want to thank the
Department of Management Sciences for giving us permission to
commence this assignment in the first instance, to do the necessary
research work.
We are deeply indebted to our supervisor Mr. Shomail Sarwar from
COMSATS Institute of Information Technology Lahore, whose help,
stimulating suggestions and encouragement helped us in all the time
of research for and writing of this assignment.
And Hardee’s gave us information about this company & helped us
out to make the whole report.
Our group members, who looked closely at the final version of the
assignment for English style and grammar, correcting both and
offering suggestions for improvements,
Especially, we would like to give our special thanks to our family whose
patient love enabled us to complete this work.

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Table of Contents

HISTORY
......................................................................................................................................................................5
CKE RESTAURANTS FACTS ..............................................................................................................................5
HARDEE'S COMPETITORS ..................................................................................................................................6
......................................................................................................................................................................6
MONSTER THICKBURGER ..................................................................................................................................6
HARDEE'S FAST FACTS ....................................................................................................................................6
PRODUCT DEVELOPMENT STARATEGY..........................................................................................11
........................................................................................................................................................................12
CURRENTLY THE STRATEGIES WHICH HARDEE’S ADOPT INCLUDES;................................12
-PRODUCT DEVELOPMENT STRATEGY &..............................................................................................................12
-MARKET DEVELOPMENT STRATEGY..................................................................................................................12
PRODUCT DEVELOPMENT .................................................................................................................................12
........................................................................................................................................................................22
HOW BLUE IS YOUR STRATEGY?........................................................................................................22
........................................................................................................................................................................23
INSTRUCTIONS FOR CANVAS...............................................................................................................23
AS – IS STRATEGY CANVAS (COMPARISONS B/W ALL THREE COMPANIES).......................30

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History:

Hardee's is an American fast-food restaurant chain,

located primarily on the Eastern half of the United States in

Hardee’s was founded by Wilbur Hardee, who opened

his first restaurant in Greenville, North Carolina in 1960. In
1997, CKE Restaurants (owner of Carl’s Jr.) acquired Hardee’s.
As of 2006, Hardee’s operates 1993 restaurants in 31 US
states.

Five months later he had his first franchisee and over

the years his burger chain has spread to become a favorite
throughout the Midwestern and Southeastern United States.

When they launched after five months they made their

first franchise.
They were famous at that time for biscuits but in 2003
they introduse thick burger line. And it got good response
from people
Hardee's decided to pare down its menu and focus on
the hearty 1/3-, 1/2- and 2/3-pound Thickburger line. Made
with 100% beef, Thickburgers established Hardee's as a
leader in the quick-service industry in both quality and taste.

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 Today, Hardee's forges ahead with a taste for edgy,
memorable ads and delicious food-creating a fast-food
experience that can't be topped this side of the Mississippi.

A subsidiary of CKE Restaurants, Hardee's is a fast food chain

located primarily in the Eastern and Southeastern United States. Along
with its West Coast sibling, Carl's Jr., Hardee's is the fourth largest fast
food chain in the U.S.
Within the first decade Hardees grew to be nearly 200 locations,
with one located in Heidelberg, Germany. The famous Hardee's biscuits
were introduced in the '70s, with a cinnamon raisin version added
during the popularity of the singing California raisins in the '80s.
Hardee's was purchased by CKE Restaurants, Inc. in the 1990s.

CKE Restaurants Facts

Stock symbol: CKE
Annual sales (2007): $1.5 billion
Founder(s): Carl Karcher
Year Established: 1964
Industry: Restaurants
Phone: (805) 745-7500
Fax: (714) 490-3630
Toll Free: (877) 799-7827
HQ: Carpinteria, California
President: Andrew F. Puzder
CEO: Andrew F. Puzder
CFO: Theodore Abajian
Staff: 26,000
Other key people: Tom Lindlom
1,100 Carl's Jr. locations
1,900 Hardee's locations

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 Owned Rally's from 1996-1999
Owned Taco Bueno from 1996-2001

Hardee's and Carl's Jr. partnered with My Coke Rewards in May of 2010
to reward customers with double the prizes. The campaign launched
on May 24 at Hardee's locations across the nation. The rewards consist
of My Coke Rewards points and a peel-off coupon for redemption on
the next Hardee's or Carl's Jr. visit to receive a free item or a discount.
The purchase of a large fountain drink is necessary to receive the
special promotional cup with the peel-off coupon and the
points.http://www.hardees.com/company/releases/carls-jr-hardees-
partner-with-my-coke-rewards-to-make-everyone-a-winner/

Interesting Fact: The original cost of a Hardee’s hamburger was 15

cents

Hardee's Competitors
• McDonald's
• Wendy's
• Burger King
• White Castle
• Jack in the Box

Monster Thickburger
The release of the Monster Thickburger in 2003 created
waves in the media for its 1,410 calorie, 107 grams of fat
and 2,740 grams of sodium content. Nutritionists were
considered with the products potential to contribute to an
obesity epidemic in the U.S.

Hardee's Fast Facts

Parent: CKE Restaurants
Parent stock symbol: NYSE: CKR
Founder: Wilber Hardee

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Year Established: 1960
Industry: Fast Food
Phone: 800.711.4274
HQ: St. Louis, MO

Hamburger shape was orginally hexagonal like the

restaurant design

Few products from Business Portfolio

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8
Different products of Hardee’s are allocated in
different category on the basis of their market growth
and relative market shares.

Cash Cows: Beef Burger/ Monster thick burgers are the

products which makes business with high relative
share of low-growth markets. They are primarily
generators of profits& cash in a corporation. They
don’t require much additional investments. Its
market is stable & its share leadership position
usually means they enjoy economies of scale &
relatively high profit margins.

Stars: Chicken Burgers is a product falling in stars. A star

is a market leader in a high growth industry. Stars
are critical to the continued success of the firm. As
their industries mature, they move into the bottom-

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 left quadrant & become cash cows. But they are
critically

important. They often are net users rather than

suppliers of the cash in the short run.

Dogs: Beef Steaks is such type of product which currently

does not produce enough profit for company due to
decline in its demand by the change in customer
taste for it. Therefore, company continuously tries to
reduce its supply.

Question Marks: Ice creams & shakes are cash cows for the
corporation because they are primary generator of
profit and cash in the corporation due to largest sales
of these products. The corporation uses this cash to
support its question mark and star products.

Mission Statement
We will try to provide 100% customer satisfaction by giving them
high quality of healthy & tasty food. We want to be the world’s market
leader with the help of monster thick burger. We are on the way to
grow more & get at least 60% market share of fast food industry. We
believe that the success of business is hidden in the honesty, quality,
uniqueness & customer satisfaction. A positive dining experience
delivering by an outstanding team.

Objectives
• To achieve 10 billion dollars sales every year from all over the
world.
• To get 60% of market share of fast food industry.
• To provide 100% satisfaction to customers by providing good
quality with different taste of food & services.
• To satisfy internal customers we will provide wage rate more
than our competitors offering.
• To open franchises globally so that we can combat
unemployment of society.

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Strategy
*Market development strategy
We will expand our business by expanding it geographically.
We will also start providing chicken burger to satisfy chicken
lovers

PRODUCT DEVELOPMENT STARATEGY

Alternative corporate growth strategies are given below.
Hardee’s develop its strategies also from this chart

Market penetration Product development

-increase market share -Product improvement
-increase the quantity of sales -Product line extensions
-New product to current
customer

New market Diversification

development -Vertical Integration
-Extension of market for current Forward integration
product (geographically , Backward integration
new target customer) -Horizontal integration
-Diversification to related
product
-diversification to unrelated
product

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 Currently the strategies which Hardee’s
adopt includes;
-Product development strategy &
-Market Development strategy
Reasons are given below;

Product development
Hardee’s is trying to improve the quality of its products for
increasing their current customer satisfaction and to retain them
by using modern technology and increase their product line by
provide different taste with quality to get maximum market
share. In this way the sales of company increase which increase
their profit and ultimately the earning of share holder.

Market Development
Right now there are only two franchises of Hardee’s in
Pakistan. Both are in Lahore. One is on M.M.Alam Road & other is
on Thokar Niaz Baig. So Hardee’s is trying to open more
franchises to expand its market. And get more market share.

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Miles & snow Business Strategies

There are four business strategies according to them.

 Prospector
 Analyzer
 Defender
 Reactor

Prospector:
 Operates within a broad product market domain that
undergoes periodic redefinition.
 Values being a first mover in new product & market areas
even if not all of these efforts prove to be highly profitable.
 Respond rapidly to early signals concerning areas of
opportunities, & these responses often lead to new rounds of
competitive actions.
 Competes primarily by stimulating & meeting new market
opportunities but may not maintain strength over market in
all market enters.

Defenders:
 Attempts to locate & maintain a secure position in relatively
stable product & service area.
 Offers relatively limited range of product & services compared
with competitors.
 Tries to protect its domain by offering lower prices, higher
quality or better services than competitors.
 Tends to ignore industry changes, technological, new product
development.
 Not directly related to its area of operation.

Analyzers:

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  Makes fewer & slower product market changes than
prospectors but is less committees to stability & efficiency.
 Attempts to maintain a stable limited line of products or
services.
 Seldom had a first mover but often a second or third entrant
in product markets related to its existing market often with a
lower cost or higher quality product or service.

Reactors:
 Lacks any well defined competitive strategy
 Does not have a consistent product market orientation than
competitors
 Not willing to assume the risk of new product development
than its competitors.

Prospector
Units’ primarily concerned with attaining growth through
aggressive pursuit of new product market opportunities.

Differentiated Analyzer
Units being strong core business actively seeking to expand into
related product market with differentiated offerings.

Low Cost Analyzer

Units being strong core business actively seeking to expand into
related product market with low cost.

Differentiated Defenders
Units primarily concerned with maintaining a differentiated position
in mature markets.

Low Cost Defenders

Units primarily concerned with maintaining a low cost leadership in
mature market.

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 Reactors
Units with no clearly defined product market development or
competitive strategies.

Prospector Analyzer Defender Reactor

KFC
(High Quality, Hardee’s
Differentia
High Price, No (High Price,
ted
Competitive High Quality) AFC, Fri-
Action) Chicks
Mc.
(No
Donald’s
Technologi
(Broad
cal
Product
Advancem
line/Marketi
ent, No
ng)
Low Cost competitiv
Leadershi e action)
p

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 Hardee’s
It lies in Differentiated Defender Because,
 It primarily concerned with maintaining a differentiated
position in mature markets.
 Attempts to locate & maintaining a secure position in relative
stable product & service area.
 Initially it is offering relatively limited range of quality burgers &
services compared with competitors.
 They are trying to protect there domain by offering lower higher
quality food with different taste & better services than
competitors.
 Tends to ignore industry changes, technological, new products
development

Red Ocean & Blue Ocean Strategy

-Rite now Hardee’s is working under Red ocean Strategy

-Where there are a large number of competitors
-Every one wants to increase market share.

Under red ocean strategy Hardee’s having two main

competitors that are Mc. Donald’s & Burger king. They both
are larger fast food selling companies, competing with
Hardee’s with different factors. Under As-Is strategy the
comparison of Hardee’s with its competitors is as follows:

-As-Is Strategy Canvas

Key Buyer Group Youth

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Competing Factors You Comp-1
Comp-2
(Hardee’s) (McDonalds)
(Burger King)
Price high low high
Taste high high low
Services high medium medium
Technology medium high
medium
Quality high high high
Environment high medium low
Nutrient value high low medium
Product line low high low
Geographical area low high low

As-Is Strategy Curve of Hardee’s

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18
As-Is Strategy Curve of McDonalds

As-Is Strategy Curve of Burger King

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20
As-Is Strategy Curve (comparison between all three
competitors)

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BLUE OCEAN STRATEGY

(Make competitors irrelevant)

- Go where profits & growth are & the completion
isn’t.

HOW BLUE IS YOUR STRATEGY?

 Exceptionally high value at drastically low cost.

 Creating new demand instead of striving to do better than

competitors.

 Looking for non-customers and reconstructing industry and

market boundaries.

 Challenging assumptions and reconstructing industry and market

boundaries.

 Pursuing de-segmentation instead of finer segmentation.

 Focused on widely shared needs instead of differentiating needs.

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  Voluntarily participated self-initiated teams.

 Executing strategies while conserving time and resources.

Instructions for Canvas

1. Identify the dominant customer groups your industry focus on.

Label this on your Strategy Canvas.

2. Identify the key competitive factors your industry competes on to

capture his dominant customer group. There should be not less
than five and no more than 12. Price is always included in your
key competitive factors.

3. Rate the relative offering of each factors and vertical axis. Price
is always an absolute figure; a higher price should be plotted
high, while a low price should be plotted low.

4. Connects the dots to create your “AS-IS” value curve.

5. Repeat process for your best competitor.

A NEW VALUE CURVE (under Blue Ocean Strategy)

There are four things in new value curve

These are
 Reduce
 Create
 Raise
 Eliminate

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Reduce
In this we reduce the thing which can be reduced to lower the
cost and increase the sales of the company
So in case of Hardee’s we are reducing our price level. Because price
level is too high right now which is not at all economical & average
people can’t afford it. And because of this people prefer to go to
McDonalds.

Create
In this we create factor that industry has never offered. So we
are going to open franchises in different universities cafeteria’s of
Lahore. Which are going to be Wifi. We are not going to offer thick beef
burgers in university cafeterias. We will offer students meal which
includes thin beef burger and cold drinks.

Raise
We are going to provide kids meal with special toy gifts for kids.
We are going to launch flavored buns that no one had offered yet.

Eliminate
As in case of Hardee’s we are providing full calories burgers. But
we know that mostly people of our country are not that much
conscious about this thing so we are going to eliminate Nutrition Level.

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25
Reduce Create

Price level Franchises in different

From higher to medium universities cafeteria’s
Of Lahore
Raise Eliminate

Kids meal with toy gifts Nutrition level (high to

Flavored burger buns low)

New Value Curve Table (Under Blue Ocean Strategy)

Competing Factors You Industry

(Hardee’s) (McDonalds/ Burger king)
Price medium medium
Taste high medium
Services high medium
Technology medium b/w high & medium
Quality high high
Environment high b/w medium & low

Nutrient value low b/w low & medium

Product line medium medium
Geographical area high medium
Franchises Uni Cafes medium low

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A New Value Curve Of Hardee’s

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A New Value Industry Curve

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A New Value Curve of Hardee’s with Industry Curve

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Visual awakening;

• Compare as-is strategy canvas with competitors

• Where strategy needs to change

AS – IS STRATEGY CANVAS (COMPARISONS B/W ALL THREE COMPANIES)

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Visual exploration

A- RECONSTRUCT MARKET BOUDARIES

The first principle of blue ocean strategy is to reconstruct market

boundaries to break from the competition and create Blue Ocean. We
found six basic approaches to remaking market boundaries we call this
the six paths frame work which are given bellow

• Define their industry similarly and focus on the best within it.

• Look at their industry through the lens of generally accepted

strategic group (such as luxury automobiles, economy cars and
family vehicles) and strive to stand out in the strategic group
they play in.

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 • Focus on the same buyer group, be it the purchaser (as in the
office equipment industry ), the user (as in the clothing industry
), or the influencer (as in the pharmaceutical industry)

• Define the scope of the products and services offered by their

industry similarly

• Accept their industry’s functional or emotional orientation Focus

on the same point in time –and often on current competitive
threats-in formulating strategy.

We choose two Paths to reconstruct Hardee’s restaurant industry that

is given below.

1-Look across alternative industries

Recently Hardee’s is competing in restaurant industry. But now
we are looking across the industry. We are going to open a cinema
with our Hardee’s franchise. That will give us a competitive advantage
in the industry.

2-Functional and emotional appeal

Most of the restaurants are using functional appeals. Hardee’s

was also using functional appeal but now we have decided that we will
go with emotional appeal. We will say to people we are the only
restaurant in Pakistan who is providing Nutrient value of the meal so
that you can maintain your fitness.

Customer Survey

Competing Factors High Medium

Low

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Price 35% 40% 25%
Taste 70% 20% 10%
Services 55% 35% 10%
Technology 30% 50% 20%
Quality 70% 30%
-
Environment 75% 25%
-
Nutrient value 40% 55%
5%
Product line 35% 30% 35%
Uni Franchises 55% 15%
30%

Competing Factors Analysis

Price Medium
Taste High
Services High
Technology Medium
Quality High
Environment High
Nutrient value Medium
Product line Medium
Uni Franchises High

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New ERRC Grid after Survey

-After Survey
Reduce Create

Price level Franchises in different universities

From higher to medium cafeteria’s
Of Lahore

Raise Eliminate

Kids meal with toy gifts

Flavored burger buns ---

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-Before Survey

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Visual Communication

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 First we set the strategies than we communicate it to every
employee, so that they can understand it. EFS distribute a one page
picture that shows both strategies new and old. That shows the current
position of the company and the future position of company. Then
senior managers participate in developing new strategies. And they
explain what we need to eliminate, reduce, raise & create to get the
blue ocean & because of this employees can become motivated. The
new picture can become a reference point for all investment decisions.

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