Firm Analysis
- Company name: Shake Shack
- The shake shack’s primary industry is NAIC code 722110 (Full service restaurants) and its secondary industry is NAIC code 722410 ( Drinking places specifically Alcoholic Beverages) it operates as a fast casual restaurant serving hamburgers, hot dogs, crinkle-cut fries, shakes, frozen custard, beer, and wine. The company is know for using 100% pure all natural high-quality Angus beef in their New York-style hamburgers. Their domestic menu include a range of items, including the ShackBurger®, SmokeShack®, Shack-cago Dog®, 'Shroom Burger™, seasonal frozen custard, hand-spun shakes, concretes, ShackMeister® Ale and Shack Red™ and Shack White™ wines( )
- The company headquarter is located in New York City, New York, United States.
- Shake Shack operates and licenses restaurants in the global restaurant industry. As of today the company owns and operates in 10 states and the District of Columbia. Moreover, the company has 31 company-operated Shacks in operation in the United States in conjunction with license arrangements with affiliated and unaffiliated operators to develop and operate Shacks. As well as 32 licensed Shacks under license agreements in North America, Europe and Asia. To see a list of the company's subsidiaries and financial information see attached excel sheet.
- Shake Shack are a very sustainable company. They use 100% all-natural angus beef, vegetarian fed, humanely raised and source verified. Shake Shack recycles all bottles and plastics. They make sure zero recyclable materials end up in landfills. Furthermore, every Shake Shack store is constructed from recycled materials. They have made table tops reclaimed from bowling lanes, walls made of reclaimed antique barn wood siding as well as using energy efficient kitchen equipment.
Host Country Analysis
- We believe Bahrain, New Zealand, and South Korea are all countries that will be suitable for the Shake Shacks foreign expansion.
Bahrain | New Zealand | South Korea | |
Economic | -Most diversified economy in the (GCC). -Most liberalized economy in the (GCC). -Bahrain has the fastest growing economy in the Arab world. -#65 in the World Bank’s 2016 Ease of doing Buisness report ( Index of Economic Freedom,2016) http://www.doingbusiness.org/data/exploreeconomies/bahrain/ ). | (1)New zealand’s Ministry of Foreign Affairs and Trade (MFAT) (2) Overseas Investment Office (OIO). New Zealand has a open-market policy. The World Bank ranked it 2nd in 2016 Ease of doing business report (.http://www.doingbusiness.org/data/exploreeconomies/new-zealand/ ). | In South Korea education is strongly encouraged ( literacy rate 98% ). There has been tremendous improvement in their economic success and freedom. The World Bank ranked it 2nd in 2016 Ease of doing business report ( http://www.doingbusiness.org/data/exploreeconomies/korea ). |
Political | Government:Unitary Parliamentary constitutional monarchy. Bribery and Corruption: In Bahrain bribery is illegal and according to the Transparency international's Corruption Perception Index Bahrain ranked 50th of 168 countries in 2016( http://www.transparency.org/country#BHR ). | Parliamentary democracy. The government minimizes screening in order to promote foreign direct investment and has offices that specifically handle foreign trade and oversea investments. Government Influence on Business: Bribery and Corruption:There is very low levels for corruption. Bribery is illegal Transparency international's Corruption Perception Index ranked 6th of 168 countries in 2016.(http://www.transparency.org/country/#NZL) | Government:Korean government operates as a democratic republic. The government has strong influence over business dealings. However, bribery and influence peddling persist in politics, business. Large family-run conglomerates known as chaebols enjoy outsized influence and continue to dominate the economy.Transparency international's Corruption Perception Index ranked 37th of 168 countries in 2016( http://www.transparency.org/country/#KOR ) Government Influence on Business: Government aims to transform the country into one of the top 10 business friendly economies in the world. It’s keen to encourage foreign investors and has been making efforts to ease excessive regulations and provide incentives for FDI.
|
Legal | Property Rights: According to the Property rights index Bahrain ranks 60 and a 100 point scale. Intellectual Property: According to World Data Atlas International property rights index Bahrain scored a 5.8 out of 9 in 2015 representing a -10.77% change from 2013 ( http://knoema.com/atlas/Bahrain/International-Property-Rights-Index ) . Moreover, the free trade agreement between the U.S and Bahrain (FTA) helps protect property rights. According to export.gov the agreement provides strict penalties for piracy and counterfeiting by requiring each goverment to criminalize end-user piracy. Export.gov goes on to state that in addition to tough penalities each goerment commits to having and maintaining authority to seize, forfeit, and destroy counterfiet and priated goods and the equipment used to produce them. Furthermore, FTA mandates both statutory and actual damages under Bahraini law for IPR violations ( http://help.export.gov/link/portal/28023/28026/Article/94/How-does-U-S-Bahrain-Free-Trade-Agreemen-FTA-protect-intellectual-property-rights ). | New zealand is known for its transparency and lack of corruption in terms of procurement and contracts within foreign companies. The Transparency International ranks it rule of law in the 98% percentile. Intellectual Property: New zealand is apart of many intellectual property treaties and conventions including the paris convention, the Berne Convention, and the TRIPS Agreement. It scored an 8.2 on the International property index in 2015 ( http://knoema.com/atlas/New-Zealand/International-Property-Rights-Index ) | Despite the minor corruption the rule of law is effective, the judicial system is independent and efficient, and private property rights are protected.The Transparency International ranks it rule of law in the 81% percentile. Property Rights: South Korea is ranked 70 on the Property Rights Index ( http://www.globalpropertyguide.com/Asia/South-Korea/property-rights-index ) In addition South Korea is apart of the Paris Convention, Berne Convention, The Madrid Protocol and The Patent Cooperation Treaty ( https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/456362/IP_rights_in_Korea.pdf ) Intellectual Property: South Korea is apart of the WTO which requires its member nations to establish intellectual property (IP) laws whose effect is in line with minimum standards . ( https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/456362/IP_rights_in_Korea.pdf ) |
Cultural | Business Customs: English is widely spoken and it is common for local businessmen to be educated in the UK or US so there is general knowledge of western business customs. Moreover, Bahrain is a Muslim country and prayer is essential. It’s not uncommon for Muslim businessman to pray during business arrangements. According to export.gov Personal relationship are highly valued in Bahrain. Frequent personal contact is the key to doing business. As a result it is important to spend a lot of time socialising and getting to know counterparts.Bahrain's do not put a major emphasis on time. However, politeness is highly valued therefore it's important to arrive on time to meetings. Moreover, it's important for visitors to build a flexible schedule because some appointments may not be scheduled until the visitor is already in Bahrain. Lastly, blunt statements should be recast into constructive, balance terms. ( http://apps.export.gov/article?id=Bahrain-business-customs ) | Multi-cultural nation. Strong national identity. Businessman should avoid making comparison with Australians. There may be hesitation to adapt quickly to American brands. However, New Zealanders have a high strong interest in foreign culture. Social egalitarianism and democratic free enterprise. Moreover, New zealand's tend to have a more individualist and optimistic outlook and In the realm of business and the workplace, this means that New Zealanders tend to have a high degree of self-motivation as well as confidence in their abilities and what they can achieve. ( https://learning.aperianglobal.com/web/globesmart/locale/topic.cfm?topicid=586739133A2E28EDD1311CE34B98C1FB ) | Koreans are values are influenced by a variety of religious traditions ( i,e Buddhism, Taoism, Christianity. Confucianism). Ideas from confucianism has established a strong influence on business culture. Koreans are hierarchy and status oriented. South Koreans place high value of hospitality and respect for foreigners. Gift giving in permitted. Korean place a high on collectivism vs individualism ( https://learning.aperianglobal.com/web/globesmart/locale/topic.cfm?topicid=932DB95BDAE821D6924A5D5C21DCD1D9 ). |
Ethical | Human rights:Bahrain’s Labor Law for the Private Sector No36 is similar to international standards and is aligned to the domestic laws of other Arab countries and international labour treaties and conventions. This law is responsible for providing workers with an more rights, including: recognition of women’s rights; anti-discrimination rules; and a framework for the resolution of labour disputes. The law covers every person who is legally employed. No one is allowed to work more 8 hours in a day, unless by mutual agreement, or more than 48 hours in a week ( http://www.mondaq.com/x/196372/employee+rights+labour+relations/Bahrain+Introduces+New+Labour+Law ) | Strong environmental sanctions in place. New zealand has strong social norms and values along with a strong social justice and high value. New Zealand is one of the least corrupt countries in the world, according to Transparency International's Corruption Perceptions Index. Human Rights: | The labor market remains dynamic, but there are lingering regulatory rigidities and powerful trade unions add to the cost of conducting business. |