Executive Summary The case gives an idea about how the competition influenced Jollibee's strategy, both domestic and international. Jollibee ,which was a Filipino chain of restaurants, wasforced to change their strategy with the entry of McDonalds in Philippines, whichlater transformed the company into a global company .The company faced seriouschallenges with their international exposure. The challenges included the conflictswith franchisees/Joint venture and conflicts between divisions. Another issue that thecompany faced was the entry into Papa New Guinea, United States of America andexpansion plans in Hong Kong. The company has to consider the financial instabilityit faces while considering their plans. In the analysis we have tried to cover theeffectiveness of strategies adopted by Mr Tony Kitchner (Former InternationalDivision head).This case analysis report deals with, firstly the key management challenges faced bythe company, followed by some supporting arguments. In the management issues, thereport focuses into the conflicting areas or the need to establish a greater cooperationand coordination between the Domestic and International divisions.Then, the recommendations regarding what should the company do differently in eachof its department like in Marketing, HR, Finance or Operations, to succeed in its plansof global expansion. Finally, the feasibility of the three decisions that the newmanagement has taken is also discussed.We have also tried to analyse the dilemma faced by Mr. Tingzon regarding theopportunities of international expansions to Papa New Guinea, Hong Kong and USA.Jollibee Foods Corporation- International Expansion: Case Analysisa. Industry Analysis A fast food restaurant or Rapid Service Eatery (RSE) has the following 3characteristics.
1. It is characterized by its fast food cuisine and nominal table service. 2. It offers limited menu, cooked in bulk in advance, kept hot, finished, packaged to order, and available to take-out, drive-thru, and dine-in. 3. It is usually a part of a chain or franchise operation, which supplies standardized ingredients and/or partially prepared foods and provisions to each restaurant through controlled supply channels. McDonald's is one of the most famous RSE in the world. McDonald's became No.1 in every country of more than 100 countries in the world except Philippines where JFC has been overwhelming strength against McDonald's. JFC was founded by Chinese-Filipino Mr. Tony Tan Caktiong (TTC) as the ice-cream parlor at Cubao City in 1975. Gradually, it grew up to a reasonably large fast food chain in Philippines. Further, JFC started scouting avenues for expansion internationally. Thus it opened its franchises in countries like U.S.A., Brunei, Hong Kong, Guam, Middle East, etc. Assuming, Mc Donald's was the chief competitor of JFC in Philippines we have made an analysis of the strategies adopted by both the organizations. In order to analyze the strategy, we have utilized the following two tools. a) Four-Tier Structure of Market
b) Type of Glocalization
A. FOUR-TIER STRUCTURE OF MARKET Khanna Palepu (2006) introduced the Four-Tiered Structure of Market. Theyinsisted that most product markets comprise four distinct tires: global, glocal, local,and regional.In Global segment, products of global quality with global features at global prices areoffered. In Glocal segment, products of global quality with local features (and localsoul) at less than global prices are offered. In local segment, local products with localfeatures at local prices are offered.B. TYPE OF GLOCALIZATIONAs objectives of glocalization can be product/service and business model, there aretwo types of glocalization.
Business model glocalization.The following charts give an overview of strategies adopted by JFC and Mc Donald's.a. Porter's competitive strategies Model. Type of Globalization (Products/Services vs. Business Model)b. Firm Analysis SWOT ANALYSIS OF...