Jollibee - Case Study Analysis Join Allfreepapers.Com Category: Business Autor: Andrew 08 March 2011 Words: 4956 | Pages: 20 Executive Summary the Case Gives an Idea About How the Competition Influenced Jollibee's

Topics: Fast food, Philippines, Jollibee Pages: 13 (5299 words) Published: September 27, 2011
Jollibee - Case Study AnalysisJoin Category: Business Autor: andrew 08 March 2011 Words: 4956 | Pages: 20 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, was forced to change their strategy with the entry of McDonalds in Philippines, which later transformed the company into a global company .The company faced serious challenges with their international exposure. The challenges included the conflicts with franchisees/Joint venture and conflicts between divisions. Another issue that the company faced was the entry into Papa New Guinea, United States of America and expansion plans in Hong Kong. The company has to consider the financial instability it faces while considering their plans. In the analysis we have tried to cover the effectiveness of strategies adopted by Mr Tony Kitchner (Former International Division head). This case analysis report deals with, firstly the key management challenges faced by the company, followed by some supporting arguments. In the management issues, the report focuses into the conflicting areas or the need to establish a greater cooperation and coordination between the Domestic and International divisions. Then, the recommendations regarding what should the company do differently in each of its department like in Marketing, HR, Finance or Operations, to succeed in its plans of global expansion. Finally, the feasibility of the three decisions that the new management has taken is also discussed. We have also tried to analyse the dilemma faced by Mr. Tingzon regarding the opportunities of international expansions to Papa New Guinea, Hong Kong and USA. Jollibee Foods Corporation- International Expansion: Case Analysis a. Industry Analysis A fast food restaurant or Rapid Service Eatery (RSE) has the following 3 characteristics. 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. They insisted 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 are offered. In Glocal segment, products of global quality with local features (and local soul) at less than global prices are offered. In local segment, local products with local features at local prices are offered. B. TYPE OF GLOCALIZATION As objectives of glocalization can be product/service and business model, there are two types of glocalization.  Product/service glocalization  Business model glocalization. The following charts give an overview of strategies adopted by JFC...
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