Philippines and International Division

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Building an organization
In 1933, TTC selected Tony Kitchner to start international operations. He asked for the resources and autonomy to create an International Division. 1. The new division needed to be separate from Jollibee’s Philippine side, with a different identity and capabilities. 2. He agreed with TTC that attracting partners with good connections in their markets should be a priority. 3. To project an image of a world-class company and make it to look and act like a multinational, not like a local chain. 4. Kitchner began recruiting experienced internationalists from inside and outside Jollibee. Adding external professionals for marketing, finance, quality control, and product development helped keep innovative ideas churning. Strategic Thrust

Tony Kitchner has a definite objective that increase the pace of international expansion with the objective of making Jollibee one of the world’s top ten fast food brands by 2000. Two main themes formulated:

1. Targeting expats: the hundreds of thousands of expatriate Filipinos working in the Middle East, Hong Kong, Guam, and other Asian territories as a latent market for Jollibee and as a good initial base to support entry. But after opening stores, he found that this market was limited. 2. Planting the flag: the expectation was that by expanding the number of stores, the franchise could build brand awareness which in turn would positively impact sales. The problem is only after achieving a certain level of sales could most franchisees afford the advertising and promotion. The other challenge was that rapid expansion led to resource constraints. I think he entered new markets without proper market. Operational management

Market entry: Kitvhner handed responsibility for the opening to one of the division’s Franchise Services Managers(FSM). One responsibility in which a franchisee was deeply involved was the key first store. A design manager in the International Division provided support....
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