Jollibee Case Study
Jollibee and its Strategic control over its subsidiaries
International Business and Politics: 2012
Word count: 1583
Pages: 6
1. Introduction
Anil K. Gupta and Vijay Govindarajan argue in their article, “Knowledge flows and the structure of control within multinational corporations”, that mainly all previous research on strategic control within multinational companies (MNCs) has paid attention to why these choose to go abroad. They instead argue that for successful offshore business, one must understand how communication flows within the different sub-units of the organization. As Jollibee Foods Corporation considers whether they should establish a fourth store in Hong Kong, it faces several challenges. One of the main challenges regards knowledge transfer between its Filipino facilities and the newly established ones abroad. It is therefore relevant to look at the following research question:
What consequences does the current “strategic control over its subsidiaries” have on the knowledge transfer between the Jollibee headquarters on the Philippines and the offshore Jollibee Food plants in Hong Kong?
In answering the research question, we will start by explaining the framework of Gupta & Govindarajan’s (1991) on different kinds of subsidiaries, with attention paid to knowledge transfer and their related control instruments. Further we will examine what kind of challenges Jollibee Foods Corporation is facing with its expansion to Hong Kong. Finally, the above analysis will provide us with information about the existing opportunities on the Chinese market and will enable us to suggest a reconstruction of the offshore business in Hong Kong to make it more successful. Jollibee meets several tasks in their offshoring project, but due to space limitation there will in this paper only be focus on two selected challenges, the challenges of adjusting to Chinese taste and their management structure.
2. Jollibee Foods Construction and its
International Business and Politics: 2012
Word count: 1583
Pages: 6
1. Introduction
Anil K. Gupta and Vijay Govindarajan argue in their article, “Knowledge flows and the structure of control within multinational corporations”, that mainly all previous research on strategic control within multinational companies (MNCs) has paid attention to why these choose to go abroad. They instead argue that for successful offshore business, one must understand how communication flows within the different sub-units of the organization. As Jollibee Foods Corporation considers whether they should establish a fourth store in Hong Kong, it faces several challenges. One of the main challenges regards knowledge transfer between its Filipino facilities and the newly established ones abroad. It is therefore relevant to look at the following research question:
What consequences does the current “strategic control over its subsidiaries” have on the knowledge transfer between the Jollibee headquarters on the Philippines and the offshore Jollibee Food plants in Hong Kong?
In answering the research question, we will start by explaining the framework of Gupta & Govindarajan’s (1991) on different kinds of subsidiaries, with attention paid to knowledge transfer and their related control instruments. Further we will examine what kind of challenges Jollibee Foods Corporation is facing with its expansion to Hong Kong. Finally, the above analysis will provide us with information about the existing opportunities on the Chinese market and will enable us to suggest a reconstruction of the offshore business in Hong Kong to make it more successful. Jollibee meets several tasks in their offshoring project, but due to space limitation there will in this paper only be focus on two selected challenges, the challenges of adjusting to Chinese taste and their management structure.
2. Jollibee Foods Construction and its
Bibliography: Case: Bartlett, C. A. (2001). Jollibee Foods Corporation (A): International Expansion. Harvard Business School Gupta, A.K., Govindarajan, V. (1991). Knowledge flows and the structure of control within multinational corporations. Academy of Management, Review 16(4) 768-792 Gupta, A.K., Govindarajan, V. (2000). Knowledge flows within multinational corporations. Strategic Management Journal 21, pp. 473-496. letto-Gilles, G. (2005). “Hymer´s seminal work”, in Part III Modern Theories in Transnational Corporations and International Production. Academic Books, Copenhagen Business School. Published by Edward Elgar Publishing, Inc. Schlegelmilch, B., Ambos, B., Chini, T. (2003/4). Are you ready to learn from your offshore affiliates? European Business Forum, 16