Jollibee Foods Corporation
This report is an attempt to analyze the case of Jollibee Foods Corporation. In this study we have first analyzed the case background so that we understand the scheme of things. In this section we have laid emphasis on the inception of Jollibee Foods Corporation, their expansion in various countries like Singapore, Hong Kong, Brunei, Taiwan, Indonesia, California etc. Further we have discussed the Strength, Weaknesses, Opportunities and Threats to Jollibee Foods Corporation in the fast food industry. We have dealt with different problems like the management issues, the market issues, business expertise, financial resources, inventory management etc. This would help in better understanding of Jollibee’s present condition and future sustainability in the modern and fast changing business world. After the SWOT analysis we identified certain issues with Jollibee, which concerned the management and business. There were issues like improper utilization of financial resources, lack of promotional campaigns, communication gap between the different wings of Jollibee and between the management and the employees. Keeping in mind these issues we have come u with a few recommendations. We have discussed them through human resource, marketing, financial and operational perspective. At the end of the document we have attached appendix for the readers facilitation. It contains certain tables and graphs for better understanding of the financials of Jollibee.
* Company History
Jollibee Foods Corporation began as an ice cream parlor in the year 1975 and was run by the Chinese, Filipino Tan Family. But later they diversified into sandwiches when the 1977 oil crises occurred and President Tony Tan Caktiong expected the ice cream prices to soar. Hamburger recipe developed Tony’s chef father became famous and a year later they opened five stores Manila, where the family incorporated as the Jollibee Foods Corporation. TTC’s vision was to see that the employees enjoy while working and are efficient. Jollibee expanded quickly throughout Philippine financing all growth until 1993. Most of the operations of the business were run by the Tan family and for expert opinion they brought in outsiders especially in the marketing and the finance department.
Until 1981 it was a smooth sailing for Jollibee, but then came McDonalds in Philippine. But the group was fearless and had confidence in the spicy taste of their hamburger, which appealed to the Philippine customer. Slowly Jollibee forayed into the foreign markets and began with its investment in the Singapore in 1985 in 1988 with the help of some family friends. However, the relation between Jollibee and the local manager started to deteriorate. Their next venture was in Taiwan again with the help of family friends but this also did not last long and the transaction came to an end on the basis of distrust between the local manager and Jollibee in 1988. In 1994 the international division was created with Tony Kitchener, an Australian native as the vice President. Kitchener went about differentiating the international division from the Philippine part of Jollibee and tried to creat a more formal culture for the division. Kitchener’s strategy rested on two themes; one targeting extats to planting the flag. He realized that there are a lot of Fillipino extats in middle east, Hong Kong, Guam and other Asian territories and this would provide a good market for Jollibee. The other strategy was to have the first mover advantage, they started with planting the company’s flag in those countries where there was no or little competition. But these strategies had their own constraints. First of all there was strain on the resources as they were expanding rapidly and there was no enough advertizing budget. Kitchener was responsible for the franchise service manager and they acted as the point of contact between the company and its...
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