International Expansion Once architectural and engineering plans were approved, construction began. Brought about by oil crisis which doubled the price of ice cream, JFC diversified into hamburgers in the year And while Gina Buan, the FSM, had visited Hong Kong more often than any other markets she supervised including for an extraordinary month-long stay , she had been unable to resolve the management problems. Because most of his management team was more interested in the fast-growing domestic side of the business, in January , he decided to hire an experienced outsider as Vice President for International Operations. But the International Division expanded beyond the Jollimeal concept. The case describes Jollibee’s six-year international expansion history and the lessons the company has learned.
My account New to us? International Expansion to the franchisee, division support staff often bore much of the responsibility long after startup. Food and Beverage Industry ;. Jollibee will continue to find ways to improve the quality of food and service it provides in order to enhance customer satisfaction and to do better than the competitors. International Expansion However, the domestic side viewed things differently. Yet even an excellent location could not make a store viable in the absence of good operations management, the critical ingredient in reducing waste, ensuring quality service and increasing staff productivity. Jollibee Foods Corporation A and B.
Bartlett Supplements the A case. California ; Asia ; Philippines ; Hong Kong.
Negative implication will be retained instead of the good ones. We preferred to go slower, making sure that each store was profitable so that it would generate money for the franchisee, as well as for us. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management.
Jollibee Foods Corporation (A): International Expansion
As a compromise, International expansionn a spicy sauce that customers could add to the standard Jollibee chicken. Jolllbee international people also seemed to develop a superiority complex. Locations with Jollibee outlets are underlined.
On the other side of the Pacific, a possible store opening in the Kowloon district of Hong Kong raised other issues for Tingzon. For example, rather than preparing new advertising materials for each new promotion as they did in the Philippines, the international marketing group created a library of promotional photographs of each food product that could be assembled, in-house, into collages illustrating new intsrnational e. The site will provide the best opportunity for Jollibee to gain visibility and branch recognition among Hongkong locals since the store will corporatin in the heart of the city where traffic is high.
Strained International-Domestic Relations As the International Division expanded, its relations with the Philippine-based operations seemed to deteriorate. As a result, International received little cooperation from the larger Philippine research and development staff and customization remained a source of disagreement and friction.
The case describes Jollibee’s six-year international expansion history and the lessons the company has learned. For example, Visco argued that establishing a presence in each market before competitors conferred important first-mover advantages in setting customer expectations, influencing tastes and building brand.
Joollibee account New to us? International also redesigned the Jollibee logo. International Expansion Once architectural and engineering plans were approved, construction began.
(DOC) JOLLIBEE FOODS CORPORATION: INTERNATIONAL EXPANSION A CASE STUDY | nes san –
And was the Filipino-to-Asian-to-Hispanic-tomainstream entry strategy viable or did it risk boxing them into an economically unviable niche? They wanted to do everything differently, so that if their stores did well, they could take all the credit.
Operational Management Market entry Once Jollibee had decided to enter a new market, Tony Kitchner negotiated the franchise agreement, often with an investment by the parent company, to create a partnership with the franchisee. The expectation was that by expanding the number of stores, the franchise could build brand awareness which in turn would positively impact sales.
After initially targeting Filipinos, the plan was to branch out geographically to the San Francisco and San Diego regions, and demographically to appeal to other Asian-American and, eventually, Hispanic-American consumers. Bartlett and Jamie O’Connell. Although two more stores in Central had attracted many Filipinos, they both relied extensively on Chinese customers and generated sales of only about one-third of the first outlet.
Soon after the first store opened, however, relations between Jollibee and the local manager began to deteriorate. International Expansion However, the domestic side viewed things differently.
Knowing from a successful associate would trigger curiosity among elites on the kind of business the Tan Family are up to. About the Author Christopher A.
Product details Share this page: The case concludes as JMB contemplates taking his successful, sophisticated model to the United States. It is not easy to deliver quality food and service consistently and efficiently. Many franchisees were also members or friends of the Tan family. International Expansion by Christopher A.
The two parts of Jollibee continued to operate largely independently, but strained relations gradually eroded any sense of cooperation and reduced already limited exchanges to a minimum.
Click here to sign up. Because most of his management team was more interested in the jollibeee domestic side of the business, in Januaryhe decided to hire an experienced outsider as Vice President for International Operations.