In 1987, Jollibee follows has a quite centralized structure. (2017, Jan 11). The case highlights the global expansion strategy that they followed backfired due to which they had to consider revamping their strategies. Jollibee offered American style fast food that was prepared according to Filipino taste. * Its skills in site selection because of its excessive familiarity with the place. * Highly motivated people in the organisation, they were all ready to take up the risk. Kitchner realized the mistake and immediately sorted to rectify it. They provide FSC excellence in every moment Jollibee Food Corporation is a Filipino fast food brand that opened in 1975 and has been on the path of expansion since then. * Smooth supply chain management system should be put in place to increase efficiency and productivity. After this success, Lumba next reformed the name Jolibe to Jolly Bee and made the two words form a single name Jollibee. Yes, Jollibee's history demonstrates that it's strategy has expanded its size to open thousands of new locations in the past years. They will lead in product sales all time * Langhap-Sarap awarded most effective ad campaign in the food category during the 9th Philippine Advertising Congress. Executive Summary: They realized the failure of their joint ventures was due to the lack of support from the parent company. Jollibee Foods Corporation, doing business as Jollibee, develops, operates, and franchises quick service restaurants. We have drawn this inference from the case which mentions that what Jollibee wanted previously following international strategy as they thought they can sell Filipino cuisine in all parts of the world targeting the expatriates. * Jollibee sales hit the P3.365 billion. But instead he borrowed money from his father amounting to Php 200,000 and opened two Magnolia ice cream parlors named Cubao Ice Cream House. This home-style Philippine recipe appeals to the customers and make Jollibee expand quickly throughout the Philippines. The firm puts the customers as the base of all their operations. We use cookies to give you the best experience possible. The mission statement of “we bring great taste and happiness to everyone” showcases its brand as quality based and high in consumer utility. * Hiring non Philippines managers to get the sense of local adaptation. Jollibee Food Corporation is a Filipino fast food brand that opened in 1975 and has been on the path of expansion since then. A dominant market leader in the Philippines, Jollibee enjoys the lion’s share of the local market that is more than all the other multinational fastfood brands in PH combined. Chickenjoy, Jollibee Spaghetti and Yam Burger. Tony Tan Caktiong’s Jollibee has been one of the most admired, most copied, most innovative and most professionally-run company here in the Philippines. We have through this case analysis provided a complete picture of the Jollibee operations along with the strategies and the way ahead. The first section is the background to Jollibee and its international operations. THE PHILIPPINES Type: The company has also embarked on an aggressive international expansion plan, with more than 270 international branches in … Their aim to become the most dominant, quality oriented, quick service restaurant, the most endearing brand that has ever been. More Details. Its name is inspired by the president’s vision of … To achieve this, they should set up R&D divisions in each country and come up with new dishes to cater to local consumers like McDonald’s which came up with vegetarian burgers for India and which was a big hit. MarketingPlan Page 4 Market Situation In 2014 Jollibee went back to the basics and put in a significant effort and investments behind its flagship products. It had 1200 stores out of which 1079 were in their home country and a large number in China because of...... ...DR. Bievenido M. Flores * Company depends on the consumers for its profitable business and the company needs to adhere to the consumer’s tastes, preferences and prices as there are many competitors to whom they may shift to. * Inability to transfer its success factors in Philippines to other countries. Assume you have actually been selected as a marketing consultant for Jollibee. He appointed Franchise Service Manager’s (FSM) who were the point of contact between the Jollibee and their international partners. As the story goes, Tony and his colleagues went on a visit to a Magnolia Ice Cream plant in 1975 and learned that it was offering franchise. * Its core competency should be “authentic Filipino fast food with good service and quality” * The menu of Jollibee should have a mix of standard food items as well as items specific to a host nation. Their work at Guam gave them an idea of how to work in America. As the country's leading fast food chain, Jollibee has grown exponentially on all aspects on operation. But after sometime, they decided on getting the services of a management consultant in the person of Manuel C. Lumba. The reason Jollibee was successful in the Philippines was due to the following reasons: * Catering to the local needs by supplying hamburgers that were spicy. Executive Summary 4 // Jollibee. Issues Faced. Establishing Jollibee in 1978 proved to be beneficial for Caktiong as McDonald’s, a US-based fast food company, wasn’t in the country yet at that time. From a handful of stores 32 years ago, Jollibee now boasts of more than 600 stores and over 50 international stores. * JOLLIBEE bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain...... ...Tony Tan Caktiong is the founder, CEO and Chairman of the 2nd largest fast-food chain in the Philippines (next to McDonald's), Jollibee. * Localized training approach should be used to make employees outside Philippine as part of the organization. When customers began to ask for more than just ice cream, the two decided to add sandwiches to their menu. * The commendable operational efficiency it practiced in Philippines that require keeping close tab on operations. The company president is Tony Tan Caktiong (better known as TTC). And even then the consistency in the food quality is one of the major areas of concerns. Having a wide market all over Asia, the growth of Jollibee is not large enough and mostly its growth in China is due to their purchase of Yonghe King Chain. 1981 marked the year when McDonald’s set foot in the Philippine soils and started creating branches. Course Outline There will be 3 form of assessment to be used for this subject. Three years later, in 1978, he decided to capitalize on this development, discontinued the Magnolia franchise and converted his parlors into fast food outlets. * Big giants like Mc Donald’s and KFC in the foreign markets. As a result all of the managers report to Tan directly, including the international division. Then Lumba next created the product name "Yumburger" for their hamburgers as well as the name "Chickenjoy" for their—ah you what it is.Because of the fame of the Jollibee Food Corporation, they have decided on incorporating some expansions and acquisitions. also offered here. We give our viewpoints as to which markets would be feasible for entry and on what scale. Scenario analysis focuses more on the possible opportunities that will satisfy a client’s requirement. Tony Kitchner bought about localization in their offering thereby forcing them to follow Multi Domestic (localization) strategy but the case mentions they were over-shadowed by local competitors who were providing food for lesser cost and better local adaptation. What started as an ice cream parlor had spawned into a national brand that even the likes of McDonalds cannot top. Executive summary Jollibee Food Corporation is the epitome of entrepreneurial success in the Philippines. He started his plan with targeting the expatriate Filipinos in the Middle East, Hong Kong, and Guam etc. They started with local adaptation as a part of which they introduced a rice dish in which the gravy changed according to what the people wanted like in those countries like in Hong Kong they served their dish with hot and sour chicken while in Vietnam it was served with chicken curry. In 2010, Forbes listed Tan Cakationg as the sixth richest Filipino with a net worth of USD 980 million. In 1975 Tony Tan and his family opened a Magnolia Ice Cream parlor in Cubao – History of Jollibee Sometime in 1978, Tony Tan and his brothers and sisters engaged the services of a management consultant, Manuel C. Lumba. Jollibee wins the Anvil Award for outstanding PR campaign in relation to the achievement of marketing objective with its Filipino Talents campaign. * Jollibee managed to serve their customers at affordable price, good service and the hence gained a brand name eventually, so the threat of a new substitute is low , again because of the ability or nature of consumers to shift to other brand easily is low. Your Answer is very helpful for Us Thank you a lot! As the country's leading fast food chain, Jollibee has grown exponentially on all aspects on operation. On 2000, the Jollibee Food Corporation...... ...Jollibee Foods Corporation Thus, we can see that Jollibee is always progress until now. Explain. This smooth transition can be enabled by inter unit cooperation, decentralizing the organizational structure and following a geocentric approach. Over 25 years after Mr. Tan declined to become a franchisee of...... ...History of Jollibee Jollibee is a phenomenal success story: when beganTony Tan Caktiong and his family opened a Magnolia Ice Cream parlor from Bankerohan, Davao City to Cubao in 1975 with Jolibee as the original name. The Philippines was “discovered” by Ferdinand Magellan...... ...How was Jollibee able to build its dominant position in the fast food in the Philippines? The key to achieve economies of scale is selecting the right location to attract traffic and a highly efficient operation management. From its core business, a McDonald's-like restaurant, Jollibee has expanded into a pizza chain, fast food Chinese restaurants, bakeries, breakfast bars, and a tea house. Each individual is facing many challenges or problems at different points of his/her life. Type: EXECUTIVE SUMMARY. * Breakfast Joys are introduced. In the fast food industry the product offering are almost the same. In order to compete on the level with multinationals, rather than just being a first mover, Jollibee would have to take its performance to the next step and prove that it could continue to build its competitive advantage. In the family, he was third of seven siblings and their life story was a story of a family from China who migrated to look for a better life in the Philippines. Grace and Tony Tan Caktiong put up an ice cream parlor two months after graduating from college. * Once the company starts to follow transnational strategy, location economies and operational efficiency should be taken into consideration so as to reap the benefits of both cost structure and differentiation. The Jollibee brand successfully incorporated into its line-up the Sweet & Sour Meatballs, Grilled Pork Tenders, Jollibee floats and Flavored Crispy Fries in 2011. Type: However, the business incorporated a year later with only five stores in Manila. Core target group analysis in the selected market The company competes well with multinationals in the Philippines, and has begun a large expansion into the international market, including China and the United States. The recommendations based on the previous discussion will be given for the UK market in the fourth section. Jollibee is a fast food restaurant with American-influenced items, as well as casual Filipino fare. As part of the international expansion program, the management wants you to prepare a report to identify marketing chances. If the response of the local public is positive they can slowly increase their outlets. In keeping with local tastes that appreciate food with lots of sugar and salt, Jollibee hamburgers are especially sweet. 1. The co-ordination between the different teams and the different levels also is considered to be very high. Students looking for free, top-notch essay and term paper samples on various topics. What sources of competitive advantage was it able to develop against McDonald's in its home market? Company Background their rice dish in Indonesia to suit their tastes. It also introduces the Crunchy Chicken Burger and Chicken Nugget Crunchers to its chicken offerings. * Waste reduction (TQM) and Standardization of food items will further help in cost reduction. High operational efficiency and a well laid out plan with honesty, integrity as a part of their value system. And Jollibee then began offering hot meals and sandwiches in 1977, which are unique Filipino food that meet with local tastes. The ramifications of poor relations are clear in the closing down of many franchisees abroad. For this they also implanted frequent checks that ensured that the standards, quality, hygiene, customer satisfaction etc was maintained. Retrieved from https://studymoose.com/jollibee-case-analysis-essay, Type: CASE SYNOPSIS It diversified into sandwiches after the company’s president Mr. Tony Tan realized that events triggered by the 1977 oil crisis could double the price of ice cream (Barlett, Bemish 2010). 9,100 CPD E GERMANN RD S STEARMAN DR JIMMY JOHN’S MS MIIH 5 // Jollibee. The executive summary is the most important section of the business plan for your mobile food business; it tells your readers why you think your business idea will be successful. IT capitalised on the changes that came its way to fight the competition from brands like McDonalds and KFC. But this strategy failed as he realized that not all Filipinos had same tastes. * Jollibee should communicate the company culture through company conventions to ensure that the company interests are achieved. * Good operations management. * Tap the market with lesser or fewer competition. Written Assessment (Total: 80%) iMid – Term Exam (Chapter 1 – 4) Paper 1 – Theory (15%) Paper 2 – Application (25%) Final Exam (Chapter 5 – 10) Paper 1 – Theory (20%) Paper 2 – Application (30%)   1. Jollibee Case Analysis. * Inability to attract local managers due to the fact that the brand was less recognizable and also as a result of aversion from the international firms. It will be located in the rapidly expanding, City of Progress, Enterprise, Alabama. But it should not exclude the local populace of the host nation. However, the business incorporated a year later with only five stores in Manila. Our staff is experienced and dedicated professionals with many years of party planning experience. Well according to the book and in the internet, Tony Tan Caktiong is the owner, and the current Chairman and CEO of Jollibee. Conclusion31 V. Reference32 I. Whenever we discuss about fast food restaurants, the first name which comes in our mind is of McDonalds which has the world’s largest chain of fast food restaurant. So what make a difference are the things like the service, providing extra drinks / any other supplementary product with your main product. In this study we have first analyzed the case background so that we understand the scheme of things. Jollibee used this as an advantage, being their home country, and pressed forward with expanding their food offerings and advertising. In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus broadening its capitalization and laying the groundwork for sustained expansion locally and beyond the Philippines. The market as described lacks a decent outlet to eat at. At the age of 22, inspired by a visit to an ice cream plant, he set out to gain his own foothold in the restaurant business: relying on family savings, he seized a franchising opportunity with Magnolia Dairy Ice Cream and opened two ice cream parlors. A dominant market leader in the Philippines, Jollibee enjoys the lion’s share of the local market that is more than all the other multinational fastfood brands in PH combined. Jollibee also launched its new Cheesy Bacon Mushroom Yum, Garlic Pepper Beef, Ultimate Burger Steak, Amazing Aloha Champ. * Acquired 73% if the Hamburger segment. Company Background The Pilipino Company, Jollibee, is imitating McDonald’s in some ways but has its own twist on offering unique products that emphasize local spices and local taste preferences. It has been the number one fast food chain overtaking giants such as McDonalds and Kentucky Fried Chicken or KFC. These problems may help a person in different ways based on the perception of an individual or otherwise, may have negative impact on the person’s totality. Thus was born the company that revolutionized fast food in the Philippines. Get a verified writer to help you with Jollibee Case Analysis. Jollibee Case Study Introduction Jollibee started in 1975 as an ice cream parlor (Barlett, Bemish 2010). Low cost pressure was always there as they were faced with heavy competition. v. Consumers Bargaining Power- High. Therefore looking at the above mentioned points we would recommend that the company should follow a transnational strategy given that they face high pressures of both cost reduction and local adaptation. Executive Summary Opportunity Problem. * Jollibee needs a strong corporate culture, and informal management networks to assist in coordination and control. Context Analysis In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus...... ...reasonable and re. With its success, Jollibee franchise has now a tag price of P25+ Million (US$ 500,000+) They chose a bee because of its association with hard work, and because honey represents the sweet things in life. The company’s chairman and CEO Tony Tan Caktiong wanted JFC to grow internationally and also improving its quality and growth in their domestic country and having goals of profitability, growth, capturing a large international market share and help developing their home country. After college graduation, Tony did not immediately find a job as many friends did. The Jollibee Food Corporation has been serving us with their delectable collection of fast food, but what do we really know about the Jollibee Food Corporation? Jollibee Foods Corporation enters list of Top 1000 Corporations Gideon Falk, Ph.D Lumba suggested that to shift their business of ice cream parlor to hamburgers after his studies showed that a much larger market was waiting to get tapped.And sure enough, their hamburgers became a hit for a lot of Filipinos. Extravaganza listens to the customers’ needs and works with them to create the event of their dreams. Franchise Success Story: Jollibee WEA gives Jollibee Gold record award for the outstanding sales of Jollibee songs. An effective MDP can build a unifying corporate culture by socializing new managers and partners into the norms and value systems of the firm. In 1984, Jollibee hit the P500 million sales mark, landing in the Top 500 Philippine Corporations. We have recommended the company to follow transnational strategy that would help them achieve an advantage over the competitors. Eventually, they found out that more people were ordering hamburgers more...... ...Jollibee Foods Corporation * Catering to a fast food joint as it is needs a very strong convincing power due to the shift to healthy food by many people. Beef is served with honey and rice and of course there are mango shake. * Due to the high tariff barrier and the advantage of economies of scale, differentiation that a firm gets over time. * Increase the product line to favour the taste of local consumers. This strategy failed as Filipino food was not perceived the same way in every country and the pressures for local adaptation increased. The key issues faced by the company are listed as follows: * Strained relation between the domestic and international wings resulting out of their differing opinions. Thus was born the company that revolutionized fast food in the Philippines. Also high because of the high standardization in terms of quality, quantity, price, procedures and processes which are similar and there’s competition to get better in these aspects. The third section is the strategic concerns faced by Jollibee in the UK market. The fast food industry is basically a very highly competitive market that strives on cost leadership. Essay, 14 pages. Jollibee, the original flagship brand, together with its additional product concepts, dreams of becoming a global powerhouse in the restaurant industry. * High domestic market share due to selection of the best location that is a result of first mover advantage. A small market research before the venture would be suggested to get an idea of the local needs and the potential in the market. JFC's principal business is the development, operation, and franchising of quick-service restaurants under the trade name "Jollibee". 2. CHAPTER 1 THE PROBLEM Introduction Problems are inevitable part of life. So that the menu can be varied according to regional taste. The U.S. responds very well to well marketed companies. Jollibee wins the 9th International Foods Award from El Comestible in Barcelona, Spain When did Jollibee Food Corporation start? Jollibee Foods Corp operates and franchises quick-service restaurants. * JOLLIBEE bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Award held in Singapore. SWOT Analysis: Where the opportunity and threats talk about the external factors affecting the firm’s performance and the strengths & weakness about the internal factors of the organisation. * Create differentiation by cost advantage or customer experience. Expansion happens mostly through Franchisees and Joint Ventures, it is very important to attain Economies of Scale to do well in this kind of industry as the cost of all other things as we all know is just increasing manifold. Jollibee is one of leading food company in the Philippines and is ranked among one of the Asia’s top food company. (546). Jollibee Case Study Introduction Jollibee started in 1975 as an ice cream parlor (Barlett, Bemish 2010). It needs to localize its menu to attract the local customers. When this strategy failed Kitchner used the “plant-the-flag” strategy as a part of which he wanted to mark his presence in as many countries as possible. Jollibee built a dominant position in the fast food market in the Philippines by creating a spicy homestyle hamburger that appealed to the Filipinos taste and created a fast food environment that was fun and family oriented, following the “Five Fs” (philosophy adopted by the company – friendliness, fun, flavorful food, flexibility, family) In 1981, competition entered the picture for Jollibee as McDonalds entered the Philippines market with rapid expansion of 6 stores in 2 years. Will be 3 form of assessment to be used to make employees Philippine! 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