...How was Jollibee able to build its dominant position in the fast food in the Philippines? What sources of competitive advantage was it able to develop against McDonald's in its home market? 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. McDonalds grabbed 27% of the fast food market to Jollibee’s 32%. Jollibee countered the competitions popular “Big Mac” by creating a large hamburger called the “Champ”’. Jollibee’s research indicated that the Filipinos still preferred their spicy taste to the plain beef patty taste, and one large burger as opposed to the Big Macs two smaller patties would appeal to the Filipinos large appetites, thus their advertising focused on taste and size. By 1983 the country was experiencing economic and political unrest which slowed down expansion of foreign investors. Jollibee used this as an advantage, being their home country, and pressed forward with expanding their food offerings and advertising. In 1987, foreign investors returned to continue their expansion in the Philippines to find that Jollibee held the...
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...reasonable and re. A domestic firm needs to know how best to handle internal resources within that region better than any other MNC. Multi-nationals will need to have a large budget to perform market research and grasp a better understanding of the area. Domestic firms are also very sensitive to change where as multinationals always take longer to adapt. 2. Can Jollibee Foods Corporation continue to successfully leverage its brands and products in other geographic markets, including the United States? Explain. Yes, Jollibee's history demonstrates that it's strategy has expanded its size to open thousands of new locations in the past years. It should focus on perfecting the local market taste preference. Everything from using the right ingredients to having the right color scheme in the restaurants to attract customers. However, within the United States, Jollibee needs to focus on streamlining the supply chain and investing heavily in advertising. The U.S. responds very well to well marketed companies. initial costs will be extremely high for any foreign company that is trying to penetrate the market. Jollibee needs to focus on cutting costs as soon as it can and...
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...Executive Summary Founded in 1975, Jollibee Foods Corporation became one of the biggest restaurant chains in the Philippines. Jollibee offered American style fast food that was prepared according to Filipino taste. Jollibee became a sensation in the Philippines and a regular destination for the locals. However, Jollibee decided to go international, with hopes of expanding fast food operations into Asia. This analysis explains how competition influenced Jollibee’s domestic and international strategy, which later transformed the company into a global company .The company faced serious challenges with their international expansion. While early growth was prosperous and plentiful, but challenges arouse included conflicts with individual franchisees and conflicts between corporate divisions. This analysis first details Tony Kitchner's three years as the head of Jollibee's International Department. Secondly, describes the situation and company climate in which Noli Tingzon steps into immediately after his promotion. Next, is a brief description of Jollibee's mentality of Internationalization Jollibee Foods tends to try and follow. Finally, in question four there is an analysis of the three investment options available for Noli Tingzon to pursue as well as a recommendation for future expansion. 1.) Tony Kitchner came to Jollibee in 1994 to take charge of the International Division, and it seemed that he was successful over his three year tenure. There was clear expansion and...
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...IM for Lovelock & Wirtz, Services Marketing 6/e Teaching Notes for Cases - Section 5 45 CASE 6 AUSSIE POOCH MOBILE OVERVIEW After creating a mobile service that washes dogs outside their owners’ homes, a young entrepreneur has successfully franchised the concept. Her firm now has more than 100 franchisees in many parts of Australia, as well as a few in other countries. In early 2002, she and her management team were debating how best to plan future expansion. STUDY QUESTIONS How did Christine Taylor succeed in evolving the local dog-washing service she developed as a teenager into an international franchise business? ________________________________________________________________________ Note: All financial data are in Australian dollars (AUD), whose exchange value in 2003 at the time of the case was USD 0.57 = EUR 0.58 = GBP 0.41. [More recent exchange rates reflect a sharp drop in the value of the U.S. dollar against the Australian dollar, euro (EUR), and pound sterling (GBP). By late 2006, AUD 1.00 = USD 0.76 = EUR 0.60 = GBP 0.40). These changes in exchange rates would not affect decisions by APM on expansion within Australia but could have an impact on the relative attractiveness of future investments in, say, the UK versus the U.S.] 1. © 2004, 2007 Christopher H. Lovelock 2. Compare and contrast the tasks involved in recruiting new customers and recruiting new franchisees. From a franchisee’s perspective, what are the key benefits of belonging...
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...POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Maragondon Branch Maragondon Cavite A NARRATIVE REPORT ON PRACTICUM 1 STORE PRACTICUM JACINTO E. ARAYATA JR. JUNE 09, 2014 JOLLIBEE TANZA ANTERO A. SORIANO HIGHWAY, DAANG AMAYA II TANZA, CAVITE A Narrative Report Submitted to the Faculty Of the Polytechnic University of the Philippines Maragondon Branch Maragondon, Cavite In partial fulfillment of the requirements for the Course in Bachelor of Science in Business Administration Major in Human Resource Development Management JACINTO E. ARAYATA JR. June 09, 2014 Republic of the Philippines Polytechnic University of the Philippines Maragondon Branch Maragondon, Cavite COLLEGE OF BUSINESS ADMINISTRATION Narrative Report of : JACINTO E. ARAYATA JR. Title : PRACTICUM EXPERIENCES AT JOLLIBEE TANZA APPROVED: PROF. CARMELITA M. CAULI ____________________ Practicum Professor Date APPROVAL SHEET A narrative report, entitled “A narrative report in on the job training” undertaken at Jollibee Foods Corporation located at Tanza, Cavite. Prepared and submitted by Jacinto Arayata Jr. in partial fulfillment of the requirements for Bachelor of Science in Business Administration Major in Human Resource Development Management, is hereby endorse for approval. Accepted and approved in partial fulfillment of the requirements for...
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...FAQ's Franchise NewsNews Case Studies Breaking News All Franchise Opportunities Franchise Success Story: Jollibee Jollibee is a phenomenal success story: what began as a two-branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. Thus was born the company that revolutionized fast food in the Philippines. In 1984, Jollibee hit the P500 million sales mark, landing in the Top 500 Philippine Corporations. In 1987, Jollibee is a phenomenal success story: what began as a two-branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. Thus was born the company that revolutionized fast food in the Philippines. In 1984, Jollibee hit the P500 million sales mark, landing in the Top 500 Philippine Corporations. In 1987, barely 10 years in the business, Jollibee landed into the country's Top 100 Corporations. It became the first Philippine fast food chain to break the P1 billion sales mark in 1989. 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. Undisputed leadership As the country's leading fast food chain, Jollibee has grown exponentially on...
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...Jollibee Foods Corporation Charles A. Rarick, Ph.D. Gideon Falk, Ph.D Casimir Barczyk, Ph.D. Purdue University Calumet CASE SYNOPSIS 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. This fast growing restaurant chain has benefited from the increased demand for fast food in East Asia and has developed a unique business strategy. This case examines Jollibee’s success and how the company is successfully competing with McDonald’s. With its rapid growth, the company is now ready to expand to the rest of the world. INTRODUCTION Jollibee Foods Corporation, known distinctively by its red and yellow bumble bee mascot, operates a number of concept restaurants in the Philippines and beyond. 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. 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. Jollibee, the original flagship brand, together with its additional product concepts, dreams of becoming a global powerhouse in the restaurant industry. THE PHILIPPINES The Republic of the Philippines is a country in Southeast Asia consisting of over 7,000 islands. The Philippines was “discovered” by Ferdinand Magellan in...
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...IM for Lovelock & Wirtz, Services Marketing 6/e Teaching Notes for Cases - Section 5 45 CASE 6 AUSSIE POOCH MOBILE OVERVIEW After creating a mobile service that washes dogs outside their owners’ homes, a young entrepreneur has successfully franchised the concept. Her firm now has more than 100 franchisees in many parts of Australia, as well as a few in other countries. In early 2002, she and her management team were debating how best to plan future expansion. STUDY QUESTIONS How did Christine Taylor succeed in evolving the local dog-washing service she developed as a teenager into an international franchise business? ________________________________________________________________________ Note: All financial data are in Australian dollars (AUD), whose exchange value in 2003 at the time of the case was USD 0.57 = EUR 0.58 = GBP 0.41. [More recent exchange rates reflect a sharp drop in the value of the U.S. dollar against the Australian dollar, euro (EUR), and pound sterling (GBP). By late 2006, AUD 1.00 = USD 0.76 = EUR 0.60 = GBP 0.40). These changes in exchange rates would not affect decisions by APM on expansion within Australia but could have an impact on the relative attractiveness of future investments in, say, the UK versus the U.S.] 1. © 2004, 2007 Christopher H. Lovelock 2. Compare and contrast the tasks involved in recruiting new customers and recruiting new franchisees. From a franchisee’s perspective, what are the key benefits of belonging...
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...How was Jollibee able to build its dominant position in fast food in the Philippines? What sources of competitive advantages was it able to develop against McDonald’s in its home market? Jollibee was able to build its dominant position by becoming more flexible than McDonalds. Jollibee took advantage of their competitor’s lack of flexibility by understanding local customer’s tastes and needs. Jollibee understood the locals preferred the taste of their sandwich over McDonalds and also attacked by releasing their own massive burger to compete with the Big Mac. Jollibee was the first to introduce burgers in the Philippines which shaped the expectations of the customers. McDonalds was not flexible enough to adapt to the locals preferred tastes. Jollibee’s creative, custom menu kept their customers returning and loyal. How would you evaluate Tony Kitchner’s effectiveness as the first head of Jollibee’s International Division? Does his broad strategic thrust make sense? How effectively did he develop the organization to implement his priorities? Kitchner believed in the sprinkler approach and the first-mover advantage which he initiated expansion rapidly. In the long run, most franchising would need to meet specific sales levels in order to afford necessary promotion and advertising to build brand awareness. I see his effectiveness as failure due to his strategy for entry. The strategic thrust may just only make sense short term. As Noli Tingzon, how would you deal...
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...A Research Study on How Jollibee Foods Corporation Turned a Simple Manila Business College Student into a Professional Individual Ramos, Abegael O. BS-HM Table of Contents Title Page ....................................................................................................................... i Table of Contents …....................................................................................................... ii Acknowledgement ….................................................................................................... iii Chapter I. The Problem and Its Background Introduction …............................................................................................................... Background of the Study …............................................................................................ Conceptual Framework ….............................................................................................. Statement of the Problem ............................................................................................ Hypothesis ….................................................................................................................. The Importance of the Study ……………………………………………………………………..….……….. Scopes and Limitations ….............................................................................................. Definition of Terms …...........................................................................
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...JOLLIBEE FOODS CORPORATION: INTERNATIONAL EXPANSION ------------------------------------------------- By Group 4 CASE BACKGROUND Jollibee Foods Corporation (JFC) is the most successful fast food chain in the Philippines. It started out as an ice cream parlor owned by the Tan family, headed by Tony Tan Caktiong (TTC) as President. Brought about by oil crisis which doubled the price of ice cream, JFC diversified into hamburgers in the year 1977. Jollibee’s philosophy is epitomized by “Five Fs” – Friendliness, Flavorful food, Fun atmosphere, Flexibility in serving customer needs, and Focus on families. Though it began as a family business, eventually, it went public in 1993. JFC expanded its business through acquisition of other food chains but Jollibee stores remained the bread and butter of the parent company, contributing 85% of total revenues. Jollibee had grown quickly having a total of 223 stores worldwide by the end of year 1997. Jollibee ventured into overseas expansion attempts since 1985 but were mostly unsuccessful due to location and partner issues. In 1993, TTC hired an Australian national Tony Kitchner (who was the former VP for International Operations in Pizza Hut for 14 years), to lead JFC International Division in order to push its international presence at full throttle. Tony Kitchner initiated many drastic changes in the division from modifying office design and dress code to pushing aggressive expansion strategies and rebranding Jollibee’s image offshore...
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...must be evaluated keeping long term business strategy in mind. Evaluating this decision culturally; the US, especially California, has one of the most diverse cultures as far as food and population. This is partially evident by the menu appealing to Americans in Guam. Moreover, Jollibee’s analysis of California indicates a high Filipino expatriate concentration and low level of competitors; two things relatively easy to quantify. The Hong Kong location is expected to have far less Filipinos than the Central location which struggled to attract locals, but did an excellent job with expatriates. This company understands expatriates. Moreover, the ongoing issues in China, for example, mangers quitting, reflects some cultural differences that Jollibee is still struggling with in this region of the world. The lack of solid and positive information of New Guinea is indicative that this market, as this point, is not yet ready to have “flag-planted.” Moving to geographic distance; certainly the California is the furthest from the parent country in comparison to the other two options. Success in Guam demonstrates that geographic obstacles (distance and size) can be overcome assuming the correct business infrastructure is in place. For comparison sake, Brunei and Taiwan are both relatively close in terms of physical distance, and their ventures started around the same time, yet both performed quite differently. Economically, the US has a...
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...Case study Visit an environment Conduct & survey/ interview & observation * Effects of environmental degradation * How they address it or solve the problem * How implementation for environmental conservation 1. Introduction – define & explain environmental conservation 2. Overview of establishment – History and description 3. Environmental conversation observation a. Solid waste b. policies c. penalties d. problems encounter (regarding envi conversation) e. participation of the company in any envi conversation advocacy f. photos ( 4 pictures include the front of the establishment ; the interview; their policies; solid waste disposal) 3R size with caption. 4. Summary, conclusion and finding 5. Recommendation JOLLIBEE FOODS CORPORATION Introduction: The Jollibee Food Corporation remains unwavering in its commitment to bring joy to our customers, and that means doing our part in conserving our natural resources and keeping our environment safe, clean, and beautiful. Part of our water management practice is the use of hygienic waterless urinals in our stores. This odorless facility uses a special liquid sealant to prevent odors from escaping and funnel pure urine down the drain. Overview of establishment: Jollibee is a Filipino multinational chain of fast food restaurants headquartered in Pasig, Metro Manila, Philippines. JFC is the parent company of Jollibee, the country's answer to McDonald's in the fast food burger...
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...CASE 8: MCDONALD PHILIPPINES THE JOURNEY OF GEORGE YANG Known as the McDonaldman of the Philippines, George Yang (Gyang) started his journey after graduation from Wharton School of Finance, University of Pennsylvania in 1964. Back in Manila, he settled in to start a family and began a two-year juggling act of working as a marketing manager of a tobacco company (Bataan Cigarettes), consulting for a manufacturing company, and selling a variety of things on the side. These included insurance, nicotine guards (TAR-OFF), imported cosmetics, and lecturing Financial Management and Marketing subjects at his alma mater, De La Salle University. Kristin was very supportive of George. She acted as sales manager of the Tar-Off that George invented, even when walking down streets to offer the filters on consignment. At the prodding of Don Amado Araneta, Kristin started a nameless counter in supermarkets offering jewelries to young working mothers, which later evolved into a more sophisticated brand, Kristin Jewelry, which carried fine jewelry for upscale clients. George worked behind the scene, understanding market behavior, monitoring fluctuations in the price of gold in the global markets, and running the factory of 50 workers. Gyang, inspired by the success of the jewelry business, thought of something on a larger scale. He had been reading reports on a growing American fast-food chain called McDonald’s, which was being extolled in business reviews in many other countries. He wrote...
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...Jollibee Food Corporation Milestones / History 1975 * Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao. This is later to become the 1st Jollibee Outlet 1979 * Spaghetti Special is introduced * 1st Franchise owned store opens at Ronquillo Sta. Cruz. 1985 * Jollibee becomes the market leader of the fastfood industry. * Breakfast Joys are introduced. * Langhap-Sarap awarded most effective ad campaign in the food category during the 9th Philippine Advertising Congress. 1992 * Jollibee sales hit the P3.365 billion. * Started using frozen patties for its popular hamburgers. * Improved softserve ice cream line by offering fruit flavored ice cream. * Acquired 73% if the Hamburger segment. * Opened another store in Jakarta, totaling to 2 stores in Indonesia. * Jollibee have 112 stores nationwide. * Maintained its advantage over its competitors by acquiring more than 50% share of the fast food industry. 2004 * The Chairman and Chief Executive Officer of the company, Mr. Tony Tan Caktiong was named the Ernst and Young’s 2004 World Entrepreneur of the Year 2008 * 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. * JOLLIBEE bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence...
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