...Jollibee Foods Corp.: International Expansion Executive Summary Jollibee was a company originally established by the Tan family in 1975 as a family-owned ice cream parlor in the Philippines, but was soon forced to change its market caused by the oil crisis of 1977 - a factor which would have inherently caused the price of ice cream to double. Already established in the food industry and having overcome the initial barriers faced by those entering it, the Tan family successfully diversified the company to selling sandwiches. From that point, Jollibee began expanding their success by launching a total of five stores by 1978, founding what we see today as Jollibee Foods Corp. 1. How was Jollibee able to build its dominant position in fast food in the Philippines? What are the sources of competitive advantage was it able to develop against McDonalds in its home market? There were several contributing factors in Jollibee’s rise to a dominant position in the Philippines fast food market. Because they were already doing business in the food industry, the entry barrier was low in making the shift to fast food. Additionally, the recipe was developed locally using culturally desirable ingredients destined to satisfy the taste buds of the patronage. The brand was quickly developed using the “Five F’s” that were Jollibee’s business philosophy: Flavorful Food, Fun, Flexibility, and Families. Jollibee’s ability to offer all of these benefits at an affordable price led the company...
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...JOLLIBEE FOODS CORPORATION Abstract This case study examines the rapid growth of one of the most successful companies in the Philippines, the fast food giant, Jollibee Foods Corporation. In this paper, detailed information regarding the company’s history and the measures it took to establish itself in its initial years was used in the in depth analysis of the company’s strategic plan. This also includes an analysis of their vision-mission statement as well as the analysis of their external environment using the PESTEL Framework. Company History Overview Jollibee Foods Corporation or JFC is centered on developing, operating and franchising fast food stores under the trade name Jollibee. The company operates on 3 segments: Food Service, Franchising and Leasing. The Food Service segment engages in the operations of quick service restaurants and the manufacture of food products to be sold to Jollibee Group-owned and franchised QSR outlets. The Franchising segment is involved in the franchising of the Jollibee Group's QSR store concepts. The Leasing segment leases store sites mainly to the Jollibee Group's independent franchisees. The company was founded by Tony Tan Cationg in 1975 and is headquartered in Pasig City, Philippines. Currently Jollibee is the largest fast food chain in the Philippines, operating over 750 stores. 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 brands combined...
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...Arguments……………………………………………………………………………7 Industries Analysis…………………………………………………………………………….7 Fast Food Industry………………………………………………………………………… 7 Porter’s 5 forces model for JFC…………………………………………………………….....8 Firm Analysis………………………………………………………………………………….8 Alternatives Strategies…………………………………………………………………………...10 Choosing the Right Strategy…………………………………………………………….........10 Existing Strategy for Jollibee……………………………………………………………...….11 Recommendation for Decision making………………………………………………………… .11 Papua New Guinea………………………………………………………………………...… 11 Hong Kong…………………………………………………………………………..……… .11 California……………………………………………………………………………………. .11 Implementation Plan……………………………………………………………………………. 11 Human Resources Revamp plan………………………………………………………………12 Operations Revamp plan……………………………………………………………………....12 Financial Revamp Plan………………………………………………………………………..13 Marketing Revamp Plan………………………………………………………………………13 Appendix…………………………………………………………………………………………14 References………………………………………………………………………………………..15 Executive Summary Jollibee Food Corporation is a Filipino fast food retail chain that was started in 1975 and from then on the company was on an expansion trend. It capitalised the changes in the political scenario in the country and thrived the competition from global players like McDonalds. It went public in 1993 and has been pursuing an aggressive global expansion strategy most...
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...INTRODUCTION WELCOME TO THIS CASE STUDY PROGRAMME! The Jollibee case study should be appealing to many candidates given the familiar nature of the product. Although very little is known about the brand, given the recent ‘silent’ entry into the Singapore market without much fanfare, we all know should be familiar with how the fast food industry operates. The case certainly has all the “ingredients” of a strategic management case study although at the first reading of the case, with a clear focus on international expansion strategies. The good news is that we are given very clear information regarding the strategic directions of the company. We will discuss this later in another section. The case deals with that aspect of strategic management known as services. It also has information on market analysis, competition and positioning. The problem I feel with the case study is that there are no immediate problems to resolve, in that Jollibee seems to have been performing well and their international expansion strategies seem to be on track to grow the business further. This I feel is the crux of the whole case study. To this end, the Jollibee case study needs to be addressed from only ONE perspective - SUSTAINABILITY in the light of increasing competition and changing market demographics. Areas of focus in the case It is imperative that when we approach this case, we MUST adopt a strategic perspective and NOT be concerned about the operational issues. Fortunately, the case seems to...
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...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 to the APM franchise in (a) the first year and (b) the third and subsequent years? In planning for future expansion, what strategy should Christine Taylor adopt for APM and why? 3. 4. Analysis 1. How did Christine Taylor succeed in evolving the local dog-washing service she developed as a teenager into an international franchise business? Taylor’s success springs, first, from her...
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...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 to the APM franchise in (a) the first year and (b) the third and subsequent years? In planning for future expansion, what strategy should Christine Taylor adopt for APM and why? 3. 4. Analysis 1. How did Christine Taylor succeed in evolving the local dog-washing service she developed as a teenager into an international franchise business? Taylor’s success springs, first, from her...
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...S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II www.ibscdc.org 1 Transformation Corporate Transformation Korean Air: Chairman/CEO Yang-Ho Cho’s Radical Transformation A series of fatal accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven...
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...PART I COMPANY PROFILE 1.1Name of the Company McDonald's Corporation McDonald's 1.2 Location of the Company (Head Office) Golden Arches Development Corporation 17th Floor Citibank Centre, Paseo De Roxas Avenue, Makati City 1.3 Locations of McDonald’s All over the Philippines there are McDonald’s. McDonald’s has grown to become one of the leading fast food chains with close to 300 restaurants nationwide. Mostly branches were strategically located at the malls and commercial buildings. 1.4 Website Address www.mcdonalds.com.ph 1.5 Background History of the Company The business began in 1940, with a restaurant opened by brothers Richard and Maurice McDonald at 1398 North E Street at West 14th Street in San Bernardino, California . Their introduction of the "Speedee Service System" in 1948 furthered the principles of the modern fast-food restaurant that the White Castle hamburger chain had already put into practice more than two decades earlier. The original mascot of McDonald's was a man with a chef's hat on top of a hamburger shaped head whose name was "Speedee". Speedee was eventually replaced with Ronald McDonald by 1967 when the company first filed a U.S. trademark on a clown shaped man having puffed out costume legs. McDonald's first filed for a U.S. trademark on the name "McDonald's" on May 4, 1961, with the description "Drive-In Restaurant Services", which continues to be renewed through the end of December 2009. In the same year, on September 13, 1961, the...
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...ADVOCACY ADVERTISING I. EXECUTIVE SUMMARY 4 II. SITUATION ANALYSIS 4 A. Industry Study: 4 1. Composition/Size/Market Segments 4 Small and Medium Scale Enterprises 4 Microenterprises 5 2. Current Situation 6 a) Microenterprises 7 b) Small Scale Businesses 7 c) Medium-Sized Businesses 7 3. Similar Campaigns 8 a) “Made In” vs. “Product Of” vs. “Owned by” (Australia & South Africa) 8 b) Buy Philippine Made Movement, Inc. 9 c) Seal of Excellence 9 d) Action Plan 10 4. Market Study 10 a) Colonial Mentality 10 b) Products Consumed 11 B. Definition of Issues 13 1. Philippine Made 13 2. Patronization of Philippine Made Products 15 3. Perceptions on Campaigns for Philippine Made 16 C. Position of Advocate 18 1. Mission and Vision: 18 2. Resources: 18 3. Competition: 19 4. SWOT Matrix: 19 5. TOWS 20 III. DEFINITION 22 A. Identification of Target Market 22 1. Primary: Youth 22 2. Secondary: Yuppie 24 B. Target Publics 24 C. Recipients 24 D. Product 25 IV. GOALS AND OBJECTIVES 25 A. Short term 25 B. Medium term 25 C. Long term 25 V. MARKETING MIX 25 A. Market Targeting 25 1. Size of the New Market 25 2. Demographic Characteristics 26 3. Psychographic Characteristics 26 4. Behavioral Characteristics 27 Primary Research Data 28 B. Product 30 C. Sales and Distribution Program (Please...
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...1. EXECUTIVE SUMMARY Public Securities Corporation (PSC), a wholly-owned stock brokerage firm of the AFP Retirement and Separation Benefits System (AFP RSBS) envisions itself to be one of the top stock brokerage firms in the Philippines. The company was acquired by the AFP RSBS from a group of private individuals in 1994 with the main objective of taking advantage of the favorable prospects in the stock market and at the same time, to generate income for the mother company. Value turnover at the Philippine Stock Exchange slowed by 30% and lost P383 billion from P1.2 trillion in 1997 to P817 billion in 1998 due to the Asian Financial crisis. The decline in value turnover resulted to less commission income generated from broking services that caused both local and foreign brokers to leave the Philippine equities market and applied for temporary suspension, while others opted to cease operations totally. Political instability also discouraged investors in Philippine equities during the Estrada Administration. Illegal trading activities, such as frontrunning, insider trading and “kiting” resulted to the loss of investors’ confidence towards the regulatory bodies, the Securities and Exchange Commission and the Philippine Stock Exchange. This paper presents three frameworks to analyze the effectiveness of the company’s current strategy. Among the frameworks employed was PEST Analysis or Political, Economic, Social and Technological Analysis which was used to...
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...G I Z E D After a stellar year, Meralco is re-energized and ready to pursue new opportunities that will accelerate growth in the longterm. Despite unprecedented challenges in the past, we have prevailed, and more importantly, thrived. Thanks to the support of our shareholders and our unwavering faith in the corporate values that have sustained us through the years. We look forward to a brighter future strengthened by our strategic pillars and the extraordinary commitment of our leadership. An empowered, enlightened Meralco is ready to seize it. A new day has come. 1 Meralco 2010 Annual Report Our Company Meralco marches on to its 108th year of service in 2011. Consistently in the list of the Philippines’ top five corporations and cited among Asia’s finest, Meralco today serves over 4.8 million residential, commercial and industrial customers. It is strategically located to serve the country’s center of commerce and industry and its hub of government services and infrastructures. It services about 30 manufacturing economic zones, which also compete in the global market. Likewise, the Company caters to providers of...
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...Chapter 1 expanding abroad: motivations, means, and mentalities Case 1-1 Cameron Auto Parts * Alex Cameron got the family biz when graduated in 2001, when the American economy fell into a recession * History * Auto Pact, big three ship car parts between Canada & US, with tariff free * Cameron focus on small engine parts and auto accessories * Car Sales dropped in 2000, because declining North America and entry of Japanese * High pressure for modernization and cost reduction * Operational survival: cut workforce, overtime, part-time, subcontracting * Recovery and diversification * The short-term future seemed positive, but the popularity of Japanese car forced it to diversify * Working as an OEM Cameron did little to be innovative * Alex brought in a team of designers, concentrating on developing products with a wider ‘non-automotive’ market appeal * The first year no progress, Alex lured away a key engineer from the Canadian firm, and mid-2003, developed its own line of flexible couplings * Marketing the new product * Hired eight field sales representatives, stress product quality, service and speed of delivery, but not price. * Financing plant capacity * Increasing sales of flexible couplings required a new separate plant, but the financial position is not strong enough to support it * Foreign markets * Took a European Patent * A licensing opportunity ...
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...Doing Business in Vietnam: 2009 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2008. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. • • • • • • • • • • Chapter 1: Doing Business In Vietnam Chapter 2: Political and Economic Environment Chapter 3: Selling U.S. Products and Services Chapter 4: Leading Sectors for U.S. Export and Investment Chapter 5: Trade Regulations and Standards Chapter 6: Investment Climate Chapter 7: Trade and Project Financing Chapter 8: Business Travel Chapter 9: Contacts, Market Research and Trade Events Chapter 10: Guide to Our Services 3/3/2009 Return to table of contents Chapter 1: Doing Business in Vietnam • • • • Market Overview Market Challenges Market Opportunities Market Entry Strategy Market Overview Return to top • Vietnam is a true emerging market, offering ground floor and growing opportunities for U.S. exporters and investors. Vietnam’s economic growth rate has been among the highest in the world in recent years, expanding annually at 7-8.5 percent, while industrial production has been growing at around 14-15 percent per year. Vietnam’s macroeconomic challenges and the global financial crisis dampened this growth in 2008 and will continue to do so in 2009. • In response to significant macroeconomic challenges, including high inflation and a large and growing current account deficit, the...
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...Doing Business in Vietnam: 2011 Country Commercial Guide for U.S. Companies INTERNATIONAL COPYRIGHT, U.S. & FOREIGN COMMERCIAL SERVICE AND U.S. DEPARTMENT OF STATE, 2011. ALL RIGHTS RESERVED OUTSIDE OF THE UNITED STATES. • • • • • • • • • • Chapter 1: Doing Business in Vietnam Chapter 2: Political and Economic Environment Chapter 3: Selling U.S. Products and Services Chapter 4: Leading Sectors for U.S. Export and Investment Chapter 5: Trade Regulations, Customs and Standards Chapter 6: Investment Climate Chapter 7: Trade and Project Financing Chapter 8: Business Travel Chapter 9: Contacts, Market Research and Trade Events Chapter 10: Guide to Our Services Return to table of contents Chapter 1: Doing Business in Vietnam • • • • Market Overview Market Challenges Market Opportunities Market Entry Strategy Return to top Market Overview • Vietnam is a true emerging market, offering ground floor and growing opportunities for U.S. exporters and investors. Vietnam’s economic growth rate has been among the highest in the world in recent years, expanding at an average about 7.2 percent per year during the period 2001-2010, while industrial production grew at an average of about 12 percent per year during the same period. Vietnam registered GDP growth rate of 6.7 percent in 2010 and was one of only a handful of countries around the world to experience such levels of economic growth. Moving forward, inflation remains a main risk to Vietnam’s economy, which the Government...
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...Outline: RESEARCH 1) NATURE AND SCOPE OF RESEARCH 1.1) Definition – purposive, systematic and scientific process of gathering, analyzing, classifying, organizing, presenting and interpreting data for the solution of a problem, for prediction, for invention, for the discovery of truth, or for the expansion or verification of existing knowledge, all for the preservation and improvement of the quality of human life. 1.1.1) History of Research Historical records reveal that there is no written document on the beginning of business research as an organized business activity, but this is definitely of modern origin. During the Middle Ages, the merchant families of Fugger and Rothschild prospered in part because their organizations enabled them to get information before their competitors did. These studies were unsystematic, but considered to be well organized during that time. In 1879, more by accident than foresight, N. W. Ayer and Son conducted a crude but formal market survey, to measure markets for agricultural machineries, manufactured by Nicholas-Shepard Company. This market survey is probably the first real attempt at business research in the United States. The Curits Publishing company is generally conceived to have formed the first formal business research department with the appointment of Charles Parlin as manager of the Commercial Research Division of the Advertising Department in 1911. His original idea was that advertising space could be sold more effectively...
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