...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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... 4.Recommendations 5.Conclusion Reference list Executive Summary: The purpose of this report is to assess the current situation of Jollibee to determine whether the brand should enter the UK or not. The report is divided into five sections. The first section is the background to Jollibee and its international operations. The second section is the environmental analysis of Jollibee through the external analysis--- PESTEL and internal analysis---the value chain in terms of market trends, customers, competitors and current position along with the SWOT analysis. The third section is the strategic concerns faced by Jollibee in the UK market. The recommendations based on the previous discussion will be given for the UK market in the fourth section. In the final section, the conclusion will be given out. 1. Introduction: Jollibee Foods Corporation was an ice cream parlor named magnolia, started by Chinese-Filipino Tony Tan Caktiong in 1975 as a family-based business in the Philippines. And Jollibee then began offering hot meals and sandwiches in 1977, which are unique Filipino food that meet with local tastes. This home-style Philippine recipe appeals to the customers and make Jollibee expand quickly throughout the Philippines. And Jollibee’s success in the Philippines had brought...
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...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 all aspects on operation. From a handful of stores 32 years ago, Jollibee now boasts of more than 600 stores...
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...Jollibee is the dominant fast-food restaurant chain in the Philippines with over 60 percent share of the market. A survey revealed that 69 percent of Filipino respondents visited Jollibee more often, compared with only 16 percent for McDonald’s. Jollibee’s founder, Tony Tan, is ethnically Chinese. His family immigrated from China and his father worked as a cook in a Chinese temple. Mr Tan was just getting started with Jollibee when McDonald’s entered the market in 1981. His friends suggested that he apply for a McDonald’s franchise but he declined. Instead, Mr. Tan went on to develop his own chain that offers unique Filipino food, such as spaghetti with meat sauce topped with smoked fish, deep fried pork skin, bean curd, sliced boiled eggs and spring onions. In keeping with local tastes that appreciate food with lots of sugar and salt, Jollibee hamburgers are especially sweet. Beef is served with honey and rice and of course there are mango shake. Jollibee is recognised by its bee icon, which symbolises the Filipino spirit of light heartedness and happiness as well as representing a busy worker. Besides its flagship Jollibee restaurants, Jollibee Foods Corporation (JFC) also owns a chain of Chinese restaurants, Chowking, in the Philippines. But the importance of this chain is relatively low – only 2 percent of Filipino respondents in a poll replied that Chowking was their most visited restaurant. Over 25 years after Mr. Tan declined to become a franchisee of McDonald’s...
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...History of Jollibee Well according to the book and in the internet, Tony Tan Caktiong is the owner, and the current Chairman and CEO of Jollibee. 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. He graduated from University of Santo Tomas with a degree in chemical engineering. 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. After college graduation, Tony did not immediately find a job as many friends did. 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. Tony started with just two ice creams and soon had his brothers to help him in the growing business. By 1977, Tony and his brothers owned five ice cream parlors and all were successful that in terms of sales their business soon became the top ice cream chain in Metro Manila. So where are the famous hamburgers in the story? It is later in that year the sales of went down so they think of something to further boost sales. Tony decided to add an offering in the business by introducing hamburgers. And soon added french fries and fried chicken because customers were telling them that they did not want to eat ice cream all the time. As they offer the new menu, they noticed that people were lining up more for hamburgers than for ice cream...
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...Jollibee awards Jollibee Foods Corporation enters list of Top 1000 Corporations Jollibee enters list of Top 500 Corporations and assumes market leadership in local fast food industry. WEA gives Jollibee Gold record award for the outstanding sales of Jollibee songs. Jollibee wins the 9th International Foods Award from El Comestible in Barcelona, Spain Sales of 570 million pushes Jollibee into the elite Top 100 Corporations. Jollibee wins the Anvil Award for outstanding PR campaign in relation to the achievement of marketing objective with its Filipino Talents campaign. Balut and Ligaw TV commercials wins the Kidlat Award in the Service and Leisure Products category during the 11th Philippine Ad Congress. Jollibee receives the Excellence in Marketing Management Award from the Asian Institute of Management. The Lola TV commercial wins the Grand Araw Award and an award of excellence for the promotion of Filipino Values during the Philippine Ad Congress. Jollibee receives award for the outstanding Corporate Safety Consciousness Programs by the Safety Organization of the Philippines (SOP). Far Eastern Economic Review cites Jollibee as the Philippines’ leading business corporation. For the 3rd straight year, Far Eastern Economic Review ranked Jollibee as the Philippines’ leading company. JOLLIBEE bags CMMA and three Araw Values Award. JOLLIBEE wins Award of Excellence in Philippine Quill Awards for Media Relations Program(30th anniversary campaign). Tony tan awards ...
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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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...Tony Tan Caktiong is the founder, CEO and Chairman of the 2nd largest fast-food chain in the Philippines (next to McDonald's), Jollibee. He is the recipient of the 2004 Entrepreneur of the Year, Philippines and Ernst and Young Entrepreneur of the Year, World. In 2010, Forbes listed Tan Cakationg as the sixth richest Filipino with a net worth of USD 980 million. 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. Tony Tan Caktiong’s Life and his Jollibee Company is another rags to riches story of an entrepreneur that truly inspires me a lot. He was the third of seven siblings born to poor parents who migrated from the Fujian province in China to look for a better life here in the Philippines. Grace Ang Tan Caktiong said, "We had to do everything by ourselves in the beginning! Pati janitorial services--I even cleaned the toilet." This is the manifestation that everyone starts from scratch and experienced ups and downs before they become successful. Grace and Tony Tan Caktiong put up an ice cream parlor two months after graduating from college. That ice cream parlor eventually offered sandwiches to patrons until the couple decided on adding the store's popular Yum burger and Chicken Joy to the menu. When customers began to ask for more than just ice cream, the two decided to add sandwiches to their menu. Eventually, they found out that more people were ordering hamburgers more than...
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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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...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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...Organization a.) Company Background Jollibee Foods Corporation (also called JFC, and popularly known as Jollibee) is a Filipino multinational chain of fast food restaurants headquartered in Pasig. JFC is the owner of the popular fast food brand Jollibee, dubbed as Asia's answer to McDonald's in the fast food burger business. Jollibee Foods Corporation (JFC) was incorporated on January 11, 1978. JFC's principal business is the development, operation, and franchising of quick-service restaurants under the trade name "Jollibee". Jollibee was founded by Tony Tan Caktiong and his family. 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. In response to customer requests, he added hot meals and sandwiches to the menu, which soon proved a lot more popular than ice cream. Three years later, in 1978, he decided to capitalize on this development, discontinued the Magnolia franchise and converted his parlors into fast food outlets. Realizing that he needed a brand name and logo for his new business, Mr. Caktiong and his family decided on using a smiling red bee. They chose a bee because of its association with hard work, and because honey represents the sweet things in life. The “jolly” prefix was intended to connote happiness and enjoyment. Jollibee invested millions of pesos to register...
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...the Philippines, the Jollibee Food Corporation is considered to be the most popular choice among all the Filipinos. 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? Where did Jollibee Food Corporation come from? When did Jollibee Food Corporation start? Who founded the Jollibee Food Corporation? Well here's a little history behind the most popular fast food chain in the Philippines. The Jollibee Food Corporation was founded by Tony Tan Caktiong and his family. And did you know that the Jollibee Food Corporation wasn't selling fast food back in the days, instead they sell ice creams, and it was named as Jolibe. But after sometime, they decided on getting the services of a management consultant in the person of Manuel C. Lumba. 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. After this success, Lumba next reformed the name Jolibe to Jolly Bee and made the two words form a single name Jollibee. 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. On 2000, the Jollibee Food Corporation acquired...
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...Jollibee Foods Corporation Company Background Jollibee is one of leading food company in the Philippines and is ranked among one of the Asia’s top food company. It has a largest market of fast food in its home country and it has four different concepts of fast foods under different brand identities but controlled by Jollibee Stores. 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. 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. But, this is not the case in the Philippines where Jollibee has been the name for fast food for more than two decades. Jollibee doesn’t have a popular global name but in its home town it has four popular brands named- Jollibee, Delifrance, Greenwich Pizza and Chowking. In 1990’s JFC wanted to expand internationally by opening some of their stores in Asia and Middle East. 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. In June 2005, JFC had a total increase in their stores all over the world. It had 1200 stores out of which 1079 were in their home country and a large number in China because of Yonghe...
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...DR. Bievenido M. Flores Professor I. Introduction As the country's leading fast food chain, Jollibee has grown exponentially on all aspects on operation. From a handful of stores 32 years ago, Jollibee now boasts of more than 600 stores and over 50 international stores. Tony Tan Caktiong’s Jollibee has been one of the most admired, most copied, most innovative and most professionally-run companies here in the Philippines. It has been the number one fast food chain overtaking giants such as McDonalds and Kentucky Fried Chicken or KFC. How did a local jolly red bee knocked down multinational red-haired clown named Ronald? Let’s see another inspiring story of the founder. With its success, Jollibee franchise has now a tag price of P25+ Million (US$ 500,000+) II. Context Analysis 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...
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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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