The document provides an overview of Jollibee Food Corporation (JFC), the largest fast food chain in the Philippines. It discusses how JFC was founded in 1978 and has since expanded to include multiple brands like Greenwich Pizza and Chowking. The document analyzes JFC's success in the Philippines, attributed to its understanding of local tastes, operational efficiency, and customer service. It evaluates JFC's mixed performance overseas and the challenges of transferring its core competencies abroad. Finally, it outlines JFC's expansion plans to continue focusing on the Philippines market, expand in China, and grow selectively in other overseas markets.
Jollibee is a Filipino-owned company that was founded by Tony Tan Caktiong and his family. They begin as an Ice Cream Parlor which later grew into an emerging global brand.
Jollibee Food Corporation-An International Expansion Case StudyKartik Mehta
A case study analysis, recommendations and solutions of the given questions from Jollibee Food Corporation on Global Expansion strategies.
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.
Jollibee is a Filipino-owned company that was founded by Tony Tan Caktiong and his family. They begin as an Ice Cream Parlor which later grew into an emerging global brand.
Jollibee Food Corporation-An International Expansion Case StudyKartik Mehta
A case study analysis, recommendations and solutions of the given questions from Jollibee Food Corporation on Global Expansion strategies.
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.
This is the product proposal paper prepared by the students of Capitol University major in Marketing Management and Human Resource Management taking up Introduction to Entrepreneurship Feasibility Study paper.
University of the Philippines (UP) SWOT AnalysisLilliene Alleje
Our activity in Organization & Management is doing a SWOT analysis about Philippine universities and we chose UP. Should you not agree with our opinions, bear in mind that this is just our opinions about UP. Thank you
This is the product proposal paper prepared by the students of Capitol University major in Marketing Management and Human Resource Management taking up Introduction to Entrepreneurship Feasibility Study paper.
University of the Philippines (UP) SWOT AnalysisLilliene Alleje
Our activity in Organization & Management is doing a SWOT analysis about Philippine universities and we chose UP. Should you not agree with our opinions, bear in mind that this is just our opinions about UP. Thank you
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2. Jollibee’s Introduction
In1975 Tony Tan and his brothers opened two
Ice cream parlors in Manila, Philippines
Inthe same year they expanded their menu
and began offering quick meals
Soon they realized that their revenue is more
from the side orders
In 1978, Jollibee Food Corporation(JFC) is
formed
3. JFC’s in Philippines
High quality and reasonably priced
Tailored menu specifically for Filipino's
Strong understanding of Filipino’s taste and
preference
Highly diverse variety of offerings
Benchmarking of McDonalds
4. Milestones in Journey of JFC
• First Philippine Food chain to cross
1989 “1 Billion Peso” mark
• JFC went to Public on Philippine Stock
1993 Exchange
• Purchased Greenwich Pizza
1994
5. • Acquired right to operate Philippine’s
Franchise of Delifrance
1995
• Bought Chowking Foods Corporation
2000
• JFC topped the “Asia’s Most Admired
Company” survey
2004
7. Financial Data of JFC, 1998-2004
2004 2003 2002 2001 2000 1999 1998
Sales 35.5 28.9 26,8 24.1 20.3 18.1 16.7
Gross 26.2 21.6 20.3 18.8 15.7 14.1 12.9
Revenue
Net Income 1.6 1.3 1.0 0.5 0.9 0.6 0.8
Employees 26.5 21.6 22.0 21.8 20.6 14.2 13.9
(‘000)
All financial data in billion of pesos
8. Secrets of Success of JFC in Terms
of Marketing, Operations and HR
The acronym FSC represented its commitment
towards these three areas:
Every Food (F) item served to the public must
meet the company’s excellent standards or it will
not be served at all, Service (S) must be fast and
courteous; and Cleanliness (C) from sidewalk to
kitchen, from uniforms to utensils, must be
maintained at all times.
9. Marketing Strategies
Closer to Filipino families
Unique Filipino taste
Homely environment
In-store play activities
Advertising strategy that was deeply rooted in
traditional values
10. Operations
Use of IT in its
operations
Decentralizing the
organization
Each year some stores
are closed
11. Human Resource Management
Hire right candidates to manage its operations
and strategy planning
Training programs for the employees to explain
them- How to create a friendly environment in
store?
12. Strategy Of Adding New Brands Or
Diluting The Strength Of Original Brand
JOLLIBEE
GREENWICH
PIZZA(1994)
GREENWICH
PIZZA
DELIFRANCE
(1995)
DELIFRANCE
JOLLIBEE
DELIFRANCE
(1995)
DELIFRANCE
13. 2004 2000
NO.OF %INCREASE NO.OF
STORES STORES
JOLLIBEE 478 27.8% 374
GREENWIC 226 17.1% 193
H
CHOWKIN 276 68.3% 164
G
DELIFRANC 28 115.6% 13
E
14. Each brand is marketed independently but there must not be any
duplication of original Jollibee concept.
MAIN RISK : Management time would be diverted to the other three
brands and there would be insufficient time to expand Jollibee.
15. Evaluate JFC’s performance
overseas.
Early1990s Jollibee restaurants were operating
in Hong Kong, Brunei, Saipan, and Guam,
Vietnam, Indonesia, Dubai, and Kuwait
1998 entered one of the most demanding fast-
food markets in the world, the United States. (2
million Filipino immigrants).
In the United States, by late 2004, six years after its
entry into this market, JFC only had seventeen
stores—nine Jollibee and eight Chow King.
16. Marketing effectiveness has been diluted in
the very competitive California environment
by the need to promote three separate
brands, each representing a different ethnic
food category: Filipino, Chinese, and
Japanese.
Management time and resources have been
wasted on the purchase of a Japanese food
franchise (renamed Tomi’s Teriyaki), a food
category in which JFC had no prior
experience
17. Evaluate JFC’s performance
overseas.
At the end of 2003, prior to the purchase of
Yonghe King in 2004, JFC had only thirty-
three overseas stores, an increase of only
six from the twenty-seven it had at the end
of 1999.
18. To what extent can the company
transfer its core competency to its
overseas operations?
19. JFC’s key success factors in the
Philippines
(1)its understanding of local tastes
and skills in catering to the needs of
a specific niche market,
(2) its operational efficiency in its
commissaries and use of IT,
(3) its ability to deliver consistently
high levels of customer service
(4)its skills in site selection.
large number of stores in the Philippines advantage of
economies of scale in buying food and other supplies managing the
logistics of delivering supplies to individual stores
20. Jollibee’s key Transferability to Actions required to
success factors overseas markets allow a successful
(KSF) transfer of KSF
Niche Market Likely Introduce the more
Highly localized menu. - Overseas markets popular Jollibee meals
Food variety that that are chosen are that are found in the
Philippines.
targets the Filipino locations with high
palate. concentrations of - Slowly bring in the
Filipinos. other varieties.
-Ingredients used must
be identical to those used
in the Philippines to
ensure consistent quality
and taste.
- Use a marketing
strategy that leverages on
Jollibee’s brand equity.
21. Jollibee’s key Transferability to Actions required to
success factors (KSF) overseas markets allow a successful
transfer of KSF
Operations and IT Likely Use the blueprint of
the commissary in the
State-of-the-art - Replicate the same Philippines.
automation of kind of technology and
commissary. operating efficiency. - High initial
investment to bring in
Use of IT to speed up state-of-the-art
operations efficiency automation that will
and study consumer help generate the
trends. volume and efficiency
required by the
overseas branch.
22. Jollibee’s key success Transferability to Actions required to
factors (KSF) overseas markets allow a successful
transfer of KSF
Customer Service Likely -Jollibee should seek to
understand the
Fantastic customer The mission statement expectations of local
service: and strong management customers and adapt its
beliefs in recognizing the performance standards,
importance of its front and so on accordingly.
- Service orientation
line staff in profit
pervasive in many of generation. - Jollibee should bring in
its activities. the best crew from its
Philippines’s branches to
- Recruitment, train the local hires in
selection, and training Jollibee technology.
(cycle for success) of
- Important that Jollibee
staff.
has a management team
in the overseas market
- Empowerment and that shares the same zeal
motivation of staff. and ideals as those in the
Philippines headquarters.
23. Jollibee’s key Transferability to Actions required to
success factors (KSF) overseas markets allow a successful
transfer of KSF
Location Moderate Jollibee should
Good, high traffic and continue to expand to
convenient locations. -Jollibee may be a late areas with high
comer in the fast-food Filipino concentration
Communities are industry of the and gain a foothold in
populated largely with overseas market. such areas first.
Filipinos.
- Launch pad strategy
of setting up outlets in
places with high
Filipino concentration
may help offset the
late comer
disadvantage.
24. One possible conclusion that may be drawn
from JFC’s international experience::
Only limited demand overseas for the Filipino-
style fast food served by Jollibee.
JFC’s entry (or rather, re-entry) into China
through purchase of an 85 percent interest in the
Shanghai-based Yonghe King chain, which serves
Chinese-style fast food in ten cities, plays to JFC’s
capabilities in taking over ownership and
management of an already successful fast-food
chain and strengthening its marketing and
operational capabilities.
26. Continue to be on the
Philippines market
89% of all stores are
located in Philippines.
Rapidgrowth is
continuing.
Most of this growth
seems to be accounted
for by franchised
outlets as opposed to
company-owned ones.
27. Focus on China
The second most important area of
focus is China
Manage the growth of the eighty-nine-
store of Yonghe King chain.
Transfer relevant JFC operational and
marketing expertise to enhance both
YK’s appeal to consumers and its
productivity
China’s rapid economic development
Success of both the KFC and
McDonald’s