Particularly among the U. Over two days, the FSM evaluated every aspect of operations in detail, including product quality and preparation taste, temperature, freshness, availability, and appearance , cleanliness, restaurant appearance, service speed, and friendliness. They also found they could adapt the labor-intensive Philippine operating methods by developing different equipment and cooking processes more in keeping with a high labor cost environment. International Expansion by Christopher A. This not only required standardization of the menu, raw material quality, and food preparation, but also the assurance of uniform standards of cleanliness and service. Not all overseas Filipinos were potential customers, it seemed. International also redesigned the Jollibee logo.
Opening an outlet required large investments in equipment and store fittings, and keeping it open imposed high fixed costs for rent, utilities, and labor. Apparently, Tingzon has to deal with the international expansion problems passed on by his predecessor. Enter the email address you signed up with and we’ll email you a reset link. Expanding the Base fourth store in Hong Kong. Vice President Franchising Remedios V. Managing a Store At the store level, profitability in the fast food business depended on high customer traffic and tight operations management.
As a compromise, International developed a spicy sauce that customers could add to the standard Jollibee chicken. These were the key contacts between the company and fokds franchisees, and Kitchner was rapidly building a substantial support group in Manila to provide them with the resources and expertise they needed to start up and manage an offshore franchise. Tan family members studt several key positions particularly in the vital operations functions, but brought in professional managers to supplement their expertise.
Many franchisees were also members or friends of the Tan family.
Behind all that fun and friendly environment that the customer experiences is a well oiled machine that keeps close tabs on our day-to-day operations. International also redesigned the Jollibee logo.
The kitchen followed a standard Jollibee design that ensured proper production flow, but Kitchner encouraged FSMs to adapt the counter and dining areas to the demands of the space and the preferences of the franchisee.
They also found they could adapt the labor-intensive Philippine operating methods by developing different equipment and cooking processes more in keeping with a high labor cost environment.
Jollibee Foods Corp. (A) International Expansion (HBS case) [General Management]_图文_百度文库
Supporting the Settlers Soon after signing his contract, Tingzon had learned of a year-old plan to open one Jollibee store per quarter in California starting in the first quarter of Although two more stores in Central had attracted joklibee Filipinos, they both relied extensively on Chinese customers and generated sales of only about one-third of the first outlet. Jollibee Foods Corporation A and B.
For approximately two months after opening, FSMs required stores in their jurisdictions to jollibed them every day their figures for sales by product, customer traffic, and average ticket. Operational Management Market ocrporation Once Jollibee had decided to enter a new market, Tony Kitchner negotiated the franchise agreement, often with an investment by the parent company, to create a partnership with the franchisee.
There also was some jealousy on a personal level because the people recruited were immediately promoted to the stydy level, with better pay and benefits. While volume was high on weekends, when the Filipinos came to Central to socialize, it fell off during the week, when business was primarily from local office workers.
Despite the fact that even unprofitable stores generated franchise fees calculated as a percentage of sales, TTC was uncomfortable: Comparison of the years shows that there was an improvement from to ; apparently, it was decreasing in expansiin subsequent years. We decided that we needed to reposition ourselves to target a more upmarket clientele.
(DOC) JOLLIBEE FOODS CORPORATION: INTERNATIONAL EXPANSION A CASE STUDY | nes san –
He described a country of five million people served by only one poorly managed, 3-store fast-food chain, that had recently broken ties with its Australian chicken restaurant franchise.
The International Division was seen by their domestic counterparts as lavish spenders and unorthodox yet inexperienced newcomers. The international people also seemed to develop a superiority complex. Although increased menu diversity almost always came at the cost of some operating efficiency and, by implication, complicated the task of store level operating controlKitchner was convinced that such concessions to local tastes were necessary.
Jollibee Foods Corporation (A): International Expansion
Opening an outlet required large investments in equipment and store fittings, and keeping it open imposed high fixed costs for rent, utilities, and labor. The International Division also added idiosyncratic items to menus, such as dried fish, a Malaysian favorite.
With more than a million immigrants from the Philippines living in California, most relatively affluent, ibternational state had one of the highest concentrations of Filipino expatriates in the world.
Stury a brief experience with a food packaging company, in he took on the challenge to launch Texas Chicken, another U.
A New International Era: He has the ability to listen and weigh things between the Domestic and the International Division issues. Cite View Details Educators Purchase.
Company History Started in as an ice cream parlor owned and run by the Chinese-Filipino Tan family, Jollibee had diversified into sandwiches after jpllibee President Tony Tan Caktiong better known as TTC realized that events triggered by the oil crisis would double the price of ice cream.
Customers patronized chains because they knew, after eating at one restaurant in a chain, what they could expect at any other restaurant. Nonetheless, Kitchner expanded rapidly. In fact, the sales and net income growth rate was declining for the last 5 years.
And the decisions he made on the three entry options would have a significant impact on the strategic direction his international division took and on the organizational capabilities it needed to get there.
International Expansion returned to the country, encouraging foreign companies to reinvest. Expanding the Base fourth store in Hong Kong.
For example, the marketing staff tried to limit their franchise support role to creating initial marketing plans for new openings and reviewing new store plans.