JOLLIBEE FOODS CORPORATION INTERNATIONAL EXPANSION CASE STUDY

It launches an innovative product a specialized surgical robot in an unfamiliar market segment spinal surgery and decides to enter the unfamiliar, distant U. California ; Asia ; Philippines ; Hong Kong. Riding a wave of national pride,. Sometimes the franchisee had been chosen partly for access to particularly good sites. We preferred to go slower, making sure that each store was profitable so that it would generate money for the franchisee, as well as for us. In early , his Chinese managers had suggested serving tea the Hong Kong way— using tea dust powdered tea leaves rather than tea bags and adding evaporated milk.

Fast food executives generally believed that chain-wide consistency and reliability was a key driver of success. For approximately two months after opening, FSMs required stores in their jurisdictions to fax them every day their figures for sales by product, customer traffic, and average ticket. Exhibit 2 shows a organization chart. The flag was being planted. Because most of his management team was more interested in the fast-growing domestic side of the business, in January , he decided to hire an experienced outsider as Vice President for International Operations. View our pricing guide or login to see prices.

Once the franchisee had negotiated the lease or purchase, the project manager began recruiting local store managers.

jollibee foods corporation international expansion case study

Bartlett Describes the entrepreneurial leadership of Jack Manning Bancroft JMBa young Indigenous Australian university student who created the Australian Indigenous Mentoring Experience AIMEa nonprofit organization he formed to respond to the problem of Indigenous high school students completing high school at less than half the rate of non-Indigenous students.

Consequently, most major fast food chains pushed their international subsidiaries to maintain or impose standardized menus, recipes, advertising themes, and store designs.

Jollibee Foods Corporation (A): International Expansion

Furthermore, he emphasized that he was willing to build more stores if necessary and would put up all the capital so that Jollibee would risk no equity in the venture. Who do you trust?

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Case6 Jollibee Foods C International Expansion Once architectural and engineering plans were approved, construction began.

Fast food executives generally believed that chain-wide consistency and reliability was a key driver of success. Furthermore, the AIME students were completing school and going on to university at the same rate as non-Indigenous students. FSMs used this information not only to project and track royalty income for corporate purposes, but also to identify ways they could support the local franchisee.

jollibee foods corporation international expansion case study

They are willing to transfer their management expertise to them in order to facilitate new outlets in becoming self-sufficient and profitable. On the contrary, his new position in JFC requires him to do the other way — to crack offshore markets which he may not be very familiar with.

Since other menu items were seldom removed, these additions generally increased the size of menus abroad.

jollibee foods corporation international expansion case study

So we spoke to TTC, because Kitchner reported to him. In choosing a site, attention had to be paid not only to the potential of a city or neighborhood but also interrnational the traffic patterns and competition on particular streets or even blocks. The flag was being planted. Bartlett Supplements the A case.

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InJollibee revoked the franchise agreement and shut down the Singapore store. View our pricing guide or login to see prices. As it often did in other offshore activities, the International Division staff had to develop skills very different from stuy of their Jollibee colleagues working in the Philippines.

Working with an studu architect, a five-person panel from the International Division developed three new store decors, with better lighting and higher quality furniture.

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TTC summed up the lessons Jollibee had learned from its first international ventures: One problem was that, despite strenuous efforts, Jollibee had been unable to hire many local Chinese as crew members. Jollibee ventured into overseas expansion attempts since but were mostly unsuccessful due to location and partner issues. In corportaion, the sales and net income growth rate was declining for the caase 5 years.

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This open partnership fit with TTC’s view of franchise relations. Customizing for local tastes While such changes provoked grumbling from many in the large domestic business who saw the upstart international group as newcomers fiddling with proven concepts, nothing triggered more controversy than the experiments with menu items.

In earlyhis Chinese managers had suggested serving tea the Hong Kong way— using tea dust powdered tea leaves rather than tea bags and adding expandion milk. Customers patronized chains because they knew, after eating at one restaurant in a chain, what they could expect at any other restaurant.

When corporate inspectors visited to check quality, cleanliness, jolliebe efficiency in operations, the franchisee would not let them into his offices to verify the local records. Efficient use of their time— preparing raw materials and ingredients in advance, for example—not only enabled faster service, but could also reduce the number of crew members needed.

For example, rather than preparing new advertising materials for each new promotion as internatonal did in the Philippines, the international marketing group created a library of promotional photographs of each food product that could be assembled, in-house, into collages illustrating new promotions e. It is not easy to roods quality food and service consistently and efficiently.

Nonetheless, Kitchner expanded rapidly. It sometimes felt more like struggling up an unconquered, hostile mountain. Log In Sign Up. All fields Reference no.