JOLLIBEE FOODS CORPORATION INTERNATIONAL EXPANSION CASE STUDY
Could they provide the necessary support and control to operations located 12 hours by plane and eight time zones away? HBS cases are developed solely as the basis for class discussion. Jollibee will continue to find ways to improve the quality of food and service it provides in order to enhance customer satisfaction and to do better than the competitors. California ; Asia ; Philippines ; Hong Kong. Looking for a new market to test this concept, he focused on the concentrations of Filipino guest-workers in the Middle East. Yet even an excellent location could not make a store viable in the absence of good operations management, the critical ingredient in reducing waste, ensuring quality service and increasing staff productivity. 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.
This was typically a rice-based meal with a topping that could vary by country–in Hong Kong, for example, the rice was covered with hot and sour chicken, while in Vietnam it was chicken curry. A New International Era: They included positioning and communications strategies and were based on their advance consumer surveys, aggregate market data, and analysis of major competitors. 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. Managing a Store At the store level, profitability in the fast food business depended on high customer traffic and tight operations management. The expectation was that by expanding the number of stores, the franchise could build brand awareness which in turn would positively impact sales.
Locations with Jollibee outlets are underlined.
Such expansion created the critical mass needed to achieve economies of scale in both advertising fooda purchasing. The International Division was seen by their domestic counterparts as lavish spenders and unorthodox yet inexperienced newcomers. When the data suggested problems, the FSM would contact the store manager, highlight the issue, and ask for an appropriate plan of action.
Jollibee pressed ahead, broadening its core menu with taste-tested offerings of chicken, spaghetti and a unique peach-mango dessert pie, all developed to local consumer tastes. International Expansion However, the domestic side viewed things differently.
Exhibit 5 shows the locations of Jollibee International stores as of mid So we spoke to TTC, because Kitchner reported to him. It started when International tried to recruit people directly from the Philippine side, without consulting with their superiors.
Managing a Store At the store level, profitability in the fast food business depended on high customer traffic and tight operations management. While most of his family and other executives were caught up in the thriving Philippine business, TTC was curious to see how Jollibee would fare abroad.
Over time, conflict arose over day-to-day management issues between the Jollibee operations staff assigned to expansoon local oversight and the Taiwanese partner. In earlyhis Chinese managers had suggested serving tea the Hong Kong way— using tea dust powdered tea leaves rather than tea bags and adding evaporated milk.
The FSM was responsible for engaging local architects to plan the store. View our pricing guide or login to see prices. Expansuon manual for intensive checks was several inches thick. Joloibee the company stores were established, they hoped to franchise in California and beyond in The case illustrates the strategic and organizational pressures that result from facing numerous unanticipated pressures in a company that lacks the resources, capabilities, and management experience to deal with them.
Exhibit 1 shows growth in sales and outlets. About a month before the opening, the FSM hired a project manager, typically a native of the new market who normally would go on to manage the first store. He has built his career helping foreign fast food chains to break in the Philippine market. Could they provide the necessary support and control to operations located 12 hours by plane and eight time zones away?
More than six months later, he had still not received a go-ahead.
Jollibee Foods Corporation (A): International Expansion
The fact is, the Philippine market is not the same with other foreign markets because every market has its own attributes such as brand perception and taste preference.
While there was no controversy about reformulating hamburgers for Muslim countries to eliminate traces of pork, for example, adding new products or changing existing ones led to major arguments. This was typically a rice-based meal with a topping that could vary by country–in Hong Kong, for example, the rice was covered with hot and sour chicken, while in Vietnam it was inhernational curry.
Storming into the U. International Expansion We saw that in Brunei, where we were the pioneers in fast food, we were able to set the pace and standards. Go sthdy advanced search. Not all overseas Filipinos were potential customers, it seemed. For example, Visco argued that establishing a intefnational in each market before competitors conferred important first-mover advantages in setting customer expectations, influencing tastes and building brand.
Jollibee Foods Corp. (A) International Expansion (HBS case) [General Management]_图文_百度文库
Initially, the operation struggled, facing competition from street vendors and cheap local fast food chains.