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Jollibee Business Case Analysis

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12 views7 pages

Jollibee Business Case Analysis

Uploaded by

goldminegrainsacc
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Universidad de Manila

City of Manila

WRITTEN CASE ANALYSIS

Presented to the Faculty of the


Institute of Graduate & Professional Studies (IGPS)

In partial fulfilment of the requirements in


MASTER IN BUSINESS ADMINISTRATION (MBA)

Submitted by:

CHARLENE R. TOLENTINO

April 2022
Universidad de Manila
City of Manila

APPROVAL SHEET
This Written Case Analysis
Entitled

“Jollibee Business Case”

prepared and submitted by:


CHARLENE R. TOLENTINO

in partial fulfillment of the course requirements for the degree


MASTER IN BUSINESS ADMINISTRATION (MBA)
of the Institute of Graduate & Professional Studies (IGPS) has been
examined for revisions and approved for printing.

Panel of Evaluators

Dr. MA. AURORA T. CADAY


Panel Chair

April , 2022
Date

Dr. CECILE P. SANTIAGO Prof. JAYME C. IGNACIO


Panel Member Panel Member

April , 2022 April , 2022


Date Date
I. Brief Background of the Case
Jollibee Food Corporation is a Filipino fast food retail chain that was started in
1975 and from then on, the company was on an expansion trend. It capitalized
the changes in the political scenario in the country and thrived the competition
from global Players like McDonalds. In 1993 it went public and the firm has been
pursuing an aggressive global expansion strategy most of which backfired due to
the problems in strategies followed by the company. The newly appointed
international wing chief of the firm is facing the challenge of making a prudent
decision regarding three new opportunities, expansion to Papua New Guinea,
Hongkong and California. However, the company has been functioning like two
parallel organizations with no cooperation and coordination between the
international wing and the domestic wing which has proved detrimental in various
issues that the firm has been facing.

II. Viewpoint
International wing chief.

III. Statement of the Problem


How will Jollibee Food Corporation improve its poor expansion approach?

IV. Objective of the Analysis


To implement appropriate business action to the expansion opportunity in Papua
New Guinea, Hongkong and California within two years.

V. Factors Affecting the Organization Being Analyzed

SWOT Analysis

 Strengths
1. It capitalized changes in the political scenario in the country.
2. Jollibee Food Corporation thrived the competition from global players
like McDonalds.
3. The company was on expansion trend.

 Weaknesses
1. Lack of long-term vision and overall integration.
2. Functioning like two parallel organizations with no cooperation and
coordination between international wing and domestic wing.
3. Present strategy of the firm is falling in grey area between international
and localization strategy.

 Opportunities
1. Franchising
2. Joint Venture
 Threats
1. Highly competitive market
2. Differences in customers taste preference
3. The threat of substitute products

VI. Alternative Courses of Actions (ACAs)

1. To adopt international strategy for the expansion.


International strategy is a strategy that focuses on a single point of
operation while exporting products and services around the world.
Operating with a central or head office in your home market and exporting
your products to the target market.

Advantages:
1.It is quick way to test out global appeal of the product without making
significant investment in infrastructure or staffing in other markets.
2. Consolidation of management processes and lower costs.
3. Simplification of product portfolio based on what performs well globally.

Disadvantages:
1.Problem in coordination of supply chains and customers service.
2. With an export-driven strategy, paying higher taxes and tariffs every
time of export

2. To adopt multi-domestic strategy for the expansion.


Multi-domestic strategy is a strategy that change their product based on
each market they enter. Highly specialized, localized product directly
matches customer tastes and preferences, with employees on the ground
in that market that understand the cultural nuances.

Advantages:
1. Control portfolio of local subsidiaries that you can scale up and down
based on performance.
2. Easily access local competitive advantages, such as labor, shipping
lanes, and natural resources.
3. Gain a stronger foothold in a local market more quickly

Disadvantages:
1. Expensive to execute
2. It takes time and money to research new markets and gain insights into
the local needs and wants of those consumer.
3. To adopt global strategy for the expansion.
Global strategy focuses on standardization as much as possible, including
colors, messaging, products and operations. That means having one
brand, one suite of products, and one message from a central
headquarters.

Advantages:
1. Gives instantly recognizable global brand with a step-by-step path
toward global market penetration.
2. Harness economies of scale with efficient processes and operations
3. Streamline product development with one product line and minimal
changes by market

Disadvantage:
1. Challenges of foreign culture.

4. To adopt transnational strategy for the expansion.


Transnational strategy focuses on coordinating its cooperation and
interdependence to the headquarters and transnational situated
subsidiaries or retail openings. Firm tries to balance the desire for lower
costs and efficiency with the need to adjust to local preferences within
various countries.

Advantages:
1. It can effectively reap the benefits of cost savings as well as local
adaptation and thereby carving a global image for the firm that has
impeccable operations, financials and marketing strategy.
2. Create a standardized brand that’s immediately recognizable but
accommodate differences in market preferences.
3. Centralized and streamline operations, getting the advantage from
economies of scale
4. Be able to flex between a high-level strategic overview of investments
without losing customer-centricity with local markets.

Disadvantage:
1. Managing the entire global presence from one central offices is difficult
and takes a considerable amount of careful oversight.

VII. Recommendation

Based on the Alternative Courses of Actions, ACA 4 should be recommended.


Upon expanding to foreign countries, JFC must first know and understand
cultural differences and develop appropriate means of addressing these
differences. Adopting transnational strategy, JFC can simultaneously enjoy
effective globalization efficiency and responding to local needs through the
interdependent network of worldwide operations.

Decision Matrix

ACA 1 ACA 2 ACA 3 ACA 4


(international) (Multi- (Global) (Transnational)
domestic)
Effectiveness 1 3 3 3
Cost-efficient 3 1 3 3
Timeliness 2 3 2 3
Total 6 7 8 9

Legend:
3 – better
2 - best
1 - good

VIII. Plans of Action in Implementing the Recommended Alternative

Activities Person Time Frame Budget


Responsible
1. Coordination International wing Twice a month in P0.00
meeting chief a year
2.Analyzing the Marketing Chief 6 months P100,000.00
markets
3.Identify the International wing 6 months P 0.00
company’s chief
resources for
international
expansion
4.Setting International wing 1 month P 0.00
international chief
objectives
5. Deciding the Chief Executive 3 months P 0.00
market entry and Officer
mode
6. Implementation Chief Executive 1-2 years P 17.0 billion
of the expansion to Officer
the chosen
opportunity (Papua
New Guinea,
Hongkong or
California)
7.Monitoring and International wing Monthly P 0.00
evaluation chief

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