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Case Analysis

Rhaiza Tupas

on 20 September 2012

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Transcript of Jollibee

JOLLIBEE!! STRENGHTS Key Internal Strategic
Factors Understanding local tastes and quick WEAKNESS The name did not incorporate with its products. Key External Strategic Factors OPPORTUNITIES Unsaturated market Growing nuclear families More disposable income Growing urban lifestyle Confusing Logo (logo signified a toy chain or candy store) Less support of local R&D to the. international division Resources are constraints Competent/well-trained staff Having affordable prices like Jollimeal Can easily adjust to its environment Strong quality control Catering to customer needs THREATS Differences in culture of every nation Availability of healthier options like
ready-to-eat food Increasing consciousness about
healthy diet High cost in other nation (e.g. labor, rent) TOWS MATRIX 1.Understanding local tastes and quick catering to customer needs. INTERNAL STRENGTHS 5.Competent/well-trained staff. 4.Having affordable prices like Jollimeal. 3.Can easily adjust to its environment. 2.Strong quality control. 5+7= (cc) image by anemoneprojectors on Flickr TOWS MATRIX of
JOLLIBEE INTERNAL WEAKNESS 1.The name did not incorporate with its products. 4.Confusing Logo (logo signified a toy chain or candy store) 3.Less support of local R&D to the. international division 2.Resources are constraints. EXTERNAL OPPORTUNITIES 4.Unsaturated market. 3.More disposable income. 2.Growing urban lifestyle. 1.Growing nuclear families. EXTERNAL THREATS
4.Availability of healthier options like
ready-to-eat food. 1.Differences in culture of every nation. 2.High cost in other nation (e.g. labor, rent) 3.Increasing consciousness about healthy
diet. (SO Strategies) 1.Put up stores in Daly City California
(O1,O2,O3,S1,S2,S3,S4, S5)
3.Pioneer the fast food chain in Papua New Guinea.(O4, S1, S2, S3, S4, S5) 2.Expand stores in Hong Kong.
(O2, S1, S3, S2 S4, S5) 4. Adapting the latest technology in cooking processes. (T2, S1, S2, S3, S4) (ST Strategies) 1. Add a menu preferred by local nationals. (S1, S3, S4, T1, T3, T4) 2. Management contracts for the labor, rent with the host country. (T2, S2, S3. S5) 3. Target the families in advertising (T3, S2, S3, S4, S5). 3.Outsource products from local producers. (W2, O1, O2, O3, O4) (WO Strategies) 1.Advertise the product for global awareness in TV, internet. (W1, W4 O1, O2, O3, O4) 2.Improve the R & D in supporting international expansion. (W3, O1, O2, O3, O4) 3.Add a product line offering healthy diet. (T1, T4, W3, W4) (WT Strategies) 1.Discontinue operation of unprofitable store. (W2, T2) 2.Establish farms to produce their raw materials. (W2, T2) Alternative Courses of Action

1. Unlikely be able to support the critical
mass of 20 stores.
2. High support of local investor is uncertain.
1. Incur expensive labor and equipment.
2. Hard to manage because of the distance between California and Philippines.
3. The entry to the market is difficult, because it is the birthplace of the pioneers in fast food industry.
4. More investment in IT system 1. Staffing issues
2. Uncertainty involving the
local Chinese customer Advantages Advantanges Disadvantages EXPAND IN HONGKONG 1. Valuable learning opportunity.
2. Increase in sales. PUT UP STORES IN DALY, CALIFORNIA 1. Increase in revenue.
2. Increase in market share.
3. Build customer loyalty for expatriates.
4. Enrich the technological advances found in California that can be applied to other stores.
5. Having no major adjustments to its menu. Disadvantages PIONEER THE FAST FOOD CHAIN IN PAPUA NEW GUINEA 1. Increase sales.
2. Capture the market
3. Pioneer the fast food chain in PNG.
4. Set standards of fast food industry.
5. The risk of failure is lower. Advantages Disadvantages This is used to determine the relative attractiveness of feasible alternative courses of action. The criteria being used are based on the key factors that can affect alternatives both external and internal. The weights used are given by the researcher. This is based on the degree of effect towards the strategy. Rank from 1 through 5. 5 – is the highest and 1 – is the lowest. Quantitative Strategic Planning Matrix QSPM Recommended Strategy Given the four alternatives, Jollibee’s most viable option is to set up stores in Daly City, California provided that it is able to obtain a partner who can help it overcome the challenges of operating in the US, like in the supply of raw materials. Tingzon should follow through with the Manila-based businessmen if they are familiar with the fast food industry in the US in order to align with the fast food industry in the US; if not they will seek for the help of knowledgeable local investor. Moreover, the company must investment more in IT systems, which will permit communication from the headquarters in the Philippines in managing day-to-day operations. The JFC should seek to create two strategic business units (SBU) under the company brand: International and Domestic, in order to align the goals of various geographic divisions. This will permit the International Division to ensure greater coordination across IT activities, as well as pooling procurement purchases wherever geographically possible. Since both SBUs will be under the corporate umbrella, this should help to increase cooperation at a firm-wide level. Aspects also of an existing culture that are antagonistic to a proposed strategy should be identified to avoid loss of customer. Policies to Support the Strategy 1.Have a regular unannounced visit with Jollibee California to ensure quality control and also to avoid common failure on last international venture. 2.The stores must submit a daily Sales and Expenses Report. 3.The food quality must be the same with in the Philippines. 4.Must maintain healthy and professional relationship with the employees, as practiced in the Philippines. 5.The employees must be carefully selected and trained. 6.In term of management, the manager must be from JFC Philippines to ensure proper communication and to avoid conflict. 7.The stores must communicate regularly with the headquarters in the Philippines 8.The Filipino menu must be maintained; however foreign preferences must also be considered by developing menu that suits to the tastes of American. 9.The production lay-out designed must follow the design in the Philippines. 10.The location of the store must be in high-customer traffic. 1.The Jollibee Food Corporation should advertise the products for global awareness in TV, or internet to avoid miscomprehension of the logo to a candy shop.

2.The company has to improve the Research and Development in supporting international expansion.

3.The target markets are the expatriates and also the local consumers.

4.The company has to add also healthy product line offering healthy foods for health-conscious people.
Strategies to be Implemented
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