Consumers Bargaining Power- High. This paper explores the strategy of one of the biggest fast food companies: In the largest fast food company tried to enter the Philippines by spending large sums on opening six restaurants within two years and on promoting them. These factors could tarnish their image in the market. Due to limitations of the paper, it is only a fraction of possible explanations that have been highlighted and these revolve primarily around the importance of increasing the local engagement in the Hong Kong subsidiary, and increase the local innovation towards more local taste. With Kitchner the word strategic became a completely new meaning. The company had been taught an early lesson:
The international subsidiaries are supposed to maintain or impose standardized menus, recipes, advertising themes, and store designs. As a part of this they started opening outlets in every country they felt an opportunity. Functioning as an implementor has meant that the established Hong Kong stores have not been engaged in any knowledge creation, but simply followed instructions from the Filipino headquarters. We give our viewpoints as to which markets would be feasible for entry and on what scale. Accessed May 23, A clear communication should be given so that nobody feels disappointed or overlooked. He has tried to implement these changes for several of months but has not yet received a go-ahead from the headquarters.
Jollibee Case Analysis Essay
This points towards the subsidiaries in Hong Kong adapting the characteristic of an implementor, e. This smooth transition can be enabled by inter unit cooperation, decentralizing the organizational structure and following a geocentric approach. People were telling us not to go international until we had solved these two issues: For example, the menu offered in Hong Kong is almost the same as the Filipino one, knowledge of what to sell has simply been brought in from headquarter case page.
We have recommended the company to follow transnational strategy that would help them achieve an advantage over the competitors. This strategy failed as Filipino food was not perceived the same way in every country and the pressures for local adaptation increased.
He put his focus on resolving the managerial issues such as hiring local staff and menu variations. Are you ready to learn from your offshore affiliates? These conclusoin could tarnish their image in the market.
Their plan of entering a market with high Filipino population with less number of competitors, Daly City, could be advantageous for them. He decided to go about a variety of strategies to do so.
Jollibee case study
First Jollibee tried to enter the Papua New Guinea market by opening a couple of stores in coclusion stations of major petroleum retailer. They instead argue that for successful offshore business, one must understand how communication flows within the different sub-units of the casd.
From the above section we can conclude that there exists several challenges of how the subsidiary in Hong Kong has previously been structured, for example has one of the sub-franchisees tried to suggest changes to the menu. They need to resolve their manpower issues before opening another outlet to ensure that their brand name does not get spoiled because the managers had to pay more attention to the quality issues in the dearth of labour which of the lack of quality which left them less time to concentrate on formulating short term.
Jollibee Case Analysis Essay Example | Graduateway
The industry is faced by both international players who concpusion huge finances The industry faces low margins and experiences profits on the basis of the economies of scale.
Therefore three new stores had been developed by better lightning and high quality furniture. The firm puts the customers as the base of all their operations.
After this opening the following advertisement has been placed in the newspaper: Employees have the art of listening and communicating everything that the customers want.
Furthermore the implementation of the international menu was not as successful as expected case p. An implementor is characterized by a high degree of knowledge inflow from the headquarters but with a low degree of knowledge outflow; hence mainly applying the strategy used in the parent company without any local adaption Gupta and Govindarajan The first change driver that brought Jollibee Foods Corporation into proper incorporation was the realization that prices of ice cream would double due to the oil crisis of Initially the concentration was on targeting the Filipinos and the hope was to expand to all customers throughout the U.
As an implementor has the possibility for autonomous initiative been low while it as a local innovator exists space to adapt to the local environment, e.
Jollibee Foods Corporation A: Feeling of one unit and one family is considered to be their priority as they expanded immensely into various countries and regions. This accounted for a very small part of their revenue but this was their stepping stone towards localization.
Jollibee Foods Construction and its strategic control over its subsidiary in Hong-Kong. The expansion continued by sstudy of Greenwhich Pizza Corporation and a formation of a joint venture with Deli France. Cooperation reduced to a minimum so that cnoclusion International Division felt that they did not get supported any more.
Jollibee meets several tasks in their offshoring project, but due to space limitation there will in conxlusion paper only be focus on two selected challenges, the challenges of adjusting to Chinese taste and their management structure. He thought it would be easier to enter these markets by focusing on the expatriates but eventually faced the problem that not all overseas Filipinos were customers due to specific circumstances within the countries.
Eric from Graduateway Hi there, would you like to get an essay? How About Make It Original? Functioning as an implementor has meant that the established Hong Jolliber stores have not been engaged in any knowledge creation, but simply followed instructions from the Filipino headquarters.
Consistency and reliability is quite important to promote an image of one unit.