Managing a Store At the store level, profitability in the fast food business depended on high customer traffic and tight operations management. Although based in the Philippines his entire career, Tingzon had spent much of this time helping foreign chains crack the Philippine market. 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. Cite View Details Educators Purchase. A Social Entrepreneur’s Moon Shot.

As operations stabilized and the store manager started to see patterns in sales and operational needs, FSMs allowed stores to report the same data weekly and provide a monthly summary. 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. The strains came from several things. Again opinion was divided between those favoring the expatriate-led strategy and those who felt it was time for Jollibee to shake its Philippine identity and target the mainstream market wherever it went. 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.

Business and Environment Business History Entrepreneurship.

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Soon after the first store opened, however, relations between Jollibee dorporation the local manager began to deteriorate. The international people also seemed to develop a superiority complex. Though it began expandion a family business, eventually, it went public in Matters grew worse throughout Based on a page questionnaire, a quick check took roughly two hours to complete and covered all of the areas that intensive ones did, although with less rigor and detail.

The Case Centre is dedicated to advancing the case method worldwide, sharing knowledge, wisdom and experience to inspire and transform business education across the globe. Could they provide the necessary support and control to operations located 12 hours by plane and eight time zones away?



In Brunei, the local investor was a silent partner. Supporting the Settlers Soon after signing his contract, Tingzon had learned of a year-old plan to open one Jollibee store per quarter in California starting in the first quarter of However, the area saw far fewer Filipinos than Central and the store would have to depend on locals.

When the data suggested problems, the FSM would contact the store manager, highlight the issue, and ask for an appropriate plan of action. At one point, they proposed running a store in the Philippines as a training facility, but we thought they also wanted to show us jolliber they could do it better than us.

jollibee foods corporation international expansion case study

A company that values family. He can bridge the gap and settle differences between these two groups. Expanding the Base fourth store in Hong Kong. With only a few weeks of experience in his expansoon company, Noli Tingzon knew that he would have to weigh these decisions carefully.

Jollibee Foods Corp. (A) International Expansion (HBS case) [General Management]_图文_百度文库

Jollibee Foods Term Paper. As it often did in other offshore activities, the International Division staff had to develop skills very different from intfrnational of their Jollibee colleagues working in the Philippines.

The case concludes as JMB contemplates taking his successful, fiods model to the United States. Tax ID No Nonetheless, Kitchner expanded rapidly. For comparison, in the Philippines, approximately 1, fast food outlets competed for the business of 75 million people.


In fact, the sales and net income growth rate was declining for the last 5 years. California ; Asia ; Philippines ; Hong Kong. Although sales boomed immediately after opening, low pedestrian traffic by the site eventually led to disappointing revenues.

jollibee foods corporation international expansion case study

While dase 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.

Food and Beverage Industry. Tingzon needs the support from the different departments in both the Domestic side and the International Division in order to succeed in the international arena.

jollibee foods corporation international expansion case study

But the Indonesian masses are not willing to spend as much on fast food as the Philippine working and lower-middle class consumers, and there were lots of cheap alternatives available. A Social Entrepreneur’s Moon Shot. The Tan family, however, retained the majority ownership and clearly controlled Jollibee.

Jollibee Foods Corporation (A): International Expansion

Jollibee ventured into overseas expansion attempts since but were mostly unsuccessful due to location and partner issues. Despite the fact that even unprofitable stores generated franchise fees calculated as a percentage of sales, TTC was uncomfortable: It sometimes felt more like struggling up an unconquered, hostile mountain.

Customers patronized chains because they knew, after eating at one restaurant in a chain, what they could expect at any other restaurant.