Case Study: Jollibee Foods Corporation Essay

Problem StatementThe newly appointed head of International division Mr Manolo .P. Tingzon is pondering into ternion key opportunities that the firm Jollibee Food Corporation facing whether to enter the small PNG(Papua New Guinea) grocery store where it will be a first mover, to expand into Hong Kong where is an alert base but the local deal doesnt standardized Jollibees Philippines-based fast food model, and a proposal to share the huge benefit in U.S. market by establishing an operation in California.Objectives1. Keep the certain business model franchising2. fight backing food marketing investment in building image (symbolization)3. Local market penetration with strong local brands4. Highly customer responsiveness5. Maintain customer value and loyalty6. Establishing the commercial spots in foreign countriesAlternatives1. food market entry strategies such as Franchising, Alliances, Joint ventures, Wholly owned subsidiaries 2. Substantive appendage strategies Horizontal and vertical integration strategies 3. Limited growth strategies Do nothing, Market penetration strategies 4. downsizing strategies Retrenchment, Turnaround strategiesConsequences of AlternativesWhen analyzing the case study it is clear that Jollibee Inc. has higher pressure to respond to local wishes in Philippines due to the entry of global giants like McDonalds. This is due to the fact that Jollibee had a strong presence in Philippines but at the same it should tackle the adaptation pressure from McDonalds. This is also supported by the fact that Jollibee was franchising their brand to foreign countries on very strict terms which do not allow any changes to the menu.And we can use the goals including Keep the original business model franchising, Maintaining Marketing investment in building image (symbolization), Local market penetration with strong local brands, Highly customer responsiveness, Maintain customer value and loyalty and Establishing the commercial spots in foreign coun tries with the four strategy (Market entry strategies, Substantive growth strategies, Limited growth strategies and Retrenchment strategies to established the table 1.Tradeoffs/ Analysis of AlternativesTingzons decision can based on the table 2 shows below, it can be seen clearly that the Substantive growth strategies (Horizontal and vertical integration strategies) has the highly scores. Because Jollibee entering the markets without any clear cut idea, since Mr. Kitchner strongly believe in gaining the first mover advantage, Jollibee is expanding into the markets where the competitors little are no presence, to plant the flag without any long term perspectives. The companys strategy can be more identified with the world(prenominal) strategy where the locale of power lies with the parent company in the Philippines. With much of happening in the international arena too. After Kitchners got hired, he encouraged localization by separating international business completely from the do mestic ones.RecommendationsPapua New GuineaAs evident from the data given in the case, it is quite evident that the company is having immense opportunities in Papua New Guinea. As the market there is untapped and the only competitor there is an unorganized and unprofessional local company, Jollibee can literally get a first mover advantage, therefore JFC must choose the Horizontal and vertical integration strategy. Hong KongCurrently all the three stores established in Hong Kong are facing lot of management issues as mentioned in the problem statement hence it is required that first this management issues must be sorted out instead than putting additional resources in expansion plans CaliforniaThe company has to start with focusing on both the Filipinos as well as local people and design the menu that would help maintaining the brand identity along with catering to the local interests. To put it simple and straight, Company needs to adapt a trans-national strategy.