Problems Encountered:

During Kitchners time, a conflict arose between the international and domestic
teams, because alterations in the menu were served internationally. R
Effect of McDos entry in the PH

Under Kitchner:
Beach head strategy Target expats
Blue ocean strategy Little to no presence of competitors
Renovate store design
Redesign the store logo
Adaptive caters to the flavor of the country
Under Tingzon:
Improving the quality in certain regions
Continue blue ocean
Setting the whole region as the market

Expansion:
SG
Taiwan
Brunei
Indonesia
UAE
Kuwait
Saudi Arabia
Malaysia
Hong Kong
Vietnam
PESTLE for each country they pursued at that specific time
Politico-Legal
Different laws and regulations for each country
Labor law
Business requirements
Economics
Economic crisis in the country

Now hes pushing an ambitious international expansion. His vision is clear: He

wants to become a global player, with a 50-50 split between domestic and
international sales by 2020. After a false start or two, the companys 541 overseas
outletsup from 326 at the end of 2009now contribute 20% to revenue. Its a
challenge to reach 50% because the Philippines is growing fast so the outside has
to grow much faster, he says in an interview in his Manila office.
So Tan, who turned 60 last month, is not only adding outlets in the U.S. and
other places where large parts of the Filipino diaspora have settled. Hes also
buying local chains in huge markets such as China and Vietnam that have few
Filipinos. Last year Jollibee was the worlds fifth-fastest-growing restaurant
company outside the U.S. in terms of sales, according to Euromonitor
International.

The Key Issue

After reading the case study written on Jollibee Foods Corporation, it is obvious that
the company is facing difficulties with regard to international expansion. There are
several strategies used in the past but success seems to be out of the companys
reach. The company also has limited resources that makes international business
ventures a big gambling game. The combination of scarce resources and risky tight
competition in the international scene made it more difficult for the international
and overseas managers to make decisions that would benefit and gain the
agreement of the international and domestic partners.
Most of the disagreements from the Philippines and international counterparts rose
because of a) the stringent rules offered by the need to standardize the operations
of the fast food chains, regardless of whether it is located in the domestic or
international territories and b) the need to fit to changing cultures abroad. Being a
fast food chain requires uniformity according to the standards set by the mother
company. One of the characteristics of the fast food chain that make it appealing to
people is that it gives people the assurance that they can get what they expect
each time they visit the store, regardless of the location. Jollibee Foods Corporation
has decided to bring this characteristics and made the domestic and international
chains parallel to one another. The decision to transport the Philippine standards to
the international chains clashed with the need to customize the fast-food chain
according to the needs of the people. It is clear that there is a clamor for
a customized Jollibee that would address the food preferences and traditions of each
country. However, this need cannot be given because it brought pressure on
operations and quality control, making it difficult for the managers here to oversee

the chains abroad that use different protocols. The situations is especially true for
the decision of Jollibee to move into the San Francisco area using the Filipino-toAsian-to-Hispanic-to-Mainstream approach. The question remains as to whether this
strategy could lead to a successful business venture in light of the difficulties faced
in previous attempts to international expansion.

Politico-Legal
The political and legal environments are the

Tariff and non-tariff barriers differ in each country as the

company needs to import raw materials from various countries.
Taxation
Different laws and regulations for each country on ownership
Labor law
Business requirements

Technological
Technology has grown into a strong force that has influenced the
business world ever since the Internet boom and advancements continue to
grow at an exponential rate. This growth became an opportunity for Jollibee in
its international expansion

New technologies in operations such as inventory and POS

system.
Commissary kasi automated kasi maramihan depends on the
availability of the technology in the country

Economic
The economy reflects the purchasing power of people which is based
on their current income, prices of goods, savings, and credit availability. The
current economic condition and growth of a country is one of the factors that
Jollibee looks into as the fast food industry depends on the disposable income
of the market to be profitable. <Insert what countries have growing
economies>

Growth of developing countries

Economic crisis
Buying power
Increasing consumer spending

Socio-Cultural and Demographics

Vietnam - no beef yum burger but has shrimp, chicken, and pork
burgers (Hindus)

Halal certification is hard to get

Cultural diversity
Taste preference
Prevalent taste
http://business.inquirer.net/204522/top-filipino-firms-buildingasean-empires

Environmental

Conservation of resources

Built reputation of the Five Fs

Friendliness, Flavorful food, Fun atmosphere, Flexibility in catering to
customers needs, and Focus on family

Jollibee has been known as the country's leading fast food chain; it has grown
exponentially on all aspects on operation. As regards to Jollibees value chain
elements, the corporation managed to enhance their production, and services to
meet the needs of their consumers. The following are Jollibees value chain elements:
Supply Chain
Procurement. Some of Jollibees raw materials processed and manufactured products
are imported and are grown by their suppliers. Jollibee has developed long-term deals
with these partners. This means that the supply chain works in a reliable working
environment between the supplier and Jollibee. However, due to global trade
barriers, coupled by the increase in crude prices, it is possible that Jollibee scraps
international sourcing activities. This could lead to reinventing the corporations
procurement process, and obtain what is available in the country.
Logistics. For outbound logistics, Jollibee distributes to franchises and fully-owned
stores. Because of Jollibees distribution system, it is an advantage to have a
centralized processing and manufacturing quarters that delivers to stores in proximity.
Thus, Jollibee has a timely basis delivery for perishables and maintain its quality until
it reaches the consumers.
Manufacturer
Manufacturing. In order for Jollibee to have genuine products, the corporation has
their commissary system which is responsible for the value adding processes. Being
part of the value chain, the manufacturing process is highly technology dependent to
ensure that the food is consistent to Jollibee standards and is produced safely and
cheaply without sacrificing the quality. Jollibee's automated operations not only
ensure consistent quality from batch to batch but also ensures food safety by

minimizing handling and maintaining the C of the corporations FSC Standards which
is cleanliness.
Channel of Distribution
Marketing. Another key element of the Jollibee value chain is marketing and effective
ad campaigns. Jollibee ads reach the customers through media by using celebrities to
promote the company's products and citizenship, and also through its website. Also,
Jollibees culture of family values is very well communicated through publicity moves
such as MaAga ang Pasko which is the longest-running corporate social responsibility
program by a fast food chain, and their newest move; the Family Values Award which
aims to celebrate the genuine and irreplaceable joy of togetherness of the Filipino
family.
Information can be used to decrease cost in the procurement and manufacturing. As
what I have said in the procurement Jollibees raw materials are imported but
because of the global barriers, Jollibee could reinvent their procurement process and
get products from the country. In the manufacturing, since operations are automated
this cuts the production time. Thus, less cost in both elements. On the other hand, it
increases customer satisfaction by ensuring that they serve clean, fresh, quality
products.

Profitability is dependent on high consumer traffic, location of stores and tight

operations management

Strong relations with existing suppliers, trade restrictions for imported raw materials,
food standards etc. limit power of suppliers

History

Milestones / History
1975

Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao.

1978

Jollibee posts 1st year sales of P2 million

Jollibee is incorporated as a 100% Filipino-owned company, with seven Jollibee fast food
restaurants within Metro Manila as its initial network.
The Yumburger becomes its first flagship product.

1979

Jollibees first franchised-store opens at Ronquillo, Sta. Cruz, Manila.

1985

Jollibee becomes the market leader in the fast food industry.

1987

Jollibee opens 1st fast food outlet in Brunei, marking its entry into the global market.

1989

Jollibee sales hit the P1.3 billion mark, giving the brand the distinction as the first fast food
chain to surpass the billion-peso sales mark.

1993

On July 13, JFC is listed in the Philippine Stocks Exchange with an initial offering of P9.00
per share.

1994

JFC expands into the pizza-pasta segment with the acquisition of Greenwich Pizza
Corporation.

1995

Jollibee successfully opens stores abroad: Guam, Dubai, United Arab Emirates, Kuwait, and
Jeddah, and Kingdom of Saudi Arabia.

1996

The 1st Jollibee store kanyain Hong Kong opens.

1998

Jollibee opens in Daly City, Califorina, its first store in the USA.

2000

Jollibee acquires Chowking

2004

JFC acquires its 1st foreign brand Yonghe King, a fast food chain in China.

2005

JFC acquires Red Ribbon Bakeshop.

2007

Jollibee opens Las Vegas outlet.

2010

Jollibee opens its first store in Qatar.

2011

Jollibee opens its first store in Hawaii, USA.

2012

Jollibee opens its first store in Kuwait.

2013

Jollibee opens in Singapore, which has a record first-day sales.

Jollibee opens its 100th international store in Jubail, Saudi Arabia.

2015

Jollibee opens its 900th Philippine store in Palo, Leyte.

Jollibee reaches its 1000th store as it opens its first store in Dubai, UAE.
Jollibee opens its first store in Bahrain.