MASTER IN BUSINESS ADMINISTRATION

DE LA SALLE LIPA GRADUATE SCHOOL

College of Business, Economics, Accountancy and Management

KatherynD.Lontok MarketingManagement
MBA1601 August26,2017

Caselet4:HigherGroundforMassage,SpaCenter

1) IdentifythemissionandvisionofTonTonMassageCorporation.
MISSION

Provide the best authenticThai massagein the country and to employ
andempowerwomen.
DifferentiateTonTonMassageCorpfromspaandmassagecenterswhich
offer extra service by establishing a good reputation thru hiring only
licensedmasseuse.

VISION
To maintain the good public image of Tonton Massage Corporation
through continuous promotion campaigns that focuses in professional
serviceandgeneratespositivewordofmouth.

2) HowhasTonTonsuccessfullychangedthenegativeimageofmassageparlorsthathas
prevailedoverthedecades?
Ithinkso,becauseTonTonMassageCorporationimplementedtrainings
forthoseindividualswhethersinglemothers,elementarygraduatesand
outofschoolyouthwhoareinterestedinlearningthepassionoftherapy.
Also more people are now willing to be trained as a masseuse because
theyareawareofthebenefitwithregardstoearningopportunitiesitcan
offer.

3) WhatconcretemeasureshasTonTonundertakentoperformsocialresponsibility?
Asacompanyitisimportantthat youknowhowtoeffectivelyperform
socialresponsibilitiesamongyouremployeesandtheconcretemeasure
TonTonhasundertakentoexecutethisisto:
o Take out people working in a casa (brothel) or as GROs (guest
relationworkers)becausethisjobhasnegativeconnotation.
o To extend to those interested individuals to learn more about
beingamasseusethatthereisanavailabletrainingcourse.

 MASTER IN BUSINESS ADMINISTRATION

DE LA SALLE LIPA GRADUATE SCHOOL
College of Business, Economics, Accountancy and Management

o UrgingtheDOH(DepartmentofHealth)toimprovethepractical
examination given to masseuse. This includes expanding the
coveragefromSwedishmassagetoincludeThaimassage.
o ItwillnotbeincludedinDOHhygienecheckupduetothespas
noextraserviceoffernomore.

4) What service innovation should you recommend to Ton Ton in order to uplift the
massageindustry?
Theycanofferspatoeveryonewhetherbaby,toddler,adultorpregnant
women.
Giving incentives for those individuals with regular visits in the spa
center.
Sincesomeareworkingindividualsmaybetheycanofferahomeservice
spa.
Theycanofferpromobundletreatmentfortheircustomers.

 MASTER IN BUSINESS ADMINISTRATION

DE LA SALLE LIPA GRADUATE SCHOOL
College of Business, Economics, Accountancy and Management

KatherynD.Lontok MarketingManagement
MBA1601 August26,2017

Caselet9:JollibeeBuysChinaRestaurantChain

1) Discuss the distribution strategy clearly shown by Jollibees acquisition of a chain of
restaurantsinBeijingChina.

JollibeesdistributionstrategyuponacquisitionofchainofrestaurantsinBeijing
ChinaisthatJFCwantto:
1) Wayofenteringbusinessgloballybyacquiringchainofrestaurantsworldwide
2) Expanditsmarketaudience
3) Crosssellingofproductsandservices
4) Toincreaserevenuebyabsorbingamajorcompetitorandtherebyincreasingmarketshare
5) Diversificationthatcanstabilizeearningsandboostinvestorconfidence.

2) Whataretheprosandconsoftheacquisition?
PROSoftheacquisition
a) PropertyExpansiononeclearadvantagetoexpandingabusinessis
the opportunity to staff the firm with new, qualified people. Since
people are often recognized as the most important asset of a
company, acquiring new and talented personnel is a clearcut
advantage to business expansion.This increased pool of potential
customers can dramatically improve sales, resulting in increased
profitability.
b) MarketPoweriftheconsumersknowsthatyourcompanyisleading
themarketinaparticularbusinesslineitmakesensethatyouhave
their trust when you established another one. And you have your
goodcredibilityinthemarket.
c) FinancialGainifyourcompanyisgoodathandlingmoneyinterms
of operating the business rest assure that there will be a profitable
financialstabilityofthebusiness.
d) MoreInvestortherewillbemoreinvestorsinterestedtoinvestin
your business if your company has stable financial status and good
imageinthepublic.

 MASTER IN BUSINESS ADMINISTRATION

DE LA SALLE LIPA GRADUATE SCHOOL
College of Business, Economics, Accountancy and Management

CONSoftheacquisition
a) Allocation of Capital If you are planning to acquire such business
you should know the right allocation of your capital if not the
businesswillnotbeprofitable.
b) MergingofcultureCultureClash.Whentwocompaniesmerge,itis
more than just the coming together of names or brands it is the
joining of two groups of people who bring along their own specific
corporatecultures.Iftwofirmshaveverydifferentcultures,conflicts
canarise.
c) SecurityVulnerabilityisthathackerscanreverseengineerthepatch
andcriminalscanthenexploitit.

3) FormulateagoalstatementforJollibeeconsideringthisacquisition.
ToenhanceitscapabilityindevelopingAsianFoodrestaurantconceptfor
mainstreamconsumerinChina.
To be the worlds leading Food Service retailer with more than 2,000
storesworldwideandoneoftheworldswellknownandvaluablebrands
ineverycountry.
To continue building its business abroad and expanding its presence in
China.
To strengthen and defend the leadership position of its brand in the
Philippines.

4) WhatdoyouthinkmustbeconsideredbyJollibeeingoinginternational?

a) Culture
Thebiggestchallengeforanyenterpriseenteringanewoverseasmarketislanguage.In
somemarkets,youwouldneedtodevelopwebsitesinthelocallanguageandacceptthelocal
currency.Make sure the marketing message of your brand is perfectly translated in the local
language.
b) Budget
Zeroing in on a realistic budgetfor global expansion is no easy task. The variables are
unknownandplentyandyouhavetosiftthrougheachoneofthemtoarriveatafigure.Bearin
mind the fluctuating exchange rates and different business tax structures for different
countries.

 MASTER IN BUSINESS ADMINISTRATION

DE LA SALLE LIPA GRADUATE SCHOOL
College of Business, Economics, Accountancy and Management

c) Law
Coping with different laws in different countries can be daunting and can distract you
fromfocusingonbusinessgoals.Youwillhavetodealwithalotofpaperworkandregulations.
Findingouttheregulationsforyourparticularindustrybeforeattemptingtoexpandabroadis
the first step to expanding your business internationally.Find good legal counsel in your
countryas well as your targeted international markets to help you with these formalities to
provideyourbusinesswithasmoothroadtosuccess.
d) Risk
Civil unrest, insufficient reserves, unforeseen fluctuations, political mishaps, policy
changes, new competitors, red tape, the risks for enterprises with international presence are
many.Theimportanceoftrackingglobalnewsminutebyminutecannotbeoverstated.Anin
depthriskassessmentandevaluationoftheareasunderconsiderationforexpansionwillhelp
businessesassessthreatsandvulnerabilitiesapplicabletothephysicallocation.