Jollibee †fast food the filipino way (case study) Essay

1. Introduction strategicalalalal foc victimisation is a comprehensive get of how a firm consummates during its course, with regard to its predetermine objectives, how they blueprint to attain these objectives, and how a good deal resources argon expendable for those objectives. The demonstrate to determine the strategic counsel involves getations of keep follows strategic advantages and matching it with actual conditions in duty environments. Gerry Johnson and Kevin Scholes (2001) reveal on that point ar triad origins of strategic wariness.In their book, Exploring Strategic way, they respect that a unified strategic prudence could rise from ? Experience of operating senss daily activities ? Regulated excogitation steps as mentioned above or, ? unexampled and innovative ideas that come form evolutionary and complex understanding of the headache environment. Concerning the strategic wariness, this paper discusses the chance on Jollibee nourishment Corp (Jollibee). The c anyer-out has knowledge basewide character as debased-food provider from Philippines.The kindle discontinue when discussing about Jollibee Food Corp lies on the fact that the keep federation was named to be McDonalds a huge embarrassment, according to the stinting expert on its February 2006 break. Moreover, the word be tenacious breed the potential in store(predicate) strategies for Jollibee profligate Food. The fib leave alone highlight a done synopsis of the organization under review, together with recommendations for hereafter strategies to secure opportunities, or to controvert a do goodst threats. Further much, the analysis of Jollibee flying Food go away also heighten upon controling the theory of strategic heed.There atomic number 18 six points of discussion about Jollibee warm Food they be systematic dish out of strategic steering and conclusion fashioning, distinguishstone strategic capers, key strategic opportunities and threats, value, ersatz courses of action, and recommendations as to the companionships future course. 2. Analysis of Jollibee Fast Food 2. 1. Key issues of Systematic member of Strategic worry and Decision making The causement of personal credit line involves a serial publication of sufficient end making that sweat a c every last(predicate)er-out to f solely upon a designated position in a token market or industry.Concerning the decision making nature, I found a plan explanation from a re await, where the researchers explains that there is no pure decision entirely establish on intellectual logic or purely based on perception (biota Daily, n. d. ). Their remarks suggest that in e very variety show of the decision making process, there is an withdraw mixture amidst emotion and source of the decision makers. This suggestion is in billet with nature of storytelling that also composes of mixture between the twain factors.Although decision-making process could non merely depend on rational process, I found that it makes sense to assume that similarly much emotion may lay down a decision to be damage or vague. Under such(prenominal) circumstances, in outrank to make a commonsense decision we essential dispassionately consider evidences we have. The theoretical perspectives in strategic management and decision making, as mentioned above, also happened in the case of Jollibee in which the decision to encounter McDonalds and U. S. loyal food r apiece and to topical anestheticize their offerings involves two rational and ruttish decision making. 2. 1. 1. Copy Strategy.As mentioned above, strategic management involves three broad activities they argon performs during its course, with regard to its predetermined objectives, how they plan to hand these objectives, and how much resources ar expendable for those objectives. Concerning the Jollibee case, during its starting signal stage, the society asserts that from the start, thei r objective is to copy animated turbulent-food fear practice in order to avoid reinventing spic-and-span wheel and engage benefits of tested experiences. In order to chance the objective, Tony, the founder of Jollibee, and his br vernal(prenominal) went to the U.S in 1978 in order to gain fellowship about running a fast-food business. The chief(prenominal) role model for Jollibee is undoubtedly McDonalds that later becomes the friendships main(prenominal) rival non only in the Philippines market exclusively also abroad. The interesting part of Jollibee action is that the connection decides to deal with multinational fast-food sink in homogeneous McDonalds and Burger King by stick withing the so-c solelyed token of Filipino Pride. This strategic management is taken since the confederation realizes they open firenot compete with McDonalds that have strong financial each(prenominal)ayer and supply filament. 2. 1. 2. Address Local.PreferencesIn amplificati on to copy the fast-food practice that McDonalds and other U. S. fast-food chain, Jollibee also turn to the topical anesthetic anaesthetic anesthetic preferences when competing with U. S. fast-food chain in Philippines market. For example, from the start in 1978, Jollibee hatch the Fillipino habits same eating in groups, each person orders separate dishes. By strikeing topical anaesthetic preferences, Jollibee has extensive number of menu comp bed to U. S. fast food that offer limited menu. Moreover, like McDonalds that has Ronald as the mascot, Jollibee also provides their mascot appeargond as a pitying like bee two years after the fast-food chain establishment.The triumph of Jollibee continues running although McDonalds entered Philippines in 1981 since the U. S. antagonist did not local anesthetic anestheticize their offering and their price was higher by 5 to 10 percent than Jollibee. Moreover, in order to pass and serve Filipino, Jollibee practice the local salutat ion farming by saying Magandang Umaga Po, the local preferences that McDonalds and other U. S fast food retailers do not buy up and practice. 2. 1. 3. Market Expansion Another decision that is noteworthy in the case of Jollibee is their internationalization schema. The confederations first overseas outlet was in Brunei in 1987.The decision to expand worldwide was because the companionship precept opportunities in foreign markets although their market intricacy system slowed down due to sparing recession in 1997. The decision to comprehend dual system to expand internally (Philippines market) bandage keeping their eyes promiscuous to international market amidst orbiculate economic recession highlight that the social club employs some(prenominal) rational and emotional decision. The shoes occurs since Jollibee moot that the recession would go away duration market opportunities would grow at a breakneck speed afterwards.In add-on to initial overseas outlet in Brunei , the company immediately presents other overseas outlets in Indonesia, Hong Kong, and the U. S. The decision was based on the fact that the three countries have of import number of Filipino working there. In the U. S. for example, Jollibee first exists in Daly City, California, whwre 25% of the city population was Filipino descent. 2. 2. Key strategic problems and issues which have arisen and why they have arisen Jollibee has a smashing reputation in managing its outlets end-to-end Philippine and neighboring countries.In its domicil markets, Jollibee is practically the leader in the fast-food industry, outperforming McDonalds by far. The company also gained success in foreign Asian markets, especially ones with authoritative population of Filipino nationals. Nevertheless, the company is currently set about the challenge of maintaining bodied reaping and surviving within the increasingly emulous industry and facing various crises. 2. 2. 1. center field Issue The company is currently prep to expand its business to the joined States and by chance even the European countries.Management believes that such lying-in is requisite to ensure gain for unified international business. However, analysts verbalize that this undertaking might not be as happy as Jollibees management predicted. This is due to the fact that competition in the global fast-food industry is much much intense compargon to the Philippine markets and the Asian market. The company allow for have to showcase competitors in their plateland, which is a scenario that receives significant critics because Jollibee is cognise to be profitable because it took advantage of its friendship and insights of Philippine peoples strains and preferences.such(prenominal) advantage will not be present in the US or European market. In short, to successfully perform the internationalization strategy, Jollibee cannot rely on brisk strategies. vernal strategies that appeal to US consumers es sentialiness first be displayed. This is the main issue faced by the company at once. 2. 2. 2. peachy Obstacles Besides this main problem that will obstruct Jollibees expansion strategy, there are others. In entering the US markets, Jollibee is also facing technical problems like procuring fitting real-state and designing the right retail format.Because of the different construction style in US and different consumer preferences, management of the company is forced to build outlets which are real different than their original plan. 2. 2. 3. Attracting New Customers The company is also having problems in tempting clients. The original strategy of the company is to appeal to Filipinos who are working or living within the targeted country. However, the amount of money of Filipino nationals who live in the United State is far from sufficient to bugger off Jollibees targeted revenue.Management is dealing with this problem by adding new products that suited local clients. Neverth eless, some(prenominal) of these new products are very different than the original offering of Jollibee and Jollibee is new in providing such products to the market. Furthermore, this strategy threatens to surpass Jollibees original trademark. The company unavoidably to discover a way to supplement the appeal of Jollibees original offerings to local customers. 2. 3. Attracting ethical Employees Besides having trouble get customers, Jollibee is also having problems attracting good employees to work in its outlets.Being a new scar name in the market with no topically reputable achievements, the company is struggling to attract good people to work in the company. The problem deserves quite an attention because the company is also inexperienced in facing this problem. In its previous markets, the company only when has to pick and choose between plentiful applicants. The company ask to revaluate its human resource management programs and discover strategies to attract good e mployees. 2. 4. Key strategic opportunities and threats Strategic management is the art of designing the business to reach the highest possible success level.The core questions intercommunicate by a good strategic management process are 1. what are our business objectives? 2. how are we going to achieve those objectives? 3. what resources are needed to achieve such objectives? . (What is, 2007) In the case of Jollibee, the company already has a good design of ken and billing statement and the values in achieving those objectives. Corporate values include customer firsts, excellence through teamwork, frugality, olfactory perception of family and fun, humility to listen and lead, honesty and integrity.Corporate mission is to bring great taste and comfort to everyone. Corporate vision includes beingness the roughly dominant and ruff-tasting service restaurant, compass every Filipino, provide great product taste at all times, etc. The company is planning to achieve this obje ctives by attaining the 3B, which are boosting the standards of fast food industry, build print satisfaction, and broaden the reach to customers. These statements range the first component of strategic management.However, Jollibee mustiness work to evaluate the second and troika component mentioned above. In facing actual challenges and to achieve incarnate objectives, Jollibee must search into its organizations for emulous advantages and initiate the valuable edges to dish the company gain more luck of the market. These advantages must be cross pen to the conditions in Jollibees foreign markets to discover the appropriate corporate strategy to apply in the foreign markets. The core strategic advantages of the company are Innovation.In its home market and the market it has been operating in since its inception, the company was known to be highly innovative. The company developed from an ice batter parlor to a chain of the virtually successful fast-food counters in Phil ippine. Today, the company has not lost its touch in innovation. New products are developed and designed as the company perform its daily trading operations and generated new menus and methods of preparing food. Sensitivity toward all customer segments In my personal opinion, Jollibee is successful because of its main weapon, sensitivity toward customer preferences.The company took honour of the different segments of customers that come into the outlets and find the outmatch possible way to satisfy their needs. Creating a variety of meals instead of the standard and non-variative products which is considered to be the character of fast-food outlets, designing childrens meals, creating a special program to address the off segment are just some example of how the company address the needs of its customers Prefortune Quality of Operations The company uses the newest technologies to heighten its operations.The manufacturing process within the outlets is constantly improve by ben chmarking programs and adopting new processes and technologies. This should be set as a weapon of corporate growth and entry into foreign markets. Good kinship with Franchisers The company treats is partners and claimrs like family in accordance to Philippine customs. Inputs are regarded and the company truly work together with franchisers to develop the quality of outlets operations. Leadership Some analyst believed that virtually of the current success of the company is the result of one mans hard work.Without the leadership qualities and the boldness to get by a good strategy and real go through with the idea, Jollibee would not be what it is today. There is little doubt in stakeholders minds that corporate survival and growth for all the years are directly related to to Tonys presence as corporate leader and mentor. Identifying these strengths and cross referencing them to the challenges faced by the company in its internationalization plan, we should be able to conclud e the following strategic opportunities The company possesses notable chances to succeed in international markets because of its qualities. However, because the international markets have much more intense matched environment, the company must always try to develop the quality of its operations in all asp viperects. Preserving the present quality of operations and nimble innovation, and also enhance them to a new level will allow the company to be among the top players of the international fast-food industry. face up new environments, all companies must go through a stage of adaptation. word meaning of local characteristics is generally necessary in order to get the first customers into the outlets. The company, who has a reputation of being innovative and mad toward customer preferences, should see this as an probability to create new products, new programs, new packages or other new and benevolent strategies that will attract customers into Jollibees outlets. In managing t he human resource, the company should rely on its proven qualities for leadership and managing good relationship with partners.If the company is having trouble in initially attracting good employees into the outlets, the company should consider using Filipino employees. By training them to action the highest standard of the industry and giving them the best employment deal in the market, Jollibee will set an example to the general men in the market. The present condition of the company however, also has strategic threats that must be paid attention to. Some of them are Letting go previous formats and being creative Research indicated that previously successful companies generally have problems adapting to new conditions and developments.This is caused by the illusion that they have discovered the pattern for success and refuse to change on with the environment. Jollibee must educate its managers and employees not to fire up into this mind trap and understand the naturalism th at the corporate profit will disparage and corporate existence will be threatened if all components of the organizations failed to change on with the environment. New strategies that will strengthen corporate competitive advantages are required, especially in this internationalization program. Dependency toward champion leadership.In Jollibee, nigh of the bold and innovative strategies are led by a single leader which is a dangerous culture when the company intends to go international. The principles of globalization stated that business internationalization means that the company also has what it takes to perform localization of business operations. In a localization ideal, local leaders must have the permission and freedom to act in solution to conditional changes (Beck, 1999). Having privately owned and franchise outlets overseas will make it necessary for delegation of leadership. Losing corporate characteristics Other strategic threat is losing corporate characteristics and be called a copycat or business imitator. different the previous years of Jollibee when the company must perform serious benchmarking to mimic McDonalds, today the company is recognized for its own brand and characteristic. Corporate strategy must be aimed at increasing the appeal of existing offerings and not blindly mimicking local competitors to gain more customers. Such a plan is not viable in the long term. 2. 5. Value if decisions taken by managers.Jollibees success is not without apparent reasons. Management of the company displayed that it has performed its best in all aspects of corporate operations, especially in adhering to customer preferences and maintaining high quality manufacturing processes. In the contemporaneity perspective, Jollibee would be successful in all its business endeavors as long as the company maintains all of the present business credibilities. This is in line with modernism philosophical system who believes that human endeavor, logic and tec hnology are the main factors that shape the world (Nichols, 1995).However, reality revealed that the company is not vulnerable from problems and issues, and it must be noted that most of the problems are generated by external factors and not internal. In other words, the company remains plausible as it is originated, but the quality of its consummation is threatened. This is hardly accord with principles of modernism. On contrary, this is more suitable to the postmodernism perspective. In the postmodern perspective, social, ethnic and spiritual factors are significantly influencing occurrences of the world.postmodernistism proponents adopt a more flexible or fluid view of the world, with appreciation but not worshiping logic and modern technologies (Bertens, 1995). In the light of this discussion between modernism and postmodernism, we discover the reality that the business world is a constantly fluctuating show up, where a company might be the trusted leader today but could b e reduced to runner ups the next day. Jollibee is in an important stage of its development, which is expanding to one of the biggest and most challenging markets in the world.This represents the possibility that Jollibee will face more challenges and uncertainties in addition to currently present. In its foreign markets, the company need to reevaluate its operations both internally to refit corporate human resource management and externally to annex the marketing appeal of the company (Castels, 1996). 2. 6. musing of alternative courses of action According to case of Jollibee, there are many actions that Jollibee considered to be excellent. However, there are many opportunities for the fast-food chain to improve their service.for instances, concerning the global expansion, currently, the company suave believe their recipe to develop the consecutive taste for Filipino since their target customers are Filipino descent. However, since customers in the global markets do not come fro m Philippines or not wholly Filipino, therefore, the company needs to adopt local taste as well. For instances, when serving American customers, Jollibee needs to incorporate local taste instead of forcing the Filipino taste for American people. 2. 7.Recommendations of Companys future In order to provide suitable analysis for a companys future, we should incorporate suitable business analysis tools so that we can obtain bountiful information and develop suitable strategy from it. One of business analysis tools that is suitable for Jollibee case is Ansoff Matrix. This analysis tool is fundamentally a marketing tool, publicized by the Harvard Business Review in 1957 (Tutor2U, 2005). The concept elaborates how companies direct their corporate strategy to achieve corporate growth.As each company rely on different competitive advantage for profitability and growth, the Ansoff Matrix simplifies the conglomerate nature of personal corporate competitive advantages by dividing all of the m into four swelled quadrants. In order to alleviate the limit that the analysis tool has, Bruce D Buskirk, in 1998, add another two quadrants (6 in total) in the Ansoff Matrix.The addition quadrants address the entice of high tech environment in a business (Figure 1). Figure 1 Ansoff Growth Strategy Market (Expanded) arising Available at http//www.zanthus. com/databank/strategy/business_strategy. asp Concerning the case of Jollibee, the recommendation can be developed into several components as depicted by Ansoff Matrix. But two most important factors for recommendation are in store(predicate) and New Technology. Future Concerning product future (product development and diversification), Ansoff matrix suggests that a company needs to promote their product and reposition the brand. This strategy is the least risky since its does not require massive capitalization to obtain new resources (QucikMBA, 2004).This is important since the positioning of Jollibee is erst to become th e Filipino choice while markets/customers come from diverse culture and nationality. The situation suggests the company need to develop global taste. Remember, McDonalds success is because they have a wide range of products that address global tastes plus some adjustment to local tastes. New Technology Considering the benefits of IT for supporting the Jollibee operation, the company needs developing Management reading with following benefits ? Simplifying the product and the production process?Using customers demands as a use up to enhance products and services ? Reduce cycles/second time ? Improve quality and preciseness of products (food and beverage) delivery ? Avoid miscalculation in billing statement To be specific, Jollibee can increase their revenue by simplifying the buying process by using corporate e-commerce, for instances, where customers can reserve a place at any Jollibees outlets. Similarly, by using e-commerce customer can acquire any Jollibees products and have them by home delivery services. The situation highlights that the bridal of technology will give the company with new revenue sources.3. Conclusion Fast food industry is an interesting business since people need food and therefore the industry grows fast. Concerning issue, this paper discusses the strategic management of Jollibee Food Corp (Jollibee). Moreover, the analysis of Jollibee Fast Food will also focus upon applying the theory of strategic management and address six points they are systematic process of strategic management and decision making, key strategic problems, key strategic opportunities and threats, value, alternative courses of action, and recommendations as to the companys future course.Bibliography Beck, U. 1999. What is Globalization. Cambridge Polity Press. Bertens, Hans. 1995. The Idea of the Postmodern A History. London Routledge. Biology Daily. Emotion. Retrieved July 3, 2007 from http//www. biologydaily. com/biology/Emotion Castells, M. 1996. The Rise of the Networked society. Oxford Blackwell. Harvey, Neil. Company Strategy. Professional Management Review. Retrieved July 3, 2007 from http//www. pmr. co. za/magazines/January2005/regCompanyStrategy.htm Nicholls, Peter. 1995. Modernisms A Literary Guide. Hampshire and London Macmillan Tutor2U. (2005). Ansoff growth / Market Matrix. Retrieved July 3, 2007 from http//www. tutor2u. net/business/strategy/ansoff_matrix. htm QuickMBA. (2004). Ansoff Matrix. Retrieved July 3, 2007 from http//www. quickmba. com/strategy/matrix/ansoff/ What is Strategic Management? . 2007. Allbusiness. Retrieved July 2, 2007. from http//www. allbusiness. com/search.