Jollibee

General points

1. Five Fs – pg 1 last para
2. Operations was considered a key success factor
3. Growth came internally – organic growth – professionals managed functions like marketing and finance, family members took key positions in operations
4. Jollibbe capitalized on external market conditions (1984) to increase its dominance and oust/shake McDonald’s growing power
5. TTC identified following key success factors for successful internationalization

1. Partner must be chosen very carefully
2. Location of the store can make/break the business

1. Kitchener believed that first mover advantage was critical to success in a country

Q2. How would you evaluate Jollibee’s international expansion up until 1997? (1600 words)

• TTC saw opportunity outside in other Asian countries once he realized that Jollibee’s success against McDonald’s was a big win and it indicated the potential Jollibee had
• Early lessons learnt from expansion into Indonesia, Brunei, Singapore, Taiwan etc. not really incorporated for later entries – however the group identified the critical key success factors that they needed – location and partner
• Post this TTC decided to have a separate division overlooking the international expansion – solely responsible for it – however he did not really define how this division would work with the domestic operations and the division was given independence to chart out a strategy to thrust Jollibee on the international scene as TTC thought Kitchener’s experience can be exploited here
• Kitchener’s belief of exploiting first mover advantage strained the company resources and ties with the domestic counterparts
• Operations management – commentary and take
• Strain between international and domestic practice as international wanted greater customization which domestic thought would lead to difficulties in operations
• HR issues surface – TTCfailed to tackle this effectively in the beginning itself – structure of the organization was not well defined by him
• Final take – not very successful, led to problems within the divisions, different styles of management wasn’t tactically managed and controlled by TTC
• Look at numbers once – most likely they have a story to tell

Q3. Which are Jollibee’s main capabilities? (600 words)

• Operations – talk about operational management section of the case here
• Five Fs (?, not sure about this)
• Tan families connection and friends through which they initially expanded

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Q4 What have been the management challenges for the company? (800 words)

• Failure to adapt to local tastes as needed
• Improper division of power and control
• HR problems of poaching of employees by international
• Lack of “one” feeling between the divisions
• Failure to understand that operational capability is a strength and instead they made it a handicap when it came to localization of menu

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Q5 What should Noli Tingzon do as the case ends and why? (1200 words)

• First decision: Papua New Guinea – use as testing ground for new strategy, go ahead, start with 1, expand to 3 within 4 quarters, if results good, expand more
• Second decision: Hong Kong – need localization if store is in Kowloon as major customer base would be Chinese. For this need to solve staffing issues
• Third decision: California – no don’t go there, not enough resources right now. First make amends in other places and then hit California

Q6 Comment briefly on which general management issues have been raised in this case? (800 words)

• People management
• Importance of tie in of operations with marketing and execution/implementation
• Need for adaptation to suit local tastes
• Importance of a large customer base to which your product appeals to
• Transnational structure of organization is the best – hybrid of international and multinational didn’t work for them
• AAA?

-can you guys think of whether they could do aggregation or arbitrage in any way – I think they do aggregation by procuring raw materials for one region collectively (was mentioned somewhere in the case that this was done for asia), not sure if they do arbitrage