Jollibee Foods Corporation

JOLLIBEE FOODS CORPORATION (A): INTERNATIONAL EXPANSION PROBLEM: What possible management and marketing strategies can Noli Tingzon create to be able to cater both the international and local markets of Jollibee Foods? AREAS OF CONSIDERATION: COMPETITION/ COMPETITORS: 1. Tough competition between existing establishments such as McDonald’s, Kentucky Fried Chicken, Pizza Hut and Wendy’s as to the quality of food, service time and menu variations at a low price. 2. McDonald’s is known for its best locations/ sites. . McDonald’s succeeded everywhere (globally) because they are very good at selecting the right partners. PERSONALITIES: 1. Tony Tan Caktiong, President and CEO of the company, wants to further expand his company to other countries and cater the needs of his customers globally. 2. Tony Kitchner, a native of Australia who spent 14 years in Pizza Huts Asia-Pacific regional office, was hired to become the head of the International division created to build the expansion of Jollibee Foods in other countries.

He managed to be successful in some aspects of the expansion but later encountered difficulties. 3. Noli Tingzon, the new head of the International Division who is tasked to make the necessary changes in the organization which would be favorable to the customers and as well as the company. ORGANIZATION: 1. The International Division created by Tony Kitchner had a superior image, which created a gap between them and the local research and development group. They wanted to do everything differently, so that if their stores did well they can take all the credit. 2.

When the international people tried to recruit people from the Philippines, there was some jealousy on a personal level because the people recruited were immediately promoted and had better compensation. 3. The relationship between the domestic managers and the International vice-president could not compromise on several issues regarding their concerns in their respective departments. 4. Poor relationship and less communication with the management and the staff of both the local and international departments of the organization. ALTERNATIVE COURSES OF ACTION: 1.

Develop a market niche strategy that can cater the needs of both the international and domestic customers. • Jollibee use market niche strategies to beat McDonald’s. Well, in terms of global market Jollibee is a mouse among the elephants but in the Philippines Jollibee control over 80% share of hamburger and 55 % fast food market as a whole. Jollibee can develop products for their customer must also develop message tailored especially for their target customer. 2. Bridge the gap between the International Division and the local Philippine research and development staff. Since there was a gap between the International Division and the local Philippine research and development department because of their superiority complex, there should be good communication between them and try to increase the morale of their employees. With a new head of the International Division, creating a better environment that is favorable to both parties would help the organization to focus more on the tasks given to them and may be able to address directly the needs of each one. With good communication within them, they can work efficiently and further fix the difficulties they face in the company. . Create a better management style that suits the organization. • The management style of Jollibee Foods Corporation is somewhat more dependent on the output that the International Division shows. Management is more concerned of the results that each department establishes and pays less attention to the details that may come in the process. There are two styles of management, which can be suitable to the organization, autocratic and democratic. An autocratic style of management is the type wherein the high-ranking personalities may be able to express fully their authority over the people they are handling.

Though it may somehow have its disadvantages because the people who are not in the authority or don’t have any power over decision making would make them inferior and in turn decrease their moral as employees. They cannot show how they want things to be in their work environment and leave them no choice but to follow what should be done rather than doing what they want. The democratic type of management style is the type wherein there is complete communication between the top management and its subordinates. They can be able to address more the concerns of each and understand each other’s needs.

RECOMMENDATION: * With the three suggested alternative course of action, we recommend using the three alternatives. First, the company should identify the type of management they are to use to develop changes within the company. Having Noli Tingzon as the new head of the International Division, he should know how to create a democratic management style to show that he cares on what his subordinates are concerned about since they are the forefront people of the company. Taking care of the customers is one way of showing that they pay good attention to the needs of their “audience. Second, closing the gap created between the International Division and the other departments can help promote a better working environment so that they can be able to work in ways that they can work together as a group. This way, they can work comfortably without the thought of putting down the hopes of the other. Lastly, with the image that Jollibee has in the market today, they can use it to target more the needs of the customers by creating innovative menu variations that other fast food chains do not offer.

Or if possible, they can bring back classical products that the public may have missed. This can cater both the international and domestic market because the ever-changing needs of the customers should be the primary concern of the organization. They should also develop a good relationship with their franchisees and suppliers so that they can also identify and focus on the places that they should be paying attention to as to their performance, whether it be losing or making profits.