Jollibee

Jollibee Foods Corporation Jollibee Foods Corporation owned by the Tan family began in 1975 as a basic ice cream parlor and subsequently expanded its menu offering in the form of sandwiches and hamburgers as a result of the increased cost of oil and the President Tony Tan Caktiong (TTC) anticipated ice cream prices to soar. The company culture was developed on the Five F’s: Flavor, Fun, Flexibility, Family atmosphere and Friendliness. The years to follow, Jollibee Foods began to expand domestically

Chapter I INTRODUCTION Fast food restaurant also known as quick service restaurant (QSR) has been a trend since the 1990s. Jollibee and McDonald’s have been the leading fast food services in the world. They have been competing and been branded as rivals in this type of business. The merger and acquisition trends have been a very visible activity of Jollibee Foods Corporation which seems to be their strategy in strengthening competitive advantage. Most of the companies find that the best way to

Jollibee Foods Corporation: International Expansion 1.1. What sources of competitive advantage was it able to develop against McDonald's in its home market? Firstly, Jollibee was the first mover in the sector of burgers in Philippines, shaping customer preferences and expectations, instead of McDonald's or KFC. Secondly, Jollibee was young, and very small in comparison of McDonald's whose force worldwide is standardization. The burger company serves millions of exactly identical sandwich each

Brief History of the Company Jollibee was founded by Tony Tan Caktiong who was born and raised in Fujian, one of China’s poorest provinces. His family migrated to the Philippines to look for better opportunities and began cooking in a Chinese temple.  Because he spent so much time on the kitchen with his parents, he developed incredibly sensitive taste buds and learned his entrepreneurial mindset.  In 1975, when Tony was only 22, he used his family’s life savings to open two Ice Cream Parlors in

Jollibee Foods Corporation (JFC) is the Philippines’ largest Food Service business and is continuously expanding its presence in foreign countries. It has a System Wide Sales of P117.9 billion and a Net Income of P5.4 billion in 2014. JFC has a total store network of 2,951 stores worldwide as of March 31, 2015. In the Philippines, JFC’s store network totals to 2,335: Jollibee brand 869, Greenwich 216, Chowking 419, Red Ribbon 334, Mang Inasal 452, and Burger King 45. Abroad, it operates 616 stores:

There was a big issue last year regarding the shortage of supplies in the branches of Jollibee Food Corp. (JFC) The shortage the temporary closure of around 72 stores of various JFC brands, or 3.2% of its total stores nationwide, as well as menu limitations for most of its other branches. It was estimated that JFC was losing P7 million dollars worth of sales everyday because of this shortage. Despite the disruption though, JFC said it still has sufficient raw materials, finished products

today Jollibee has become the number one fast food chain that serves burgers, sandwiches and rice meals in its originating country, Philippines (Beamish and Bartlett, 2014). It first started its foreign expansion to Singapore, and today it has expanded to 9 countries including United States. There are countless countries withholding potential for Jollibee’s expansion, and several of them will be discussed in the following discourse. INDONESIA One of the countries in which Jollibee should

1. How was Jollibee able to build its dominant position in fast food in the Philippines? What are the sources of competitive advantage was it able to develop against McDonalds in its home market? Jollibee was able to build its dominant position in Philippines fast food market due to several important factors. Jollibee had a major advantage since they were already in the market and had a low barrier to entry. Since Jollibee had a low barrier to entry and knowledge and relationships with the local

significant breakthrough in the local economy with 600 million people and their income levels anticipated increasing; the ASEAN Economic Community makes it an appealing market for various ventures, including restaurants. (Asia.nikkei.com, 2015) Jollibee Foods Corporation (JFC), McDonald 's Company (MCD), and YUM Brands (YUM) companies engage in the growth, operation and franchising in the Quick Service Restaurants (QSR). These companies are considered multinational fast-food chains. A multinational

real meaning underneath the behaviors due to cultural diversity, (i.e. Chinese are just being polite and trying to show confidence by never saying no )which made the whole team not effective at all and their plan unsuccessful. The Breakdown of Jollibee Although Tony Kitchner was hired to bring more structure to the International Division, he failed to learn about the people’s culture and values from Domestic department or build the rapport needed to push forward the division’s initiatives. .