Case6 Jollibee Foods Corporation Jollibee FAN Libo
Case Synopsis (1) The case opens with a trigger issue focused on three investment decisions facing the international division new manager, Noli Tingzon. The case traces the international expansion of Jollibee Foods Corporation, a Philippine based fast food company led by entrepreneur Tony Tan Caktiong (or TTC); The case then describes the company s early history under TTC, gowing to dominant fast food company in the Philippines and beating back a challenge from McDonald s in the process. In 1993, the company s decision to commit to a major international expansion, led by Tony Kitchner, he was dismissed in 1997.
Case Synopsis (2) After a major restructuring of the international division, TTC hires Noli Tingzon as the new general manager of Jollibee s international division and asks him to review both the strategy and organization that his predecessor has put in place.. It is in this context that Tingzon must decide whether to enter the small PNG market where he will be a first mover, to expand into Hong Kong where is an existing base but some resistance to Jollibee s Philippines-based fast food model, and a proposal to stake a claim in the huge U.S. market by establishing an operation in California.
(1). 1975 Tony Tan Caktiong TTC TTC 1980 1993 Tony Kitchner
(2) Tingzon PNG
Assignment Questions 1. How would Jollibee able to build its dominant position in fast food in Philippines? What sources of competitive advantage was it able to develop against McDonald s in its home market? 2. How would you evaluate Tony Kitchner s effectiveness as the first head of Jollibee s international division? Does his broad strategic thrust make sense? How effectively did he develop the organization to implement his priorities? 3. As Noli Tingzon, how would you deal with the three options described at the end of the case? How would you implement your decision?
Question One: Philippines Success How would Jollibee able to build its dominant position in fast food in Philippines? What sources of competitive advantage was it able to develop against McDonald s in its home market?
Why success in Philippines We can have the following fact from the case: The franchising Marketing investment in building image The ability to manage volumes, cast and quality First Mover Advantages (FMA) Ability to adapt its product to local market. Local pride and nationalism
1 /
FMAs) 1. ;2. ;3.
Question Two: Kitchner s Performance How would you evaluate Tony Kitchner s effectiveness as the first head of Jollibee s international division? Does his broad strategic thrust make sense? How effectively did he develop the organization to implement his priorities? Kitchner
Kitchner Kitchner Kitchner
Kitchner (1) (1) Strategically, he seems to have three major legs to his international expansion agenda. He expressed as planting the flag, willingness to respond to differences in national tastes and preferences, and a niche strategy that aims to leverage Jollibee s image in overseas Philippines (targeting expats). (1) Kitchner niche
Kitchner 2 Kitchner (niche) 8 18 Kitchner 1997 2
Kitchner 2 Kitchner Kitchner Kitchner 1 1 + - - + - + - - + - 2 2 + - - 3 + - 32 - $200 $300 + - $900 3 3 + - - 28 /10 + - - + -
Kitchner 3
Kitchner 4 TTC Kitchner 1997 2 Kitchner
Question Three As Noli Tingzon, how would you deal with the three options described at the end of the case? How would you implement your decision? Tingzon
Tingzon Kitchner Tingzon Tingzon
1.Tingzon 3.1 Tingzon + - + - 24 /10 1/2
3.2 Tingzon + - + - + - 24 14
2. Tingzon Tingzon
3.Tingzon (1)PNG PNG Kitchner
2 Tingzon
3
Tingzon PNG 20-50
4. Kitchner
Update and Implication
Update 1999 2001 2001 200 2002 4 2002 TTC Tingzon
strategic intent emergent strategy planned strategy logical incrementalism