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Case 7

Jollibee Foods Corporation

The Philippines’ leading food service company has grown both organically and through acquisitions. Ranked among Asia’s top companies, it now dominates the fast-food market in its home country, where it offers four separate fast-food concepts under separate brand identities, led by the original Jollibee stores. However, despite international aspirations, it has made only modest progress overseas, where recent growth has come primarily from purchase of the Yonghe King chain in China. Around the world, when someone says “fast-food restaurant” the chances are high that the first name that comes to mind will be McDonald’s, the world’s largest quick-service restaurant chain. In 2005, McDonald’s held a 20 percent share of the U.S. fast-food market, triple that of its nearest competitor Burger King. This was not the case, however, in the Philippines where, for more than two decades, fast-food had been synonymous with the name Jollibee. In the global business arena, Jollibee Foods Corporation (JFC) was not exactly a household name. But in its niche, the Philippines, where it controlled four brands—Jollibee, Delifrance, Greenwich Pizza, and Chowking—it dominated the market. During the 1990s, JFC extended its sights overseas, opening a small number of restaurants in several Asian and Middle Eastern locations. The company’s chairman and CEO, Tony Tan Caktiong, observed: Internationalization remains a key component of our business strategy, even as we continue to reinforce our domestic network of stores. Our goals of continued growth, profitability and market leadership, as well as our contribution to the development of our country, may lie not just in continuing to expand aggressively at home but also in becoming a truly multinational Filipino corporation. By June 2005, the total number of stores worldwide in the JFC Group had grown to 1,200, of which 1,079 were located in the Philippines and the balance in several other countries, led by the recently acquired Yonghe King chain in China. Jollibee had recently beaten 31 other entrepreneurs from around the world to win the 2004 World Entrepreneur of the Year award, sponsored by Ernst and Young, one of the world’s top accounting firms.

Humble Beginnings
In 1975, Tony Tan Caktiong, a Filipino of Chinese ancestry, and his brothers opened two ice- cream parlors in Manila’s commercial districts of Cubao and Quiapo. These icecream parlors were an instant hit among food-loving Filipinos, who came to associate the stores with special occasions such as birthdays and holidays. In no time the Tan brothers had decided to expand their menu and began offering other quick-meals such as hot sandwiches, spaghetti and burgers. After its second year of operations, the Tan brothers noted that the store was actually earning more from the side orders, specifically their burgers, than from the ice-cream. Following the taste and feel of the market, the Tan brothers decided to develop their own unique brand by coming up with a menu that would appeal to the Filipino palate. Jollibee was conceived as a fast-food outlet of highquality but reasonably-priced food products tailored especially for Filipinos, who were served by a jolly, “busy-as-abee” restaurant crew. Hence the birth of the bright red and yellow “Jolly Bee” mascot, which had since become a favorite among Filipino children. In response to the growing popularity of their sweet homemade burgers—made from their mother’s secret recipe—and the other hot meals, Tony Tan and his brothers formed Jollibee Foods Corporation (JFC) in 1978 to exploit the possibilities of a hamburger concept more fully. By that time the firm had seven outlets. When McDonald’s entered the Philippine market in 1981 and began opening stores in Manila, some industry observers questioned whether the little 11-store local chain could survive. However, Jollibee’s management team decided to see this as an opportunity that would allow them to benchmark the American giant’s operations and then bring their own chain up to world-class standards. In particular, they focused on learning about the sophisticated operating systems that enabled McDonald’s to control its quality, costs, and service at the store level—an area of weakness in the local firm that had constrained its further expansion. As Tony Tan gained a better understanding of McDonald’s business model, he recognized not only strengths but also specific

© 2007 Leonardo R, Garcia, Jr., Christopher H. Lovelock, and Jochen Wirtz. The authors gratefully acknowledge the assistance of Kristine Abante. This case is based on published sources, student research, and personal experience. It was prepared solely for use as a learning tool and is not intended to serve as an endorsement, source of primary data, or illustration of effective or ineffective management. Financial data are in Philippine pesos (exchange rates in mid-2004 were PHP 1 = US$0.018, or US$1 = PHP 56).


Jollibee Foods Corporation had acquired a portfolio of other fast food concepts. the size.LOVEMX03_0131875523. JFC was the Philippines market leader in three segments. people love to eat and are used to doing so up to five times daily. KFC. Although long-time favorites like Chickenjoy. an international chain of French bakery-cafés headquartered in France. In 2000. In addition to meals with fries. Jolly Hotdog. French fries and Yumburgers still continued to hold their appeal. enjoying snacks in between meals and a comfortable place to chat with friends and loved ones. In addition to the original chain of Jollibee burger restaurants. In the hamburger and chicken segment. Jollibee’s keen insight and understanding of the Filipino psyche had brought to everyone’s lips the promise of langhap-sara (freely translated.a. The enlarged menu included more rice-based products like Honey Beef Rice and Shanghai Rolls. 1998–2004. the firm was also pursuing a strategy of diversification as a hedge against both competition and downturns in specific market niches. By the end of 2003. more flavorful desserts like the Ice Craze in Buko pandan (coconut and jelly) and mais con yelo (sweet corn) served with milk and crushed ice. Reaching out to other segments. Jollibee had 467 outlets to only 240 for its nearest rival.a. JFC acquired the right to operate the Philippine’s franchise of Délifrance. Philippines Jollibee Greenwich Chowking Delifrance Subtotal International Jollibee Chowking Tomi’s Teriyaki Yonghe King Subtotal TOTAL 508 228 310 33 1.200 Source: Fourth quarter reports. a variety of burger choices from mushroom to garlic and cheese. Jollibee had managed to maintain its dominant position as the leading fast-food chain in the Philippines with a menu tailored specifically to the Filipinos’ preferences. McDonald’s. and Pizza Hut. Its moist burger patties and spicy sauces were so distinctly Filipino that Jollibee’s burgers were often likened to what a Filipino mother would cook at home. Jollibee Foods Corporation 533 . Wendy’s.a. JFC bought Chowking Foods Corporation. several new brands had been added through acquisition. n. seeking to cater to the changing taste preferences of the Filipinos. Over the years. and adults from all walks of life—been offered so much in a single location. over time Jollibee had broadened its product range to create more excitement and variety. this means “smells good so it must taste good”). Spaghetti Special. In Chinese fast-food. The following year. traditional Filipino breakfast rice meals. and options such as the Tuna Pie and Pies-to-Go. reflecting its standardized product line and a U. which operated the Philippines’ top chain serving Chinese fast-food. families. Although Chowking had reported excellent sales and performance since its purchase. Burger King. Jollibee Food Corporation (JFC) went public on the Philippine Stock Exchange to broaden its capital base. As a result the nation had become an attractive market for global players such as McDonald’s. n. Jollibee had become the first Philippine fast-food chain to break the one billion peso sales mark. Jollibee offered rice or spaghetti with its entrees.-dominated decision processes. n. n.a. This strong understanding of Filipinos’ taste and preferences set Jollibee apart from its competitors. 1998–2005 DECEMBER 31 JUNE 2005 2004 499 232 303 31 1.065 22 10 — 88 120 1.079 22 11 — 88 121 1. Addition of New Brands Capturing Filipinos’ Taste buds In the Philippines. In 1993. Even as the Jollibee brand achieved market dominance. it took time before Greenwich Pizza was able to establish a strong position in the market. there Trends in Number of Stores by Brand. In 1994 it purchased Greenwich Pizza.a.qxd 8/19/06 5:15 PM Page 533 areas of weakness in the latter’s strategy. Never before had Filipinos—children. Yet despite growing competition.S. to which it applied its carefully honed operational and marketing skills. geographic expanse and breadth of the company’s operations had continued to grow. EXHIBIT 1 By 1989. n. laying the groundwork for expansion both within and beyond Philippine shores. a variety of chicken dishes.185 2003 467 213 245 30 955 21 9 3 — 33 988 2002 436 191 216 28 871 21 8 2 — 31 902 2001 408 194 194 24 832 23 7 1 — 31 863 2000 374 193 164 13 744 22 6 — — 29 772 1999 350 191 159 6 712 21 6 — — 27 739 1998 302 169 142 4 617 n. the Philippines’ leading pizza and pasta chain.a.

8 0. We will lead in product taste at all times We will provide FSC excellence in every encounter .8 0. Source: Annual Reports.1 0. With more than one thousand stores across the Philippines. Jollibee Foods Corporation. and was consistently ranked among Asia’s best employers in the Far Eastern Economic Review’s annual survey.5 21. Despite a recent economic slowdown in the Philippines and unfavorable business conditions.3 1. had 213 stores as compared to 113 for its nearest rival. procurement. Exhibit 4 shows a modern Jollibee store.0 1. And finally.7 1.6 14.6 2002 26.3 One million customers ate at JFC stores daily. 1998–2004.6 26. Honesty and Integrity • Humility to listen and learn Mission We bring great taste and happiness to everyone Vision Become the most dominant and best tasting QSR .7 12. Pizza Hut.3 21. The most endearing brand that has ever been.1 Exhibit 1 shows trends in the number of stores by brand between the end of 1998 and September 2004. Luk Yuen. and Asian Business had all ranked JFC among Asia’s top companies. and 44.4 1.9 1.8 13. . Jollibee Foods Corporation topped the “Asia’s Most Admired Company” (AMAC) survey. Greenwich. By that time. distribution and marketing at levels unavailable to most industry players.9 1998–2004* 2004 Consolidated Systemwide Sales Gross Revenues Income from Operations Net Income Number of Personnel (000) *All financial data in billions of pesos. .jollibee. Jollibee had become had become an international brand that. Exhibit 3 reproduces the company’s values. Forbes. as management declared. conducted by Hong Kong-based Asian Business Magazine. the Service (S) must be fast and courte- EXHIBIT 3 Jollibee Food Corporation: Values—Mission—Vision Values • Always put customer first • Excellence through teamwork • Spirit of family and fun • Frugality.2 1998 16.8 20.8 2000 20. Happiness in every moment Source: www.5 1.9 0. We will be within reach of every Filipino .2 2.5 26. JFC controlled about 55% of the quick-service restaurant market in the Philippines based on “visit shares” and held 70% of the burger-based meals market. Twenty-nine years after Jollibee was founded. compared to 136 for its nearest competitor. JFC’s four brands enjoyed substantial economies of scale.LOVEMX03_0131875523. It was recognized as the number one food company in Asia by Euromoney and as the best-managed company in the Philippines by Asiamoney. .qxd 8/19/06 5:15 PM Page 534 EXHIBIT 2 Jollibee Foods Corporation: Selected Annual Financial and Operational Data.250 eggs.1 0. manufacturing. accessed July 2004.6 1999 18. JFC bought or produced 40. 534 Jollibee Foods Corporation . . In 2004. vision.0 2001 24.” represented its commitment to meeting high standards in three key areas: Every Food (F) item served to the public must meet the company’s excellent standards or it will not be served at all. Exhibit 2 shows annual financial and operational data for JFC from 1998 to 2004. 320. . JFC had continued to deliver same-store sales growth.0 22.9 35. averaging a per capita spending of about 40 pesos (US$0.1 18. .000 pieces of burger. JFC’s pizza and pasta outlet.1 14. Each day. and mission.71). gaining leverage in terms of retail site selection and operations.6 1.9 20.5 were 245 Chowking restaurants.2 0. O PERATIONS . . Far Eastern Economic Review. described by the company on its website as “a byword in all of Jollibee. AND H UMAN R ESOURCES Jollibee’s ‘FSC’ Commitment The acronym FSC. M ARKETING . 2003 28.000 packs of chicken (with eight pieces in each pack). made Filipinos proud.

managers received ongoing training in the latest operations systems and in people-management skills. followed by “accessibility. Other attributes mentioned were “tasty. All employees underwent comprehensive training programs based on the underlying standards.qxd 8/19/06 5:15 PM Page 535 EXHIBIT 4 Typical Jollibee Outlet in the Philippines in an environment where the crew talked to them in the local language. only 44 percent of respondents cited “faster” as a desired attribute. Jollibee Foods Corporation paid the highest compensation and benefits package in the Philippine fast foods industry. affordable/cheaper prices was ranked top. with 94 percent mentioning this attribute. the most significant. The chain also appealed to a broad cross-section of the population that felt comfortable and very much at home Emotional Attributes For fast-foods in general. with a tinge of national pride. allowed Jollibee to position itself as the destination for family outings.” “accommodating personnel.” (70 percent). The company recognized that maintaining high standards required that employees be committed to FSC. Marketing Strategy JFC’s marketing philosophy was based on being closer to Filipino families than its competitors. complete with boxing gloves. The DLSU Survey A survey conducted by advertising management students from De La Salle University in Manila in mid-2004 contrasted Jollibee’s value proposition against that of McDonald’s operations in the Philippines (Exhibit 5) and revealed the main rational and emotional factors that drove Filipino consumers’ choices in fast food restaurants.” noted a Filipino business analyst.LOVEMX03_0131875523. Its hamburger-headed Champ. Jollibee endeavored to maintain its dominance in the children’s segment by promoting its Jolly Kiddie Meals and offering a choice of Regular Yum. The Jollibee chain had tailored its marketing strategies to suit the Filipino culture and lifestyle.” “promotional items are useful. so it appealed to patriotic or “pam-Pinoy” instincts. There was wide awareness that Jollibee was a local Filipino service business establishment that had captured the unique Filipino taste. went head-to-head against McDonald’s Hamburglar. familyoriented pampamilya (74 percent). Rational Attributes Of the top ten rational attributes underlying selection of a fast food restaurant. cited by 90 percent of respondents. Industry observers reported that Jollibee’s giant smiling red and yellow bee and a blond spaghettihaired girl named Hetti (a mascot for Jollibee restaurants) were better known and loved in the Philippines than Ronald McDonald. was for it to be “affordable and/or cheap.” “delivery services. Spaghetti Special or Chickenjoy. ous. “What happens in the normal Filipino family is that weekends are reserved especially for children.” Next came “faster service” (cited by 78 percent). and Cleanliness (C) from sidewalk to kitchen. Having an advertising strategy that was deeply rooted in the traditional values of family. However. must be maintained at all times. Opportunities existed for qualified crew members to pursue a career path into management positions.” Jollibee appealed to children with in-store play activities and a cast of captivating characters. (Exhibit 7). unlike other outlets where the crew spoke in English and where the atmosphere might be perceived by some as projecting an elitist appeal.” “variety of food. the three most dominant attributes were friendly atmosphere (76 percent).” and “offers seasonal products” (Exhibit 6). Jollibee Foods Corporation 535 . “and parents try to ask their children where they want to eat. and hang out or tambayan (66 percent).” “frequent and effective ads. Among Jollibee’s patrons. The other emotional attributes considered by respondents were mass appeal. In addition. followed by accessibility/many outlets (72 percent) and tastier (66 percent). from uniforms to utensils.

During the 1980s. “brings you closer to home. although “family-oriented” was ranked first and “friendly. on the other hand.LOVEMX03_0131875523. EXHIBIT 6 Rational Attributes Filipinos Look for in Fast-Food Restaurants/Jollibee FAST-FOOD MARKET OVERALL JOLLIBEE ATTRIBUTE PERCENT RANK ATTRIBUTE PERCENT 1 2 3 4 5 6 7 8 9 10 Affordable/Cheaper Faster Service Accessibility/“Maraming” (many) outlets Tastier Variety of food chains Accommodating personnel Delivery Services Promotional items are useful Frequent and effective ads Offers seasonal products Total N = 50 90 78 70 68 60 34 42 38 34 28 100 Affordable/Cheaper Accessibility/Many outlets Tastier Frequent and Effective Ads Variety of food chains Faster service Promotional items are useful Accommodating personnel Delivery Services Offers seasonal products 94 72 66 56 50 44 40 38 38 36 100 Source: DLSU student research project.g. for many years Jollibee focused its efforts only in the Philippines. and the use of “wholesome” or “cute” endorsers. better environment for kids. While global players like McDonald’s and KFC chose to spread their resources among their fast-food chains worldwide. Among all the fast-food chains competing in the Philippines.” second.. 2004. meals with spaghetti or rice. fast and friendly service in a clean and comfortable environment. Jollibee had already gained the upper hand in terms of store locations.g. of Stores in the Philippines (mid-2004) Mode of International Expansion 241 Franchising *McDonald’s subsequently bowed to the pressure of conforming to Filipino taste preferences by introducing menu items such as McSpaghetti and McDo. Jollibee. Broadly similar ratings of these attributes were achieved for Jollibees. In some locations. Jollibee had been able to tailor its menu and marketing strategies to better reach and satisfy the customers. a heavily seasoned burger. 2004. By the time the country was back on track.qxd 8/19/06 5:15 PM Page 536 EXHIBIT 5 Value Proposition of Jollibee Versus McDonald’s in the Philippines VALUE PROPOSITION TARGET MARKET JOLLIBEE FAMILIES & CHILDREN MCDONALD’S FAMILIES & CHILDREN Business Operations Menu Promotions To provide high quality food. Tailored to the Filipino palate. McDonald’s had to curtail its expansion process.. peach-mango pie.* • Extra Value Meal • Happy Meal (with premium items and toys) No. patriotic or pam-Pinoy or lasang Pinoy. when political instability hit the Philippines. it faced no competition from other fast-food chains. E. The unique geographical structure of the Philippines with its many islands made it a challenging market for fast-food companies. 536 Jollibee Foods Corporation . Jollibee was the only one that operated nationwide. service. continued with its strategic plans of expansion. Organizational Structure By concentrating on a country market with distinct preferences. Source: DLSU student research project.” “likeable Filipiso selections” or “putaheng Pinoy”/”sangkap Pinoy. cleanliness and value. meals with fries. Standardized Fare E. thus leaving the global giant trailing behind. • Langhap Sarap Value Meals • Jolly Kiddie Meal (with premium items and toys) • Eats for Free purchase rewards program • Bestsellers Campaign (20 percent discounts on various combinations of the popular Langhap Sarap Value Meals) 472 Franchising To provide outstanding quality.” “use of Filipino language” particularly by the service crew.

and more timely decision-making. Over time. and Greenwich restaurants obscured the fact that each year some stores were closed. JFC’s strategy included a focus on achieving operational efficiency in its commissary and hiring the right candidates to manage its operations and strategy planning. By the early 1990s. with plans to expand into Nevada. either because they were underperforming or because they were being replaced by newer and larger stores in better locations. quicker coordination. and New York in future years. The Head Office/Corporate Services functions (Marketing. a higher percentage of stores were being operated by franchisees instead of company-owned. targeting markets where there were substantial numbers of “OFWs” (Overseas Filipino Workers). Key support functions like human resources and administration. To meet the challenges of a more intensely competitive market and to manage business more effectively.S. Chowking. the firm entered one of the most demanding fast-food markets in the world. South Luzon. Vietnam. “Pam-Pinoy. Hawaii..S.” “Lasang Pinoy” Mass Appeal Likeable Filipino selections. By adopting a franchise mode in the U. The continuing growth in the number of Jollibee. and Visayas-Mindanao. Jollibee turned its sights overseas. almost like my mother’s Southern fried chicken!” And white Americans enjoyed delicacies not offered by competitors. the brand also sought to appeal to other ethnic groups in its U. I NTERNATIONAL O PERATIONS Building on its success in the Philippines. One AfricanAmerican customer stated that the chicken is “excellent.qxd 8/19/06 5:15 PM Page 537 EXHIBIT 7 Emotional Attributes Filipinos Look for in Fast-Foods/Jollibee FAST-FOOD MARKET JOLLIBEE N PERCENT RANK ATTRIBUTE N PERCENT RANK ATTRIBUTE 1 2 3 4 5 Friendly Atmosphere Family togetherness (“Pampamilya”) Hang-out (“Tambayan”) Mass Appeal Better environment for kids 38 37 33 27 27 76 74 66 54 54 1 2 3 4 5 Family togetherness (“Pampamilya”) Friendly atmosphere Patriotic.” In the U. outlets.S.. such as Peach Mango Pie. Engineering) were re-aligned as a Support Center to provide corporatelevel direction and continuing assistance to the RBUs. Restaurant Systems. which had at that time an estimated two million Filipino immigrants. and Kuwait. The company’s international expansion strategy focused on markets where management believed it “could successfully develop the Jollibee brand and put up the supply chain to support the critical mass of stores in these selected markets. “Putaheng Pinoy. But aside from Jollibee’s popularity among Filipinos. Top management believed that the new structure had resulted in better execution of programs and renewed enthusiasm and commitment from JFC’s managers and employees. Initially. the United States. the company focused on reaching communities with a large Filipino population to capitalize on its brand awareness.LOVEMX03_0131875523. Saipan and Guam (both islands in the NW Pacific). Dubai. In 2001. Brunei. In 1998. decentralizing the organization into four autonomous Regional Business Units (RBUs) that corresponded to the country’s major geographic markets: Mega Manila. the firm purchased a Jollibee Foods Corporation 537 . This structure ensured a more manageable business size and span of control.” “Sangkap Pinoy” Better environment for kids Use of Filipino language Wholesome/”cute” endorsers 39 32 30 30 28 78 64 60 60 56 6 7 8 9 10 Patriotic (“Pam-Pinoy”/ ”Lasang Pinoy”) Brings you closer to home selections Likeable Filipino selections (“Putaheng Pinoy”/ “Sangkap-Pinoy”) Use of Filipino language Wholesome/”cute” endorsers N:50 22 17 16 44 34 32 6 7 8 28 20 13 56 40 26 13 8 26 16 9 10 Hang-out/”Tambayan” Brings you closer to home N:50 12 11 24 22 Source: DLSU student research project. Indonesia. Other immigrants from Asia came with their families to eat at Jollibee’s. Jollibee restaurants were operating in Hong Kong. the first state targeted was California. 2004. Luzon. JFC was able to draw on local capital and entrepreneurial drive. finance and network development were transferred to the RBUs for greater efficiency in the delivery of products and services. Finance. the company had undertaken a major initiative in 2000 to re-align the structure of Jollibee Philippines.

Despite an earlier. 538 . Additional sources consulted for this case include: Jollibee Foods Corporation Website (www. the company was looking at the possibility of expanding its three-store network in Vietnam.” PJI Journal. We are keeping the brand trademark and the recipes for possible future use. noted: There are still major challenges to address to ensure the long-term soundness of the business—we have to improve our cost structure particularly in the support groups. most of JFC’s growth came from within the Philippines. led by the Jollibee and Chowking brands. a Japanese restaurant in California.LOVEMX03_0131875523.079 1 18 82 6 14 1. the company signed an agreement to purchase 85 percent ownership in the Shanghai-based Yonghe King chain. Its basic concept is sound. majority interest in Tokyo Teriyaki House. responding to the growing market for Chinese food in that nation.200 *JFC was a master franchisee for Délifrance. The number of Yonghe King stores in China had remained almost unchanged.” JFC had identified several markets in Asia for its expansion activities.jollibee. announced that during the first quarter of the year JFC had opened 21 new stores but closed 13. with the objective of expanding into the Japanese QSR segment and developing it into another major chain.journal. In the meantime. the chairman. a French-owned franchise. but there is still much work to be done to turn it into a strong brand. China Co-owned Franchised Others TOTAL 207 301 508 1 10 — — 11 530 GREENWICH 122 106 228 — — — — — 228 CHOWKING 99 211 310 — 8 — — 3 321 DÉLIFRANCE* 29 4 33 — — — — — 33 YONGHE KING — — — — — 82 6 — 88 TOTAL 457 622 1.” Over the course of the following 12 months.S. Ysmael V. unsuccessful experience operating a now-closed Jollibee’s store in Xiamen. Said Mr Baysa: “Tomi’s Teriyaki business did not grow according to expectations. but was expected to increase to over 100 stores by early 2006.qxd 08/24/2006 12:26 AM Page 538 EXHIBIT 8 Location of JFC Group Stores by Brand. The number of Yonghe King stores grew from 77 at the end of 2003 to 89 by the end of the third quarter of 2004. accessed January 17. In 2004. which had been hit by rising in the Philippines but not in other countries. www. both of which were dominated by franchisee-operated units (Exhibit 8). we have to sustain positive growth in same store sales. R EFERENCES 1 “Jollibee beats McDonald’s at its own game. June 2005 JOLLIBEE Philippines Co-owned Franchised Subtotal Hong Kong U. eastern China. Baysa. of which seven were in foreign locations. increasing to another 50 in year four and 100 additional stores in year five. In March 2004. 2005. “Going Global: Lessons from Late Movers.A. Summarizing the company’s strategy. it renamed the restaurant Tomi’s Teriyaki Bartlett and Sumantra Ghoshal. one Jollibee store in the US. by which point this brand accounted for 6 percent of JFC’s system-wide sales and was more profitable than the domestic operation. Jollibee Foods Corporation Christopher A. which offered Chinese style fast-food in ten cities. In May 2004. Mr. It closed all three Chowking stores in Dubai. and we have to win big in foreign operations if we are to become a truly World Class Business. the company’s chief finance officer. There were also plans to introduce the Chowking brand to Indonesia. management is placing its priority on brand development of Yonghe King in China. The annual report for 2002 noted that the overseas stores were providing the company “the experience in the know-how that we need in gearing up to the realities of international competition and in reorienting ourselves to the global environment.” Harvard Business Review 78 (March–April 2001) 132–145. and shuttered its 3-store Tomi’s Teriyaki operation in the US. JFC saw huge potential in the People’s Mr. The strategy for Yonghe King was to open 20 new stores a year in each of the next three years.

operations. What are the secrets of its success in terms of marketing. What rational and emotional attributes do you look for in a fast-food restaurant? Do these attributes fit your favorite food establishment in your country? 4. To what extent can the company transfer its core competency to its international operations? Should it modify its consumer-driven strategies to suit foreign markets. even if that means Jollibee becomes much less ‘Philippine’ in nature? 5.LOVEMX03_0131875523. and human resource strategies? 2. Evaluate JFC’s performance overseas. Evaluate Jollibee Food Corporation’s performance in the Philippines. Should Jollibee continue in its efforts to go international or concentrate on expanding and consolidating its foothold in the Philippines only? Why? Jollibee Foods Corporation 539 . In what ways does JFC’s strategy of adding new brands leverage or dilute the strengths of the original Jollibee concept? 3.qxd 8/19/06 5:15 PM Page 539 S TUDY Q UESTIONS 1.

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