Executive Summary Jollibee Food Corporation is a Filipino fast food retail chain

that was started in 1975 and from then on the company was on an expansion trend. It

capitalized the changes in the political scenario in the country and thrived the

competition from global players like McDonalds. It went public in 1993 and has been

pursuing an aggressive global expansion strategy most of which backfired due to the

problems in strategies followed by the company. The newly appointed International wing

chief of the firm is facing the challenge of making a prudent decision regarding three

new opportunities that the firm has in the offing, namely expansion to Papua New

Guinea, Hong-Kong and California. But before making a move in this direction, the

company has to address all the issues that have been prevalent in the organization for a

long time owing to lack of long term vision and overall integration of the organization

strategies. The firm has been functioning like two parallel organizations with no co-

operation and coordination between the international wing and the domestic wing which

has proved detrimental in various issues that the firm has been facing. The organization

is operating in a highly competitive industry and has to develop an overall firm strategy

to attain sustainable competitive advantage. It is mainly thriving on Franchising and JVs

and needs to define the operating relationships with the global associates effectively in

order to prevent the disputes that have cramped the firm’s operations many a times. For

crafting out an efficient direction for the firm, the four strategy model for international

expansion was analysed and the firm was plugged in to the model and it turned out that

the present strategy of the firm is falling in a grey area between the international

strategy and localization strategy. Our suggestion is that the firm should adopt a fully-

fledged transnational strategy so that it can effectively reap the benefits of cost saving
as well as local adaptation and there by carving a global image for the firm that has

impeccable operations, financial and marketing strategy. Also, we recommend the firm

to go ahead and capture the opportunities in Papua New Guinea as well as California

and hold the fire for some time when it comes to the expansion plans for Hong-Kong

and look for expansion options in Hongkong only when the prevailing management

issues in Hongkong are sorted out. Also, the implementation plan for revamping the

operations of various functions have been suggested in the main body of report.

Business Landscape: Company History; 1975 Jollibee started as an ice cream parlor

owned and run by the Chinese-Filipino Tan Family. 1977 Jollibee had diversified into

sandwiches after company President Tony Tan Caktiong realized that events triggered

by the oil crisis during this year, that would double the price of the ice cream. August

1977 all of the Chinese managers had resigned leaving Jollibee with only Filipinos in

Store- level management positions. Shih was afraid this would further undermine

Jollibee's ability to hire crews, as Chinese preferred to work for Chinese. 1978 with five

stores in Metropolitan Manila, the family incorporated as Jollibee Foods Corporation.