BUSINESS MANAGEMENT PRACTICES OF INTERNATIONALLY ACCLAIMED

FILIPINO-ESTABLISHED FAST-FOOD CHAIN IN MANILA CITY

Foreign Literature

A lot of fast food chains have grown in size recently. Some have achieved

considerable success abroad, while others have failed. Failure might be attributed to (a)

inadequate financial resources, (b) a lack of site accessibility, (c) expensive rent, (d)

insufficient mechanisms for government laws, as well as (e) global marketplaces.

However, any chain restaurant's success on a global scale is likely to rely on customer

testing, approval, and adoption of the new chain as the go-to option for eating out

(Barbier & Loreau, 2019).

McDonald's is a very famous example of a well-known brand internationally. It is

a successful chain restaurant which has expansion in numerous ways, McDonald's is a

prime example of a new technology being offered to the market because, when

compared to conventional food sources, the production and servicing processes it

employs are revolutionary.  Much has been written about how McDonald's supplier

relationships and real estate assets, relationships with partners, franchisee

relationships, and the McDonald's creed of Value, Quality, Service, and Cleanliness are

key factors in the company's success (Tien, 2019).

Newer technology are replacing older ones continuously. The relevance of

technological development is, in fact, one of the fundamental principles supporting long-

term economic prosperity. The economy is enabled by technical advancements that

increase production and quality to increase. Even philosophically opposed thinkers like

Karl Marx and Adam Smith concur on this fact. However, The use of new technology

alone is insufficient; it must be broadly adopted and quickly so that society as a whole
can reap the economic advantages. Consequently, improving one's comprehension of

the procedure of Diffusion is a significant problem (Mooney, 2018).

A well-known field for academic research is diffusion in a variety of social science

fields. Historically, these studies have a particular interest in product, social, and rural

innovations. Given the expanding role of the service industry in the global economy,

studying the service sector will become just as important as the economy. Future

inventions is currently crucial. If society wants to continue to create economic progress,

it must adopt new types of innovation (Nykiforuk et al. 2018).

The method by which an innovation spreads is the definition of the diffusion of

which "that some channels are used to spread innovation among the participants of a

social system over time " (Rogers, 1983 as cited in the work of Nykiforuk et al. (2018)).

The diffusion paradigm has historically given researchers in the field of marketing a

framework to analyze new product development and its possibilities for commerce. The

literature has concentrated in particular on forecasting the rate at which new items will

be implemented, and when the peak sales period will occur reached. By using

mathematics, Bass has created a model (1969 as cited in the work of Nykiforuk et al.

(2018)) that considers the impact of invention, imitation, and market potential for

forecasting sales patterns and peaks.

The model's fundamental underlying assumption is that the likelihood of adoption

of a new technology or product at time would be linearly dependent on two pressures,

one of which is unrelated to how many previous adopters there were, and one of which

would be influenced favorably by earlier adopters In fact, research has shown that over
many new items and technological advancements, the empirical adoption curve is

adequately described by the Bass Model.

In the past, communication bias has frequently characterized diffusion. Other

techniques for marketing research, such as formative assessment, pretesting and study

are frequently employed to better understand the probable consumer choices of

representative future users. Often, this research is conducted to support modifying a

new approach, or presenting it in a different way to appeal to the target audience

preferences of members. However, in a pre-diffusion stage, perceptions of innovators

and their communication, as well as those of prospective users, can be gathered Using

these three different sorts of data (when based on the an invention's perceived

qualities), a more thorough comprehension of how a dangerous innovation would be

seen can be obtained. The degree of interest in the diffusion significantly influenced by

process is the high number of new items that fail after being introduced.The estimations

of the number of failures those goods that really reach the market as a failure are

removed before being officially launched have been put at 35% (El-Said & Tall, 2020).

Given the frantic pace at which fresh products have recently been released, it

appears acceptable to consider that this rate might even be higher now. Aside than that,

anecdotal evidence reveals that the hospitality industry's restaurant sector has an

extremely high failure rate. One outcome of these worries is attempting to identify which

characteristics of innovations influence the adoption rate. Early investigations centered

mostly on economic factors like the amount of capital required, as well as the alleged

risk of adoption. Another quality is the degree to which an innovation is congruent with

the market is what draws attention in accordance with the sociocultural ideals of the
recipient society or group (El-Said & Tall, 2020). These investigations and the resulting

necessity has worked to create a classification system for innovation traits. Five

innovation traits that are as comprehensive, mutually exclusive, and globally applicable

as possible have been proposed (Rogers, 1962 as cited in the work of Nykiforuk et al.

(2018)). They are the relative advantage, Compatibility, Complexity, Trialability, and

Observability.

Relative Advantage

It is the degree to which a new technology is regarded as superior than the thing it

replaces. This benefit could be financial or have to do with status. Theoretical

speculation holds that the stronger the potential customer's perception of an

innovation's benefit adopter, the greater the likelihood that the idea will be embraced.

Compatibility

It is the extent to which potential adopters' values, experiences, and needs are seen to

be met by an innovation. It has been suggested that the larger the perceived benefit of

an innovation by a potential adopter, the higher the likelihood of willingness to use the

invention.

Complexity

It is the amount of effort required to complete and use a specific innovation. The idea

has been put out that the more challenging an invention is regarded to implement and

use by a potential consumer, the less likely they are to accept the innovation.

Trialability
The extent to which a novel idea can be tested out prior to adoption must be verified. It

has been proposed that the higher a company's capacity to test an idea potential

adopter, the greater the likelihood that the innovation will be embraced.

Observability

The extent to which the advantages which includes relative advantage and other

characteristics, are known to non-adapters. The idea is that the more an innovation may

be observed by a potential customer, the greater the likelihood that the idea will be

embraced.

Local Literature

As the leading fast food chain in the Philippines for the past 20 years, Jollibee

has significantly impacted the eating landscape in America using a multi-pronged

approach. ollibee has an ongoing spread throughout the archipelago,  having a strong

market presence as both a standalone brand and a member of the the worldwide

business Jollibee Food Corporation (JFC), which has a wide range of global restaurants

(Matejowsky, 2020).

While earlier research has mapped Jollibee's remarkable development from a

fledgling fast food restaurant in Metro Manila in the from the middle of the 1970s to the

present (Bullinger, Seitz, and Volz) few articles describe Jollibee's expanding

international recognition (Matejowsky, 2020) even fewer highlight the sometimes subtle

differences between JFC operations as well as those of its primary brand, Jollibee. As

one of the few companies from the Global South to receive any widespread acclaim, the

accomplishments of Jollibee outside of its country of origin resound for both overt and
covert reasons. Brand achievement is frequently interpreted in larger social

circumstances that indicate much of the difficult postcolonial history of the Philippines

with relation to the United States, as well as how it affects the long-standing global

movement (Matejowsky, 2020)

The continuing globalization of corporate fast food had a new twist according to

Time journalist Joel Stein, who focused one of his monthly essays on the topic. Stein

draws attention to a crucial development in the relentless spread of restaurants serving

food in the American manner around the world. One who has not previously received

much academic interest His essay, "A New Fast Food Invasion," examines the

increasing number of international businesses that are making their way into the U.S.

market from the Global South aiming to challenge established businesses like

McDonald’s in the nation where fast food first appeared. Jollibee is one of the fast food

that Stein has described (Matejowsky, 2018) 

According to Stein, native brands have a high degree of standardization and

capitalization in their American endeavors even when their recipes demand the limits of

popular American sensibility for specific foods (Matejowsky, 2018), as well as the

customer conveniences and service models they provide. Almost no changes have

been made to the original fast food idea developed and perfected similar to McDonald's

in earlier times. Such advances, according to Stein, are representative of the complexity

and contradictions of the continuous and multifaceted globalization impact.

Among all the foreign companies fighting for a piece of America's extremely

profitable fast food market, Jollibee is Stein's favorite fast food restaurant among them

all. As one of Southeast Asia's leading restaurant chains and the top chain in the
Philippines, JFC and Jollibee, two of Asia's most successful businesses, have

significant corporate power that few other locally owned fast food businesses

cannot easily match.  In a country where McDonald's has long dominated the global

eating scene, the Philippines is one of the only countries where the fast food giant

consistently falls behind a local rival. Jollibee has surpassed McDonald's since the mid-

1980s, giving JFC a strong foundation from which to broaden its presence

internationally (Matejowsky, 2018).

JFC, a company with more than 13,000 employees worldwide, presently worth

US$4.8 billion (Morales& Petty, 2019). As stated by  Manila Standard, sales from

foreign retailers increased by 55.5%. headed by North America, which increased by

161% in 2018. It is launched by current Jollibee CEO and Chinese-Filipino fast food

tycoon, Chairman Tony Tan Caktiong founded a pair of ice cream shops in Manila in

1975 which immediately switched to serving hamburgers after these non-dessert items

become popular to customers. Jollibee was formally incorporated as JFC and quickly

gained popularity among customers turning into a publicly traded corporation on the

Philippine Stock Exchange in 1978 roughly fifteen years later (De Chavez, 2019).

McDonald's entry into the market in 1981 in the Philippines did not do anything to

stop Jollibee's decades-long ascent despite being initially in second position. If anything,

Jollibee has continually used McDonald's as a benchmark against which to measure its

own market performance and highlight its success as a Filipino-owned brand

(Matejowsky, 2018). Despite the fact that McDonald's frequently ranks high in terms of

profitability and total restaurant ownership, it reinvents itself to meet shifting consumer

tastes and stay competitive of opponents. McDonald's ongoing innovation is evidenced

by recent additions like all-day breakfast, higher quality goods and ingredients, and

online takeout services (Matejowsky, 2018).

When it comes to Jollibee, it uses strategies, concepts, and goods to keep its top

position in the world and this serves as a type of testing facility where the Filipino chain

can more accurately determine what is commercially successful in both domestic and

foreign markets (Matejowsky, 2018). Recently, Jollibee celebrated its 40th anniversary

with a costly marketing effort that emphasized its ongoing attraction to people of all

ages. Due to its strong marketing, locally inspired menu, and family-focused attitude,

JFC today counts over 1,200 self-titled Jollibee restaurants which are largely found in

almost all of the places in the Philippines (Morales & Petty, 2019). In actuality, in the

Philippines, the mascot known as the bumblebee enjoys a high level of respect,

international non-Filipino populations, as well as the Filipino diaspora.

The capacity of JFC to enter the American market for commerce depends on a

number of elements, including Tony Tan Caktiong's entrepreneurial spirit. First, using

intuition and money accumulated through the chain's extraordinary ascent in the 1980s

in the Philippines and thereafter in several East and Southeast regions of Asia over the

following years. In 1986, JFC opened its first Jollibee restaurant in Taiwan. A year later,

a branch opened in Brunei. These first forays into international marketing reflect an

important turning point in JFC's beginning global expansion and a significant sign of

things to follow (De Chavez, 2019).

Long-standing Filipinos' contributions to JFC's market expansion are

multigenerational diasporic groups and worldwide migration Filipino nationals working or

residing abroad gives JFC a ready-made customer base for its distinctive products. This
benefit is enhanced by the widespread use of people of Filipino heritage in the Global

North are not only open to food and service at Jollibee, as well as its sociocultural

cachet as an example accusing its former colonial administrator of "neo-patriotism"

(Matejowsky, 2020).

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