This action might not be possible to undo. Are you sure you want to continue?
Category: Business Autor: andrew 08 March 2011 Words: 4956 | Pages: 20 Executive Summary The case gives an idea about how the competition influenced Jollibee's strategy, both domestic and international. Jollibee ,which was a Filipino chain of restaurants, was forced to change their strategy with the entry of McDonalds in Philippines, which later transformed the company into a global company .The company faced serious challenges with their international exposure. The challenges included the conflicts with franchisees/Joint venture and conflicts between divisions. Another issue that the company faced was the entry into Papa New Guinea, United States of America and expansion plans in Hong Kong. The company has to consider the financial instability it faces while considering their plans. In the analysis we have tried to cover the effectiveness of strategies adopted by Mr Tony Kitchner (Former International Division head). This case analysis report deals with, firstly the key management challenges faced by the company, followed by some supporting arguments. In the management issues, the report focuses into the conflicting areas or the need to establish a greater cooperation and coordination between the Domestic and International divisions. Then, the recommendations regarding what should the company do differently in each of its department like in Marketing, HR, Finance or Operations, to succeed in its plans of global expansion. Finally, the feasibility of the three decisions that the new management has taken is also discussed. We have also tried to analyse the dilemma faced by Mr. Tingzon regarding the opportunities of international expansions to Papa New Guinea, Hong Kong and USA. Jollibee Foods Corporation- International Expansion: Case Analysis a. Industry Analysis A fast food restaurant or Rapid Service Eatery (RSE) has the following 3 characteristics. 1. It is characterized by its fast food cuisine and nominal table service. 2. It offers limited menu, cooked in bulk in advance, kept hot, finished, packaged to order, and available to take-out, drive-thru, and dine-in.
3. It is usually a part of a chain or franchise operation, which supplies standardized ingredients and/or partially prepared foods and provisions to each restaurant through controlled supply channels. McDonald's is one of the most famous RSE in the world. McDonald's became No.1 in every country of more than 100 countries in the world except Philippines where JFC has been overwhelming strength against McDonald's. JFC was founded by Chinese-Filipino Mr. Tony Tan Caktiong (TTC) as the ice-cream parlor at Cubao City in 1975. Gradually, it grew up to a reasonably large fast food chain in Philippines. Further, JFC started scouting avenues for expansion internationally. Thus it opened its franchises in countries like U.S.A., Brunei, Hong Kong, Guam, Middle East, etc. Assuming, Mc Donald's was the chief competitor of JFC in Philippines we have made an analysis of the strategies adopted by both the organizations. In order to analyze the strategy, we have utilized the following two tools. a) Four-Tier Structure of Market b) Type of Glocalization A. FOUR-TIER STRUCTURE OF MARKET Khanna & Palepu (2006) introduced the Four-Tiered Structure of Market. They insisted that most product markets comprise four distinct tires: global, glocal, local, and regional. In Global segment, products of global quality with global features at global prices are offered. In Glocal segment, products of global quality with local features (and local soul) at less than global prices are offered. In local segment, local products with local features at local prices are offered. B. TYPE OF GLOCALIZATION As objectives of glocalization can be product/service and business model, there are two types of glocalization. Product/service glocalization Business model glocalization. The following charts give an overview of strategies adopted by JFC and Mc Donald's. a. Porter's competitive strategies Model b. Type of Glocalization (Products/Services vs. Business Model)
Driving Forces Analysis of Tony Kitchner's Strategy . d. For international markets. a. c. Lacked more effective marketing skills as growth revenues decreased. b. Political instability in the country threatened JFC as it could hamper the opportunities to convince international investors and country leaders to allow a JFC entry in their country. Poor co-ordination between the national and international units. b. full integration in sourcing raw materials could be done. b.b. an increase in the number of commissaries could easily reduce the transportation costs and the duration of shipments. Firm Analysis SWOT ANALYSIS OF JFC: STRENGTHS WEAKNESSES a. Proven past performance made dealings with prospective partners easier. This would allow the company to concentrate on the quality of products. For the local market. Being an agricultural country. b. Lack on in-depth planning and research in the expansion to foreign markets. c. Jollibee could facilitate the technology provision while the partner could formulate the appropriate modus operandi to sell in the foreign market. Competition from both international companies and other local eateries. a. c. Wide variety of products offered in diverse markets. c. Jollibee was a regional industry leader that had experienced professionals as chief executives of the organization. The promising nature of international markets and also the available potential due to the migration of Filipinos in certain countries. locating commissaries in the same country through joint ventures could be a potential source of success for the company. OPPORTUNITIES THREATS a.
• Having the flexibility to cater to the tastes of its local consumers. He was successful over his three years. good. He always had the idea to be the first -mover into untapped markets as he believed that although you may incur losses in the initial years. the company will be able to restrict the entry of its competitors. These are the inability to gain access to technology and specialized know-how. which can be cross subsidized from Philippines operation. service and reasonable pricing. Potential entrants face entry barriers that will hinder them from entering the industry. a. thus making the competition stiffer. Moreover the total sales increased over 94. The fast food industry is highly competitive and price wars and marketing innovations are seen frequently. The rivalry is also centered on the key success factors of the industry.Jollibee was the first to enter the market. it faced new challenges. which are good food. Rivals are somewhat equal in capabilities and opportunities. Internationally well-established players like KFC and McDonalds had high brand values that Jollibee found difficult to compete with. His strategy of targeting expats had the risk of targeting a narrow segment. The lifestyle. But these do not show the whole picture of his strategy implementation.The chaotic strategy of investments unsupported by proper research failed costly for the company. During his time the total number of stores increased 65% to 205 from the end of 1993 to the end of 1996. He was successful in creating wealth and increasing the presence in countries that had less or no competition. There were instances of shutdown of stores due to mounting losses . which • Allowing it to price below its competitor. Very few companies can experience rapid growth like this. brand preference and . The threat of substitute products is considerable.5% over the same period These increases are dramatic. • Retaining tight control over operations management. Marketing Perspective Jollibee was able to attain a competitive advantage in Philippines over McDonald's by doing following things: • First mover advantage .a. As Jollibee entered international markets. Marketing Perspective Jollibee was able to attain a competitive advantage in Philippines over McDonald's by doing following things: • Jollibee was the first to enter the market. Local street food and high-end restaurants form two ends of a range of substitutes. Analysis of Tony Kitchner's Strategy In 1994 Tony Kitchner was hired to head the International Division. tastes and preferences of the expats was also not considered during international expansion.
b. economies of scale.quot. Recommendation Market research prior to entering new markets will help in avoiding the unprofitable ventures as in the Middle East.&. TARGETING EXPATS Kitchner's idea of &. Kitchner's decision to &. 2.quot.plant the flag&.quot.quot. capital requirements. rather than a strategically sound decision for the firm. rather than just being a first mover. undeveloped markets would not have brought the prestige needed to win the firm better partners. In order to compete on the level with multinationals.&. The company continues to build its competitive advantage through learning and by appealing to a broader audience.top 10 fast food brands in the world.quot.targeting expats&. .quot. allows the company to ease its transition into an unfamiliar market. Kitchner implemented a two-part international strategy which comprised of &. while generating resources for expansion. &. Although there is the risk of targeting too narrow of a segment. The concentrated marketing campaign allows the company to generate stable revenues that can be used to support Jollibee's entry into other segments. only showed that Jollibee knew how to repeat its success.quot. and strategically situated distribution channels. Jollibee's success in the niche market would allow it generate momentum for the company's expansion.planting the flag. Kitchner's desire to be first-mover in a number of small.customer loyalty. 1. In order to become one of the &.quot.Targeting expats&. Tony Kitchner was hired to build the global Jollibee brand with the dual goals of positioning Jollibee as an attractive partner. Recommendation: &.quot. Although Kitchner hoped to leverage Jollibee's competitive advantage by entering new geographic market.quot.quot. and &. will only lead Jollibee to become a global brand if: a.Planting the flag&. PLANT THE FLAG On the other hand.quot. reflected a desire to build an empire under his leadership.quot. Jollibee would have to take its performance to the next step and prove that it could continue to build its competitive advantage. while the popularity amongst expats could generate publicity and attract walk-in traffic from non-Filipinos. Jollibee correctly targets expats who have a need and want for the product and thus avoid repeating its mistake in the Middle East. Kitchner also neglected to consider the large transaction costs associated with establishing markets in new countries.targeting expats&.quot. his rapid expansion strategy was unfocused and poorly executed.
c. But during this same period. This is where there has to be collaboration between the marketing and finance department. net income. This implies that less of the current assets were tied up inventory. The feasibility (financial) of opening up a new store needs to be studied before going ahead with the decision. Also. On the other hand. they must reduce cost of sales.4% in 1992 to 12. Opening multiple stores at the same time will hurt the bottom line and will increase debt. During the period under study the cost of sales has increased at a faster pace than the sales increase. Opening new stores requires a lot of financing. all is not well with the financials of Jollibee. This had been possible only due to excellent operational control. Jollibee was able to compensate for this increase by corresponding increase in sales and hence this need not be a cause of concern. Jollibee has debt and some financial instability. sales had increased to 8. They must study markets to determine a location. Moreover operating income increased about 114% while net income increased over 100% during the same period. In addition. Jollibee should consider opening a store and giving it time to grow and turn a profit before it finances the opening of a new store. These increases are dramatic. During the same period the trade accounts receivables has increased from 8. By 1996. Also. Financial Management Perspective Jollibee's sales. total sales only increased about 28. Significantly Inventory decreased from about 11. Total assets increased over 230% in the same period. Operations Management Perspective From the very beginning Jollibee Foods Corporation had focused on delivering quality food and service at an affordable cost to the customers. the allocation of the financial resources needs to be done wisely and judiciously. They have 24 stores in foreign countries.7%. which account for roughly $9 million in sales. It took McDonald's 20 years for their international operations to account for 50% of total sales. buy furniture. which is not acceptable.57 billion which translates to a market share of more than 50% among all hamburger fast food chains. however it is not something they can't overcome. This escalation in the cost of sales must be brought under control Accounts payable and accrued expenses increased by about 156% from 94 to 96. and royalties and franchise fees has been increasing rapidly for the period under study.68 pesos per share from 94 to 96.7% in 1996. There was 28.b.5% in 96. purchase kitchen appliances. and train new managers and employees. Cost of sales has increased each year with an increase of about 46% from the end of 95 to the end of 96. One thing they should consider doing is slowing down expansion.9 million pesos of long-term debt outstanding at the end of year 1996. This is an encouraging sign as far as Jollibee is concerned and they will be able to pay off their debts and loans.5% in 1992 to just 7. earnings per share decreased 19% to 0. operating income. The total number of stores increased 65% to 205 from the end of 1993 to the end of 1996. The company has good internal financial resources but a certain code should be maintained in the relationship with the franchisee. .
This strategy paid off initially but slowly McDonalds caught up. Thus FSM became the point of contact between the local partner and the company. company logo etc.HIRING OF AN OUTSIDER: Hiring a professional as Vice President of international operations was a wise decision. But in this case the local partner was objecting to the presence of company employees. FSM was also responsible to send the weekly data of store sale to the company. Once Jollibee Food Corporation was well established in Philippines. But as the international operations grew. But due to their inexperience and wrong choice of partners they suffered losses in their initial foreign ventures. Kitchner implemented a good strategy of assigning the responsibility of opening of new stores to a Franchise Service Manager. • Strategy of varying the menu to local taste should be implemented. TTC's decision to expand overseas was a good bet. • In case of expanding the menu. ISSUES. Going in for franchising was a good decision because they lacked huge resources to open and run their own stores everywhere. To take on McDonalds. This helped avoid disputes of management of local stores. economies of scale and operational efficiency should be kept in mind. their knowledge of taste and preferences of the local population.They enjoyed a dominant position in the fast food market in Philippines until McDonalds entered the market. In Singapore there were too many partners thus hindering smooth operation. In a franchise arrangement standardisation of operations is the most essential factor. • Smooth supply chain management system should be put in place to increase efficiency and productivity. . they focused on their main asset. In Taiwan there were disputes over management of local operations. disputes arose between the parent company and international operations on various issues such as varying the menu according to local taste. a large hamburger named Champ which contained a wide hamburger patty as against Big Mac which had two small patties. RECOMMENDATIONS: • International operations should be completely separated from domestic ones. • Some items which increase inefficiency should be removed from the menu. But he did not get adequate support from the company management to implement his ideas. This helped them to monitor the performance of each of their stores. To maintain their market share and counter the growing popularity of McDonalds Big Mac sandwich they came up with their USP.
POLYCENTRISM AT JOLLIBEE The Jollibee Corporation follows the polycentric approach in partnerships. there are a variety of different laws and business practices that international companies have to consider. Jollibee ensures a service-oriented staff to man its outlets. Taiwan and Indonesia are case in point. When going for Polycentric partnership as a strategy it is only imperative that a certain amount of flexibility and autonomy be provided to partners.quot. The parent Filipino management at Jollibee was very keen on imposing themselves on the host management. The first step to successful International HRM is an understanding of cultural differences and developing appropriate means of addressing these differences Jollibee ensures that it provides top-notch services in all its outlets. has taken this a step further. However. Polycentrism at Jollibee 2. Thus we have analysed the case under the following heads: 1.fun and friendly environment&. needs of employees.d. and most of the key positions are held by family members. Jollibee's success can also be attributed to its organizational culture depicted through &. Training programs equip its staff with the necessary skills needed to better perform their tasks. The most significant difference between domestic and international human resource management (HRM) seems to be that with domestic HRM there is a common standard practice that most companies are familiar with. The cost of value creation could be greatly reduced using this method. there are other problems that Jollibee faces in the international expansion of its business. By hiring professionals to devise strategies for its store operations. Tony Kitchner's Kafkaesque Desires 1. and cultural imbalances can be reduced to a great extent. effective customer brand loyalty can be developed through human resource departments and the company's personnel.. whereas with international HRM.quot. The similarities between these two types of HRM can be found on a more practical level of managing employees. The Jollibee corp. and to ensure that they have the necessary resources to successfully complete their duties. Through stringent recruitment and selection procedures. Jollibee could operate properly in Brunei as there was a silent partner. Conflicts arose on day to day management issues. HR Perspective Regardless of location or culture. The Joint Ventures at Singapore. But this approach at Jollibee was perhaps not carried out effectively at Jollibee. Jollibee ensures loyalty among its staff members and this translates into better service performance and dedication toward serving the customers. A polycentric approach recruits host country nationals to manage subsidiaries while parent country nationals occupy key positions at corporate headquarters. Trust was lacking in the . Both serve to fulfil the goals. Jollibee is able to create a working environment that boosts high standards of professionalism and service excellence. Willing to pay above-average compensation.
by stealing employees from domestic operations— a poor first impression that lasted the duration of his career at Jollibee.quot. Kitchner ensured that his actions. He is a perfect example of the ‗sea gull manager. TONY KITCHNER'S KAFKAESQUE DESIRES In Tony Kitchner's case. The failure to gain access to these resources hindered International's ability to modify the logo. his leadership manifested both sharp professionalism and abysmal international expansion efforts. Instead of the formation of a transnational entity. store layout.quot. trying to resist parental control.quot. Rather than cultivate this fear. converting the company from one that looked like a neighbourhood chain to one with a multinational image. Kitchner should have recognized that the hostility coming from Domestic was underscored by a fear that their division would be eclipsed by International. Kitchner's institution of a dress code was apt. even if they were beneficial for the company. Practices that were built over 16 years were shoved into oblivion in a matter of months. His performance during his three year stint is a marked reflection of inherent superiority complex that is usually associated with Western expatriates.D and Finance were controlled by the Philippine operations. While his &. his approach created strained relations between his Philippine staff and the International staff. The coordination required to transfer core competencies or to pursue experience curves and location economies was lacking. Kitchner could have enlisted Domestic's support in his endeavours.planting flags&. Under the company's early divisional structure. Kitchner began creating a &. value-chain activities such as R&. In addition. which were potentially beneficial for Jollibee. Kitchner's three years could be summed up as a period of great ideas backed with too little research and foresight Although Tony Kitchner was hired to bring more structure to the International Division. He simply opened stores in various Asian cities on the assumption that Jollibee's success in the Philippines could be transplanted with little adaptation and these stores folded one after another as he discovered his error. and menu— modifications. would meet criticism from the domestic side. 2. By simply increasing communication.' Recommendations . what resulted was the formation of independent federations. approach reflected an interest in giving the company greater reach within its region. he failed to build the rapport needed to push forward the division's initiatives. in his three years as head of the company's International Operations. It would not be an exaggeration to opine that Kitchner was ‗culturally challenged'. Kitchner's egregious lack of planning and research made it a failure. Kitchner fostered tension within the organization and it was ultimately this contribution that led to his dismissal. Kitchner never really understood the organizational culture at Jollibee.relationships forged.world-class company&. By setting the stage for competition. Kitchner should have made it explicit that the International Division's success would have reflected on the company as a whole. He failed to realize that a bulk of his interventions at Jollibee was paradigm shifts.quot.
The creation of ‗departmental silos' have often resulted the fall of Goliaths in business. Small differences in management style and culture between the cooperating firms may become serious problems that make it difficult to create synergies. Noli Tingzon – A Fresh Look at Strategy The arrival of Noli Tingzon marks a critical juncture for Jollibee. in the short three year period he was in charge? 3. one of the pillars of the Jollibee brand be replaced by scathing competition. the company culture must be donned. Mr. Management Development: International Business is increasingly using Management Development as a strategic tool. How else could friendliness. A geocentric approach is the best way to utilize Human Resources. While the lower rungs of staffing can be citizens of the host country.D wing of Jollibee was not forthcoming in its interactions with International. where it will begin entering the US market. Jollibee needs a strong corporate culture. An effective MDP can build a unifying corporate culture by socializing new managers and partners into the norms and value systems of the firm. while navigating the challenges of conducting business in the United States. and informal management networks to assist in coordination and control. The key to Jollibee's success in Daly City will be its ability to find a local partner that can leverage its organizational advantage. The organizational culture was forgotten. Intra and inter unit communication cannot be ignored. Tony Kitchner was exhibiting his personal culture throughout. A cadre of international executives who feel at home working in multiple cultures is the need of the hour if Jollibee has to expand. 2. Facilitate inter unit cooperation: The R&.It is evident that Jollibee is following a transnational strategy. Three Options for Expansion . Tony Kitchner was perhaps the first person who was chosen regardless of nationality. which ultimately lead to poor financial performance. The recommendations from a HR perspective would be 1. Various out bound and internal training exercises should be carried out in the Jollibee facility to iron out differences and inflict comradeship. Seek the best people for key jobs throughout the organization regardless of nationality. A geocentric approach: Switch to a more flexible geocentric approach to staffing and partnerships. and the disaster that ensued was perhaps because of the overwhelming cultural myopia polycentricism imbibed. it can be convenient to use some specific procedures to predict whether the relationship might work. Knowledge Management cannot occur in its absence. Given the difficulty of identifying the organizational compatibility between two firms. Personal culture should be stripped. The use of external corporate trainers in this regard would definitely be a plus. the top level management should be people who have the expertise and the skill to push the operational effectiveness of Jollibee without having to compromise on organizational culture and effectiveness. It also needs to understand local cultures before expansion. All this can be achieved through a proper emphasis on Management Development.
However they would have to quickly add three to four stores to be competitive and cover costs. attract many customers. possibility of a 4th one. Jollibee should not seek to enter New Guinea at this time. Since the benefits offered by the local partner are uncertain and profit potential is low. but sales fell off during the week because the local Hong Kong people rarely frequented the Jollibee establishment. Jollibee are located near a very densely populated area. While the fourth store in Hong Kong represents a valuable learning opportunity.Raising the Standard New Entrant into 3 store fast food chain Tingzon offered to put up all capital required Hong Kong. HONG KONG: In Hong Kong. All of the managers resigned and many employees quit because the Chinese like to work for Chinese. High volume with Filipinos but not with residents (Chinese) 4th store location high traffic but few Filipinos California-Supporting the Settlers Success in Guam led them to believe US had potential Food Appealed to Filipinos and Americans Decided on Daly City-Large Filipino population Plans to appeal to Asian Americans and then Hispanic Americans Recommendations PAPUA NEW GUINEA: There are five million people in Papua New Guinea with extremely limited fast food options. which has a very loyal Filipino customer base. Either they will get the first mover advantage or they will sustain huge loss.Expanding the Base 3 Store already established. Jollibee can come in and set a high standard. These people gave them great business on the weekends. it will not generate the revenues needed to build a global empire. Catering to the local Chinese palette would allow Jollibee to build its competitive advantage by learning to balance flexibility in menu offerings with consistency . Also. there were tremendous problems with the Chinese stores. and scare future investors away. Papua New Guinea. There was also question as to whether the area could handle 20 stores. There was obvious friction between the Chinese and Filipino's.
German. Additionally. Italian. They were determined to gain recognition. it would be better for Jollibee to improve its current operations. Conclusion: Implementation Plan a. rather than to commit additional resources to a new store. Polish. Indian. New product-new market JFC could introduce new product develop targeting the foreign market. Increase depots in the domestic and other countries JFC could establish additional depot near Jollibee stores. In any given city a person can find Chinese. a success in cosmopolitan Hong Kong could give Jollibee the brand exposure it needs to attract better partners. However. United States is home to some of Jollibee's most formidable competitors. given the staffing issues and uncertainty involving the local Chinese customer. b. Spanish. American. They can also enter into joint venture agreement with other country in establishing new depot abroad. Additionally. they also discovered that there were many elements of their restaurants that appealed to Americans. Through this. Jollibee should concentrate on increasing the presence in international markets. and store locations which allowed it to become a cost leader in the Philippines. Japanese. c. Likewise. Jollibee was going to expand throughout California before it moved east. Such a measure will ensure the freshness and high quality of the products that they will deliver to the international stores. Jollibee does not have any real experience operating in a Western business environment. Americans like to try food of different cultures and there is no reason to believe that we will not try Filipino food. and other ethnic restaurants. it will be difficult for Jollibee to obtain access to the distribution channels. In addition. aside from its experience in Guam. suppliers. Another helpful aspect is the diversification of America. The new products that they had introduced in the Philippines could also be applicable to the international market. Greek. These stores should be particularly targeted towards the Filipinos working overseas. The international market will only need a good communication plan like . The intense competitive atmosphere of US fast food market will provide Jollibee tremendous opportunity of global learning. That is for JFC to be able to have ready knowledge about the external factors governing the country. they could be able to reduce logistics costs thus leading to cost efficiency. Furthermore.S and California is the best place to start from. But on the other hand. there was great support from Filipino-Americans. Maintaining market dominance To attain market dominance. There is very little reason to believe that Jollibee cannot successfully enter the fast food market in the United States. CALIFORNIA: It will be a very good idea to target the Asian community living in U. Similarly.across the global brand. As a late-mover. they could avoid high shifting cost from the Philippines to other countries.
From a handful of stores 32 years ago. As a suggestion. and creating loyal customers. owing to the financial constraints . Also. the other business units should focus on environment publicity. compared to Jollibee's ads for humanity and youth As the macro environment changes. potential acquisitions and new products to be developed. Expanding Market Coverage . JFC should communicate the company culture through company conventions to ensure that the company interests are achieved. For each of the other business units. The company should try to resolve the internal conflicts and should have a focused vision. good promotional plans in getting the newly introduced products known. Besides. In 1987. The Yumburger store In 1984. The group feels that company should take baby steps rather than the aggressive steps as those taken by Kitchner. Jollibee hit the P500 million sales mark.tailor made ads. getting it known. Thus was born the company that revolutionized fast food in the Philippines. thus broadening its capitalization and laying the groundwork fo r sustained expansion locally and beyond the Philippines. landing in the Top 500 Philippine Corporations. the transfer of the local taste buds would not be that quick going to international markets. It became the first Philippine fast food chain to break the P1 billion sales mark in 1989. and focusing on pushing products. The Jollibee Phenomenon Jollibee is a phenomenal success story: what began as a two-branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. PR articles. Jollibee became the first food service company to be listed in the Philippine Stock Exchange. Advertising campaigns though do not always have to be Jollibee sponsored. barely 10 years in the business. Jollibee landed into the country‘s Top 100 Corporations. Jollibee now boasts of more than 600 stores and over 50 international stores. the company should improve on its research and development from new markets. the company should be responding by aligning its strategy and structure according to these changes. Undisputed Leadership As the country‘s leading fast food chain.The company should try to ride on the learning curve and experience from different markets. In 1993. Jollibee has grown exponentially on all aspects on operation.
0% 693 743 -6. August 15. Filipinos always form long lines to the store.7% 996 980 1.3% 1. the company obtained the franchise of Delifrance.639 15.585 13.433 -8. 2011 The following are the highlights of JFC‘s results of operation for the quarter and six months ended June 30. These moves expanded Jollibee‘s penetration in the pizza-pasta and French cafe-bakery segments. The move gave it leadership in the Oriental quickservice restaurant segment. In 2000. It is made possible by well-trained teams that work in a culture of integrity and humility. Jollibee is so well-loved everytime a new store opens. A Triumph for and of the Filipino Jollibee dedicated its continuous success to the Filipinos who have been there from the very start. It is a stronghold of heritage and monument of Filipino victory. an international food company.5% 15.206 33. 2011 – Jollibee Foods Corporation (PSE: JFC) – Results for the quarter and six months ended June 30.5%. Net Income Lower by 4% Metro Manila.554 25.3% 1.853 1. Recipe for Success Jollibee‘s rapid growth is due to its superior menu line-up.435 -6. Jollibee is also committed to give back to its host communities through meaningful and lasting socio-civic projects.To achieve its long-term goal to be the country‘s food service leader.8% YTD June 30 % Change 2011 2010 vs LY 39. It is more than home for them.463 17.571 16.6% 29. fun and family-like.910 15. 2011: Quarter 2 % Change 2011 2010 vs LY 20.6% 715 744 -4. and efficient manufacturing and logistics facilities.314 1. Philippines. creative marketing programs. A year later. Jollibee acquired Greenwich Pizza in 1994.345 1. Investors THE JOLLIBEE GROUP OF COMPANIES JFC Sales Up 16.3% Financial Summary System Wide Retail Sales Revenues Net Operating Income Net Income Net Income Attributable to Equity Holders of the Parent . especially overseas. As a corporate citizen.836 0. the strategic acquisition of Chowking solidified the company‘s position as the dominant leader.9% 1.357 16.
Unsourced material may be challenged and removed. De Jesus Corporate Legal Counsel. Minana President . the free encyclopedia This article needs additional citations for verification. Allin Country Managing Director . Compliance Officer. Please help improve this article by adding citations to reliable sources.Corporate Human Resources Agatha Olga S. a measure of sales to cosumers.673 0. Revenues grew in line with system wide sales at 16.395 -9.728 0.6% -7.5% in the second quarter of 2011 compared to the same period last year. Vice President for Corporate Finance. except % change and Per Share Data Jollibee Foods Corporation. Net operating income in the second quarter increased by 1.269 1.0% *Amounts in PhP Millions.Red Ribbon Philippines Business Unit Ernesto Tanmantiong Treasurer. Chief Operating Officer.671 0.0% -9. (May 2011) . both from company-owned and franchised stores grew by 16. Corporate Information Officer Untiong Tan Corporate Secretary. Chief Executive Officer Ysmael V. Baysa Chief Finance Officer. Corporate Information Officer Jose A.China and Indonesia ollibee From Wikipedia. Tence Vice President . President.6% 1.Earnings per Common Share – Basic Earnings per Common Share – Diluted 0.403 1. Director Daniel Rafael Ramon Gomez Vice President of Corporate Marketing John Victor R. which was comparable to the flat growth achieved in the first quarter this year.Jollibee Philippines Joseph Tanbuntiong President . Director Thomas B.7%. the country‘s largest food service company disclosed today that its System Wide Sales.6% versus the same period last year.277 1. Officers and directors Tony Tan Caktiong Chairman of the Board.726 -7. Executive Vice President.
a fast-food restaurant chain based in the Philippines. Philippines 5th Floor.com.Jollibee Type Industry Founded Public (PSE: JFC) Restaurants 1978 in Quezon City. Pasig City. President & CEO Fast food US$ 1.2 million (2008) Chowking Greenwich Pizza Red Ribbon Mang Inasal jollibee.32 billion (2008) US$ 52. Among JFC's popular brands . Jollibee Plaza. Metro Manila. Emerald Ave. Founder. Philippines Key people Products Revenue Net income Tony Tan Caktiong.ph Subsidiaries Website Jollibee Foods Corporation/Leonardo Castillo Cuarteros (PSE: JFC) is the parent company of Jollibee. Headquarters Ortigas Center.
when both companies severed their ties.804 stores worldwide and total sales of more than US$1 billion as of December 2008. which is owned and operated by Euro-Med Laboratories Philippines. Chowking. Jollibee has become an increasingly profitable fast-food chain with 686 restaurants in the Philippines and 57 in other countries employing 29. Cubao under the Jollibee Foods Corp. Caffe Ti-amo. Red Ribbon. In addition to its subsidiaries.1 Expansion and acquisitions 2 Products and locations 3 Mascot 4 Jollitown TV show 5 Awards 6 References 7 External links  History . All former Délifrance branches now operate as CafeFrance. Since its inception. Inc. JFC has 1. Contents [hide] 1 History o 1. the first branch of Jollibee is still operating in Coronet.216 workers. JFC was the Philippine franchise holder of Délifrance until late2010. Mang Inasal (70%) and Burger King (54%) . Including all its brands. To date. Greenwich.are Jollibee.
the service transformed into a full self-service. Caktiong and his brothers and sisters engaged the services of a management consultant. Lumba created the product names "Yumburger" and "ChickenJoy". after his studies showed that a much larger market was waiting to be served. fast-food operation with drive-throughs. Caktiong and Lumba went on an observation tour in the United States. Not long after. attended food service and equipment conventions. Caktiong placed Lumba in charge of franchise development.  Expansion and acquisitions . He had the company incorporated and leased a house on Main St.Jollibee mascot In 1975 Tony Tan Caktiong and his family opened a Magnolia Ice Cream parlor in Cubao. Quezon City as the first headquarters. in Cubao. Lumba formulated a longterm marketing strategy: listing up a number of consumer promotions and traffic building schemes. Caktiong stressed that developing internal strengths was critical. Sometime in 1978. Lumba shifted the business focus from ice cream to burgers. Lumba became Caktiong's first business and management mentor. The Jollibee mascot was inspired by local and foreign children's books. Lumba. The stores were redesigned. Manuel C.
The sale is subject to the approval of China's Ministry of Commerce.8 million). a Filipino food chain specializing in barbecued chicken. On October 1.  Products and locations . In early 2006. in which Jollibee will have a 12% stake for $950. Jollibee acquired the Chinese fast-food chain Hongzhuangyuan.000. On October 19. Hong Kong The company acquired 80% of Greenwich Pizza in 1994.. equivalent to a 20% stake. Inc. Jollibee acquired a 54% stake in BK Titans.A Jollibee restaurant at Central. for P3 billion ($68. operators of the San Pin Wang beef noodle business for 30 million RMB. bought out the remaining shares of its partners in Greenwich Pizza Corp. enabling it to penetrate the pizza-pasta segment. Greenwich has established a strong presence in the food service industry. On August 26. Jollibee acquired Chinese fast food chain Yonghe Dawang for $22. Jollibee purchased 70% of Taipei restaurant Lao Dong in June and Chun Shui Tang tea house in 2006. allowing Jollibee to be part of the Asian quick service restaurant segment. the sole owner of the Burger King franchise in the Philippines. Jollibee formally signed a P2. Jollibee entered into a joint-venture contract with US-based Chow Fun Holdings LLC. Jollibee signed a deal to acquire 55 percent of China's Guangxi San Ping Wang Food and Beverage Management Co. In 2004. Jollibee Foods Corp. for P384 million in cash.. In 2007.. In 2000.5 billion ($55. Ltd. Jollibee acquired 70% share of Mang Inasal. 2011. The same month. the developer and owner of Jinja Bar Bistro in New Mexico. From a 50-branch operation. Ltd. 2008. the company acquired Chowking.5 million) deal with Beijingbased Hong Zhuang Yuan through its wholly owned subsidiary Jollibee Worldwide Pte.5 million. 2010.
Indonesia. it also has locations in the United States. Vietnam. In the Philippines. Jollibee serves Coca-Cola products for its beverages.International presence of Jollibee stores Jollibee is an American-style fast-food restaurant with Filipino-influenced dishes specializing in burgers. spaghetti. Name Year introduced Represents Field Appearance . Saudi Arabia. the large bee mascot dressed in a blazer. in overseas markets. Hong Kong. Currently the largest fast-food chain in the country. United Arab Emirates and Brunei. and chef's hat introduced by the brand in 1980 is probably the most widely recognized character in the Philippines. chicken and some local Filipino dishes. Asia o o o o o o o o o Brunei Hong Kong Indonesia Philippines (main hub) Saudi Arabia Taiwan United Arab Emirates Vietnam Qatar North America o United States  Mascot Jollibee. shirt. the chain serves Pepsi products.
Sundae Concerts. which airs Sundays.m. Jollitown. Hetty The chearleader and Popo the gym coach are the stars of the show. 2011. Jollitown. Jollibee Kids Party Concerts. Jollibee Kids Party (discontinued) (discontinued) Chickee Lady Moo Mico 1987 & 1993. Jollibee Kids Party Popo 1985 Hetty 1984 Jolly Spaghetti  Jollitown TV show Main article: Jollitown On April 13. Jollitown. Jollibee Kids Party Yum 1989 Hi-Technology Twirlie 1988 Jolly Twirl . Jollitown moved to ABS-CBN for its 4th season every Sunday at 9 am (every Sunday).Jollibee 1980 Main franchise mascot Mascot Appearance(Every Leader of Jollibee Weekends). The show left GMA on November 14. discontinued 1985. 9:30 a. and Jokes Cheerleader Concerts. Concerts. Sports . Jollibee and his friends Yum the scientist. On July 17. Jollitown. The timing was chosen to highlight Jollibee‘s 30th anniversary. 2010. Jollibee Kids Singing & Dancing and Jollibee Float Party Jolly Crispy Fries Games .  Awards . a children's television program called Jollitown was launched by Jollibee and friends. or 8:00 on GMA Network. The season's concept is based on Time traveling. discontinued 1993. Twirlie the star performer. 2008. discontinued Chickenjoy Milkshakes (discontinued) (discontinued) Milkshakes Champ Premium hamburger Yumburger (discontinued) (discontinued) Champ 1984 (discontinued) (discontinued) Concerts. Jollitown.
. • Introduction of Jollibee mascot debuts 1981 • Jollibee Foods Corporation enters list of Top 1000 Corporations. 1978 • Birth of Jollibee Foods Corporation • Jollibee Foods Corporation is incorporated as a 100% Filipino Company • Bakery is established in Cubao • Jollibee posts first year sales of P2 million 1979 • Introduction of Spaghetti Special • At Ronquillo Sta. It has consistently been mentioned as one of the Philippines' and Asia's most admired companies in surveys conducted by publications such as Asian Business Magazine and The Asian Wall Street Journal and has received other plaudits from Euromoney and Asia Money. • There were ten Jollibee stores at the end of the year 1982 • Jollibee pioneers the use of in-store promotions. In 2008. HISTORY of JOLLIBEE 1975 First to become the Jollibee outlet was when Mr. Tony Tan and his family opened a Magnolia Ice cream parlor at Cubao. • Mascots Champ and Hetty joined the Jollibee family • WEA gives Jollibee Gold record award for the outstanding sales of Jollibee songs. it was also the recipient of the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Awards. Cruz.Jollibee has won many accolades. novelty premium items and Kiddie Birthday packages for kids. • Introduction of Jollibee Palabok Fiesta 1983 • Launching of the Jollibee Langhap-Sarap TV ad Campaign • Chickee and Lady Moo join the Jollibee mascots 1984 • Launching of the Champ hamburger • Jollibee believes market leadership in local fast food industry and enters list of Top 500 Corporations. the first franchised owned store was opened 1980 • First TV commercial was launched by Jollibee • Chickenjoy and French Fries are launched by Jollibee.
Jollibee wins the 9th International Foods Award from El Comestible • Given by the Philippine Marketing Association. Jolly Hotdog. 1989 • Second Jollibee Brunei store opens • Balut and Ligaw TV commercials wins the Kidlat Award in the Service and Leisure Products category during the eleventh Philippine Ad Congress • Ffirst fast food chain to surpass billion-peso sales mark since Jollibee sales hit P1.Spain.3 billion marks 1990 • Coleslaw. Chickenjoy Take-Me-Out and Peach mango Pie to has been added to Jollibee's menu • Jollibee post sales of P1.8 billion • Tony Tan is awarded the Triple Award by AIM as Outstanding AIM Alumnus • Jollibee receives the Excellence in Marketing Management Award from the Asian Institute of Management 1991 • Jollibee‘s 100th store opens in Davao City • Jollibee opens a record high of 35 new stores . • Jollibee wins the Anvil Award for outstanding PR campaign in relation to the achievement of marketing objective with its Filipino Talents campaign. Tony Tan wins the Agora Award for entrepreneurship • Jollibee Foods Corporation has been included to the Top 250 Corporation list • First Jollibee international store in Taiwan has been opened • Chunky Chicken Sandwich has been added to the Jollibee menu 1987 • Second Taiwan Jollibeestore opens • Sales of 570 million pushes Jollibee into the elite Top 100 Corporations • Jollibee marks its entry into the global market as its opens its first fast food outlet in Brunei 1988 • Successful launching of Jolly Twirls softserve • Ffurther leading market share of 31% in the fast food industry and a dominant 57% share in the hamburger segment Jollibee system wide sales hit P921 million • Celebration of Jollibee's 10th year anniversary • Tony Tan is named one of the Ten Outstanding Manilans.1985 • Jollibee becomes the market leader of the fastfood industry • Introduction of Breakfast Joys • Langhap-Sarap awarded most successful ad campaign in the food category during the 9th Philippine Advertising Congress 1986 • In Barcelona.
and Jeddah. • Jollibee receives award for the outstanding Corporate Safety Consciousness Programs by the Safety Organization of the Philippines (SOP). Pasig 1994 • By the end of the year. JFC share are being sold for P20. • Jollibee successfully opens stores abroad: Guam. Jollibee has been cited as one of the leading companies in Asia 1995 • Jollibee acquires franchise of Delifrance • 20 more stores opened in the Philippines. 1992 • Jollibee sales hit the P3. Marketing launched its At Home Ako sa Jollibee ad campaign • Kiddie Pack Promo has been introduced • The new Main Office site has been moved to Jollibee Centre Building in Ortigas Center. a windfall or more than 135% • Improved softserve ice cream line by offering fruit flavored ice cream. Dubai. there has been already 148 Jollibee stores nationwide • With the achievment of Greenwich Pizza Corporation Jollibee expands into the pizza-pasta segment • By the Far Eastern Economic Review. Bulacan has been opened • By the Far Eastern Economic Review Jollibee has been cited again as one of the leading companies in Asia • The company reengineers its visual identity system .365 billion • Started using frozen patties for its popular hamburgers • Improved softserve ice cream line by offering fruit flavored ice cream • Acquired 73% if the Hamburger segment • Opened another store in Jakarta. and Kingdom of Saudi Arabia.65 billion • The Lola TV commercial wins the Grand Araw Award and an award of excellence for the promotion of Filipino Values during the Philippine Ad Congress. 1996 • 200th Jollibee store in Malolos. totaling to 2 stores in Indonesia • 112 Jollibee stores nationwide • Maintained its advantage over its competitors by acquiring more than 50% share of the fast food industry 1993 • July 13.00. • Ffocusing on Jollibee‘s loyal customers.• Opens 1st store outside Luzon in Cagayan de Oro City • Jollibee Pancakes and Jolly Meals has been launched • Jollibee sales hit an enormous P2. JFC was listed in the Philippine Stocks Exchange with an initial offering of P9. United Arab Emirates. bringing the total to 168.00 per share • October 1993. Kuwait.
It is a semi-self service restaurant and another Jollibee subsidiary. such as Maaga ang Pasko sa Jollibee and Chikiting Patrol: at Home Ako Dito.17 billion • Jollibee Xiamen located in the People‘s Republic of China has been opened • Jollibee launched "Kaya mo Kid" project which aims to instill positive values. surpassed only by global giants General Electric and Microsoft. These projects' main objective was to protect and contribute to the development of the Filipino children 1997 • System wide sales increased to P11. • The company reengineers its visual identity system • Launching of Jollibee's Amazing Aloha • Hong Kong opens its first Jollibee store • Jollibee launched various projects. before non-recurring charges.• Jollibee system wide sales increased to P8. • Systemwide sales reach P20 billion.11 billion. 2002 • Revenues neared the P27-billion mark. bringing the total to 300 stores. Number of stores exceeded 900.29 billion which translates to a market share of more than 50% among all hamburger fast food chains • Jollibee had 208 stores nationwide • Mary‘s Chicken was born last July 10. Network expanded to 800 restaurants.8% to 24. . Income. bringing the total to 381 stores • Jollibee obtains Chowking Foods Corporation • Far Eastern Economic Review ranked Jollibee as the Philippines' leading company for the 3rd straight year • Asian Business Magazine ranks Jollibee as the Most Admired Company in the Philippines and the 3rd over-all in Asia. 2001 • 400th Jollibee store in Intramuros has been opened • System wide sales rose to 18. to P959 million. • In Balagtas. Bulacan Jollibee opens its 300th store • Jollibee receives the ISO 9002 Certification for its frozen patty line • Jollibee wins the Employer of the Year Award 1999 • Opened 50 stores nationwide which makes a total of 350 stores • Cheezy Bacon Mushroom Burger has been introduced to its line of specialty burgers 2000 • 31 more Jollibee stores opened. which helps children achieve their dreams and ambitions 1998 • Jollibee opens in Daly City • Jollibee's 20th year anniversary celebration • Opened 62 stores nationwide.
and it was named as Jolibe. their hamburgers became a hit for a lot of Filipinos. the Far Eastern Economic Review ranked JFC as the Philippines' Leading Company. instead they sell ice creams. then visit Jollibee Food Corporation. Lumba suggested that to shift their business of ice cream parlor to hamburgers after his studies showed that a much larger market was waiting to get tapped.• Tony Tan made MAP "Management Man of the Year" 2003 • Jollibee store count closed to 988 stores nationwide. they have decided on incorporating some expansions and acquisitions. After this success. Jollibee also acquired Red Ribbon Bakeshop on 2005. Similarly. but what do we really know about the Jollibee Food Corporation? Where did Jollibee Food Corporation come from? When did Jollibee Food Corporation start? Who founded the Jollibee Food Corporation? Well here‘s a little history behind the most popular fast food chain in the Philippines. Lumba.com/gifts-articles/a-short-introduction-for-jollibee-foodcorporation-292013. Tony Tan Caktiong. Jollibee Food Corporation acquired the Délifrance which further expanded its penetration in the food service industry particularly in the French cafe-bakery. a growing segment of the Philippine food market. they decided on getting the services of a management consultant in the person of Manuel C. • For the sixth straight year. the Jollibee Food Corporation acquired Chowking. the Jollibee Food Corporation is considered to be the most popular choice among all the Filipinos. And did you know that the Jollibee Food Corporation wasn‘t selling fast food back in the days.articlesbase. Lumba next reformed the name Jolibe to Jolly Bee and made the two words form a single name Jollibee. But after sometime. another popular fast-food restaurant in the Philippines. was named the Ernst and Young‘s 2004 World Entrepreneur of the Year A Short Introduction for Jollibee Food Corporation Among all the fast food chains here in the Philippines. So there you have it.Because of the fame of the Jollibee Food Corporation. allowing Jollibee to be part of the oriental quick service restaurant segment. Then Lumba next created the product name "Yumburger" for their hamburgers as well as the name "Chickenjoy" for their—ah you what it is.html#ixzz1dfpXG9JK Under Creative Commons License: Attribution No Derivatives . In 2006.And sure enough. The Jollibee Food Corporation has been serving us with their delectable collection of fast food. the Chairman and Chief Executive Officer of the company. a small introduction of the history of Jollibee Food Corporation. 2004 Mr. For more information about the Jollibee Food Corporation. The Jollibee Food Corporation was founded by Tony Tan Caktiong and his family. Read more: http://www. On 2000.
What‘s the secret to the success of Jollibee? Is it the creative marketing and unique branding they‘ve pioneered in the the realm of fast food? Is it the focus on traditional Filipino culture and the fact that they try to still seem a ―local favorite‖ despite the fact that they‘re the nation‘s most prevalent restaurant? I‘d say it‘s a combination of all these things and more. that‘s what began in 1975 when Tony Tan Caktiong opened an ice cream shop in Cubao. According the the official Jollibee website.Who would have guessed that a giant cartoon bee character could become the national symbol for delicious. in less than 10 years. Though Jollibee began as an ice cream parlor. Jollibee reached the 500 million piso sales milestone.and being the first fast food chain in the Phlippines to do so. the Far Eastern Economic Review has judged Jollibee as ―The Most Admired Company‖ in the Philippines over the last 6 years. or your own personal favorite. . and becoming the first food service company to be listed in the Philippine Stock Exchange. affordable and fast food in the Philippines? Well. Additionally. it was the move to diversify to more types of food like hamburgers that really put them on the map. Today they satisfy the apetites of Filipinos everywhere with 600 stores in the Philippines and over 30 international stores. Other notable accomplishments include becoming part of the top 100 corporations in the Philippines in 1987. ready to serve you a Yumburger. in 1984. Another 5 years later in 1989. In every major area in the Philippines.reaching the 1 billion piso sales mark . Jollibee accomplished another amazing feat . one can count on multiple Jollibee‘s being around. Jollibee has indeed revolutionized the fast food industry in the Philippines. The results of his efforts has been nothing short of phenomenal. ChickenJoy. The prestigious award of ―World Entreprenuer of the Year‖ was given to founder Tony Tan Caktiong in 2004 for the inspiring work he‘s done. Quezon City.