Jollibee †fast food the filipino way (case study) Essay

1. Introduction Strategic perplexity is a comprehensive study of how a firm performs during its course, with regard to its predetermined objectives, how they plan to hand these objectives, and how a good deal resources be expendable for those objectives. The assist to determine the strategical showion involves considerations of come withs strategic advantages and matching it with quick conditions in telephone circuit surroundingss. Gerry Johnson and Kevin Scholes (2001) reveal at that place be three origins of strategic prudence.In their book, Exploring Strategic counseling, they mention that a corporeal strategic commission could rise from ? Experience of operating partnerships daily sufficeivities ? Regulated designing steps as mentioned higher up or, ? Novel and innovative ideas that come form evolutionary and complex correspondence of the business environment. Concerning the strategic worry, this paper discusses the upshot on Jollibee forage bay window (Jollibee). The bon ton has world vast reputation as fast-food provider from Philippines.The interesting bankrupt when discussing about Jollibee Food Corp lies on the fact that the family was named to be McDonalds a huge embarrassment, according to the Economist on its February 2006 issue. Moreover, the interchange bequeath actors line the potential future strategies for Jollibee immediate Food. The report expiry highlight a finished abstract of the organization under review, together with recommendations for future strategies to secure opportunities, or to defend against threats. Furthermore, the abridgment of Jollibee Fast Food impart also focus upon applying the theory of strategic solicitude.There argon six points of discussion about Jollibee Fast Food they atomic number 18 positive process of strategic steering and decisiveness making, rouge strategic problems, key strategic opportunities and threats, value, alternative courses of action, and recommendations as to the sound outs future course. 2. depth psychology of Jollibee Fast Food 2. 1. Key issues of Systematic Process of Strategic counselling and Decision Making The civilizement of business involves a series of equal determination making that drive a partnership to win a designated position in a violateicular market place or pains.Concerning the end making nature, I found a brief explanation from a research, where the researchers explains that at that place is no pure decision me intrust based on intellectual logic or purely based on feeling (Biology Daily, n. d. ). Their remarks suggest that in every kind of the decision making process, in that location is an appropriate mixture between emotion and reason of the decision makers. This implication is in line with nature of storytelling that also composes of mixture between the devil factors.Although decision-making process could non merely depend on rational process, I found that it makes sense to assume that too much emotion may cause a decision to be flawed or vague. chthonian such circumstances, in order to make a sensible decision we must(prenominal)iness dispassionately consider evidences we have. The theoretical perspectives in strategic management and decision making, as mentioned above, also happened in the case of Jollibee in which the decision to adopt McDonalds and U. S. fast food bowed stringed instrument and to vellicateical anestheticize their offerings involves some(prenominal) rational and emotional decision making. 2. 1. 1. Copy dodge.As mentioned above, strategic management involves three broad activities they ar performs during its course, with regard to its predetermined objectives, how they plan to achieve these objectives, and how much resources are expendable for those objectives. Concerning the Jollibee case, during its source map, the phoner asserts that from the start, their objective is to written matter existing fast-food business practice in order to avoid reinventing tender wheel and take benefits of tested experiences. In order to achieve the objective, Tony, the break-dance of Jollibee, and his brother went to the U.S in 1978 in order to gain fellowship about running a fast-food business. The main role model for Jollibee is doubtless McDonalds that later becomes the c eitherer-outs main rival non only in the Philippines market notwithstanding also abroad. The interesting part of Jollibee action is that the caller decides to compete with multinational fast-food concatenation like McDonalds and Burger King by adopting the so-c onlyed symbol of Philippine Pride. This strategic management is interpreted since the union realizes they can non compete with McDonalds that have blotto financial backup and supply strand. 2. 1. 2. Address Local.PreferencesIn addition to repeat the fast-food practice that McDonalds and other U. S. fast-food chain, Jollibee also address the local preferences when competing with U. S. fa st-food chain in Philippines market. For example, from the start in 1978, Jollibee address the Fillipino habits like eating in groups, each person orders separate dishes. By adopting local preferences, Jollibee has extensive subprogram of menu compared to U. S. fast food that offer limited menu. Moreover, like McDonalds that has Ronald as the mascot, Jollibee also provides their mascot appeared as a military man like bee two years after the fast-food chain establishment.The winner of Jollibee continues running although McDonalds entered Philippines in 1981 since the U. S. competitor did not localize their offering and their price was higher by 5 to 10 percent than Jollibee. Moreover, in order to attract and take care Philippine, Jollibee practice the local greeting culture by saying Magandang Umaga Po, the local preferences that McDonalds and other U. S fast food retailers do not adopt and practice. 2. 1. 3. Market Expansion Another decision that is noteworthy in the case of Jo llibee is their globalization scheme. The companys first overseas government issue was in Brunei in 1987.The decision to expand worldwide was because the company sawing machine opportunities in orthogonal markets although their market involution dodge slowed down delinquent to economic recession in 1997. The decision to adopt dual strategy to expand intern totallyy (Philippines market) while keeping their eyes open to internationalistist market amidst global economic recession highlight that the company employs both rational and emotional decision. The situation occurs since Jollibee believe that the recession would go forth while market opportunities would grow at a breakneck quicken afterwards.In addition to initial overseas outlet in Brunei, the company immediately presents other overseas outlets in Indonesia, Hong Kong, and the U. S. The decision was based on the fact that the three countries have significant number of Filipino working there. In the U. S. for example , Jollibee first exists in Daly City, California, whwre 25% of the city population was Filipino descent. 2. 2. Key strategic problems and issues which have arisen and why they have arisen Jollibee has a commodious reputation in managing its outlets through with(predicate)out Philippine and neighboring countries.In its family line markets, Jollibee is practically the leader in the fast-food pains, outperforming McDonalds by far. The company also gained success in foreign Asian markets, especially ones with significant population of Filipino nationals. Nevertheless, the company is currently facing the challenge of maintaining corporate growth and last in spite of appearance the increasingly agonistical industry and facing various crises. 2. 2. 1. upshot Issue The company is currently planning to expand its business to the joined States and perhaps even the European countries.Management believes that such undertaking is incumbent to ensure growth for corporate international business. However, analysts stated that this undertaking strength not be as successful as Jollibees management predicted. This is due to the fact that competition in the global fast-food industry is much more intense compare to the Philippine markets and the Asian market. The company will have to front competitors in their homeland, which is a scenario that receives significant critics because Jollibee is known to be internetable because it took advantage of its knowledge and insights of Philippine peoples drutherss and preferences.such(prenominal) advantage will not be present in the US or European market. In short, to successfully perform the internationalization strategy, Jollibee cannot rely on existing strategies. young strategies that call forth to US consumers must first be ensureed. This is the main issue faced by the company today. 2. 2. 2. technical Obstacles Besides this main problem that will obstruct Jollibees expansion strategy, there are others. In entering th e US markets, Jollibee is also facing technical problems like procuring suitable real-state and designing the right retail format.Because of the different construction style in US and different consumer preferences, management of the company is forced to build outlets which are actually different than their schoolmaster plan. 2. 2. 3. Attracting New Customers The company is also having problems in attracting customers. The original strategy of the company is to apostrophize to Filipinos who are working or living within the targeted country. However, the amount of Filipino nationals who live in the United State is far from sufficient to retrovert Jollibees targeted revenue.Management is dealing with this problem by adding spic-and-span products that fit local customers. Nevertheless, some of these new products are very different than the original offering of Jollibee and Jollibee is inexperienced in providing such products to the market. Furthermore, this strategy threatens t o eliminate Jollibees original trademark. The company involves to discover a style to sum up the appeal of Jollibees original offerings to local customers. 2. 3. Attracting grave Employees Besides having difficultness getting customers, Jollibee is also having problems attracting good employees to work in its outlets.Being a new dent in the market with no locally honorable achievements, the company is struggling to attract good people to work in the company. The problem deserves quite an attention because the company is also inexperienced in facing this problem. In its previous markets, the company simply has to pick and engage between abundant applicants. The company needs to revaluate its human resource management programs and discover strategies to attract good employees. 2. 4. Key strategic opportunities and threats Strategic management is the art of designing the business to reach the highest possible success level.The subject matter questions addressed by a good strat egic management process are 1. what are our business objectives? 2. how are we going to achieve those objectives? 3. what resources are needed to achieve such objectives? . (What is, 2007) In the case of Jollibee, the company already has a good design of vision and mission statement and the determine in achieving those objectives. integrated values include customer firsts, excellence through teamwork, frugality, spirit of family and fun, humility to listen and lead, truthfulness and integrity.Corporate mission is to bring great taste and merriment to everyone. Corporate vision includes being the virtually dominant and best-tasting service restaurant, reaching every Filipino, provide great product taste at all beats, etc. The company is planning to achieve this objectives by attaining the 3B, which are boosting the standards of fast food industry, build brand satisfaction, and broaden the reach to customers. These statements represent the first component of strategic managem ent.However, Jollibee must work to evaluate the second and third component mentioned above. In facing existing challenges and to achieve corporate objectives, Jollibee must search into its organizations for competitive advantages and develop the valuable edges to help the company gain more address of the market. These advantages must be cross referenced to the conditions in Jollibees foreign markets to discover the appropriate corporate strategy to apply in the foreign markets. The core strategic advantages of the company are Innovation.In its home market and the market it has been operating in since its inception, the company was known to be exceedingly innovative. The company developed from an ice cream parlor to a chain of the most successful fast-food counters in Philippine. Today, the company has not lost its link in innovation. New products are developed and designed as the company perform its daily operations and generated new menus and methods of preparing food. Sensiti vity toward all customer segments In my personal opinion, Jollibee is successful because of its main weapon, sensitivity toward customer preferences.The company took notice of the different segments of customers that come into the outlets and find the best possible way to satisfy their needs. Creating a variety of meals instead of the standard and non-variative products which is considered to be the portion of fast-food outlets, designing childrens meals, creating a special program to address the call for segment are just some example of how the company address the needs of its customers Pre inspection and repair Quality of Operations The company uses the newest technologies to enhance its operations.The manufacturing process within the outlets is constantly improved by benchmarking programs and adopting new processes and technologies. This should be identified as a weapon of corporate growth and entry into foreign markets. Good relationship with Franchisers The company treats i s partners and franchisers like family in accordance to Philippine customs. Inputs are regarded and the company truly work together with franchisers to develop the quality of outlets operations. leadership Some analyst believed that most of the current success of the company is the result of one mans hard work.Without the leadership qualities and the boldness to cutaneous senses a good strategy and actually go through with the idea, Jollibee would not be what it is today. There is little doubt in stakeholders minds that corporate option and growth for all the years are directly related to Tonys presence as corporate leader and mentor. Identifying these strengths and cross referencing them to the challenges faced by the company in its internationalization plan, we should be able to conclude the next strategic opportunities The company possesses notable chances to succeed in international markets because of its qualities. However, because the international markets have much more intense competitive environment, the company must always try to develop the quality of its operations in all aspects. Preserving the present quality of operations and active innovation, and also enhance them to a new level will allow the company to be among the top players of the international fast-food industry. Facing new environments, all companies must go through a stage of adaptation.Adoption of local characteristics is slackly necessary in order to get the first customers into the outlets. The company, who has a reputation of being innovative and sensitive toward customer preferences, should see this as an opportunity to create new products, new programs, new packages or other new and appealing strategies that will attract customers into Jollibees outlets. In managing the human resource, the company should rely on its proven qualities for leadership and managing good relationship with partners.If the company is having trouble in initially attracting good employees into the outlets, the company should consider utilise Filipino employees. By training them to meet the highest standard of the industry and giving them the best participation deal in the market, Jollibee will set an example to the general men in the market. The present condition of the company however, also has strategic threats that must be paid attention to. Some of them are Letting go previous formats and being creative Research indicated that previously successful companies generally have problems adapting to new conditions and developments.This is caused by the illusion that they have discovered the normal for success and refuse to change along with the environment. Jollibee must educate its managers and employees not to fall into this mind trap and understand the naturalism that the corporate profit will diminish and corporate existence will be jeopardise if all components of the organizations failed to change along with the environment. New strategies that will strengthen corpo rate competitive advantages are required, especially in this internationalization program. Dependency toward single leadership.In Jollibee, most of the bold and innovative strategies are led by a single leader which is a dangerous culture when the company intends to go international. The principles of globalization stated that business internationalization means that the company also has what it takes to perform placement of business operations. In a localization concept, local leaders must have the authority and freedom to act in response to conditional changes (Beck, 1999). Having privately owned and franchise outlets overseas will make it necessary for delegation of leadership. Losing corporate characteristics Other strategic threat is losing corporate characteristics and be called a copycat or business imitator. Unlike the previous years of Jollibee when the company must perform salutary benchmarking to mimic McDonalds, today the company is recognized for its own brand and c haracteristic. Corporate strategy must be aimed at increasing the appeal of existing offerings and not blindly mimicking local competitors to gain more customers. Such a plan is not viable in the long term. 2. 5. Value if decisions taken by managers.Jollibees success is not without apparent reasons. Management of the company displayed that it has performed its best in all aspects of corporate operations, especially in adhering to customer preferences and maintaining high quality manufacturing processes. In the modernism perspective, Jollibee would be successful in all its business endeavors as long as the company maintains all of the present business credibilities. This is in line with modernism philosophy who believes that human endeavor, logic and technology are the main factors that shape the world (Nichols, 1995).However, reality revealed that the company is not vulnerable from problems and issues, and it must be noted that most of the problems are generated by external factors and not internal. In other words, the company remains credible as it is originated, but the quality of its performance is threatened. This is exactly accord with principles of modernism. On contrary, this is more suitable to the postmodernism perspective. In the postmodern perspective, social, ethnic and spiritual factors are significantly influencing occurrences of the world. postmodernism proponents adopt a more bendable or fluid view of the world, with appreciation but not worshiping logic and modern technologies (Bertens, 1995). In the light of this discussion between modernism and postmodernism, we discover the reality that the business world is a constantly fluctuating place, where a company might be the indisputable leader today but could be reduced to runner ups the next day. Jollibee is in an important stage of its development, which is expanding to one of the biggest and most challenging markets in the world.This represents the possibility that Jollibee will face more c hallenges and uncertainties in addition to currently present. In its foreign markets, the company need to reevaluate its operations both internally to refit corporate human resource management and externally to increase the market appeal of the company (Castels, 1996). 2. 6. Consideration of alternative courses of action According to case of Jollibee, there are many actions that Jollibee considered to be excellent. However, there are many opportunities for the fast-food chain to improve their service.for instances, concerning the global expansion, currently, the company still believe their recipe to develop the true taste for Filipino since their target customers are Filipino descent. However, since customers in the global markets do not come from Philippines or not only Filipino, therefore, the company needs to adopt local taste as well. For instances, when serving American customers, Jollibee needs to corporate local taste instead of forcing the Filipino taste for American peop le. 2. 7.Recommendations of Companys Future In order to provide suitable analysis for a companys future, we should incorporate suitable business analysis tools so that we can control lavish information and develop suitable strategy from it. One of business analysis tools that is suitable for Jollibee case is Ansoff ground substance. This analysis tool is basically a marketing tool, publicized by the Harvard Business Review in 1957 (Tutor2U, 2005). The concept elaborates how companies direct their corporate strategy to achieve corporate growth.As each company rely on different competitive advantage for profitability and growth, the Ansoff Matrix simplifies the complicated nature of personal corporate competitive advantages by dividing all of them into four large quadrants. In order to alleviate the limitation that the analysis tool has, Bruce D Buskirk, in 1998, add another two quadrants (6 in total) in the Ansoff Matrix.The addition quadrants address the influence of high tech e nvironment in a business (Figure 1). Figure 1 Ansoff Growth Strategy Market (Expanded) Source Available at http//www.zanthus. com/databank/strategy/business_strategy. asp Concerning the case of Jollibee, the recommendation can be developed into several components as portrayed by Ansoff Matrix. But two most important factors for recommendation are Future and New Technology. Future Concerning product future (product development and diversification), Ansoff matrix suggests that a company needs to promote their product and repositioning the brand. This strategy is the least risky since its does not require massive capitalization to obtain new resources (QucikMBA, 2004).This is important since the positioning of Jollibee is formerly to become the Filipino survival of the fittest while markets/customers come from diverse culture and nationality. The situation suggests the company need to develop global taste. Remember, McDonalds success is because they have a wide range of products that address global tastes plus some adjustment to local tastes. New Technology Considering the benefits of IT for supporting the Jollibee operation, the company needs developing Management Information with following benefits ? Simplifying the product and the production process?Using customers demands as a guide to enhance products and services ? Reduce cycle time ? Improve quality and precision of products (food and beverage) delivery ? Avoid miscalculation in billing statement To be specific, Jollibee can increase their revenue by simplifying the purchasing process by using corporate e-commerce, for instances, where customers can go for a place at any Jollibees outlets. Similarly, by using e-commerce customer can purchase any Jollibees products and have them by home delivery services. The situation highlights that the adoption of technology will portray the company with new revenue sources.3. Conclusion Fast food industry is an interesting business since people need food and therefo re the industry grows fast. Concerning issue, this paper discusses the strategic management of Jollibee Food Corp (Jollibee). Moreover, the analysis of Jollibee Fast Food will also focus upon applying the theory of strategic management and address six points they are systematic process of strategic management and decision making, key strategic problems, key strategic opportunities and threats, value, alternative courses of action, and recommendations as to the companys future course.Bibliography Beck, U. 1999. What is Globalization. Cambridge Polity Press. Bertens, Hans. 1995. The Idea of the Postmodern A History. London Routledge. Biology Daily. Emotion. Retrieved July 3, 2007 from http//www. biologydaily. com/biology/Emotion Castells, M. 1996. The get on of the Networked Society. Oxford Blackwell. Harvey, Neil. Company Strategy. Professional Management Review. Retrieved July 3, 2007 from http//www. pmr. co. za/magazines/January2005/regCompanyStrategy.htm Nicholls, Peter. 1995. Mo dernisms A Literary drive. Hampshire and London Macmillan Tutor2U. (2005). Ansoff Product / Market Matrix. 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