Jollibee Foods Corporation’s Competitive Advantage

How would you evaluate Tony Cheerer’s effectiveness as the first head of Jolliness’s International division? Does his broad strategic thrust make sense? How effectively did he develop the organization to implement his priorities? Tony Kerchief was effective in his efforts to help the organization grow Internationally. He had a new violin for Jollied, a vision which would only affect the International side of business. He felt that It needed a different Identity and capabilities. He wanted to project an image of a world-class company. Kerchief dated that, “We had to look and act Eke a multinational, not Eke a local chain.

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You can have someone In a short-sleeved open-neck shirt asking a wealthy businessman to invest millions. ” Cheerer’s broad strategic thrust makes great sense while his strategy rested on two main themes – “targeting expects” and “planting the flag. ” 1 OFF foreign countries, which would work well considering the large company brand name that it has established at home. As a Canadian, if I were to live abroad, there are certain things I would miss that I could only get from home. For example (even Hough it is no longer Canadian) Tim Horror’s, which is widely recognized as being one of Canada’s company’s.

For those living outside of the country, they would miss the product and would consequently purchase their coffee if it were available in their new home country. Planting the flag also works because of the territories that it can conquer. This simply meaning spread out internationally and in as many countries as possible in order to be successful. Between November 1994 and December 1996, the company entered 8 new national markets and opened 18 new stores. The flag was being planted. As Nil Tinning, how would you deal with the three options described at the end of the case?

How would you implement your decision? I would recommend Tinning operate somewhere between the two recommendations and apply lessons learned from Jolliness’s prior international endeavors. Each foreign expansion opportunity must be thoroughly evaluated to ensure a high likelihood of market and financial success. In Papua New Guiana, there was virtually no fast food or decent places to eat. A poorly managed 3 store fast food chain had recently veered ties with an Australian chicken franchise. The original plan that Tony Kitchener had proposed was to open Just one store in the capital city of Port Moresby.

Nil Tinning believed that one store would only cover the costs to develop the market in New Guiana and that at least three or four stores needed to be opened. My recommendation would be to enter into a franchise agreement with Gill Salvos, because the benefits outweigh the risks. The implementation would include drawing up a franchise agreement with Gill Salvos, finalize the locations of the five stores and s The Soft Skills for Global Managers says it best “Among the rarest of traits is the ability to balance the need for consistent corporate practices with the need for regional uniqueness. It was Tact’s dream to open Jollied stores in McDonald’s backyard and having already achieved success operating stores in Guam, an American territory, expanding to California seemed like a no-brainier. California has both a large Filipino expatriate population and Asian population. However, with any expansion opportunity, Jollied must thoroughly assess market potential before asking a decision.

If the results of the analysis indicate California is a good expansion opportunity, we would recommend Tinning move forward with opening one store in California first to pilot the appeal of their existing menu offerings and assess whether the U. S. Market can be supported from the Philippines. The benefits of Jollied entering the market in California would be to offer a substitute product and competition to the other fast food chains, create brand loyalty among the Filipino and Asian customers, and open the door to further expansion in California.