Business Strategy In The Global Environment Marketing Essay

Globalization does not only aggravate competition but opens new challenging business opportunities and investment. At this crucial time, every organization is aspiring to invade the international market. Such decisions require investment of large amount of capital outlays. It is now a major problem of every organisation on how to enter the international market. It is then vital that every company is equipped with.

As on group discussion we select an organization JOLLIBEE which is became the biggest restaurant chain in the Philippines.

THE PHILIPPINES NO.1 FAST FOOD CHAIN

Global Sourcing is currently the most popular strategy in corporate board rooms and our focus is to introduce Jollibee is on international level.

Robert Reich, a former Harvard Professor, quotes that “We are living through a transformation that will rearrange the politics and economics of the coming century”

(Book: The Work of Nations)

Dr. Steven Rhinesmith says “Going Global does not mean just doing business abroad”. Global Organisation also share and source resources on a global basis”

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(“A Manager’s Guide to Globalization”)

2.HISTORY AND PHENOMENON OF AN ORGANISATION JOLLIBEE:

Jollibee plays an important role in market Founded in 1975; Jollibee Foods Corporation quickly became the biggest restaurant chain in the Philippines. It started offering American-style fast food items that were prepared according to the Philippine taste. The consumers liked it very much and soon Jollibee became a house-hold name in the country. Its local roots were so strong that even McDonald’s, the global fast food giant, faced a tough competition when it entered the Philippine market in 1981. By mid 1980s, Jollibee established itself as the market leader in its domestic market and decided to expand overseas. Starting from neighboring countries, it later entered the US and China too. However, it could not replicate its success in the foreign markets. Subsequently, it decided to focus its international expansion on the US, China and India. Jollibee Foods Corporation operates a number of different concept restaurants in the Philippines, and beyond. From its core business, a McDonald’s like concept restaurant, Jollibee has expanded into a pizza chain, fast food Chinese restaurants, bakeries, breakfast bars, and a tea house. It now has 50 restaurants in 5 countries – and we continue to grow. The company competes well with multinationals in the Philippines, and has begun a large expansion into the international market, including China and the United States. The flagship brand, Jollibee, with its distinctive company mascot, a large red and yellow bumble bee, and additional product concepts dreams of becoming a global powerhouse in the restaurant industry.

Ref: (History derivated from www.jollibee.com.ph)

ACCORDING TO JOLLIBEES CHAIRMAN CEO TONY TAN CAKTIONG:

“Our profit growth numbers are modest but they represent a very strong performance in a world in crisis.”

Acording to Press release of Philippines

JOLLIBEE’S TONY TAN CAKTING HONOURED 5TH award for excellence

He won an award in 2004 “World Entrepreneur Of The Year because of his best performance and in 2002 he won Management Association of the Philippines’ “Man of the Year” Award.

(Press release article Philippines MANILA TIMES on December 11, 2007)

3.JOLLIBEE PLAYS A KEY SUCCESS ROLE IN A GLOBAL MARKET:

Jollibee’s rapid growth is due to its superior menu line-up, creative marketing programs, and efficient manufacturing and logistics facilities. It is made possible by well-trained teams that work in a culture of integrity and humility, fun and family-like.

As a corporate citizen, Jollibee is also committed to give back to its host communities through meaningful and lasting socio-civic projects.

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4.HOW JOLLIBEE ENTER IN A WESTERN MARKET:

A quick Analysis that Jollibee operates in will bring to light several important issues that it faces in different areas. The company started in 1975 and expanded quickly throughout the Philippines in 1983 Jollibee facing no serious challengers after while an entry of McDonalds change the entire system on that time JOLLIBEE invested heavily in advertising and facing lots of challenges on other side of Jollibee forces other players to innovate and cause changes in the industry and to minimize the company cost to increase its profitability.

To increase to interest of the buyers for differentiated products.

Tony kitchner used a policy ‘PLANT A FLAG’ strategy to expand Jollibee overseas.

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Targeting expats will lead Jollibee to became a global brand.

(Ref: http://www.docstoc.com/docs/14423409/Jollibee/)

5.RIVAL’S FIGHT MCDONALDS V/S JOLLIBEE:

(IMAGES EXTRACT FROM : www.jollibee.com.ph)

Article :

Personal notes on the Philippine economy, politics, governance, culture, media, sports and globalization

Wednesday, April 04, 2007

McDonalds versus Jollibee: globalization is two-way street

The bellyachers in our midst often look at globalization as cultural invasion. It’s understandable given the proliferation of Starbucks, McDonalds, Victoria’s Secrets in our midst. Generally, Filipinos love Starbucks and McDonalds but some fear these foreign cultural icons are destroying local culture. Right?

Wrong. It’s because interactions among cultures are dynamic. It’s often a two-way street. Consider Joel Stein’s observations in Time online:

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“The stuff you [the Americans] invented-in this culinary case, fast-food hamburgers, fried chicken, pizza and doughnuts-gets sent out into the world, is replicated by other countries and then comes back to you all crazied up, like a giant game of telephone. And if you hold that piece of Filipino fried chicken up to your ear and are really quiet, you can hear what the rest of the world thinks about us.”

His observations about the entry of Jollibee in the US market smacks of a cultural shock:

“Jollibee, with more than 1,400 stores in the Philippines and 11 branches in California, makes McDonald’s look like a funeral parlor. Its mascot is a jolly bee, and the restaurants are blindingly happy, all giant, shiny yellow blocks, as if they were designed by an architect from Legoland. Even if you gave Walt Disney all the ecstasy in the world, he would not have come up with this. America, according to Jollibee, is clearly a place of childlike optimism. Jollibee’s two most popular items are called the Yumburger and the Chickenjoy. The Yumburger has a weird, plasticky dollop of French dressing in the middle. The crisped-up French fries are dry inside and taste as if they weren’t just double fried but dunked in oil four or five times. The fried chicken is halfway decent, but the inflated, happy fakeness of Jollibee makes you feel that the only American its Filipino owners have ever seen is Pamela Anderson.”

But overall Stein seems to look at the entry of “foreign American” fastfood in America in a positive light, something that goes beyond the culinary:

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“All this foreign American food seems campy fun-bright, sweet, smiley and likable. Even in a world where so many hate and fear us, they still want to be like us. To them, it seems, we’re a happy, efficient, fun bunch of guys, even if we act like total jerks when it suits us. They’ve figured it out: we’re frat boys. And we like to eat like them.”

Posted by Dave Llorito at 1:51 AM

Labels: globalization

6.Jollibee’s Mission and Vision:

Improved access to Education for the youth;

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Leadership development for local organizations;

Livelihood programs for small farmers;

Environment-friendly initiatives; and 

To create and preserve wealth for members and all stakeholders To serve great tasting food, bringing the joy of eating to everyone.A professionally run, progressive business organization providing LIFE to its stakeholders and customers.

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L – livelihood

I – interdependence

F – financial development

E – enterprise development

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(Ref: www.jollibee.com.ph)

7.MAIN PURPOSE OF THE COMPANY:

The Three B’s to Attaining The Company Vision

We at Jollibee have always envisioned the company to become the dominant fast food chain in all the territories we operate in. This vision is the compass that guides us in carrying out our three B’s:

Boost the standards of the fast food industry

Build brand satisfactions; and

Broaden our reach to customers

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8. SOME STRATEGICAL PROBLEMS FACING JOLLIBEE:

What sources of competitive advantage was it able to develop against McDonald’s in its home market?

How was Jollibee able to build its dominant position in fast food in the Philippines?  

What are the advantages of bringing customers into the transformation process or technical core?

Where are the stock markets headed of Jollibee?(predictions declared via strategies below)

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What is the corporate social responsibility of Jollibee?

Do Strategies achieve world class standards (WCS) Business and Individual Success in Jollibee?

9.COMMENTATORS VIEWS ABOUT STRATEGIES:

Current research suggests that strategic planning and strategic thinking are

different sides of the same coin and each one on its own is necessary, but not

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sufficient for an efficient strategic management framework. Therefore, strategic

thinking and planning must work hand-in-hand in order to reap maximum

benefit.

Tasks for yasir and qaiser:

Reasons why to go Global

Strategies to go global

Challenges and limitations

Commentators views abt strategies

Answers of coloumn 8 above questions

Conclusion , References, Bibliography