Introduction
Jollibee, a fast food company that was initially founded in 1975 as an ice cream parlor by Chinese-Filipino Tan family where it was diversified into sandwiches after the 1977 oil crisis that would double the price of ice cream that was realized by President Tony Tan Caktiong (also known as TTC). Jollibee has since trying to expand their business internationally since 1985 where they ventured into Singapore, Taiwan, Brunei and Indonesia but they were only able to maintain their franchise in Brunei whereas the other 3 countries has failed due to various reasons. Their motivation on moving their business offshore was because they foresaw opportunities in other Asian countries after their success over McDonald’s in Philippines in 1984 and also, they were curious how Jollibee would fare in other countries as there are some foreign businesspeople and some of their friends start to approach TTC for franchise rights in their countries. But the issues they were facing now are that they have three immediate growth opportunities what would shape the future of the company and does not know which one to choose.
Jollibee is currently targeting Papau New Guinea, Hong Kong and California as they foresee immediate growth opportunities over these 3 locations and believe it would shape their company’s future. The investment options they are facing are Papau New Guinea which arises when Gil Salvosa, a local New Guinea entrepreneur and Quality Assurance Manager, approached Tony Kitchner with the intention to gain franchise right as he believe Jollibee would be able to take much of the market shares from the Australian chicken restaurant franchise that was already there and also increase food and service quality at the same time. Second in...
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...uld not need to advertise too much because it is believed that the Filipinos over there will come due to their longing for home and the taste of comfort food as stated by Leon (2003). Third reason was by retaining the local taste of Jollibee menu which was proven as a success as supported by Conde (2005), Jollibee could still retain the values that built by them for a long time which is to promote respect for elders, patriotism and loyalty to the Filipino family in California, they were able to evoke the sentiment and patriotism in them which was also in line with TTC’s long-held belief that win them enormous prestige and publicity in the company’s birthplace. This way, practices that have been built for the last 16 years were able to retain and Jollibee will still able to expand without discarding it which was opposed by many Philippine staff back in Philippine.
Del Rio was established in 1933, and it is located in California. Its owners are Bob and Maria. Del Rio is an agricultural business where processed canned products and fresh produce are sold. Both owners have the same agricultural background which is why they are doing this business. They are running Del Rio successfully. When the world was going through a great depression, many businesses had tough time to survive. However, Del Rio Foods, Inc. was in stable condition even though they did not make a lot of money. From 1987 to 1990, their Income Statement shows that they had a steady increase in their net income each year. The CEO’s objective is to expand his business as far as into east coast. Del Rio acquired a couple of farms and built them as its main facility and a distributor. Joint venture was formed with few wholesalers and retail stores. Additionally, Cape Fear and Wilmington plants were bought to increase productivity. The mission statement, SWOT analysis, and action plan are discussed further.
TCBY has been a frozen treats product innovator from the day its first shop opened in Little Rock, Arkansas in 1981. The great-tasting, low-fat frozen yogurt concept received an enthusiastic response from an increasingly health-conscious public. Its trendy new product propelled the company to the forefront of franchising, and was the ‘first in a long line of ground-breaking menu items that anticipated consumer preferences and continually refreshed the TCBY concept’ (Conlin 2001, p. 133). But TCBY products are just one of the reasons that thousands of operators have concluded that a TCBY franchise is the preferred opportunity in branded frozen treats, and a dynamic partner in any co-branded concept. However, TCBY is facing a lot of problems, both internal and external, during the difficult period from the late 1980s to the early 1990s, especially the problem with its franchising system. The purpose of this report is to provide a comprehensive situation analysis of TCBY, with special reference to its franchising system, and identify several concerned issues of TCBY and its franchisees, and how these issues have negatively affected the relationship between them. Furthermore, this report also provides three recommendations in the attempt to diminish these concerned issues and better maintain the relationship between TCBY and its franchisees, and most importantly, help TCBY to increase the company’s performance and achieve their strategic goals in the next few years.
Despite the economically uncertainty Pret A Manger keeps on thriving in the U.S. fast food market. It’s growing fast, with huge success. Pret is proving to the world its a big threat in the sandwich industry. In 2011, U.S. sales up 40% from the year before, “the company’s overall profits grew by 37% in 2010, and annual workforce turnover is only 60%, compared to fast food industry averages of 300-400%.” (Smart Advantage)
• The franchisees could leverage the ICEDELIGHTS brand, product, training capabilities, and real estate experience once ICEDELIGHTS could provide the support
TP has grown from a single store in 1988 to the largest pizza chain in Spain. At the end of 1997 they had 399 stores and an estimated market share of 62% in Spain. But what made it so successful? There are several reasons for that in the TP concept:
BR was sold to Delta Foods in 1996 for US $2 billion. At this time, it was one of the largest fast-food chains in the world generating sales of US $6.8 billion. DF purchase of BR brought in a new cultural paradigm. DF is an individualistic, aggressive growth company with brands they believe are strong enough to support entry into new overseas markets without the need for local partnership. The DF strategy is one of direct acquisition and JV’s were not part of their strong suit. DF strategic implementation is based on hiring local managers directly or transferring seasoned managers from their soft drink and snack food divisions. The DF disdain for JVs is clearly reflected by their participation in only those JVs where local partnering was mandatory (e.g. China) to overcome regulatory barriers to entry. JVs had been the predominant strategy for BR which was unlike the DF outlook. Terralumen’s strategy was misaligned and out of sync with the DF strategy. This was unlike the complementarity that existed with BR’s strategy. This misalignment began to affect the JV relationship that had worked well with BR in the initial years. The failure of Terralumen and DF to recognize this fundamental cultural difference between their operational strategy styles i.e. Individualistic and Collectivism leads to their inability to proactively create steps for better alignment in the early period after acquisition, creating uncertainties and difficulties for both corporations. There is a lack of communication and virtually absence of trust between two new partners. DF appeared to be flexing its muscles in the relationship and using a more masculine approach compared to Terralumen’s more feminine approach. Both the corporations are strategically involved in a complex situation where they appear reluctant to address the issues at stake and move ahead together. The DF strategy of
“Going forward, the company is well positioned for future growth, and Nigel and his team remain focused on driving franchisee profitability and delivering shareholder value” shares Lead Director Raul Alvar...
In the article, it describes the benefits of Juan Valdez expanding in the United States. On the other hand, it shows how Starbucks will struggle in Colombia competing against an all Colombia company. Juan Valdez founding and operations are explain in the article. It also details how Starbucks uses new brands to keep customers going to the store. The article is a great example of international commerce in the world.
This particular case is about the implementation of the popular fast-food chain, Burger King, into the Japanese market. Despite its’ strong market position in other countries, Burger King has some difficulties to face within the Japanese market. In this report, my team and I will analyze Burger King’s current situation and problems and suggest alternatives.
The main challenge is to determine how Panera Bread can continue to achieve high growth rates in the future. Panera Bread is operating in an extremely high competitive restaurant market which forces the company to improve and to grow steadily for staying profitable. The company’s mission statement of putting “a loaf of bread in every arm” is just underlying Panera’s commitment for growing. They are now in a good financial situation and facing growth rates of up to 20% per year in a niche market that has a great growth potential. In the next 7 years the fast-casual market is expected to grow by 500% in sales to a total of $30 billion.
To somewhat focus on the food business in case of 3G capital by firstly acquiring Burger King then Heinz.
Business Environment – The firm is considered a coffee giant company that is a big brand in the business being able to expand aggressively in the market worldwide before it entered in New Zealand. But the business environment of this country is quite unimaginable for a US based company for it to venture without having a thorough marketing analysis covering all the risks in the venture considering the distance and the traditions which differs a lot in many countries thus making it very unique and incomparable. It is only when the company is able to come up with the correct strategy in entering the business that will make it thriving. Starbucks New Zealand entered the Kiwi market by way of franchise and joint ventures. They partnered with a very stable local business partner called The Restaurant Brands New Zealand Ltd. In this case, the company is able to hurdle the market barriers including business laws, taxation, physical set up, traditional and cultural differences that may come along the way. (Starbucks, 2012)
McDonald’s is one of the popular fast food chains in Hong Kong and the success of McDonald’s is due to it is able to create a homogeneous “global” culture that suit to the demands of a capitalist world. In Hong Kong, Time is money thus McDonald’s strategy is consistently fit to the fast food industry. The company has both economic strategy targeting at customer globally and locally.
Even though that Filipinos would greatly prefer rice-meals as a primary staple it is never too late to introduce a new product to the market. The food industry is primarily fueled by tastes and fads. The culture of the Filipino is when they like the food that they eat, regardless of the price they will keep on buying the product. Until their marginal utility for the products completely depleted, this is why the food industry is really fueled by tastes and buying behaviors.
By choosing to expand into markets later than other fast food restaurants Burger King hopes to avoid the problems of developing infrastructure and establishing a market base. For instance, by following McDonalds into Brazil, Burger King avoided the need to develop the infrastructure and mark...