Jollibee Foods Corporation Case Study

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Jollibee Foods Corporation was founded by the Chinese-Filipino Tan Family in 1975. The company started as an ice cream seller, and then diversified into sandwiches in 1977. They were using the “Five Fs” strategy which includes friendliness, flavourful food, fun atmosphere, flexibility in customer needs, and focus on family. They decided to expand their businesses overseas in 1986 due to the chain’s success of Mc Donald’s. However, they faced some issues dealing with overseas businesses. The problem that Jollibee faced in Singapore franchise is that they had poor relationship with the local manager, which had caused them to lose the authority to check the operation of the franchise. The joint venture in Taiwan was failure because of the disappointing revenue and management issues. The country that I would like to expand my business is China. First of all, the industry growth very strong and the industry revenue have been growing at an annualized rate of 13.0% at 2008 to 2013. In addition, China has a dynamic and fast-growing economy. Based on the diagram below, China’s GDP has grown rapidly compared with other country. There are the 3 investment options which Jollibee Foods Corporation can use to expand their business which are franchising, joint venture and wholly owned subsidiaries. Franchising can help the company can reduce cost and risks of opening a foreign market on it owns. In addition, franchising is a good way to build a global presence quickly. Apart from that franchising creates another source of income for the franchisor and spread out the risk by multiple numbers of locations through people investment. Joint venture can let the firms easy to access to new markets and distributor network. Besides that, joint vent... ... middle of paper ... ..., prefaced by the honorific “Sir” or “Madam” is the requirement of employee to serve the each customer at the franchising country. By using the franchising, Jollibee have the ability to reduce the cost and risk of opening a store in China because the franchisee will assume those cost and risk, but it also a good way to help the franchisee to build a profitable operation at the short time period therefore Jollibee can build the global presence quickly at a relatively low cost and risk (课本). At a nutshell, Jollibee can expand their business to China by using Franchising because the trend of fast food market is increasing year by year. Besides that, China has the potential customer and larger opportunity to expand their business quickly. Lastly, Jollibee have a lot of experience doing the franchising oversea, it is a good opportunity for them to franchising in China.

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