Case6JollibeeFoodsCorporationJollibeeFANLiboCaseSynopsis(1)Thecaseopenswithatriggerissuefocusedonthreeinvestmentdecisionsfacingtheinternationaldivisionnewmanager,NoliTingzon.ThecasetracestheinternationalexpansionofJollibeeFoodsCorporation,aPhilippinebasedfastfoodcompanyledbyentrepreneurTonyTanCaktiong(orTTC);Thecasethendescribesthecompany’searlyhistoryunderTTC,gowingtodominantfastfoodcompanyinthePhilippinesandbeatingbackachallengefromMcDonald’sintheprocess.zIn1993,thecompany’sdecisiontocommittoamajorinternationalexpansion,ledbyTonyKitchner,hewasdismissedin1997.CaseSynopsis(2)Afteramajorrestructuringoftheinternationaldivision,TTChiresNoliTingzonasthenewgeneralmanagerofJollibee’sinternationaldivisionandaskshimtoreviewboththestrategyandorganizationthathispredecessorhasputinplace..ItisinthiscontextthatTingzonmustdecidewhethertoenterthesmallPNGmarketwherehewillbeafirstmover,toexpandintoHongKongwhereisanexistingbasebutsomeresistancetoJollibee’sPhilippines-basedfastfoodmodel,andaproposaltostakeaclaiminthehugeU.S.marketbyestablishinganoperationinCalifornia.(1)“”.1975TonyTanCaktiongTTCTTC19801993TonyKitchner(2)TingzonPNGAssignmentQuestions1.HowwouldJollibeeabletobuilditsdominantpositioninfastfoodinPhilippines?WhatsourcesofcompetitiveadvantagewasitabletodevelopagainstMcDonald’sinitshomemarket?2.HowwouldyouevaluateTonyKitchner’seffectivenessasthefirstheadofJollibee’sinternationaldivision?Doeshisbroadstrategicthrustmakesense?Howeffectivelydidhedeveloptheorganizationtoimplementhispriorities?3.AsNoliTingzon,howwouldyoudealwiththethreeoptionsdescribedattheendofthecase?Howwouldyouimplementyourdecision?QuestionOne:Philippines’SuccessHowwouldJollibeeabletobuilditsdominantpositioninfastfoodinPhilippines?WhatsourcesofcompetitiveadvantagewasitabletodevelopagainstMcDonald’sinitshomemarket?WhysuccessinPhilippinesWecanhavethefollowingfactfromthecase:ThefranchisingMarketinginvestmentinbuildingimageTheabilitytomanagevolumes,castandqualityFirstMoverAdvantages(FMA)Abilitytoadaptitsproducttolocalmarket.Localprideandnationalism1/FMAs)1.;2.;3.“”QuestionTwo:Kitchner’sPerformanceHowwouldyouevaluateTonyKitchner’seffectivenessasthefirstheadofJollibee’sinternationaldivision?Doeshisbroadstrategicthrustmakesense?Howeffectivelydidhedeveloptheorganizationtoimplementhispriorities?KitchnerKitchnerKitchnerKitchnerKitchner(1)(1)Strategically,heseemstohavethreemajorlegstohisinternationalexpansionagenda.Heexpressedas“plantingtheflag”,willingnesstorespondtodifferencesinnationaltastesandpreferences,andanichestrategythataimstoleverageJollibee’simageinoverseasPhilippines(targetingexpats).(1)Kitchner“”niche“”Kitchner2Kitchner“”“”(niche)818Kitchner19972Kitchner2KitchnerKitchnerKitchner11+--+-+--+-22+--3+-32-$200$300+-$90033+--28/10+--+-Kitchner3“”Kitchner4TTCKitchner19972KitchnerQuestionThreeAsNoliTingzon,howwouldyoudealwiththethreeoptionsdescribedattheendofthecase?Howwouldyouimplementyourdecision?TingzonTingzonKitchnerTingzonTingzon1.Tingzon3.1Tingzon+-+-24/101/23.2Tingzon+-+-+-24142.TingzonTingzon3.Tingzon(1)PNG——PNGKitchner2Tingzon3Tingzon——PNG20-504.KitchnerUpdateandImplicationUpdate19992001“2001200”200242002TTCTingzon“”strategicintent“”emergentstrategyplannedstrategy“”logicalincrementalism