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Food Processing Industry

- Jollibee Foods Corporation began as an ice cream parlor in the Philippines but has since expanded to become the largest fast food chain in the country. It has overtaken McDonald's in the Philippines by adapting its menu to local tastes. - Jollibee is pursuing an aggressive international expansion strategy, with over 600 stores now located outside the Philippines in countries like China, USA, Vietnam, and others. However, expansion brings challenges related to supply chains, labor skills, and cultural differences. - Strong recruitment and training helps Jollibee maintain high service quality, but it has faced issues with trust and conflict between foreign and local managers in some international locations like Hong Kong and Taiwan. Adap

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Iliyas Ahmad Khan
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228 views

Food Processing Industry

- Jollibee Foods Corporation began as an ice cream parlor in the Philippines but has since expanded to become the largest fast food chain in the country. It has overtaken McDonald's in the Philippines by adapting its menu to local tastes. - Jollibee is pursuing an aggressive international expansion strategy, with over 600 stores now located outside the Philippines in countries like China, USA, Vietnam, and others. However, expansion brings challenges related to supply chains, labor skills, and cultural differences. - Strong recruitment and training helps Jollibee maintain high service quality, but it has faced issues with trust and conflict between foreign and local managers in some international locations like Hong Kong and Taiwan. Adap

Uploaded by

Iliyas Ahmad Khan
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Food Processing Industry

The Global Fast Food Restaurants industry is only one component of the wider food service sub-sector, including cafes, cafeterias, fullservice restaurants, casual dining, coffee shops, street stalls and takeout stands, with an estimated total revenue of about $1.86 trillion The industry is estimated to account for revenue of $706.7 billion or about 38.0% of the global food service sub-sector.

Developed nations will account for about 83.0% of total global industry revenue in 2012, led by the United States with 58.0% of total industry revenue. The industry is approaching saturation levels in some developed countries due to an oversupply of fast food businesses Health and obesity concerns also negatively affect the industry. However, growth in developing nations, particularly Asia, is benefiting major operators.

McDonalds', Yum! Brands, Doctor's Associates, and Burger King will account for about 23.5% of the available market share Several factors have contributed to a dramatic rise in food prices in recent years which had increase the cost of production to a large extent.

Jollibee Food Corporation


Jollibee Foods Corporation began as an ice cream parlor in the year 1975 and was run by the Chinese, Filipino Tan Family However, the entry of McDonald's in the Philippines in 1981 was a cause of concern for the Jollibee Jollibee overpasses McDonalds in Philippines by taking into consideration the local taste and preferences of Filipino

They are offering hamburgers and other fast food with a distinct Filipino flavor. For instance, Jolly Spaghetti has a sweet meat sauce with hotdog slices Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of more than 2060 stores. A dominant market leader in the Philippines, Jollibee enjoys the lions share of the local market that is more than all the other multinational brands combined

The company has also embarked on an aggressive international expansion plan, and currently has around 600 stores outside the Philippines China (400): planning to expand to 500 in 2014 USA (26) Vietnam (32) Brunei (11) Jeddah (7) Qatar, Hong Kong, and Kuwait (1 each)

International expansion strategy


Objective: Expand international operations to count for more than 50% total sales Current Strategy: Growth strategy: Jollibee uses globalization strategy to standardize the taste of their food worldwide and try to focus on serving the unique Philippine taste to the world. Horizontal integration: Jollibee acquired the Greenwich Pizza Corporation in 1994 and formed a joint venture with Deli France in 1995. However, these diversifications are not the main focus of the company as the Jollibee stores still generate about 85% of the revenue for the company.

Parenting strategy: The company follows a centralized organizational structure; all of the managers report to Tan directly, including the international division. The company also uses differentiation strategy as it adapts the fast food to suit the taste of the Filipinos and fix their main menu around the world

-Targeting Expat: Was aimed at allowing the

company to ease its transition into an unfamiliar market -Planting the Flag: Built stores in country that had little or no fast food presence

HRM practices at Jollibee


Stringent recruitment and selection process to get service oriented staff Willing to pay above average compensation Training program provided to get necessary skill for better performance Hire professional to device strategies for its store operation Singapore problem: No trust between Jollibee and the local manager Taiwan problem : Conflict due to lack of trust between partners

HR issue
There was difficulty in hiring foreign employee for international operation In Hong Kong Jollibee failed to hire several Chinese for its store crew Locally recruited Chinese manager also had difficulties working with Filipino managers and the conflict led to their resignation leaving the Hong Kong store with only Filipino managers

Operational excellence
The company used pre-fabricated material to construct stores, thus saving a substantial amount of time and money. The company had 16 commissaries that delivered to stores of the Jollibee Food Corporation These commissaries handled activities such as raw material and ingredient planning, warehousing, manufacturing of processed foods, distribution and logistics

Operational issue in expanding global


Supply chain and logistic issue Local raw material purchasing issue ( quality, price and availability) Labor skill of the host country

Issues in International expansion


Economic: High competition Price war High cost of production in other countries as compared to Philippines Exchange rate Tarrif and trade barrier

cultural
The products offered by the domestic firm would specifically meet the taste preferences of the local populations. The spices used in the preparation of the products would match the preferences of domestic consumers. The structure housing the restaurant, as well as the colors and ambiance of its interior, are consistent with the culture of the target market It should respond to customer preferences in terms of location, infrastructure, appreciated by the local populations when designing restaurants.

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