Read the \"The Jollibee Phenomenon - A Philippine Multinational\" case study on

Question

Read the "The Jollibee Phenomenon - A Philippine Multinational" case study on page 378 in your text and respond to the following: What is the strategic rationale underlying Jollibee's entry into the Middle East and later the United States? Given that capital to fund expansion is limited, does it make more sense for Jollibee to expand its presence in existing geographical markets, or to expand into new geographical markets such as India? Support your position with one additional resource from either global EDGE or the Capella library. You must use proper APA references and in-text citations to identify both the textbook and your additional resource. Evaluate at least two other learners posts. Exporting and Growth for Small Businesses

Explanation / Answer

Jollibees is a food chain concreted on niche market at the beginning and they gradually started moving internationally. They focus on excellent operations management and unique taste of product and give competition to McDonalds. Movement to middle east as for their international expansion to try out middle east customers. But company didn’t study the market well and haven’t gave much space to analysis the competitors too. This results in business sluggishness in Middle east.

Their movement to US after having a learning experience of failure of middle east business and they moved with localised approach by seeking support from local vendors and local players. They tied up with local providers for running stores and create a brand awareness through the good marketing policies and thus become successful.

Capital fud limited opprtunity actually become a hindrance to many companies to go to a global phase.In case of Jollibees they try to expand market through. Kitchner, the head of operations began creating a “world-class company” by stealing employees or hiring from domestic operations. To attain more investment options the company itself divided to two strategic units one for domestic and other for international. Company organisational structure has also realigned in that format. Thus raised the fund through local supporter in mini franchisee model. They understand US market through better communication and reachout to customers with trusted brand image,at the same time they keep on doing good business at niche market and the profit get used for building capital in US like international markets.

Even company like Burger King food also use similar strategy to expand to APAC regions. Always study the market well and focus or mould your business in align to the requirement

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