These factors or points encompassed: flavor food, a fun atmosphere, flexibility in catering to customer needs, and a focus on families. Jollied was TABLE to build and maintain a dominant position in the Philippines due to their consistency in operations. Jollied invested significant capital, which led to the growth of franchising and resulted in economies of scale in advertising and purchasing. When customers would decide to go to Jollied, they knew that no matter which location they went to, the service and food would be the same great quality as the previous Jollied location.
Jollied faced a major threat when McDonald’s entered their market. Within two years, McDonald’s had opened 6 locations and snatched a 27% market share of the fast food market ? within remarkTABLE range of Jolliness’s 32%. However, Jolliness’s competitive advantage was that they were mother to the greater tasting burger. Philippine consumers preferred the taste of Jolliness’s hamburger by a wide margin. Market research indicated that Filipinos still preferred Jollied burgers’ spicy taste to McDonald’s plain beef patty, so the
Champ’s (direct competitor to the PIBKAC) promotions focused on its taste, as well as its size. How would you evaluate Tony Kirsch needs effectiveness as the first head of Jolliness’s international division? Does his broad strategic thrust make sense? How effectively did he develop the organization to implement his priorities? Tony Kerchief was effective in his efforts to help the organization grow internationally. He had a new vision for Jollied, a vision which would only affect the international side Of business. He felt that it needed a different identity and capabilities.
He wanted to project an image of a world-class company. Kerchief stated that, “We had to look and act like a multinational, not like a local chain. You can’t have someone in a short-sleeved open-neck shirt asking a wealthy businessman to invest millions. ” Cheerer’s broad strategic thrust makes great sense while his strategy rested on two main themes – “targeting expects” and “planting the flag. ” Kerchief first believed that he could target the thousands of expatriate Filipinos in foreign countries, which would work well considering the large company brand name that it has established at home.
As a Canadian, if I were to live abroad, there are certain things would miss that I could only get from home. For example (even though it is no longer Canadian) Tim Horror’s, which is widely recognized as being one of Canada’s company’s. For those living outside of the country, they would miss the product and would consequently purchase their coffee if it were availTABLE in their new home country. Planting the flag also works because of the territories that it can conquer. This simply meaning spread out internationally and in as many countries as possible in order to be successful.
Between November 1994 and December 1996, the company entered 8 new national markets and opened 18 new stores. The flag was being planted. As Noel Tinning, how would you deal with the three options described at the end of the case? How would you implement your decision? Would recommend Tinning operate somewhere between the two recommendations and apply lessons learned from Jolliness’s prior international endeavors. Each foreign expansion opportunity must be horology evaluated to ensure a high likelihood of market and financial success.
In Papua New Guiana, there was virtually no fast food or decent places to eat. A poorly managed 3 store fast food chain had recently severed ties with an Australian chicken franchise. The original plan that Tony Kitchener had proposed was to open just one store in the capital city of Port Moresby. Noel Tinning believed that one store would only cover the costs to develop the market in New Guiana and that at least three or four stores needed to be opened. My recommendation would be to enter into a franchise agreement with Gill Salvos, because the benefits outweigh the risks.
The implementation would include drawing up a franchise agreement with Gill Salvos, finalize the locations of the five stores and as The Soft Skills for Global Managers says it best “Among the rarest of traits is the ability to balance the need for consistent corporate practices with the need for regional uniqueness. ” It was Tact’s dream to open Jollied stores in McDonald’s backyard and having already achieved success operating stores in Guam, an American territory,
