Case Study - Jollibee

I. CASE BACKGROUND

* In 1975, started as an ice cream parlor run by the Chinese-Filipino Tan family

* In 1977, Jollibee had diversified into sandwiches after company President Tony Tan Caktiong realized that events triggered by the oil crisis would double the price of ice cream

* A year later, the family incorporated as Jollibee Foods Corporation.

* Jollibee expanded throughout the Philippines, financing all growth internally until 1993.

* Also in 1993, Jollibee went public, the Tan family, however, retained majority ownership and clearly controlled Jollibee.

* It acquired Greenwich Pizza Corporation in 1994 and entered into a joint venture with Deli France in 1995, thus, diversifying the company’s fast food offerings.

* The company’s first serious challenge arose in 1981 when McDonald’s entered the Philippines, urging TTC to concentrate on building a strong second-place position in the market.

* In 1986, Jollibee revoked the franchise agreement in Singapore due to poor operations management which led to relationship deterioration between Jollibee and local manager.

* Jollibee decided to dissolve partnership and pulled out of Taiwan in 1988 due to conflict and management issues.

* Successful joint venture in Brunei through the support of a silent investor which was also a local investor.

* TTC summed up lessons Jollibee had learned in its first international ventures; location and partner.

* In January 1994, TTC hired Tony Kitchner , an experienced outsider, as Vice President for International Operations.

* Between November 1994 and April 1997, the company opened 19 new stores in 8 new national markets.

* Around November 1996, TTC decided that he could no longer support Kitchner’s strategy of rapid expansion due to the continuing financial problems and most of the international stores were not profitable.

* Kitchner left Jollibee on February 1997; Jay Visco became interim head of the International...