International Business and Expansion Strategies: A Case Study of Jollibee

This presentation provides a case study of Jollibee, one of the biggest fast food chains in the Philippines, focusing on its international business and expansion strategies. It explores franchising, licensing, and direct export as entry modes, discusses competitive dynamics and the organizational structure of Jollibee, and emphasizes the importance of innovation in the food industry. The presentation also suggests potential online methods for growth. Suitable for business students studying international business and strategic management.

Business

Introduction
 International Business means commerce of products, technology, service, knowledge or capital
across national borders or can be said at a global level.
 It is also called as globalization. It consist of transactions of goods and services cross borders that
is in between two or more countries.
 Economic Resources contains people, capital and skills that can be transferred across borders with
the intention of producing physical goods and services like banking, construction and insurance.
 To start a business overseas the companies need to establish a separate market into global market.
 Jollibee is one of the biggest fast food chain established in Philippines.

Strategy Applied for Foreign Entry
 Franchising: It is a system where the parent company owner gives the right to an semi independent
owner (franchisees) to run the business in the original trade mark or to be identified with the
trademark in return of fees and royalty and to sell the products and services. Benefits for franchising
is it has low political risk and cost and this allows to company to simultaneously expands it's
business in different regions across the world.
 Licensing: It is an agreement that allows the foreign organisation to produce a proprietor' s product
but for a particular time duration in a specific market. In this home country(licensor) gives limited
rights and resources available to the host country(licensee). Benefit of licensing is the home country
gets an extra money for the technical know how and the services.
 Direct Export: This is the most common mode of entering into a foreign market. This works best
when the volume is small. In this strategy the home country uses their own resources that is capital,
people etc. to produce the goods and directly export it internationally having full control on the
distribution and profits generated.

Competitive Dynamics
 The competitive strategies primarily include the internal outlook that is meet the demands of the
customer's in the changing environment.
 For Jollibee Incorporation the basic motive should be to know the taste and preferences of the
customer's. As the product will only be competitive when it is according to the choices of the
people and their taste. Quality matters above everything.
 As the business is new the company has to take care of the customer's choices in only this way they
can attain success. To enter into the new market the company should put a tight control on the
operations of the management and the market.
 Basic research is must, and should be done regularly to keep a check on the market activities and
after knowing the demands and tastes the consumers prefer should be brought to them and should
be innovative that is different from what the other means those who are already there is offering to
them.
 Because that will be only reason the consumers will invest in the food that the company is offering .

Organisational Structure of Jollibee Food Corporation
 The organisational structure followed in Jollibee corporation is functional. In this type of structure
all the working of the company is divided into different functions such as marketing, HR, financial
and operations.
 Organisation is divided into different departments and each department is responsible for carrying
out some work.
 There are groups divided and the people working in one group are responsible to answer only one
person who is their boss.
 There are various benefits of using this structure in international expansion. It is used to organise
workers on the basis of specific skills and knowledge.
 Every department is specialised in something and they report to a single head who is called top
management. Jollibee is a multi-national company based in Philippines.
 It is in food business and sell a variety of dishes. It is expanding very fast and has a good market
share. The department of Jollibee can be divided into:

To be Continued
 Information Technology: It performs various functions related to company. There are various
benefits of using IT in business like it will reduce the cost of production, improves efficiency,
maximise profits, minimise waste and more. Better services can be provided to customers and they
can be reached more easily.
 Marketing: Marketing of a product means selling of goods and services to customers.
Advertisement will increase the sales of the company and good relations with the customers will
always benefit the company.
 Finance: It is related to keeping the proper records of the financial accounts of the company. It is
related to finding the proper source of funding institution. The main objective of finance department
is to get the right amount of fund at right time with lest interest rate.

Innovation
 It is very important for a company to do innovation so that company can compete in the changing
environment.
 Innovation gives a competitive edge to a company over others. Innovation can be done in many
things like in products, technology, methods and more.
 Good and innovative products will increase the company's market share and this will increase the
company's profits in future.
 Innovation in a product increases the demand of that product.
 Jollibee can do innovation in its various food items. Company can do innovation by:

To be Continued
Using online method:
 Jollibee can go into online sector to sell its food products. It has stores in different parts of country
and after expansion it can also deal in selling goods online.
 Goods can be marketed online as well as company can deliver goods at home.
 This way its market will increase and more people will purchase it products.
 Companies those who are giving home delivery of food item are growing very fast and people don't
have time to go and purchase goods from the market.

Conclusion
 From the above study it can be concluded that Jollibee Incorporation has the biggest food chain
across Philippines.
 Now the company wants to expand their business. So to expand the food chain business they have
to analyse many factors like how they will enter into the foreign market.
 Then in the report various methods are mentioned that is direct export, franchising, licensing and so
much more are there but the company chooses targeting the expatiates of the host country.

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