Jollibee Foods Corp. (A): International Expansion Case Solution

2. How might the CAGE framework inform the decision to move into the various markets entered by Jollibee? Which moves make sense and which seem ill advised? Why?

The CAGE framework allows an organization to identify and highlight the cultural, administrative, geographic and economic differences or distances that exist between different countries that should be addressed and looked into when companies decide to expand globally and formulate strategies for international locations. The CAGE framework would have allowed Jollibee to identify the strengths and weaknesses of the expansion plans as well as understand how to run operations in different markets. The moves into Singapore and Taiwan were ill advised because of the cultural and administrative difference in management practices between the two countries was wide. In Taiwan, for instance, the partner wanted equal rights in running the business without understanding the company’s history or culture. The economic difference was also large as Jollibee experienced high operating costs as rentals increased. However, the company’s entry into Brunei was successful owing to the less distance between the administrative practices and culture. The venture in Brunei allowed Jollibee’s management to maintain operational control while blending in the local culture, with a ‘silent partner.’ The higher autonomy of control given Brunei’s overall cultural characteristics allowed the smooth running of this venture.

3. Evaluate the options facing Noli Tingzon at the end of the case. What would you propose and why?

Noli Tingzon was faced with three immediate options for growth in international markets, namely in Papua New Guinea, Hong Kong, and California. In Papua New Guinea, the Jollibee chain would face cultural differences and issues of underdevelopment and affordability on the part of the population. The country had recently severed ties with an international chain, which highlights the cultural conflict that may be existent. Further, expansion through opening store franchises at service stations, as suggested by the entrepreneur from New Papua New Guinea would dilute the brand image and weaken its identity as an international family restaurant.