Jollibee Foods Corporations (A) International Expansion Case Solution

1. What are the key drivers of Jollibee’s success in their home market?

Jollibee grew from two stores in 1975 to a total of 205 stores in 1996 in the Philippines. Jollibee developed a philosophy revolving around five F’s that formed a basis for its success in the local market. These five F’s included friendliness, flavorful food, fun atmosphere, flexibility in catering to customer needs, and a focus on families. These helped the company develop a strong brand image in the local market, and brand recall grew amongst the customers in the Philippines. Moreover, the company’s emphasis on operations management led it to function as a well-oiled machine whereby day-to-day operations were closely monitored. The taste of the Jollibee hamburger was another key driver for growth in the local market. The Philippine customer preferred this taste over other competitors inclusive of Mc Donald’s. The broadening of the core menu and the addition of other items also drove growth through the added variety of the menu offerings.

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 is a highly useful tool for managers when it comes to decision making related to global operations or internationalization for organizations. The framework identifies differences regarding culture, administration, geography and economy between countries. These should be taken into consideration before strategies are designed relevant to the entrance into newer markets. Jollibee can adopt the framework and utilize it for the same purpose when entering new markets since it gives a holistic picture. The cultural distances regarding language, ethnicities, religion, values, etc. need to be taken into consideration for e.g. in Muslim countries pork is not allowed, and therefore, menus need to be designed keeping such information in mind. Various cultural differences dictate the eating habits, spending habits, lifestyles of consumers that Jollibee should aim to understand and target these markets accordingly. Administrative differences also exist in many countries regarding political hostility, lack of common currency, etc.