• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month
Page
  1. 1
    1
  2. 2
    2
  3. 3
    3
  4. 4
    4
  5. 5
    5
  6. 6
    6
  7. 7
    7
  8. 8
    8
  9. 9
    9
  10. 10
    10
  11. 11
    11
  12. 12
    12
  13. 13
    13
  14. 14
    14
  15. 15
    15

Jollibee Foods Coporation case study. there are some alternative strategies that JFC can use to better the strategic plan; they may be product-market strategy, or market entry strategy; or we can know as three types of strategies: substantive growth, lim

Extracts from this document...

Introduction

I. The possible alternative strategies and the most appropriate future strategy 1.1. Different types of strategy and the suitable types for JFC In the previous part of the report, we show the strategic plan for Jollibee Foods Coporation. However, there are some alternative strategies that JFC can use to better the strategic plan; they may be product-market strategy, or market entry strategy; or we can know as three types of strategies: substantive growth, limited growth, and retrenchment strategy. In the situation of JFC with the strategic plan suggested in part 1, we can pick up some strategies that are suitable for the plan, and they will be discussed after, they are: related diversification (substantive growth strategies), franchising (market entry strategy), and innovation (limited strategies). Why do we not choose any kind of retrenchment strategies? Withdrawal is a good idea if JFC has big problem in the Vietnam market, because it will reduce the loss in the company's capital in the future. However, this type of strategy is not suitable for JFC, because it will cause much trouble when exit the barrier. For example, the cost barriers include redundancy costs and the difficulty of selling assets; or the company may face political barriers such as defence from the government. The next 3 sub-parts will discuss about some other strategies which are rational with the company to use in strategic plan. 2.1.1 Related diversification Unrelated and related diversifications are two types of strategies in substantive growth strategies. However, in JFC situation, we should choose related diversification. Related diversification which takes form of vertical or horizontal integration is the development beyond the present product market, but still within the broad confines of the industry ... [it] ... therefore builds on the assets or activities which the firm has developed (HND Business, BS, 2004). JFC is now developing in Vietnam fast-food market; however, JFC is an international company which has more than 600 stores nationwide and over 30 international stores which could be found in America, US territories, Hong Kong, Brunei, Macau, and Vietnam. ...read more.

Middle

However, this kind of strategy requires much money and time on the search for competent candidates where the franchiser requires many outlets. Because the strategic plan of JFC at the moment is to widen the distribution network in Vietnam, so this strategy is capable to implement. Besides, if JFC is going to implement the follower strategy (innovation), the company has to respond to innovation by a competitor, either by introducing the same innovation itself. Thus, the company has to spend more time than the other strategies on investigating the innovation of the competitor, and the behavior of the consumers. It leads to the large sum of money spent on the researches and technologies. Since the strategy requires too much things, it is harder to implement than the other two strategies. 1.2.3. Acceptability to stakeholders When evaluating the 3 strategies, the company should think about the acceptability to stakeholders, which are financial considerations, customers, banks, government, the public, and risk. In financial considerations point of view, related diversification and innovation can increase the shareholder wealth, because JFC may earn a lot of money if the innovation is successfully applied and has a good reaction from other stakeholders like consumers, government or bank; and so do related diversification. On contrary, franchising strategy just only give JFC the money from copyrights, and increasing the value of brand name for JFC. However, if JFC continue to apply franchising strategy, the company can face fewer risks than that of the two other strategies. If the innovation of JFC does not meet the requirement of customers, banks, or government, it might be objected. 1.2.4. Synthesis of evaluation and the most appropriate future strategy From the investigation and discussion above, we have the table below to sum up which strategy is the most appropriate future strategy for Jollibee Foods Corporation. Table 2 - Evaluation of three strategies: related diversification, innovation, franchising (Mark: 1 - bad, 2 - normal, 3 - good) ...read more.

Conclusion

Functional managers Functional managers of both companies have the same mission which is to control all activities of their department. Production, Human resources, and Marketing are the three most improtant departments for both JFC and Wal-mart, and the roles and responsibilities of those managers are nearly the same. For example: Marketing managers identify, develop, and evaluate marketing strategy, based on knowledge of establishment objectives, market characteristics, and cost and markup factors. Then they formulate, direct and coordinate marketing activities and policies to promote products and services, working with the store managers. Besides, they use sales forecasting and strategic plan to ensure the sale and profitability of products, analyzing business developments and monitoring market trends. HR managers of both company have roles and responsibilities in recruitment, training, motivating their subordinates perform well. Because, services of two company are key factor to maintain customers, HR manager's roles become much more important. Employees For both company, employees response for the quality and quantity of the products having in the stores. Moreover, they have to follow the laws/rules of the company which are mentioned in the labour contract. For example: maintains good health, safety practices and attendance. Furthermore, both employees of the two company have to perform their assigned tasks well, save cost, materials, have ideas to improve technology, and maintain their relationship among workplace, etc. The number of employees of Wal-mart is very huge, more than 2 million employees, and they work in different function from JFC. For instance, in one Wal-mart supermarket has more than a hundred employees which take care about their divisional products, and they help consumers by answering the question from the consumers to find the products that their consumers need. REFFERENCE 1. Edexcel HNC & HND business, (2004) Business Strategy - first edition 2. Source: http://en.wikipedia.org/wiki/. Assessed on: 1.6.09 3. Source: http://www.tinthuongmai.vn/Trangchu/VN/tabid/66/CatID/139/ Assessed on: 29.05.09 4. Source: http://vietbao.vn/Kinh-te/Thi-truong-thuc-an-nhanh-Nguoi-dep-dang-ngu/ Assessed on: 30.05.09 5. Source: http://www.12manage.com/ Assessed on: 30.05.09 6. Source: http://www.jollibee.com.ph/index.php?/menu/noodles Assessed on: 2.06.09 7. Source: http://www.ojp.usdoj.gov/odp/docs/info99att2.pdf Assessed on: 2.06.09 ?? ?? ?? ?? 1 ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our AS and A Level Marketing & Research section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related AS and A Level Marketing & Research essays

  1. Marked by a teacher

    Marketing case studies - Asda and John Lewis

    3 star(s)

    I would say every john Lewis store is in a good location because they always get customers coming in to their stores. Promotion I would say that john Lewis wouldn't have to promote their goods because everybody knows what is expected of them.

  2. Constraints that can impact on the successful implementation of a business plan

    Businesses should take into account weather they are going to choose their suppliers because they are cheap or because they are environmentally sound and treat employees well.

  1. Marketing Analysis and Strategy Recommendation for Starbucks Coffee Company

    3.6 Social Cultural Factors Nationalism and cultural differences may result in recurrent problems on resource availability, product quality consistency and costs, which effect adversely to foreign operations. For instance, due to its population and potential of growth, China represents a grate opportunity of market.

  2. BTEC BUSINESS UNIT 2

    On the other hand if the secretary was asked to clean the toilets then this would be a job that does not relate to the job that the secretary does. Expects the worker to do his/her job The worker is expecting to do the job that he/she should be doing.

  1. For this assignment I have been asked to produce a new marketing strategy for ...

    Random sampling- this is when every one in the country has an equal chance of being picked. People are picked at random often by computer to complete a survey. The advantage of this is that very one has an equal chance of being picked, but there is there a chance

  2. Unit 11 M1 Analyse the ways in which relationship marketing activities can be used ...

    buy and even the type of products they buy so they know what promotional scheme they can send to the customer, it can be used as a profile prospecting where they can understand the segments needs so they can provide with products that are suitable needs.

  1. How the NHS and Tesco Use Market Research

    it is time consuming and cannot help the business in any way because the data collected is invalid. If Tesco and the NHS don?t use the research correctly they could get the research wrong and make a change in the business that wouldn?t benefit them, all the data they have

  2. P3: Explain how developments in the consumer market have impacted on food retailing

    want to live healthier life style, Supermarkets for example Tesco?s can find information about what information they need through the club card system, where they pick up new trend that are occurring in society and there is now a variety of different food ranges depending on how different people live their lives.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work