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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.

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