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Jollibee

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Asian Social Science; Vol. 10, No. 21; 2014
ISSN 1911-2017
E-ISSN 1911-2025
Published by Canadian Center of Science and Education

The Situations of Sole Proprietorship, E-Commerce Entrepreneurs and
Trends in Their E-commerce: A Case Study in Thailand
Pattarawadee Permwanichagun1, Sumeth Kaenmanee1, Aree Naipinit1 & Thongphon Promsaka Na Sakolnakorn2
1

Faculty of Management Science, Khon Kaen University, Khon Kaen, Thailand

2

Institute for Peace Studies, Prince of Songkla University, Hat Yai Campus, Thailand

Correspondence: Pattarawadee Permwanichagun, Faculty of Management Science, Khon Kaen University, Khon
Kaen 40002, Thailand. E-mail: pattarawadee999@hotmail.com
Received: June 16, 2014 doi:10.5539/ass.v10n21p80 Accepted: September 4, 2014

Online Published: October 30, 2014

URL: http://dx.doi.org/10.5539/ass.v10n21p80

Abstract
The aim of this study is to examine the situations of sole proprietorship, e-commerce entrepreneurs and trends in their e-commerce. This study uses a mixed-method quantitative and qualitative approach for collecting the data.
The study finds that most sole proprietorships in e-commerce are owned females between 31 and 40 years old who are educated with a Bachelor’s degree (63.16%) and draw an income of 40,001–50,000 bahts per month
(approximate $1 USD = 33 bahts). Most of these sole proprietorships (66.59%) are located in the central part of
Thailand. These entrepreneurs spend more than eight hours a day on their businesses and supply their products by themselves. However, most of the problems faced by these sole proprietorship, e-commerce entrepreneurs involve the cost for investment in the business and the knowledge that is required in order to be an entrepreneur.
Nevertheless, the trend toward sole proprietorship, e-commerce entrepreneurs in Thailand will increase with the adaptation of mobile-commerce in Thai society.
Keywords: sole proprietorship, e-commerce, Thailand, entrepreneur
1. Introduction
Information technology (IT) is important in business, particularly the Internet, which directly connects producers and customers (Harpaz, 2002) who can communicate quickly and clearly in real time (Fillis & Wanger, 2005).
According to 2012 statistics, Internet users totaled about 2,405 million, or 34.27% of the world’s population
(Internet World Usage and Population Statistics, 2012). In Asia, Internet users totaled about 1,076 million, or
44.74% of the world’s population. These users are increasing in line with opportunities to develop business networks. Entrepreneurs who are selling goods in their shops can now use IT to sell even more online
(Damanpour, 2001; Santos, 2003) as their marketing increases from local to worldwide, in Thailand The number of Internet domain names worldwide in 2012 was about 63,705, Thailand has about 20 million Internet users, which constitutes approximately 30% of the total population. More than 57% of these users shop online
(National Electronics and Computer Technology Center, 2012). This way of doing business is known as electronic commerce (e-commerce). At present, e-commerce influences new entrepreneurs in Thailand because many businesses are now using IT to increase their sales (National Statistics, 2012). The capital investment factor is one reason for entrepreneurs’ decision to use IT in their business lines.
Thailand’s government implemented policies to expand e-commerce, such as IT and communication strategy planning (vol. II) during 2009–2013 and proposed e-commerce as a major strategy for commercial and social-economic innovation. It also invested in IT structural and industrial bases. E-commerce included the countrywide development of social media and network (Office of the Permanent Secretary of Ministry of
Information and Communication Technology, 2012). For the IT framework of policies between 2011 and 2020, the government has strategies for development planning, such as 1) the development of an infrastructure for IT and communications, 2) the development of human resources in IT and communications, 3) the use of innovative
IT and communication development for administrative needs and management of the government, 4) the use of
IT and communications to boost Thailand’s production, 5) the development and application of IT and communications for balancing the lives of the Thai people and 6) the development and application of IT and communications to support socio-economic growth and environmentally friendly activities (Ministry of
Information and Communication Technology, 2012).
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A sole proprietorship, as reported in the Ministry of Foreign Affairs’ business handbook (2011), is a business with a single owner with unlimited liability. Thus, a sole proprietorship is a small organization whose size makes it difficult to convince customers of its merits. In the business of e-commerce, the number of sole proprietorships has increased too fast; such businesses have too many products to promote via the Internet. Ratprasatporm and
Thienpreecha (2002) suggested that the businesses started by foreigners as sole proprietorships more than 10 years ago must achieve a track record before gaining a commercial registration certificate by government agencies. However, sole proprietorship, e-commerce entrepreneurs in Thailand started by making low-cost investments and launching a small business without registering for a license or certificate. In addition, Thai entrepreneurs have many questions about the direction and trend of business and how to improve themselves by using e-commerce to manage business. This paper seeks to evaluate the research questions pertaining to the situations of sole proprietorship, e-commerce entrepreneurs, and evaluate the trends in their e-commerce. Therefore, this study will lead to guidelines that sole proprietorship e-commerce entrepreneurs may use to enhance the development their business.
2. Objective
To examine the situations of sole proprietorship, e-commerce entrepreneurs and trends in their e-commerce.
3. Literature Reviews and Conceptual Framework
3.1 The Sole Proprietorship
A sole proprietor is a person who owns and run his or her business alone (IRS, 2014). A sole proprietor is a person who runs his or her own business and is personally responsible for its debts; such a business classification is popular because it is easy to set up and carries a low cost for a first investment. A sole proprietor only registers his or her business name for local licenses; then, after that, the business is ready to be run (Entrepreneurs, 2005).
However, sole proprietors have another definition. For example, a sole proprietorship is a one-person entity that is not registered with the state in order to exist. It is easy to set up, it easily avoids local registration requirements, does not carry a business license, and can avoid paying taxes on income (Inc., 2010). In addition, researchers conclude that a sole proprietorship means that the owner of a business is just one person; thus, its coverage of management and administration is limited to small- and medium-sized business management.
3.2 E-commerce Business
Technology acquisition can improve a firm’s performance (Kiyota & Okazaki, 2005). Technology management can help the owner of a business to meet his or her needs and increase the venture’s capacity by volume and variety of products (Brown, 2001). E-commerce is meant to be a conduit of economic activity by using the
Internet or via online transactions; for example; the sale of goods by using an Internet-based system and by transferring money through electronic banking (Bank of Thailand, 2008). E-commerce companies or online retailers involve seeing to the demands of the customer, logistics systems, seasonal fluctuations, inventory control and management and risk management, such as lost sales, customer decline, customer satisfaction, and financial control (Patil & Divekar, 2014). The benefit of e-commerce are that it can help entrepreneurs to be aware of day-to-day working and provide access to the working financials of the company. Further, suppliers and distributors can learn and have knowledge of selling price quotes and the goods of entrepreneurs by accessing the business’ home page. Customers can also visit entrepreneurs’ homepages to check selling prices, logistics, and shipment services (Reddy & Divekar, 2014).
3.3 Situations with E-commerce in Thailand
The Internet and e-commerce assist in boosting the organization’s performance (Feizollahi et al., 2014).
Phecharaburanin (2013) reported that, at present, e-commerce is very important to Thai society, just as it is in
Singapore and Japan, because the businesses can take responsibility for customers’ needs. The National
Economic and Social Office (2012) reported that, between 2005 and 2010, the percentage of children using the
Internet by the age of six increased from 12% in 2005 to 22.4% in 2010. At the same time, e-commerce with sole proprietorships and businesses using electronic sales channels increased 10.7% in 2005 to 16.5% in 2010. The main types of businesses in e-commerce were fashion (30.8), e-tickets (14.8%), books (13.3) and food and beverages (13.3%). Almost all customers between 25 and 49 years of age (about 68.8% of the total population) spent, via e-commerce, an average of 3,000 baht per person (approximately 1 USD = 31.5 baht). Sintrakranphon
(2008) explained that this modern business cannot be large-scale at this time, but it can eventually respond to customers’ needs in terms of values and lifestyles.

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3.4 Benefits of a Sole Proprietorship
The opportunity exists for small and medium businesses with a sole proprietorship in e-commence to apply their techniques of management, such as direct control of line production and marketing (Ongsakul & Kanitpong,
2007). In addition, Pattanakit Accounting Tax and Training (2013) described the strong points of sole proprietorship in Thailand as follows:
1) It is easy to settle a business deal. Simply register with the Department of Commercial Registration and the
Revenue Department.
2) The owner of the business has the authority to make decisions in policy planning and management.
3) It is easy to revoke a business deal if money is lost or if the deal is not a suitable investment.
4) It is easy to revoke business other than with the partnership and company.
5) The lack of the need to share the benefits.
6) The laws and taxes are not concentrated as they are for other businesses.
7) The tax expense is paid by the entrepreneurs or as a private tax; thus, it is not a business tax.
E-commerce and online stores are always open, around the clock and each day of the year; even while the company is closed at night, customers can visit the company store, browse products, and place their orders
(Tokokoo, 2010). The Business Research Sector (2012) reported the benefits of e-commerce to SME entrepreneurs, and the three main issues were as follows: 1) increasing the channel of marketing to deal all time and worldwide, 2) lower costs for contracts with customers and 3) widely distributed customer groups.
3.5 Detriments of a Sole Proprietorship
An e-commerce sole proprietorship may be comfortable for management, but it is actually difficult to manage customers because customers and entrepreneurs never have direct contact. This problem has caused the government to expand into the management of e-commerce systems (Ratprasatporn & Thienpreecha, 2002).
Many companies face difficulties in adopting e-commerce systems because e-commerce systems and this technology cannot be adopted by a firm and it carries a high cost of investment (Ali & Kurnia, 2010). In addition,
Chonkrin (2008) explained the weaknesses of sole proprietorship in Thailand as follows:
1) Most of the businesses do not have an organized system because the owner just wants to do business without any knowledge of management.
2) The situation involves increasing partnerships and investments, which is different from the sole proprietorship format.
3) There is the risk of debt because there is only one owner.
4) Business is delicate because management is run by only one person. Thus, if the owner becomes ill, the business slows or stops.
5) The business is reliable when doing transactions with large businesses or governments.
6) It is difficult to expand the business.
In addition, the obstacles of sole proprietorship using e-commerce faces problems in many countries, as Kun
(2000) explains. Examples include the obstacles that arise when using e-commerce for business in China, such as a lack of knowledge and entrepreneurship skills, unsatisfactory Internet network quality, incomplete online security and confidentiality and the inability to guarantee the security of online transactions, especially in terms of the mode of payment.
3.6 Conceptual Framework
Management
- Benefit of e-commerce
- Obstacles using e-commerce Sole proprietorship
E-Commerce Business
- Strong points of a sole proprietorship - Weak points of a sole proprietorship Figure 1. Conceptual framework
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From the literature reviews, researchers found that e-commerce carries both benefit and obstacles for entrepreneurship; however, it depends on the management of entrepreneurship to set up the guideline for this study. Therefore, researchers created a conceptual framework (Figure 1).
4. Methodology
This research effort uses a quantitative approach for collecting data in order to better understand the situations that involve sole proprietorship, e-commerce entrepreneurs in Thailand in order to discuss trends and forecasts.
4.1 The Sample
The study focuses on sole proprietorship, e-commerce entrepreneurs, based on information from the 1,200 questionnaires that were sent out. In total, 874 responses, or 72.83% of sole proprietorship, e-commerce entrepreneurs, were received. The researchers also interviewed three experts about e-commerce.
4.2 Tools for Collecting Data
After collecting the sole proprietorship, e-commerce entrepreneurs’ questionnaires, the information was used to structure interviews for collecting data from experts.
4.3 Scope of Content
In the research, the focus was on sole proprietorship, e-commerce entrepreneurs, and the collected information was used for considering the situation of the sole proprietors and their problems in forecasting the trends in their businesses. 4.4 Data Analysis
The analysis focused on the situation of sole proprietorship, e-commerce entrepreneurs, and its descriptive statistical analysis was combined with data from expert interviews for reflections on the opportunities and gaps in the business that could be used for forecasting the trends of the e-commerce conducted by the sole proprietorship, e-commerce entrepreneurs. In addition, researchers also performed regression analysis to study the success factors in the business of sole proprietorship. SWOT analysis was then applied to study the strengths, weaknesses, opportunities, and threats that affect the scenario.
5. Results and Discussion
The general information about sampling is that this research study submitted 1,200 questionnaires to sole proprietorship, e-commerce entrepreneurs, and the response and feedback to the researcher consisted of 874 questionnaires, or 72.83% of the original sampling.
5.1 Gender of Sampling
Most sole proprietorships in e-commerce are owned by females (67.39% versus 32.61% of males), so the results indicate that women like to select products and order products via the Internet (Rodgers & Harris, 2003).
Schimmerl (2005) explained that women’s e-commerce increased 2% in 1998–2000 and will continue to increase because the of women’s behavior as shoppers. A sole proprietorship will remain open for business if women customers are satisfied. Similarly, Ortega et al. (2008) explained that gender influences the type of e-commerce businesses, as women have more power as shoppers than men. Therefore, women are the main channel for e-commerce and the target group.
5.2 Age and Status of Sole Proprietorship E-commerce
In order, the age ranges of the samples were from 31 to 40 years (44.28%), 41 to 51 years (31.24%), 21 to 30 years (16.59), and less than 20 years (6.52%). Their marital status was 56.41% married, 39.13% single, 2.4% divorced, and 2.06% separated. Given that so many sole proprietorships in e-commerce belong to people of working age, this represents a big change in Thai society and shows how these entrepreneurs are adapting to modern business. MacGregor and Vrazalic (2004) explained the phenomenon by stating that entrepreneurs in modern business are adopting technology in response to the lifestyles of customers. Chammanee (2011) reported that the ages of customers who order products electronically range from 31 and 40, so the age ranges are similar between the entrepreneurs and customers, which increases the possibility that the producers will use the customers’ needs as the basis for their decision to start a business. The data present in the age range of 31-40 years indicates that it is a major group of sole proprietorships.
5.3 Education of Proprietorship E-commerce in Thailand
The educational level of the sole proprietorship, e-commerce entrepreneurs is as follows: bachelor’s degree,
63.16%; post-graduate, 18.42%; diploma, 14.19%; high school, 1.49%; primary school, 1.49%; and below
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primary school, 0.69%. Almost all sole proprietorship, e-commerce entrepreneurs in Thailand have a bachelor’s degree, so this study differs from the work of Mansor and Abidin (2010), who stated that, in Malaysia, the comparable percentage for a bachelor’s degree is about 22.5%, with almost 45% of the entrepreneurs obtaining the Sijil Pelajaran Malaysia (SPM), which is the Malaysian Certificate of Education. The most major educational group is the bachelor’s degree, so it is apparent that one’s level of education influences his or her choice to launch a sole proprietorship. A related report from the Electronic Transaction Department Agency (2014) stated that, among those who hold bachelor’s degrees, 60% use the Internet, so they’re spending more than 3.23 hours per day.
5.4 Income of Sole Proprietorship E-commerce in Thailand
Among sole proprietorships in Thailand, 36.16% generate an income of 40,001–50,000 baht per month ($1 USD
= 33 baht); 31.24% generate 30,001–40,000 baht; 13.50% generate more than 50,000 baht; 10.53% generate
20,001–30,000 baht; 4.92% generate less than 10,000 baht per month; and 3.66% generate 10,001–20,000 baht.
According to the Kasikron Research Center (2013), the opportunities for sole proprietorship e-commerce in
Thailand are increasing, as is the revenue. However, the income of sole proprietorship, e-commerce entrepreneurs is high, if compared to the 300-baht minimum wage in Thailand.
5.5 Type of Business with Sole Proprietorship E-commerce in Thailand
The sole proprietorships in e-commerce in the survey are classified by business as follows: 1) fashion, 42.56%; 2) computer electronics, 21.05%; 3) hotels and resorts, 7.21%; 4) furniture, 6.06%; 5) food and food products,
4.69%; 6) motor vehicles, 4.00%; 7) printing and office components, 3.32%; 8) medical and health, 3.20%; 9) education, 2.97%; 10) agriculture, 2.06%; 11) properties, 1.06%; 12) logistics 0.69%; and 13) insurance, 0.57%.
5.6 Experience of the Sole Proprietorship with E-commerce
In the survey, the type of sole proprietorships can be divided into the entrepreneurs doing business online
(65.22%) and entrepreneurs doing business online combined with a shop (34.78%). The business experience of the sole proprietors varied from 61.10% with more than five years to 29.29% with two to five years, to 9.61% with less than two years. Keawkityphong (2013) stated that the sole proprietorships in e-commerce in Thailand are good at adapting to technology so, at present, they are transforming e-commerce into m-commerce (m = mobile phone) and providing e-service to m-commerce users.
5.7 The Location of Sole Proprietorship with E-commerce
Most of these sole proprietorships are located in the central part of Thailand (66.59%), as well as in the northeast region (16.25%), the southern part (6.52%), the eastern part (3.32%) and the western part (2.97%).
Uphatumwiphanon (2012) made a strong point that, while e-commerce is not related to the actual location of a shop, location is still important for logistics and for distributing the products to the customers. This is why most of the entrepreneurs are located in the central part of the country. At present in Thailand, it is important to develop logistics to transfer products via air, train, car and ship.
5.8 Work Hours
Most sole proprietors work more than eight hours per day (48.05%), the next group works five to eight hours per day (44.51%), and others work one to four hour per day (7.44%). These times worked by sole proprietors are not specific because they are primarily contacted by e-mail and post boxes on the Internet.
5.9 Production Supply
The sole proprietors provide most of their products by themselves (79.18%); 14.30% are trademarked, so the company has production support, and 6.52% are family products. With many sole proprietorships having a contract with a trademark, they do not struggle with the supply chain. However, the problem with the production supply in Thailand is the customers’ confidence in sole proprietorships.
5.10 Decisions to Select Production
In a sole proprietorship, products are selected for many reasons: 42.22% due to the goods’ value to the target group; 29.98% as a result of quality; 15.79% the fact that it is a modern product; and 12.01% due to the utility of the product. In terms of pricing, entrepreneurs consider quality (43.36%), marketing strategies (23.23%), competitors (17.85%), discounts (9.04%), and higher prices for a quality product (6.52%).
5.11 Trend of Circulation with the Business of a Sole Proprietorship
As for the trend of circulation with the business of sole proprietorship, 57.89% of the respondents’ circulation increased more than it did last year and speaks to a rising trend for the coming year. In contrast, 42.11%
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answered that their circulation was lower than it was during the previous year because Thailand’s economic situation has a direct effect on customers’ orders. It is possible that the trends will increase after Thailand changes its situation.
5.12 Cost of the Business
The cost of business for entrepreneurs can be classified into the following four conditions:
1)
2)
3)
4)

Most of the sample (64.30%) invests more than 20% of their income in the business.
About 26.81% invests 16%–20%.
About 7.67% invests 5%–10%.
The cost of investing is higher than last year because the customer groups are increasing and there are many more channels with which to contact them.

5.13 The Problems of Sole Proprietorship with E-commerce
1)
2)
3)
4)
5)

Not having enough money or funds that are too illiquid to make an investment (75.06%)
Deficient knowledge and labor quality (11.09%)
Deficient quality of human resources (7.78%)
Deficient tools and the use of older technology (4.35%)
Deficient knowledge of suppliers (1.72%)

5.14 Competitive Environmental Effects on Success in an E-commerce Sole Proprietorship
Table 1. Success factors in a sole proprietorship business
Item
E-commerce has impacted business success
E-commerce has influenced customer acceptance
The customers’ acceptance has affected business success
The owner’s behavior has affected business successions
The owner’s knowledge has affected business successions
Government support has affected business successions
Government policy has affected business successions
Competitive environment has affected business successions
* significance p…...

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...researching, we can find that Jollibee is an American-style fast-food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes. In the Philippines, Jollibee serves Coca-Cola products for its beverages; in overseas markets, the chain serves Pepsi products. The Jollibee brand successfully incorporated into its line-up the Sweet & Sour Meatballs, Grilled Pork Tenders, Jollibee floats and Flavored Crispy Fries in 2011. It also introduces the Crunchy Chicken Burger and Chicken Nugget Crunchers to its chicken offerings. The charming thing for me is the brand also added the Corned Beef Pandesal, Chicken Sausages and Pancake Combos, and Hash Brown Burger to its breakfast line, and the Choco Crumble Sundae and Strawberry Sundae for dessert lovers. Thus, we can see that Jollibee is always progress until now. Core target group analysis in the selected market Jollibee principal business is the development operation and franchising of quick-service restaurants under the trade name “Jollibee.” However, Jollibee knows the food quality, service, price-value relationship, store location and ambience, and efficient operations continue to be critical elements of the Company’s success in the quick-service restaurant industry. The company president is Tony Tan Caktiong (better known as TTC). He started Jollibee in 1975 as an ice cream parlor owned and run by the Chinese-Filipino Tan family, he made Jollibee had diversified......

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Jollibee

...Jollibee Food Corporation Milestones / History 1975 * Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao. This is later to become the 1st Jollibee Outlet 1979 * Spaghetti Special is introduced * 1st Franchise owned store opens at Ronquillo Sta. Cruz. 1985 * Jollibee becomes the market leader of the fastfood industry. * Breakfast Joys are introduced. * Langhap-Sarap awarded most effective ad campaign in the food category during the 9th Philippine Advertising Congress. 1992 * Jollibee sales hit the P3.365 billion. * Started using frozen patties for its popular hamburgers. * Improved softserve ice cream line by offering fruit flavored ice cream. * Acquired 73% if the Hamburger segment. * Opened another store in Jakarta, totaling to 2 stores in Indonesia. * Jollibee have 112 stores nationwide. * Maintained its advantage over its competitors by acquiring more than 50% share of the fast food industry. 2004 * The Chairman and Chief Executive Officer of the company, Mr. Tony Tan Caktiong was named the Ernst and Young’s 2004 World Entrepreneur of the Year 2008 * JOLLIBEE bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Award held in Singapore. * JOLLIBEE bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain......

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Jollibee in America

...Brief History of the Company Jollibee was founded by Tony Tan Caktiong who was born and raised in Fujian, one of China’s poorest provinces. His family migrated to the Philippines to look for better opportunities and began cooking in a Chinese temple.  Because he spent so much time on the kitchen with his parents, he developed incredibly sensitive taste buds and learned his entrepreneurial mindset.  In 1975, when Tony was only 22, he used his family’s life savings to open two Ice Cream Parlors in Cubao, Quezon City.  The stores were very popular due to their fantastic customer service and generous scoops of delicious ice cream.  Tony wanted to expand his business and hired a management consultant Manuel Lumba who discovered people craved hot food, like hamburgers.  Despite the huge challenge of international companies such as McDonald’s, Tony transformed his ice cream shops into a burger chain.  By 1978, Jollibee was born.         Within its first year, Jollibee had sales of 2 million dollars.  They became a 100% Filipino owned company and opened 7 more restaurants.  The company started out with the Yumburger as their flagship product, but quickly added the Spaghetti Special in 1979.  One year later they launched another Filipino hit, the Chicken Joy and French fries. Within only 2 years of Jollibee’s existence they began opening franchises throughout the Philippines, expanding their reach and popularity.  By the end of the 1980’s Jollibee had added many options to their......

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Jollibee

...friendly atmosphere and operations similar to that of a “beehive,” Jollibee created a bee mascot which became popular to a point that children flocked to it when it was seen in public – an operations and marketing strategy which supported an increase in brand recognition. McDonald’s had more money, but Philippine consumers liked Jollibee burgers more. One large patty, rather than 2 small, appealed to consumers’ large appetites. McDonalds slowed foreign investment into the Philippines, leading to Jollibee able to broaden menu. By time McDonald’s came back and tried expanding, Jollibee already had 31 stores and dominant presence. Franchising (expanding) = larger economies of scale for advertising and purchasing = brand recognition. “If you’re an unknown brand entering a new country or city, you have trouble getting access to prime locations.” Wherewithal First mover in sector, establishing customer expectations and preferences. Used local resources and understanding of local preferences. McDonald’s massive internal economies of scale may have drawn down costs significantly in comparison to Jollibee, but the founded Jollibee consumers of the Philippines care not about costs implied to McDonald’s, so much as they are concerned for the taste of the actual burger. And with McDonald’s being such a giant conglomerate, it made little to no effort attempting to adapt to the preferences of the locals. Jollibee, on the other hand, adapted its menu accordingly, and took into......

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Jollibee Commissary

...Jollibee Commissary  Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of over 750 stores. A dominant market leader in the Philippines, Jollibee enjoys the lion’s share of the local market that is more than all the other multinational brands combined. The company has also embarked on an aggressive international expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei, firmly establishing itself as a growing international QSR player. The Jollibee Commissary System is ensuring the manufacture and distribution of safe and high- quality food in the most cost-efficient manner is made possible. There are three Commissary System sites: Santolan, Pasig City; Mandaue City, Cebu; and the central site in Canlubang, Laguna. The System, which operates 24/7, manages Jollibee’s total supply chain process. The Laguna commissary is the biggest and most advanced in the country and among Asia’s best. Operated by Zenith Foods Corporation (ZFC), a full subsidiary of Jollibee, the newest commissary is on a 6-hectare property in the Calmelray Industrial Park. Aided by custom-made mechanized equipment, the production lines are for the marinated Chicken Joy, frozen patties and pies, breads, sauces, hotdogs and other meat products, and dry blended goods. ZFC can service over 800 Jollibee and Greenwich stores as well. I first saw their vision and mission stated that it is to serve great tasting food, bringing the joy of eating to everyone.......

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Jollibee

...Jollibee is the dominant fast-food restaurant chain in the Philippines with over 60 percent share of the market. A survey revealed that 69 percent of Filipino respondents visited Jollibee more often, compared with only 16 percent for McDonald’s. Jollibee’s founder, Tony Tan, is ethnically Chinese. His family immigrated from China and his father worked as a cook in a Chinese temple. Mr Tan was just getting started with Jollibee when McDonald’s entered the market in 1981. His friends suggested that he apply for a McDonald’s franchise but he declined. Instead, Mr. Tan went on to develop his own chain that offers unique Filipino food, such as spaghetti with meat sauce topped with smoked fish, deep fried pork skin, bean curd, sliced boiled eggs and spring onions. In keeping with local tastes that appreciate food with lots of sugar and salt, Jollibee hamburgers are especially sweet. Beef is served with honey and rice and of course there are mango shake. Jollibee is recognised by its bee icon, which symbolises the Filipino spirit of light heartedness and happiness as well as representing a busy worker. Besides its flagship Jollibee restaurants, Jollibee Foods Corporation (JFC) also owns a chain of Chinese restaurants, Chowking, in the Philippines. But the importance of this chain is relatively low – only 2 percent of Filipino respondents in a poll replied that Chowking was their most visited restaurant. Over 25 years after Mr. Tan declined to become a franchisee of......

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Jollibee

...on Success and Management of ‘Jollibee Foods Corporation’ and Its Subsidaries In: Business and Management Research on Success and Management of ‘Jollibee Foods Corporation’ and Its Subsidaries RESEARCH on SUCCESS and MANAGEMENT of ‘JOLLIBEE FOODS CORPORATION’ and its SUBSIDARIES Prepared By: Date: May 3, 2012 Table of Contents 1. INTRODUCTION 3 2. ANALYSIS OF THE COMPANY’S STRATEGIES and MANAGEMENT 4 a. The Financial Statistics 4 b. The Problems and Challenges 5 3. EVALUATION & CONCLUSION 8 WORKS CITED 10   1. INTRODUCTION Jollibee Food Company was established after the oil crisis hit the ice-cream prices since the family company was mainly based on ice-cream production and sales. After Jollibee, one member of the family, decided to diversify into sandwiches; the product started to gain popularity. “The Tans’ hamburger, made to a home-style Philippine recipe developed by Tony’s chef father, quickly became a customer favorite. A year later, with five stores in metropolitan Manila, the family incorporated as Jollibee Foods Corporation.” (Bartlett, 2001) The rapid increase in the number of stores after such a short period indicated how successful Jollibee’s decision has been. In three years, the number stores were doubled and Jollibee had 11 stores. However, together with this success, the problems also started to arise. The entrance of McDonalds into Philippines market was one of the main problems that Jollibee had to deal with. In 1986,......

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Jollibee

...Executive Summary Founded in 1975, Jollibee Foods Corporation became one of the biggest restaurant chains in the Philippines. Jollibee offered American style fast food that was prepared according to Filipino taste. Jollibee became a sensation in the Philippines and a regular destination for the locals. However, Jollibee decided to go international, with hopes of expanding fast food operations into Asia. This analysis explains how competition influenced Jollibee’s domestic and international strategy, which later transformed the company into a global company .The company faced serious challenges with their international expansion. While early growth was prosperous and plentiful, but challenges arouse included conflicts with individual franchisees and conflicts between corporate divisions. This analysis first details Tony Kitchner's three years as the head of Jollibee's International Department. Secondly, describes the situation and company climate in which Noli Tingzon steps into immediately after his promotion. Next, is a brief description of Jollibee's mentality of Internationalization Jollibee Foods tends to try and follow. Finally, in question four there is an analysis of the three investment options available for Noli Tingzon to pursue as well as a recommendation for future expansion. 1.) Tony Kitchner came to Jollibee in 1994 to take charge of the International Division, and it seemed that he was successful over his three year tenure. There was clear expansion and...

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