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  • Essay / joint venture - 865

    Jollibee, a Philippines-based fast food chain owned and operated by the Chinese-Filipino Tan family which started as an ice cream parlor, has now diversified into sandwiches, burgers, chicken, etc. Building on its success in the Philippines, the company began expanding overseas to increase its market share globally. However, some problems caused some of its international activities to fail, such as partner incompatibility and location selection. After the organization was restructured, an internal conflict arose between its international division and the one based in the Philippines. Later, Jollibee's strategies were revisited, revealing international expansion opportunities to shape the direction of Jollibee's future internalization strategy. The most suitable place to grow is California, USA. Through Jollibee's success in Guam, they have gained experience and knowledge on ways of doing business in the United States, which can be applied when entering Daly City, California. Not only does this location have high Filipino concentrations, but it also has a relatively small number of fast food competitors. One of the investment options that can be used to enter California is franchising, as Jollibee has experience running its Franchise Services Managers division. Additionally, according to the IFA, approximately one in twelve businesses in the United States is a franchise business, with the fast food industry being the largest in the United States. Furthermore, joint venture can be one of the options since Jollibee managed to enter Brunei using this mode, although research shows a 47% failure rate. The company must own at least 50% of the shares to maintain a certain level of control and decision-making power. Additionally, Jollibee...... middle of paper ... would be feasible as the returns on investment may not be favorable. When the partner company is reputable in the targeted market, this can help expand marketing efforts and distribution networks, where the alliance can have greater bargaining power in contract negotiations such as supply contracts and purchasing agreements. For example, Jollibee can partner with a company that has tie-ups to source quality raw materials to ensure freshness and consistent supply for customer satisfaction and competitive advantages. Additionally, it allows Jollibee to create new products to penetrate new customer segments. This is because its partner company may have existing knowledge and expertise in certain products and services, as in the case of Starbucks, which partnered with PepsiCo to develop coffee drinks, and Dreyer's Ice Cream to sell a range coffee ice cream. Conclusion (100 words)