comment on what you agree or disagree with in this article, which you can read more about Jollibee Foods Corporation (A) p. 239-241 and (B): International Expansion.

Jollibee Foods Corporation is a Filipino multinational chain of fast-food restaurants that has expanded rapidly in recent years, with a presence in over 30 countries. As Jollibee continues to grow, the company faces new opportunities and challenges in entering new markets and adapting to local preferences while maintaining its brand identity. Through these discussions, we will gain insights into the complex and dynamic nature of international expansion for fast-food chains like Jollibee.

Question 1

When a company decides to expand its marketing internationally, it must analyze market characteristics such as potential sales or market size, strategic importance, strengths of local resources, and cultural differences to develop an appropriate entry-market strategy. Jollibee, for example, uses the contractual agreement approach, which establishes long-term, non-equity relationships between a company and another in a foreign market. Contractual agreements typically involve the transfer of technology, processes, trademarks, and/or human skills, serving as a means of knowledge transfer rather than equity.When Kitchner assumed the position of vice-president, he reconstructed the international side and adopted a different management approach than the domestic side. To open franchises in new markets, Kitchner transferred responsibility to a Franchise Services Manager (FSM), who acts as the bridge between local operations and the international division. The FSM provides financial support and ensures quality and consistency throughout the decision-making process. This is an important form of vertical market integration. Franchising also offers an effective blend of skill centralization and operational decentralization, making it an increasingly important form of international marketing.

Question 2

Jollibee's success in Guam allowed them to learn how to do business in the United States. Specifically, Jollibee was able to gain insights into the local market dynamics, understand consumer preferences and tastes, and adapt its products and services accordingly. Jollibee also learned how to effectively manage its operations in a foreign market, such as hiring and training employees, managing supply chains, and complying with local regulations. Moreover, Jollibee's success in Guam also allowed them to gain credibility and recognition in the US market. This success demonstrated Jollibee's ability to successfully compete in a highly competitive market and proved its products and services were appealing to US consumers. This credibility and recognition could have contributed to Jollibee's ability to expand into other US markets, as well as other international markets, with greater ease and confidence.

Question 3

Thailand is known for having a highly competitive fast-food market, with many established local and international players already present. This could make it challenging for Jollibee to establish a strong foothold in the market and gain market share. Moreover, Thai consumers have diverse tastes and preferences, which may require Jollibee to customize its products and services to cater to the local market. Another potential factor is the regulatory environment in Thailand, which could pose challenges for Jollibee to enter the market. For instance, the Thai government has implemented various regulations to protect local businesses and industries, which could make it difficult for foreign companies to operate in the market.It is also possible that Jollibee has not yet found a suitable partner or franchisee in Thailand to help facilitate its entry into the market. Jollibee has typically relied on partnerships and franchise agreements to expand into new markets, so finding the right partner who shares its vision and values could be crucial for its success in Thailand.

Question 4

Whether Jollibee should enter the Thai market in the near future depends on various factors, including the company's goals, resources, and capabilities, as well as the market conditions and competition in Thailand. On one hand, entering the Thai market could provide Jollibee with new growth opportunities and expand its presence in Southeast Asia. Thailand has a large and growing population, with a fast-paced lifestyle that could be receptive to quick-service restaurants like Jollibee. Additionally, Thailand is a popular tourist destination, which could attract both domestic and international customers to Jollibee's restaurants. On the other hand, entering the Thai market could also present various challenges and risks. As mentioned earlier, the Thai fast-food market is highly competitive, with many established local and international players. This could make it challenging for Jollibee to differentiate itself and gain market share. Additionally, Thailand has diverse tastes and preferences, which could require Jollibee to invest heavily in research and development to develop products that appeal to local consumers