BANKING ACADEMY, HANOI BTEC HND IN BUSINESS (FINANCE)

ASSIGNMENT COVER SHEET

NAME OF STUDENT Nguyen Thi Thanh Thuy _Smile_F01-DREGISTRATION NO. ITP1133UNIT TITLE Unit 7: Business StrategyASSIGNMENT TITLE Strategy Evaluation, Selection and Implementation ASSIGNMENT NO 2 of 2NAME OF ASSESSOR Mr. George KencanaSUBMISSION DEADLINE April 19th, 2010

I, Nguyen Thi Thanh Thuy hereby confirm that this assignment is my own work and not copied or plagiarized from any source. I have referenced the sources from which information is obtained by me for this assignment.

________________________________ ______April 19th, 2010_______

Signature Date

----------------------------------------------------------------------------------------------------------------FOR OFFICIAL USE (Course Administrator)

Assignment Received By: Date:

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Unit Outcomes

OutcomeEvidence for

the criteria

FeedbackAssessor’s

decisionInternal

Verification

Examine the approaches to strategy evaluation

and selection

(3)

Evaluate possible

alternative strategies – substantive

growth, limited growth or

retrenchment

a

Select an appropriate

future strategy for a given

organisation

b

Analyse how strategy

implementation is

realised

(4)

Compare the roles and

responsibilities for strategy

implementation in two different organisations.

a

Identify and evaluate resource

requirements to implement a

new strategy for a given

organisation

b

Propose targets and timescales for achievement

in a given organisation to monitor a given

strategy

c

Merit grades awarded M1 M2 M3

Distinction grades awarded D1 D2 D3

2

OutcomeEvidence for

the criteria

FeedbackAssessor’s

decisionInternal

Verification

Comments by Assessor - Common Skills

A B C D E F G

Assignment( ) Well-structured; Reference is done properly / should be done (if any)

Overall, you’ve

Areas for improvement:

ASSESSOR SIGNATURE DATE / /

NAME:......................................................................................... (Oral feedback was also provided)

STUDENT SIGNATURE DATE / /

NAME :..............................................................................

FOR INTERNAL USE ONLY VERIFIED YES NO

DATE : ..........................................................................

VERIFIED BY : ...........................................................................

NAME : ...........................................................................

COMMON SKILLS & COMPETENCIES ASSESSED (indicated by X)Table of content

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A. MANAGING & DEVELOPING SELF D. MANAGING TASKS & SOLVING PROBLEMS

1. Managing own roles & responsibilities 12. Use information sources X2. Manage own time in achieving objectives 13. Deal with a combination of routine & non-routine tasks

3. Undertakes personal and career development 14. Identify & solve routine & non-routine problems X4. Transfer skills gained to new/changing situations & contexts

B. WORKING WITH & RELATING TO OTHERS E. APPLYING NUMERACY

5. Treat others beliefs and opinions with respect 15. Applying numerical skills and techniques

6. Relate & interact effectively with individuals & groups

7. Work effectively as a team member F. APPLYING TECHNOLOGY

C. COMMUNICATING 16. Use a range of technological equipment and systems

8. Receive and respond to a variety of information X G. APPLYING DESIGN AND CREATIVITY

9. Present information in a variety of visual forms X 17. Applying a range of skills and techniques to develop a variety of ideas in the creation of new / modified products, services or situations10. Communicate in writing X

11. Participate in oral & no-verbal communication 18. Use a range of thought processes

Pages

I. Executive summary 6

II. Introduction 7

III. Main body 8

1. Possible alternative strategies 8

2. Select the appropriate organizational and operational strategies for the company and

provide choice strategies 13

3. Compare the roles and responsibilities for strategy implementation for JFC 15

Identify and evaluate resource requirements to implementing new strategy 19

4. Annual target and specific activities with time scale for monitoring purposes 21

IV. Conclusion 26

V. References 27

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Executive summary

My main job is to manage and outlines strategies for enterprise development in

Vietnam, I will prepare this report to audit and analyze plans to expand operations in the

country. As a starting point, a thorough analysis of the strategy can choose the best and

Jollibee, follow it about how to make this strategy work better in the future in Vietnam

market

In this report, it uses a number of strategies to analyze problems and make

suggestions:

In this evaluation strategy can be replaced - the growth and significantly limited, only

strategic or for an organization selected, we will evaluate it by measuring how the advantages

and disadvantages of strategies, based on which we can draw the measure of suitability,

feasibility and acceptability of the choice between my final plan is market penetration, market

development, diversification and related to the franchise.

According to explanations of strategies, we can draw the best strategy for the JFC.

Currently, my opinion is related to diversification, as it is consistent with the current location

of the JFC in the Vietnam market. To use a better diversification related JFC should prepare

resources, finance and investments using the method of franchising, strategies to penetrate

this market can support good for the market segment diversification in Hanoi.

In addition, the role and responsibilities of sales and marketing department should be

made clear to the diversification strategy to better support. In overall, the two departments are

responsible for market research and customer behavior to set prices in accordance with good

marketing campaign. They also have support roles associated with each other and

Administration of human resources.

However, when setting up plans and strategies, we always consider the resources it

needs to implement this strategy. For diversification, the need to prioritize the physical

resources, human resources, investment and information, new market segments. Finally, JFC

objectives and how they can monitor the implementation will be discussed. Observation,

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reporting, feedback is a good method for monitoring. Based on benchmarking with the best

companies, JFC will be easy to control how their implementation in the future.

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Introduction

Jollibee Foods Corporation (JFC) (widely known as Jollibee) is a fast-food

restaurant chain based in the Philippines. The Group's principal activity is developing,

operating and franchising fast food stores under the trade name Jollibee. The Group also

operates fast food stores under the Chowking, Greenwich, Delifrance and Manong Pepe's

brands and a bakeshop under the Red Ribbon brands. It is over 30 year since Jollibee was

established in 1978 by Tony Tan. The Group owns over 600 stores nationwide, of these, over

320 are franchised and over 290 are company-owned. There are also 33 stores operating

overseas, including Vietnam, Hong Kong, Brunei, Dubai, Guam, Sampan and Jeddah. To

discuss more about JFC, this report will cover 4 tasks:

- Finding out the possible alternative strategies and selecting the most appropriate

future strategy

- Identifying and evaluating resource requirements in implementing said new strategy

that is proposed

- Proposing an annual target and specific activities with time scales for monitoring

purpose

- Comparing the roles and responsibilities in the strategy implementation for JFC with

the group’s business strategy implementation plan

Source of information:

This report uses the information base on scenario, history, finance and current

performance of Jollibee in Viet Nam. By using theory on book and on the internet, example

of business plan, we will apply it on Jollibee‘s case.

Limitation of Report:

Because of lacking information about the Jollibee in Viet Nam in official Jollibee’s

website, so this report can only apply theory and analysis base on information given on

newspaper and internet.

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Possible alternative strategies- substantive and limited growth, retrenchment strategies

for JFC

Evaluate strategy is very important. Base 3 critical: suitability, feasibility and

acceptability, manger of Jollibee can evaluate and choose the strategy which suitable with

Jollibee company

1.1 Substantive strategy

Suitability Feasibility Acceptability to

stakeholder

Horizontal

integration

Suitable for Jollibee

because acquisitions with

a Jollibee which supplies

with inputs of raw

materials or serves as a

customer for JFC’

products (distributor or

assembler).

Has enough financial

if Jollibee want to

open other product and

market which related

fastfood

Has experience on

acquiring other in the

past its expansions

through acquisition of

other popular

restaurants in present

in the Philippines

Make a safeguard

future supplies of raw

material, eliminate

competition then the

cost as well price for

product would be

decreased, so it meets

the objective of

customer

Has some risk to

shareholder. Different

shareholders have

different attitudes to

risk. This strategy

which changed the

risk/return profile, for

whatever reason, may

not be acceptable

Vertical

integration

This strategy is also

satisfied exploit the

company strengths and

distinctive competences,

neutralize of deflect

environmental threats.

Feasibility is able to

achieve because

Jollibee is today the

clear leader in three

Philippine fast food

-A secure supply of

components or

materials, hence lower

supplier bargaining

power.

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-Suit the politics and

corporate culture

market segments:

hamburger, pizza-

pasta, and Oriental

Food. It proves that

Jollibee’s capacities

are feasibility.

- Such a policy is

fairly inflexible, more

sensitive to

instabilities and

increases Jollibee’s

dependence on a

particular aspect of

economic demand.

Jollibee fails to

benefit from any

economies of scale or

technical advances in

the industry into

which it has

diversified.

Conglomerate

diversification

The old strategy. It is not

available because it only

is used when the current

industry of the Jollibee is

in decline period, and that

Jollibee has a large fund

to invest into the new

product (industry). Thus

it is not helpful to use this

strategy

Not have experience

about management of

this strategy when

Jollibee want to invest

different industry

Impact profit, growth

of Jollibee. So,

shareholder can not

satisfy with this

strategy

1. 2. Limited growth strategy

Suitability Feasibility Acceptable to

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stakeholderProduct

development

Suitable with goals and

objectives: “To serve

great tasting food,

bringing the joy of eating

to everyone

New opportunities for:

geographical spread,

entering new segments or

new uses for Jollibee.

Has got highly skilled

and creative product

development team that

is able to make the

differentiation in

product

The ability is very

good to deliver the

goods/services

specified in this

strategy

-enough time to

implement this

strategy

-Low-medium risk so

they ensure to meet

the objective of bank

that is to guarantee

the finance of

Jollibee and

shareholder which is

that keeping

profitability at stable.

-Use different

creative product from

Jollibee to meet the

demand of fast food

in Vietnam due to

young tend to want

new experience

through new product

from product

development of

JollibeeMarket

development

Suitable to be used to

present products to both

existing and new market

in the North and South of

Vietnam

Enough money for this

strategy

-The ability is very

good to deliver the

goods/services

specified in this

strategy

-Enough time to

implement this

strategy

-Low-medium risk so

they ensure to meet

the objective of bank

that is to guarantee

the finance of

Jollibee and

shareholder which is

that keeping

profitability at stable.

Market

penetration

Suitable because of its

efficiency in the business

Strong sales team with

the ability to

-Risk is lower

-Stakeholder can

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environment nowadays successfully

communicate the

perceived strengths of

the product

satisfy with this

strategy because it

has lower risk

Do-nothing

alternative

There is no suitability in

this strategy because some

reasons: no exploit the

company strengths and

distinctive competences,

nothing in help the firm to

seize opportunities, no

generate/maintain

competitive advantage

Hardly compete in the

market using new and

more powerful

competitor on the

Vietnam market. It can

bring risks of falling

are absolutely

happened.

This strategy does

not receive

acceptability to

stakeholders because:

Customers: there is

no changes in

products and

strategies which

causes the customers

do not accept

Financial

consideration:

customers are one of

main stakeholders

however, in this

strategy, customers

do not support. This

leads profits of

Jollibee decrease.

Innovation Satisfy the goals of the

company

Exploit the company

strengths and distinctive

competences.

Help the firm to seize

opportunities

Feasibility is able to

achieve because

Jollibee is today the

clear leader in three

Philippine fast food

market segments:

hamburger, pizza-

pasta, and Oriental

Food. It proves that

Jollibee’s capacities

Jolibee want to use

this strategy, they

need major capital

investment to expand

the market. The

capital problem is not

investments

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are feasibility.

1. 3. Divestment strategy

Retrenchment Strategy Turnaround strategies

Suitability Jollibee has got capability in finance.

On the other hand, the global

financial crisis was over IMF

forecast the Vietnam GDP Growth

will increase to 6.2 percent by 2010.

Then the Retrenchment strategies are

not suitable for Jollibee to working

in Vietnam market at this time.

-This strategy is also satisfy some

requirements: Satisfy the goals of

the company

-Exploit the company strengths and

distinctive competences.

-Help the firm to seize

opportunities

Feasibility The JFC companies direct

investment into Vietnam will take

time and expense to learn and build

distribution systems. They face

unexpected obstacles in the

regulations of Vietnam for the retail

unit of 100% foreign capital.

Therefore company will take many

advantages from franchising in

Vietnam

Feasibility is able to achieve

because Jollibee is today the clear

leader in three Philippine fast food

market segments: hamburger,

pizza-pasta, and Oriental Food. It

proves that Jollibee’s capacities are

feasibility.

Acceptability

to stakeholder

it makes Jollibee becoming go down

below the standard, the finance will

be fall, then it is not ensure to meet

the objective of bank that is to

guarantee the finance of Jollibee and

shareholder. The public is also not

satisfied when the unemployment

increase by lack of working in

company. It is not acceptable for

stakeholders

This strategy can receive the

acceptability to shareholders:

-Financial considerations: It is easy

to control cash flow of Jollibee in

this strategy.

-Risk: There is less risk in this

strategy

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All 3 strategy substantive strategy, limited strategy and retrenchment strategy have

disadvantages and disadvantages. So, choose and apply strategy in organization is very

difficult for manager. So, when manager has plan to use one of 3 strategy, they must evaluate

and choose the best suitable for their organization. Based on 3 main criteria; suitability,

feasibility and acceptability, Jollibee company can evaluate these strategies and decide what

should be their most appropriate future strategy

Based on the above analysis, choose the three possible strategies that JFC can use

when participating in the Vietnam market are Vertical integration, market penetration,

Product development.

2. Possible strategies for Jollibee

Based on the analysis above, the strategies can be suitable for Jollibee are product

development, vertical diversification, Market penetration. The scoring strategy table as

following is to identify the right one

Strategy Suitability Feasibility Acceptability Application in JollibeeVertical integration Yes No No Should not chooseMarket penetration Yes No Yes Should not chooseProduct development Yes Yes Yes Should choose

In this Jollibee’s situation, the company wants to expand in Vietnam’s market. So,

use suitable strategy which will help Jollibee can achieve objectives fast. Base all information

in above, I suggest Jollibee can apply product development. The reason why I chose the

product development strategy is because the product development can make company

achieve the purpose to expand their market. With product development, company knows

what company has to develop, what company has to focus, about product or market. How

company can attract customer.

In product development, products and services of Jollibee are very rick. But

development products and services is always priority in strategy of Jollibee. With mission

“serve great tasting food, bringing the joy of eating to everyone” Jollibee will make more

products and services which suitable everyone in the world. Besides, Product, service quality

always is strength of Jollibee. Jollibee have many kind of fast food in Vietnam market:

chicken joy, chicken barbecue, jolly hotdog, burger, ice crazy, noodles… All product of

Jollibee meet each of customer require. Beside good product, Jollibee have special service:

kids’ party looking for the best way to make your child's birthday extra special. Through a

Jollibee party, it will fun, enjoyable. At the present, Jollibee successfully launched 17 new

products such as spaghetti, which is one of the best sellers, tastes sweeter than the pasta

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offered by its rival. And some of new products of Jollibee take in market. The company

expanded our chicken-rice off erring with the new Crispy Chicken Burger and Crispy

Chicken Steak and boosted our breakfast line with the unique hand-held Pancake Sandwich

that features a sausage patty held between pancakes. We launched Bangus Sisig for Lent,

welcomed the rainy season with Molo Meatball Soup, and perked up our summer-cooler line

with Crema Ice Craze, Saba con Hielo and Jolly Frosty Blends, products that double up as

refreshing meal-enders (Jollibee, accessed 2010).

Addition, Jollibee can use the franchise to invest in Vietnam market. Franchising is a

method of expanding the business on less capital than would otherwise be possible.

According to economic experts, the reason to choose this form of business enterprise is able

to expand market. Products without consuming too much cost, capital investment for research

and marketing for most of the support from the franchisor. For JFC, it is an alternative

business strategy to raising extra capital for growth.

For suitable to business, it is an alternative business strategy to raising extra capital for

growth’ (Gary W., accessed 2010). This method has some suitability, feasibility and

acceptability below:

The first is suitability. For the franchisor, the franchise is an alternative to 'chain

stores' to distribute goods and avoid liability. A well run franchise would offer a turnkey

business. Second, feasibility, if the JFC companies direct investment into Vietnam will take

time and expense to learn and build distribution systems. In addition, they face unexpected

obstacles in the regulations of Vietnam for the retail unit of 100% foreign capital. Therefore

company will take many advantages from franchising in Vietnam. Final, Acceptability to

stakeholder, the experience of JFC’s franchising in Vietnam and the experience of JFC with

franchising make company easy to continue use franchising to develop.

In Vietnam, franchise is not strange and quite achievement but the big brand such as

KFC, Starbuckit, etc is franchised for foreign business operate in Vietnam, individual

Lotteria (South Vietnam), because the parent company investment and is not domestic

enterprises. Besides, domestic enterprises seem to be limited capacity and financial

management experience in the franchise industry, therefore, in Vietnam, the number of

domestic enterprises operate in franchise is low and weak. To franchise, in addition to

owning a brand name strong enough, the most important factor is not sufficient management

capacity. But this is one of the main stage businesses in the country. Therefore, even though

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that franchise is the most effective way to keep market share, but many supermarkets,

restaurants have not dared to boldly apply.

Besides, to sell a franchise, the parent company to "standardize" all processes. For

example, JFC, all stages from raw materials, dosage, how to cook, etc concrete furniture,

lighting, light, etc, are standardized to specific franchisees how to apply. Many domestic

companies have not done so; this is also an obstacle to business direction for the franchise.

Particularly JFC is a business has franchised for two companies. Mr. Jojo Subido,

general manager of JFC Vietnam said that they are continuing find new business to franchise

(SGGP.org.vn, accessed 2009). It means franchise with JFC is a way to them expand market

and enhance brand. It has efficient therefore; JFC wants to continue follow this method.

3. Compare the roles and responsibilities for strategy implementation in two

different organizations.

The roles and responsible of two difference department in Jollibee was shown in the table

below:

Department Sales &Marketing Finance

Roles -Attract and retain customers.

Prospecting individual buyers or

logical customers by investigating

and classifying them according to

needs, occupations, fitness,

financial standing, purchasing

power, buying habits and

locations.

-Prospecting territories by

investigating and preparing

reports upon selected cities,

counties, states, or regions, giving

the physical layout, transportation

facilities, financial resources,

population and general market

possibilities

Comprises the documentation and the

controlling of incoming and outgoing

cash flows as well as the actual

handling of the cash flows.

-These two parts played and still play

a significant role inside the

department, however, due to the

computer revolution it is mostly dealt

with on computerized systems

-Budgeting and performance

evaluation. It could be seen as

planning/forecasting and

controlling/evaluating. Though

budgeting is a traditional role its

importance has risen rapidly

especially as the companies have

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-To increase the sales volume

considering a particular period of

time. For example, they have

function prepare the sales volume

for the special occasion like in

Christmas, many people go out for

entertainment and they have

demand in fast food.

-To give motivation by

appropriate means to the sales

persons and to give appropriate

training to them in carrying out

the sales activities successfully

-Analyze the demands of markets,

they study the consumer's

psychology, study market

fluctuations, prepare sale budgets,

explore new markets and the

process begins again - attract and

retain customers, etc.

-Preparing and furnishing

equipment for salesmen in the

way of samples, sample cases,

price lists, kits, portfolios, or

whatever else may be necessary,

depending on the nature of the

business and the product or

service sold

-Recruitment and training

-Cooperating with the production

department in the matter of

qualities, quantities, containers,

packages, sizes and seasonal

grown to huge conglomerates where

control is very complex and difficult.

The purpose has moved from pure

control to a more analytical meaning

(Cost-Return).

-Focusing primarily on regulatory

reporting to most effectively

providing the information that

internal management needs to more

effectively "run" the business.

-Calculate to achieve these

objectives, accounting, finance, tax

and other financial areas are

developing data warehouses

combined with advanced analytics to

serve the needs of the entire

enterprise. We refer to this advanced

decision support capability for

finance as financial analytics.

-Driven by investments in enterprise

resource planning (ERP), shared

services and changes in its reporting

role, most finance functions are

becoming more efficient – requiring

fewer resources to manage them and

closely aligning with the company's

business structure. This is especially

true in the area of transaction

processing where improved

automation of financial transactions

has enabled finance staff to expand

their role and spend more time

supporting decision-making

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goods, and reporting their reaction

on dealers and consumers.

-Making investigations of the

products or offering to discover

new uses and new appeals to

consumer.

-Conducting, or arranging for,

special market surveys and

analyses of territories with a view

to discovering new markets for the

goods or new methods of

developing old markets.

-Making specific market surveys

and analyses, securing detailed

and authoritative information

regarding the quantities of certain

classes of goods sold in given

localities,

processes, rather than just processing

and reconciling transactions.

Responsibilities -updating a regular maintenance

schedule for all division facilities

and equipment

-Reviewing marketing activities

with all applicable management.

These activities can include: sales

call recap, market share report,

sales analysis and strategy review

reports, sales promotional efforts

and upcoming promotional plans.

-Coordinating and assisting the

department managers in

developing annual marketing

plans. He or she will also

coordinate all advertising for the

company and negotiate with print

-The payment of bills, wages and

salaries. This as well has been

computerised. Wages and bills are

paid through electronic systems. Both

transactions are outgoing cash flows.

On the other hand, payments for

goods or services sold will be

accounted for in this department.

-Preparation of budget, appropriation

of accounts, re-appropriations,

surrender and savings.

-Control of expenditure and ways &

means position.

-Responsible for the collection,

processing, and dissemination of

operating and capital budgetary

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and other media representatives to

ensure efficient purchasing of

advertising.

-Recruiting and employing

salesmen and fixing their

compensation and respective

territories.

-Training knowledge of the goods

and in methods of services for

customer

information.

Sales &marketing department and finance department are all have important roles and

responsible in Jollibee. With the particular of the types of product and services as fast food

industry, their product is purchase daily. Sale &marketing need to consider to the sales rate

and from that they will be measure the input need. For example, Jollibee can sells 1000 meals

of chicken fried per day, therefore, base on there, company can measure the volume of raw

material they need purchase and forecast the volume of customer for next day base on the

Sales rate. Moreover, it relates to the finance department in prepare the finance to payable.

Sales forecasts will also be an important part of the budgets produced by the finance

department, as well as the deployment of labor for the human resources department. A

research and development department will need to work very closely with the marketing

department to understand the needs of the customers and to test outputs of the R&D section.

4. Identify and evaluate resource requirements to implement the new strategy

Resource allocation is used to assign the available resources in an economic way. It is

part of resource management. It is the process by which an organization distributes its

resources to effectively and efficiently accomplish its mission. The chart below show four

method of allocating resources as Bargaining between departments or SBUs, competition

between units, formula and planners impose priorities.

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From the analysis above, Jollibee are developing their product develop strategy and

they use the methods of business growth in market entry strategy. They applied innovation

business, joint ventures, organic growth and franchise to competition between units. In here,

negotiates is high and central of direction is low; therefore it is competition between units.

Second, market entries strategy, Jollibee use franchising strategy, but franchising

strategy for develop is also base on JFC Philippine’s decision. Therefore the change is high.

About central direction, the decision of this strategy is from top down, so the central direction

is high. Therefore the method for allocating of market entry strategy in this case is planners

impose priorities.

Besides, the strategy implement of Jollibee for each strategy will be depending on the

financial strategy of company. Because the negotiate of this strategy is high and the central

direction also high, too therefore it is imposing plan.

With all the resources which Jollibee has got, it is enough condition to Jollibee continues

implement their strategies. Besides, they need new more resource. With some new resource,

Jollibee needs to adjustment to it can be properly integrate with current resources. For

example, Jollibee focus on develop new product or expand market (develop market). It

requires more people and more machines, and extra resource might be need for training.

Component of resource plan

The resources plan might use the following tools:

Budgets are one of tools in component of resource plan. To successful, Jollibee need to

control the budgets and have right strategic management. In budgets, finance resource is a

part of it. The resources should be allocated according to the required outputs. Budgets

should be directed towards achieving CSFs. Within budget include capital budgets, working

capital, department budgets and consolidated budgets. Capital budgets reflect cash flows for

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different projects; capital rationing decisions, funding methods, and working capital include

stock, debtor and creditor levels. Departmental budgets will clearly implement the allocation

of financial resource between departments. Consolidate budgets enable planning of resource

use as a whole across the company.

In present, franchise is the way which Jollibee are using and they aim to continuing

franchise for two more company ( following the information has research in the assignment

1, Chau Hung, accessed 2010). In the initial step, Jollibee will be still following the franchise

to join in new market (new market target in Hanoi and Haiphong).

Human Resource: such as recruitment and selection and training. Employees are one

of the important in very strategy of Jollibee. In strategy which will open about 20 restaurants

in North of Vietnam, this is big restaurant so; Jollibee must recruitment about 500 employees.

The company should recruit people who have high responsibility, understand Vietnam

culture, and fastfood industry. Besides, training people is one of the most necessary of

Jollibee. It will make employees who effective in job and loyalty with Jollibee

Material Resource: This is important in expand market strategy of Jollibee. Find

supply who achieve all requirement of Jollibee are difficult. So, Jollibee should contract with

some suppliers and make them follow all quality about material of Jollibee. And Jollibee

should build a factory in Vietnam, the structure the same with factory in Philippine. Because

with this factory, company can take many advantages, reduce cost and price, make more

benefit and spend money to invest and expand market share

Financial Resource: Finance resource is also important element that decides the

expanding capacity of the company. Although Jollibee is the leader fast food in Philippine, it

also need more financial resource if it wants to apply market development strategy. The

investors (such as banks) will base on Jollibee’s performance well or not to justify if they

should borrow or not. Besides, JFC must find out the way to save production and service

costs to raise profit. The costs depend on inflation, financial crisis, and the power of

bargaining of suppliers, and so on.

In summary, Jollibee is able to control its financial resources therefore market

development has more opportunities to finish.

Technology: Technology is also one of resources which is important in market

development strategy for Jollibee. Aided by custom-made mechanized equipment, the

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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 store. The chicken marinating line can produce as many as 150,000 pieces a

day while about 480,000 hamburger patties a day is turned out by the frozen patty line. The

breadline is designed to match the volume output of patties, i.e. also about 480,000pieces a

day. The pie line can produce as much as 157,000 pocket pies in a 20-hour operating day.

Currently, pies are exported to Jollibee stores in Hong Kong, Guam, Saipan, and the USA.

Various sauce products are processed in the ZFC sauce line including those for the Jollibee

bestsellers, spaghetti and palabok. JFC uses IT in order to manage the information from

each store. For its growing chain, which now includes Jollibee, Greenwich, Chowking,

Delifrance and Yonghe (in China), the company has engaged XMG, one of the leading

vendor-neutral Information and Communication Technology research and advisory

companies, to conduct an IT value benchmarking project. Jollibee is taking pride that this

endeavor makes the first wholly-owned Filipino enterprise to do an IT benchmarking project

of this scale ever. The XMG report will determine the efficiency and effectiveness of the food

chain’s IT service (Jollibee.com.ph, accessed 2010). In conclusion, if Jollibee applies its

current technology for market development in Vietnam, it is surely the quality of Jollibee’s

product is very good.

The propose and time scale with each targets of Jollibee

The table bellow will show the details of JFC’s target with Proposal, time scale, KPI,

method of controlling performance and the method of monitoring performance.

Target Proposal Time

scale

KPI Method of

controlling

performance

Method of

monitoring

performanceCorporate

>5 year

Obtaining the 2nd

position in fast

food industry in

Vietnam (after

KFC)

During

2015

Jollibee’s image

(a bee) is

friendly

everywhere and

is adored by

almost of

Vietnamese

Use the

controlling

system to

evaluate the

target.

Use

observation to

check and

evaluate

21

Open 20 stores

in HaNoi city

During

2015

children.

20 stores are

opened and the

menu is covered

by all kinds of

Jollibee’s

products from

Philippines.

Use the

controlling

system to

evaluate the

target.

Use

observation to

check and

evaluate

Function

3-5 year

Obtain 10%

market shares of

fast food

industry in

Vietnamese

market

Increasing 3-5%

profit each year

During

2014

During

2014

Total sale of

JFC in all

Vietnam about

75 billion VND

Total net

revenue is 3-5

times than last

year (each year)

Use the

controlling

system to

evaluate the

target.

Use the

controlling

system to

evaluate the

target.

Use

observation to

check and

evaluate

Use report

from staff to

check and

evaluate

Personal

<3 year

(2010 to

2012)

Have 5% market

shares fast food

in Vietnam.

Open 4 new

stores in HaNoi

During

2012

During

2010

Total sales of

JFC in all

Vietnam is

about 30 billion

VND

All of 4 stores

are opened in

2010.

Use the

controlling

system to

evaluate the

target.

Use the

controlling

system to

evaluate the

Use

operational

have produced

a number of

records and

documents,

such as

production

and sales

charts,

accounts,

customer

complain

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target.

Table 1: Setting target and its timescale of Jollibee

5.1 Year 2010

JFC's objectives this year is to expand markets, develop the distribution

network of their products. This means that Jollibee will open more stores in markets in Hanoi

and some small cities in the south of Vietnam. After the financial crisis, Jollibee will put two

teams to survey the market in Hanoi, if they give good results, the company will decide to

build two shops in Hanoi.

First, Jollibee should take the time to find a suitable location. Jollibee should choose

the location to meet three factors:

• Store in centre of market or shopping centre because it’s attract the family

when they shopping. In other hands, store may be near school because the taste meals of

Jollibee are sweet; this sweeter taste is especially formulated for the little kids who make up

the bulk of Jollibee customers.

• The new location have a convenient parking place because in Ha Noi always

have a traffic jam

• The new location can repair.

Secondly, recruiting and providing training for new employees. Jollibee should focus

on the application of eight steps as detailed planning of human resources identified,

forecasting labor sources, analysis of work (job description, person specification), identifying

open positions, the standard with the information and publish your ad, select applications for

interviews, interview and select the best person for the job and notify the applicant of the

results of the selection process.

Jollibee should ask two kinds of people in full time and part-time. The company

prepares job descriptions, specifications and advertising for the position requirements,

ensuring all information in the job description, the specification, and advertising is full and

clear. Candidates must be good because they are looking for as well as photos of Jollibee as

customers, talk often, mindful of the work, because they speak to customers what customers

want. Jollibee website should labor requirements such as vietnamworks.com,

thogtintuyendung.com. And media requirements such as Avatar, laodong

The selection process details: from advertising jobs, the best choice CV suitable

location, inviting candidates to interview and eventually signed a contract with the selected

candidate last.

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With this request, Jollibee should use surveys to track this goal. Managers can

monitor performance by reviewing the work they perform, or fiduciary to oversee a trained

observer. Duties test - time specific tasks, signed when the work is given and when it is

repaid, record levels of the final result of the labor skills required of staff and training.

5.2 Year 2011

Setting advertising is targeted in 2011.

First, open two new stores in Hai Phong in April and June All requirements of the

new standard places in Hai Phong is similar in Hanoi.

Secondly, recruiting and providing training for employees. Collect surveys for quality

products and services in all Jollibee stores in Hai Phong and Hanoi. Jollibe should prepare

questions about product quality in the survey are very clear and there is a choice for our

customers to focus on points (0-2, 2-4, 4-6, 6-8, 8 -- 10). With this action, Jollibee should use

the report (survey) to monitor performance.

Thirdly, Jollibee should advertise on newspapers, magazines (especially the type of

family), facebook (young), radio and television. With this action, Jollibee also use the

observer (inspection).

5.3 Year 2012

In year 2012, Jollibee should create good relationship and image with Vietnamese

customers. Open 3 stores in Hanoi, and 2 stores in Hai Phong and recruit and provide training

courses for employees. Jollibee will need a large budget to do this action in the future. So,

Jollibee should prepare a strong financial.

On the other hands, Jollibee should issue membership cards for loyal customers or

volume point card. It help Jollibee can attract more customers and keep loyal customers.

Jollibe should discount on holiday like valentine days, Tet, Independent day… It helps to

attract and satisfy customers.

Further more, Jollibe should do charity for poor children and homeless. It helps

company built the image in Vietnamese. Jollibee should continue advertise on electronic

newspapers such as Vietnamnet, Dantri online, Vnexpress…on radio and television. With this

target, Jollibee also should use observer (Task inspection).

5.4 Year 2014

In 2014, Jollibee set two goals. Firstly, the new Jollibee store should open in Hue

City, this is a big market. Jolibee also need to recruit and provide training for employees. In

addition, they should prepare promotional plans, such as discounts on every Monday for

some meals, discounts for students on Thursday as well.

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On the other hand, Jollibee continue to promote newspaper advertising, e-newspapers,

radio and television. In other words, Jollibee should finance the program for the children's

target market of Jollibee toward the customer group (family). Therefore, it will help

companies not only attract children and children also attract many parents' to Jollibee outlets.

Secondly is increased by more than 5% of profits. To achieve that, Jollibee should buy more

new machinery to improve the quality and quantity of the product. It can reduce turnover, and

some errors in the production process. Management should choose the new technology

research and information advantages of the new machine. Jollibee should also create a

number of events in the holidays like Valentine, New Year, 30 / 4, 2 / 9 (on independence),

etc.

5.5 Year 2015

Jollibee should regularly use surveys to collect the results and have a suitable solution

to increase the rate of satisfaction. Addition, Jollibee should development new products to

serve different tastes of customers. This helps the company can compete with new or existing

area competitors.

Goal is to become one of the doors leading famous brand in Vietnam in general and

Hanoi in particular food and fast food. Jollibee should open new stores in Hanoi and Ho Chi

Minh with the strict requirements of the selection process and the investment carefully. There

are off on Monday, discounts for students on Friday as well. Jollibee should do charity for the

poor and homeless, it is very important when Jollibee to build the image and make the

customer see Jollibee branch strength in Vietnam.

More, Jolibee should launch new products and typically collect comments and rate of

customer satisfaction. Addition, Jollibee should create new events: the reward for the lucky

first customer. With this action, Jollibee use surveys to track performance.

Conclusion

With so many large and small shops in Hanoi, Hai Phong and Hue market opened,

JFC should prepare new plans, new strategies to expand further. Between many of the

strategic review, JFC may choose to diversify in related priority for expansion plans. To use

diversification in the most effective possible, JFC also can use the franchise method to graph

Hanoi market, but they will be stuck in some trouble because of the threat them from

competitors such as KFC and Lotteria is very good. So make clear responsibility for each

section and using resources already as good as they could be their duty at this time.

However, information is a major contribution to the success; information system is the

25

foundation for conducting business today. In many industries, survival and even existence

without widespread use of IT is extraordinary, and IT plays an important role in increasing

productivity. Although information technology has become more than a commodity, in

combination with additional changes in the organization and management, it can provide the

foundation for new products, services, and how conduct business to provide companies with

a strategic advantage. In Vietnam, the JFC should participate XMG, one of the leading

vendors-neutral Information and Communication Technology research and consulting firm,

to conduct an IT project worth benchmarking. XMG of benchmarking performance and

evaluating the cost effectiveness of service delivery and quality of IT services respectively.

This Jollibee is why the need to update technology at high level as soon as possible because

overall technology in Vietnam is not too good when compared with the change of the trend of

IT in the world.

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