Firms that have a presence in more than one country is a multinational corporation. A multinational corporation will usually follow some market entry strategies to successful occupy a market share in the international country and will also follow internationalization strategies. Now the case issues identified for Jollibee are that of issues in expansion in international markets. “Feeling that Jollibee’s international expansion had sometimes been driven less by business considerations than by a pride in developing overseas operations, Tingzon thought that a fresh examination of existing international strategies might reveal opportunities for improvement” (Bartlett, 2001, p.7).
This is a complex case study and hence a combination of problems can be identified for Jollibee in international business undertaking. The predominant of them are based on how Jollibee found themselves unprepared when concerns started appearing in the international expansions.
Jollibee did not factor in lessons learned from failures:
Firstly, there are indications that Jollibee had not considered the lessons learned from previous failures into formulation of newer strategies. For instance, in their first venture in 1985 in Singapore, Jollibee was seen to suffer because local manager relations deteriorated and the franchise agreement had to be closed and the companies had to be shut down. Now this was a lesson for Jollibee but Jollibee failed to make use of these lessons in their next venture which was in Taiwan. In Taiwan, after the closure of its Singapore unit Jollibee was to form a 50/50 joint contract which although showed much promising revenues led to failure as there were issues in local oversight.
Similarly, there were issues in Brunei where local investors whoa acted as silent partners seemed to be conflicted with the international investors. Indonesia faced a similar problem as the local partners were seen to conflict with the business. The case study highlights that Jollibee faced these issues because of location and partner. Now it is this research paper’s argument that while the first of the failure in Singapore was indeed seen to be because of a failed strategic planning, the other failures as in the case of Taiwan and Brunei could have been prevented. These were failures that the company should have foreseen and could have prevented. This is both a failure in strategic planning, and a failure in structural planning. An organization which considers international expansions must have had a team that took in the failures and could assess and feed forward some ways to handle them in the future expansions. Apparently, Jollibee did not consider the lessons learned from their failures in Singapore and did not use them to improve their expansions into Taiwan and Brunei.