1.How was Jollibee able to build its dominant position in fast food in the Philippines?

What sources of competitive advantage it was able to develop against McDonalds in its home market? There were several factors contribute for Jollibees dominant position in fast food in the Philippines. First of all, the company has been in the food industry for sometimes, so the barrier was low in making the shift to fast food business. Second, the receipt was developed by using a home style Philippine recipe which quickly became a customer favorite. In addition to serving food that fit the local taste, the company also emphasized on their working forces and services. The company provides friendly environment for their employees, so their associates are working happily and efficiently. The fast factor is the Five Fs including Flavorful Food, Fun, Flexibility, and Family. In 1981, McDonalds entered the market, representing a competitive threat to Jollibee. However, Jollibee defended their market share with a larger hamburger with a better taste. In contrast to McDonalds that served plain beef burger. In addition, Jollibee has established it position in the market before the entering of McDonalds by providing fun and friendly environment to the customer is a key to run business. Moreover, the company pays much attention on reducing waste, ensuring quality service and increasing staff productivity which help establish good operational management, and generate profit to the company. 2. How would you evaluate Tony Kitchners effectiveness as the first head of Jollibees international division? Does his broad strategic thrust make sense? How effectively did he develop the organization to implement his priorities? Overall Kitchners ideas of targeting ex-pats and planting the flag were decisive; however, Kitchner needed to take a step further to see if those ideas were sustainable. As mentioned that to expand a store required large amount of money. Also, it cannot overlook the

fact that to be successful in expanding its franchises, selecting good partnerships is a key. Based on what information I have, it seems to me that Kitchner did not pay close attention on selecting the partnerships. However, the fact that his FSM unit provided supports in consulting for Jollibees franchises was a good practice because this action was not only help the stores to generate profits but also help them to learn and manage as professional. Another problem I have with Kitchners style is the expansion in 8 new national markets in 2 years. He took an extreme action and eventually, it cost a huge investment for the company. Moreover, his strategy was not related to TTCs strategy. As it comment that We preferred to go slow, making sure that each store was profitableThis creates a good, long term relationship. Finally, he overemphasized the differences in the overseas markets, isolated his overseas
managers from the successful Philippine organizations, and systematically differentiated his operating systems, store design, menus, advertising themes, and company logo and slogan. He would have been wise to incorporate the Jollibee company philosophy into his division to foster the camaraderie that was sorely lacking. 3. As Noli Tingzon, how would you deal with the three options described at the end of the case? How would you implement your decision? Papua New Guinea: if the company opens the stores here, they will take the first move advantage. As mentioned, the country have 5 million people served by one poorly managed, 3-store fast-food chain. If they expand in this country, the company would not risk their equity. However, disadvantages that they would face are the product may not appeal to consumers, cultural differences may be difficult to overcome. Hong Kong: I would not recommend the company to open the store because there are big differences in culture, customer preference, and difficulty in retaining Chinese staff. Tingzon needed to

reevaluate the Hong Kong strategy and resolve all existing issues first before considering opening a fourth store. Resolving these issues would require much collaboration with Jollibees domestic division. California: opening stores in California, the company will face intense competition in the fast food market. Even though Californai has both a large Filipino and Asian population, there are a lot of American Fast Food serving the customers. In addition, Filipino taste may not appeal to American. However, with any expansion opportunity, the company must carefully assess market potential including, store locations, sales forecast, partner potential, and cultural distance.

1.What accounts for Acers outstanding startup? What caused this company surpass numerous other Taiwanese PC companies? The companys mission was to promote the application of the emerging microprocessor technology. In order to achieve the mission, it held on every opportunity and provided a wide range of services and products, including advising, importing, training, and publishing. Based on the information, Acer owes its outstanding start-up to frugality, organizational culture, and a well defined market focus. The CEO implemented and encouraged Frugality as an important business principle which was reflected in the companys business processes. The firm leased just enough space for current needs. Their products were priced with a low profit margin to ensure quick turnover. In addition, the company avoided tying up its revenue in debt. In the operation process, they received cash quickly for further reinvestment into the business. Hence, the business is able to avoid unnecessary costs and maximize the use of its capital. Shih also emphasized on promoting employee education through learning, training, and development; managers were responsible for the learning process of their subordinate. Moreover, Shih allowed his employees in decision making process. He trusted his employees

that they would bring the best for the company. Furthermore, the fact that the company offered ownership to employees would encourage the employees to do the best job to the firm. Finally, Shihs experimenting with joint ventures was a good way to increase Acers sales without investing a huge amount of money because the company did not have to worry about losing its capital. When he made decision to expansion abroad, he just started in small markets which allowed him to get used to and gained international experience. 2. After a strong decades, why did Acers growth and profitability tumble in the late 1980s? How appropriate was Stan Shins response to the decline? How do you evaluate Leonard Lius performance? Overexpansion and the companys shortage of professional management are the main causes for Acers declining in profitability. Since the new blood coming in because of their interesting in Acers ownership without understanding the culture of the company brought about a hard time managing the company. In addition to the size of the company and management problem, the external factor accounted for the companys decline in profit is the competitive dynamics in the PC market were changing. The fact that Shin hired professional management and stepped down from the CEO was the right decision at that time. Since the company was the family management style, they did not have clear picture of management and communication. In addition, managers did not take responsibility for the profit or loss of the company, so they did whatever they wanted. As a result, to sustain the business, professional structure needed to be established. The most parts of Lius performance was good for the company because he pit in considerable effort to bring professional management structures, practice and systems to the

company. He also established standards for intra-company communication. The most important thing is that he brought productivity and performance evaluations to the company which I think it will urge employees to put more effort to the job. Even though Liu has done so many good things for the company, he made mistake when making decision to acquire Altos. I think the company should consider joint venture or other method rather than buying Altos. 3. How effective has Shih been in rebuilding Acer in the early through mid 1990s? What do you think of his new business concept such as fast food model, Uniload, Smiling Curve etc.? What do you think of his new organizational model such as Client-server, 21 in 21 etc.? Do you consider this to be a visionary framework for the companys future competiveness or is it a mere random series of ill-conceived initiatives? Shin has been rebuilding the company using under the philosophy Global Brand, Local Touch which result in the occurrence of series of events. Starting from became a joint venture with Computec which allowed Acer to expand its opportunity in Latin America. In addition, Shin pushed ACI to go public and then coming up with 21 in 21strategy. Beside strong pushed the company to create the global brand, he came up with new operation models such as, Client Server Organization, The Fast Food Business Concept which decrease cost and inventory. Eventually, the company reported the profit after three years of losses. The fact that Shih introduced Fast Food model has helped the operation process a lot. The development of ChipUp concept decreased the level of inventory which allowed them not to carry a lot of cost. The 2-3-1 also increase the productivity in product development and selling. Uniload helped the company to save logistic cost, inventory cost, import duties and local labour cost. For the smiling curve, Shih emphasized the concept of value added to the products that the

company provide. In my opinion, his view in the business goes further when comparing with other Taiwanese ownership. He knows exactly what he should do to increase the value to the organization by using the same resources. Client-server organizational model sates that each RBU and SBU can make its own decisions without any consultation from the management in the headquarter. In my opinion, this allowed each unit the response quickly to the market. However, an disadvantage is that there is a frame that SBUs could fine alternative distributors other than RBUs. This is a gap which sometime create problem between both units. I think his new business model such as Client server, the fast food concept, and the smiling curve can be consider as the companys framework. The fast food concept and smiling curve have proved that they can improve operational process and reduce cost. In addition, as usual that in the PC industry, the product life cycle is so short; as a result, the company has to response quickly otherwise they cannot catch up with other competitors. As a result, the 2-3-1 system would help the company to implement new products and services at the right time. 4. What action should Stan take on Aspire? (If you were Stan, what would you do?) Should he approve its continued development? Should he allow AAC to continue to lead the project? Should Aspire become a global product? If so, who should manage the worldwide rollout? If I were Stan, Shih, I would approve AAC to continue doing the project. There are a lot of factors contribute to the project. 1.Increasing of opportunity of home computing proven by increasing trend of working at home from 26 million people to a projected 29 million in 1994 2.The company was the top ten PC manufacturers in the U.S. and worldwide (as seen in exhibit8). From this claim, it can ensure that the company is ready for the project.

3.Growing the number of internet users which meant that there were a lot of room for multimedia system. 4.AAC started to make profit which meant that the Uniload system was working well. 5.As mentioned, in PC industry, products usually have short life cycle. As a result, Acer needed a new product to replace Acros. In the implementation stage, Shih should use AAC as an assemble base. As critics mentioned about the coordination between the RBU in America, and the SBU in Taiwan, this problem should be solved by transferring key personal from Taiwan for the project. This way the company could save money from investing in production facilities. In addition, transferring engineers from Taiwan SBU could maintain the product quality and reduced the difficulty in coordination between the RBU and SBU. Aspire would become a global product because the product itself could meet the need of customers in term of multimedia home PC. Also, pricing policy that Culver wanted to positon the Aspire between the upper-tier and lower-end products should make Aspire as a affordable and reasonable product.