INSTITUT PENGURUSAN DINAMIK SARAWAK, WISMA MORNIE, NO.1, JALAN HAJI TAHA, 93400 KUCHING SARAWAK. ASSIGNMENT COVER SHEET Please attach a Cover Sheet to the front of each piece of work submitted. Please check that you have Filled in all details correctly, and signed the declaration at the bottom of the page, before giving your assignment to the respective lecturer. Be sure to keep a copy of all your work. Student Details No. 1 NAME SRI VIBI FIFIANI BINTI MUHAMMAD ISKANDAR Student Details MATRIC NO. RCB21302006 Assignment Details Course Code / Title: RMGT4143 Contemporary Issues in Business (1) Assignment Title: Group Project & Presentation Due Date: 23/05/2023 Lecturer: Miss Ave Chellmonda Declaration I hereby declare that this assignment is my work, and does not involve plagiarism or collusion. Contents 1. Why do you think McDonald failed in the Philippines?........................................................ 3 2. How did Jollibee beat a huge corporation like McDonald's in the Philippines? ................... 3 3. When Jollibee decided to internationalize or ventured into their market in the United States, they were only able to serve their customer that familiar with their brand. Justify how Jollibee can compete back in the US with the other giant company by relating your explanation to 4 elements of the CAGE Distance Framework. ................................................. 3 Reference ................................................................................................................................... 5 1. Why do you think McDonald failed in the Philippines? Based on the video, one of the main reasons McDonald's failed in the Philippines is the company's failure to localize its menu options. The second reason is most of the Philippines people preferred sweet and tastier dishes. 2. How did Jollibee beat a huge corporation like McDonald's in the Philippines? McDonald's was defeated by Jollibee in the Philippines thanks to its localization strategy. First of all, Jollibee was able to adapt its menu to the local population's tastes, allowing it to offer a variety of foods that Filipinos liked. Second, by keeping prices lower than McDonald's, Jollibee was able to draw in customers who were on a tight budget. Thirdly, Jollibee was successful in establishing a regional brand identity, which helped it gain the trust of and put customers at ease. 3. When Jollibee decided to internationalize or ventured into their market in the United States, they were only able to serve their customer that familiar with their brand. Justify how Jollibee can compete back in the US with the other giant company by relating your explanation to 4 elements of the CAGE Distance Framework. A company should conduct a careful investigation. An organization can gain from applying the C.A.G.E. Distance Framework to compete fairly and equitably with other firms and achieve their goals. The distance framework has divided differences in how other countries conduct business into four areas to aid the study. The "distance" between countries is seen from a more comprehensive perspective due to its inclusion of Culture, Administration, Geography, and Economy. The Jollibee Corporation uses C.A.G.E Analysis to gain an understanding of the key differences between its home market and its target global market, which is McDonald's. It also helps because it enables the company to continually assess market demands. Cultural Distance A group of people or an entire organization's actions and interactions are shaped by its shared beliefs, customs, and practices, which are referred to as its culture. Language, race, and religion are all factors in the cultural diversity between different countries. The CAGE Difference Framework prioritizes the cultural gap between nations. First of all, Jollibee adapts its menu to suit the tastes of its local clients. Every nation has its preferences. They may find it tasty, but we do not. Jollibee decided to develop several menus that would suit the preferences of the locals who live in the United States. Burgers, spaghetti, and other dishes are prepared using American flavors. Secondly, Jollibee introduced Filipino foods to people living in the United States. For example, spaghetti with banana ketchup and hot dogs, and fried garlic rice served with morning meals. Administrative Distance The simple definition of administrative distance relates this to historical and political distinctions among nations, especially those without colonial relationships. Government corruption and the lack of a common currency both increase administrative distance. The Jollibee corporation must accurately determine how the domestic market and the global market differ politically and administratively. Under the current administration, Jollibee should consider the likelihood that the government will meddle in the business world. For instance, how is it possible for Jollibee to open a franchise in the United States with such ease in terms of a license? However, the Food and Drug Administration manages some products' import and export. License agreements with foreign organisations in particular must follow agency requirements. The licensing agreement will also be subject to all applicable international agreements and all applicable tax laws of the United States. Geography Distance The third component of the CAGE Distance Framework is geographic differences or the distance between two countries. Size, mode of transportation, climate, and other differences are among the other factors that play a part. Popular locations were chosen by Jollibee for its restaurants. Some of their locations are situated in shopping centers and alongside major thoroughfares, enabling customers to get a quick meal to state their appetite. Customers can visit Jollibee's stores whenever they want, which makes their lives easier because they no longer need to look for stores. Next, Jollibee decided to locate their company close to Filipinos who live in the United States. Filipino Americans were joyful when Jollibee decided to open stores and bring these dishes back to the United States. Without ever having to return to the Philippines, they can eat at Jollibee restaurants in the United States. Economy Distance. We are aware that two of the key components of the global distance economy are the cost of labor and the variation in consumer wealth across countries. Additionally, although not impossible, it is more difficult for a company from a country of wealth to enter and survive in a poorer country. Since they are aware of the high cost of living in the US, the company has benefited from Jollibee's expansion there. These reasons are why this company uses strategic pricing to attract customers. Because of this, Jollibee's prices are competitive across the board, which could help them increase their profits. Jollibee's main objective is to provide delicious food at an affordable price. Compared to its competitor McDonald's, Jollibee offers combination meals at a lower price. Jollibee is aware that more than just the aforementioned factors are necessary for opening franchises in the US, but they also understand that they may experience this favorable response because their marketing strategies include demographically targeted consumer targeting. Additionally, it makes it easier for Filipinos to buy local goods there. There are many Filipino workers, as a result, they have less money available for other fast food. Customers may benefit from the existence of fast food restaurants like Jollibee due to the low prices. Jollibee must understand the target segment in the foreign country as well as the per capita income, the target segment's lifestyle, and the cost. Reference Ariton, G. (2020, July 8). How Jollibee beat McDonald’s to become the Philippines’ fastfood chain of choice – meet billionaire Tony Tan Caktiong, the ‘chicken joy’ entrepreneur. South China Morning Post. https://www.scmp.com/magazines/style/news-trends/article/3092165/how-jollibeebeat-mcdonalds-become-philippines-fast?onboard=true CNBC [@CNBC]. (2018, November 20). Why is McDonald’s struggling in the Philippines? Jollibee. Youtube. https://www.youtube.com/watch?v=kpHeXMbIy2s Shastri, A. (2021, September 14). Detailed marketing mix of jollibee corporation 2023. IIDE. https://iide.co/case-studies/marketing-mix-of-jollibee/7
