Jollibee market segmentation

Company: Jollibee

Country From: Philippines

（Expand） Country To: Australia-Sydney

Product/Service: Fast Food

How (FDI/Export/License)： Merger + Strategic Partnership

CH 2

Consider the country where you want to expand your business: What is the political system?

A political system is a complete set of legal institutions or interested groups, such as lobby groups governed with political rules and norms that coordinate its functions. Australia, a targeted market for Jollibee, is an essential consideration for foreign investors due to its favorable business regulations and policies. The Australian government welcomes and encourages foreign investment consistent with community interest. Setting up a business Australia is fair since the nation believes in its strong and enduring democracy where regulatory frameworks and the rule of law prevail. However, the government can block proposals for companies operating business contrary to national interests.

Consider the country where you want to expand your business: What is the economic system? Do you consider it to be a mixed economy? If so, why?

The economic system of Australia is a mixed economy that utilizes tenants of Western economic systems and has a high GDP and low poverty rate. In 2018, Australia had the highest median wealth per adult. The economy is dominated by the service sector, which makes up 62.7% of the GDP and is responsible for 78.8% of the laborforce in 2017. Australia is a mixed economy because it utilizes a large amount of the private sector for its overall economy, but also employs public enterprises as well. The most integral part of Australia's economy is the Australian Securities Exchange (ASX) and is one of the major sources of money flow in Australia. Australia also ranks number one in the Asia-Pacific region for labor, agricultural, and industrial productivity.

Consider the country where you want to expand your business: What is the legal system? Compare it with the country where your company is headquartered. What are the challenges that you foresee? Think about contracts for example.

Australia's legal system have three parts which are commonwealth government, state/territory government, and local government. For commonwealth government, laws are passed by the Commonwealth Parliament, elected by all Australian citizens who are enrolled to vote. For state/territory government, laws are passed by the state or territory parliament, elected by those Australian citizens who live in that state or territory who are enrolled to vote. Local government by-laws are passed by the local councillors elected by people who live or own businesses within the local government area. For the challenges that we foresee, we must need to get though the state or territory government for the visa. Once the territory government accept us, we are able to reach the requirements and provide documents to support our application. When process is successful, we grante a Business Innovation and Investment provisional visa,and will be valid for 4 years and 3 months. we also may be eligible for the Business Talent visa if we reach three requirements including nominating by a territory government agency, inviting to apply for the visa and having the required funding or assets.

( Can you foresee any complications in signing agreements is Australia when you consider Filipino law Vs. the law in Australia?—Professor)

Consider the country where you want to expand your business: is IP protection important to you? If so, how will you do it?

As our company works toward an expansion plan to reach the Australian market, IP protection is important towards many aspects of our company. For the consumers, having IP protection is key when making transactions with us. Cash registers may be hacked and the privacy of the customer will be at stake. On the other hand, for our business to stand out from competitors our Jollibee bee is our iconic mascot that brings smiles from miles away. Losing the trademark of our Jollibee bee will cause our business to lose part of its core value. This is the reason expanding branches to Australia will not cause much conflict in the aspects of IP protection. Australia is a strong developed country that takes into account IP protection on trademarks, patents, and other intellectual property for both businesses and individuals.

Conclusion/Recommendations: Based on your research findings, what changes would you recommend to your initially proposed strategy?

With Australia being a diverse and culturally accepting the expansion of Jollibee was a great idea and not much needs to be modified.

(Consider researching the Filipino population living in Australia and the geographical places where they concentrate—Professor)

CH 4

Consider the country where you want to expand your business: How can your company change the local culture?

Australia represents a predominantly Western culture since the colonization of the British in 1788. According to "Global Business Tody", Australia's work-related value for individualism is 90, which means the country has a distinct sense of "lucky country." Since World War II, Australia received an influx of immigrants from around the world, therefore making it the diverse country it is today. While Australia does not collect statistics on racial backgrounds of its citizens, it does have a census that collects information on distinct ancestries. In the 2016 census conducted every five years, 304,000 people claimed to have Filipino heritage. This is important to factor in when bringing in a Filipino restaurant to Australia. Jollibee can change the local culture in that Australians will have a new experience that is associated with the Philippines, and this may cause a larger amount of Filipino people to move to Australia. This can also shift how Australians view Filipino food due to the lack of Filipino cuisine in the area. Since Jollibee is a chain restaurant, it can be more effective at bringing in a consistent customer base and establishing itself in the region, instead of being a niche Filipino restaurant that may not garner as much attention.

Consider the country where you want to expand your business: What folkways & mores do we need to consider and why?

Folkways are customs or beliefs that are common to a particular society's members. On the other hand, mores are a set of ethical customs, which are derived from commonly accepted or acknowledged practices. One of the mores that ought to be considered is relationships since Australians highly value relationships and loyalty. Australia is not highly populated, thus getting along with every individual is essential since the probability of crossing paths again is very high. Considering such practices could help attract more loyal customers. Also, people in Sydney are direct communicators and generally talk in colorful language, unlike in various countries. In Sydney, being truthful and upfront can help one build excellent business connections faster.