Jollibee A quick analysis of the industry that Jollibee operates in will bring to light several important issues thatit faces in different areas. The company started in 1975 and expanded quickly throughout the Phillipines . Upto 1983, Jollibee faced no serious challengers. The entry of McDonalds into Phillipines changed things, and it was during this year that Jollibee first invested heavily in advertising. Increasing globalization Sourcing beef materials from different countries and locating in foreign markets both introduce the company to global developments such as exchange rates and tariff and non-tariff barriers that could potentially change how operations continue in the future. The migration of large numbers of Fillipino workers to different countries is another factor to consider and exploit. Industry profitability Minimizing the company's operating cost by creating an efficient production is one way to increase its profitability. This can be done by adopting new technologies that can speed up the company's operation. These can greatly help the company to capitalize on economies of scale. The same concept forces other players to innovate and cause changes in the industry. Interest of the buyers for differentiated products Differentiated products are necessary to cater to different segments and to retain the interest of the existing customer share. Retaining the existing market share and expanding market share , both require differentiation in terms of variety of food provided in the menu. Jollibee-Marketing Analysis Jollibee was started as an ice cream parlor and later discovered its destiny as a hamburger chain in 1978. Jollibee has attained worldwide admiration in so short a time. Today, it owns Chowking, Greenwich, Red Ribbon, and Philippine franchise of Deli France. It has become one of the biggest fast-food chains in the world with more than1,600 stores worldwide. Jollibee was able to attain a competitive advantage in Philipines over McDonald’s by doing following things: Jollibee was the first to enter the market. Retaining tight control over operations management, which allowed it to price below its competitor. Having the flexibility to cater to the tastes of its local consumers. As Jollibee entered international markets, it faced new challenges. The fast food industry is highly competitive and price wars and marketing innovations are seen frequently. The rivalry is also centered on the key success factors of the industry, which are good food, good, service and reasonable pricing. Rivals are somewhat equal in capabilities and opportunities, thus making the competition stiffer. Internationally well-established players like KFC and McDonalds had high brand values that Jollibee found difficult to compete with. The threat of substitute products is considerable. Local street food and high-end restaurants form two ends of a range of substitutes. Potential entrants face entry barriers that will hinder them from entering the industry. These are the inability to gain access to technology and specialized know-how, brand preference and customer loyalty, capital requirements, economies of scale, and strategically situated distribution channels. Jollibee PhilippinesJollibee Philippines is one of the most popularphilippine franchise. Originally opened as a Magnolia Ice Cream parlor at Cubao in 1975, the name was originally called Jolibe. In 1978, the business focus shifted from ice cream to hamburgers. Jollibee studies showed a much larger market was waiting to get tapped. Lumba became Tony Tan’s first business and management mentor. After changing the name to Jollibee, the Jollibee mascot was nspired by local and foreign children’s books. Developed by a management consultant named, Manuel C. Lumba working for Tony Tan Caktiong next created the product name “Yumburger” as well as the name “Chickenjoy”. Later Tony Tony made Manny Lumpa in charge of developing the franchise. The stores were re-designed, the service transformed into a full self-service, fast food operation with drive thrus. The first headquarters was located on Main St. in Cubao, Quezon City. Lumba developed a long-term marketing strategy, listing up a number of consumer promotions and traffic building schemes while maintaining internal strengths required by Tony Tan. We won’t be going in detail on how Jollibee Philippines exactly work. We are here to analyze the reason and principle of Jollibee Philippines’ success. Acquistions in the Philippines The corporation is actually known as Jollibee Foods Corporation. Oh and if you thought that Jollibee was the only fast food chain operated by this coporation, boy are you in for a surprise. To me, it seems like JFC owns a majority stake in all of the Filipino fast food niches. Do you ever eat at Chow King? I know I love the halo-halo there, but did you know that in the year 2000, JFC acquired Chowking! That’s right, all the delicious oriental style fast food from Chow King is operated at a high level by the same corporation as Jollibee. Oh and that’s not all. Seems like Jollibee Foods Corporation has the idea that diversification is key to its future, and I think they’re on the right track. JFC also bought out the popular fast food pizza restaurant known as Greenwich Pizza. Additionally, in 2005, Red Ribbon Bakery became part of JFC. Keeping with the baking theme, JFC acquired the French cafe and bakery known as Delifrance. The division of JFC that handles business inside of the Philippines is known as Jollibee Philippines. Acquisitions outside of the Philippines JFC has holdings in several other Asian countries including China and Taiwan. There’s a Chinese fast food chain named Yonghe King in mainland China (based in Shanghai) that is owned and operated by JFC. Another Chinese restaurant chain named Hongzhuangyuan was acquired on September 21, 2007. This chain has 33 locations in Beijing and was purchased for the amount of US $50.5 million. Wow! I sure was surpised when I learned about all those acquisitions. It’s interesting to note that when I walk into any of the chains above that they’re owned and operated by the same corporation. I’m glad that Jollibee has a great track record with the Filipino community and that in addition to the amazing Jollibee Philippines, they can offer us a variety of different foods ranging from pizza, oriental food, coffee and baked goods. Yum! Jollibee Philippines Organizational Structure Success in any industry is acheived by a variety of factors, amount of capital, market segment targeting, values held by company founders and the type of people who are hired has a big impact as well. Still, something that many companies lack to take them to the next level is the organizational structure that allows the right people to be in the right place. There’s a saying that goes: First you gotta have the right people on the bus. Then you gotta make sure each person on the bus is sitting the right seat that’s designed specifically for their unique strengths. Only then do you worry about where the bus is going. I believe that Jollibee had the same idea when they introduced a host of changes to their business beginning in 1994. These changes were mostly focused on creating more structure and taking advantage of more resources. First of all, they hired Tony Kitchner, the first outsider vicepresident to handle their international operations. This was a key move to separate Jollibee International from Jollibee Philippines. They introduced FSM’s, known as Franchise Services Managers to help keep their franchise owners abreast of the new changes. These changes were aimed at creating a “world class” view, and you could see some of the changes visibly through the newly differentiated logo to the new packaging. They also instituted a dress code change as well as began to recruit from outside. Overall, these changes certainly kept Jollibee ahead of the game, as 10 years in the future, their success would be so great as to garner the Entrepreneur of the Year Award by Ernst & Young for founder Tony Tan Caktiong. The Jollibee Philippines Mascot I honestly wonder what goes through the heads of fast-food chain management and founders when deciding what their mascot should be. It must have been an interesting time when the creators of McDonalds came up with the idea of a friendly clown dressed in red, yellow and white. I guess things were a bit simpler for Dave Thomas when he named the franchise after his daughter Wendy, though I would hesitate to call her a mascot. We all know how bad (or maybe good?) things can get when a fast food chain brainstorms the brilliant idea of a talking chihuahua that speaks in Spanish about how much he wants (or loves?) Taco Bell. Interestingly enough, not all successful chains need a mascot (or maybe they weren’t memorable) in the case of chains like Arby’s, but many do, like Jack of Jack in the Box and The King of Buger King – all normal people with ridiculous masks or, um, heads. Now what does this have to do with Jollibee in the Philippines? Well, many would attributeJollibee’s success in the Philippines to its mascot, sharing the same name as the franchise: the Jollibee. Is it a coincidence that Jollibee chose its mascot to be bright yellow and red as well? Perhaps not – as gaudy as those colors may seem, they are more than vibrant enough to catch the eye’s attention. These colors exposed to children who grow up on Jollibee begin a lifelong association of bright yellow and red with delicious, affordable and fast food. Reminiscent of the memorable flavors of popular condiments for hamburgers (or Yumburgers) and hot dogs, the yellow and red bee namedJollibee is dressed in a chef’s hat along with a shirt and blazer. Jollibee’s smiling face is friendly enough to be a favorite among kids, and his face is prevalent in many locations that include playrooms for children. Clearly, this cartoon figure is aimed at the younger generation, but it does not alienate the older generation, especially these days, when many of us have grown up eating Jollibee. It’s easy to say that this figure has been pivotal in the branding and marketing efforts that have led to such success in the Philippines. Personal View About Jollibee’s Taste This next few post is in my personal point of view. I have friends and relatives that live on the other parts of the world. They have shared all their experiences in dining at Jollibee fast food chains. But one similar opinion they had is that not all Jollibee franchises are the same. They have different tastes and hospitality when it comes to service. The food is somewhat different to what we are served in the Philippines. My friend in Hong Kong once told me, (the first Jollibee in Hong Kong) that the food is not as good as it was on the Philippines. Is it because the Philippine native chicken better? However, Jollibee is Jollibee no doubt, whereever you see that Jollibee mascot, that orange stiped honey bee smiling at you, you can never resist! Jollibee and Mc Donalds Like any other franchise, fast food chains like McDonalds and Jollibee is one of the leaders in providing employment for the Filipinos. It is said that 60% of all college students have had experience in working in this fast food chains during their college days. No doubt, fast food franchises helps the Philippine economy. Jollibee is an American-style fast food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes with affordable prices. It is also known as the leading fast food chian in the country with its main focus is to make every filipino people happy in every meals. The Jollibee logo was inspired by the changes in its original name “jolibe” to Jolly Bee and then later changed it to what is now known as Jollibee by changing the letter “y” to “i” in the word Jolly. Improvements were made later by creative advertising people including the design of the Mascots and other Jollibee images. These simple brand image innovations were inspired by Manuel C. Lumba, a management consultant who served as the original mentor of Tony Tan . Financial Status of Jollibee: Jollibee Foods Corp., the country’s largest food service company, reported a 17.2percent increase in its net income for the first quarter as sales in local and foreign markets defied the global economic downtrend. In a disclosure to regulators, the company said that its systemwide sales grew to P15.1 billion in the first three months of 2009, representing a 13.8-percent increase over the same period last year. System-wide sales measures revenues from both company-owned and franchised outlets of Jollibee and associated units. According to the report in the Phil.business week, sales from the firm’s foreign businesses grew by 62.4 percent. Foreign operations account for 16 percent of Jollibee’s business compared to only 13 percent last year, and only 3 percent five years ago. The Jollibee chief stressed, however, that the company remains on track, despite the prevailing economic turmoil. Jollibee has allotted P4 billion for capital expenditures this year, 37 percent higher than what it spent in 2008. It plans to open 186 stores this year. FRANCHISING OF JOLLIBEE: - Following are qualifications Jollibee looks for in a franchisee: • An entrepreneur who is self-driven; • Knows how to motivate his people; • Willing to devote time to oversee the day to day operation of his restaurant; • Willing to undergo a full time training on restaurant operations; • Ability to fund the investment requirement. - The financial requirement depending on the final store size and facilities ranges from P15 to P30 Million. - The investment includes the construction of the store, kitchen equipment and facilities, furniture and fixtures, air-con system, signage, and pre-operating expenses. - The size of the property required for a restaurant is dependent on the store model that will be developed in a particular market. -Jollibee does not provide any financing. - a person can still apply even if there is no location or site, but only applicants with applied sites will be processed by Jollibee for now. In the meantime, Jollibee will include the interested person in its data bank of interested applicants without applied sites. - The restaurant profitability is dependent on several factors such as sales, market potential, investment and the ability of the franchisee to control his operating expenses. Other questions on financial viability will be discussed only during the interview process. -The franchisee is required to successfully complete a 3-month full time Basic Operations Training Program (BOTP) at a designated training store. - Jollibee will assist the franchisee in the recruitment and training of its management team. However,this team will be employees of the franchisee who is responsible for their salaries and benefits while on training Factors influencing the success of Jollibee: 1. Jollibee use market niche strategies to beat McDonald's. Well, in terms of global market Jollibee is a mouse among the elephants but in the Philippines Jollibee control over 80% share of hamburger and 55 % fast food market as a whole. Market niches Jollibee develop products for their customer must also develop message tailored especially for their target customer. Observe how they use communication tools as a niche to reach their AUDIENCE. They target groups customer so that it meets their customer needs better than others. They are specializing in one. 2. Success in any industry is achieved by a variety of factors, amount of capital, market segment targeting, values held by company founders and the type of people who are hired has a big impact as well. Jollibee has the same idea when they introduced a host of changes to their business beginning in 1994. These changes were mostly focused on creating more structure and taking advantage of more resources. First, they hired Tony Kitchner the first outsider vice-president to handle their international operations. They introduced FSM’s, known as Franchise Service Managers to help keep their franchise owners abreast of the new changes. These changes were aimed at creating a “world class” view, and you could see some of the changes visibly through the newly differentiated logo of the new packaging. They also instituted dress code changes as well as began to recruit from outside. 3. Many would attribute Jollibee’s success in the Philippines to its mascot, sharing the same name as the franchise: the Jollibee. As colorful as those colors may seem, they are more than vibrant enough to catch the eye’s attention. These colors exposed to children who grow up on Jollibee begin a lifelong association of bright yellow and red with delicious, affordable and fast food. Reminiscent of the memorable flavors of popular condiments for hamburgers and hot dogs, the yellow and red bee named Jollibee is dressed in a chef’s hat along with a shirt and a blazer. Jollibee’s smiling face is friendly enough to be a favorite among the kids and his face is prevalent in many locations that include playrooms for children. Clearly this cartoon figure is aimed at the younger generation, but it does not alienate the older generation especially these days when many of us have grown up eating Jollibee. 4. Kids of all ages always asked for one thing when they are asked where they would want to eat, and one cry would always echo, “Jollibee!” The Jollibee Foods Corporation has expanded its reach to every part of the Philippines and is now expanding to countries with Filipino communities giving them a feel home wherever they are right now. JFC has taken change as a constant in their business, being able to adapt is the best quality any business can have and to able to capitalize on the adaptation is the best effect any change can bring forward. Over the years the Jollibee Foods Corporation changed in so many ways but still managed to keep and strengthens its identity, the changes they made are those that made their product and services better and kept true to their values thus giving them unimaginable success and making them a true Filipino Fast food. Now, overseas Filipino workers (OFWs) can now send Jollibee treats to their families and beneficiaries at home. Because of the agreement between I-Remit and JFC OFWs can pay a visit to any I-Remit foreign office, choose a variety of Jollibee meals and party packages, and have them delivered to their families in the Philippines. The tie-up would break a barrier of distance by preserving family tradition. Through this agreement, Jollibee can continue its long tradition of promoting special bonding moments even for the hardworking OFWs. 5. Jollibee’s food is especially designed and created for the Filipino people. No wonder, many Filipino loves to eat in Jollibee for it suits the taste of majority Filipino and the hospitality of service is somewhat different also as compared to other fast food chains. This is the reason why Jollibee is a special place to eat because it makes the meals to the Filipino taste 6. Jollibee is one of the leaders in providing employment for the Filipinos. Is said that 60% of all college students have had experience in working in this fast foods chains during their college days. No doubt fast food franchises help Philippine economy. 7. Jollibee Foundation is the corporate social responsibility arm of the JFC. It is a nonstock, nonprofit organization certified under PCNC (Phil. Council for NGO certification). Annually, the JFC Family allocates 1% of its net profits to the Foundation to fund its work in all areas: from community and leadership development, to scholarships and feeding programs even relief aid during disasters. The strategic corporate social responsibility (CSR) inititatives are mainly in the areas of Education and Community Development. They are as follows: -improving the access of deserving high school students to post-secondary education, training and employment in courses related to JFC businesses leading to eventual employment at JFC and other establishments. -in-school feeding of undernourished students in communities with JFC brand presence and encouraging employee volunteerism for implementation. -Assisting small farmers develop their capability to grow and become potential suppliers of some raw material requirements of JFC and others. -Developing viable small enterprises in relation to the development of potential small entrepreneurs as JFC franchises. Based on the strategies mentioned I conclude that Jollibee still belongs to quadrant II “star” because it has a high market share based on its current reports, high industry growth which is proven by the fast expansion and acquisition all over the world. It has also the best long run opportunity growth and profitability based on the report that Jollibee continues to rise its earning s and profits amidst uncertainty. EXTERNAL ENVIRONMENT Operating Environment: Supplier: The Jollibee Commissary System ensures the manufacture and distribution of safe and high- quality food in the most cost-efficient manner. There are three Commissary System sites: Santolan, Pasig City; Mandaue City, Cebu; and the central site in Canlubang, Laguna. The System, which operates 24/7, manages Jollibee’s total supply chain process. The Jollibee Pasig City commissary has production lines for breads and sauces, and is the distribution center for North Manila and North Luzon. In 1996, Jollibee opened the Vismin Foods Corporation (VFC) in Mandaue City, Cebu to service the Visayas and Mindanao areas VFC has its own bread, pie, sauce, and frozen patty lines. The Laguna commissary is the biggest and most advanced in the country and among Asia’s best. Operated by Zenith Foods Corporation (ZFC), a full subsidiary of Jollibee, the newest commissary is on a 6-hectare property in the Calmelray Industrial Park. Aided by custom-made mechanized equipment, the 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 stores. The chicken marination 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 480,000 pieces 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, Brunei, and the USA. Various sauce products are processed in the ZFC sauceline including those for the Jollibee bestsellers, spaghetti and palabok. A professionally staffed Technical Services Team supports the maintenance of an internationally accepted quality management system that further ensures the quality and safety of the commissary manufactured food products. High caliber teams from Engineering, Human Resources, Information Management, Finance and Accounting likewise provide support to the Manufacturing and Logistics operations of the Commissary. Proof of Jollibee’s adherence to high quality standards is the various awards it garnered for the commissaries: in 1997, the commissary in Pasig earned the Outstanding Industrial Plant in the National Capital Region from the Laguna Lake Development Authority and the Most Improved Industry awarded by the Sagip Pasig Movement while Commissary Plant Engineer Romy P. Fernandez was awarded as one of the Top Ten Most Outstanding Pollution Control Officers of the Philippines. In 1998 also, the frozen patty line in the Pasig commissary was awarded an ISO 9002 certification by the SGS (Societe' Generale Surveillance) Yarsely, an international certification body. 2004 is a banner year for Vismin Foods Corporation (VFC) who has been assessed and certified by the National Meat Inspection Commission of the Department of Agriculture, to have fully met the requirements and standards of Good Manufacturing Practice, reinforcing the commissary’s "AAA" accreditation granted by the same agency. Labor: There were 1,429 employees hired in Jollibee Foods Corporations. The company provides scholarship in some of the selected schools for those who cannot afford to go to school. The employee is given a 10,000 per semester and in return the employee will work the store for 4 hours or more. The store is also accepting or prioritizing students that wants to have a part time job to earn extra income. They will be compensated based on the hours of work and a free meal is given in every break. Like the other company, Jollibee is giving a double pay during holidays. An award called employee of the month is given to the crew who really works hard and an incentive is also given for the counter crew who achieved the highest sale of a particular product depending on the manager. Thus, in this way an employee will be motivated to work hard. When a particular contract ends an employee is given a separation fee based on the total number of hours worked and a certificate is also given. For the manager, there will be a manager’s discount of 20% in every products purchase. Of course, there are also some controversies in some of the stores. One of the most common is the stealing or eating of company’s products by some of their employees which is highly prohibited or not allowed. If a person is caught, a warning or a termination is given as consequences. Customers: The primary market of Jollibee is the Children. As you have noticed the structure of the building and the theme is really to attract the kids to dine in the store. When you try to ask some of the kids if where they would want to eat majority of their answer is Jollibee. Surely, Jollibee is a store that every Filipino would love and respect. Their foods are made to suit the taste and preference of every Filipino child. But, a child cannot go to the store without their parents thus, this is not for the kids only but it includes also for the parents and to all people who loves to eat at the store. Most of the company’s customers belong to a class A and class B people. These are the people who have work and usually are professionals. But it doesn’t mean that the other people who do not belong to this group cannot eat to the store. Jollibee is making some of their prices of the products affordable so that everybody can eat in their store. Jollibee being concerned of their customers, OFWs can now send Jollibee treats to their families and beneficiaries at home. Thanks to an agreement between I-Remit and Jollibee Foods Corp., OFWs can pay a visit to any I-Remit foreign office, choose a variety of Jollibee meals and party packages, and have them delivered to their families in the Philippines. The tie-up “would break the barrier of distance by preserving family tradition," I-Remit Inc. chairman Bansan C. Choa said during the agreement signing on Friday. “This project is not solely for great business proposition but it encourages preserving the values of family ties." Under the “‘Salu-Salo Padala Treat Mula Sa iRemit,’ sending “great-tasting" Jollibee products to loved ones at home becomes as easy as sending money whenever and wherever needed," Jollibee president Ernesto Tanmantiong said during the same event. The partnership will also help OFWs ensure that the funds they send home will be spent for beneficiaries’ birthdays and anniversaries, he added. IRemit is now in 26 countries and territories around the world. It also has 4,000 payout stations to cater the remittances originating from its foreign offices to their designated beneficiaries in the Philippines. Based on the information sheet, OFWs can send from any iRemit center in Australia, Hong Kong, Singapore, Austria, Taiwan, United Kingdom, and Canada. “Through this partnership, we can continue Jollibee's long tradition of promoting special bonding moments even for our hardworking Filipinos overseas," Tanmantiong added. “By treating their loved ones in the Philippines with their favorite meals whether during special occasions or simple family gatherings, our OFWs can still contribute and be part of these family moments, even when they are miles away from home." Filipinos working abroad can choose from five Langhap Sarap Family blowout packages good for at least five persons, with prices ranging from P800 to P1,000. These five treats are the Spaghetti + yum with Cheese Treat, the Chickenjoy + Yum with Cheese Treat, the Chickenjoy Treat, the Burgersteak Treat, and the Chickenjoy + Spaghetti treat. The partnership between the largest Filipino-owned non-bank remittance company and the Philippines’ biggest fastfood operator is “very strategic," Harris E. D. Jacildo, iRemit president and chief operating officer, said. However, the two companies declined to the partnership’s contribution will their respective sales. I-Remit has also signed agreements with the Home Shopping Network to market household products. Therefore, majority of its customers were satisfied and delighted of the food they served and the quality o services they performed. In fact, one commented in some of the websites that he always eats to the Jollibee because of its friendly atmosphere and the foods being served are of great quality. The company also gives a discount of 20% for the senior citizens. Creditors: Jollibee foods corporations borrowed money from different financial institutions. Last September 2008 the Company has just entered into an agreement to borrow money from several financial institutions to fund its investments in the People’s Republic of China. The agreement covers a loan denominated in Renminbi amounting to China Yuan seven hundred million (CNY 700 million, equivalent to about USD 100 million) to be paid in three years at a fixed interest rate for Jollibee Foods Corporation and at a floating rate for the lenders at Libor plus 2.25% Financial institutions include the Metropolitan Bank and Trust Company, Banco De Oro Unibank, Inc., Rizal Commercial Banking Corporation and the Bank of Tokyo-Mitsubishi UFJ, Ltd., Manila Branch as lenders; Metropolitan Bank and Trust Company as facility agent; and UNS AG, Singapore Branch as the swap bank. The facility has been arranged by UBS AG, Hongkong Branch. Other sources of funds are the Investors and shareholders of the company like the Hyper Dynamic Corporation, PCD Nominee Corporation, Honeysea Corporation. Jollibee Foods Corp. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis Ask a question Date: January 15, 2012 Pages: 50 Price: US$ 499.00 Publisher: Business Analytic Center (BAC) Report type: Strategic Report Delivery: E-mail Delivery - PDF (on default), Hard Copy Mail Delivery (+US$ 140.00) ID: J630A7D8387EN Jollibee Foods Corp. Fundamental Company Report provides a complete overview of the company’s affairs. All available data is presented in a comprehensive and easily accessed format. The report includes financial and SWOT information, industry analysis, opinions, estimates, plus annual and quarterly forecasts made by stock market experts. The report also enables direct comparison to be made between Jollibee Foods Corp. and its competitors. This provides our Clients with a clear understanding of Jollibee Foods Corp. position in theRestaurants and Leisure Industry. Jollibee – Analysis The case gives an idea about how the competition influenced Jollibee's strategy, both domestic and international. Jollibee ,which was a Filipino chain of restaurants, was forced to change their strategy with the entry of McDonalds in Philippines, which later transformed the company into a global company .The company faced serious challenges with their international exposure. The challenges included the conflicts with franchisees/Joint venture and conflicts between divisions. Another issue that the company faced was the entry into Papa New Guinea, United States of America and expansion plans in Hong Kong. The company has to consider the financial instability it faces while considering their plans. In the analysis we have tried to cover the effectiveness of strategies adopted by Mr Tony Kitchner (Former International Division head).