MANAGEMENT PRINCIPLES AND DYNAMICS BUS500M/KTC/1800-2115 W AY 2013-2014.

1st Trimester

Raphael Cabuslay

Art Gesmundo

SYNTHESIS Leadership is a critical skill for an MBA student that is both learned through experience, but with guiding concepts learned through discussions and theories. Given that the concepts surrounding leadership have been thoroughly discussed in Management Principles class, experience should solidify the learning process. However, due to the lack of exposure or opportunity of some MBA students, a study relating a successful business leader to leadership concepts may help increase learning, substituting experience with that business leaders successful track record. Mr. Tony Tan Caktiong is a Chinese born Filipino who graduated from University of Santo Tomas with a degree in Chemical engineering. Currently, he is best known as the founder of Jollibee foods corporation. Under his guidance, he has transformed a Magnolia Ice Cream Franchise into a fastfood corporation that has a larger market share in the Philippines compared to Mcdonalds, a significantly larger multinational company. POINT OF VIEW This paper will focus on the point of view of an MBA student who will attempt to analyse a Filipino business leader using Management Principles leadership concepts. STATEMENT OF THE PROBLEM Using Leadership concepts from Management Principles, what can we learn from Tony Tan Caktiongs management of Jollibee foods corporation? STATEMENT OF OBJECTIVES 1. To analyze Tony Tan Caktiongs leadership style based on the Leadership chapter from Management Principles class. 2. To understand how leadership concepts are applied in actual situations through Tony Tan Caktiongs previous actions. 3. To convert findings into knowledge that can be applied at the authors current level. AREAS OF CONSIDERATION Origin of Jollibee food corporation Tony Tan Caktiong started out with franchising Magnolia Ice Cream in two locations in Metro Manila back in 1975. Mr. Manuel Lumba, a consultant hired by Mr. Caktiong for expansion, suggested offering additional products like hamburgers and chicken. The franchise experienced growth, with Mr. Caktiong hiring additional people to help manage the business. By 1978, Mr.

Caktiong already had six ice cream parlors. He then noticed that most of his customers were more interested in the burger than the ice cream. He then discontinued his Magnolia franchise and converted his restaurants into fast food outlets. He decided to create the brand name Jollibee for this new restaurant. Growth of Jollibee food corporation By 1984, Jollibee reached the P500 million annual sales mark, catapulting the company into the list of the Top 500 Philippine Corporations. In 1987, barely ten years in the business, the company joined the ranks of the Philippines Top 100 Corporations. In the recent years, Jollibee acquired other food establishments such as Chowking, Greenwich, Delifrance, and Red Ribbon. Today, Jollibee employs about 26,000 people in more than 1,000 outlets in seven countries, including the United States and China. In the Philippines, Jollibee commands 65% of the domestic fast food market, competing very successfully against established global brands. In 1993, it became the first fast food service company to be listed in the Philippine Stock Exchange. In the ten years since, the company has been consistently profitable, reaching an annual net income of P1.170 billion as of September 2004. McDonalds vs. Jollibee McDonalds arrived in the Philippines by 1982. Given that McDonalds is a very well-established Multinational company, Jollibee was able to hold its ground and maintain a larger market share. This is primarily because Jollibee was able to identify Filipino food preference (starting with rice), and taste. They are more dynamic and flexible as compared to Mcdonalds, which maintains a strict set of standards for their food items.

Mr. Tony Tan Caktiong towards employees As a leader, Mr. Caktiong believes in convincing people instead of giving directives. He prefers to motivate his employees by implementing a strong rewards system. He is very particular with his treatment of employees and avoids appearing too harsh or direct towards them. CONCLUSION Given the success of Jollibee, is it clear that the company has been under excellent leadership primarily under Mr. Caktiong. His approach towards challenges that faced the company have proven effective, and has steered Jollibee foods corporation into the right direction. MBA students can definitely use Mr. Caktiong as an example of an effective leader, and with application to management principles concepts, better understand what an effective leader truly is. ALTERNATIVE COURSES OF ACTION

RECOMMENDATION

LEARNING POINTS REFERENCES

Satorre, S. (n.d.). Jollibee: Beating McDonalds in Burgers | Ursula's Desk .Ursula's Desk | personal and book blog of Sheryl B. Satorre. Retrieved August 20, 2013, from http://sherylsatorre.wordpress.com/2011/08/18/jollibee-beating-mcdonalds-in-burgers/ n/a. (n.d.). Jollibee Vs McDonalds - Filipino burger kings fight against global giant. LasanthaW on HubPages. Retrieved August 20, 2013, from http://lasanthaw.hubpages.com/hub/Jollibee-and-McDonalds-Filipinoburger-king Rasing, M. (n.d.). Tony Tan Caktiong: Growing a Hamburger Chain the Filipino Way! | Mighty Rasing. MightyRasing.com. Retrieved August 20, 2013, from http://mightyrasing.com/tony-tan-caktiong/ Laug, C. (n.d.). A jolly Filipino makes Jollibee jolly . Business Highlight . Retrieved August 20, 2013, from http://www.businesshighlight.org/business/a-jolly-filipino-makes-jollibee-jolly.html From Ice Cream Parlor to Fast Food Empire: Tony Tan Caktiongs Story. (n.d.). WIPO - World Intellectual Property Organization. Retrieved August 20, 2013, from http://www.wipo.int/ipadvantage/en/details.jsp?id=2531 Yahoo! Groups . (n.d.). Yahoo! Groups - Join or create groups, clubs, forums & communities . Retrieved August 20, 2013, from http://groups.yahoo.com/group/pedulianaks Goseco, A. (n.d.). The 3 roles of a smart leader | Get-started | Entrepreneur.com.ph. The Jollibee Story. (n.d.). reyna elena dot com. Retrieved August 21, 2013, from www.reynaelena.com/2006/07/02/the-jolibee-story/