Fast Food in Australia

Company: Jollibee
Country From: Philippines
Country To: Australia-Sydney
Product/Service: Fast Food

 

How (FDI/Export/License): FDI

 

 

 

Read Ch.4 and respond to the following questions. Add research sources by hyperlinking the cells where you write your response

 

Consider the country-city where you want to expand your business:

 

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. 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, 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.

 

 

 

 

Consider the country where you want to expand your business: How does religion and education influence your strategy?

 

Base on my research from Religion in Australia in the census(2016), 30.1% of Australians stated “no religion.”  Other faiths include Catholic(22.6%), Christian(16.3%), Anglican(13.3%),etc. For education, Australia has separated to nine steps including pre-schools, primary, secondary school, colleges, universities, diplomas, graduation degree, master’s degrees, and PHD. However, the business that we open in Australia is fast food instead of any religious or political business. For education, we also think that it doesn’t affect our business because we don’t need to engage workers who have finished high education like diplomas, graduation degrees or master’s degrees. Therefore, we think that there are no effects to our strategy of starting a business, Jollibee in Australia.

 

Consider the country where you want to expand your business: Is an individualistic or collective society? How does it affect our strategy? (group: agrees it will be okay)

 

When considering expanding Jollibee to Australia, some research as to how much the country is different from our origins is a key factor to take into account whether the company will succeed or not. Although Australia is an individualistic society, our company believes expanding to Sydney will help increase sales and bring a new light of Phillippino cuisine to the country, as mentioned in earlier responses. For example, when the company had expanded from the Philippines to the United States the same situation had happened. As the United States is known as individualistic, similar to Australia, the company had decided to go with Daly City, California. Making Jollibee the first ever Filippino restaurant fast-food chain. We predict the same success will come when we reach Sydney, Australia.

 

Consider the country where you want to expand your business: Is social mobility a factor that we should consider? If so, why?  (pop. of philipino people)

-Would Jollibee bring employees from country of origin to work in Australia under work permit? (if yes, social mobility will be a factor)

 

 

 

 

 

Consider the cultural differences and note a new insights

Compare key cultural differences and list two potential challenges

https://www.hofstede-insights.com/product/compare-countries/

 

According to Hofstede Insights, one of the strongest cultural differences between Australia and the Philippines is the power distance. Australia has an estimated 36 rating, this means the country avoids inequalities in their society. Noticeable inequalities are, but not limited to: the rich and poor, the educated and uneducated, and racial backgrounds. In Australia, work is not difficult to find; however, the leading inequality the country has is housing for the citizens. Rising house prices, from rent to mortgage has increased the power distance for the rich and poor. On the other hand, the Philippines’ power distance is three times as much as Australia, coming in at 94 rating. The book mentions high power distance countries allow the unequal characteristics between individuals to grow into being competitive for power and wealth. In the Philippino culture society respects authority more; for example, a person with a degree is more inclined to emphasize his or her educational status when being addressed in person. Another cultural difference between the countries is collectivism versus individualism. Collectivism is considered the norm in the Philippines, compared to Australia which is more individualism. This may cause conflict within our company based on who may be the spokesperson for our company and how to incorporate the Australian cultural way of individualism in the workforce. Although Jollibee is successful in the United States, expanding the chain to Australia may cause a social clash when introducing a new cuisine and jumping into their market.

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