Answered: How will you describe Tony Tan…

Management, Loose-Leaf Version

13th Edition

ISBN:9781305969308

Author:Richard L. Daft

Publisher:Richard L. Daft

Chapter6: Managing Start-Ups And New Ventures

Section: Chapter Questions

Problem 1CFCA

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INSTRUCTIONS:
Read the article below and answer the question that follows:

1. How will you describe Tony Tan Caktiong's management style?

2.Do you believe that Tony's management style is worth emulating/mimicking? Justify your answer.

3. Should Tony's approach to managing his employees continue as Jollibee expand? Why or why not?

Transcribed Image Text:Tony and Jollibee: Building a Local Fast-food Giant hile earning his degree in chemical engineering at the University of Santo Tomas, Tony Tan Caktiong toured a Magnolia Ice Cream Plant and learned of a franchise opportunity. Thus, together with his wife Grace, he opened two ice cream parlors shortly after graduation in 1975. The 1977 oil crisis affected the price of most products. He then noticed that customers ordered more sandwiches than ice cream. Tony also saw the growing popularity of hamburgers around the world. Thus, he re- launched his ice cream parlor as a hamburger house. A year later, Tony had five stores in Metro Manila and the family incorporated it as Jollibee Foods Corporation. Tony Tan Caktiong and Jollibee In 1981, Jollibee faced serious competition from McDonald's when it entered the Philippines. Being a global brand, McDonald's could easily snatch the market that Jollibee occupied. Tony was advised to concentrate on holding on to at least a second-place position in the market given the popularity of McDonald's. Not to be discouraged with these developments, Tony believed that Jollibee has captured the Filipino consumers' preference for local hamburgers. Indeed, Jollibee captured the Filipino taste and this catapulted Jollibee to the number one position in the fast-food chain industry. While Tony believed that location is a key ingredient in a store's success, another critical ingredient in Jollibee's success is excellent supervision. Quality supervision is vital in ensuring quality service, increasing service crew productivity, and reducing waste. Store managers are key to motivating and controlling crew members responsible for cleaning the store, taking orders, and preparing food. Tony believes in empowerment and motivation. He maintains a strong'rewards system and encourages arriving at a consensus in any decision. Tony also describes his personal management style as people-centered. In fact he disclosed that he has learned to be kind to people, and he seldom scolds a person in the organization, even in private. Tony believes that his employees become more productive when he motivates them, that is why he pushes them to always give their best in whatever they do. Listening is also a primary characteristic of Tony's management style. He has learned how to value the suggestions of others especially his employees. He believes that each person, no matter what his or her position in the company, has a valuable insight that can give the company an advantage in the industry.

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