Table of Contents

I. Intorduction
A. Overview
B. Company Background
II. Analysis of Macro-environmental Factors
A. Political
B. Economic
C. Social
D. Technological
E. Legal
F. Environmental
III. Analysis of Micro-environmental Factors
A. Consumers
B. Suppliers
C. Substitutes
D. Competitors
IV. SWOT Analysis
A. Strength
B. Weakness
C. Opportunities
D. Threats
V. Conclusion
VI. References
 I. Introduction

A. Overview

One distinctive trait of Filipinos is having strong family ties and relationships, aside from
being hospitable, friendly and happy even when facing trials. Filipinos value the importance
of family above all things. They will do anything even if it means making a lot of sacrifices for
the sake of family, a “Family first” mentality as you call it, one thing that will never change
as part of Filipino culture and tradition.

Interestingly, when I think of a business that highly operates around these core values, only
one thing comes to my mind, and that is the Jollibee Foods Corporation.

B. Company Background

Jollibee Foods Corporation is a Filipino multinational company owned by Tony Tan Caktiong.
They own, manages and franchises a vast network of fast-food chains in the Philippines and
Internationally with it’s flagship brand Jollibee. Starting from an ice cream shop in 1975 to a
humburger store in 1978, Jollibee became the number 1 leading fast-food chain in the
Philippines, overtaking it’s foreign competitors such as McDonalds and KFC.

Being recognized over it’s rivals, Jollibee standout in many ways. Their iconic logo and
mascot itself shows the active, funny and jolly image of a bee which resonates the typical
Filipino trait and lifestyle: hardworking, kind and always happy. They are best known for
their unique, sweet and savoury Filipino style of foods such as the yummy “Yumburger” ,
“Jolly Spaghetti”, “Chickenjoy” and “Halo-Halo”. Not to mention the colourful and vibrant
design of their stores and smiling crews, no wonder Jollibee feels like home and captured
the hearts of every Filipinos and foreign nationalities around the world.
Jollibee was recognized for being “one of the largest and fastest-growing Asian restaurant
companies in the world” during the ABA’s 43rd annual awards banquet held at the Langham
Huntington in Pasadena, California last October 10,2019 (Asian Journal Press,2019). There
were a total of 1,163 Jollibee outlets in the country and 238 outlets on it’s International
operations (Vietnam 118, Brunei 17, Hong Kong 8, Singapore 7,Macau 1, Malaysia 1,United
States 37, Canada 4, Saudi Arabia 13, UAE 14, Qatar 7, Kuwait 6, Bahrain 1, Oman 1, Italy 1,
United Kingdom 1, and Guam 1) as of June 30,2019 (PSE, 2019). Aside from that, JFC also
owns and franchises several businesses in the Philippines and overseas such as Chowking,
Greenwich Pizza, Red Ribbon, Mang Inasal, Burger King Philippines, Smash Burger,Pho 24,
Yonghe King, Hong Zhuang Yuan, Dunkin Donuts, Highlands Coffee, Hard Rock Café. Recently
this year, JFC acquired the Los Angeles-based Coffee Bean and Tea Leaf for $350 million
marking it’s second largest business after Jollibee (Klein, 2019).

II. Analysis of Macro-environmental Factors

Political Factors

-Government policies provide certain regulations in any businesses such as in a fast food
industry. Health concerns related to obesity and cardiovascular diseases among adults
and children prompts the government to control the marketing of this kind of business.
The government also regulates their licenses even with their franchise business. That is
why it is important to have a good relationship with the government like paying the
appropriate taxes and ensuring that they follow the Philippine labour code implemented
to protect the rights of workers.

Economic Factors

-the company needs to deal with is the fluctuation in currencies and the raw material
supply of the business. Any changes in the currencies will affect it’s production cost and
the business as a whole. For them to be successful and continue their operation in a
certain country, they need to pay the tax due to them.

The status of the country’s economy also impacts the company. If the economy is not
good, more likely people won’t be able to afford buying the products since it is
expensive as compared to the normal foods they eat. On the contrary, if the economy is
good, it means the consumers have the extra money to purchase or eat in a restaurant.

Social Factors

-One thing that differs from a restaurant to it’s competitor is the quality of their services
and products, and also how convenient it is for the consumers perspective. Aside from
that, a very nice and cozy ambiance and facilities like WIFI and Credit card payments are
essential especially in the metropolitan areas.
 Technology

As the fast food industry is increasing, Jollibee needs to come up with new innovations
to improve their business. In this highly competitive world, technology is very important
in our personal lives even in managing business operations. Today, ordering food or
clothes becomes easy as 1,2,3 through the use of online ordering system or social media
and it is popularly used anywhere in the world.

Legal factors

-In 2018, Jollibee faced issues about employee contractualization. Many of it’s workers
did a protest against the company and it has greatly affected their shares. On April
4,2018 the company had a decline of 3.85% on their shares after the Department of
Labor and Employment ordered them to regularize about 6,482 or their workers
(Chrisee Dela Paz,2018).

Environmental factors

As population increases, the percentage of the natural resources being used also
rises. Because of this, the government needs to make and amend laws that will make the
country a sustainable environment not just for the present but also for the future
generations. Nowadays, sustainability awareness and campaigns are rampant anywhere.
Some even organize protest about climate change and how our actions impact the
environment.

III. Analysis of Micro-environmental Factors

Consumers

Since there are several restaurants in the market, the consumers bargaining power is
high. Consumers control the process of buying the products which are based on their
needs and wants. This means that the amount they want to spend for a certain product
varies every time.

Suppliers

Jollibee has their own commissaries to maintain the quality standard of their
production. Since the business is gaining popularity with thousands of branches all over the
world and they offer the same merchandise to all of their stores.

Substitutes
 Consumers always consider their budget when making any purchase. Income plays a
vital role when deciding on the things they buy. In relation to this, the presence of
substitutes in the market threatens any businesses. Thus, a strong brand loyalty is crucial
as it plays a role when consumers make a decision.

Competitors

Gaining and retaining customers in the food industry is a challenging one. With the
booming food industry, companies need to make promotional offers and build a strong
strategy that would appeal to the customers and make them choose the company over
the others.

IV. SWOT ANALYSIS

Strengths:

 Strong, Visible and Reputable Brand.

- They are able to build a strong reputation in the local and international market for
43 years. As of October 11, 2019, the brands market value reached 4.80 billion
(Market Insider,2019).

 Tailored to local taste and preferences.

-They have captured the taste and preferences of Filipinos; the preference of “sweet,
savoury and home-cooked” meal.

 Branding based on culture and tradition.

-They build their brand through the concept of the importance of building strong
family ties and friendship. Filipinos value family and are very emotional when it
comes to issues or stories that revolves around families. Since their primary target
market is the Filipino people, they know that they have to use this for their
marketing strategies. For example, their advertisements or TV commercials are
stories about a traditional Filipino family relationship, friendships, or even between
lovers. When you look at their TV ads, most of it where heart breaking ones and it
even became viral on the internet.

 Quality food assurance and value for money.

-They are known to have cheap, affordable but delicious food options as compared
to emerging competitors.
  Effective marketing strategies.

-they use a wide variety of marketing strategies that targets families and children
such as their promotion on “Jolly Kiddie meals”. These meals come with limited-
edition toys for children. Their affordable birthday party package also comes with a
Jollibee mascot appearance, which is very appealing to children. Apart from that,
their heartbreaking TV commercials such as “Kwentong Jollibee series” has gone viral
and seemingly appeal to the masses.

Weakness:

 Image of fast-food as unhealthy.

-there is a negative notion that links fast food as an unhealthy food and it can be
unfavourable especially for health conscious individuals. Alison Tedstone (2016) states
that fast food consumption is linked to increasing number of people facing with obesity
problems.

 Intensive focus on Filipino taste and preferences.

- Adaptation to the host country through localization of the menu may appeal to the
local consumers. On one hand, Jollibee lacks adaptation to “local cuisine specialties” in
other countries where they put up their branches. They didn’t customize their product in
the host country where they have their franchises, which may become an edge for his
foreign competitors. For instance, KFC incorporated “Nasi Lemak chicken” a special local
cuisine of Singapore and Malaysia. In Indonesia, their McDonald's serves fried chicken
pieces with Bolognese spaghetti. In McDonald's Thailand they offer fried pineapple pie
instead of the usual fried apple pies. It is very evident that big international fast food
chains are using this strategy (Stern, 2010).

 Concentration on International expansion.

-There are large number of cities and provinces in the Philippines that doesn’t have
Jollibee branches, but they already focused on their global expansion. Their focus on
global expansion is a good thing, but it can also be a tool for the small local fast food
restaurants to build more branches in the Philippines without them even knowing.
According to Asian Journal Press (2019), Jollibee will build their North American
headquarters in West Covina, California with a total of 150 stores by the year 2023. It
has expressed aggressive strategies to introduce their best selling items like Chicken Joy
across the United States. One of their goal is to become one of the top five restaurant
groups in the world.

 Unhealthy food selection.

 -For how many years in the food industry, Jollibee didn’t change their menus. One thing
is their lack of modification to their menu items towards healthier food options. For
example, vegetarian or vegan choices, salads and veggies or low calorie foods. In this
new era, it is no doubt that healthy and conscious eating is the new trend. More and
more people are now considering their caloric intake, or even shifting to meat free diets.
Thus it is imperative for a business in the food industry to consider the so-called trends
as they may appeal consumers in a certain way. Ibis world report (2019) said that for the
past five years, consumer health awareness has transformed the Fast Food and
Takeaway Food Services industry. Nowadays, consumers put a conscious effort to check
the nutritional content of their foods and lean towards healthier food options.

 Increasing trend of using sustainable and eco-friendly packaging.

-The use of plastic instead of eco-friendly materials in their cold cups, cutleries, plates,
straws and wraps can hinder consumers who widely support sustainable living practices.
A study from Nielsen Global survey (2015) states that 66% of global consumers say
they’re willing to pay more for sustainable brands- brands that are committed to
environmental friendly practices.

Opportunities:

 Local and Global expansion

-Expansion and integration in the global market, not only in the Philippines or around
Asia but also in America and neighbouring countries.

 Incorporation of “Local specialties” to their menu for their international market.

-Anthony Donague (2018) states that catering to local taste and preferences was a
predictable choice for multinational fast food chains. It will encourage loyalty and at the
same time attracts local diners. An estimated worth of more than $600 billion will come
from the global fast food industry by 2019.

 Increasing trend of the use of E-commerce.

- The use of online ordering system or invention of its own mobile app as it became a
trend nowadays. This targets consumers who don’t have time to go out and line up to
buy food. It also makes buying food faster and convenient rather than calling the hotline
to order food which can take a longer time.

 Addition of healthy food selections.

-Incorporation of healthy food selections such as vegan, vegetarian, low calorie food,
salads, or addition of baked/grilled chicken and potato fries in the menu instead of the
 usual “Fried chicken and fries”. In the recent years, there is an increasing rate of
consumers who prefers healthier food. Mcdonalds, one of his rivals has added several
healthy options to their menu such as salads, chicken with vegetables and fruits.
(Bjarnadottir ,2019)

Threats:

 Presence of Foreign Competitors

-The existence of international fast-food competitors like Mcdonalds, Burger king,

Subway and KFC not only in the Philippine market but also worldwide can be a lifelong
threat to Jollibee. With constant change in the trends and preferences of consumers, the
food industry needs to deal with these changes too. That is why the presence of local
and foreign fast food chains will always be a threat for Jollibee.

 Increasing costs of raw materials

- Increasing prices of raw materials over the years negatively affects every business, not
to mention the labour costs and taxes a company has to pay. Andrieu Damien (2019)
indicated that it is a continuous challenge for food companies to maintain their
competitiveness while assuring sustainable margins especially when the raw material
prices is extremely volatile.

 Fluctuations in currency exchange rates.

-Foreign currency fluctuation has a big impact in a company’s finances. One negative
effect for instance is that this unpredictability can compel the company to raise their
product prices to cover their production cost. However, these strategies may also result
to loss of customers and at a certain point decreases their profit.

 Negative Publicity

- In 2018, there was a protest on contractualization of labourers against Jollibee Food

Corporation. Some of it’s workers and Patrons organized a protest outside their Main
office in Paranaque city. They encouraged the public to boycott the restaurant through
their campaign #BEEastmode. One Facebook posts made by Defend Job Philippines, a
labour organization in the country, encouraged the public to“temporarily not patronize
JFC affiliates and subsidiaries” as a way of supporting the workers fight (Yamzon, 2018).

V. Conclusion

Jollibee is doing well in the food business industry. For the several years, it has
accomplished major growth not only in Asia but also in other countries. Even though
there is a tight completion in the industry, they were able to keep up with the ups and
downs happening in the global market. After all the research I have done, I could
conclude that Jollibee should continue to take advantage of trends in the market and
continue it’s expansion goals but also look into localization of their products.
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