Martinez, Shann Antoine Thomas C.

Dejelo, Rhona

Guevara, Bea Patricia

BSA – 701

01 Task Performance 1

Jollibee Foods Corporation (Food and Beverages)

Brief Background

Jollibee Foods Corporation started by its chairman, Tony Tan Caktiong, as an ice cream
parlor in 1975, Jollibee Foods is now one of Asia's top quick-service restaurant chains by market
value. Jollibee, the company's flagship chain, has become a household name in the Philippines
Its other quick-service restaurant brands include Chowking, which serves Asian cuisine;
Greenwich, which does pizza; Red Ribbon, a bakery chain; and Mang Inasal, where the specialty
is grilled chicken. The company also owns the Philippines franchise rights for Burger King.
Outside the Philippines, Jollibee Foods has affiliates that develop and operate international
brands like Yonghe King, Hong Zhuang Yuan, San Pin Wang and 12 Hotpot. It has restaurants
in Brunei, China, Hong Kong, Kuwait, Oman, Qatar, Saudi Arabia, Singapore, the U.S. and
Vietnam. The chains sell dishes that are prepared on-site and are based on original company
recipes. The restaurants use company-specified ingredients and supplies, and follow company
standards and procedures. Tan Caktiong, a chemical engineering graduate from the University of
Santo Tomas in Manila, in August stepped down as Jollibee CEO and was replaced by his
brother Ernesto Tanmantiong.
Preliminary Corporate Analysis Algorithm

 What products and markets do this organization supply/serve? What are its business
units?
 Today, Jollibee is one of the famous and fast-moving fast food chains in the
world. Jollibee offers a lot of food variety that will surely catch the eye of every
people. They offer chickens, spaghetti, yum burger, fries, etc. with an affordable
price. Aside from offering products and services to the people, the company
operates through the following segments: Food Service, Franchising, and Leasing.
The Food Service segment operates quick service restaurants and the manufacture
of food products to be sold to Jollibee Group-owned and franchised QSR outlets.
Since, Jollibee became a big company it already has its own strategic business
units for them to be able to perform its duty. Its business units are composed of
Manufacturing Division, Logistics Division, Purchasing Division, Technical
Evaluators and Users, Quality Management, Order Management Group,
Corporate Engineering Department, Research and Development Division. By its
business units, Jollibee can be able to perform their duty. In my perception, we
see the food provider mentioned above as they are all competing with one
another, but the fact is, they are group and have one goal only.

 What is the formal structure of this business organization?

 Jollibee is a flat structure with short chains of command that span wide control
and management. In the flat structure, subordinate reporting directly to the
manager. This helps company make decisions more flexible and more highly
structured adaptable. Jollibee planar structure influence on performance and their
production. With full participation, the skilled team leads to happier employees
and lower turnover. Better team spirits as the management layer at increasing the
interaction between employees on different levels. Besides, at the upper
management staff means less salary management can lead to reduced labor cost
and increasing profits.
 What is the financial performance of each business? What is the contribution of each
business to the overall financial performance of the whole?
 JOLLIBEE Foods Corp. (JFC) generated ₱153 million in net attributable income
despite lower sales in the first quarter, as it bounced back from the P1.68-billion
loss recorded in the same period last year (2020). The fast-food giant recorded a
12% revenue fall to ₱34.68 billion from ₱39.43 billion. It finished the quarter
with an operating income of ₱1.49 billion, a reversal of last year’s ₱1.17 billion
loss. The company launched a business transformation program in May last year
to rationalize the company’s operations, which resulted in the permanent closure
of 486 nonprofitable stores worldwide and four commissaries in the Philippines
on top of other cost-saving initiatives. Jollibee also said it implemented selling
price adjustments in the fourth quarter last year and in the first quarter this year to
offset the impact of higher inflation. System-wide sales for the quarter went down
by 13.4% to ₱47.78 billion from ₱55.15 million year on year. The company’s
international business accounted for 41.1% of the first-quarter’s global system-
wide sales for the quarter, while sales at home contributed 58.9%. However,
because of the pandemic, the sales from the Philippines declined by 21.3%, while
sales from the company’s international business improved by 1.3%. Global same-
store sales in the January-to-March period decreased by 14.7%, with same-store
sales at home declining by 26.1% as businesses abroad improved by 7.5%. In a
separate statement, Jollibee is planning to issue preferred shares and is eyeing to
buy back up to $250 million of its US-dollar perpetual bonds via a cash tender
offer within this year. JFC’s objective in this plan is to restructure its financial
obligations in order to strengthen its balance sheet, spread the maturity of its
financial obligations and reduce its foreign exchange risks.
  Who are the major stakeholders in the organization? What are the issues that are
important to these stakeholders?
 The major stakeholders in the organization are the customers and employees of
the JFC. Stakeholders give the business a practical and financial support. The
issues that are important to these stakeholders can be defined as a party who
affects, or can be affected by, the company's actions. Consideration of the
treatment of stakeholders can encompass a variety of issues including: systems,
policies, reporting and engagement. On the other hand, auditing social
responsibility audit could generate a lot of benefits. As such, social responsibility
audit reports could be a useful management tool to help companies identify and
define their social impacts and facilitate improvements in concerning
stakeholders’ issues.

Individual Business Analysis Algorithm

 Who are the consumers of the unit's goods and services?

 Jollibee knows their target audience very well, which are the traditional family
and all communication materials focus on the importance of family values,
making Jollibee the number one family fast food chain in the Philippines and a
growing international QSR player. To be more specific, Jollibee primary target
market (PTM) are the “Traditional Filipino Family” Kids 3-12 years old, teens
13-24 years old, adults 28- 38 years old.

 Why do its customers choose this business unit's products? What need is being met?
What are the key success factors in this market?
 From then to now, customers are choosing business unit’s products that is
affordable yet satisfying. And once the tastes amaze them, customers will
 continuously be choosing and buying the same business unit’s products they tried.
Those who grew-up with budget-conscious parents, eating in a fast-food like
Jollibee is something that their parents can squeeze into their budget and because
Jollibee offers meal that is affordable, Jollibee is always on top of the place to go.
Also, Jollibee serves food that captures the Philippine palate perfectly.
Jollibee’s menu is very Filipino but has Westerners’ twist. It’s flagship product
“Chicken joy” is the best tasting fried chicken for most of the Filipinos. Hence,
the tag line “panlasang Filipino at home sa Jollibee” became popular because it
really encapsulated what each Filipinos think about the food served by Jollibee.
Jollibee's business success relies on its smart branding strategy, complemented by
strong customer orientation, superior menu line-up, innovative new products,
creative marketing programs and efficient manufacturing and logistics facilities.
Furthermore, the key success factors in this market includes: the taste of food is
focused mainly on the Filipino audience and the operating system is low cost.

 What are the trends in key performance indicators (KPIs) for this business?

1. System Wide Sales – A measure of all sales to consumers both from company-owned and
franchised stores.

As of end Dec 2012 As of end Dec 2012

System Wide Sales ₱92,271.2 Million ₱82,170.1 Million
% Growth vs LY 12.3% 17.0%

2. Revenues – Revenues of JFC is measured by the following:

1) all sales made by the JFC owned stores

2) commissary sales to franchised stores

3) rental revenues from Jollibee Group’s property division, and

4) services rendered by in-house construction and service groups.

 As of end Dec 2012 As of end Dec 2011
Revenues ₱71,059.9 Million ₱62,554.9 Million
% Growth vs LY 13.6% 17.2%

3. Net Income Margin – Net Income Margin is the ratio of the Jollibee Group's earnings after
interest and tax. This is computed by dividing net income by total revenues. The quotient is
expressed in percentage. This measures the Jollibee
Group’s return for every peso of revenue earned, after deducting cost of sales, operating
expenses, interests and taxes.

As of end Dec 2012 As of end Dec 2011

Net income ₱3,713.1 Million ₱3,253.8 Million
% to Revenue 5.2% 5.2%

4. Basic Earnings per Share – EPS is the portion of the Jollibee Group’s profit allocated to each
outstanding share of common stock. This is computed by dividing the net income for the year
attributable to the equity holders of the Jollibee Group by the weighted average outstanding
shares during the year, after considering the retroactive effect of stock dividends declaration, if
any. This serves as an indicator of the Jollibee Group’s profitability.

As of end Dec 2012 As of end Dec 2011

EPS (Basic) ₱3,578 ₱3.138
% Growth vs LY 14.0% 0.6%

5. Return on Equity – ROE is the ratio of the Jollibee Group’s net income (attributable to equity
holders of the parent) to equity (before non-controlling interests). It is computed by dividing net
income by average equity. Average equity is calculated by adding the equity at the beginning of
the year to the equity at year end and dividing the result by two. ROE is a measure of return for
every peso of invested equity. The Jollibee Group also uses ROE for comparing its profitability
to that of other firms in the same industry.

As of end Dec 2012 As of end Dec 2011

Return on Equity 18.3% 17.6%

 What resources (assets and competencies) within and around the organization allow
the organization to provide products that customers will buy? To what extent can the
business performance be explained by an understanding of an organization's
resources?
 For business organizations, the area requiring attention is profitability, or the need
to acquire resources. Physical resources or physical assets such as production
equipment, storage facilities, distribution centers and employees form the physical
resources of Jollibee allows organization to provide products that the customers
will buy. Technological Resources Jollibee invest on state-of-the-art technology
on their operations systems to constantly train their managers to amidst
competition. Apart from its marketing strategy the organizational culture can be
identified as Jollibee’s key core competencies. Its organizational culture is the
alchemy of many attributes of Jollibee. And therefore, it cannot be easily copied
by its competitors. Organization’s resources are all assets that are available to a
firm for use during the production process and business performance can be
explained by an understanding of an organization’s resources because the types of
business resources will impact the sustainability of the organization along with
its profitability. For example, if the organization achieves double the sales target
decided, and the company starts to grow rapidly, then the company will keep on
growing only if you understand what key resources are and which key resources
are impacting increased demand. The type of resources are human resources,
physical resources, intellectual resources, and financial resources. By knowing the
4 types of resources, it has a chance to interpret the business performance whether
it is resulting good or bad.
 What are the characteristics of the markets that this business serves? What are the
factors that exist outside the business unit that impact its ability to provide goods and
services? Can this analysis explain trends in performance indicators?
 The characteristics of the markets that the Jollibee serves is made possible by
well-trained teams that work in a culture of integrity and humility, fun, and family
like. Every Jollibee outlet welcomes customers with a clean and warm instore
environment and friendly and efficient service. The factors that exist outside the
business unit that impact its ability to provide goods and services are social,
technological, competitive, and economic. Social affects the business units to
provide goods and service because some of the people has changed their taste.
Technological also has impact on the business units because there are some foods
that are being able to sell online, but, all food business, can adapt technology as
easy as they can. Next thing that has impacts on its business units is competitive,
the impact of a rival firm which may have similar product or which may lower its
prices compared to Jollibee. And lastly, the economic, it affects the Jollibee once
the economic are having inflation rates and unemployment. This analysis can be
explained in performance indicator owing to the fact that the business units will
automatically aware to its performance once there is something change in the
environment and has a huge impact to them. They can easily see their
performance once their sales if it is decreases or increases.

 What is the dominant logic that guides this business’s decision-making and
contributions to the way strategy develop?
 Dominant logic defined as a mindset or worldview or conceptualization of the
business and the administrative tools to accomplish the business goals and make a
better decision. The main goal of this business is to serve great tasting food and
also bringing joy to everyone who eats to their store. They were able to provide
lower price food for their customers. Due to a number of crucial variables,
Jollibee has been able to establish a strong position in the Philippines fast food
sector. Jollibee had a significant advantage because they were well established in
the market and had a low entrance barrier. The ability to provide lower prices
 made Jollibee a dominant force in the fast food market in the Philippines. In
addition, their recipes were tailored to the preferences of the Filipino market and
what clients were already used to. The creation of the "Five F's," which stand for
flavorful food, fun, flexibility, and families, was critical in developing a purpose
and a sort of mission statement. The use of the bee mascot as a marketing technique
helps to establish a link between the company and young people. As a result of their
strategy, they were able to increase their market share and build brand recognition.

 Do the business’s key players have a coherent vision of what they want the business to
be in the medium and long term? Are these business ‘ambitions a coherent part of the
vision for the corporate whole?
 The development, operation, and franchising of Jollibee's quick-service restaurant
franchises is the company's principal business. Jollibee grew in popularity in the
food business as a result of their innovative marketing methods, which earned
them numerous medals and accolades. A vision statement is a statement of an
organization's goals and aspirations for the future; it indicates where the company
wants to be and it includes to their vision that they will excel in providing great
tasting food that meets local preferences better than anyone and provide superior
dining experience, FSC (Food, Service, Cleanliness) excellence in every
encounter. They achieve their goal of offering great-tasting food because the
cuisine they serve is tailored to each individual's preference taste. What they have
achieved are all part of their vision for the corporate world. Apart from achieving
all of their vision, they are still pursuing to provide what they have envisioned for
the corporate world.

 What are the strength and weaknesses of the business?

Strengths of Jollibee
  Customers Loyalty - Jollibee has built a strong database of loyal customers over
the years. It’s because of the consistency of the services that the company has
maintained over time.
 24 Hours Service - Jollibee is one of the few companies that provide fast food
services 24 hours a day. Whether it’s early morning or late at night, the brand
would remain open to serve its customers. However, the company hires
employees for multiple shifts and keeps rotating them.
 Distribution Network - Jollibee is the largest fast-food chain brand in the
Philippines. According to an estimate, the company has 750 stores across the
country and a total of 1130 stores across the world. However, the company makes
sure that all the stores have enough supply of food to serve customers.
 Quality Food - Jollibee offers quality and tasty food to its customers worldwide.
Its unique taste is no less than other global brands. The brand has a secret recipe
for the preparation of its food items. It allows the company to provide the same
quality food everywhere.

 Recognized Brand - The main focus of Jollibee is to satisfy the taste of

customers, and the brand doesn’t divert its focus from its customers. That’s why
customers recognize the brand when they’re shopping.

 Variety - Jollibee offers a variety of food items to its customers and they range
from Spaghetti, hamburger, mouth-watering yum burger, and coffee to tasty
chicken joy. The company follows the successfully tested recipe for the
preparation of all of its food items.

 Brand Value - According to an estimate by Forbes, Jollibee ranks at the 239th

position of the World’s Best Employer of 2020. However, the company
comprised under the category of Asia’s Fab 50 Companies in 2016.

Weaknesses of Jollibee
  No Technology - Jollibee is still using the old methods of food cooking; they’re
good but time-consuming and efficient. The company hasn’t adopted the latest
methods of tech automated cooking. It would make the company’s operation
efficient.
 Limited Marketing - Jollibee follows a very limited marketing channel for the
promotion of its food items. It’s no doubt Jollibee is a multinational brand. But
not many people have heard of the brand name because of the limited or no
marketing.
 Pricy Food - Jollibee charges premium prices for its food items. Many people are
very cautious about price especially when they’re buying food. That’s why they
avoid buying Jollibee’s product because of overpricing.
 Say No to Fast Food - A vast majority of people don’t prefer fast food because it
causes obesity and other health issues. The lack of preference of many people
impacts the sale of the company.

 What are the opportunities and threats that exist for this business?

Opportunities of JFC

 New Products and Services - The brand should branch out into a variety of new flavors.
It should also feature a greater variety of vegetarian options. It should also branch out
into other areas, such as internet services, payment systems, and so on.
 Online Market - To increase sales, the company should enter the online market. It
should develop its business online, as this is an excellent way to attract new clients. It
should connect with a variety of social marketing platforms to promote its brand and
entice more customers to buy it.
 International Expansion - Jollibee should broaden its international presence. There are
many food aficionados all around the world that enjoy trying new foods from different
regions of the globe. It is well-thought to try authentic food from a given place. As a
result, it should also aim to increase its global market.
  Offers new products and continue to innovate - Jollibee needs to keep experimenting
with flavors in order to provide their devoted customers even more reasons to place an
order.

Threats of JFC

 Competitors - Jollibee faces stiff competition from other international fast-food

chains. This is a significant threat to the company. It should strive to surpass its
competition in order to increase revenue.
 Increase in Healthy Living among People - People's minds have been prompted by
the concept of diet-related food and healthy living to switch to a cuisine that is
prepared with less fat. This is a significant danger to the brand because it would result
in a decrease in customers.
 Regulations - Many goods, substances, or methods of food processing may become
outlawed as the world transitions to a healthier way of life. This necessitates quick
action in order to keep up with the continuously changing legislation. That kind of
activity and preparation always takes a lot of time, energy, and resources that could
have been used for something else.

Jollibee Food Corporation SWOT Analysis Conclusion:

 Jollibee is a powerful brand that will be able to sustain its dominance in the Philippines if
it continues to adapt and evolve. Despite the rivalry, Jollibee's selling concept is distinct
enough to set them separate from the rest of the country.
 They will undoubtedly succeed if they can capitalize on their primary strengths while
addressing their deficiencies. The corporation will undergo a substantial cost-cutting
exercise, according to CEO Ernesto Tanmantiong. Specifically, according to CFO
Ysmael Baysa, 255 stores would close and 95 will transition from corporate to franchise
ownership.

 What is the strategic position of this business?

  JFC's efforts are consolidated under the company's two-pronged expansion
strategy: brand acquisition and brand expansion. Jollibee itself is a tried and true
brand with a menu that has demonstrably accrued loyal fanbases in each of its
operational territories. Jollibee ensures high traffic needs an emphasis on store
location and positioning Jollibee in the minds of the consumer as a place that they
would enjoy eating fast food. Also, Jollibee ensures high customer traffic by
positioning branches in crowded places. Its stores offer great service to high volumes
of people by functioning like a well-oiled machine. As an example, the Jollibee outlet
in Hong Kong is located at the Central district, an area where a large number of
Filipinos gather.
 Based on the given strength and weaknesses of the Jollibee, we can see there that the
organization have more strength than its weaknesses. Jollibee strengths comes from
their strategy when it comes on distributing and offering products, but their
weaknesses stated are just a matter of its consumers choices. But above all, Jollibee is
one of the fast moving and top leading fast-food chain in the world.
 The attractiveness of Jollibee markets makes everyone obsessed with the foods that
they are offering. A lot of customers are repeatedly and continuously buying their
products.
 The Jollibee is financially strong because they are profitable. They can manage all of
their expenses. And a lot of people are patronizing Jollibee since then and up until
now.
 Jollibee should be optimistic in the future because they are already successful.
Jollibee's business success relies on its smart branding strategy, complemented by
strong customer orientation, superior menu line-up, innovative new products, creative
marketing programs and efficient manufacturing and logistics facilities. They should
not become contented on their strategy and it should be continuously improving so
that if there is fortuitous event happen, they can still manage it.

Summative Corporate Analysis Algorithm

 What is the relationship between the corporate center and the individual businesses?
What are the process by which strategy develops in business units and the organization
as a whole?
 For most companies, the role of the corporate center is to build value, to provide
compliance and governance for the business, and to deliver centralized transaction
processing. The corporate center can become a cost-intensive part of the business
and, consequently, is often at the sharp end of any planned cost-cutting
programmed. Experience has shown that unless considerable care is taken,
unfocused cost reduction exercises applied wholesale to the corporate center can
be very damaging. Now, the relationship between the corporate center and the
individual businesses are; Strategic Planning, which encourage long-term
perspective and lead to sharing and developing capabilities than can confer a
strategic advantage to several products group, since Jollibee has a lot of business
units it will help them to build communication to gain new insights when it come
on formulating strategies. Next is the Financial control relationship, which is the
center’s main concern to set financial targets but delegates strategy development
to the business units, this helps Jollibee to focus on short-term performance and
quickly identify short-term weaknesses in strategy. And lastly, the Strategic
control relationships which helps the Jollibee to control their financial styles.
Having a communication with each business units of the organization can
formulate a great strategy to become successful and can stand as one.

 What are the relationships between the individual businesses? Are they supporting,
neutral or disadvantageous?
 The relationship between the individual businesses is where the company
assessing if there is a strategic fit between the businesses in the organization
portfolio. This is where the organization is matching its resources and capabilities
with the opportunities in the external environment. And this strategy is vital that
the Jollibee has the actual resources and capabilities to execute and support the
strategy.
  What are the factors outside the organization that influence the organization’s
activities?
 The factors outside the organization that influence the organization’s activities are
the customers, competition, the economy, technology, political and social
conditions, and the company resources. The same internal factors that lead to an
organization’s success inevitably characterize that organization’s relationship to
the external environment in these broad areas. Once there is a movements or
changes on the said factors the Jollibee will influence its organization’s activities,
and if it affects badly, that is the time the business units of the Jollibee will do
actions and formulate strategy to surpass it.

 What are the strengths and weaknesses of the organization?

Strengths

 Jollibee's Overseas business sales has a growth of 1.3%

 Since Covid-19 vaccination is faster overseas, its international business sales,
were up by 1.3%. Store sales growth in its China market accelerated by 47.8%,
while North America reached 14.3%. Jollibee cited the faster and wider coverage
of COVID-19 vaccination as well as the more significant assistance provided by
the governments in these regions.

 JFC’s Organizational Design.

 The decentralization of JFC’s operations in 2000 enables the organization to
manage their business on a manageable scale. Four autonomous regional business
units dealing with human resources, administration, finance and network
 development enabled the company to focus their operations on a corporate level
and allowing the RBUs to achieve greater efficiency.

 Risk Management
 The acquisition of several new brands such as Greenwich, Chowking and
Delifrance allow the diversification of its products into different market niches. It
proved to be a hedge against downturns and competition. Most of the acquisitions
are the leader in their respective market segment.

 JFC’s Human Resource Management

 To attract the right talent and retaining of valuable staffs, the compensation and
benefits of Jollibee Food Corporation is the highest in the Philippine fast-food
industry. Employees are to undergo comprehensive training programs based on
underlying standards. Managers also received ongoing training in the latest
operations systems and people-management skills. Opportunities are available for
crew members to advance into a management role in the organization.

 Capital Market Stakeholders of JFC

 Jollibee’s capital market stakeholders include its shareholders whom have a direct
interest in the company. Since going public on the Philippine Stock Exchange,
Jollibee had been able to tap on this key resource to expand its horizon within and
beyond the local Philippine’s market.

 Product Market Stakeholders of JFC

 Jollibee’s product market stakeholders include its customers locally and globally,
as well as suppliers of its food sources. Jollibee has been able to capture the
market share of the fast-food going customers due to its understanding of locals’
preferences and it quality and competitive pricing of its food. An approximate 1
million customers ate at Jollibee’s stores daily, making them an important
stakeholder in this category.
  Organizational Stakeholders of JFC
 Jollibee’s organizational stakeholders include its large number of employees
under its corporation (26,500 employees as of 2004), its managers and its
franchisees. In maintaining its high standards, Jollibee’s compensation, benefits
and comprehensive training programs ensure they have the best employees that
are available.

Weaknesses

 Jollibee's Philippine business sales decline by 21.3%

 Because of the pandemic, Jollibee's Philippine business sales declined by 21.3%,
attributed to the lockdown in the Greater Manila Area. Temporarily closed stores
increased by 4 percentage points to 6% by the end of March.
 Product Development
 New offerings for Jollibee take too long and they do not change products often.
 High Employee Turnover (Operation)
 The Jollibee foods corporation one main concerns is its high turnover of the
employees because the company refuses the regularization of its workers. Another
thing is by this current situation, the company laid-off a thousand of workers to
compromise their sales.
 High training cost because of high employee turnover.
 Correspondence to the high turnover rate of the employee is the high training cost
for the company. If the employees continue to checkout of the company, the
company will tend to hire and again train other employees. With that, it doubled
the expense of the training allotted for the company.

 What are the opportunities and threats that exist for this organization?

Opportunities
Internal Opportunities:
 Employee training
 Employees are given extensive training by JFC. Job rotation is practiced by the
management of its service crews and other employees. In addition, the manager
is receiving intensive training in all aspects of the store's operations for just
cases. In some cases, if a crew member is required in a specific region, the needs
can be met quickly because the staff are properly trained.

External Opportunities:
 Continiues subsidiaries of other brand that offer enticing food and beverages
choices
 Jollibee's expansion of the company and its subsidiaries is one of its opportunities.
Jollibee, Greenwich, Chowking, Red Ribbon, Mang Inasal, Burger King
Philippines, and Yonghe King, Hong Zhuang Yuan, and San Pin Wang are among
the JFC's nine brands. As a result, the company has expanded its menu of food
and beverage options for customers.

 Increasing the malls of rural areas

 The corporation sees the rural area's industrialisation as an opportunity to extend
their storefronts. Because Jollibee and its other sibling companies can be visible at
a mall, there will be a possibility to gain new customers in that region.

 Threats
Internal Threats:
 Rising operation costs
 The constant rise in operation costs is another challenge to the JFC, as well as an
effect of the epidemic. raw resources are rising in quantity from dry to wet. In that
instance, it may have a negative impact on the company, as seen by their
financial.

External Threats:
 Increased customers health consciousness
 Another threat that the JFC is facing is the growing number of health-conscious
customers not only in the Philippines but around the world. As a result of the
current situation, most people are changing their lifestyles, particularly when it
comes to food. They are often preparing less-preservative and more vegetable
options for their daily viands.

 Local and International competitors that offer the same product

 There is a competition for every type of business. As a result, one of the JFC's
threats is the ever-increasing number of local and global competitors who offer
the same product at a lower cost and a healthier option than the company. It's
fortunate that the company's trademark has caught the customer's attention.

 What is the overall strategic position of the organization?

 The overall strategic position of the organization is balanced and financially
strong. The Jollibee is profitable and at the same time there are a lot of people that
has interest with Jollibee. Hence, Jollibee is a self-funding business owing to the
fact that a lot of people are investing at Jollibee. The individual business of the
Jollibee is more effective in the corporate portfolio because they managed to
survive the factors outside the business that was affecting their performance.
Overall, Jollibee is successful because of its smart branding strategy,
complemented by strong customer orientation, superior menu line-up, innovative
new products, creative marketing programs and efficient manufacturing and
logistics facilities
Additional Information:

Preliminary Corporate Analysis

 Strategic Business Unit (SBU)

 Manufacturing Division
 Logistics Division
 Purchasing Division
 Technical Evaluators and Users
 Quality Management
 Order Management Group
 Corporate Engineering Department
 Research and Development Division

 Products/markets
 The JFC doesn’t stand as Jollibee alone, but it has subsidiaries (hereinafter
referred to as the “Group”) such as Greenwich, Red Ribbon, Chowking, Mang
Inasal, and Burger King. The group is engaged in the manufacturing of food
products, logistics services, and property leasing in support of its operation. In my
perception, we see the food provider mentioned above as they are all competing
with one another, but the fact is, they are group and have one goal only.
 Organizational Structure
 Business Performance

 JFC’s Competent Management

The performance of JFC has been highly attributed to their Management. While
there may have been changes, they seem to be insignificant, thus continuity of
strategies (proven to be successful) is expected from a stable company such as
JFC.
 Competition in the Quick Service Restaurant Industry
JFC is in a market that has so many players. In the past, JFC’s strategy was to
buy-out its competitors. This strategy may still work now with new entrants to the
quick service restaurant industry.
 JFC’s Stock Performance from 2006-2015
A critical indicator for stock performance is returns. On the average, it is still
growing, but at a slower pace an indicator that JFC as a company has matured and
stabilized.
 JFC For the current year
 Due to the pandemic caused by the coronavirus Jollibee Food Corporation
suddenly posted a net loss of P11.5 billion in the year of 2020 most of the
people not going outside they prepare their own food so that the JFC
decreased revenue. Some of the store are closed temporarily due of
pandemic but they plan to continue reopening some of their branches. In
the 4th quarter they showed the recovery of the business.
 Jollibee reported a net income of P1.1 billion in the first half, reversing
losses amounting to P12 billion recorded in the same period last year. In
the April-June period, net income reached P1 billion, a turnaround from
P10.3 billion net loss a year ago and marking the second straight quarter of
net profits after returning to the black to start the year.
 "The impact of the pandemic on JFC’s business around the world in the
second quarter was mixed,” the company said.
  Stakeholders
 Shareholders/owner – This has the power to influence corporate level owing to
the fact that they own at least one share of a company stock. They have the
interest in the company because they owned it or they have share on it.
Shareholders are subject to capital gains or losses and/or payments as residual
claimants on firm’s profit. Shareholders also has the right to vote and intervene
for most of the decision for development of JFC in certain meeting. In the other
words, shareholders are now being asked to take a more involved interest in a
company’s affairs and influence significantly on JFC’s development.
 Customers – They have significant power over prices. Customers has the biggest
interest in the JFC because they are the one who are buying and trying the
products that the JFC offers. But on the other hand, the main customers of fast
food are office employees and families who loves to eat at JFC. They ultimately
determine what is produced, what quality is needed, what is charged and what
development is needed. (i.e. the quality of chicken that supplied from Jollibee.
 Suppliers – JFC’s production depends on its suppliers. Raw ingredients for all of
their products are shipped daily to their warehouse for inspection, safe-keeping
and production. The suppliers decide the quality of raw material, it will influence
to quality and cost of products.
 Bankers and Financier – These are also interested in JFC’s overall condition, but
from the point of view of the security of any loan they make when company
borrows the loan from the bank or a certain financier.

Individual Business Analysis

 Determine Consumer
 Geographic segmentation – The operations of JFC are spread across the western
developed nations like the United Kingdom and United States of America. But it
 also has operations in emerging economies like China, India, and Brazil. The
main focus of the company determining consumer under geographic segmentation
remains in urban parts.
 Behavioral Segmentation – The personality features of the consumers for the
brand are hardworking, ambitious, confident, and determined. The usage
frequency of the customers are frequent and regular users of the items. The
consumers seek functional benefits but they focus more on the emotional benefits.
The consumers have higher degree of loyalty as well as emotional attachment to
the Jollibee brand.
 Demographic Segmentation – The JFC carries a careful analysis of demographics
and consider the culture, religion, and social values, of the consumers. In which
JFC provided Halal products, and launched healthy meal options. The JFC
targeted all ages, all gender, income with lower, middle class, and above.
 Psychographic – In this part, the JFC determining their consumers by considering
its preference when it comes to the brand they like to go and eat, most of the
consumer preference are in Jollibee brand.

 Customers’ acceptability – Customers buying JFC products because most of the said
company products are meeting the wants and needs of the customers from all ages and all
status. Aside from its affordable prices of the product, it makes their customer satisfied.
Also, JFC achieved their vision, mission, and its goal when it comes on providing the
best food products that’s why people are willing to pay for the products that the JFC
offers.