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Name_______________________________________ Section BA301 Date 11/14/2021

ACTIVITY
Jollibee Foods Corporation (JFC)
Jollibee Foods Corporation (JFC), widely known as Jollibee, is a fast-food restaurant chain based in the
Philippines. It was founded by Tony Tan Caktiong, a Filipino Chinese in 1975. It is an American-style fast-
food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, chicken, and some local
Filipino dishes. Currently, it is the biggest fast-food chain in the country; it also has major locations in the
United States, Saudi Arabia, Hong Kong, Vietnam, Indonesia, Dubai, and Brunei. As of December 2007,
Jollibee has become one of the biggest fast-food chains in the world with more than 600 stores
worldwide. An article by Doris Dumlao-Abadilla, published on the website of Philippine Daily Inquirer,
confirmed that JFC had accumulated total sales of P171.77 billion in 2018, which reflects a 15.2%
increase in sales compared to the figures from the previous year.

The success of the company is strongly attributed to their process efficiency resulting in low-priced and
low margin approach in catering to the taste of the mass market. In addition, the company ensures that
they maintain a close difference in product prices relevant to their competitors. The company also
practices planning and investor relations, including a rewarding compensation system for its employees
and unbiased recruitment and training procedures. Aside from that, the company is engaged in product
and process design through extensive market research. JFC also maintains high-quality machines and
equipment required in its daily operations. The company maintains data collection services and material
storage to ensure a smooth flow of its operations. The customer service of the company works hand-in-
hand with the branch operations to efficiently execute order processing and warehousing. In addition,
the customer service representatives of JFC prepare a daily report of customer transactions for the
company to keep track of its customer behavior. This initiative is in line with the company goal to widen
the scope of its promotion and advertising through the help of the company designated sales force. In
order to ensure proper customer care, the company also assigns subject matter experts to handle
transactions related to customer support and complaint resolution.

Answer the following items: (3 items x 10 points)

1. Identify the business model/s present in the given case study.
The business model present in the given case study is efficiency model. Jollibee Foods Corporation is the
biggest fast food chain in the country. They used the low priced and low margin approach to appeal the
mass market. JFC are serving different low priced foods that everybody can afford. You can enjoy a
delicious meal for less than 100 pesos.

2. Apply value chain analysis to assess the activities of JFC using the facts on the given case study.

Primary Activities
Inbound Operations Outbound Marketing and Service
Logistics logistics Sales
 Data  Machines  Order  Promotion  Customer
collection and processing  Advertising support
 Material equipment  Warehousin  Sales force  Complaint
storage  Branch g resolution
operation  Reporting
Support Activities
Firm  Planning
infrastructure  Investor relation
Human Resource  Compensation system
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Management  Recruitment
 Training

Technology  Product and process design

Development  Market research
Procurement  Machines and equipment
3. Identify the type of strategy being employed by JFC in order to attain competitive advantage,
based on the facts of the given case.
The strategy being employed by JFC is cost leadership. The company is reducing its costs to sell its products
at lower prices. JFC maintains an immediate difference to product prices relevant to their competitors.
Their sales increased during 2018 because of this strategy. People want to go out and eat in a restaurant
once in a while, and the restaurants they are picking are the affordable ones, and the best choice is the JFC.

Rubric for grading:

CRITERIA PERFORMANCE INDICATORS POINTS
Content Provided pieces of evidence, supporting
8
details, and factual scenarios
Grammar Used correct grammar, punctuation,
1
spelling, and capitalization
Organization Expressed the points in clear and logical
1
of ideas arrangement of ideas in the paragraph
TOTAL 10

References:
Blue Ocean University. (n.d.). Jollibee Foods Corporation Porter value chain analysis. Retrieved on April
29, 2019, from http://blueoceanuniversity.com/frontpage/portervaluechain/10981-caktiong-
values.

Dumlao-Abadilla, D. (2018). Jollibee posts 15% growth in net income. Inquirer.net. Retrieved on May 22,
2019, from https://business.inquirer.net/246002/jollibee-posts-15-growth-net-income.

Marked by Teachers. (n.d.). Case study of the Jollibee Foods Corporation. Retrieved on April 29, 2019,
from http://www.markedbyteachers.com/as-and-a-level/business-studies/case-study-of-the-
jollibee- foods-corporation.html

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