CBMEC/Mgmt 202: Strategic Management Final Examination

2nd Semester: SY 2022 – 2023 Case Study Analysis

Problem
Jollibee food Corporation (JFC) is a food empire with interest in American fast food
chain (burgers, fries, fried chicken, etc.) including pizza chain (Greenwich), grilled chicken
(Mary’s Chicken), and Chinese fast food (Chow King). Jollibee is slowly acquiring
these companies. After two decades, Jollibee Food Corporation’s market share was 57% while
McDonalds (its main competitor) garnered only 36%, two decades later. By the end of1998,
Jollibee had 302 company owned and franchise stores in the Philippines and 27 franchise stores
overseas while McDonalds had almost 200 stores. Around 43% of Jollibee’s stores were
franchised-owned. Jollibee used franchising to rapidly expand its business and achieve
market penetration.

Jollibee is facing a dilemma in their franchising on to whom they will reward the
franchise between two applicants. This maybe a sign of Jollibee that the company is booming
like mushrooms, closing the gap between one Jollibee fast food from the other in terms of
location and distance. Despite of this, its growth is incomparable to McDonald’s global
power in the international market.

I. Introduction or Background of the Study

II. SWOT Analysis
STRENGTHS WEAKNESSES
 Jollibee dominates the hamburger  The existence of other competitors.
market despite the foreign competitors.  Lacked more effective marketing skills as

 Jollibee offers famous burger influence growth revenues decreased.

 Dilemma in choosing franchisee eyeing for
from United States to keep up with
the same location.
changing taste and lifestyle of the
 The criteria in choosing a franchisee is
customer.
vague.
 Jollibee captured the palate of every
 Lack of automation used in its kitchen
Filipino with its uniquely flavored
procedures, which may affect its
burgers, chicken and sweet spaghetti.
efficiency and ability to serve customers
 Jollibee use effective strategies to
in a timely manner depending on the
rapidly expand its business and
location.
market penetration.
 Jollibee has a strong brand name across
the industry.
OPPORTUNITIES THREATS
 Jollibee became the first food service to  Jollibee faces the threat of increased
be listed in the Philippine Stock competition, which can impact its sales,
Exchange. pricing, and profitability.
 Jollibee is open for expansion through  They has a great challenge with keeping
franchising to generate diversified up the demand for the production of
source of revenues. product to distribute in all over 302
 They Business Operational Training stores franchise-owned.
Program for new applicant franchisee  Jollibee faces the threat of rising costs
which provide seminars and hand-on of ingredients, labor, and other
exposure to all level of store operation. operational expenses.
 Jollibee can leverage technology and  Economic downturns, currency
invest in digital platforms to enhance its fluctuations, and geopolitical instability
online ordering, delivery, and customer can pose threats to Jollibee's operations.
 engagement processes.
 Jollibee can explore opportunities to
diversify its menu by introducing new
products or adapting its offerings to
cater to changing consumer preferences.
 Jollibee operates in multiple countries,
each with its own set of regulations and
legal requirements. Compliance with
local laws, labor regulations, and food
safety standards can present challenges
and pose a threat to the company's
operations if not effectively managed.

III. Alternative Course of Action or Solution

Members:
ALMENDRALEJO, MIAFE B.
BACANG, JAMES A.
BACOLOD, QUEENIE ROSE C.
BADUA, AINA LOU Q.
CATUBIG, HERVEY JAMES C.
LAGUINDAB, JONAIRA A.
SABES, HONEY LIZA MARIE B.