QUEZON CITY UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY

BACHELOR OF SCIENCE IN ENTREPRENEURSHIP

SUBMITTED BY

Jerome Barcenilla

Francis Howard Petallana

Erwin Miguel Rocialda

Lyka Tamondong

Angelika Del Carmen

 Table of Contents

CHAPTER I – INTRODUCTION 3
BACKGROUND OF THE STUDY 3
COMPANY HISTORY 4

CHAPTER II – EXTERNAL ENVIRONMENT OF THE STUDY 6

SOCIETAL ENVIRONMENT 6
POLITICO‐LEGAL FORCES 6
ECONOMIC FORCES 7
SOCIO‐CULTURAL FORCES 8
TECHNOLOGICAL FORCES 9
TASK ENVIRONMENT 10
THREAT OF NEW ENTRANT 10
RIVALRY AMONG EXISTING COMPANIES 12
BARGAINING POWER OF BUYERS 13
BARGAINING POWER OF SUPPLIERS 13
THREAT OF SUBSTITUTE PRODUCTS 13

CHAPTER III – INTERNAL ENVIRONMENT OF THE STUDY 14

ORGANIZATIONAL STRUCTURE 14
ORGANIZATIONAL CHART 14
ORGANIZATIONAL CULTURE 16
MISSION 16
VISSION 16
ORGANIZATIONAL RESOURCES 19

CHAPTER IV – SWOT ANALYSIS 21

STHRENGTHS 21
WEAKNESSES 23
OPPORTUNITIES 24
THREATHS 25
CHAPTER V – STRATEGIC OPTIONS, RECOMMENDATION AND CONLUSION 26
RECOMMENDATIONS 26
CONCLUSIONS 26
 CHAPTER I

INTRODUCTION

Background of the Study

Different establishments had been made in Naga City through times. Not all are
blessed and lucky to last and operate in longer times. It maybe because of the location,
the products and quality of services it offer are not suitable to its target market, or
simply the strategies that the business implemented did not work out just well.

This research will revolve in studying the Jollibee Food Corporation a business
that has been existed for more than 3 years in Naga City, and a very popular fast food
chain throughout the Philippines. With the success it realize, JFC still give its full
operation to give back to its customers by improving its product and services it offers to
the public. Satisfying and meeting customers’ demands and needs are also key factors of
achieving its goals.

As the subject of this study, there are five (5) reasons why the group has chosen
the JFC. First, the business is popular and well established. Jollibee’s stores in Naga City
are well known and many people support its business, therefore it was easy for the
group to study and observe the business, being familiar with the products and services it
offers. Second, it shows Filipino Spirit towards its employee and customers. Third, like
other businesses JFC start from scratch as an Ice Cream Parlor, however its way to
success is not that easy and studying it will make our research more interesting and
informational. Fourth, Information and data are available. Gathering information about
the business background history, Internal and External Environment is easy with the
help of its own sites and interviews of the group conducted with the Store Head. Lastly,
accurate and reliable information is assured. Because of the availability of data the study
can guarantee that it is based on facts.
 Since, Jollibee Food Corporation is well known to its Industry. Analyzing its
business will arise to new problems and recommendations to give solutions.

This study deals with, firstly the External Environment of the company, followed
by its supporting information. Second, the Internal Environment of its structure, culture
and resources within the company. Third, SWOT Analysis and lastly the Strategic options
and conclusions.
Company Overview
Vision
To be among the top 5 restaurant companies in the world.
Mission
To serve great-tasting food, bringing the joy of eating to everyone.
Goals
● Expanding and to recognize the product and the business
● Giving the best quality/quantity and the most affordable fast-food chain to people
● Create an organization and to have business with other company forcorporations’
expansion
Objectives
● Ams to be the largest homeground quick service restaurant chain in Asia by 2020
● Will be supported by continuous store expansions and acquisitions of several
more brands abroad.
Brief History

Tony Tan Cacktiong and his family opened a Magnolia Ice Cream parlor from the

Bankerohan, Davao City to Cubao in 1975 with Jolibee as the original name. In 1978,

Cacktiong and his brothers and sisters engaged the services of a management

consultant, Manuel C. Lumba. Lumba shifted the business focus from ice cream to

hamburgers, after his studies showed that a much larger market was waiting to be

exploited. Lumba, became Cacktiong first business and management mentor. Lumba
next re‐formed the name Jolibe to Jolly Bee and made the two words form a single

name, Jollibee, changing the “y” to an “i”. Now, Jollibee is an 30 year old company.

The Jollibee mascot was inspired by local and foreign children’s books. Lumba

next created the product names “Yumburger” and “Chicken Joy”. He had the company

incorporated and leased a house on Main St. In Cubao, Quezon City as the first head

quarters. Lumba formulated a long‐term marketing strategy: listing up a number of

consumer promotions and traffic building schemes. Cacktiong stressed that developing
internal strengths was critical. The stores were re‐designed, the service transformed into

a full self‐service, fast‐food operation with drive‐throughs. Not long after, Cacktiong and

Lumba went on an observation tour in the United States, attended food service and

equipment conventions. Now, Cacktiong placed Lumba in charge of franchise

development.

As of December 2007, Jollibee has become one of the biggest fast ‐food chains in

the world with 1, 655 stores world wide and total sales of more than one billion US

Dollars. Currently, according to the report from the internet the company owns 619

stores nationwide, of these 321 are franchised and 298 are company owned. There are

also 33 stores operating outside the country

Jollibee is the largest fast food chain in the Philippines, operating a network of

over 900 stores worldwide. A dominant market leader in the Philippines, Jollibee enjoys

the lion’s share of the local market that is more than all the other multinational brands

combined. The company has also embarked on an aggressive international expansion

plan, and currently has more than 100 stores outside the Philippines a d present in the

USA, Vietnam, Hong Kong, Saudi Arabia, Kuwait, Brunei, and Singapore firmly

establishing itself as a growing international QSR player.

Humble Beginnings

Jollibee began as a two-branch ice cream parlor in 1975 offering hot meals and

sandwiches became incorporated in 1978 with seven outlets to explore the possibilities
 of a hamburger concept. Thus was born the company that revolutionized fast food in

the Philippines. In 1993, Jollibee became the first food service company to be li ted in

the Philippine Stock Exchange; thus broadening its capitalization and laying the

groundwork for sustained expansion locally and beyond the Philippines.

A company that values family

Jollibee was founded by Tony Tan and his family with its humble beginnings as an

Ice Cream Parlor which later grew into an emerging global brand. At the heart of its

success is a family- oriented approach to personnel management, making Jollibee one of

the most admired employers in the region with an Employer of the Year Award from

the Personnel Management Association of the Philippines, Best Employer in the

Philippines Award from Hewitt Associated and a Top 20 Employer in Asia citation from

the Asian Wall Street Journal.

Aside from promoting a family oriented work environment, the brand’s values

also reflect on their advertising and marketing. Jollibee knows their target audience very

well: 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.

Expanding market coverage

The company acquired Greenwich Pizza in 1994 to penetrate the pizza- pasta

segment. From a 50-branch operation, Greenwich has established a strong presence in

the food service industry. A year later the company acquired the franchise of Delifrance,
an international food company. This expanded its penetration in the food service

industry into the French café-bakery. In 2000, the acquisition of Chowking allowed it to

have leadership in a major fast food market - the Chinese quick service restaurant

segment.

On March 2004, Jollibee International (BVI) Ltd., a wholly owned subsidiary of

Jollibee Foods Corporation completed the acquisition of 85% of the issued share capital

of Belmont Enterprises Ventures Ltd. (Belmont), the holding company of the Yonghe

Group of Companies. The acquisition of Yonghe King has provided the Company an

opportunity to become a major regional player in the Quick Service Restaurant business

in Asia.

On October 27, 2005, the Company completed the acquisition of Red Ribbon

Holdings, Inc. (“Red Ribbon”), owner of the Red Ribbon Bakeshop chains in the

Philippines and in the United States. Like Jollibee and its other brands, Red Ribbon is a

strong brand with a wholesome and high quality image driven by good tasting food and

good-looking stores with excellent service built over years of development.

On July 24, 2007, JFC started testing of a new restaurant concept with the trade

name “Manong Pepe’s Karinderia”. This new restaurant concept serves Filipino food at

very low price points, aimed mainly at people in the work force in urban centers. On

October 1, 2008, JFC completed the purchase of 100% of Hong Zhuang Yuan, a chain of

restaurants located mostly in Beijing, People’s Republic of China.

On April 30, 2010, JFC entered into an agreement that provided joint ownership
 of San Ping Wang, a chain of restaurants of 34 stores in Nanning, China.

On May 4, 2010, JFC entered into another joint venture agreement that made it

a Master Franchisee in the Philippines of Caffe Ti-Amo, a gelato and coffee business.

To support the continued growth of the Company’s retail chain, the company has

set up commissaries (manufacturing and distribution centers) to manage the total

supply chain process of each strategic business unit: from the planning of raw materials

and ingredients, distribution and logistics.

The JFC Group has eleven Commissaries: Jollibee, 2; Greenwich, 1; Chowking, 2;

Delifrance, 1; and, Red Ribbon, 5. In January 2004, Jollibee opened its largest

commissary in Canlubang, Laguna. The new commissary, which sits on a 10-hectare

property in the Carmelray Industrial Estate features custom made state-of-the-art

production equipment that would service as many as 800 Jollibee and Greenwich

outlets. The new commissary employs over 300 people.

International Expansion

Jollibee’s international operations continue to grow driven by the opening of 18

new stores in 2013 and steady growth in all markets. Jollibee is now present in 8

countries outside the Philippines, including Vietnam, Brunei, US, Hong Kong, Saudi

Arabia, Qatar, Kuwait and the newest market- Singapore.

Since Jollibee Singapore opened in March last year, it has delivered the highest

sales performance among all markets. It also made the list of Singapore’s longest queue

restaurants, proof that our Everyday Delicious meals appeal highly to the palates of not
 just Filipinos but Singaporeans as well. With these gains, Jollibee is poised to

aggressively expand and conquer new markets like Indonesia and Canada in line with its

vision of becoming a truly global brand. With its Everyday Delicious food offerings and

high standards of service.

A Well-Loved Brand

Customer satisfaction has always been key to Jollibee’s success. Never losing

sight of its goals, Jollibee has grown to be one of the most recognized and highly

preferred brands in the Philippines. Now the market leader among fast food chains in

the Philippines, claiming a market share that totals to more than half of the entire

industry.

Great tasting products and quality systems

Jollibee’s growth is due to its delicious menu line-up - like its superior-tasting

Chickenjoy, mouth- watering Yumburger and Champ hamburger, and deliciously

satisfying Jollibee Spaghetti -ably complemented with creative marketing programs, and

efficient manufacturing and logistics facilities

 It 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 in-store environment and friendly and efficient service

And it is this tried and tested formula of delivering great-tasting food, adherence

to world class operating standards and the universal appeal of the family values the

brand represents that are driving the expansion of Jollibee both locally and in the

overseas market.

A Reputable Fast Food Chain Company

The Jollibee Group is a reputed leader and innovator in the fast food industry

comprising three market segments; namely the Chicken & Hamburger chain (Jollibee);

the Pizza-Pasta fast food segment (Greenwich); and the Oriental Food market

(Chowking). Recently, we have welcomed into our family, our latest acquisitions – In the

Philippines: Red Ribbon and Mang Inasal. In China: Yonghe King, Hong Zhang Huan and

Sang Ping Wang. In Vietnam: Pho 24 and Highlands Coffee.

Recognitions Conferred by Outside Institutions

Ranked 6th in the 2008 Finance Asia Poll for Best Managed Company and Best

Corporate Governance. Selected in 2006 as the Most Admired Company in the

Philippine through a survey conducted by the Asian Wall Street Journal. This was the 8th

consecutive year that JFC was chosen for that prestigious recognition.
 Selected in 2005 as “The Best Consumer Goods Company in Asia” by Euromoney,

a financial publication in London UK based on a survey of investment analysts and

researchers in the region – on strength of its management, growth potential and quality

of earnings.

Zenith Foods Corporation, the commissary plant of Jollibee, was adjudged the

National winner of Meat Processing Plant AAA category in the search for Best Meat

Establishment of the National Meat Inspection Service. In 2011, Jollibee voted as

Trusted Brands in the Family Restaurant Category for the second year in a row.In 2012,

Travel + Leisure magazine names Jollibee as one of the world’s best fastfood chains

Gives back to the community

As a corporate citizen, Jollibee is also committed to give back to its host

communities through meaningful and lasting socio-civic projects. With the

establishment of the Jollibee Foundation in December 2004, Jollibee, along with the

other business units under the Jollibee Foods Corporation (JFC) hopes to make giving

back an organized corporate

commitment. It aims to invest in people and help them succeed in the way

Jollibee knows how.

This meant taking the values, the system, the tools, and the years of experience

that has made Jollibee what it is today and sharing it with the people they most ascribe

their successes to: the everyday customer.

 CHAPTER II

EXTERNAL ENVIRONMENT OF THE STUDY

A business’ operation does not exist in a vacuum; there is its external

environment. The external environments are those forces outside and out of the control
of the organization. These forces have the power to influence the business, though
these forces are unmanageable, the organization can still respond and adapt to these
forces to keep the business going.

Societal Environment

Politico‐legal Forces

The politico‐legal forces set up the rules and frameworks within which a
business operates. In the case of Jollibee, doing business in Naga City is carried
on with ease, which is because of the local government’s policy environment,
transactions are promptly attended to. The local government supports
businesses for they contribute to the development of the city by creating
employment for the people. The local government of Naga provides incentives
known as the “1997 Naga City Investment Incentive Code” to businesses that
invest in the city especially the “growth areas” identified by the local
government. In fact, the Jollibee Foods Inc. is recognized as one of the major
investors of the city because its operation has been profitable even up till now.
Jollibee also has to comply with the requirements of the local government like
securing their business permit, sanitary permit, BIR permit that must be posted
to the area of the establishment which is most visible especially by the
customers, frequently they are located at the cashier; clearance by the BFP
(Bureau of Fire Protection) must also be conformed with, to ensure the safety of
everyone.

Economic Forces

The economy is a significant factor in the operation of a business, for if

the country experiences growth then it is beneficial to everyone because there is
a rise in the living standards of people. In 2008, the world experienced a global
financial crisis, this is also the period of the Great Recession in the US, a lot of
businesses closed, some reported huge amount of losses which lead to an
increase in the unemployment rate. The Philippines is not an exemption, during
this period, there has been a dramatic rise in the cost of food raw materials
which affected Jollibee directly resulting to a decline in their profit margins.
Jollibee though was able to cope up with the difficult economic environment for
despite the situation, they adjusted the prices of their products only gradually.

Because the Philippine economy has been experiencing growth these

past three years, it gained the confidence of investors not only those inside the
country but also foreign ones. This resulted to growth in profit of companies in
the Philippines, including Jollibee, but the employment rate was not able to
catch up with the remarkable economic growth, there are still a lot of people
who are not employed, the unemployment rate remains close to 7%, one of the
highest in the Southeast Asian nations. There are also still a lot of Filipinos who
are living below the poverty line, with a slow growth in the employment rate,
Jollibee can’t easily increase their prices, and it is one of the reasons why most
Filipinos dine in fast food restaurants because they are affordable especially for
those in the middle class.
 The further growth of Jollibee can be expected, because according to the
NSO, there has been an increase in the Household Final Consumption
Expenditure of Food and non‐alcoholic beverages from the fourth quarter of
2012 to the fourth quarter of 2013 with a growth rate of 4.9% leading to an
increase in the rate of foods consumed outside the home.

Socio‐cultural Forces

One of the major concerns of any business is its customers, and to

accurately determine the customers culture has almost become mandatory for
businesses. Culture varies in different places and for a company like Jollibee
which has a lot of branches not only in the Philippines but also overseas, it is
really required of them to study their consumers’ preferences especially when it
comes to taste and the kind of food served. Jollibee took this as an opportunity
to understand and satisfy the local taste of the different people that they serve.

It is obvious why Philippines is the only country wherein McDonalds is not

number one when it comes to fast food service because Jollibee was established
first before its rival, it is a Filipino brand, it gained the trust and comfort of its
consumers for they value family relationships, which is a notable value of
Filipinos; they relate their advertisements to Filipino experiences. Jollibee’s food
is especially intended and crafted for the Filipino people.

When it comes to demographics, since the Philippines has a young

population, Jollibee focuses more on their target market which is the children,
they use tie‐in promotion, by selling toys to kids which are characters from
famous movies, to capture the interest of children and also by introducing
different mascots like Jollibee, Hetty, Twirlie and Mr. Yum. As colourful as those
colours may seem, they are more than vibrant enough to catch the eye’s
attention. Also the smile of Jollibee shows hospitality and the attitude of Filipinos
to always be happy even though there are problems.

Since the people here in Naga are fond of eating, as we can observe
there are a lot of food stalls, from carenderias to restaurants scattered in the
City, that’s why it was not hard for Jollibee to penetrate the local market.

One Filipino culture is to be religious, that’s why Jollibee also offer a food
which doesn’t have meat like their “tuna pie” offered most frequently during the
Lenten season.

Through the years the family structure of most Filipinos have changed,
today not only is the father working but also the mother in order to earn more,
to be able to provide fully for their families, there has been an increasing
demand for instant food, that’s why most people tend to just order or eat at fast
food restaurants.

However, people are also growing more and more conscious of their
lifestyle, they seek for healthier food; there are those who exercise daily, and
convert to become vegetarians, a lot of kids not only adults are also obese
nowadays. This will be pose as a challenge to Jollibee as to how will they respond
to the changing demand of the people.

Technological Forces

To be able to operate more efficiently and effectively, companies must

improve their technology to respond promptly to the demands of the
consumers. Because of the increasing demand, Jollibee invested heavily in their
commissaries. The Jollibee commissaries manufactures the different products
 offered by the company to the consumers, there are three of them: in Santolan,
Pasig City; Mandaue City, Cebu; and the central site in Canlubang, Laguna. The
system operates 24/7, and administers Jollibee’s total supply chain process,
manufacturing breads, sausages, and the sauces Jollibee use for their products.

The largest of the commissaries is the central site in Laguna and the most
advanced, almost everything is automated with little human intervention
operated by Zenith Foods Corp. which is one of Jollibee’s subsidiary
accompanied by professional technical teams from engineering, logistics
operations, human resources supporting the maintenance of the facility to
ensure quality and safety of the manufactured foods.

For convenience in payment, Jollibee has also tied up with banks like
Banco de Oro, Bank of the Philippine Islands, which also allows customers to
redeem freebies based on the points their credit cards earned.

Jollibee also has its website where customers can visit to have more
information, the website contains the products they offer, the location of their
branches and their telephone number in case of delivery.

Task Environment

In this section the Porter’s 5 forces of competition will be used, which is a tool to
describe the level of competition in an industry.

Threat of new entrants

As we know that new entrants are those companies that are not
currently competing in an industry but have the capability to do so if they
choose. The degree of threat posed by these new entrants depends on the entry
barriers.

In order to put up a fast food restaurant there are a lot of things to

consider and the most significant would be the capital requirements to put up
the business. A new entrant would need a large amount of capital to enter the
industry like the acquisition of specialized equipments, establish brand
awareness especially to the customers of the existing firms in the industry, that’s
why it would be difficult for a new entrant to enter the industry.

Jollibee which is a large firm definitely enjoys economies of scale because

of their commissaries, they are able to increase their production therefore
reducing their fixed cost which in turn reduces the per unit cost of their
production, this cost advantage discourages new entrants.

Product differentiation, also limits the entry into the industry, through it a
product is made special or unique in the eyes of the customer compared to its
rivals, it also gains and strengthen customer loyalty. Jollibee has high product
differentiation, mainly because it is a fast food restaurant that offers favourite
Filipino foods, like palabok, lumpia shanghai, and la paz batchoy.

When it comes to brand identity, having an established brand is an

advantage of a company, that is also one of the reasons why a lot of
entrepreneurs choose to invest in franchising reputable companies especially in
the restaurant business. The brand identity of Jollibee is high; almost all Filipinos
know the brand, new entrants will encounter material complications in
establishing their own brand identity.
 New entrants must be able to persuade the customers of existing
companies to switch to their product, if switching cost is low then it would be
easy for them to convince the customers. In the case of Jollibee there is medium
switching cost because other companies offer the same products at almost with
the same prices, with also nearly the same number of branches as Jollibee’s but
there is still the preferences of most consumers to eat Jollibee products.

Rivalry among existing companies

There are a lot of companies competing in the fast food restaurant

business and through the years, Jollibee has been taking the lead. In the industry
there is intensive competition, accompanied by high demand from consumers,
since it is a food business there will always be a demand. Jollibee has always
been identified with its rival McDonalds, these two companies offer almost same
products for breakfast, lunch, snack, and dinner. They are so “in love” with each
other, they stay as close as they can get, with only a walking distance from each
other.

If some competitors decide to leave the industry then the rivalry among
existing competitors decline. But companies cannot easily leave an industry,
there is this so called exit barriers, which impedes their decision to leave. One
exit barrier would be the specialized equipments that Jollibee use in their
operation, these equipments has already depreciated, it would be hard to
dispose of them and they will be of little value to other firms. There is high fixed
cost of exit, Jollibee is a company with a lot of branches not only in the
Philippines but also overseas, to leave the industry would be to let go of their
employees, and Jollibee would have to pay them. For a company whose been in
the industry for more than 30 years, surely, it already established relationships
within the company, there is this emotional attachment, of stakeholders in the
business, these barriers would discourage exit.

Bargaining power of buyers

The buyers of an industry can sometimes exert pressures on existing

companies. Buyers or the customers of Jollibee are not concentrated; they offer
their products to different segments, so here the power of buyers is low.
Moreover, consumers purchase in small volume, so they would have less power
but there is few switching cost so Jollibee must be able to maintain and gain
customers.

Bargaining power of suppliers

Jollibee, as the leading fast food chain in the industry, purchasing large
volumes of raw materials, makes the company as an important customer of its
suppliers. There is low supplier concentration, Jollibee can have other suppliers
for its products however the raw materials offered by the suppliers is an
important input for Jollibee’s operation, all in all the power of suppliers is low.

Threat of substitute products

There are a lot of products that serve the same functions as that of the
products Jollibee offers, any kind of food would lead to the same function, some
with even lower prices, these substitutes has the capability to threaten the
profitability of Jollibee, furthermore there is only low switching cost involved.
Even though this is the case, Jollibee has still shown development in their
business, customers still patronize Jollibee products.
 CHAPTER III

INTERNAL ENVIRONMENT OF THE STUDY

Jollibee Food Corporation as one of the most established Fast food Restaurant
here in the country posses many attributes that help them to achieve its goals. The
Internal Environment of JFC were been divided into three, namely; (1) Organizational
Structure, (2) Organizational Culture, and (3) Organizational Resources.

Organizational Structure

JFC has its own strategy when it comes to supervising its Internal Resources
especially on how its business is organized. Below is a Chart of JFC that shows the
separation of Task as its Business Structure.

Organizational Chart

CFO COO Audit

President (Caktiong Tan)
Jollibee Worldwide Services
The chart shows the internal relationship and segment of the JFC fromCommisioner
the Top
Secretary Mang Inasal
Director
level management down to the Lower level Chowking
Felipe Alfonso managementBusiness
of theUnit
business.
Cho Sit Ang Poe Eng Chua Cezar Consing Monico Jacob
Artemio Panganiban

jollibee foundation staff

Jollibee Foundation

Yonghe King brand, China

Greenwich Business Unit
Top Level Management

CEO of Jollibee: Tony Tan Caktiong

Board of Directors: Monico Jacob

Poe Eng Chua
Artemio Panganiban
Cezar Consing
Cho Sit Ang
Felipe Alonso

Chief Financial Officer: Ysmael Bayasa

Chief Operating Officer: Ernesto Tanmantiong

Middle Level Management

Jollibee is made up of many different departments, as many corporations tend to

be. Here are some of its departments and each department has its own managers (note
that it doesn’t have the names of the Department Heads due to confidentiality):

● Jollibee Worldwide Service ● Engineering

● Jollibee Foundation ● Human Resource

● Yonghe King Brand ● Information Management

● Red Ribbon Bakeshop ● Procurement

● Fresh & Famous Foods ● Real Estate

● Chowking

● Greenwich Business
Lower Level Management

The lower level management of JFC consists of the Foremen and the Supervisors.
They are selected by the Middle level management.

Organizational Culture

Jollibee is the largest fast food chain in the Philippines, operating a nationwide
network of over 750 stores. A dominant market leader in the Philippines, Jollibee enjoys
the lion’s share of the local market that is more than all the other multinational
brands combined. The company has also embarked on an aggressive international
expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei, firmly
establishing itself as a growing international QSR player.

Values

● Customer Focus ● Spirit for Family and Fun

● Excellence ● Humility to Listen and Learn

● Respect for the Individual ● Honesty and Integrity

● Teamwork ● Frugality

Mission

To serve great tasting food, bringing the joy of eating to everyone.

Vision

Become the most dominant and best‐tasting quick service restaurant, the most
endearing brand that has ever been.
 We will be within reach of every Filipino.

We will lead in product taste at all times.

We will provide FSC excellence in every encounter.

Happiness in every moment..

A company that values family

Jollibee was founded by Tony Tan and his family with its humble beginnings as an
Ice Cream Parlor which later grew into an emerging global brand. At the heart of its
success is a family‐oriented approach to personnel management, making Jollibee one of
the most admired employers in the region with an Employer of the Year Award from the
Personnel Management Association of the Philippines, Best Employer in the Philippines
Award from Hewitt Associated and a Top 20 Employer in Asia citation from the Asian
Wall Street Journal.

Aside from promoting a family oriented work environment, the brands values
also reflect on their advertising and marketing. Jollibee knows their target audience very
well: 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.

A Well‐Loved Brand

Customer satisfaction has always been key to Jollibee’s success. Never losing
sight of its goals, Jollibee has grown to be one of the most recognized and highly
preferred brands in the Philippines. Now the market leader among fast food chains in
the Philippines, claiming a market share that totals to more than half of the entire
industry.

Great tasting products and quality systems

Jollibee’s growth is due to its delicious menu line‐up – like its superior ‐tasting
Chicken joy, mouth‐watering Yum burger and Champ ham burger, and deliciously
satisfying Jollibee Spaghetti ‐ably complemented with creative marketing programs, and
efficient manufacturing and logistics facilities. It 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 in‐store environment and friendly and
efficient service.

And it is this tried and tested formula of delivering great ‐tasting food, adherence
to world class operating standards and the universal appeal of the family values the
brand represents that are driving the expansion of Jollibee both locally and in the
overseas market.

Widest store network in the Philippines and an emerging global player

Jollibee is the largest fast food chain in the Philippines, operating a nationwide
network of more than 750 stores. A dominant market leader in the Philippines, Jollibee
enjoys the lion’s share of the local market that is more than all the other
multinational brands combined. The company has also embarked on an aggressive
international expansion plan, and currently has 80 stores outside the Philippines ‐USA
(26), Vietnam (32), Brunei (11), Jeddah (7), Qatar, Hong Kong, and Kuwait (1 each),
firmly establishing itself as a growing international QSR player.
 Organizational Resources

The assets that are available to Jollibee Corporation for use during the
production process are the resources it uses to operate its business and to maintain and
sustain its competitive advantage. Its resources were divided into four: (1) Human
Resources, (2) Raw Materials and (3) Finances.

Human Resources

The people behind the success of JFC, starting from the top level management
down to the lower level management of the company. Their skills and knowledge are
invaluable to the business. They serve as the core foundation of the company. In order
to have a smooth transition and a productive Human Resources JFC recognizes their
staffs and employees:

 Modern and comprehensive training programs are given to them.

 Managers are regularly updated on the latest store operations systems.

 People‐oriented management skills, among others.

 Service crews are trained on various store stations and food‐service innovations.

 The company also offers career opportunities for qualified and exceptional crew

members to further their food‐service careers as managers.

 Superior “Family‐like” atmosphere.

 Highest compensation.

 Benefit packages.

Raw Materials
 To have a high quality products, JFC has their own Commissary System, ensuring
the manufacture and distribution of safe and high‐ quality food in the most cost ‐
efficient manner. The company can provide their own supplies for their entire
operations having the three big commissaries in the entire Philippines, which operates
24/7, manages Jollibee’s total supply chain process namely:

 Santolan, Pasig City

 Mandaue City, Cebu

 Canlubang, Laguna.

The Jollibee Pasig City commissary has production lines for breads and sauces,
and is the distribution center for North Manila and North Luzon. In 1996, Jollibee
opened the Vismin Foods Corporation (VFC).

Mandaue City, Cebu to service the Visayas and Mindanao areas. VFC has its own
bread, pie, sauce, and frozen patty lines.

Laguna commissary is the biggest and most advanced in the country and among
Asia’s best. Operated by Zenith Foods Corporation (ZFC), a full subsidiary of Jollibee, the
newest commissary is on a 6‐hectare property in the Calmelray Industrial Park. Aided by
custom‐made mechanized equipment, the production lines are for the marinated
Chicken Joy, frozen patties and pies, breads, sauces, hotdogs and other meat products,
and dry blended goods. ZFC can service over 800 Jollibee and Greenwich stores.

Finances

According to wrightreports.ecnext.com, year over year, Jollibee Foods Corp. has

been able to grow revenues from $43.9B to $48.0B. Most impressively, the company has
been able to reduce the percentage of sales devoted to cost of goods sold from 84.02%
to 82.14%.
 CHAPTER IV

SWOT ANALYSIS

This chapter will discuss on the framework called SWOT (Strengths, Weaknesses,
Opportunities, Threats) Analysis used for identifying and analyzing the internal and
external factors that can have an impact on a firm, to its product and to its operation.
Strengths and Weaknesses will focus on the internal attributes while Opportunities and
Threats are on external factors.

Strengths

 Jollibee as one of the leading fast‐food chain in the country

Jollibee Foods Corporation if undeniably profitable because it has a spot

on the top choices of an average Filipino diner that made them to be one of the
leading fast‐food chain in the country. Aside from other fast‐food chains here in
Naga City like McDonald's, KFC (Kentucky Fried Chicken) or Mang Inasal, Jollibee
is one of the many fast‐food chains that can be considered as a true Filipino ‐
made restaurant. Jollibee’s strengths also lie in having a dominant position in
domestic market and achieving high brand loyalty in Philippines. Jollibee also has
experienced managers who assist the franchisees to their success during the
start up stages. They value quality over anything, so they can sustain the loyalty
of their customers.

 Provides high quality of service and best tasting food

Satisfaction of the customers in terms of the quality of service and foods

provided by Jollibee contributes to the strengths of the company. Jollibee always
ensure that the food they serve is of great quality and taste. As what we have
 observed during our short visit on one of their branch in Naga City, after taking
the order from the counter they would then call products from the kitchen and
in just a couple of minutes aromatic and good tasting foods will be served to the
customers. This process is done to ensure that the food they served is fresh.
Aside from the food they served crews were also friendly and maintained to
smile despite the busy and tiring hours of work. The crew ensures to really
accommodate their customers and make the customers feel comfortable upon
purchasing the products.
.

 Adaptability to change and technological advancements

Jollibee is always adaptable to change and preference of their market.

Since their main target market are kids, Jollibee produces toys of every latest
cartoon character and bundle it with their meals. On the technological side the
HappyPlus Card is the Jollibee’s way to adopt the “Near Field Communication” or
NFC. NFC is a sensor device where you will just point your card within four
centimeters; the point will be credited to you. The point that you will accumulate
from the frequent purchase can actually be used in other fast ‐food chains owned
by Jollibee Corporation.

 Affordability and accessibility

Foods offered by Jollibee are affordable by an average Filipino with the

prices of one complete meal ranging from P39.00 and above. In terms of
accessibility, in Naga City there are five Jollibee branches together with the 1,485
stores all over the country, which are located in a major establishments and
populated area to ensure profitability.
Weaknesses

 Delicious yet unhealthy meals

Jollibee is known for its great tasting foods especially when it come to
burger and fried chicken. Though the foods offered are undeniably delicious the
nutrient content is very poor. Since it is fast food we shouldn’t expect that it is
very nutritious and can be a substitute for a home made meals. Many researches
was conducted and proved that eating frequently fast foods will result to obesity
that could lead to many diseases and complication in human’s health.

 Too long approval on operations development

Some managers of Jollibee suggest new strategies and alternatives in

terms of operation of the chain. Some tried to make a proposal and submitted to
the headquarters in Manila but the problem is that the approving committee is
very strict and they scrutinize first every detail of the proposal. Sometimes quick
decisions should be made in order to respond with the sudden change in the
environment to maximize the profitability of the season.

 Limited menu offered to the customer

There are many tourists that visit Naga City all year round. Limited menu
is one of the weaknesses of Jollibee because the tourists are commonly
Americans and included in an American meal is beer or wine. The tendency of
the tourists is to find another restaurants that offer their preferred beverage.
Opportunities

 Adaptation on products and services to culture and tradition

The opportunity in the fast food industry lies in the globalization of the
countries. People around the world are beginning to accept other cultures as
their own and thus the entrance into these markets are getting easier. Another
opportunity is that, as time pressure builds up for people, they want to look for
food that is served fast and provides good value to them. Thus people accept
fast food as a substitute for a meal.

 First‐mover advantage

Jollibee Foods Corporation should continue the search for countries that
has not been entered by the fast food industry or countries that has a few
competitors. It is a big opportunity for them because surely it will become
profitable. As the pioneer in that certain country in the fast food industry they
can set the pace and standard based on their advantage.

 Expanding abroad will be a great opportunity of Jollibee

Currently, Jollibee has a lot of business venture abroad. They have many
existing stores overseas and they are continuously expanding. Expansion of their
empire and putting up more stores around the world will create a brand
recognition and popularity for their company.
Threats

 Growing numbers of competitors

There are many fast‐food restaurants present in the Philippines today.

Some of the most popular names are McDonalds, Wendy’s Hamburgers, Burger
King, Chowking, Greenwich Pizza, Kenny Rogers, Pizza Hut. If the number of
competitors would continuosly increase then, there will be tendencies that
customers will shift to another food chain and the people now is divided.

 Weakening customer demand

Most of the consumers nowadays are becoming health conscious. When

people begins to choose the food that they will eat considering the health
benefits, food served by Jollibee will be last on the list including the other fast
food chains. This is very much possible because of the diseases that are being
discovered and most of these newly discovered diseases are because of the
unhealthy lifestyle and eating habits of the people.

 Bad economy

A bad economy can hurt Jollibee’s operation that will result to missed
growth target and decreasing number of potential customers. With the current
status of our economy, this is possible if it doesn’t change from slow‐moving type
to average or fast moving one.
 CHAPTER V

STRATEGIC OPTIONS OR RECOMMENDATIONS AND CONCLUSIONS

Tony Tan Caktiong provided joy to the Filipino community through the foods
offered by his company. Jollibee Foods Corporation must continue to understand
Filipino community and the foreign customers in order to respond with the changing
needs of the market. Research and development group of JFC should expand from the
general market environment down to the specific areas of the business. Restructuring
the organizational chart into regional based structure should also be considered. Having
a regional based structure can give them another competitive advantage in terms of the
immediate action on issues and proposals that needed an out right decision in response
to unforeseen situations. With these kinds of strategies, JFC will continue to meet the
needs of their customers and will be able to produce product that will suit the taste of a
Filipino tongue.

As a conclusion, though the company faced and is facing numbers of difficulties

in keeping their spot in the industry, still it is very profitable locally and internationally.
The company was able to sustain their competitive advantage for a long time and to
maintain it up until now is a tough job.