NATIONAL COLLEGE OF BUSINESS AND ARTS

MASTER IN BUSINESS ADMINISTRATION

Aurora Boulevard, Cubao, Quezon City • Telephone Nos. 8913-8785 to 87

Name: Gulfo, Pamela Ann B. Subject: MBA SM 6:00PM-9:30PM

Student Number: 2021-30393 Professor: Dr. Marcial V. Mojica

Revamping Strategies with the Fried Towel Mishap: A Jollibee Case Study

I. Company Name: Jollibee Foods Corporation

II. Point of View: Ernesto Tanmantiong
• President and Chief Executive Officer of Jollibee Foods Corporation (JFC)
• Has been actively involved in the management and operation of the
business since its inception in 1978.
• Started as store manager, moving up the ladder and delivering broad and
exceptional contributions across various roles.
• In 2011, he was appointed as COO of JFC, and CEO in 2014 to present.
III. Time Context: 2021
IV. Short Historical Background:
• Jollibee is the largest fast food chain brand in the Philippines, operating a
network of more than 1,500 stores in 17 countries.
• 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.
• In 1993, Jollibee became the first food service company to be listed in the
Philippine Stock Exchange; thus, broadening its capitalization and laying
the groundwork for sustained expansion locally and beyond the
Philippines.
• Jollibee offers a wide variety of affordable and delicious dishes and great
tasting food prepared to satisfy customers of all ages and from all walks of
life.
• Jollibee has embarked on an aggressive international expansion plan, with
more than 270 international branches in the United States, Canada, Hong
Kong, Macau, Brunei, Vietnam, Singapore, Malaysia, Saudi Arabia, United
Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Italy, Spain, and in the
United Kingdom.
 NATIONAL COLLEGE OF BUSINESS AND ARTS
MASTER IN BUSINESS ADMINISTRATION
Aurora Boulevard, Cubao, Quezon City • Telephone Nos. 8913-8785 to 87

• JFC reported a P976 million in net income attributable to parent company

equity holders in the quarter ending June 2021, a reversal of the P10.29-
billion loss incurred in the same period last 2020 that included a P6.2-billion
expense provision for business transformation.
V. Statement of the Problem:
Given that the Jollibee Foods Corporation (JFC) issued a statement relative to
the fried towel mishap due to the alleged failure of following JFC's Standard
Operating Procedures, how can JFC further improve its strategies implemented
and avoid the re-occurrence of related incidents?

VI. Areas of Consideration

• Strengths: A strong brand name; Locally styled food catered to Filipinos;
Brand Value; Family Oriented Branding & Internal Governance; and
Distribution Network
• Weaknesses: Lack of technological investment; Health consciousness;
Marketing Issues; and High-end prices
• Opportunity: Product Innovation; Global Expansion; and E-Commerce
• Threats: Healthy Diet Trends; Competitors; and Regulations

VII. Alternative Course of Action

• ACA 1: MANDATORY REVIEW OF SOP - Standard operating procedures
(SOPs) are vital for any organization's compliance regime. It should be defined
clearly to ensure that everyone understands what is required of them.
Incorrectly written or poorly drafted SOPs can lead to confusion and ambiguity.
That is why JFC needs to ensure that they have accurately complied with the
current regulations and standards.

▪ Advantages: Avoid the occurrence of the same incident; Uphold

company's mission; and Increase customer satisfaction which
redounds to JFC's brand image
 NATIONAL COLLEGE OF BUSINESS AND ARTS
MASTER IN BUSINESS ADMINISTRATION
Aurora Boulevard, Cubao, Quezon City • Telephone Nos. 8913-8785 to 87

▪ Disadvantages: Employees might resist to the changes implemented

which may cause resignation; and Implementation of new SOP
without proper training may again result to the same nature of incident

• ACA 2: CONDUCT OF TRAINING - Conduct of training plays an important

role in communicating the organization’s mission, core values and behavior
expectations, and fostering a healthy work culture in which employees share
a collective sense that ‘we’re all in this together.’ Therefore, achieving synergy
that the company needs in the strategy implementation phase.

▪ Advantages: Employees will gain additional knowledge and enhance

their skills; Avoid confusion in the workplace; Increase productivity;
and Achieve synergy

▪ Disadvantages: Additional cost is needed

• ACA 3: INTENSIFIED AUDIT PROCESS - Intensification in the audit process

can help the management identify the areas that needs attention as well as
the processes that needs to be recalibrated. This will also measure the
compliance rate of each JFC branch to its existing rules and regulations set
by the management.

▪ Advantages: Increase compliance rate of all JFC branches; Boost

sales and increase profitability; and Implement best practices across
all branches

▪ Disadvantages: Additional cost is needed; and Workplace retaliation

• ACA 4: FEEDBACK MECHANISM - it is always important to hear from the

customers or clients especially in the service industry. These feedback
whether positive or negative will help JFC provide better services to their
 NATIONAL COLLEGE OF BUSINESS AND ARTS
MASTER IN BUSINESS ADMINISTRATION
Aurora Boulevard, Cubao, Quezon City • Telephone Nos. 8913-8785 to 87

customers. This will also serve as their compass that will help them keep on
the right track and implement best strategies.

▪ Advantages: Improve customer service; and Boost morale of

employees

▪ Disadvantages: Decrease employee motivation; and Maligning

branch or employees' reputation thru vague complaints

• ACA 5: ADAPTABILITY TO TECHNOLOGICAL ADVANCEMENTS - JFC

can also invest in machineries that will streamline the process of a certain
activity; thus, result to a more efficient delivery of service to its customers.

▪ Advantages: Increase in production with lesser manpower needed

▪ Disadvantages: Additional cost is needed

VIII. Recommendation: I THEREFORE RECOMMEND ALL ALTERNATIVE

COURSES OF ACTION SINCE ALL THE ACAs presented can address the
internal and external factors Jollibee is facing.

IX. Conclusion: By following all the ACAs, JFC can ensure that its SOPs are aligned
with the organization's strategy and are effectively implemented.

Furthermore, targeting the knowledge and skills of their employees and

imparting them the company's core values thru training and capacity building
activities will surely increase productivity of each member of the team. Employees
will acquire new skills or update existing ones and uphold JFC's mission of serving
great-tasting food, bringing the joy of eating to everyone.