MBA 631-1- Entrepreneurship

Prof. Benedicto L. Avila

Torres, Rielyn Ruth M.

JOLIBEE FOOD CORPORATION CASE STUDY

A. Execu8ve Summary
Jollibee Foods Corpora8on (JFC) is the most successful fast food chain in the Philippines.
It started out as an ice cream parlor owned by the Tan family, headed by Tony Tan CakGong (TTC)
as President. Brought about by oil crisis which doubled the price of ice cream, JFC diversified into
hamburgers in the year 1977. Jollibee’s philosophy is epitomized by “Five Fs” – Friendliness,
Flavorful food, Fun atmosphere, Flexibility in serving customer needs, and Focus on families.
Though it began as a family business, eventually, it went public in 1993. JFC expanded its business
through acquisiGon of other food chains but Jollibee stores remained the bread and buWer of the
parent company, contribuGng 85% of total revenues. Jollibee had grown quickly having a total of
223 stores worldwide by the end of year 1997.
Jollibee ventured into overseas expansion aWempts since 1985 but were mostly unsuccessful due
to locaGon and partner issues. In 1993, TTC hired an Australian naGonal Tony Kitchner (who was
the former VP for InternaGonal OperaGons in Pizza Hut for 14 years), to lead JFC InternaGonal
Division in order to push its internaGonal presence at full throWle. Tony Kitchner iniGated many
drasGc changes in the division from modifying office design and dress code to pushing aggressive
expansion strategies and rebranding Jollibee’s image offshore. Kitchner’s bold strategies strained
the InternaGonal Division’s relaGons with the Philippine-based operaGons.
Ader Kitchner led in 1997, a new head of the InternaGonal Division—Manolo P. Tingzon, has been
appointed by TTC. Apparently, Tingzon has to deal with the internaGonal expansion problems
passed on by his predecessor. Of the various issues he has to resolve, he idenGfies three
immediate growth opportuniGes which will certainly lay out the InternaGonal Division’s future
direcGon.

Purpose, Mission, and Vision

 To improve the quality of life of people by playing its part and offering healthy food. It
wishes to help the world in shaping a healthy and beWer future. Its vision is to supply its
consumers with food that is healthy, high in quality and safe to eat. It wishes to be innovaGve and
concurrently understand the needs and requirements of its customers. Its vision is to grow quick
and provide products that would please the needs of each age. It is the leading company in the
food industry, it believes in 'Great Food, Excellent Life'. Its mission is to supply its customers with
a range of opGons that are healthy and best in taste. It is concentrated on supplying the best food
to its consumers throughout the day and night.

B. Statement of the Problem

The main problem that was being faced by the company was its deterioraGng strategies
of expansion. Company was trying much harder to achieve foreign achievement and to make itself
successful. However, the company was unable to find a trustworthy partner and the strategies
that would make them successful.

C. Areas of Considera8on
Strengths
• Iconic Filipino Flavors: This have been modified to appeal to a broader audience.
Filipinos and non- Filipinos adore their famous dishes like Chicken Joy, Jolly Spaghej, and
Peach Mango Pie. Since these dishes are created using high-quality ingredients, the taste
and flavor are consistent throughout all Jollibee locaGons.
• Customer Centric Approach: Jollibee has always put its consumers' needs and
preferences first - a customer-centric strategy. Through surverys and social media, the
business conGnuously solicits clients' evolving demands. The menu at Jollibee offers a
range of alternaGves, including vegetarian selecGons, to accommodate various dietary
requirements.
• InnovaGon and creaGvity: Jollibee has consistently been at the forefront of innovaGon
and invenGveness. Over the years, the business has added several other menu dishes, like
Chicken joy with Rice and Gravy, which has become a favorite among Filipinos.
• Strategic Expansion: It has assisted the business in effecGvely entering new areas. The
corporaGon focused on regions with sizable Filipino communiGes, like the Middle East,
Canada, and US, where the brand is already well-knows.
 • Broad Network: Jollibee has an extensive network of stores and franchises across
mulGple countries. The company's broad network has enabled it to reach a large customer
base and establish itself as a global brand.
• Customer Loyalty and 24/7 Service: Jollibee's focus on customer saGsfacGon has helped
it build a reputaGon as a brand that cares about customers and values their loyalty. Also,
Jollibee's 24/7 services have also helped it capture a larger market share and increase its
revenue streams.

Weaknesses
• Health consciousness: Leading consumers to opt for healthier food opGons. Jollibee's
menu is heavily focused on fast food and friend items, which are perceived as unhealthy
by some consumers. Jollibee needs to develop a more diverse menu that includes
healthier opGons such as salads, grilled items, and vegetarian opGons.
• Supply and demand imbalance: Result of company's rapid expansion, which has led to
the inability to meet the increasing demand for its products. This problem is compounded
by the company's inability to efficiently manage its supply chain, leading to frequent
stockouts in some locaGon.
• Inaccessible in some areas: It has yet to establish a significant foothold in other markets.
This makes it difficult for the company to compete with established market players.
• High-end prices: Products are priced higher than many compeGtors, making them less
accessible to price-sensiGve consumers.

Opportuni8es
• InnovaGon: By conGnuing to develop new unique products and services, Jollibee can
maintain its compeGGve edge and aWract new customers. Company can also leverage
technology to develop innovaGve soluGons for improving its operaGons and customer
experience.
• Lowering product release cost: To leverage technology to opGmize its supply chain and
reduce costs associated with product development and release.
• Jollibee Food Corp. provide business operaGonal training program for new applicants
which provides seminars and hand-on exposure to all level of store operaGon.
• Expanding and adapGng the menu to align with healthier and more sustainable food
opGons.

Threats
• SGff compeGGon from low-priced brands: Jollibee faces sGff compeGGon from low-
priced brands, such as McDonald's and KFC, which are established in the market. These
 brands have a strong brand image and are well-known for their quality product and
services.
• Economic Issues: Consumers are becoming more conscious of their spending habits.
The company will have to adapt to this trend by offering economic diets or value meals,
which will help to aWract price-sensiGve customers.
• Expansion into New Market: The company's aggressive expansion strategy has entered
new markets and countries such as the United States, Canada, and the UK. Jollibee must
carefully evaluate risks and opportuniGes of each new market it enters.
• ConGnuous Change in Consumer Preferences: There has been a growing trend towards
healthier eaGng habits, which has led to the rise of plant-based food and vegetarian
opGons.

D. Alterna8ve Course of Ac8on:

This is to address Company's Challenges and OpportuniGes.
• JFC must first know and understand cultural differences and develop appropriate means
of addressing these differences.
Advantage: Company will be able to know what food and taste to be produced and
based on the research and development results.
Disadvantage: Some products lines may be drop due to consumers' preferences. Filipino
taste and style may not be suitable for foreign countries.

• DiversificaGon- Jollibee could use diversificaGon to expand its business by acquiring

internaGonally known companies. Company's menu can include healthier opGons, such
as salads, vegetarian choices, and low-calorie meals.
Advantage: The intent of the franchisee is a great indicator on the direcGon of the
company. Tells what the franchisee is aiming. Jollibee Food CorporaGon can take
advantage of exisGng experGse, knowledge and resources in the company when
expanding into new acGviGes. This may result in transfer of skills, such a research and
development knowledge and sharing of resources.
Disadvantage: This is considered the riskiest and the most expensive form of strategy in
the Ansoff Matrix since it involves new products and new market bundled into one.

• Market Development- Being geographic set up as the focus of the company,

Jollibee Foods CorporaGon could develop franchise partners toward countries with
exisGng Filipino minoriGes.
 • Co-Branding of ExisGng Company- Jollibee Foods CorporaGon could use co-branding
by using JFC's exisGng business such as Red Ribbons, Chowking, Burger King Philippines,
to partner up.

E. Conclusion
Jollibee's success story is testament to the company's strengths, allowing it to establish a
strong presence in highly compeGGve fast-food industry. The company's focus on customer
saGsfacGon, menu diversificaGon, and ability to adapt to different markets have been criGcal
factors in its success. AddiGonally, Jollibee's strong leadership and ownership structure have
allowed it to maintain its vision and commitment to delivering high-quality food and service to its
customers. Jollibee's journey from a small ice cream parlor to a global brand has been remarkable,
and its achievements are a testament to its unwavering commitment to excellence. By offering
unique and innovaGve menu items, the company has appealed to many customers, from
tradiGonalists to those seeking new and exciGng taste experiences.

Furthermore, Jollibee's markeGng strategies have also played a crucial role in its success.
The company's use of catchy slogans, memorable jingles, and relatable adverGsing campaigns has
helped it to establish a strong brand idenGty and create an emoGonal connecGon with its
customers. Jollibee's success results its unique strengths, which have enabled it to build a loyal
customer base and expand its operaGons into new markets. As the company conGnues to grow
and evolve, it will face new challenges. SGll, its commitment to excellence and customer
saGsfacGon ensures it will remain a strong contender in the fast-food industry for years.