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Final Researcg C T
Final Researcg C T
Final Researcg C T
CITY
A Research presented to
the Faculty and Staff of the College of Business and Accountancy of
Carlos Hilado Memorial States College
In partial fulfillment
Of the requirements for the Degree
Bachelor of Science in Business Administration
Caagoy , Natzylin R.
Tamayo John Simon G.
JANUARY 2024
APPROVAL SHEET
was prepared and submitted by Amorganda, Jewela Breech G., Diadema, Jerome C.,
Eriman, Andrea Rose G., Flor, Kristin D., Jaranilla, Kia Mae D., and Peraren,
Mayvell F.
In partial fulfilment of the requirement for the subject Business Research has been
Approval in Partial Fulfilment of the Requirement for the subject Business Research.
Accepted as partial fulfilment of the requirements for the subject Business Research.
The research will delve into market dynamics, consumer preferences, and competitive
landscape to identify opportunities and challenges associated with the introduction of
Jollibee. Additionally, the study will analyze the local business environment, regulatory
frameworks, and cultural considerations that may impact the success of Jollibee's
franchising venture in Binalbagan City.
Furthermore, the research will assess the economic feasibility of franchising Jollibee in
terms of investment requirements, potential returns, and long-term sustainability. By
conducting interviews with local entrepreneurs, consumers, and industry experts, the
study aims to provide insights into the expectations, concerns, and perceptions
surrounding the introduction of Jollibee to the Binalbagan market.
The findings of this research are expected to contribute valuable insights to Jollibee's
strategic decision-making process in expanding its franchise operations. Moreover, the
study can serve as a reference for local entrepreneurs, policymakers, and researchers
interested in the dynamics of international franchising in emerging markets.
Title Page
Title Page i
Approval Sheet ii
Acknowledgement iii
Dedication iv
Abstract v
Table of Contents vi
CHAPTER 1 INTRODUCTION 1
Hypothesis
Conceptual Framework
Research Design
Definition of Terms
Foreign Literature
TOTAL QUALITY MANAGEMENT
Local Literature
Synthesis
Research Design
Ethical Consideration
LIST OF TABLES AND FIGURES
Tables Page
1 Figure 1. Paradigm of the Study
DEDICATION
The proponents would like to express their deepest appreciation to Almighty God for
providing guidance, assistance, and resources throughout the study. The proponents
acknowledge that the knowledge and insights presented in this research are results of God's
Furthermore , Furthermore, the researchers would like to extend their heartfelt gratitude
to their beloved family members and friends, whose encouragement and understanding have
been instrumental throughout this research journey. Your patience and belief in the pursuit of
fuels the economic heartbeat of this city, this work is a tribute to your vision and dedication.
Lastly, to the iconic Jollibee brand, whose impact extends far beyond the realms of
gastronomy, this study is dedicated to the shared belief that good food and warm smiles have the
I extend my deepest gratitude to all those who have contributed to the completion of this
research on "A Strategic Analysis of Franchising Jollibee in Binalbagan City." This endeavor has
been a collaborative effort, and I am sincerely thankful to the following individuals and
institutions:
First and foremost, to the people of Binalbagan City for their warm hospitality and
willingness to share insights during the course of this research. Your openness and enthusiasm
have enriched the study and provided valuable perspectives on the local context.
I extend my heartfelt thanks to the local entrepreneurs, business leaders, and industry
experts who generously shared their time and expertise. Your experiences and knowledge have
been instrumental in shaping the strategic analysis and recommendations presented in this
research.
To all those who have steadfastly supported the proponents, even without being
specifically acknowledged, a deepest gratitude. Your unwavering support has been invaluable,
and immensely grateful for your presence and dedication. Thank you, a million times, over.
CHAPTER 1
INTRODUCTION
Binalbagan City, nestled in the vibrant Negros Occidental province of the Philippines,
has witnessed substantial economic growth and cultural transformation in recent years. With a
population exceeding 80,000 ( 2020 Census )residents and a diverse economy anchored in
agriculture and emerging industries, Binalbagan stands as a promising hub for business ventures.
The local fast-food industry in Binalbagan has experienced robust growth, with an annual
burgeoning appetite for diverse culinary experiences. A recent market survey involving 300
residents revealed a preference for globally recognized fast-food brands, with 65% expressing
Jollibee, a Filipino multinational chain with a global presence, has been eyeing strategic
expansion opportunities. In 2022, Jollibee Corporation reported a total revenue of USD 3.5
billion, showcasing its resilience and success in the competitive fast-food market. The brand's
unique blend of Western-style fast food and Filipino flavors has resonated with consumers
worldwide.
This research aims to explore the feasibility and strategic intricacies associated with
An in-depth analysis of the local fast-food market in Binalbagan City, with a focus on
Insights from interviews with local residents and entrepreneurs to understand the
Exploration of cultural nuances and preferences through focus group discussions to guide
Economic Feasibility:
Projections based on local economic indicators to assess the potential financial impact on
expansion. Against this backdrop, the introduction of a globally recognized brand, such as
Jollibee, is contemplated. However, the strategic challenges and considerations surrounding the
What is the current state of the local fast-food market in Binalbagan City?
How do consumer preferences and behaviors in Binalbagan City align with the offerings
of Jollibee?
What are the competitive forces at play in the local fast-food industry, and how might
How can Jollibee effectively adapt its business model to align with the cultural nuances
Economic Feasibility:
What are the financial implications and investment requirements associated with
What potential economic benefits and risks are associated with the introduction of
How might these regulations impact the franchising process for Jollibee, and what
challenges and opportunities associated with franchising Jollibee in Binalbagan City, informing
strategic decisions for both the franchisee and the Jollibee Corporation.
HYPOTHESIS
economic impact between areas with and without a Jollibee franchise in Binalbagan City."
(H1) :The introduction of a Jollibee franchise in Binalbagan City leads to a significant
increase in market share, consumer preference, and positive economic impact compared to areas
THEORETICAL BACKGROUND
International Franchising:
The Uppsala Model, developed by Johanson and Vahlne (1977), serves as a foundational
theory in international business, proposing that firms progressively increase their commitment to
foreign markets. In the context of franchising, this model suggests that Jollibee's expansion into
Binalbagan City is likely to follow a gradual and sequential process as the franchise adapts to
global brands like Jollibee. As Aaker suggests, brand equity encompasses brand awareness,
perceived quality, brand associations, and brand loyalty. Examining these components aids in
predicting how Jollibee's brand elements may resonate with the local population in Binalbagan
City.
and Faletto (1979), offers insights into how the introduction of global franchises can influence
the economic landscape of a region. The research investigates whether Jollibee's presence in
Binalbagan City contributes positively to local economic development through job creation,
Barney (1991) and Teece et al. (1997), respectively, guide the exploration of how Jollibee adapts
its operations and innovates to meet local market demands. These theories underscore the
importance of leveraging unique resources and capabilities to navigate challenges, ensuring the
CONCEPTUAL FRAMEWORK
In the context of exploring the strategic expansion of Jollibee in Binalbagan City, this research
associated with franchising within this unique market. The IPO framework provides a structured
lens, allowing us to dissect the essential inputs, scrutinize the intricate processes involved in
adapting a global franchise to local dynamics, and project the anticipated outputs that hold
significance for both the fast-food industry and the broader economic landscape of Binalbagan
City.
Financial Resources: Initial
investment, operational budget.
INPUT
PROCESS
This study employs a carefully crafted research design encompassing a blend of qualitative
methods, such as in-depth interviews and focus group discussions with local entrepreneurs and
community leaders, to unearth nuanced insights into the cultural and operational intricacies of
data will be gathered through surveys, offering a statistical lens to analyze consumer preferences,
market trends, and the economic feasibility of introducing a global brand to this dynamic locale.
Local Entrepreneurs and Business Owners. The findings of this study offer valuable insights
to local entrepreneurs and business owners by providing a strategic roadmap for venturing into
franchise opportunities with globally recognized brands. Understanding the nuances of adapting
a global brand to local markets can enhance their decision-making processes.
Municipal authorities and community leaders. Stand to benefit from this study as it
emphasizes the importance of collaboration and positive relationships in the context of
introducing international franchises. The research promotes a better understanding of how such
ventures can contribute to local economic development and community well-being.
Jollibee Corporation and Franchise Managers. The study provides valuable insights to
Jollibee Corporation and franchise managers by offering a nuanced understanding of the
challenges and opportunities associated with expanding into a unique market like Binalbagan
City. This knowledge can inform their strategies for successful entry and integration.
Local Consumers and Fast-Food Enthusiasts. The study is beneficial for local consumers and
fast-food enthusiasts as it explores how the introduction of a Jollibee franchise can enhance
dining options, cater to diverse tastes, and contribute to a vibrant culinary landscape in
Binalbagan City.
Academic Researchers and Scholars. Academic researchers and scholars can benefit from this study by
gaining insights into the dynamics of international franchising, cultural adaptation in business, and the
economic implications of introducing global brands to local markets. The research contributes to the
academic discourse in the fields of international business and franchise management.
Future investors and entrepreneur. can find value in this study as it serves as a reference
point for understanding the complexities and considerations involved in introducing global
franchises to emerging markets. The research provides a foundation for informed decision-
making in similar ventures.
\
This research endeavors to illuminate the strategic intricacies entailed in the introduction of a
Jollibee franchise in Binalbagan City, aiming for a comprehensive understanding of cultural
adaptation, operational challenges, and economic implications associated with this significant
business venture. The study delves into several key dimensions, starting with an in-depth
exploration of the local fast-food market dynamics in Binalbagan City. This entails scrutinizing
consumer preferences, understanding competitive forces, and anticipating potential shifts in
market share that may transpire with the advent of the Jollibee franchise.
Furthermore, the research places a strong emphasis on analyzing the operational strategies
employed by Jollibee to align with the unique demands of the local market. This involves
investigating menu customization, tailoring marketing approaches, and adapting logistical
processes to ensure seamless integration. Additionally, the study seeks to unravel the economic
impact stemming from the introduction of a Jollibee franchise, with a specific focus on aspects
such as job creation, potential increases in consumer spending, and contributions to the overall
development of local businesses within the community.
The research also extends its purview to encompass a diverse array of stakeholder perspectives.
By soliciting insights from local entrepreneurs, consumers, municipal authorities, and Jollibee
Corporation, the study aims to construct a comprehensive tapestry of viewpoints, providing a
holistic understanding of the multifaceted nature of franchise introduction in Binalbagan City.
Despite the ambition for comprehensiveness, this research is not without limitations. Its
applicability may be confined to the specific context of Binalbagan City, limiting the
generalizability of findings to other cultural and economic settings. Time constraints present
another consideration, with the study operating within a defined timeframe that may not capture
changes in market dynamics or operational strategies beyond its duration. Data availability and
reliability represent inherent limitations, with the research contingent on access to accurate and
up-to-date information. External factors, unforeseen events, economic shifts, or policy changes,
are beyond the study's control and may influence outcomes in unpredictable ways. Cultural
sensitivity, while a focal point, remains a challenge, and limitations in sample size may impact
the generalization of findings to the entire population. Despite these limitations, the study adopts
a transparent approach, encouraging cautious interpretation of results, and acknowledging the
specific contextual constraints that may influence the scope and depth of the research.
Franchising: For the purpose of this study, franchising refers to the business strategy where
Jollibee Corporation grants an individual or group the right to operate a Jollibee restaurant in
Binalbagan City. This involves the transfer of the Jollibee brand, operational know-how, and
support in exchange for financial and operational commitments.
Cultural Adaptation: Cultural adaptation pertains to the strategic adjustments made by Jollibee
in its operations to align with the local culture of Binalbagan City. This includes modifications in
menu offerings, marketing approaches, and overall business practices to resonate with the
preferences and cultural nuances of the local community.
Operational Strategies: Operational strategies encompass the specific approaches and plans
implemented by Jollibee to ensure the seamless integration of its franchise into Binalbagan City.
This involves logistical considerations, supply chain management, and other operational
decisions made to optimize efficiency and effectiveness within the local market.
Economic Impact: Economic impact refers to the measurable effects that the introduction of a
Jollibee franchise may have on the local economy of Binalbagan City. This includes indicators
such as job creation, increased consumer spending, and contributions to the development of local
businesses.
Stakeholders: Stakeholders in this study encompass individuals or entities directly or indirectly
involved in the introduction of the Jollibee franchise in Binalbagan City. This includes local
entrepreneurs, consumers, municipal authorities, and Jollibee Corporation.
Market Dynamics: Market dynamics refer to the various forces influencing the fast-food market
in Binalbagan City. This includes factors such as consumer preferences, competition among fast-
food establishments, and potential changes in market share resulting from the introduction of the
Jollibee franchise.
Representativeness: Representativeness pertains to the extent to which the findings of the study
can be considered reflective of the broader population or context. It acknowledges the limitations
of sample size and aims to assess the degree to which research outcomes can be generalized.
Timeframe: Timeframe refers to the specific duration during which the research is conducted. It
sets the boundaries for data collection and analysis, recognizing that changes beyond this period
may not be fully captured.
CHAPTER II
REVIEW OF RELATED LITERATURE
FOREIGN LITERATURE
The fast-food industry has been a pioneering force in the global expansion of franchising.
Studies by Rugman and Verbeke (2007) highlight the standardized approach adopted by
multinational corporations in franchising to maintain brand consistency across diverse markets.
This standardization-versus-adaptation challenge is pertinent to Jollibee's entry into Binalbagan
City, emphasizing the need for a tailored approach to align with local preferences.
The success of a franchise hinges on multifaceted factors, with a crucial emphasis on the
relationship between franchisors and franchisees (Dant & Gundlach, 1999). This relational
aspect is pivotal as Jollibee Corporation collaborates with local entrepreneurs in Binalbagan
City, necessitating trust and cooperation for a fruitful partnership.
Research by Lafontaine and Shaw (1999) emphasizes the economic ramifications of franchising,
with implications for job creation and increased consumer spending. These findings align with
the potential economic contributions that the introduction of a Jollibee franchise could bring to
Binalbagan City.
In essence, while the literature on international franchising provides valuable insights, there is a
dearth of specific studies on the introduction of global brands like Jollibee to unique markets
such as Binalbagan City. This review establishes the groundwork for an in-depth exploration of
the strategic, cultural, and economic considerations associated with franchising Jollibee in
Binalbagan City.
Customer-Centric Vision:
Description: A customer-focused TQM approach begins with a clear vision that prioritizes
customer satisfaction and exceeds their expectations.
Application: Jollibee's franchise in Binalbagan City should have a customer-centric vision that
guides all aspects of the business, from menu customization to service delivery.
Understanding Customer Needs:
Description: TQM emphasizes the importance of understanding and meeting customer needs.
This involves active communication and feedback mechanisms.
Application: Implementing surveys, feedback forms, and direct interactions to understand the
preferences and expectations of the local customers in Binalbagan City.
Continuous Improvement Based on Customer Feedback:
Description: TQM promotes a continuous improvement cycle where feedback from customers is
used to enhance products and services.
Application: Establishing a feedback loop where customer comments and suggestions are
actively considered, leading to menu adjustments, service improvements, and overall better
customer experiences.
Employee Involvement in Customer Satisfaction:
Description: TQM emphasizes that all employees are responsible for ensuring customer
satisfaction. It encourages employees to be proactive in identifying and addressing customer
needs.
Application: Providing training to franchise employees in Binalbagan City on customer service,
and empowering them to take initiative in resolving customer issues promptly.
Consistent Quality in Products and Services:
Description: TQM underscores the importance of maintaining consistent quality in all products
and services offered to customers.
Application: Implementing quality control measures in food preparation, ensuring that every
Jollibee product in Binalbagan City meets the established standards consistently.
Customer Relationship Management:
Description: TQM encourages building strong relationships with customers. This involves not
only meeting their needs but also creating a positive and memorable experience.
Application: Implementing customer loyalty programs, promotions, and personalized
interactions to foster a strong connection between the Jollibee franchise in Binalbagan City and
its customers.
Benchmarking Against Customer Expectations:
Description: TQM involves benchmarking against the best practices in the industry and
exceeding customer expectations.
Application: Regularly evaluating the performance of the Jollibee franchise in Binalbagan City
against industry benchmarks and customer expectations to identify areas for improvement.
Description: TQM emphasizes empowering employees by providing them with the authority and
responsibility to make decisions that impact quality.
Application: In the Jollibee franchise, employees in Binalbagan City should be empowered to
take ownership of their roles, make decisions to enhance customer experience, and contribute to
the continuous improvement of processes.
Training and Development:
Description: TQM encourages continuous training and development to ensure that employees
have the necessary skills and knowledge.
Application: Implementing regular training programs for employees, including customer service
training, food safety practices, and any other relevant skills needed for effective operations.
Teamwork and Collaboration:
Description: TQM emphasizes the importance of teamwork and collaboration among employees
to achieve common goals.
Application: Fostering a collaborative work environment in the Jollibee franchise in Binalbagan
City, where employees work together seamlessly to provide excellent service and contribute to
the success of the franchise.
Communication Channels:
Description: Open and effective communication is a key TQM concept, ensuring that employees
are informed and involved in decision-making processes.
Application: Establishing regular communication channels, such as team meetings, suggestion
boxes, or digital platforms, to encourage employees to share ideas, feedback, and concerns.
Recognition and Reward Systems:
Description: TQM recognizes and rewards employees for their contributions and achievements.
Application: Implementing a recognition and reward system in the Jollibee franchise in
Binalbagan City to acknowledge and appreciate employees who demonstrate exceptional
commitment, innovation, or customer service.
Employee Feedback and Suggestions:
Description: TQM encourages organizations to actively seek and incorporate employee feedback
and suggestions.
Application: Establishing a system for employees to provide feedback and suggestions on
operational processes, customer service, and overall franchise performance. This could include
regular surveys or suggestion boxes.
Continuous Improvement Culture:
Description: TQM instills a culture of continuous improvement, where employees are actively
involved in identifying areas for enhancement.
Application: Creating a culture within the Jollibee franchise in Binalbagan City that promotes
continuous improvement, where employees are encouraged to suggest improvements, participate
in problem-solving, and contribute to the overall growth of the franchise.
Quality Circles:
Description: TQM often involves the formation of quality circles, where small groups of
employees come together to address specific quality-related issues.
Application: Implementing quality circles in the Jollibee franchise in Binalbagan City, where
employees from various departments collaborate to identify and address challenges related to
product quality, customer service, or operational efficiency.
Description: The PDCA cycle is a TQM framework that involves planning a change,
implementing it (doing), evaluating the results (checking), and then acting on the findings to
make continuous improvements.
Application: Implementing the PDCA cycle in the Jollibee franchise in Binalbagan City to
systematically identify areas for improvement, test changes, assess outcomes, and make
informed adjustments.
LOCAL LITERATURE
Description: Tailoring global operational processes to suit the local context, considering cultural
preferences, local market dynamics, and regulatory requirements.
Application: Adapting menu offerings, service styles, and promotional strategies to resonate with
the local community in Binalbagan City, enhancing relevance and customer satisfaction.
Continuous Improvement Initiatives:
Description: Utilizing technology solutions to streamline and automate processes, such as point-
of-sale systems, inventory management, and customer relationship management tools.
Application: Introducing technology that aligns with the local setting, improving order
processing, inventory control, and customer interactions within the Jollibee franchise in
Binalbagan City
COMMUNICATION AS TQM CONCEPT
. the context of franchising Jollibee in Binalbagan City or any local setting, effective
communication strategies contribute to the success and alignment of the franchise with global
quality standards. Here's how communication operates as a TQM concept:
Description: Communicating the importance of continuous improvement and the role each
individual plays in identifying and addressing quality-related opportunities.
Application: Reinforcing a culture of continuous improvement through communication
encourages employees to actively contribute ideas for enhancing quality within the franchise.
In summary, communication as a TQM concept in the franchising of Jollibee involves clear
articulation of quality objectives, effective internal communication channels, feedback
mechanisms, training communication, cross-functional collaboration, external communication,
crisis communication, and continuous improvement communication.
SYNTHESIS
In the pursuit of franchising Jollibee in Binalbagan City, Total Quality Management (TQM)
concepts synergize to form a robust operational framework. Process management establishes
standardized operations, adapting to local dynamics and fostering continuous improvement.
Communication acts as the catalyst, aligning stakeholders with global quality standards and
creating a culture of collaboration and transparency.
Supplier quality ensures the integrity of ingredients through reliable partnerships with local
suppliers, contributing to the franchise's resilience. Assessment serves as the compass, guiding
the franchise towards excellence through systematic evaluations and a commitment to
continuous improvement. This harmonious integration establishes the franchise not just as a
business but as a quality-driven presence deeply connected to the local community in Binalbagan
City.
CHAPTER 3
METHODOLOGY
This chapter set forth the methodology that was modified in order to establish the study’s
overall validity and reliability using the data being collected and analyzed.
DESIGN
situation or phenomenon. It can answer what, where, when and how questions, but not why
questions. A descriptive research design can use a wide variety of research methods to
data. It can be used to find patterns and averages, make predictions, test causal relationships, and
research, which involves collecting and analyzing non-numerical data (Bhandari P., 2022).
RESPONDENTS
through online google forms. The questionnaire was divided into two parts. The first part of the
instrument was composed of demographic profile such as the stakeholders, sex, and department.
While, the second part was composed of the proper survey questionnaire pertaining to the extent
City. The selected respondents of Binalbagan City gathered in order to be facilitated for the
conduct of the study. The study was done through the utilization of online google forms
questionnaire. The questionnaires were given to the stakeholders as a survey and reference in
terms of respondent’s experience in using it. The researchers had been able to know the
All the information that had been gathered was tallied using worksheet. A digital
generated result with the help of the statistician, made it possible for the researchers to come up
The data analysis process for the study on franchising Jollibee in Binalbagan City
commenced with a meticulous examination of the collected responses. The researchers ensured
the completeness and accuracy of the data, addressing any missing or inconsistent entries.
Subsequently, the data was entered into a spreadsheet, and variables were coded for systematic
organization and easy reference. Descriptive statistics, including mean, median, mode, range,
and standard deviation, were computed for numerical variables, while frequency distributions
and percentages were generated for categorical variables. Graphical representations were
employed to illustrate key findings. Inferential statistical tests, such as t-tests, chi-square tests,
and regression analysis, were conducted based on the research questions and nature of the data.
variables. Thematic analysis was applied to qualitative data derived from open-ended questions,
The results were interpreted in the context of the research objectives, with a focus on the
implications of the findings. The collaboration with a statistician ensured the accuracy and
appropriateness of the statistical procedures. Finally, the comprehensive report integrated the
data analysis process, presenting key findings, drawing conclusions, and formulating
Binalbagan City.
ETHICAL CONSIDERATION
Striving to protect the anonymity and confidentiality of participants, the research team
made conscious efforts to minimize the collection of personally identifiable information and
participation was entirely optional and free from any form of coercion or undue influence. The
research upheld a deep respect for privacy by minimizing intrusion into personal lives, especially
when handling sensitive or personal questions. The principles of beneficence and non-
maleficence were integral, with a commitment to maximizing benefits and mitigating potential
Transparency in research practices was emphasized, with clear communication about the
study's purpose, methods, and potential outcomes. The research team prioritized accuracy and
honesty, ensuring the integrity of findings without manipulation of data. Community engagement
played a vital role, particularly if the research directly involved the local community, by actively
underscored the commitment to ethical conduct. Offering participants feedback on the overall
study results and providing debriefing sessions addressed any lingering concerns and contributed
to the ethical integrity of the research process. These ethical considerations collectively formed
the foundation for responsible and respectful research, fostering trust among participants and