Tony Tan Cacktiong founder of Jollibee Foods Corporation tells a story about the success

story of his company. There are many other stories about Tan and Jollibee that many
people didnt know about, and that would have remained unknown, If Tan hadnt bested
successful entrepreneurs from 30 other countries to win the World entrepreneur of the
year Award in Montecarlo, Monaco, on May 28, 2004. Tan had always been low-key and
media-shy. He was quiet happy to let his lieutenants do the talking for him to the press,
actually but his winning the award from the accounting firm Ernst & Young had forced him
to agree to so many newspaper, magazine, and TV interviews later to tell them the story
about the Jollibee story. After all it was he who won the award - not any of his lieutenants.

Still, if Tan had always been reticent about telling the Jollibee story beyond his immediate
circle of friends and acquaintances, he had been equally reticent-if not more so-about
revealing his personal history to the outside world. This reticence comes from humility.
Unlike many corporate leaders who trace their lineage to wealthy Chinese clans, and who
had studied in the more prestigious schools, Tan had comparably very humble beginnings,
with his family exactly mirroring the stark circumstances in which the early Chinese
immigrants found themselves in Manila. His father had been an immigrant cook in
Binondos Seng Guan Buddhist Temple on Narra Street before he opened a small Chinese
restaurant in Davao City, where Tan and his siblings helped clean tables and get water to
customers.

It was his experience in his fathers restaurant that set Tan and his siblings on the road to
entrepreneurship. In 1975, when he was set to graduate as a chemical engineer at the
University of Santo Tomas in Manila, Tan and his family pooled P350, 000 to open 2
Magnolia ice cream parlors: Cubao Ice Cream House near the...


Description of Business
Jollibee is a well-known fast-food restaurant in the Philippines offering food great tasting
and great value food. It has attained success from its humble beginnings. In 1975, Tony tan
Caktiong, the founder of Jollibee and his family opened up a Magnolia ice cream parlor in
Cubao, Quezon City. Sometime in 1978, Caktiong and his brothersand sisters engaged the
services of a management consultant, Manuel C. Lumba. Lumba shifted the business focus
from ice cream to burgers after studies proved that a much larger market was waiting to be
served. Tony considered Lumbas advice. So, he came up with the decision to fully
transform his business from ice cream parlor shop to hamburger fast-food restaurant. To
further improve the restaurants position, tony and Lumba changed its name from Jolibe to
Jolly Bee, then to Jollibee. Next, they pictured its mascot. Enthused by foreign and local
childrens book, in 1980, they have created Jollibees current mascot, a big red nee wearing
a blazer as well as a chefs hat. The large bee mascot is probably the most widely
recognized character in the Philippines. They also created names for their menus. The two
most popular were Yumburger for their burgers and Chickenjoy for their deep fried
chickens.

He had the company incorporated and leased a house on Main St. in Cubao, Quezon City
as its first headquarters. Lumba devised a long-term marketing strategy: listing up a number
of consumer promotions and traffic building schemes. The stores were redesigned, the
service transformed into a full service fast-food operations with drive-thru. Today, from two
outlets in 1975, Jollibee has 686 restaurants in the Philippines. Until now, the first branch of
Jollibee is still operating in Coronet, Cubao under the Jollibee Foods Corporation. Since
1981, Jollibee has acquired numerous prestigious awards and recognitions. Few were Most
Outstanding...

The critical factor responsible for jollibee
success in the philippines
Critical Success Factor- analysing the area in the operation to achieve the goals of the company
Competitors - the company or organization in the same industry that offer the same products
and services.
Leadership - a role in the organization which provide information, and coordinating each of the
employee to achieve the vision of the company.
Low Cost - offering low prices with the products and services to gain profit.
Mission - it is something to be accomplish and it is the central focus of the company.
Reliability - an instrument use to measure to describe a test.
Shared Values - it is a beliefs that guide employees and management with their decision in the
company.
Skills - it is the ability and competence of staff or employee in the organization.
Staff - employee or personnel which plays an important role in the operation.
Supplier - the one who supply and distribute raw materials in the company.
System - a method or a procedure to perform one's duty.
SWOT Analysis - an analysis of internal and external factors in the company such as strength,
weakness, opportunities and threats.
Validity - refers to whether the test or study answer the theory of the test score.
EXECUTIVE SUMMARY
The research proposal is about the Jollibee Food Corporation based in the Philippines. They
expanding and developing and has outlets locally and abroad. The main competitors are
Mcdonalds, Kentucky Fried Chicken, and Burger King. The researcher will explore and study
about the critical success factors responsible for the company's success. The researcher
proposed to study if the low cost operating system establish by the company is the critical
success factors or not and what influence them. The study include different concept and
theories that will be use to analyse the business competitive strategies like SWOT Analysis, 7-S
Framework by Mckinsey, Porter's five forces and PEST Analysis that are useful tools that will
support the research study. The researcher also draw the research design, sampling
techniques, data analysis and measuring and collecting data. The researcher discuss some
ethical implications at the end of the report and properly appraised the source of materials
through Harvard referencing. At the end of the report , the time scale are discussed that outlines
the viability of the research.
INTRODUCTION
Fast food chain in the Philippines refers to the foods that are being prepared and served quickly
to the customers. It is also known as a Quick Service Restaurant. There are numerous chain of
fast food in the Philippines. The Jollibee Food Corporation which sells Hamburger, Fries,
Spaghetti, Chicken, and Jolly Hotdog with local taste. The biggest competitors are McDonalds,
Kentucky Fried Chicken, Burger King, and Pizza Hut. Jollibee Food Corporation is the number
one fast food chain in the Philippines and it also enters the global market. They have outlets in
United States of America, Guam, Kuwait, Brunei, Taiwan, Indonesia, Hongkong, China, Saudi
Arabia, Dubai and United Arabs Emirates. The company started in the Philippines as an Ice
cream parlor and later on develop and expanded as one of the biggest fast food chain in the
Philippines competing Mcdonalds. They have the same menu as Mcdonalds but Jollibee Food
Corporation serve their products with local taste unlike Mcdonalds which brought American
taste in the Philippine market. Jollibee Food Corporation introduced fun atmosphere,
friendliness and customer focus and the joy and spirit of family while eating in their restaurants.
Jollibee developed through franchising. It is active in TV commercials, it
improve recognition through mascots and logo. It is quite popular in the
Philippines because it supports good family ties and family values which is the
most adhering qualities of Filipino families. Jollibee also supported different
charities in the Philippines and help various civil and non civil organizations.
As of 2009, Jollibee operated 686 stores in the Philippines, 355 are franchised
and 331 are company owned stores and 57 stores in international market.
MAIN BODY
A. BACKGROUND TO THE PROBLEM/ISSUE:
The research is about the success factor of Jollibee Food Corporation, a local
brand in the Philippines compare to American based fast food chain
Mcdonalds, Pizza Hut, Burger King and Kentucky Fried Chicken(KFC). This
research analyse the success factors of Jollibee Food Corporation in the
Philippines one of which is the low cost operation system of the company
compare to their key competitors. The researcher will collect some data about
the competitive strategies of Jollibee Food Corporation and how they manage
to get in to the top against giant fast food chain companies.
The researcher will analyse if the low cost operation system of Jollibee Food
Corporation is the critical factor which is responsible for the success of the
company. It is important and relevant to study the competitive strategy of the
local company in the local market against the American based company that
are established globally. The price rivalry usually makes the difference with
the fast food chain that offers great quality food and service but different in
price. Studying the critical success factor is very important for the organization
in order to know which areas they need to focus clearly to attain their business
perspectives and goals. Without analysing the areas of which they need to
focus to gain success the organization will likely failed to meet their goals and
objectives. The critical success factor drives the company's strategy to win
over their competitors. It drives the organization to access their performance
and to attain their vision and mission. It is very interesting to study the Jollibee
Food Corporation's CSF because they are number one in the Philippines, and
very successful in the market. In order for the organization to survive in the
business world, it is essential to determine their potentials and develop
strategy to compete with their competitors.
B. RESEARCH QUESTIONS AND OBJECTIVES:
What are the factor's responsible for Jollibee Food Corporation's success in
the Philippines against Mcdonalds, KFC and Burger King?
It is important to study the factor's responsible for the great success of Jollibee
in the Philippines. To know what are they competitive advantage against their
competitors mainly Mcdonalds which is known globally and already
established their company around the globe.
2. Is the low cost operating system, responsible for the success of Jollibee
Food Corporation?
It is important to explore and study if the low cost operating system of Jollibee
is the one responsible for their success or are there any other factors that are
responsible for it. The researcher needs to established the relationship of low
cost operation to organization's performance in the market.


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3. What is the franchising concept of Jollibee Food Corporation? It has
something to do with their success factors?
The researcher needs to know the background of the company, and its
relationship with the franchisees and any support to the operation of the
company. To evaluate the concept of franchising if it has something to do with
their success in the market and abroad.
4. Who are the customers and the competitors of Jollibee Food Corporation?
In business operation, it is vital to know who are the competitors in the market.
To develop the right strategy and to know their customers and the target
group in the market.
5. How is the fast food chain market in the Philippines?
To study the situation of the fast food chain in the market in the Philippines. If
there is any impact with the local and American based fast food chain.
Hypothesis:
The low cost operation system of Jollibee Food Corporation is not responsible
for the success of the company but there are many other factors contribute to
their success.
OBJECTIVES:
Examine the factors that are responsible for the success of Jollibee in the
Philippines.
What are the competitive strategy of Jollibee Food Corporation that other fast
food chain company doesnt have?
Study the target group or the consumers of the company based in the
Philippines.
Study what is the market situation in the Philippines.
To determine what the customers value in Jollibee Food Corporation
Significance of The Study
Improve the literature regarding the fast food chain in the Philippines and it's
critical success factor.
Fulfil MBA requirements.
Inform the business sector regarding the success factor of Jollibee Food
corporation in the Philippines against giant American based food chain.
LITERATURE REVIEW:
The Theories and Concepts in the Research.
1. The critical success factor analysis is a method of analysing the area that
needs improvement. It is required to ensure the success of the organization to
achieve it's mission.
It is a key area where satisfactory performance is required for the organization
to achieve it's goals. It is a means of identifying the tasks and requirements
needed for success. The critical succes factor method start with a mission
vission statement. Develop goals and their success factors.(Austin, 2002)
2. Porter's five forces- Michael Porter proposed that the organization is being
influenced by five forces. These are rivalry, supplier power, power of the
buyer, threat of entry, and the threat of substitutes. (Hollensen 2003, 74-79) .
Understanding the five forces will provide the organization to develop strategy
in order to take advantage to their competitor. (Thurlby, 1998).
It is important to know your competitors in the business industry. To know
what product and services they are offering to their customers and what
competitive strategy they are doing in order to be successful in the business.
It is also important to know your supplier. The company needs some
resources and materials in order to produce goods and products for their
consumers. There should be a good relationship between the buyer and the
supplier.
The buyer should be given importance because the business depends on how
many buyers the company have. They are the asset of the company and they
give profit to the organization. They are the one who set the price of

New competitors enter and exit the market. Some stay some will go. Some
will be successful and some are not. It is important to know what's going on to
the market. If they are new competitors that are entering, it will affect your
company's profit.
The threat of substitutes, this is important to know what other companies are
offering the consumers and find any alternative to your product and services
to make it successful.
Threats of New
Entrants
Small chicken shop
Are growing
Rivalry
Jollibee Vs
McDonalds
KFC
BURGER KING
Supplier
Power
Strength of
Network
Distribution
Buyer Power
Product cost
Against other
Alternative
Threat of Substitute
Product
Chicken shop are
More likely affordable
Fig. 1 Porter's 5 Forces Model of JFC
SWOT ANALYSIS it is a techniques of analysing the company's strength,
weaknesses, opportunities and threats. The aim of this is to identify the
internal and external factor that influences the company's objective. The
internal factors are the strength and weaknesses, and on the other hand the
external factors are the opportunities and threats.(Marketing Teacher)
POSITIVE NEGATIVE
STRENGTH
Low Cost Operation
Local Taste
First Comer's Advantage
WEAKNESS
It is franchised store so the service delivery vary
from store to store
OPPORTUNITIES
Develop high technology to make sure of good
quality products.
THREATS
Threat of new entry- small chicken shop
High Rivalry with Mcdonalds
Economic crisis- customer has less money to
spend for their meal
Fig. 2 SWOT ANALYSIS MODEL JFC
Jollibee Food Corporation's Strength are the low cost operation system. They
are selling their products in lower price compare to Mcdonalds and with local
taste. They
get the advantage of being the first comer, in the market. They enter the
market in the Philippines first in 1975, in otherhand Mcdonalds enter the
market in 1981.
The opportunities of Jollibee Food Corporation, should develop high
technology in the operation system to improve products and services they
offer to their customers. Make more innovations so that it will gain advantage
against it's competitors specially Mcdonalds that is American based company
and also known worldwide.
The weakness of Jollibee is that it is a franchised store, so the service will
vary from store to store. The quality of service depends on the employee of
the store and the franchisee.
The threat of Jollibee is the high competition against Mcdonalds, and the
threat of new entrants, there are number of small chicken shop that are
opening in the Philippines that are cheaper than Jollibee and Mcdonalds. Due
to economic crisis in the Philippines, people have less money to spend on
their meals.
7-S Framework of Mckinsey- a method of effectively organizing the company
through seven factors.
Shared values- it is the core of the company's goals and what they believe in.
Strategy- it is their method on how to reach their goals.
Structure- it is the way how each division in the company interact with one
another.
System- procedure and process that needs to be done
Staff- the employee, or the personnel in the company
Skill- the qualities and competencies of each employee in the organization.
Style- how each leader of one organization interact with their subordinate to
establish leadership. (Value Based Management)
STRATEGY
Jollibee Food Corporation's strategy are providing cheaper products compare
to Mcdonald's. The company also provide products with local taste. The
company also has alliances and acquired different fast food companies in the
Philippines which are, Greenwich (Pizza- pasta), Red Ribbon (Cakes),
DeliFrance ( Sandwiches and drinks), and Chowking ( Chinese Food).
(Jollibee The Official Website)


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STRUCTURE
The JFC is a franchise company, with 686 outlets in the Philippines and 57
stores in international market. The company are divide into different divisions.
From the President of the company, Director, Corporate strategy division,
Engineering, Human Resources, Information Management, Procurement,
Real Estate, Audit and Commissioner.
(Jollibee The Official Website)
SHARED VALUES
JFC value every Filipino family. It focus mainly in their customers and
providing fun atmosphere for every group and family who are eating in their
restaurants. They respect every individual who choose to eat in their
restaurants.
STAFF
Jollibee provide training to their employees and appraisal whenever they
improve their performance in the company. The company provide incentives
and bonuses to their staff.
SYSTEM
The franchise fee for Jollibee
P 15- 30 Million (local currency)
$ 266,455- $532, 890 ( US Dollar)
(Start up Biz Hub)
5. PEST- ANALYSIS- (STEEPLE) this is a method of analysing the political,
economic, social and technological aspect of one organization in order to
create a visible strategy. ( Value Based Management)
Political factors- create a big impact in the business operation. It includes
policies governing
tax, legal issues, and employment regulations.
Economic factors- it has a huge effect in business operation if the customers
afford to buy your product and the cost of business production, inflation rate
and exchange rate.
Social factors- it has tremendous impact in the operation, through the lifestyle
that customers create in the society. It includes family, education and religion,
age and career.
Technology- it has something to do with the new innovation that has high
impact in the business.
POLITICAL
Political issues affect the economy in the Philippines, political alliances and
employment regulation have a great impact in the operation of fast food chain
ECONOMIC
Due to economic crisis in the Philippines, some family cannot afford to buy
their meal in Jollibee.
There is a problem with the inflation rate in the country
SOCIAL
Jollibee has partnership with Department of Social Welfare helping children in
the Philippines. The company provide financial assistance with different
charities in the Philippines
TECHNOLOGY
JFC has a network of distribution facilities to supply to their stores nationwide.
Fig. 3 PEST ANALYSIS of Jollibee Food Corporation
METHODOLOGY:
RESEARCH DESIGN
The researcher will make use of exploratory research design to gather
information and knowledge about the company's background, history and
other useful information for the research. I will make use of the internet, and
other published materials such as published articles, newspaper, and journals
to gather further information.
The researcher will also use of primary research design like survey
questionnaire to gather quantitative data. The survey will be divided into two
parts. The first parts will be the questions regarding the objective of the
research and the last part will be an open ended questions regarding the
demographics such as age, sex, location, career and income.
The researcher will also make use of qualitative research method in order to
establish the relationship of one variable to another and correlates with the
theories.
SAMPLE DESIGN
The researcher will make use of non-probability sampling, in other words the
respondents are not randomly selected. The sample will be approximately
150-200 respondents. The subject or respondents are those who are willing to
take part in the research or to answer the survey questions. The focus of the
research will be the customer's of Jollibee Food Corporation in the Philippines.
The researcher will use the internet to gather information through uploading
survey questionnaires in Facebook, My space and Friendster websites.

DATA GATHERING
Data collection will be through online. Due to the location of the researcher
and the location of the market in the Philippines online surveys will be useful
and will generate faster response. The respondents will be ask to fill out the
survey questionnaires. The questionnaires will have five responses. (Strongly
disagree, disagree, neutral, agree and strongly agree.) The first part of the
survey will focus mainly on the objectives of the research. The last part will be
an open ended questions and the respondents personal data
like age, income, status, career and their location and race. Survey will be use
as it is more cheap and flexible to use for the research. Through online survey
the researcher can reach the Filipino respondents who value the Jollibee
Food Corporation. The researcher will use flow charts and diagrams to
present data.
DATA ANALYSIS
In order to measure the responses with the survey, the responses for the
survey will be code
like (1) for strongly disagree, (2) for disagree, (3) for neutral or neither agree
or disagree, (4) for agree and (5) for strongly agree. After that the likert data
will be analyse through descriptive statistics. It is an ordinal scale which
measure the level of agree and disagree and it has five responses. Therefore
we will use the non parametric test .The researcher will then summarize the
responses and present it to charts and graphs. Through responses with the
survey, the researcher will use the code for each responses to measure the
mode or in other words the most frequent responses by the samples and the
median as well to measure the central tendency.
After that, inferential statistics will be use to test the hypothesis. Kruskal Wallis
Test will be use, it is one way analysis of variance by William Kruskal and W.
Allen Wallis. (Wikipedia).Kruskal Wallis test works by substituting the data set.
It will then calculate the sum and the H is calculated as well. H is already
given in the formula representing the variance in a group. The chance of
getting the probability of a true null hypothesis, when H is evenly distributed in
chi square measure of frequency, the degree of freedom minus one is
calculated. (Handbook of Biological Statistics, 2009)
The formula for Kruskal Wallis test:
H = 12 ( Tg)2
________ ( __________ ) __ 3 (N + 1)
N (N+1) ng
After using Kruskal Wallis Test, the researcher needs to measure the level of
agree and disagree responses through chai square test. The chi square test
formula:
ef = row total x column total
______________________
over all total
Where ef = expected frequency
[ ( O E ) - ]
x ____________
E
RELIABILITY AND VALIDITY
The survey questionnaire will be test by sample respondents to test the
validity of the survey . The questions will be scrutinize and enhance to clarify
certain areas of concern. Through test run of the survey questionnaire, the
researcher can detect any errors that will affect the validity and reliability of
the survey questionnaire. The questionnaire will be enhanced and edited
accordingly based on their comments and suggestions of those who will
participate in the test run.


Reliability defines as, if the result is remains consistent, and if the result
acquired with the result can be replicated under the same methods, it is
therefore reliable.(Joppe, 2000). Test re test can be use and the same results
can be obtain, it is therefore reliable. On other hand, validity define as if the
research study really measure what it wants to measure it is therefore valid.
(Joppe, 2000). The research study is said to be valid if the measurement with
the data gathered are correct and accurate.
E. REFLECTIONS:
In keeping the integrity of the research, the researcher follow the rules and
guidelines to observed ethical regulations. All resources used for the research
such as books, journals, articles and other published materials are properly
recognized and referenced. The researcher use the Harvard referencing guide
to avoid issues of plagiarism. The information that will gather in the survey
questionnaire such as personal information of the respondents will not be
disclose and will keep it confidential. The personal details of the respondents
will be kept anonymous and confidential.
The researcher will avoid to be biased with the survey results or responses.
The responses will be collected and summarize accordingly and avoiding
wrong interpretations or reporting wrong conclusion on findings.
The researcher develop a survey questionnaire that will be uploaded online in
Facebook, Myspace and Friendster and all information that will gather with the
survey will be carefully assess and summarize the data that will be collected
and test and measure the validity and reliability.
The researcher has a limited knowledge about statistics, with the help of
SPSS software downloaded from the internet, it will help me measure
precisely the validity and reliability of the responses from the survey and use
different statistical method to measure mean, median and mode and the
standard deviation.
The method of gathering and collecting information is also limited because the
location of the research will be in the Philippines. Only online survey will be
use to get 150-200 respondents who are willing to answer the survey
questions online. Most of the respondents will be Filipino or those who live in
the Philippines who value Jollibee Food Corporation other than its competitors
like Mcdonalds.
F. TIME SCALE AND RESOURCES:
The researcher will continuously gather more information about the Jollibee
Food Corporation, the company profile, background, issues and make
extensive research about the problems through further reading of published
articles and journals and books related to the topic. The first and second week
of March will spend on working out with gathering further information and
knowledge about the research topic. Upon waiting for the result of the grades
for Research proposal, I will spend the remaining weeks to go to British
Library to access the related materials for my research topic. The survey will
be administered and uploaded online on March 25, 2011 after the result of
grades will release for the research method assignment to get some ideas
and if they are corrections with the proposals written. If the survey
questionnaire sample will need to be enhanced or edited before uploading it to
the internet. Prior to that a test run will be conducted for the survey
questionnaire to test if it is effective and will be understood by the
respondents. After uploading the survey to the internet, the researcher will
work on the review of the literature until the end of March 2011. The final
collection of survey online will be on the 1st week of April. It will then be
analyse and summarize on the same week and measure the validity and
reliability using statistical methodology. The research should be completed
before the 2nd week of April for the deadline of submission of the final
dissertation to complete my MBA degree.

Assignment was given (Research Proposal)
January 25, 2011
Deadline for Submission of Research Proposal
February 25, 2011
Visit British Library to Gather Related Information about the Topic.
March 5-12, 2011
Release of Grades for Research Methods Assignment
March 25, 2011
Survey Questionnaire will be Uploaded Online
March 30, 2011
Final Collection of Survey
April 5, 2011
Complete Analysis of Data Collected
April 8, 2011
Complete Final Report
April 15, 2011
Deadline for Submission of Dissertation
To be Posted
Fig. 4 Time Scale of the Research
CONCLUSION:
The fast food chain market in the Philippines are continuously growing and
expanding. Competitors keep on entering the market providing the same
service and products with Jollibee. But still Jollibee is the number food chain
in the country. Technologies and innovation are keep going to provide quality
products locally and abroad. The researcher suggest furthermore research
about the company's competitive strategy and other factors affecting the
company's success not only in the Philippines but still growing around the
globe. The company continuously acquiring different corporation locally and in
the international market. The researcher will continuously study about the
other factors contributing to the success of local company against the giant
fast food chain that is widely known internationally.

Blog#4 SWOT Analysis
Jollibee (philippines)
21112012
For my 4th blog i decided to SWOT about jollibee my favorite fastfood restaurant back home.
Strengths:
- Jollibee has grown exponentially on all aspects on operation.
- Superior menu line-up.
-Creative marketing programs.
- Efficient manufacturing and logistics facilities.
- It is a stronghold of heritage and monument of Filipino victory.
Weakness:
- The first name that comes to the mind of the people when someone asks about fast-food restaurant.
- The existence of other competitors.
Opportunities:
-Became the first food service company to be listed in the Philippine Stock Exchange.
-Acquired Greenwich Pizza in 1994.
- Employees received extensive training so that they could learn the corporate values of integrity and
humility.
-Free wifi
Threats:
-The rivalry between Jollibee and McDonald.
-Jollibee Foods Corporation is a family-owned chain with about P6.1 billion annual sales. It has however
captured about 52% of the Philippines market ( compared with 16% of McDonald).
-Jollibee was reported to have been using earthworms in its beef patties for many years to get customers
addicted to certain so-called chemical elements in earthworms.


Jollibee's Industry Analysis

Financial

Since its inception as a corporation in the late 70s, Jollibee has seen
strong financial growth. Asseen in the financial data provided,
Jollibees sales and revenue has been on the rise in the recentyears.
As shown in their revenues, an amount of $12.9 billion pesos in
1998 was graduallyincreased to $26.2 billion pesos in 2004, and
indicating strong growth and ability to compete inthe already dense
fast food market locally and internationally. The organization going
public onthe Philippine Stock Exchange in 1993 acts as a foundation
for the rapid expansion of its storeslocally and internationally
Organizational Design


The decentralization of its operations in 2000 enables the organization to manage
their business on a manageable scale. Four autonomous regional business units
dealing with human resources,administration, finance and network development
enabled the company to focus their operationson a corporate level and allowing the
RBUs to achieve greater efficiency.


Physical


As of June 2005, Jollibee has a total of 1200 stores locally and internationally. A
diversificationof food products enabled the organization to reach out to a variety of
customers and making themas a market leader in the Philippines. Due to the
geographical structure of the country, they are theonly fast food chain that
operated nationwide, and in some locations face no other competitions.


Risk Management


The acquisition of several new brands such as Greenwich, Chowking and Delifrance
allow thediversification of its products into different market niches. It proved to be
a hedge againstdownturns and competition and as seen in the case study, most of
the acquisitions are the leader intheir respective market segment.


Product Development

The main draw for customers into Jollibees restaurants is the appeal for local styled
food cateredto Filipinos preferences. This is evident as they are constantly adding
its product range on top of their already popular favorites menu, in order to allow
its local customers to experience thetraditional Filipino way of having local flavored
taste in a comfortable setting.


Marketing


Jollibee projects itself as being closer to Filipino families as compared to its
competitors. There isalready widespread awareness locally that Jollibee is a local
Filipino establishment, which in turnappealed to the mass population whom felt
more comfortable in a familiar setting. Tailoring itsmenu towards the Filipino taste,
it positioned itself as the favorite destination for family outings as compared to its
similar competitors.


Value Chain Analysis


Primary Activities

Outbound Logistics


Individual RBUs are able to achieve greater efficiency in the delivery of products
and services,quicker coordination, and more timely decision making due to this
decentralizing.


Marketing and Sales


Portraying itself as a fast-food outlet of high-quality at an affordable price
specifically tailored for the Filipinos, the chain has appealed to patriotic locals. With
its introduction of in-store playactivities for children and a cast of brand mascots, it
reaches and appeals to the children and isevidently more popular than its nearest
competitors. Recognizing that a normal Filipino familys weekends are normally
reserved for children, the previously mentioned activities add value to Jollibee's
position as the prime destinations for family outings.


Service


The Filipino speaking crew appeals to the locals more than its competitors where
their crew spokein English. It is also in Jollibees commitment that this service
component of their business to their customers must be fast and at the same time
being courteous.


Support Activities

Procurement


Being a major player in the Fast-food industry in Philippines, they constantly
enjoyed economiesof scale in terms of retail site selection, procurement,
manufacturing, distribution, and marketinglevels unavailable to most industry
players.


Human Resource Management


To attract the right talent and retaining of valuable staffs, the compensation and
benefits packageat Jollibee is the highest in the Philippine fast-food industry.
Employees are to undergocomprehensive training programs based on underlying
standards. Managers also received ongoingtraining in the latest operations systems
and people-management skills. Opportunities areavailable for crew members to
advance into a management role in the organization.


Firm Infrastructure


Decentralizing its organization into 4 autonomous business units, that corresponded
to thecountrys major geographical markets. This enables the Head Office to focus
its operations on thekey marketing, finance, restaurant systems and engineering
functions and act as a support andadvice to the RBUs.


Business Fundamentals Analysis


Economics

The uncertainties of competition from foreign players as well as downturns in
specific marketniches are omnipresent in our current economic nature. Other
uncertainties also come in the formof financial crisis in the region as well as in the
country it is operating in.

Stakeholders

Three groups of stakeholders of Jollibee are identified whom are affected by the
strategicoutcomes and discussed below


Capital Market Stakeholders


Jollibees capital market stakeholders include its shareholders whom have a direct
interest in thecompany. Since going public on the Philippine Stock Exchange,
Jollibee had been able to tap onthis key resource to expand its horizon within and
beyond the local Philippines market. The importance of the capital market
stakeholders is also evident in the growing operations of Jollibeeover the years.


Product Market Stakeholders



Jollibees product market stakeholders include its customers locally and globally, as
well assuppliers of its food sources.Jollibee has been able to capture the market
share of the fast food going customers due to itsunderstanding of locals
preferences and it quality and competitive pricing of its food. Anapproximate 1
million customers ate at Jollibees stores daily, making them an
importantstakeholder in this category.
The large daily requirement of food resources had enabled Jollibee to enjoy better
prices through economies of scale from its suppliers.


Organizational Stakeholders


Jollibees organizational stakeholders include its large number of employees under
its corporation(26,500 employees as of 2004), its managers and its franchisees.In
maintaining its high standards, Jollibees compensation, benefits and
comprehensive training programs ensure they have the best employees that are
available.





General Environment Analysis (PESTL)

The general environment consisting of 6 segments and the analysis of its effects on
Jollibee is as shown below.


Demographic


In the local Philippines context, the million consumers walking into Jollibees stores
dailyrepresent strong demand for its products. The uniqueness of the geographical
landscape of Philippines has also made it a challenge for fast-food companies.
Globally, there are manyFilipinos workers situated in the overseas market,
especially in the United States where there areestimated to be around 2 million
Filipino immigrants. Besides the US, many Filipinos are alsosituated in parts of Asia
such as Hong Kong, Brunei and Indonesia. Not limiting to Filipinos, their stores
have also attracted other Asians to eat at their restaurants.


Economic


The growing economic capabilities of developing countries have attracted major
players in thefast food industry to establish their stores there. Likewise for Jollibee,
the growing market possibilities in Indonesia for Chinese food enabled Jollibee to
venture into the market byintroduction of Chowking Brand. The potential China
market for fast food also led Jollibee to acquire 85 percent ownership in Yong
he King Chain.


Sociocultural


The social and cultural of each country differs from one another. For example, a
Chinese might prefer to have noodles instead of rice in Japan. In our case of
Jollibee, the langhap-sara concept adopted by them may be hugely popular to
Filipinos consumers, but this concept may not do sowell in global markets. Foreign
consumers might not like the traditional taste of Jollibees food,as compared to
bigger global players such as McDonald.


Global


The ever changing global landscape is one of the critical factors Jollibee has to
consider. Asillustrated in the case study, Philippines have seen major global players
entering the fast-foodmarket having a take on this pie. Although Jollibee have
always been the dominant in thissegment, competing in foreign markets seems to
be in a different story. Not only they have to penetrate the foreign market with
their proven and successful local recipe, they would also have tocompete against
already established players such as McDonald, Wendys and KFC.