STRATEGIC MANAGEMENT

GROUP 5

JOLLIBEE.FOOD CORP.

Members:

Jashmin Ramos

Gerzon Alexandra

Gonzales Epifania

Madeja Joan

Roldan Christian Rile

Rosales Teresito
 JOLLIBEE FOOD CORPORATION

Jollibee Foods Corporation (JFC, also known as Jollibee Group) is one of the fastest-growing restaurant
companies in the world.
It operates in 33 countries, with over 5,900 stores globally with branches in the Philippines, United States,
Canada, the People's Republic of China, United Kingdom, Italy, Spain, Vietnam, Brunei, Singapore, Saudi
Arabia, United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Indonesia, Costa Rica, Egypt, Panama, Malaysia,
South Korea, and India.
MISSION
To serve great-tasting food, bringing the joy of eating to everyone.
VISION
To be among the top 5 food companies in the world.

ORGANIZATIONAL STRUCTURE

HUMAN RESOURCE CAPACITY

 JFC operates more than 5,900 Stores Worldwide

 36,314 Number of employees
LEADERSHIP AND MANAGEMENT

Tony Tan Caktiong is the Chairman of Jollibee Foods Corporation (JFC), the undisputed leader in the
Philippine’s fast food industry. He started the business with two ice cream parlors in 1975, and created
Jollibee in 1978. Jollibee instantly became a household name in the Philippines due to its delicious products
and quality services it provides its customers.

Tony has since then built Jollibee Foods Corporation into a multi-branded restaurant company with
dominant market share leadership in the Philippines and rapidly growing businesses in 12 foreign countries
in Asia, North America and the Middle East, and is continuously expanding its presence globally.

Jollibee Foods Corporation (JFC) is a Philippines based company engaged in the development, operation
and franchising of quick-service restaurants under the brand name Jollibee .Jollibee is the largest fast food
chain in the Philippines, with over 1,150 stores nationwide. A dominant market leader in the
Philippines .According to the original website of Jollibee, Jollibee’s growth is due to its delicious menu line-
up, like its superior-tasting Chicken joy, mouth-watering Yumburger and Champhamburger, and deliciously
satisfying Jollibee Spaghetti. In addition, Jollibee orders varies from outlet to outlet. It also offers rice
menus aside from the usual burgers, pies, and pasta, chicken and beef meals. Nevertheless, Jollibee menus
are 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.
FINANCIAL PROFILE

The statement of financial position is another term for the balance sheet. The statement lists the assets,
liabilities, and equity of an organization as of the report date. As such, it provides a snapshot of the financial
condition of a business as of a specific date. Jun 22, 2022

As of December 2021, JFC operates more than 5,900 stores worldwide, with system-wide retail sales totaling
211.7 billion pesos. Jollibee Foods Corporation. Type Public Total assets ₱210.8 billion (2021) Total equity
₱74.2 billion (2021) Number of employees 36,314 (2021)
PHYSICAL INSFRACTARTURE

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

PRODUCTS AND SERVICES

Its product portfolio comprises beverages and desserts, breakfast foods, chicken, kid's meals, and snacks
including burgers, noodles, sandwiches, and slides. It also provides services including food delivery, food store
services, and event celebration

The Chickenjoy, a key product of Jollibee is a breaded crispy fried chicken meal. The meal can be ordered in a
number of different options from their menu. Examples include in by itself, with rice and gravy, with fries, with
buttered corn, or with spaghetti.

THE SWOT ANALYSIS OF JOLLIBEE IS AS FOLLOW.

Strenghts
 Quickest serving time among other food industry
 Superior menu line-up
 Creative marketing programs
 Stronghold of heritage and monument of the Filipino family and ingenuity
 Extensive training program for employees
 Distribution and sales network
 Positions in strategic locations in populated areas
 Cost-saving / systematic food preparation
 Option to deliver food to houses, offices, and other establishments
 Flexibility in preparing food time

Weaknesses
 The lack of cross-cultural management does not cater to other cultures.
 Known to serve unhealthy meals
 The limited menu ottered to consumers
Opportunities
 Continuous products and service expansion
 New markets
 Opportunities
 Adaptation of products and services to culture and tradition
 Untapped locations with little competition from other fast-food chains
Threats
 Rising costs of raw materials due to epidemics such as bird flu, and mad cow disease make procuring
materials difficult
 Growing competition
 Consumers' preference for a healthier lifestyle
 Rise in operational costs like the cost of power, utilities, etc.
 Non-compliance with sanitary standards
 High number of foreign companies entering the fast-food market vs. local brands

PESTLE ANALYSIS OF JOLLIBEE

Being the top choice of every Filipino, the Jollibee is a fast food chain in the Philippines having a network of
750 outlets nationwide. The delicious menu line up at Jollibee, clean and warm environment, provides the
customers with a memorable experience. Following PESTLE Analysis is carried out to identify the factors
which play a major role in driving the strategies and business operations of a fast food company like Jollibee.
Political Factors
 Several governments take a careful initiatives to improve the health of the people for example the
restaurants as Jollibee are required to indicate the nutritional factors for each meal they offer. The
government policies regarding the taxes can clearly affect the fast food business like Jollibee. The
company has to fulfill the requirements resulting from establishment of any political alliances. Other
political risks include the violence, corruption, war and social unrest.
Economic Factors
The economic crisis in Philippines brought changes in the economy as the decrease in consumer demand
and revenues and sales. The higher inflation rate in the country disabled many families to afford the
Jollibee products and they prefer to eat at home. The cost of exchange rates and currency fluctuations
are other factors which may have impact on the products and services of Jollibee.
Social Factors
Before entering into any new region, the fast food company carries out a careful analysis of the culture,
religion and social values. Jollibee is therefore required to provide Halaal products in countries like
KSA. Various marketing campaigns have also been launched highlighting the healthy meal options at
low cost with increasing awareness among people.

Jollibee is also providing financial assistance to various welfare organizations helping the needy
children of the Philippines.
Technological Factors
The Technology is transforming the business like a force of nature. In order to make its service more
convenient and accessible online, the Jollibee has recently centralized its express delivery service
through the Globe Telecom. The Hashtag project is another step to provide maximum customer benefit
through the technology innovation. With the changing fast food industry where customers are signing
the credit bills through the touch screen, the Jollibee business has to keep up pace for online orders.
Social media presence is a must these days.
Legal Factors
The legal regulations regarding the franchising and copyrights in any state must be adhered to carry out
a successful business operation. The corporate law and tax regulations drive the ways of conducting the
business in certain region. The employment regulations and labor laws on the other hand put pressure on

Jollibee to meet up the employee rights. With increasing obesity in the world due to the fast food
consumption, various lawsuits are also being filed in the countries like US.
Environmental Factors
The fast food restaurants are far from the green environmental approach. Huge carbon emissions are
involved in the entire process of fast food manufacturing. Jollibee like many other food chains is
therefore required to take part in several environmental and energy efficient initiatives as replanting of
trees and reduction in use of paper, computers and electrical appliances.

FIVE PORTERS

Bargaining power of Buyers

A more concentrated customer base increases their bargaining power against Jollibee Foods Corporation

Buyer power will also be high if there are few in number whereas a number of sellers (business organisations) are too many.

Low switching costs (economic and psychological) also increase the buyers’ bargaining power.
 Threats of new entrants
Competitive rivalry Entry in the industry requires
Threats of Substitutes There are only a limited substantial capital and resource
number of players in the investment. This force also loses the
A cheaper substitute market strength if product differentiation is
product/service is available from high and customers place high
another industry The industry is growing at a importance to the unique experience.
fast rate
The psychological switching costs Jollibee Foods Corporation will face
of moving from industry to There is a clear market the low threat of new entrants if
substitute products are low. leader existing regulatory framework
The products are highly imposes certain challenges to the new
Substitute product offers the same
differentiated, and each firms interested to enter in the market.
or even superior quality and
market player targets In this case, new players will be
performance as offered by Jollibee
different sub-segments required to fulfil strict, time
Foods Corporation’s product.
consuming regulatory requirements,
The economic/psychological which may discourage some players
switching costs for from entering the market.
consumers are high.
The threat will be low if psychological
The exit barriers are low, switching cost for consumers is high
which means firms can and existing brands have established a
easily leave the industry loyal customer base.
New entrants will be discouraged if
access to the distribution channels is

Bargaining power of Suppliers

Suppliers have concentrated into a specific region, and their concentration is higher than their buyers.

This force is particularly strong when the cost to switch from one supplier to other is high for buyers (for example, due to contractual
relationships).

When suppliers are few and demand for their offered product is high, it strengthens the suppliers’ position against Jollibee Foods Corporation

Suppliers’ forward integration weakens the Jollibee Foods Corporation’s position as they also become the competitors in that area.
JOLLIBEE
If Jollibee FOOD CORPORATION
Foods Corporation is not well educated, does not have adequate market knowledge and lacks the price sensitivity, it automatically
strengthens the suppliers' position against the organisation.

PESTLE ANALYSIS OF JOLLIBEE

Being the top choice of every Filipino, the Jollibee is a fast food chain in the Philippines having a
network of 750 outlets nationwide. The delicious menu line up at Jollibee, clean and warm
environment, provides the customers with a memorable experience. Following PESTLE Analysis is
carried out to identify the factors which play a major role in driving the strategies and business
operations of a fast food company like Jollibee.

Political Factors

Several governments take a careful initiatives to improve the health of the people for example
the restaurants as Jollibee are required to indicate the nutritional factors for each meal they
offer. The government policies regarding the taxes can clearly affect the fast food business
like Jollibee. The company has to fulfill the requirements resulting from establishment of any
political alliances. Other political risks include the violence, corruption, war and social unrest.
Economic Factors

The economic crisis in Philippines brought changes in the economy as the decrease in
consumer demand and revenues and sales. The higher inflation rate in the country disabled
many families to afford the Jollibee products and they prefer to eat at home. The cost of
exchange rates and currency fluctuations are other factors which may have impact on the
products and services of Jollibee.

Social Factors

Before entering into any new region, the fast food company carries out a careful analysis of the culture,
religion and social values. Jollibee is therefore required to provide Halaal products in countries like KSA.
Various marketing campaigns have also been launched highlighting the healthy meal options at low cost
with increasing awareness among people. Jollibee is also providing financial assistance to various
welfare organizations helping the needy children of the Philippines.

Technological Factors

The Technology is transforming the business like a force of nature. In order to make its service more
convenient and accessible online, the Jollibee has recently centralized its express delivery service
through the Globe Telecom. The Hashtag project is another step to provide maximum customer benefit
through the technology innovation. With the changing fast food industry where customers are signing the
credit bills through the touch screen, the Jollibee business has to keep up pace for online orders. Social
media presence is a must these days.

Legal Factors

The legal regulations regarding the franchising and copyrights in any state must be adhered to carry out a
successful business operation. The corporate law and tax regulations drive the ways of conducting the
business in certain region. The employment regulations and labor laws on the other hand put pressure on
Jollibee to meet up the employee rights. With increasing obesity in the world due to the fast food
consumption, various lawsuits are also being filed in the countries like US.

Environmental Factors

The fast food restaurants are far from the green environmental approach. Huge carbon emissions are
involved in the entire process of fast food manufacturing. Jollibee like many other food chains is
therefore required to take part in several environmental and energy efficient initiatives as replanting of
trees and reduction in use of paper, computers and electrical appliances.
 FIVE PORTERS

Bargaining power of Buyers

A more concentrated customer base increases their bargaining power against Jollibee Foods
Corporation. Buyer power will also be high if there are few in number whereas a number of sellers
(business organizations) are too many. Low switching costs (economic and psychological) also
increase the buyers’ bargaining power. In case of corporate customers, their ability to do backward
integration strengthen their position in the market. Backward integration shows the buyers' ability to
produce the products themselves instead of purchasing them from Jollibee Foods Corporation
Consumers’ price sensitivity, high market knowledge and purchasing standardized products in large
volumes also increase the buyers' bargaining power.
Competitive rivalry
There are only a limited number of players in the market
The industry is growing at a fast rate
There is a clear market leader
The products are highly differentiated, and each market player targets different sub-segments
The economic/psychological switching costs for consumers are high.
The exit barriers are low, which means firms can easily leave the industry without incurring huge losses.

Threats of Substitutes
A cheaper substitute product/service is available from another industry
The psychological switching costs of moving from industry to substitute products are low.
Substitute product offers the same or even superior quality and performance as offered by
Jollibee Foods Corporation’s product.

Threats of new entrants

Entry in the industry requires substantial capital and resource investment. This force also loses the
strength if product differentiation is high and customers place high importance to the unique
experience. Jollibee Foods Corporation will face the low threat of new entrants if existing regulatory
framework imposes certain challenges to the new firms interested to enter in the market. In this case,
new players will be required to fulfil strict, time consuming regulatory requirements, which may
discourage some players from entering the market. The threat will be low if psychological switching
cost for consumers is high and existing brands have established a loyal customer base. New entrants
will be discouraged if access to the distribution channels is restricted.

Bargaining power of Suppliers

Suppliers have concentrated into a specific region, and their concentration is higher than their buyers.
This force is particularly strong when the cost to switch from one supplier to other is high for buyers
(for example, due to contractual relationships). When suppliers are few and demand for their offered
product is high, it strengthens the suppliers’ position against Jollibee Foods Corporation Suppliers’
forward integration weakens the Jollibee Foods Corporation’s position as they also become the
competitors in that area. If Jollibee Foods Corporation is not well educated, does not have adequate
market knowledge and lacks the price sensitivity, it automatically strengthens the suppliers' position
against the organization. Other factors that increase the suppliers’ bargaining power include-high
product differentiation offered by suppliers, Jollibee Foods Corporation making only a small proportion
of suppliers’ overall sales and unavailability of the substitute products.

EXTERNAL FACTOR EVALUATION MATRIX (EFE)

INTERNAL FACTOR EVALUATION MATRIX (IFE)
(JOLLIBEE FOOD CORPORATION)
 BUSINESS STRENGTH/COMPETITIVE POSITION

WEIG
RATI HTED
KEY EXTERNAL FACTOR WEIGHT NG SCORE

STRENGTH
0.4
Strong brand identification 0.1 4
0.36
Quickest serving time among other food industry 0.1 3
0.33
Superior menu line-up 0.05 2
0.6
Creative marketing programs 0.05 2
0.52
Option to deliver food to houses, offices, and other establishments 0.1 4
0.39
Positions in strategic locations in populated areas 0.09 3
0.33
Development of Innovative New Products 0.06 3
0.16
Extensive training program for employees 0.05 2

WEAKNESS
0.3
Known to serve unhealthy meals 0.1 3
0.1
The limited menu ottered to consumers 0.05 2
0.2
A small number of stores outside the Philippines due to Filipino based tastes and branding. 0.1 2
0.1
Some branches have limited space 0.05 2
0.1
Premium price 0.1 1
3.89
TOTAL 1

OPPORTUNITIES
0.48
Continuous products and service expansion 0.12 4
0.3
New markets Opportunities 0.1 3
0.27
Adaptation of products and services to culture and tradition 0.09 3
0.48
Untapped locations with little competition from other fast-food chains 0.12 4

THREATS
Rising costs of raw materials due to epidemics such as bird flu, and mad cow disease 0.27
make procuring materials difficult 0.09 3
0.4
High number of foreign companies entering the fast-food market vs. local brands 0.1 4
0.27
Growing competition Consumers' preference for a healthier lifestylE 0.09 3
0.18
Rise in operational costs like the cost of power, utilities, etc 0.09 2
0.4
The ever increasing competition in the fast-food industry. 0.1 4
0.3
Non-compliance with sanitary standards 0.1 3
3.35
TOTAL 1
 (Internal factor evaluation total weighted score)

X AXIS- VIOLET
Y AXIS- YELLOW

STRONG AVERAGE WEAK

4.0

HIGH
WINNER WINNER QUESTION 3.0

-grow and build -grow and build

MARK
-hold and maintain
MEDIUM
WINNER AVERAGE LOSER
2.0
-grow and build - hold and -harvest or divest
maintain

PROFIT LOSER LOSER

LOW PRODUCER -harvest or divest -harvest or divest 1.0

-hold and maintain

4.0 3.0 2.0