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Approval Sheet

This Strategic Paper of JOLLIBEE FOODS CORPORATION


preferred and submitted by group
for partial fulfillment in BACHELOR IN SCIENCE AND
BUSINESS ADMINISTRATION major in FINANCIAL MANAGEMENT has been examined and
is recommended for acceptance and approval.

Dr. Isaias Borres


Adviser

The following Panelist are

Dr. Isaias Borres


Adviser

Accepted and approval in partial fulfillment of the requirements for the degree
BACHELOR IN SCIENCE AND BUSINESS ADMINISTRATION major in FINANCIAL
MANAGEMENT.

MELINDA BAUTISTA Ph.D


Dean of College in Business and Accountancy

October 29, 2010

A Corporate Strategic Paper of


Jollibee Food Corporation

Strategic Paper
Presented to the Faculty of
College of Business and Accountancy
University of Caloocan City
Camarin, Campus

In Partial Fulfillment of Requirements in the degree


Bachelor of Science in Business Administration
Major in Financial Management

Jhon Robert D. Narag


Andrew M. Nacion
Mark Joseph A. Mago
Christian Mark Cabintoy
Hermie Mary G. Cahiles
Miles P. Baliquia

ACKNOWLEDGEMENT

Making this study will not be possible without the help and support given to us by the
persons who we cherished and care the most.
To our parents, for their undying love, support and care theyve given to us. Without
them we would not have reach this far. Theyre the one whose responsible bringing us
to what we are now.
To our professor, Dr. Isaias Borres for teaching us how to be responsible in doing this
Corporate Strategy Paper and for guiding us on the right path. Without him, we may not
be able to accomplish this study with retentiveness.
To our classmates and friends from FMGT 4th year, especially to all the 2dianz for
always being there to serve us our constant companions. The things we shared are
really overwhelming that without you guys this would have been impossible. You are the
best guys!

DEDICATION

We dedicate this to all the people who become part of our life. Especially to the
persons whos always there and very supportive in all our undertakings.
Most of all, we would like to dedicate this to our Lord.

TABLE OF CONTENTS

EXECUTIVE SUMMARY

Objective

Brief Methodology

Major Findings

ii

Recommended Strategies and Policy

ii

CHAPTER I: INTRODUCTION OF THE STUDY

Background of the Study

Description of the General Context

Methodology

Scope and Limitation of the Study

CHAPTER II: THE COMPANY PROFILE


Mission/Vision

Goals

Organization Structure

History

10

CHAPTER III: THE COMPANY AND ITS EXTERNAL ENVIRONMENT


Environmental Scanning
Socio Cultural

12
12
12

Technological

13

Economic

14

Political

15

Industry Analysis

18

Bargaining power of supplier

18

Risk of entry by potential competitors

19

Threat of substitute products

19

Rivalry among established firm

19

Bargaining power of buyers

20

Competitive analysis

20

Grouping of competitors

21

Strategic mapping

24

CHAPTER IV: THE COMPANY AND ITS INTERNAL ENVIRONMENT

25

Analysis of organization structure

25

Analysis of organization culture

25

Function Analysis

26

Marketing

26

Production

29

Finance

30

Human Resource

35

Management Information Technology/IT

35

CHAPTER V: THE SWOT ANALYSIS

37

Strengths

37

Weakness

37

Opportunities

37

Threats

37

CHAPTER VI: THE CORPORATE STRATEGIES

38

Grand strategies

38

Generic strategies

39

Functional strategies

40

CHAPTER VII: RECOMMENDATION

41

CHAPTER IX: CONCLUSION

42

BIBLIOGRAPHY

43

Executive Summary

Objectives
The importance of this study is to give an idea about why Jollibee Food
Corporation to be the best tasting QSR in the Philippines. Now a days JFC plays a big
part in choosing what is the best fast food chain to be chosen by the Filipino community.
And also in order for us to be knowledgeable why it is the no. 1 fast food even though
theres a lot of foreign resto existing like McDonald in our country.
This study is conducted to be able to know what is the strategic plan used by
JFC to be survive even there is economic crisis and also to helps other entrepreneur on
how to operate their own business effectively.

Brief methodology
We conducted this research study by searching the official website of Jollibee
Food Corporation on www.jollibee.com.ph for some important information regarding on
their current status, their history, and achievements. Some other data had been
gathered by doing some interview on their former JFC crew for their previous
experience working in Jollibee.
For their current financial status we got their financial statement to Security and
Exchange Commission which is JFC is registered. We also tried to be their customer for
us to observe and to find some improvement needed by JFC.

Major findings
The Jollibee Foods Corporation is holding the biggest market share when it
comes in food industry and because of this many company are rising and now entering
the market. The taste preferences of their customer changes and if make an action into
it, they may loss some of their customer. At present Jollibee only have 600 stores
nationwide and international compare to Mc Donalds, Jollibee Foods Corporation is
outnumbered when it comes in their stores.

Recommended strategies and policy


In order to be on the top, Jollibee Foods Corporation must do or apply this
recommendation such as:

Maintain the Filipino values by keeping Jollibee Food Corporation a Filipino own
company.

Encourage Franchisee not only in the Philippines but also abroad.

Its time for them to target the higher class in the society.

Think of new and innovative product.

Maintain tight monitoring when it comes to their competitor and new entrants.

CHAPTER I
Introduction of the Study
Background of the study
This chapter discusses the essential factors that made the Jollibee Foods
Corporation to be the best quick serving restaurant in the Philippines and abroad.
It also discusses how the study was undertaken using the appropriate research
method.

Description of the general context in which the problem is to be viewed and


discussed:
Jollibee Foods Corporation (PSE: JFC) is the parent company of Jollibee a fastfood restaurant chain based in the Philippines. Among JFC's popular brands are
Jollibee, Chowking, Greenwich, Red Ribbon, and Manong Pepe's. Since its inception,
Jollibee has become an increasingly profitable fast-food chain with 686 restaurants in
the Philippines and 57 in other countries employing 29,216 workers. Including all its
brands, JFC has 1,804 stores worldwide and total sales of more than US$1 billion as of
December 2008.

Undisputed leadership
As the country's leading fast food chain, Jollibee has grown exponentially on all

aspects on operation. From a handful of stores 32 years ago, Jollibee now boasts of
more than 600 stores and over 50 international stores.
Expanding market coverage
To achieve its long-term goal to be the countrys food service leader, Jollibee
acquired Greenwich Pizza in 1994. A year later, the company obtained the franchise of
Delifrance, an international food company. These moves expanded Jollibees
penetration in the pizza-pasta and French cafe-bakery segments. In 2000, the strategic
acquisition of Chowking solidified the companys position as the dominant leader. The
move gave it leadership in the Oriental quick-service restaurant segment.

Recipe for success


Jollibees rapid growth is due to its superior menu line-up, creative marketing
programs, and efficient manufacturing and logistics facilities. It is made possible by welltrained teams that work in a culture of integrity and humility, fun and family-like.
As a corporate citizen, Jollibee is also committed to give back to its host
communities through meaningful and lasting socio-civic projects.

A triumph for and of the Filipino


Jollibee dedicated its continuous success to the Filipinos who have been there
from the very start.
Jollibee is so well-loved every time a new store opens, especially overseas;
Filipinos always form long lines to the store. It is more than home for them. It is a
stronghold of heritage and monument of Filipino victory.

Expansion and acquisitions


The company acquired 80% of Greenwich Pizza in 1994, enabling it to penetrate
the pizza-pasta segment. From a 50-branch operation, Greenwich has established a
strong presence in the food service industry. In early 2006, Jollibee Foods Corp. bought
out the remaining shares of its partners in Greenwich Pizza Corp., equivalent to a 20%
stake, for P384 million in cash.
In 2000, the company acquired Chowking, allowing Jollibee to be part of the
Asian quick service restaurant segment. In 2007, Jollibee acquired the Chinese fastfood chain Hongzhuangyuan.
Jollibee purchased 70% of Taipei restaurant Lao Dong in June and Chun Shui
Tang tea house in 2006. In 2004, Jollibee acquired Chinese fast food chain Yonghe
Dawang for $22.5 million. Jollibee entered into a joint-venture contract with US-based
Chow Fun Holdings LLC, the developer and owner of Jinja Bar Bistro in New Mexico, in
which Jollibee will have a 12% stake for $950,000.

Products and locations


Jollibee is an American-style fast-food restaurant with Filipino-influenced dishes
specializing in burgers, spaghetti, chicken and some local Filipino dishes. In the
Philippines, Jollibee serves Coca-Cola products for its beverages; in overseas markets,
the chain serves Pepsi products.

Currently the largest fast-food chain in the country, it also has locations in
the United States, Saudi Arabia, Hong Kong, Vietnam,
Malaysia, Indonesia, Dubai and Brunei.
Mascot
Jollibee, the large bee mascot dressed in a blazer, shirt, and chef's hat
introduced by the brand in 1980 is probably the most widely recognized character in the
Philippines. Other characters have been phased out by late August 2010.

Name
Jollibee

Year introduced
1980

Represents
Main franchise mascot

Field
Leader of Jollibee

Chickee 1987 & 1993, discontinued Chickenjoy


Lady
1993, discontinued

Milkshakes

Mico

1985, discontinued

Milkshakes

Champ

1984, discontinued

Champ Premium hamburger

Hetty

1984

Jolly Spaghetti

Cheerleader

Twirlie

1988

Jolly Twirl

Singing & Dancing

Popo

1985

Jolly Crispy Fries

Games & Sports

Yum

1989

Yumburger

Hi-Technology

Moo

Objective of the Study

The importance of this study is to give an idea about why Jollibee Food
Corporation to be the best tasting QSR in the Philippines. Now a days JFC plays a big
part in choosing what is the best fast food chain to be chosen by the Filipino community.
And also in order for us to be knowledgeable why it is the no. 1 fast food even though
theres a lot of foreign restaurant existing like McDonald in our country.
This study is conducted to be able to know what is the strategic plan used by
JFC to be survive even there is economic crisis and also to helps other entrepreneur on
how to operate their own business effectively.

Methodology
Sources and data gathering procedures:

www.sec.gov.ph and going to its main branch for issuance of the


recent copy of financial statement of Jollibee Food Corporation.

www.jollibee.com.ph- for their general context regarding on their


establishment, its history and other information about the firm.

Jollibee SM Fairview, Pasong Putik, Novaliches,Quezon City

Former Crew of JFC


-

Andrew Nacion

Miles Baliquia

Hermie Mary Cahiles

Mark Joseph Mago

Scope and Limitation of the Study

This study has mainly focuses about the JFC strategic plan and its overall
operation. Certain researches are being conducted and made to know the factors that
would help the Jollibee to remain at the top.
It involves individuals, organizations and other groups to acquire essential
information that helps our researchers in generating facts needed in this study.
It also emphasized studies from its history, achievement and other information
related to its aggregate internal and external operations.
This study is mainly focuses about the JFC strategic plan.

CHAPTER II

The Company Profile


This chapter discusses that Jollibee Foods Corporation is a customer focused
and quick serving restaurant which strictly emphasizes its companys Mission, Vision
and Goals. Organizational structure plays a vital role on achieving the companys
objectives. It serves as the basic guideline and framework of the firm.

MISSION:
To serve great tasting food, bringing the joy of eating to everyone.

VISION:
We are the best tasting QSR..
The most endearing brand...
that has ever been...
We will lead in product taste at all times...
We will provide FSC excellence
in every encounter...
Happiness in every moment...
By year 2020, with over 4,000 stores worldwide,
Jollibee is truly a GLOBAL BRAND. (And the Filipino will be admired worldwide)

GOALS:

JFC is set achieve its vision of becoming a leading shared services organization,
creating value to business partners through customer focus, cost leadership and
organizational excellence the very same competencies that has brought JFC to its
leadership position today. Our mission, vision and strategies cannot be achieved if we
are not guided by the principles that have shaped the Jollibee corporate culture and
made it a living testament to Filipino excellence.

ORGANIZATION STRUCTURE:
Tan, Caktiong
Chairman of the Board, President, Chief Executive Officer
Baysa, Ysmael
Chief Financial Officer, Vice President for Corporate Finance, Compliance Officer
Fermin, Isaias
President - Greenwich Business, President - Chowking Philippines
Tanbuntiong, Joseph
President - Red Ribbon Philippines Business Unit
Tanmantiong, Ernesto
Chief Operating Officer, Executive Vice President, Treasurer, Director
Tan, Untiong
Vice President for Real Estate, Corporate Secretary, Director
Gomez, Daniel
Vice President of Corporate Marketing

Tence, John
Vice President - Corporate Human Resources
Elechicon, Erwin
Head of International Business Development for India and Indonesia
Ang, Cho Sit
Director
Chua, Poe Eng
Director
Alfonso, Felipe
Independent Director
Jacob, Monico
Independent Director
HISTORY (Establishment):
In 1975 Tony Tan Caktiong and his family opened a Magnolia Ice Cream
parlor in Cubao[4] with Jolibe as the original name. Sometime in 1978, Caktiong and his
brothers and sisters engaged the services of a management consultant, Manuel C.
Lumba. Lumba shifted the business focus from ice cream to burgers, [3] after his studies

showed that a much larger market was waiting to be served. Lumba became Caktiong's
first business and management mentor. Lumba next re-formed the name Jolibe to Jolly
Bee and made the two words form a single name, Jollibee, changing the "y" to an "i".
The Jollibee mascot was inspired by local and foreign children's books. Lumba next
created the product names "Yumburger" and "ChickenJoy". He had the company
incorporated and leased a house on Main St. in Cubao, Quezon City as the first
headquarters. Lumba formulated a long-term marketing strategy: listing up a number of
consumer promotions and traffic building schemes. Caktiong stressed that developing
internal strengths was critical. The stores were re-designed, the service transformed
into a full self-service, fast-food operation with drive-throughs. Not long after, Caktiong
and Lumba went on an observation tour in the United States, attended food service and
equipment conventions. Caktiong placed Lumba in charge of franchise development.

Definition of terms:
QSR Quick Serving Restaurant
FSC Food,Service and Cleanliness
USP Unique Selling Proposition
(m)SRP Manufacturing Suggestive Retail Price

Risk unfortunate events that might give loss to the firm


Franchise generally means a right or priviledge
Drive- thru - is a type of service provided by a business that allows customers to
purchase products without leaving their cars.
Self service - is the practice of serving oneself
Part time Job is a form of employment that carries fewer hours a week than a fulltime job.

CHAPTER III
The company and its External Environment
This chapter shows that Economic forces brought tremendous impact in every
company. Several factors such as Environmental Scanning, Industry Analysis and
Competitive Analysis gradually affect the outcome of the business.

Environmental Scanning
Socio-cultural:
We all know that Jollibee Foods Corporation is one of the well-known companies
not only in the Philippines but internationally. They serve great tasting food as well as
their services given to their customers.

Customer- focus is one of the values of every Jollibee Foods

Corporation member to delight the customer by giving the best Food and
Service with passion.

Teamwork- one of the reasons why Jollibee Foods Corporation was

a very successful firm is because they work as one body. They have their
one mission and they work for their vision so that being on the top is not
that hard for them to work for.

Spirit of family and fun- to be a great leader you should be a good

follower, same thing as, listening is the first step to learn, so that for them it
should be a great thing to improve what they had and to reach the
success.

Honesty and integrity- Honesty is the best policy, we all know that

honest in everything we did will give the best for us. JFC also think of this.

Technological:
Thanks to the Jollibee Commissary System, ensuring the manufacture and
distribution of safe and high- quality food in the most cost-efficient manner is made
possible.
There are three Commissary System sites: Santolan, Pasig City; Mandaue City,
Cebu; and the central site in Canlubang, Laguna. The System, which operates 24/7,
manages

Jollibees

total

supply

chain

process.

The chicken marination line can produce as many as 150,000 pieces a day while about
480,000 hamburger patties a day is turned out by the frozen patty line. The breadline is
designed to match the volume output of patties, i.e. also about 480,000 pieces a day.
The pie line can produce as much as 157,000 pocket pies in a 20-hour operating day.
Currently, pies are exported to Jollibee stores in Hong Kong, Guam, Saipan, Brunei,
and the USA. Various sauce products are processed in the ZFC sauce line including
those

for

the

Jollibee

bestsellers,

spaghetti

and

palabok.

A professionally staffed Technical Services Team supports the maintenance of an


internationally accepted quality management system that further ensures the quality and
safety of the commissary manufactured food products. High caliber teams from
Engineering, Human Resources, Information Management, Finance and Accounting
likewise provide support to the Manufacturing and Logistics operations of the
Commissary.

Economic:
Jollibee Foods Corporation hires at least high school graduates to be their crew
members. Work is at least 4 hours a day and payment is per hour basis. You can
arrange for time arrangement that is most convenient with your schedule. You can
check the website of Jollibee for job openings or you can visit the stores and ask the
crew members there if they are hiring new crew members. Most crew members of fast
food restaurants are working students.
A part-time job is a form of employment that carries fewer hours per week than
a full-time job. Workers are considered to be part-time if they commonly work fewer than
30 or 35 hours per week. According to the International Labor Organization, the number
of part-time workers has increased from one-fourth to a half in the past 20 years in most
developed countries, excluding the United States. There are many reasons for working
part-time, including the desire to do so, having one's hours cut back by an employer and
being unable to find a full-time job. "Part-time" can also be used in reference to
a student (usually in higher education) who takes only a few courses, rather than a full
load of coursework each semester.
People with a single part-time job fall into a number of categories. According to
the Colorado Independent, many people with a single part-time job fall in to the category
of being underemployed. People who are underemployed usually do not make enough
to meet basic needs and, therefore, do not make positive contributions to the economy.
Large numbers of underemployed people make a significant contribution to economic.

Political:
Jollibee Foods Corporation always maintains safeties when it comes to their food
to be served to their customer.
Food safety is a scientific discipline describing handling preparation, and storage
of food in ways that prevent food borne illness. This includes a number of routines that
should be followed to avoid potentially severe health hazards. Food can transmit
disease from person to person as well as serve as a growth medium for bacteria that
can cause food poisoning.
Rep. Santiago, in filing HB 3799, is primarily concerned about the ill-effects of
food products containing genetically modified organisms (GMOs) on human
health. Consumers have the right to know whether the food they purchase contains or
was produced with genetically engineered material. The bill also seeks to establish
quarterly inspection and oversight procedures to effectively monitor if each food
processing facility is adopting measures to minimize or eliminate identifiable health
hazards.
SENIOR CITIZEN DISCOUNT
Article 9. NO DOUBLE DISCOUNTS In the purchase of goods and services
which are on promotional discount, the senior citizen can avail of the establishments
offered discount or the 20% discount provided herein, whichever is higher and more
favorable.

In cases where the senior citizen is also a person with disability (PWD) entitled to a 20%
discount under his/her valid PWD identification card (ID), the senior citizen shall use
either his/her OSCA-issued ID card or PWD ID card to avail of the 20% discount.
BUSINESS PERMIT
Before the operations of every business they need to be registered first, the
same as to the established business like Jollibee Foods Corporation.
Now a day a lot of business enterprises arose in our country. Handling a
business is not a problem for those entrepreneurs but to regulate their business they
must meet the following requirements to legally operate in the Philippines.

DTI - "Department of Trade and Industry" Certificate of Business Name


Registration

SEC Registration "Philippines Securities & Exchange Commission" Certificate of Incorporation

BIR "Bureau of Internal Revenue" Registration

Business Permit / Mayor's Permit

SSS Registration / Philhealth Registration / Pag-ibig Registration

SRP
The manufacturer's suggested retail price ((M)SRP), list price or recommended
retail price (RRP) of a product is the price which the manufacturer recommends that the
retailer sell the product. The intention was to help to standardize prices among
locations. While some stores always sell at, or below, the suggested retail price.
Department of Trade and Industry is the regulator of SRP here in the Philippines.
MINIMUM WAGE
Jollibee Foods Corporation follows the same daily minimum wages rates
implemented by Department of Trade and Industry.
When it comes to wages distribution, there are different values in urban and in
rural areas nationwide.
DAILY MINIMUM WAGE RATES
National Capital Region (NCR) a/
Per Wage Order No. NCR-15 b/
Effective 01 July 2010
Minimum Wage
Basic Wage
New
under Wage
Increase Under
Minimum
Order No. NCR
W.O. No. NCR 15 Wage Rates
Sector/Industry
14
Non-Agriculture
P 382.00
P22.00
P 404.00
Agriculture (Plantation and
P 345.00
P22.00
P 367.00

Non Plantation)
Private Hospitals with bed
P 345.00

P22.00

P 367.00

P 345.00

P22.00

P 367.00

P 345.00

P22.00

P 367.00

capacity of 100 or less


Retail/Service
Establishments employing
15 workers or less
Manufacturing
Establishments regularly
employing less than 10
workers

Industry analysis
Bargaining Power of Suppliers:
Jollibee Foods Corporation has been proven to be the market leader on quick
serving industry for several of decades now. Hence, several numbers of suppliers are
pooling around to compete on this industry specifically on meat and soda distributions.
Suppliers of JFC have a strong bargaining power over any other quick serving
restaurants because it generates larger sales volume and continuous purchasing cycle.
As a result, JFC can choose among other alternative suppliers which offers lower
prices but of the same product standard.

Risk of entry by potential competitors:

Risk in entering new entrants may cause additional problem for the firm, it will
decrease the sales and other possible big effect to the normal operation of the
business. It also causes additional choices for the customer especially when the new
entrants have the same in line of business operation. Some of this potential competitor
might used strategies like lower their price compare to the price implemented by JFC.
One of the best examples of this is those small food carts and some other food
franchise establishment which is located in public places and malls.
Threats of Substitute Products:
Differentiated products are necessary to cater different segments and to retain
the interest of the existing customer share. Retaining the existing market share and
expanding market share both require differentiation in terms of variety of food provided
in the menu.
Rivalry among established firm:
JOLLIBEE vs. McDonalds
The rivalry between Jollibee and McDonalds looks likes no contest. McDonalds
has more than 31,000 outlets in more than 100 countries out of which 3,000 outlets are
in Asia. Jollibee has only 600 outlets and over 50 international outlets. But despite these
numbers, Jollibee has captured 65% share of the hamburger market in the Philippines.
Its revenue are growing rapidly and they claim that they are the undisputed leader of the
fast food market in the Philippines. Jollibee concentrates on serving the unique tastes of

the Filipino consumer whereas McDonalds exports largely standardized fare to


consumer around the world.
Bargaining Power of Buyers:
The major customers of Jollibee Foods Corporation are the markets segments
which are normally comprised of families and working individuals.
These buyers participate in the industry by forcing down the prices, negotiate for higher
quality and allow the competitors play against each other.
Buyers of JFC have a strong bargaining power over other quick serving
restaurants because the products offered by the company are largely standard and
undifferentiated.
As a result, buyers can choose a quick serving restaurant that offers high quality
products at reasonable cost.
COMPETITIVE ANALYSIS

Grouping of competitors:
McDonalds Corporation Company Profile
McDonald's Corporation is the world's largest chain of hamburger fast food
restaurants, serving more than 58 million customers daily. In addition to its signature
restaurant chain, McDonalds Corporation held a minority interest in Pret A Manger until
2008, was a major investor in the Chipotle Mexican Grill until 2006, and owned the
restaurant chain Boston Market until 2007.
A McDonald's restaurant is operated either by a franchisee, an affiliate, or the
corporation itself. The corporation's revenues come from the rent, royalties and fees
paid by the franchisees, as well as sales in company-operated restaurants. McDonald's
revenues grew 27% over the three years ending in 2007 to $22.8 billion, and 9% growth
in operating income to $3.9 billion.
McDonald's primarily sells hamburgers, cheeseburgers, chicken products, french
fries, breakfast items, soft drinks, shakes, and desserts. In response to obesity trends in
Western nations and in the face of criticism over the healthiness of its products, the
company has modified its menu to include alternatives considered healthier such
as salads, wraps and fruit.
KFC CORPORATION
KFC Corporation, based in Louisville, Kentucky, is the world's most popular
chicken restaurant chain, specializing in Original Recipe, Extra Crispy, Kentucky
Grilled Chicken and Original Recipe Strips with home-style sides, Honey BBQ Wings,
and freshly made chicken sandwiches.

Every day, more than 12 million customers are served at KFC restaurants in 109
countries and territories around the world. KFC operates more than 5,200 restaurants in
the United States and more than 15,000 units around the world. KFC is world famous
for its Original Recipe fried chicken -- made with the same secret blend of 11 herbs
and spices Colonel Harland Sanders perfected more than a half-century ago.
Customers around the globe also enjoy more than 300 other products -- from Kentucky
Grilled Chicken in the United States to a salmon sandwich in Japan.
KFC is part of Yum! Brands, Inc., the world's largest restaurant company in terms
of system restaurants, with more than 36,000 locations around the world. The company
is ranked #239 on the Fortune 500 List, with revenues in excess of $11 billion in 2008.
MANG INASAL
Mang Inasal is proud to do its share in alleviating the unemployment burden of
the country.
It is effectively stimulating economic activities in communities where branches
are situated. Local suppliers of calamansi, charcoal, banana leaves, sorbeteros,
vegetables, fish, bamboo sticks, and other ingredients, as well as LGUs, trisikad
(pedicab) drivers, and a host of other enterprises are benefited by the presence of Mang
Inasal in their area.
Mang Inasal has steadily grown since it offered franchising. Mang Inasal has
branches in Bacolod, Iloilo, Roxas, Metro Manila, Cebu, Davao, Kalibo, Tarlac, Boracay,
Antique, Mindoro, Batangas, Pampanga, General Santos, Tuguegarao, Iligan, Bulacan,
Cavite, Baguio, Laguna, Panabo, Cagayan De Oro, Lucena Surigao, Palawan, Agusan

Del Sur, Malabon, Zamboanga Pagadian, Koronadal, Rizal, Pangasinan, Dipolog, La


Union, Ozamiz, Kabankalan As of today, Mang Inasal has 294 branches nationwide and
counting.
In Mang Inasal, Pinagsikapan naming laging mabilis, laging masarap, at laging
abot-kaya so that the Pinoy can truly say, Kumbinsing!

Strategic mapping

JFC also want to provide value adding services in the areas of accounting,
finance and HR; employing highly efficient people, systems and process that allow them
to deliver and exceed customer expectations; and offering competitive costs in the
shared service industry through these strategies, they enable the client the JFC Foods
Companies to efficiently operate in the global market effectively collaborate w/
business partners and help employees to be more productive.

CHAPTER IV
The Company and its Internal Environment
This chapter discusses that aside from the economic forces, internal factor that
comprises a company. Marketing, Production, Finance, Human Resource and
Information Technology construct the companys functional analysis.

Analysis of Organization Structure


The famous quotation of the JFC Bida ang Saya is completely shown in the
whole organizational structure of the Jollibee. From the color of the sign JOLLIBEE in
every store, red is known for joy and good luck. The cheerful service crews who never
forget greeting every customer entering and leaving the store. The sculpture of Jollibee
a red bee with big smile and wide open arms saying welcome to Jollibee brings smile
and joy to every people looking at him. Lastly, the delicious taste of their foods and

accommodation measures. Jollibee means people working as busy as bee. But this bee
is working with joy in their face.

Analysis of organization culture


The Jollibee Foods Corporation concentrated and focused on the Philippines
tradition and culture which lead them to success and progress. JFC caught Filipinos
hearts by serving delicious foods in accordance to Pinoy taste. The love of the Pinoy
in the entertainment value were also given importance by JFC therefore, they decided
to introduce their charming mascots like Hetti, Yum and specially Jollibee. These
characters gave them the opportunity to advertise their products. Filipino core values
are shown to every customer for them to feel the hospitability and warm acceptance of
every Jollibee store. Jollibee also offer cater and party service because they knew the
love of every Filipino to parties and celebration.

Functional analysis
Marketing:
Jollibee depends on high customer traffic and tight operations management. It
offers great
Service to high volumes of people who patronize its outlets by functioning as a
well-oiled machine with close tabs on daily operations.
Jollibee focus:
USP
The unique selling proposition of the Jollibee brand is:

1. Fast, good, clean, cheap food


2. Caters to local needs (spicy needs)
3. Consistency, reliability over all its outlets.
Positioning:
Ensuring high traffic needs an emphasis on store location and positioning
Jollibee in the minds of the consumer as a place that they would enjoy eating fast food.
This entails proper branding and positioning of the service offered. Jollibee also
projected itself as world class and not a local brand.
The service that is offered should be consistent over all Jollibee stores, however
this might be a problem as the division has been slimmed recently and resources might
be stretch too far.

Product:
The product offered by Jollibee appeals to the Filipinos taste for spicy burgers.
By concentrating its resources on satisfying the Filipino palate, Jollibee has been able to
serve localized dishes that are unlike any found in the other fast food chains in the
Philippines. In addition to offering the usual French fries that accompany the meals
found in McDonalds, KFC, Burger King and so forth.
Jollibee also serves rice or spaghetti, Filipino style. Even the burgers are cooked
exactly as Filipinos want them done-sweeter and with more seasonings, often likened
to what a Filipino mother would cook at home.

Menus in outlets across the globe adjusted to local preferences to differentiate it


from other standardized players like McDonalds and KFC who maintain the same
menus worldwide with minimal changes.
Jollibee even incorporated recipes from employees to truly capture local tastes.
McDonalds entered the Philippine market in 1981 and many assumed the Big
Mac would soon dominate the market. Surprisingly, McDos ended up getting stung
by the bee. Jollibee has secured a 65% market share and is out pacing McDonalds
at its own game. Jollibee accomplished this by local adaptation of the menu and by
positioning the food chain as a family restaurant.

Place:
The location of outlets is of key importance to the marketing strategy of Jollibee.
For Example, the outlet in Hong Kong is located at Central where a large number of
Filipinos gather.
Promotion:
Local brands: Brands in local market are strong contenders and are not to be
Under estimated. Local managed brands like Jollibee in the Philippines often have the
advantage of intimate knowledge of consumer tastes and consumer preference
through local pride.
Jollibee used the wave of nationalist pride to promote a Filipino brand of
hamburger.
This strategy met with great success.

Investing in socio-civic programs designed to serve its host


communities further secured Jollibees position as a Filipino
company for the Filipino. Advocacy campaigns such as the early
Christmas drive ma-Aga ang pasko sa Jollibee, again endorsed by
Aga Mulach, the poverty housing project with Habitat
for Humanity, and the Kaya Mo Yan Kid or You can do it, kid!
Campaign to encourage kids to show their potential contributed to
the companys overall success, not only with its customers but with
all its stakeholders.

Production:
There are three Commissary System sites: Santolan, Pasig City; Mandaue City,
Cebu; and the central site in Canlubang, Laguna. The System, which operates 24/7,
manages Jollibees total supply chain process.
The Jollibee Pasig City commissary has production lines for breads and sauces,
and is the distribution center for North Manila and North Luzon. In 1996, Jollibee
opened the Vismin Foods Corporation (VFC) in Mandaue City, Cebu to service the
Visayas and Mindanao areas. VFC has its own bread, pie, sauce, and frozen patty
lines.
The Laguna commissary is the biggest and most advanced in the country and
among Asias best. Operated by Zenith Foods Corporation (ZFC), a full subsidiary of
Jollibee, the newest commissary is on a 6-hectare property in the Calmelray Industrial

Park. Aided by custom-made mechanized equipment, the production lines are for the
marinated Chicken Joy, frozen patties and pies, breads, sauces, hotdogs and other
meat products, and dry blended goods. ZFC can service over 800 Jollibee and
Greenwich stores.
A professionally staffed Technical Services Team supports the maintenance of an
internationally accepted quality management system that further ensures the quality and
safety of the commissary manufactured food products. High caliber teams from
Engineering, Human Resources, Information Management, Finance and Accounting
likewise provide support to the Manufacturing and Logistics operations of the
Commissary.
Finance:
2008

2009

LIQUIDITY RATIO
Acid Test Ratio

= Current Asset- Cash


Total Current Liabilities

= 10,687,259,116 955,399,559 =

1.99 or 199 %

4,885,529,898

=12,706,409,627578,747,371
5,060,348,018

2.40 or 240%

IMPLICATION: Acid test ratio and Current ratio states that JFC is liquid and has the
ability to meet its current obligations when the time they fall due. It also shows that they
have enough cash when it comes in paying debt.

2008

Current Ratio

2009

Total Current Assets


Total Current Liabilities

10,687,259,116

2.19 or 219%

4,885,529,898

12,706,409,527
5,060,348,018

2.51 or 251%

IMPLICATION: Acid test ratio and Current ratio states that JFC is liquid and has the
ability to meet its current obligations when the time they fall due. It also shows that they
have enough cash when it comes in paying debt.

Earnings per Share of Common Stock =

Net Income After Tax


CommonStockOutstanding

1,791,201,604

1.45 or 145%

1,040,005,488

2,642,819,193

2.14 or 214%

10,514,581,561

IMPLICATION : Earnings per share measured the amount of returns on each share of
common stock. Figures show that in 2008, the return on share of common stock is 1.45
and increases as the year 2009 ended.

Return on Investment =

Net Income After Tax


Total Asset

1,791,201,604

0.085 or 8.5%

21,077,948,121

2,642,819,193

0.1135 or 11.35%

23,281,239,667

IMPLICATION: Return on investment measures the profitability of the business firm.


Figures show that in year 2008, 8.5% is the rate of ROI and increases up to 11.35% as
the year 2009 ended. JFC can attract more investor if they maintain a high percentage
rate.
Return On Asset =

Net Income After Tax


Total Asset

1,791,201,604

0.085 or 8.5%

21,077,948,121

2,642,819,193

0.1135 or 11.35%

23,281,239,667

IMPLICATION: Return on investment measures the profitability of the business firm.


Figures show that in year 2008, 8.5% is the rate of ROI and increases up to 11.35% as
the year 2009 ended. JFC can attract more investor if they maintain a high percentage
rate.

Return on Equity =

Net Income After Tax


Stockholders Equity
=

1,791,201,604

0.14 or 14%

12,999,751,991

2,642,819,193

0.17 or 17%

15,177,607,558

IMPLICATION: Return on equity measures the profit efficiency of the equity of the
stockholders. Figure show that in year 2008, 14% return on equity has been recorded
and increases up to 17% as year 2009 ended. This rate is favorable on the part of the
stockholders.

Return On Sale =

Net Income After Tax


Sales
=

1,791,201,604

0.090 or 9%

19,812,420,160

2,642,819,193
22,566,682,614

0.117 or 11.7%

IMPLICATION: Return on sales measures net earnings for every peso of sales and also
measures the ability of the firm to control expenses. The higher the earnings on sales,
the more efficient is the firm in sustaining its expenses in monitoring its expenses but in
year 2009, it increases up to 11.7%. It shows that JFC has higher expenses but a good
income.

Human resource:
Jollibee Foods Corporation is now the #1 EMPLOYER IN THE PHILIPPINES
Cited by the Far Eastern Economic Review. They are now globally known, because JFC
is the only Philippine company in the list of ASIAS BEST EMPLOYERS, they ranked
#16 and the No. 1 in "OVERALL LEADERSHIP" among the top 10 Philippine companies
doing business in Asia.
This recognition is not only because they are the best in the business but also
the fact how they handle their people. The management down to the lowest position
plays a big role in JFCs success. They give right training for their workers in order to
have the expertise in their field in order to give the 100% satisfaction to their customers.
The people are their strength and in return they give a payback to them. They
ensure the security of the employee; as a matter of fact JFC is a member of some

insurance company. They dont hesitate to give promotions, sending their employee
abroad. JFC help their employee to change their life, being part of Jollibee team is
chance to improve ones personality, and a way to earn money.
Management information system/ information technology:
A management information system (MIS) is a system or process that provides
information needed to manage organizations effectively. JFC use this kind of
technologies such as (POS system) in order to lessen the burden of having a manual
system.

In the fast food industry, registers may be at the front counter, or configured for
drive through or walk through cashiering and order taking. Nowadays a cash register is
nothing vs. POS system. JFC use this kind of technology for having a fast service.

And because of technology credit cards is now acceptable as a payment in every


transaction of their customer. Jollibee is now embracing the modern way in operating
the business. In order to have fast and quality service to their customers.

CHAPTER V
The SWOT Analysis
This chapter discusses the companys Strengths and Weaknesses, both external
and internal environment. Hence, several threats and opportunities arise which help the
company realizes possible expansion or improvements.

Strengths

Weakness

Well developed strategy

Obsolete, narrow product lines

Manufacturing competence

Rising manufacturing costs

Good marketing skills

Poor marketing plans

Human resource competencies

Poor materials management

Brand name reputation

Loss of customers good will

Ability to manage strategic change

Inadequate human resources

Opportunities

Threats

Exploit new market segments competition

Increase foreign competition

Widen product range

Change in consumer taste

Extend cost or differentiation advantage

Rise in new or substitute

Diversity into new growth business

New forms of industry

Enter new related business

Turn down economy

Overcome barriers to entry competition


CHAPTER VI
The Corporate Strategies
This chapter represents different alternatives, strategies that help the company to
cope up with the growing market and technological innovations. Corporate strategies
enable the firm to adopt with the changing trends, needs and wants of people.
Grand Strategies
Jollibees decide to expand globally seemed to have been necessitated partly by
the economic recession plaguing South East Asian countries in the late 1990s. while

McDonalds decide to slow down within the Philippines, Jollibee seemed to have
adopted a dual approach continue expanding internally in a limited way while
exploring the option of tapping new countries. Tony Kitchner said in the light way of the
shifting competitive environment, we have taken a broader, more global view of our
business. We are leveraging the preeminent to cater to more market segments
Jollibee planned to open more stores in Nevada, Hawaii and New York.
Commenting on the decision expanding globally, Tony said, An important source of our
corporation is the expansion of our international business. However, analysts were
skeptical about companys chances of success is outside the Asia.

Generic Strategies
Jollibee was able to attain a competitive advantage among established firms in
doing things:

Retaining tight control over operations movement, which allowed it

to price below its competitor

Having the flexibility to cater to the tastes of its local consumer

While Tony Kitchner was hired to develop these competitive advantage abroad
his international strategy of planting the flag and targeting the expats was executed

haphazardly and resulted in losses for the firm. His eventual dismissal was largely due
to his inability to manage intra-firm tensions.
In addition to the special understanding of the Filipino palate, Jollibee has also
mastered the countries culture and lifestyle. Jollibee lures kids with in-stores play
activities and a cast of captivating characters. Its massive jolly-bee character with the
orange jacket and the blonde spaghetti-haired girl named hetti are better known and the
loved in the Philippines than the McDonald. The well known Jolly Bee character
optimizes the Filipino spirit of lighearted everyday happiness.

Functional Strategies
Involves managers analyzing an organization current situation and then
developing strategy to accomplish its mission and achieve its goals. To techniques
managers use to analyze formulating strategies are SWOT analysis and the five forces
model.
The five forces model of Jollibee Food Corporation:

The level of rivalry among organizations in an industry.

The potential for entry in an industry.

The power of supplier.

The power of customers.

The threat of substitute products.

Using this model of Jollibee Food Corporation the managers would be able to
analyze its current status among its competitor and other factors that has an effect to its
operation. By the use of this, they could be able to generate new strategies that could
be useful in eliminating risk.

CHAPTER VII
Recommendation
During the conduct of the study, the researchers have identified and came up
with the following recommendations.
In order to be on the top, Jollibee Foods Corporation must do or apply this
recommendation such as:

Maintain the Filipino values by keeping Jollibee Food Corporation a Filipino own
company.

Encourage Franchisee not only in the Philippines but also abroad.

Its time for them to target the higher class in the society.

Think of new and innovative product.

Maintain tight monitoring when it comes to their competitor and new entrants.

CHAPTER VIII
Conclusion

This chapter represents factors based from the findings gathered and analyzed in
this research, we were able to derive at these following conclusions.

Therefore the researchers conclude that Jollibee Foods Corporation is still


leading and the No.1 fast food chain in the country because of their successful strategy.
On the other hand being No.1 can cause then problem such as maintaining their
position and the need of more effective marketing strategy.
The researchers find that the service here is different each time; sometimes they
are quick, sometimes they are slow (and this doesn't depend on the amount of people
waiting, they depends on if the food is already ready and waiting...). Most of the time,
they are friendly, which is a plus.

Bibliography
A. Books:

Principles of Marketing by Philipp Kotler

Contemporary Financial Management by McGuigan, Kretlow, and Moyer

B. Unpublished thesis, Internent and others:

http://www.ehow.com/about_5402374_parttime-jobs-influenceeconomy.html#ixzz12n80ekWf

http://elearning.utcc.ac.th

http://www.nwpc.dole.gov.ph/

Jollibee Foods Corporation. (March 2010). Jollibee Foods Corporation 2009


Annual Report (SEC Form 17-A)

Jollibee RP's most admired company for 3rd straight year. (December 16,
2000). Philippine Daily Inquirer.

Jollibee Website

former crew

Andrew M. Nacion

Mark Joseph A. Mago

Miles P. Baliquia

Hermie Mary G. Cahiles