MASTERS IN BUSINESS ADMINISTRATION

Case study on

Production/Operation Management
“JOLLIBEE FOODS CORP,.”
Company

Prepared by:

Devy D. Niguas
MBA Student

Submitted to:

Dr. Marcial Mojica

Professor
 JOLLIBEE FOODS CORP,.

VIEW POINT

Calen Rodriguez (Manager)

TIME CONTEXT

Aug-2014

HISTORICAL BACKGROUND OF THE COMPANY

Jollibee is the largest fast food chain in the Philippines, operating a nationwide
network of over 750 stores. A dominant market leader in the Philippines, Jollibee
enjoys the lion’s share of the local market that is more than all the other multinational
brands combined. The company has also embarked on an aggressive international
expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei,
firmly establishing itself as a growing international QSR player.

A company that values family

Jollibee was founded by Tony Tan and his family with its humble beginnings as an
Ice Cream Parlor which later grew into an emerging global brand. At the heart of its
success is a family-oriented approach to personnel management, making Jollibee
one of the most admired employers in the region with an Employer of the Year
Award from the Personnel Management Association of the Philippines, Best
Employer in the Philippines Award from Hewitt Associated and a Top 20 Employer in
Asia citation from the Asian Wall Street Journal.

Aside from promoting a family oriented work environment, the brand’s values also
reflect on their advertising and marketing. Jollibee knows their target audience very
well: the traditional family and all communication materials focus on the importance
of family values, making Jollibee the number one family fast food chain in the
Philippines and a growing international QSR player.

A Well-Loved Brand
Customer satisfaction has always been key to Jollibee’s success. Never losing sight
of its goals, Jollibee has grown to be one of the most recognized and highly
preferred brands in the Philippines. Now the market leader among fast food chains in
the Philippines, claiming a market share that totals to more than half of the entire
industry.

STATEMENT OF THE PROBLEM

A sudden decision to replace the entire system without notice had a negative
effect on consumers.

Jollibee ran out of ChickenJoy and a bunch of other popular items on the menu last
August 1, 2014. The product limitation has been caused by the instantaneous
migration to new systems which has resulted in a temporary slowdown in sales
order taking, product loading and dispatch of transportation Due to its limited menu;
it eventually leads to having at least 72 stores shut down mostly in Metro Manila.

AREA OF CONSIDERATION

STRENGTHS
 They got a lot of branches
 Jollibee has grown exponentially in 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 existence of other competitors.
 Lacked more effective marketing skills as growth revenues decreased.

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
THREATS
 The rivalry between Jollied and McDonalds
 Competition from both international companies and local eateries
 Jollied 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.

ALTERNATIVE COURSE OF ACTION

ACA1. Just set up a few stores for the system to change

 Advantage

A small initial project would allow the staff to better understand what they
really need, and then specify succeeding scope based on something they can see
and use.

 Disadvantage

It is just impossible to correctly imagine upfront all the requirements needed

for a project, even for small projects. The only time people realize what they
really need is when they actually see the product, or get to use it.

ACA2. Have some people test the system before starting

 Advantage

Builds up a large and rich set of automated tests, that are able to catch bugs
early and often, when they are still easy and cheap to fix. Because majority of
these tests are automated, they can be run several times a day and give the
team instant feedback.

 Disadvantage
Costly. Needs to hire a separate team of experts to conduct testing.
ACA3. Needs to be focused and see what is causing problems and
mistakes to avoid bigger problems

 Advantage

The management can monitor the progress of a project, and catch problems
earlier rather than later

 Disadvantage

May take more time, since it will require a lot of processes like Regular
Demos, Test Reports, and Quality Metrics before they can start to implement
the new system
CONCLUSION & RECOMMENDATION
System upgrades are no joke. It requires a lot of preparation, disaster
recovery plan, even manual backup options in case the system didn’t push through
as plans. When a cut-over plan fails, this can cause the organization millions up to
billions of sales per day that will never be recovered anymore. It is important to work
with reliable vendor with a good level of experience in doing cut overs. Hence, I
recommend the alternative course of actions in order for a system upgrade/migration
to work successfully in any company.

References:

https://creatinginfo.com/blog/chickensad-craze-

https://www.allfreepapers.com/Business/ Jollibee-Foods-Corporation/100590.html

http://calenlegaspi.blogspot.com/2014/08/jollibee-chickensad-it-management-
case.html