DELA VEGA, JEMIAH KEZIA P.

MBA - TCC
MGT 201 – Case Study 01 September 28, 2019

CASE STUDY ON
JOLLIBEE FOODS CORPORATION
FRANCHISE APPLICATIONS

In this case study, the point of view of Ms. Genee Lopez, the Assistant Vice President for
Franchising, was adopted. The qualities to obtain the JFC brand, as stated, requires
individuals:

1. with a successful track record in business;

2. of good standing in the community;
3. who are willing and committed to spend time managing the restaurant and
providing total customer value and satisfaction; and
4. who have excellent people-handling skills

Many factors have to be considered to come up with a decision of which franchise should
be granted. With this, I have first laid out all possible advantages and disadvantages of
granting Mr. Alberto Artiaga’s and Mrs. Carmencita Ng’s franchise applications through
analysis and observation of the few facts provided.

Mr. Artiaga has a specific intent for the company. He is willing to provide total customer
value and satisfaction. He has a degree in Business Management. He also has a sufficient
net worth to start a franchise, however, his net worth is not as big as Mrs. Ng’s. He seems
to be well-experienced with managing since he is handling a gasoline station which is still
actively running. He keeps up with the demand of his customers – customers are seeking
a restaurant, and now he plans to provide one. However, the danger here is that his
attention might be divided between the gas station and the potential Jollibee franchise.
Also, the location is so close to the gas station. It would be more convenient for the
potential customers, most probably the customers from AZA Gasoline Station, because
their cost in terms of vehicle’s gas and time of going from gasoline station to Jollibee will
be less costly because it is nearer. The customers will not waste their effort from the
hassle of crossing Don Antonio Ave. just to avail the services of Jollibee. However,
because of the lot of Jollibee offered by Mr. Artiaga is smaller than that of Mrs. Ng, the
parking space will also be smaller and it is a problem since the potential customers usually
have cars. Personally, I as a customer, thinks that parking should definitely be taken into
account. To address this issue, the potential store may be extended up to 2 nd or 3rd floor
so that they can cater customers with larger facility vertically and hence, a provision of
parking.

Mrs. Ng, on the other hand, has more than an adequate amount of income to start a
business. She handled a pawnshop for 5 years. Her Chinese lineage may be a big plus
to the Chinese entrepreneur of Jollibee Foods Corporation. In fact, Chinese people are
known to have an innate skill to manage businesses. She even has a degree in Hotel and
Restaurant Administration. Her chosen location is good enough to attract the customers
of AZA gasoline station as well. In addition, Mrs. Ng’s location a much larger than that of
Mr. Ng. It is spacious and adjacent to both Don Antonio Ave. and Commonwealth Ave
where potential customers may easily be attracted to dine. Also, parking space is big
enough to satisfy the demand of possible customers with cars. A Drive-Thru may also be
set up since there is an available space surrounding the building. However, Mrs. Ng
seems vague in her intent to start a franchise. She was not able to sustain her pawnshop
business and compete the market. It has only been 5 years since start of operations.
Maybe the closure was because of poor management. But this can also be a way so that
she can have all her time in managing the restaurant since it is the only business she has
if she’ll get the franchise. However, it should also be taken into consideration that it is her
first time to manage a restaurant. Her first business was closed and has nothing to do
with food industry.

Decision:

There were many pros and cons of either party but in my opinion, the right choice must
meet the required qualifications set by JFC management. I will recommend the franchise
application of Mr. Artiaga since he has a specific intent for the company. He is very familiar
in managing and sustaining his gas business. He is focusing on benefitting his gasoline
station by using Jollibee franchise as a medium to get there. The danger that Mr. Artiaga’s
attention might be divided between the gas station and the potential Jollibee franchise
can be mitigated by exerting double effort to produce good management because good
management brings about how one can still juggle many areas of responsibilities. He may
use both brands (gas and food chain) as his strategy, as if co-branding. He may unify two
products in synergy. He may put up discounts related to these two businesses. One
product or service benefits from the other and vice versa. Mrs. Ng may have greater
income with Php40M, but it is not enough if her aim towards JFC is to just acquire a career
in the restaurant business. She has no specific strategy. Also, her past record with her
pawnshop indicates that she is unable to capture her market and unable to manage the
business well. This weakens her claim for the franchise approval since JFC looks for
individuals with a successful track record in business. Mr. Artiaga, in fact, is.