Chapter 1

1.1Introduction

Our research entitled " A Comparative Study Between Jollibee and McDonald's in
Terms of Customers Satisfaction as Perceived of Grade 11 ABM Learners of Our Lady of
Fatima University First Semester, SY 2019 - 2020 " aimed to know the customer
satisfaction when it comes to service, food and beverages of the two group of companies.
McDonald's Corporation, American fast food chain that is one of the largest in the world.
On the other side, Jollibee is a Filipino multinational chain of fast food restaurants, it is the
largest fast food chains in the Philippines with a nationwide network of over 950 stores
(Roberts, 2018).

Fast food chains restaurants provide the food especially when in rush. In everyday life,
country badly needed the fast food chains. It's like we're running out of time. When you
had a meeting but you don't have enough time to prepare meal for you own, the fast food
chains are always there. Fast food chains offering affordable meal for all type of customers.
The very challenging part is when the business or fast food chains have a changes like
business enhancements, profit, status, images, etc. The business depends on the customers.

The two fast food chain said is different from each other though they have similarities
in terms of service, food offered, and beverage. Understanding customer satisfaction and
the elements that influence it are important for the fast food to remain competitive. In this
case, the customer satisfaction and loyalty is important in terms of service in any company
and it is all depends on the customers.

This research study has the opportunity to encounter new ideas which Grade 11, ABM
(Accountancy, Business & Management) learners can give. Our research can also give
them ideas that can help them in the future especially in their strand which is to integrate
or practice students in accounting & business/management in order to be prepared as well
as to function as young business professionals.

1.2 Statement of the Problem

1. How McDonald’s and Jollibee satisfied Senior High school?

2. How McDonald’s and Jollibee become popular among Senior High school?

3. How McDonald’s and Jollibee play role in Senior High school?

4. What is the effect of eating in Fast food chain?

5. What are the selling strategy that McDonald’s and Jollibee does?

6. How many people is happy in their service?

1.3 Background of the Study

1.4 Hypothesis

The Grade 11 ABM Learners of Our Lady of Fatima University will become the
respondent of this research between the Comparative of Jollibee food corporation and Mc
Donald's in the Philippines it may possible that the students choose the most affordable fast
food that can carry their budget and allowances or it can be compare to the one who's
popular fast food, maybe the possible outcome of this research is they will choose the
Jollibee Food Corporation.

1.5 Assumptions

The assumption based on research is having a good conduct that the McDonald's
and Jollibee get to the Our Lady of Fatima University students customers, according to our
research the McDonald's and Jollibee Food Corporation are both highly rating's and many
stablish branches nationwide, the both fast food chain became popular in any country. The
main focus of this research is to indicate of how many students in Our Lady of Fatima
University will be satisfied on their service and product offered.

1.6 Theoretical Framework

1.7 Conceptual Framework

1.8 Significance of the Study

 The result of the study will be a great benefit to the following Grade 11 ABM Learners
of Our Lady of Fatima University, by the marketing strategy of Jollibee Food Corporation
and McDonald's. The students may attract to the two competitive fast food chains, but the
student choice is their benefit in affordable way by discounting every value meal of
restaurant.

1.9 Definition of Terms

1. Business - a person regular occupation, profession or trade.

2. Company - It is a business organization which makes goods in an organized
manner and sells them to the public for profit.
3. Customers - person or organization that buys goods or services form store or
business.
4. Fast food - food that can be prepared quickly and easily sold in restaurants.
5. Management - organization and coordination of the activities of a business in
order to achieve defined objectives.
6. Market - a regular gathering of the people for the purchase.
7. Menu - a list of the dishes that may be ordered as in a restaurant or that are to be
served.
8. Population - particular section, group or type of people living in an area or
country.
9. Serving - is an amount of food that is given to one person at a meal.
10. Transaction - is an agreement between a buyer and a seller to exchange goods,
services or financial instruments.
 Chapter 2

2.1 Local Literature

The McDonald's brand is almost as global as Coke. The group's 32,000threstaurant opened
in 2009, and those golden arches now spread across almost 118countries, welcoming some
58m customers every day. Not enough, the company says. On any day McDonald's still
only serves less than 1% of the world population, leaving plenty of room for growth.
However profit fell dramatically in 2002 and the group took unprecedented steps to close
under-performing outlets, even pulling out of a few markets altogether. That move
appeared to have paid off by 2004, and the group has reported strong growth ever since,
even in the face of an economic downturn. A key factor has been the broadening of the
McDonald's menu with an enhanced range of breakfast items, chicken and salad meals and
premium beverages. Advertising Agree estimated global measured advertising expenditure
of $2.0bn in 2008, making McDonald's the world's #14 advertiser (Stevenson, 2005) Cahn
(2002) stressed that as more than one billion burgers have now been sold, Ronald
McDonald is enjoying great success. This is all despite rampant childhood obesity and the
fact that Americans are, as whole, a very fat nation. We once

wondered at the stresses that McDonald’s PR agents must feel every time news show
mentions obesity. You know they realize they are certainly going to be mentioned and
debated. While Alexander (1988) emphasized that one neat thing McDonald’s has done is
to partner with Nintendo for Wi-Fi. We are following the US market in terms of growth,
so this year, we will continue with the specific projects that have been started last year and
the consolidation of the different applications, so that the stores can access the applications
using the Internet (Yang 2008). Jollibee was the first mover in the sector of burgers in
Philippines, shaping customer preferences and expectations, instead of McDonalds or
KFC. Secondly, Jollibee was young, and very small in comparison of McDonalds whose
force widely distributed is standardization. The burger company serves millions of exactly
identical sandwich each socio-economic class in dozen of countries so that McDonalds
customers can find their favorite BigMac taste wherever they go. McDonalds is used to
reducing costs by having huge economies of scale. But on new markets, such as
Philippines, this strength can turn into a weakness. Indeed, as we state the tastes were non
shaped by McDonalds, and the American juggernaut is not flexible enough to adapt to local
customer needs. Jollibee, give thanks to its smaller size, its local resources and
understanding of the local tastes, took advantage of McDonalds omit of flexibility. The
substantial creative menus with unique Filipino recipes and reasonable or internal-
combustion engine brought fantastic consumer feedbacks and a good reputation to the
company. Back to the crude oil crisis in 1977, Jollibee handled the difficult situation with
sweet solutions. At the earlier period, when Jollibee realized that an increase in oil prices
has a direct impact on controlling its deed cost, the firm decided to change its existing
transaction from ice cream to burgers. This shows that the management was clearly aware
of the climate changes and was able to make strategic decisions accordingly. In addition,
the company success is talk terms by the political and economic crises occurred in 1983.
While McDonalds and other(a) foreign investors were slowing down in their investment
and business development, Jollibee kept pressing.

2.2 Foreign Literature

Jollibee Foods Corporation's largest brand has been experiencing some financial challenges
since July 2016 due to the rising cost of raw materials and contractualization issues in the
Philippines. But despite these, the homegrown fast-food chain expects to maintain its lead
against rival McDonald's Philippines, driven by its network expansion and product
innovation. Jollibee, known for its Chickenjoy fried chicken and sweet spaghetti, told the
Philippine Stock Exchange that the brand expects to maintain a "significant lead" over its
key competitor in the coming years.

This was despite two price increases last year due to higher raw material costs and the
Philippines' new regulations on contractualization, which resulted to increased labor
expenses. "These price increases did not adversely affect consumer purchase volume
regardless of income class. Over the past years, the pricing of Jollibee had been at parity
with key competitors," Ysmael Baysa, chief finance officer and corporate information
officer of Jollibee, told the local bourse on Wednesday, March 29. Baysa said this in
reaction to an analyst report from Macquarie, saying that McDonald's has been closing in
on Jollibee in terms of preference and that the new labor rules could affect its leading
position in the Philippine market. Baysa said Jollibee has been incurring the costs of those
steps since the 3rd quarter of 2016. Because of this, Jollibee said the cost of labor will be
higher in the first half of 2017 versus the same period in 2016. However, the labor cost
increase in the 2nd half of 2017 over the same period of 2016 will be at a normal rate.
(David and Goliath)

McDonald's had said that it plans to open 45 stores this year, while Jollibee said it continues
to enjoy higher sales in the Philippines based on its latest financial report.

Jollibee's same store sales growth in the Philippines in 2016 stood at 8.3%, driven by higher
customer traffic and higher amount of purchases per visit per customer compared with a
year ago.

Moving forward, Jollibee said the growth in its brand in the Philippines will continue at a
strong pace, at least sustaining the number of new store openings in the past two years.

"The Jollibee Group of Companies had faced many challenges in the past. It had emerged
stronger from these challenges and its profit recovered quickly. It has one of the most
consistent sales and profit growth track records among all public companies in the
Philippines, while sustaining one of the highest returns on equity (ROE) at 18% to 22%
annually over different economic cycles," Baysa told the local bourse.

2.3 Local Study

HUNGRY FOR MORE. Jollibee, known for its Chickenjoy fried chicken and sweet
spaghetti, tells the Philippine Stock Exchange that the brand expects to maintain a
significant lead over its key competitor in the coming years.

HUNGRY FOR MORE. Jollibee, known for its Chickenjoy fried chicken and sweet
spaghetti, tells the Philippine Stock Exchange that the brand expects to maintain a
significant lead over its key competitor in the coming years.

MANILA, Philippines – Jollibee Foods Corporation's largest brand has been experiencing
some financial challenges since July 2016 due to the rising cost of raw materials and
contractualization issues in the Philippines. But despite these, the homegrown fast-food
chain expects to maintain its lead against rival McDonald's Philippines, driven by its
network expansion and product innovation.

Jollibee, known for its Chickenjoy fried chicken and sweet spaghetti, told the Philippine
Stock Exchange that the brand expects to maintain a "significant lead" over its key
competitor in the coming years.

This was despite two price increases last year due to higher raw material costs and the
Philippines' new regulations on contractualization, which resulted to increased labor
expenses.

"These price increases did not adversely affect consumer purchase volume regardless of
income class. Over the past years, the pricing of Jollibee had been at parity with key
competitors," Ysmael Baysa, chief finance officer and corporate information officer of
Jollibee, told the local bourse on Wednesday, March 29.

Baysa said this in reaction to an analyst report from Macquarie, saying that McDonald's
has been closing in on Jollibee in terms of preference and that the new labor rules could
affect its leading position in the Philippine market.

2.4 Foreign Study

Stevenson (2016) The McDonald's brand is almost as global as Coke. McDonald's still only
serves less than 1% of the world population. A key factor has been the broadening of the
McDonald's menu with an enhanced range of breakfast items, chicken and salad meals and
premium beverages.

Cahn (2015) stressed that as moret han one billion burgers have now been sold. This is all
despite rampant childhood obesity and the fact that Americans are, as whole, a very fat
nation. We once wondered at the stresses that McDonald’s PR agents must feel every time
news show mentions obesity. You know they realize they are certainly going to be
mentioned and debated.

Alexander (2016) emphasized that one neat thing McDonald’s has done is to partner with
Nintendo for Wi-Fi. We are following the US market in terms of growth, so this year, we
will continue with the specific projects that have been started last year and the
consolidation of the different applications, so that the stores can access the applications
using the Internet.

Yang (2018) Jollibee was the first mover in the sector of burgers in Philippines, shaping
customer preferences and expectations, instead of McDonalds. Secondly, Jollibee was
young, and very small in comparison of McDonalds whose force widely distributed is
standardization. Jollibee, give thanks to its smaller size, its local resources and
understanding of the local tastes, took advantage of McDonalds omit of flexibility.

Steffan (2013) Back to the crude oil crisis in 1977, Jollibee handled the difficult situation
with sweet solutions. At the earlier period, when Jollibee realized that an increase in oil
prices has a direct impact on controlling its deed cost, the firm decided to change its
existing transaction from ice cream to burgers. This shows that the management was clearly
aware of the climate changes and was able to make strategic decisions accordingly.
 Chapter 3

3.1 Research design

This study will be using a quantitative design which help researchers to much know
the phenomenon. This design serves as a foundation for emphasizing the number of
students who satisfied in the service of Jollibee and McDonalds. It consists some great
emphasis of satisfaction of Grade 11 ABM learners in Our Lady of Fatima University. In
gathering data questionnaires will be given to the sample size of Jollibee and McDonalds
in grade 11 students in Our Lady of Fatima University and it would be conducted through
survey. Through this the researchers would get the necessary information.

3.2 Research Instrumentation

3.2.1 Interview Questionnaires

In this part of the research, the respondents are asked and interviewed with the help
of interview questionnaires. Interview questionnaires are one of the vital research
instruments in conducting an interview. It is a guide for both the researchers and the
respondents. Its main purpose is for the researchers to have an information they would want
to have from the respondents. The interview questions are aligned with research questions
which the lived experience of the students are who are tardy.

To start the interview, the researchers provided an interview questionnaire as a

guide for their respondents. The respondents will be able to give open answers to each
question. When the respondent is answering the question, one or several labels will
summarize their answers. The respondents were interviewed about their lived experience.
With the collection and categorization of all labels the overall view of that interview
question can be described and is written out.

3.3 Data Collection Method

Data used in this study is quantitative approach. The researcher makes used of a
written questionnaire to the respondents of Grade 11 ABM learners of Our Lady of Fatima
University. The researcher used questionnaire to collect data from participants about their
opinions or experience in order to generalize the findings of the comparison between the
McDonalds and Jollibee. No matter what the basic design of the research, it is necessary to
collect accurate data to achieve useful results.

3.4 Sampling Design Technique

This study is a Quantitative design which emphasizes the number of students who
satisfied in the service of Jollibee and McDonalds. The researcher used a purposive
sampling technique assuming a specific total of 100 respondents from Grade 11 ABM
learners of Our Lady of Fatima University due to the given and required research
population. Purposive sampling is a form of Non-probability sampling technique in which
a sample is based on the selective of the researcher and has criteria of selecting sample.
The main goal of purposive sampling is to focus on particular characteristics of a
population that are interest which will best enable you to answer your research question.

3.5 Research Locale

This research will only be conducted around Our Lady of Fatima University
(Valenzuela Campus). This was located at 120 McArthur Highway, Valenzuela City. This
place was the one selected in order to know the perspectives of the chosen respondents in
accordance with the given topic between Jollibee and McDonald's customer satisfaction.