Professional Documents
Culture Documents
CORPORATION
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Damalerio, Claire
Malubay, Kimberly
Poblador, Jhonald
Tataro, Vinz
Yanzon, Erica
1.0 EXECUTIVE SUMMARY
Jollibee Foods Corporation’s (“JFC” or the “Company”) core business is the development, operation and
franchising of its quick-service restaurant brands. It offers a wide variety of affordable and delicious dishes and
great tasting food prepared to satisfy customers of all ages and from all walks of life. Jollibee is a Philippine based
company that began with “imitating McDonald’s Operations while capitalizing on its Filipino culture, tastes and
preferences.
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. Jollibee Foods Corporation (JFC) is the Philippines’ largest Food Service
business and is continuously expanding its presence in foreign countries. It has a System Wide Sales of P117.9
billion and a Net Income of P5.4 billion in 2014. Jollibee Foods Corporation has grown brands that bring delightful
dining experience to its customers worldwide, “Spreading the joy of eating to everyone.”
Jollibee is a Philippine based company that began with “imitating McDonald’s Operations while capitalizing
on its Filipino culture, tastes and preferences. It aggressively builds a local network in key Philippine cities and was
able to attain a competitive advantage over McDonald’s by doing two things:
• Retaining tight control over operations management, which allowed it to price its menu below its
competitor and
• Having the flexibility and focus to cater the tastes of its local consumers.
JFC has a total store network of 2,951 stores worldwide as of March 31, 2015. In the Philippines, JFC’s store
network totals to 2,335: Jollibee brand 869, Greenwich 216, Chowking 419, Red Ribbon 334, Mang Inasal 452, and
Burger King 45.
And in Abroad, it operates 616 stores: Yonghe King 313, Hong Zhuang Yuan 43, and San Pin Wang, 53, all in
China, Jollibee 123 (USA 32, Vietnam 60, Brunei 12, Saudi Arabia 10, Qatar 3, Kuwait 3, Singapore 2 and Hong
Kong 1), Chowking 47 (US 19, UAE 20, Qatar 5, Oman 2 and Kuwait 1), Red Ribbon US 34 and Jinja Bar US 3.
JFC also has a 50% share in joint ventures for the following stores: Highlands Coffee (Philippines, Vietnam)
77, Pho 24 (Vietnam, Indonesia, Philippines, Cambodia, Macau and Korea) 45, and 12 Sabu (China) 20.
Food quality, service, price-value relationship, store location and ambience, and efficient operations continue
to be critical elements of the Company’s success in the quick-service restaurant industry.
The Company serves a wide spectrum of costumers from all economic classes. It is not dependent on a
single customer or a few customers. Neither is there single costumer that accounts, for, or will account for, 20% or
more of the company’s sales.
2.0.B.4.1 Product
Jollibee’s growth is due to its delicious menu line-up – like its superior-tasting Chickenjoy, mouth-watering
Yumburger and Champ hamburger, and deliciously satisfying Jollibee Spaghetti that will be served within a
maximum of 5 minutes -ably 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.
And it is this tried and tested formula of delivering great-tasting food, adherence to world class operating
standards and the universal appeal of the family values the brand represents that are driving the expansion of
Jollibee both locally and in the overseas market.
In 2014, Jollibee went back to the basics and put in significant efforts and investments behind its flagship
products – Chickenjoy, Jolly Spaghetti and Yumburger. Jollibee also launched its new Cheesy Bacon Mushroom
Yum, Garlic Pepper Beef, Ultimate Burger Steak, Amazing Aloha Champ.
2.0.A.4.2 Delivery
Get fresh, complete and affordable meals, anytime, anywhere through the 8-7000 Jollibee Express Delivery
Service. Whether you find yourself stuck indoors or craving for a Jollibee treat, dial 8-7000 and enjoy Jollibee’s
extensive menu of tasty Filipino food.
When hunger strikes you on the road, turn to Jollibee Drive Thru. With the most number of drive thru
outlets in the country, Jollibee awaits hungry motorists wherever they may be. So why stop when the hunger starts?
Get any of you langhap-sarap favorites fast. Anytime, anywhere. For sarap-on-the-go. Mag Jollibee Drive Thru.
2.0.A.4.3 Services
Looking for the best way to make your child’s birthday extra special? Throw a Jolly Kiddie Party! It’ll be
fun. It’ll be enjoyable. It’ll be absolutely memorable. Plan your kids party now!
J o l l i b e e i s a w a k e
hour service allows you to enjoy your Jollibee favorites even in the wee hours of the morning. Sa mga laging gising
na tulad mo, laging gising ang Jollibee para sayo.
Get fresh, complete and affordable meals, anytime, anywhere through 8-7000 Jollibee Express Delivery
Service. Whether you find yourself stuck indoors or craving for a Jollibee treat, dial 8-7000 and enjoy Jollibee’s
extensive menu of tasty Filipino food.
When hunger strikes you on the road, turn to Jollibee Drive Thru. With the most number of drive thru
outlets in the country, Jollibee awaits hungry motorists wherever they may be. So why stop when hunger starts? Get
any of your Langhap-Sarap favorites fast. Anytime, anywhere. For sarap-on-the-go, mag Jollibee Drive Thru.
2.0.4.A.4 Jollibee Mini Managers Camp
The Mini Managers camp is a 6-day workshop exclusive to Jolly Kiddie Club (JKC) members, best suited
for kids ages 4-7 years old.
It aims to impart the importance of hard work, good values, leadership, and responsibility through various
fun learning activities for the kid participants. As a bonus, they also get to interact with other kids and meet new
friends!
Camp activities include exposure to Jollibee values, exposure to Jollibee store practices, Storytelling,
Drawing, Arts and crafts, Burger making and dancing.
If your child is not yet a Jolly Kiddie Club (JKC) member, you just need to purchase a JKC Happy Plus
card at a Jolly Kiddie Club store, and register your child for P100 and If your child is an existing JKC member, you
may register your child for the Mini Managers Camp for P575 at any participating Jollibee store.
2.0.B MARKET ANALYSIS: Competitive
analysis
2.O.B.1 Strengths
The company responds by observing stringent guidelines, processes and procedures in its FSC, conducting
regular and spot audits to ensure that FSC standards are maintained not only in stores but also in commissaries. The
company has likewise instituted a system of incentives to reward excellent performances in terms of FSC by stores.
While the opportunity by the company’s competitive edge includes strict adherence to its policy of maintaining a
high standard in food quality, reasonable prices, and excellent services and cleanliness in its store.
2.0.B.2 Weaknesses
There is a claim for damages amounting to Php 5.3 Million arising from various illnesses allegedly suffered by the
children of the plaintiffs after dining at the Jollibee Crossroads Arcade, a franchised store owned and operated by
GREAT FOOD CORP.
2.0.B.3 Roadblock
The company has threats that has eventually competes with the quick service restaurant industry. Taking
the Jollibee group in its entirely competition includes: McDonald's, Wendy’s, KFC and other burger, pizza and pasta
chains. Chinese fast food restaurants, grilled chicken Filipino restaurants and bakeshops.
then, processing of products will be issued with the use of different advanced
machinery in the JFC Corporation
(frying, grilling, repacking)
The employees that were based on the kitchen will eventually do the garnishing
of products that will make the JFC products look appetizing for the costumers.
The cashiers will get the order of every costumers and ready the food that is
going to be served in the counter.
The consumers can also avail products through the cahier's counter, drive
through or delivery.
There are JFC Employees which are called staffs and crews who are positiones
in cleaning the consumer's table once it has finished his meal and finally get out
of the Jollibee's restaurant.
4.0 MARKETING SALES MANAGEMENT
Credit risk is the risk that a customer or counterparty fails to fulfill its contractual obligations to the
Company. This includes risk of non-payment by borrowers and issuers, failed settlement of transactions and default
on outstanding contracts. The Company has no significant concentration of credit risk with counterparty. Its
franchisee profile is such that no single franchisee accounts for more than 5% of its total system wide sales. The
Company has a strict credit policy. Its credit transactions are with franchisees that have gone through rigorous
screening before granting them the franchise. The credit terms are very short, while deposits and advance payments
are also required before rendering the service or delivering the goods, thus, mitigating the possibility of non-
collection. In cases of non-collection, defaults of the debtors are not tolerated; the exposure is contained the moment
a default occurs and transactions that will increase the Company’s exposure are not permitted.
The Capital management includes equity attributable to equity holders of the Parent Company. The primary
objective of the company’s capital management is to ensure that it maintains a strong credit rating and healthy
capital ratios in order to support its business and maximize shareholder value. The Company has sufficient
capitalization. The Company generates cash flows from operations sufficient to finance its organic growth. It
declares cash dividends representing about one-third of its consolidated net income, a ratio that would still leave
some additional cash for future acquisitions. If needed, the Company would borrow money for acquisitions of new
businesses.
On Liquidity Risks, the Company’s exposure to liquidity risk refers to the risk that its financial liabilities
are not serviced in a timely manner and that its working capital requirements and planned capital expenditures are
not met. To manage this exposure and to ensure sufficient liquidity levels, the Company closely monitors its cash
flows. On a weekly basis, the Company’s Cash and Banking Team monitors its collections, expenditures and any
excess/deficiency in the working capital requirements, by preparing cash position reports that present actual and
projected cash flows for the subsequent week. Cash outflows resulting from major expenditures are planned so that
money market placements are available in time with the planned major expenditure. In addition, the Company has
short-term cash deposits and has available credit lines with accredited banking institutions, in case there is a sudden
deficiency. The Company maintains a level of cash and cash equivalents deemed sufficient to finance the operations.
Jollibee's core product is its fried chicken, which is branded as Chickenjoy which was first introduced in
1980. Before the Chickenjoy, the Yum Burger was originally Jollibee's primary product which was introduced in
1978. Jollibee began serving spaghetti in 1979 and the palabok in 1982. Fries were introduced along with the
Chickenjoy in 1980. A bigger version of the fast food's Yum Burger, the Champ was launched in 1984. The fast
food also serves Jolly Twirl, a soft-served ice cream launched in 1988.
And it is this tried and tested formula of delivering great-tasting food, adherence to world class operating
standards and the universal appeal of the family values the brand represents that are driving the expansion of
Jollibee both locally and in the overseas market.
7.0 UNIQUE SELLING PROPOSITION AND COMPETITIVE ADVANTAGES
7.0 1 Mascots
Jollibee, a large bee mascot dressed in a blazer, shirt, and chef's hat introduced by the brand in 1980.The
mascot Jollibee was designed to epitomize Filipino optimism. Tony Tan, chairman and founder has compared the
mascot's character to the Filipino working folk reasoning that the bee "hops around and produces sweet things for
In the Jollitown, On April 13, 2008, a children's television program called Jollitown was launched. The
timing was chosen to highlight Jollibee's 30th anniversary. Jollibee and his friends: Yum the scientist, Twirlie the
star performer, Hetty the cheerleader and Popo the gym coach are the stars of the show, which airs Sundays,
9:30 a.m. or 8:00 on GMA Network On July 17, 2011, Jollitown moved to ABS-CBN for its 4th and 5th season
every Sunday at 9 am (every Sunday). On July 20, 2013, the show moved back to GMA Network for The Jollitown
Kids Show or Jollitown Season 6 until it ended on October 12,
which spanned for almost 5 years.
7.0.2 Advertisements and Billboards
As the Jollibee is becoming the country’s leading fast-food chain and one of the nation’s biggest
advertisers, is a major sponsor of Ad Summit Pilipinas (ASP) 2018. Themed "DIY Your ROI," this year's gathering
of 3,000 advertising and marketing practitioners will be held from March 7 to 10 at the Subic Bay Exhibition and
Convention Center. The Ad Summit takes a closer look at the various impacts of one's creative work and urges
creatives to take a look at how advertising and marketing can be used to create, not only financial but social impact
as well.
Campaign Spotlight: McCann World group Philippines' introduced the 'Kwentong Jollibee: Homecoming' digs deeper into
80s love story Leave it to Jollibee to pull at your heartstrings right on time for Valentine's Day. Revisiting last year's
viral #Kwentong Jollibee video titled 'Crush,' McCann World group Philippines delves further into the story of the
couple in the 1980s.
7.0.4 Packaging
Also, it gives Monthly Cash Winners, just register and reload your happy plus card for a chance to win up
to P 100,000 every month! The more you reload, the more raffle entries you get.
And lastly, Fast Cashless Payments No need for cash or wait for change. Just tap the happy plus card to pay
for your food. When you run out of load, simply reload your card for a minimum of P 100.
8.0 REQUEST FOR FUNDING
The main risks arising from these financial instruments are credit risk and liquidity risk. The Company does not
engage in any long-term debt and foreign currency-denominated transactions that may cause exposure to interest
rate risk and foreign currency risk, respectively.
The
ROYALTY, FRANCHISE FEES AND OTHERS Jollibee has
existing
Service fees
royalty and
franchise
Rent income
agreements
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
2014 2013
The Income taxes of the “JFC” or Jollibee Foods Corporation are stated as follows:
Chart Title
1,000,000,000
900,000,000
800,000,000
700,000,000
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
0
Royalty and Interest Income With itemized With Optional Dividend Income
Franchise fee deduction Standard
Income deduction