ATENEO DE NAGA UNIVERSITY COLLEGE OF BUSINESS AND ACCOUNTANCY BUSINESS MANAGEMENT COURSE DEPARTMENT Jollibee. SUBMITTED BY: MAELE JOY BARREDO GHUELLENE MAGALONA ERIC SABANAL KITHLY YU STUDENTS SUBMITTED TO: MARIA NIA CADANO-HOWARD, PHDTable of Contents CHAPTER | - INTRODUCTION 3 BACKGROUND OF THE STUDY 3 Brier HisToRY 4 CHAPTER Il — EXTERNAL ENVIRONMENT OF THE STUDY 6 SOCIETAL ENVIRONMENT 6 Pourtico-Legat Forces 6 Economic Forces 7 SOCIO-CULTURAL FORCES 8 TECHNOLOGICAL FORCES 9 TASK ENVIRONMENT 10 THREAT OF NEW ENTRANT 10 RivatrY AMONG EXISTING COMPANIES. 12 BARGAINING POWER OF BUYERS 13 BARGAINING POWER OF SUPPLIERS 13 ‘THREAT OF SUBSTITUTE PRODUCTS 13 CHAPTER III — INTERNAL ENVIRONMENT OF THE STUDY. 14 ORGANIZATIONAL STRUCTURE 14 ORGANIZATIONAL CHART 14 ORGANIZATIONAL CULTURE 16 Mission 16 VissION 16 ORGANIZATIONAL RESOURCES is CHAPTER IV —SWOT ANALYSIS. 21 ‘STHRENGTHS: 21 WEAKNESSES 23 OPPORTUNITIES 24 THREATHS: 25 CHAPTER V — STRATEGIC OPTIONS, RECOMMENDATION AND CONLUSION 26 RECOMMENDATIONS 26 CONCLUSIONS 26 Jollibee Foods Corporation | 2CHAPTER I INTRODUCTION Background of the Study Different establishments had been made in Naga City through times. Not all are blessed and lucky to last and operate in longer times. It maybe because of the location, the products and quality of services it offer are not suitable to its target market, or simply the strategies that the business implemented did not work out just well. This research will revolve in studying the Jollibee Food Corporation a business that has been existed for more than 3 years in Naga City, and a very popular fast food chain throughout the Philippines. With the success it realize, JFC still give its full ‘operation to give back to its customers by improving its product and services it offers to the public. Satisfying and meeting customers’ demands and needs are also key factors of achieving its goals. ‘As the subject of this study, there are five (5) reasons why the group has chosen the JFC, First, the business is popular and well established. Jollibee’s stores in Naga City are well known and many people support its business, therefore it was easy for the group to study and observe the business, being familiar with the products and services it offers. Second, it shows Filipino Spirit towards its employee and customers. Third, like other businesses JFC start from scratch as an Ice Cream Parlor, however its way to success is not that easy and studying it will make our research more interesting and informational. Fourth, information and data are available. Gathering information about the business background history, Internal and External Environment is easy with the help of its own sites and interviews of the group conducted with the Store Head. Lastly, accurate and reliable information is assured. Because of the availability of data the study can guarantee that it is based on facts, Jollibee Foods Corporation | 3Since, Jollibee Food Corporation is well known to its Industry. Analyzing its business will arise to new problems and recommendations to give solutions. This case study deals with, firstly the External Environment of the company, followed by its supporting information. Second, the Internal Environment of its structure, culture and resources within the company. Third, SWOT Analysis and lastly the Strategic options and conclusions. Brief History Tony Tan Cacktiong and his family opened a Magnolia Ice Cream parlor from the Bankerohan, Davao City to Cubao in 1975 with Jolibee as the original name. In 1978, Cacktiong and his brothers and sisters engaged the services of a management consultant, Manuel C. Lumba. Lumba shifted the business focus from ice cream to hamburgers, after his studies showed that a much larger market was waiting to be exploited. Lumba, became Cacktiong 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”. Now, Jollibee is an 30 year old company. The Jollibee mascot was inspired by local and foreign children’s books. Lumba next created the product names “Yumburger” and “Chicken Joy”. He had the company incorporated and leased a house on Main St. In Cubao, Quezon City as the first head quarters. Lumba formulated a long-term marketing strategy: listing up a number of consumer promotions and traffic building schemes. Cacktiong stressed that developing Jollibee Foods Corporation | 4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, Cacktiong and Lumba went on an observation tour in the United States, attended food service and equipment conventions. Now, Cacktiong placed Lumba in charge of franchise development. As of December 2007, Jollibee has become one of the biggest fast-food chains in the world with 1, 655 stores world wide and total sales of more than one billion US Dollars. Currently, according to the report from the internet the company owns 619 stores nationwide, of these 321 are franchised and 298 are company owned. There are also 33 stores operating outside the country. Jollibee Foods Corporation | 5CHAPTER II EXTERNAL ENVIRONMENT OF THE STUDY A business’ operation does not exist in a vacuum; there Is its external environment. The external environments are those forces outside and out of the control of the organization. These forces have the power to influence the business, though these forces are unmanageable, the organization can still respond and adapt to these forces to keep the business going. Societal Environment Politico-legal Forces The politico-legal forces set up the rules and frameworks within which a business operates. In the case of Jollibee, doing business in Naga City is carried ‘on with ease, which is because of the local government's policy environment, transactions are promptly attended to. The local government supports businesses for they contribute to the development of the city by creating employment for the people. The local government of Naga provides incentives known as the “1997 Naga City Investment Incentive Code” to businesses that invest in the city especially the “growth areas” identified by the local government. In fact, the Jollibee Foods inc. is recognized as one of the major investors of the city because its operation has been profitable even up till now. Jollibee also has to comply with the requirements of the local government like securing their business permit, sanitary permit, BIR permit that must be posted to the area of the establishment which is most visible especially by the customers, frequently they are located at the cashier; clearance by the BFP Jotlibee Foods Corporation | 6{Bureau of Fire Protection) must also be conformed with, to ensure the safety of everyone. Economic Forces The economy Is a significant factor in the operation of a business, for if the country experiences growth then it is beneficial to everyone because there is a rise in the living standards of people. In 2008, the world experienced a global financial crisis, this is also the period of the Great Recession in the US, a lot of businesses closed, some reported huge amount of losses which lead to an increase in the unemployment rate. The Philippines is not an exemption, during this pe in the cost of food raw materials \d, there has been a dramatic which affected Jollibee directly resulting to a decline in their profit margins. Jollibee though wes able to cope up with the difficult economic environment for despite the situation, they adjusted the prices of their products only gradually. Because the Philippine economy has been experiencing growth these past three years, it gained the confidence of investors not only those inside the country but also foreign ones. This resulted to growth in profit of companies in ‘the Philippines, including Jollibee, but the employment rate was not able to catch up with the remarkable economic growth, there are still a lot of people who are not employed, the unemployment rate remains close to 7%, one of the highest in the Southeast Asian nations. There are also still 2 lot of Filipinos who are living below the poverty line, with a slow growth in the employment rate, Jollibee can’t easily increase their prices, and it is one of the reasons why most Filipinos dine in fast food restaurants because they are affordable éspecially for those in the middle class. Jollibee Foods Corporation | 7The further growth of Jollibee can be expected, because according to the NSO, there has been an increase in the Household Final Consumption Expenditure of Food and non-alcoholic beverages from the fourth quarter of 2012 to the fourth quarter of 2013 with a growth rate of 4.9% leading to an increase in the rate of foods consumed outside the home. Socio-cultural Forces One of the major concerns of any business is its customers, and to accurately determine the customers culture has almost become mandatory for businesses. Culture varies in different places and for a company like Jollibee which has a lot of branches not only in the Philippines but also overseas, it is really required of them to study their consumers’ preferences especially when it comes to taste and the kind of food served. Jollibee took this as an opportunity to understand and satisfy the local taste of the different people that they serve. It is obvious why Philippines is the only country wherein McDonalds is not number one when it comes to fast food service because Jollibee was established first before its rival, it is a Filipino brand, it gained the trust and comfort of its consumers for they value family relationships, which is a notable value of Filipinos; they relate their advertisements to Filipino experiences. Jollibee’s food is especially intended and crafted for the Filipino people. When it comes to demographics, since the Philippines has 2 young population, Jollibee focuses more on their target market which is the children, they use tie-in promotion, by selling toys to kids which are characters from famous movies, to capture the interest of children and also by introducing different mascots like Jollibee, Hetty, Twirlie and Mr. Yum. As colourful as those colours may seem, they are more than vibrant enough to catch the eye's Jollibee Foods Corporation | 8attention. Also the smile of Jollibee shows hospitality and the attitude of Filipinos to always be happy even though there are problems. Since the people here in Naga are fond of eating, as we can observe there are a lot of food stalls, from carenderias to restaurants scattered in the City, that’s why it was not hard for Jollibee to penetrate the local market. One Filipino culture is to be religious, that’s why Jollibee also offer a food which doesn’t have meat like their “tuna pie” offered most frequently during the Lenten season. Through the years the family structure of most Filipinos have changed, today not only is the father working but also the mother in order to earn mare, to be able to provide fully for their families, there has been an increasing demand for instant food, that’s why most people tend to just order or eat at fast food restaurants. However, people are also growing more and more conscious of their lifestyle, they seek for healthier food; there are those who exercise daily, and convert to become vegetarians, a lot of kids not only adults are also obese nowadays. This will be pose as a challenge to Jollibee as to how will they respond to the changing demand of the people. Technological Forces To be able to operate more efficiently and effectively, companies must improve their technology to respond promptly to the demands of the consumers, Because of the increasing demand, Jollibee invested heavily in their commissaries. The Jollibee commissaries manufactures the different products Jollibee Foods Corporation | 9offered by the company to the consumers, there are three of them: in Santolan, Pasig City; Mandaue City, Cebu; and the central site in Canlubang, Laguna. The system operates 24/7, and administers Jollibee’s total supply chain process, manufacturing breads, sausages, and the sauces Jollibee use for their products. The largest of the commissaries is the central site in Laguna and the most advanced, almost everything is automated with little human intervention operated by Zenith Foods Corp. which is one of Jollibee’s subsidiary accompanied by professional technical teams from engineering, logistics operations, human resources supporting the maintenance of the facility to ensure quality and safety of the manufactured foods. For convenience in payment, Jollibee has also tied up with banks like Banco de Oro, Bank of the Philippine Islands, which also allows customers to redeem freebies based on the points their credit cards earned. Jollibee also has its website where customers can visit to have more information, the website contains the products they offer, the location of their branches and their telephone number in case of delivery, Task Environment In this section the Porter’s 5 forces of competition will be used, which is a tool to describe the level of competition in an industry. Threat of new entrants ‘As we know that new entrants are those companies that are not currently competing in an industry but have the capability to do so if they Jollibee Foods Corporation | 10choose. The degree of threat posed by these new entrants depends on the entry barriers, In order to put up a fast food restaurant there are a lot of things to consider and the most significant would be the capital requirements to put up the business. A new entrant would need a large amount of capital to enter the industry like the acquisition of specialized equipments, establish brand awareness especially to the customers of the existing firms in the industry, that's why it would be difficult for a new entrant to enter the industry. Jollibee which is a large firm definitely enjoys economies of scale because of their commissaries, they are able to increase their production therefore reducing their fixed cost which in turn reduces the per unit cost of their production, this cost advantage discourages new entrants. Product differentiation, also limits the entry into the industry, through it a product is made special or unique in the eyes of the customer compared to its rivals, it also gains and strengthen customer loyalty. Jollibee has high product differentiation, mainly because it is a fast food restaurant that offers favourite Filipino foods, like palabok, lumpia shanghai, and la paz batchoy, When it comes to brand identity, having an established brand is an advantage of a company, that is also one of the reasons why a lot of entrepreneurs choose to Invest in franchising reputable companies especially in the restaurant business. The brand identity of Jollibee is high; almost all Filipinos know the brand, new entrants will encounter material complications in establishing their own brand identity. Jollibee Foods Corporation | 11New entrants must be able to persuade the customers of existing companies to switch to their product, if switching cost is low then it would be easy for them to convince the customers. In the case of Jollibee there is medium switching cost because other companies offer the same products at almost with the same prices, with also nearly the same number of branches as Jollibee’s but there is still the preferences of most consumers to eat Jollibee products, Rivalry among existing companies There are a lot of companies competing in the fast food restaurant business and through the years, Jollibee has been taking the lead. In the industry there is intensive competition, accompanied by high demand from consumers, \ce it is a food business there will always be a demand. Jollibee has always been identified with its rival McDonalds, these two companies offer almost same products for breakfast, lunch, snack, and dinner. They are so “in love” with each other, they stay as close as they can get, with only a walking distance from each other. If some competitors decide to leave the industry then the rivalry among existing competitors decline. But companies cannot easily leave an industry, there is this so called exit barriers, which impedes their decision to leave. One exit barrier would be the specialized equipments that Jollibee use in their operation, these equipments has already depreciated, it would be hard to dispose of them and they will be of little value to other firms. There is high fixed cost of exit, Jollibee is a company with a lot of branches not only in the Philippines but also overseas, to leave the Industry would be to let go of their ‘employees, and Jollibee would have to pay them. For a company whose been in the industry for more than 30 years, surely, it already established relationships Jollibee Foods Corporation | 12within the company, there is this emotional attachment, of stakeholders in the business, these barriers would discourage exit. Bargaining power of buyers The buyers of an industry can sometimes exert pressures on existing companies. Buyers or the customers of Jollibee are not concentrated; they offer their products to different segments, so here the power of buyers is low. Moreover, consumers purchase in small volume, so they would have less power but there is few switching cost so Jollibee must be able to maintain and gain customers. Bargaining power of suppliers Jollibee, as the leading fast food chain in the industry, purchasing large volumes of raw materials, makes the company as an important customer of its suppliers. There is low supplier concentration, Jollibee can have other suppliers for its products however the raw materials offered by the suppliers is an important input for Jollibee’s operation, all in all the power of suppliers is low. Threat of substitute products There are a lot of products that serve the same functions as that of the products Jollibee offers, any kind of food would lead to the same function, some with even lower prices, these substitutes has the capability to threaten the profitability of Jollibee, furthermore there is only low switching cost involved. Even though this is the case, Jollibee has still shown development in their business, customers still patronize Jollibee products. Jollibee Foods Corporation | 13CHAPTER Il INTERNAL ENVIRONMENT OF THE STUDY Jollibee Food Corporation as one of the most established Fast food Restaurant here in the country posses many attributes that help them to achieve its goals. The Internal Environment of JFC were been divided into three, namely; (1) Organizational Structure, (2) Organizational Culture, and (3) Organizational Resources. Organizational Structure JFC has its own strategy when it comes to supervising its Internal Resources especially on how its business is organized. Below is 2 Chart of JFC that shows the separation of Task as its Business Structure. Organizational Chart eee om seo Ching The chart shows the internal relationship and segment of the JFC from the Top “Artemio Panganiban level management down to the Lower level management of the business. Jollibee Foods Corporation | 14Top Level Management CEO of Jollibee: Tony Tan Caktiong Monico Jacob Poe Eng Chua Artemio Panganiban Cezar Consing Cho Sit Ang Felipe Alonso Chief Financial Officer: Ysmael Bayasa Chief Operating Officer: Ernesto Tanmantiong Middle Level Management Jollibee is made up of many different departments, as many corporations tend to be. Here are some of its departments and each department has its own managers (note that it doesn’t have the names of the Department Heads due to confidentiality): * Jollibee Worldwide Service + Greenwich Business + Jollibee Foundation + Engineering + Yonghe King Brand * Human Resource ‘+ Red Ribbon Bakeshop + Information Management * Fresh & Famous Foods + Procurement + Chowking + Real Estate Jollibee Foods Corporation | 15Lower Level Management ‘The lower level management of JFC consists of the Foremen and the Supervisors. They are selected by the Middle level management. Organizational Culture 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 liond€™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. Values + Customer Focus * Spirit for Family and Fun + Excellence * Humility to Listen and Learn * Respect for the Individual + Honesty and Integrity + Teamwork + Frugality Mission To serve great tasting food, bringing the joy of eating to everyone. Vision Become the most dominant and best-tasting quick service restaurant, the most endearing brand that has ever been, Jollibee Foods Corporation | 16We will be within reach of every Filipino, We will lead in product taste at all times. We will provide FSC excellence in every encounter. Happiness in every moment. 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 brands 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. AWell-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 Jollibee Foods Corporation | 17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. Great tasting products and quality systems Jollibee's growth is due to its delicious menu line-up — like its superior-tasting Chicken joy, mouth-watering Yum burger and Champ ham burger, and deliciously satisfying Jollibee Spaghetti -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. Widest store network in the Philippines and an emerging global player Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of more than 750 stores. A dominant market leader in the Philippines, Jollibee enjoys the liona€™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, and currently has 80 stores outside the Philippines-USA (26), Vietnam (32), Brunei (11), Jeddah (7), Qatar, Hong Kong, and Kuwait (1 each), firmly establishing itself as a growing international QSR player. Jollibee Foods Corporation | 18Organizational Resources The assets that are available to Jollibee Corporation for use during the production process are the resources it uses to operate its business and to maintain and sustain its competitive advantage. Its resources were divided into four: (1) Human Resources, (2) Raw Materials and (3) Human Resources The people behind the success of JFC, starting from the top level management down to the lower level management of the company. Their skills and knowledge are invaluable to the business. They serve as the core foundation of the company. In order to have 2 smooth transition and a productive Human Resources JFC recognizes their staffs and employees: + Modern and comprehensive training programs are given to them ‘+ Managers are regularly updated on the latest store operations systems, * People-oriented management skills, among others. + Service crews are trained on various store stations and food-service innovations. + The company also offers career opportunities for qualified and exceptional crew members to further their food-service careers as managers. * Superior "Family-like” atmosphere. * Highest compensation. + Benefit packages. Raw Materials To have a high quality products, JFC has their own Commissary System, ensuring the manufacture and distribution of safe and high- quality food in the most cost- efficient manner. The company can provide their own supplies for their entire Jollibee Foods Corporation | 19operations having the three big commissaries in the entire Philippines, which operates 24/7, manages Jollibee’s total supply chain process namely: = Santolan, Pasig City + Mandaue City, Cebu = Canlubang, Laguna, 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). Mandaue City, Cebu to service the Visayas and Mindanao areas. VFC has its own bread, pie, sauce, and frozen patty lines. Laguna commissary Is the biggest and most advanced in the country and among Asia's best. Operated by Zenith Foods Corporation (ZFC), a full subsidiary of Jollibee, the newest commissary is on a G-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. Finances According to wrightreports.ecnext.com, year over year, Jollibee Foods Corp. has been able to grow revenues from $43.98 to $48.08. Most impressively, the company has been able to reduce the percentage of sales devoted to cost of goods sold from 84.02% to 82.14%. Jollibee Foods Corporation | 20Opportunities, Threats) Analysis used for identifyi CHAPTER IV SWOT ANALYSIS This chapter will discuss on the framework called SWOT (Strengths, Weaknesses, and analyzing the internal and external factors that can have an impact on a firm, to its product and to its operation, Strengths and Weaknesses will focus on the internal attributes while Opportunities and Threats are on external factors. Strengths Jollibee as one of the leading fast-food chain in the country Jollibee Foods Corporation if undeniably profitable because it has a spot on the top choices of an average Filipino diner that made them to be one of the leading fast-food chain in the country. Aside from other fast-food chains here in Naga City like McDonald's, KFC (Kentucky Fried Chicken) or Mang Inasal, Jollibee Js one of the many fast-food chains that can be considered as a true Filipino- made restaurant. Jollibee’s strengths also lie in having a dominant position in domestic market and achieving high brand loyalty in Philippines. Jollibee also has experienced managers who assist the franchisees to their success during the start up stages. They value quality over anything, so they can sustain the loyalty of their customers. Provides high quality of service and best tasting food Satisfaction of the customers in terms of the quality of service and foods provided by Jollibee contributes to the strengths of the company. Jollibee always ensure that the food they serve is of great quality and taste. As what we have Jollibee Foods Corporation | 21observed during our short visit on one of their branch in Naga City, after taking the order from the counter they would then call products from the kitchen and in just a couple of minutes aromatic and good tasting foods will be served to the customers. This process is done to ensure that the food they served is fresh. Aside from the food they served crews were also friendly and maintained to smile despite the busy and tiring hours of work. The crew ensures to really accommodate their customers and make the customers feel comfortable upon purchasing the products. + Adaptability to change and technological advancements Jollibee is always adaptable to change and preference of their market. Since their main target market are kids, Jollibee produces toys of every latest cartoon character and bundle it with their meals. On the technological side the HappyPlus Card is the Jollibee’s way to adopt the “Near Field Communication” or NFC. NEC is a sensor device where you will just point your card within four centimeters; the point will be credited to you. The point that you will accumulate from the frequent purchase can actually be used in other fast-food chains owned by Jollibee Corporation. + Affordability and accessibility Foods offered by Jollibee are affordable by an average Filipino with the prices of one complete meal ranging from P39.00 and above. In terms of accessibility, in Naga City there are five Jollibee branches together with the 1,485 stores all over the country, which are located in a major establishments and populated area to ensure profitability Jollibee Foods Corporation | 22Weaknesses Delicious yet unhealthy meals Jollibee is known for its great tasting foods especially when it come to burger and fried chicken, Though the foods offered are undeniably delicious the nutrient content is very poor. Since it is fast food we shouldn't expect that it is very nutritious and can be a substitute for a home made meals. Many researches was conducted and proved that eating frequently fast foods will result to obesity that could lead to many diseases and complication in human's health. Too long approval on operations development Some managers of Jollibee suggest new strategies and alternatives in terms of operation of the chain. Some tried to make a proposal and submitted to the headquarters in Manila but the problem is that the approving committee is very strict and they scrutinize first every detail of the proposal. Sometimes quick decisions should be made in order to respond with the sudden change in the environment to maximize the profitability of the season. Limited menu offered to the customer There are many tourists that visit Naga City all year round. Limited menu is one of the weaknesses of Jollibee because the tourists are commonly ‘Americans and included in an American meal is beer or wine. The tendency of the tourists is to find another restaurants that offer their preferred beverage. Jollibee Foods Corporation | 23Opportuniti Adaptation on products and services to culture and tradition The opportunity in the fast food industry ties in the globalization of the countries. People around the world are beginning to accept other cultures as their own and thus the entrance into these markets are getting easier. Another ‘opportunity is that, as time pressure builds up for people, they want to look for food that is served fast and provides good value to them. Thus people accept fast food as a substitute for a meal. First-mover advantage Jollibee Foods Corporation should continue the search for countries that has not been entered by the fast food industry or countries that has a few competitors. It is a big opportunity for them because surely it will become profitable. As the pioneer in that certain country in the fast food industry they can set the pace and standard based on their advantage. Expanding abroad will be a great opportunity of Jollibee Currently, Jollibee has a lot of business venture abroad. They have many existing stores overseas and they are continuously expanding. Expansion of their empire and putting up more stores around the world will create a brand recognition and popularity for their company. Jollibee Foods Corporation | 24Threats Growing numbers of competitors There are many fast-food restaurants present in the Philippines today. Some of the most popular names are McDonalds, Wendy's Hamburgers, Burger king, Chowking, Greenwich Pizza, Kenny Rogers, Pizza Hut. If the number of competitors would continuosly increase then, there will be tendencies that customers will shift to another food chain and the people now is divided. Weakening customer demand Most of the consumers nawadays are becoming health conscious. When people begins to choose the food that they will eat considering the health benefits, food served by Jollibee will be last on the list including the other fast food chains. This is very much possible because of the diseases that are being discovered and most of these newly discovered diseases are because of the unhealthy lifestyle and eating habits of the people. Bad economy A bad economy can hurt Jollibee’s operation that will result to missed growth target and decreasing number of potential customers. With the current status of our economy, this is possible if it doesn’t change from slow-moving type to average or fast moving one. Jollibee Foods Corporation | 25CHAPTER V STRATEGIC OPTIONS OR RECOMMENDATIONS AND CONCLUSIONS Tony Tan Caktiong provided joy to the Filipino community through the foods offered by his company. Jollibee Foods Corporation must continue to understand Filipino community and the foreign customers in order to respond with the changing needs of the market. Research and development group of JEC should expand from the general market environment down to the specific areas of the business. Restructuring the organizational chart into regional based structure should also be considered. Having a regional based structure can give them another competitive advantage in terms of the immediate action on issues and proposals that needed an out right decision in response to unforeseen situations. With these kinds of strategies, JFC will continue to meet the needs of their customers and will be able to produce product that will suit the taste of a Filipino tongue ‘As a conclusion, though the company faced and is facing numbers of difficulties in keeping their spot in the industry, still it is very profitable locally and internationally. The company was able to sustain their competitive advantage for a long time and to maintain it up until now is a tough job. Jollibee Foods Corporation | 26