Professional Documents
Culture Documents
In the past three years, Jollibee’s growth has been steadily growing.
However, during the start of the COVID-19 Pandemic the sales gradually
dropped, and in 2020, it has hit a negative sales compared to the previous year.
Decreasing to -28.01% compared to 2019’s revenue.
In 2018 Jollibee has 161 billion in revenue compared to the previous year
2017 which has 133b, the revenue grew for 20.62%. In 2019, the rate of increase
has decreased due to the start of the pandemic. Most branches under the
Jollibee Foods Corp. have been temporarily closed. Thus, halting any sales from
coming in. The revenue has since dropped in 2020, which only gave 129b in
revenue and a 28.01% decrease in sales.
B. How the company's growth compares with industry growth or vis-a-vis the other
players.
Looking at these charts provided by Wall Street Journal. We can see that
Jollibee is still struggling on their sales that the pandemic caused. JFC’s
operating profit is at -7.39, which is a loss for investors. Whilst on the sales and
Revenue growth it is at a -28.01% compared to the previous year. Similar as to
how the food industry in the Philippines, which are experiencing a loss or
decrease in revenue.
Quick Ratio
This is an indicator of a company’s short-term liquidity position and
measures a company’s ability to meet its short-term obligations with its most
liquid assets.
JFC’s quick ratio measures 1.22, compared to the industry’s ratio of 1.
This means that JFC has the capacity to pay its current liabilities without needing
to sell its inventory or obtain additional financing.
Current Ratio
The current ratio is a liquidity ratio that measures a company’s ability to
pay short-term obligations within a year. It tells investors and analysts how a
company can maximize the current assets on its balance sheet to satisfy its
current debt and other payables.
JFC’s current ratio stands at a 1.36, while the industry is at 1.24. Meaning
JFC is higher than the industry average, and indicates that the company can
satisfy its current debt and payables, while still be profitable.
Logistics
For outbound logistics, Jollibee distributes to franchises and fully-owned
stores. Because of the centralized distribution system brought by Jollibee
commissaries, it is an advantage to have centralized processing and
manufacturing quarters that deliver to stores in proximity. This has allowed
Jollibee to have a timely delivery for perishables and maintain its quality till it
reaches the consumer.
Manufacturing
The commissary system is responsible for the value adding processes
done to produce genuine Jollibee products. Being part of the value chain, the
manufacturing process is highly technology dependent to ensure that the food is
consistent to Jollibee standards and is produced safely and cheaply without
sacrificing the quality. The key to handling the complex commissary operations is
state-of-the-art automation, computerization and continuous improvement in
manufacturing equipment and processes. Jollibee's automated operations not
only cut production time and ensure consistent quality from batch to batch but
also ensure food safety by minimizing handling and maintaining the highest
standards of cleanliness. (excerpt from the JFC website)
Marketing
Another key component of the Jollibee value chain is marketing and
effective ad campaigns. Jollibee ads reach the customers through media. Using
celebrities to promote the company's products and citizenship. The company's
culture of family values is well communicated through publicity moves such as
MaAga ang Pasko and Habitat for Humanity. The Company has used media
masterfully in showing its ethical stance on issues of poverty and humanity.
Human Resource Management
Finally, the JFC value chain, as stated by Mr. Saldriega, works through its
people. The culture of sharing and family values is well communicated to
employees. However, this means that poor performance is tolerated. To abide by
the consistent quality of products and service, employee actions are evaluated
on the achievement of objectives. Good performers are rewarded, and a higher
value for the customer experience is provided.
Summary
The value chain analysis of Jollibee shows that the internal competencies
of Jollibee are through its social responsibility, production capacities, and
marketing know-how through advertisements.