COLLEGE OF BUSINESS AND ENTREPRENEURIAL TECHNOLOGY

RIZAL TECHNOLOGICAL UNIVERSITY

College of Business and Entrepreneurial Technology

A STRATEGIC MANAGEMENT PAPER OF

JOLLIBEE FOODS CORPORATION

Submitted to:

Professor Bienvenido Deguzman

Submitted by:

Espiritu, Justine H.
Lumagod, Marve S.
Magarzo, Dexie Ann Danica C.
Manalo, Mariz P.
Pangan, Gabriel B.
Pareño, Mary Joy E.
Pereda, Vince Aldri P.
Regunayan, Marco Paul C.
Santos, Rica May D.

CBET-01-602P

June 2021

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APPROVAL SHEET

This Study entitled:

Strategic Management Paper of Jollibee Foods Corporation

As of SY 2020-2021 was prepared and submitted to the Faculty of College of Business

and Entrepreneurial Technology by:

Espiritu, Justine H.
Lumagod, Marve S.
Magarzo, Dexie Ann Danica C.
Manalo, Mariz P.
Pangan, Gabriel B.
Pareño, Mary Joy E.
Pereda, Vince Aldri P.
Regunayan, Marco Paul C.
Santos, Rica May D.

Is hereby approved by the Panelist on Strategic Management Paper Defense with a grade of:
____________
PANEL OF EXAMINERS

_________________________
Accepted and approved in partial fulfillment of the requirement for the degree of

Bachelor of Science in Accountancy.

PROF. BIENVENIDO DEGUZMAN

Strategic Management Adviser

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CERTIFICATION OF ORIGINALITY

We hereby declare that this submission is our own work and that, to the best of our
knowledge and belief, it contains no material previously published or written by another person
nor material to which a substantial extent has been accepted for award of any other degree or
diploma of university or other institute of higher learning, except where due acknowledgement
is in the text.
We also declare that the intellectual content of this study is the product of our work,
even though we may have received assistance from others on style, presentation and language
presentation

Researchers:

Espiritu, Justine H.
Lumagod, Marve S.
Magarzo, Dexie Ann Danica C.
Manalo, Mariz P.
Pangan, Gabriel B.
Pareño, Mary Joy E.
Pereda, Vince Aldri P.
Regunayan, Marco Paul C.
Santos, Rica May D.

PROF. BIENVENIDO DEGUZMAN

Strategic Management Adviser

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TABLE OF CONTENTS

Title Page…………………………………………………………………………….. i
Oral Approval Sheet…………………………………………………………………. ii
Certificate of Originality……………………………………………………….……. iii
Table of Contents……………………………………………………………………. iv
Acknowledgement…………………………………………………………….…….. v
Chairman’s Message………………………………………………………………… vi
Introduction………………………………………………………………………….. 1
I. Current Situation
A. Performance………………………………………………………………….. 4
B. Strategic Posture……………………………………………………………… 6
a. Company’s Vision, Mission and Core Values……………………………… 7
b. Analysis of Mission and Vision Statement…………………………………. 9
II. Strategic Managers
A. The Board of Trustees………………………………………………………… 11
B. The President …………………………………………………………………. 13
C. The Vice Presidents……………………………………………………….…... 13
III. External Environment
A. Macro Environment…………………………………………………………… 14
B. Societal Environment…………………………………………………….…… 21
C. Task Environment…………………………………………………………..… 22
IV. Internal Environment
A. Corporate Structure………………………………………………………...…. 28
B. Corporate Culture…………………………………………………………..…. 29
C. Corporate Resources…………………………………………………….……. 31
V. Analysis of Strategic Factors
A. Internal Analysis…………………………………………………………….… 34
B. External Analysis……………………………………………………………… 34
C. SWOT Analysis…………………………………………………………….…. 35
VI. Strategic Alternatives & Recommended Strategy
A. Strategic Alternatives…………………………………………………………. 41
B. Recommendation……………………………………………………………… 42
C. Conclusion…………………………………………………………………..… 44
Bibliography………………………………………………………………………… 45
Appendices………………………………………………………………………..… 46
A. Consolidated Statements of Financial Position…………………………….… 46
B. Consolidated Statements of Comprehensive Income………………………… 48
C. Consolidated Statements of Cash Flows…………………………………...… 49
Curriculum Vitae………………………………………………………………….… 51
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ACKNOWLEDGEMENT

These past few months, our weakness became the problem. We became stressed, tired,

pressured, and we don't have enough sleep just to finish our study. But despite of those

weaknesses, this paper gave us more confidence and strengths. We can't finish this study

without the full support and love of those people that we love. Hence, we would like to give

thanks to the following:

To God Almighty who gave us faith and strength not to lose hope in finishing this

research.

To our dear Parents who are always there to support us financially, mentally and

emotionally.

To our professor, Mr. Bienvenido de Guzman who guided us all the way from the

beginning of this paper.

Thank you very much to all of you!

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CHAIRMAN’S MESSAGE

JFC: RESILIENT IN CRISIS, ADAPTIVE FOR STRONG RECOVERY

I am reporting to you the highlights of Jollibee Foods Corporation’s performance in 2019. I

would like first, though to say something about our present situation with the COVID 19

pandemic and what I think about what it means to our business.

The current crisis is quite significant: it affects every country in the world and practically every

industry and business. The economic engines of the world suddenly slowed down, many even

suspended in the past three months because of COVID 19. There was nothing like it before in

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our lifetime. It is natural for us−investors, management, employees, franchisees, suppliers, and

other business partners and stakeholders to be afraid about the present and our future.

But I would like to ask you, for a while to step back and look at the big picture and a longer

frame of time.

In 1983 and 1984, we experienced a serious political crisis in the Philippines, followed by a

big foreign exchange and economic crisis. The Philippine peso devalued by as much as 60%

versus the US dollar, foreign currencies became quite difficult to obtain as foreign and

even local investors brought their money out of the Philippines. Interest rate went up to 31%

as inflation rate reached 49%. In 1983, Philippine gross domestic product grew by only 1.9%,

and then declined by 7% in 1984. Many companies were struggling to survive, and some went

out of business.

At that time, Jollibee Foods Corporation was only five years old and had 13 stores and only

one Brand−Jollibee. We were very small at that time. In order to survive, we aggressively

reduced our costs, and also increased some of our prices even though people didn’t have

money at that time. It was very tough! I remember counting our cash to see if we would make

it through the tough times. But we survived. I had this belief that we should give our customers

more than they expected. I was thinking that we should not be greedy in our daily lives or

business; we just needed to strike the right balance by sharing the benefits with whomever we

were dealing with.

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True enough, our customers kept coming back to our stores and bought our Yum Burgers and

Chicken Joy! The company still made some profit, which was 70% higher than in previous

year. By 1985, our sales were higher than in 1983 by 207%, profit by 138% and our number

of stores had increased from 13 in 1983 to 28 by the end of 1985.

The rest as they say is history. JFC kept growing profitably, acquiring brands in the process

both here in the Philippines and abroad. There were several other crises since then, such as the

EDSA revolution in 1986, the Asian Financial Crisis in 1997, the World Recession caused

by the September 11, 2001 terror attack in New York City and the World Financial Crisis of

2008, which was followed by a global recession. In each crisis, JFC not only survived but grew

stronger afterwards.

Today, we are again facing an economic crisis triggered by a health crisis. The negative impact

of the pandemic on our business is quite significant as it is on practically all other businesses.

And it is quite different from other crises that we faced before. But if we take the right but

tough actions, we will recover once again, strongly as before.

We are actually in a much better position now to survive and prosper than in 1983 and 84 and

in subsequent crises. We have more brands now, a total of 15. We have close to 6,000 stores.

We are far more diversified− with 30% of our business coming from overseas. We have

presence in 34 countries. We have much larger and stronger financial resources. Most

importantly, we have a much stronger management team, organization and business partners.

We should, therefore, face the current crisis with resolve to take the right actions and with

confidence that not only we will survive this, but emerge stronger out of it!

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“These are times of great change but let me assure you that some things in JFC have

not changed. Our mission remains the same: to serve great tasting food bringing the

joy of eating to everyone! Our vision is still− to be one of the top 5

restaurant companies in the world!”

Let me now discuss the highlight in 2019 on building solid foundations for our long-term

growth.

In 2019 Jollibee Foods Corporation made significant investments to drive and support its long-

term growth. Our company successfully completed the acquisition of The Coffee Bean and

Tea Leaf® (CBTL) on September 24, 2019. Based in Los Angeles, California in the United

States, this acquisition is the largest in JFC’s history with an acquisition price of US$329

million covering more than 1,100 stores. It is also the most multinational with presence in 26

countries. In the fourth quarter of 2019, CBTL contributed 11% to JFC’s consolidated system

wide sales and increased international business’ contribution to 33% of worldwide system

sales. The acquisition increased JFC’s total store count to 5,971 worldwide. CBTL is now

JFC’s second largest business after the Jollibee brand. Combined with Highlands Coffee based

in Vietnam, JFC can now become an important player in the large, fast growing and profitable

coffee business market.

While we continued to build drivers for our long-term growth, JFC also continued to help

create value for the communities where we do business through the programs of the Jollibee

Group Foundation. The Farmers Entrepreneurship Program or FEP enabled smallholder

farmers to supply farm products to large companies like JFC. Since the program’s launch in

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2008, the number of participating farmer cooperatives grew from one to seventeen. Since 2009,

at least 7,000 metric tons of vegetables have been delivered to JFC, with farmers earning more

than Php300.0 million in sales. The members of these farmer cooperatives have been enjoying

increasing income and standards of living due to the Farmer Entrepreneurship Program.

The Busog, Lusog, Talino (BLT) School Feeding Program continued to support the

Department of Education’s school-based feeding program through the BLT School Feeding

kitchens. These kitchens are where meals are prepared following JFC’s nutrition, food safety,

and quality standards for hundreds of pupils per day. In 2019, 34 BLT Kitchens served over

28,000 pupils in 305 schools nationwide.

Access, Curriculum, and Employability (ACE) Scholarship Program, another program of the

Jollibee Group Foundation has provided educational assistance to more than 2,200

underprivileged Filipino youth so that they can access gainful employment and build

productive lives for themselves and their families. Among them are 500 scholars under Don

Bosco’s Technical Mechanical and Agriculture-related courses who graduation in 2019. The

pilot run of the Quick Service Restaurant Operations curriculum in partnership with the Anihan

Technical School was successfully completed with all 27 female scholars graduating.

JGF’s FoodAid program meanwhile supported more than 64,000people with food assistance.

They were those who suffered from natural calamities like the earthquakes that occurred in the

island of Mindanao in Southern Philippines.

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2019 was a very challenging year for JFC. It has turned out that the challenges that have arisen

in 2020 are even far greater! Nevertheless, I am very confident that our business and our

organization will continue to withstand and weather this storm and that we will emerge even

stronger out of these challenges. We had demonstrated this strength in previous crises. We will

once again demonstrate this strength in this crisis.

I would like to thank our management, employees, franchisees, suppliers and other business

partners for their commitment and contribution to our company in the past year. I would like

to thank my fellow Directors for their continued strong support and guidance. I would also like

to extend my gratitude to our customers and our loyal shareholders for their confidence and

continued support. The crisis and setbacks we are facing, however significant are temporary.

We shall create sustained long-term value for all our stakeholders.

These are times of great change but let me assure you that some things in JFC have not

changed. Our mission remains the same: “to serve great tasting food bringing the joy of eating

to everyone!” Our vision is still− “to be one of the top 5 restaurant companies in the world!”

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INTRODUCTION

Jollibee Foods Corporation widely known as Jollibee is a fast-food restaurant chain based

in the Philippines, founded by Tony Tan Cacktiong, a Filipino Chinese in year 1975. Jollibee

is also the name of their mascot, a large bee in a blazer, shirt and chef’s hat. Its pride is to serve

iconic fast-food meals such as the Chickenjoy, Yum burgers, Jolly spaghetti, Jolly hotdog, and

the Jollibee burger steak which are delivered in strict and committed adherence to high

standards as symbolized by F.S.C., which refers to food (F) served to the public that meets the

company’s excellence standards or it will not be served at all, the service (S) that is fast and

courteous and cleanliness (C), kitchen to utensils, that must be maintained at all times. With

its commitment to provide superior fast-food products that adhere to excellence standards,

Jollibee maintains its leadership position in the fast-food industry in the Philippines.

Jollibee‘s leadership position is exemplified by its exponentially rising revenues and

profits. In 2011, Jollibee reported that it garnered sales of P82.17 billion while net income

increased by 1.3 percent to P3.254 billion. Sales in the Philippines grew by 17.8% while those

abroad increased by 19% led by China with a growth of 27.5% and Southeast Asia and the

Middle East with 23.3% sales growth. Revenue and profits continue to rise for Jollibee,

solidifying its position as the number one fast food chain in the Philippines. It continues to

expand to new territories, as it seeks to increase its international presence in the next five years,

with the goal of generating 50% of its revenues from international operations.

However, Jollibee must look at how they will be catering diverse cultures with product

lines that are innovative and revolutionized, in sync with the ever-changing social trends, and

even with at this time amidst the covid19-pandemic. The challenge that the company would be

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facing are affected with marketing, sales, production, and even on how they will assess outside

preferences (comfort zone) especially the Filipino preference.

Therefore, this paper seeks to analyze and further improve the Jollibee Foods Corporation.

Even though Jollibee is already competitive enough to stand alone with the pressure to gain

success in this amidst pandemic, a strategic plan may be imposed to further recommend a

development to support them to stand in the industry. Jollibee already knew what the Filipino

preference in terms of taste of food but they would also uphold the ability to adapt or be flexible

to different cultures. Moreover, this strategic plan wishes to improve the company’s image that

is healthy and affordable which is to widen its business horizon towards the scale of

competitiveness.

Creating this Strategic management paper (STRAMA) is imposed towards the

formulation of strategies, probable implementation, and evaluation of Jollibee Foods

Corporation that can be useful and effective in the long-term basis in the management. Thus,

vision, mission, and core values of the Jollibee should be of help to formulate the strategy. To

further maintain its competitive advantage over its competitors and also to maintain being one

of the top-food company industry, carefully planned strategies should be formulated.

The completion of this paper are based on gathered relevant information to the official

website of the Jollibee corporation ( https://www.jollibee.com.ph/ ) to which the information

is in the year 2019, online reviews and PDFs. All the relevant information gathered are subject

to test analysis using different strategic and financial tools in order to project and assess a

financial projection of the strategies that is to formulate, implement and evaluate.

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COMPANY PROFILE

COMPANY HEADQUARTERS

Jollibee Plaza Bldg.

F. Ortigas Jr. Road (formerly Emerald Avenue)

Pasig City, Philippines

Telephone: (632) 634-1111

Website: www.jollibee.com.ph/

HUMBLE BEGINNINGS

In 1975, Tony Tan Cacktiong and his family opened a Magnolia Ice cream parlor from

Bankerohan, Davao City to Cubao with Jolibe as the original name. In 1978, Cacktiong and

his brothers and sisters engaged Manuel C. Lumba whose expertise is a service of a

management consultant which eventually became Tony Tan Cacktiong’s first business and

management mentor. Lumba suggested shifting the business focus from ice cream to

hamburgers, after his studies, showed that a much larger market was waiting to be an advantage

and re-formed the name Jolibe to Jolly Bee and made the two words to form a

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single name, changing the “y” to an “i” which became “Jollibee”. As of 2021, Jollibee is 43

years old company.

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 brand’s 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.

I. CURRENT SITUATION

A. Performance

It has been sawed in the year 2016 that JFC’s largest brand Jollibee achieved a strong

growth momentum while firmly entrenching its position in the hearts and minds of its

customers. Continued strong push on flagship products, service and product improvement as

well as network expansion were among the key factors that helped the brand to achieve a

double-digit system wide sales growth, even larger than the combined sales of its two biggest

foreign competitors. Jollibee opened a record 75 new stores in the Philippines in 2016 bringing

Jollibee’s total store network to 978. This is historically the highest number of stores opened

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in a single year. Moreover, third party research agencies also attested to increased market share

with Jollibee maintaining a significant lead over its key competitor in terms of brand value,

occasion share and penetration. 2016 was also the year of many digital wins for the brand

highlighted by the successful Kwentong Jollibee viral short films. Key digital marketing

initiatives like the Jollibee Viber stickers and the augmented-reality powered JolliDance

Showdown App made the brand strongly connect with the younger market.

Jollibee’s continued success is tied to its well-trained and motivated employees, which

currently total 40,000 people. Jollibee maintains pride in its employees and recognizes them

by providing the highest compensation and benefits packages in the fast food industry.

Employees profit from modern and comprehensive training programs. Managers are

consistently updated on the latest store operations systems and people-oriented management

skills. Service crews are trained on various aspects of store

operations and foodservice innovations. Jollibee recognizes that its employees are critical to

its overall success, as it continues to provide top-notch compensation, training, and benefits

packages that recognize the value of its employees to successful day-to-day operations. Jollibee

dedicates its continuous success to the Filipinos who have been there from the very start.

Jollibee is so well-loved that every time a new store opens, especially overseas, Filipinos

always form long lines to the store. Jollibee understands the Filipino taste and preference, as it

puts a distinctly Filipino flavor to common fast-food fare. For Filipinos, Jollibee is more than

home for them. It is a stronghold of heritage and monument of Filipino victory. As a corporate

citizen, Jollibee is committed to giving back to its host communities through meaningful and

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lasting socio-civic projects. Through the establishment of the Jollibee Foundation, the leading

fast food chain has led the way in providing feeding programs, scholarship grants, and skills

training to children and adults residing in depressed communities.

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 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.

B. Strategic Posture

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 -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.

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.

Jollibee’s principal business is the development, operation and franchising of quick-

service restaurants (QSR). It is an American-style fast food restaurant with Filipino influenced

dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes.

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COMPANY’S VISION AND MISSION AND CORE VALUES

In the midst of stiff competition, Jollibee remains committed to pursuing its desire to

create lasting and memorable moments with family and friends as it imparts the joy of eating

locally and around the world.

Vision

To be one of the Top 5 Restaurant Companies in the World

• All our brands are trusted and well-loved, craved around the world:

• Renowned for consistently great tasting food.

• Recognized for high value for money.

• Endeared for warm and sincere distinct service to our customers.

• Admired for our beautiful stores in excellent location.

• We are acknowledged as one of the Best Companies to Work for, regarded for our

efficient systems and processes, highly engaged teams and people-focused culture.

Mission

To serve great-tasting food, bringing the joy of eating to everyone.

Core Values

Through the years, JFC has formed its foundation from good business practices and strong

core values of Customer Focus, Speed with Excellence, Integrity, Spirit of Family and Fun,

Humility to Listen and Learn. JFC continues its steadfast commitment in upholding these core

values:

Customer focus

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II. STRATEGIC MANAGERS

A. The Board of Trustees

Board of Trustees is similar with Board of Directors. They are involved with the

management of the Jollibee Corporation. Other individuals may be elected or appointed based

on each expertise and experiences in areas involving the management of the organization.

Board of Trustees can have three to thirty individuals.

Tony Tan Caktiong

(Chairman)

Ernesto Tanmantiong
(President, Chief Executive Officer & Executive Director)

William Tan Untiong

(Secretary & Executive Director)

Joseph C. Tanbuntiong
(Treasurer & executive Director)

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Ang Chao Sit

Antonio Chua Poe Eng

Ret. Chief Justice Artemio Panganiban

Cesar V. Purisima
(Independent Director)

Cezar P. Consing
(Independent Director)

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B. The President

Ernesto Tanmantiong
(President & Chief Executive Officer)

C. The Vice President

Ysmael Villoso Baysa

(VP-Corporate Finance, Chief Financial Officer &
Compliance Officer

Chuan Hua Yang

(Vice President & Head- Research and Development)

Valerie Feria Amante

(Vice President & Head- Corporate Legal)

Marilou N. Sibayan
(Vice President & Comptroller- Worldwide)

Anastacia S. Masancay
(Vice President- Special Projects)

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