Jollibee Foods Corporation

Part III: Pestle Analysis

POLITICAL ECONOMIC

P1 - Transition of Government and E1 - Inflation Rate

Changes in Policy
E2 - Unemployment Rate
P2 - Segregation of Political
Responsibilities between Different E3 - Workforce Productivity
Government Agencies and Units
E4 - Consumption Patterns
P3 - Data Protection Law
E5 - Greening the Business
P4 - Consumer Protection Law /Health
and Safety Laws

P5 - Health and Safety Laws

SOCIO-CULTURAL TECHNOLOGICAL

SC1 - Demographics T1 - New and Up to Date Technologies

SC2 - Family Size and Structure
SC3 - Product Preferences
SC4 - Health and Lifestyle
SC5 - Rush Hour
T2 - Jollibee Delivery / Online Sales
T3 - Online Presence
T4 - Empowerment of Supply Chain
Partners
T5 - Payment Gateways and Incentives

POLITICAL

P1 - Transition of Government and Changes in Policy

● The Philippines has been a stable democracy for the past several decades and the
company will continue to enjoy the benefits of smooth transition of power and policies.
● There are no major risks to be considered at this stage of operations.
 ● Nonetheless, the upcoming 2022 elections will mean a change of office, and in turn, a
potential change of policy. It is essential to prepare for whatever the results of these
elections will bring.

P2 - Segregation of Political Responsibilities between Different Government Agencies

and Units
● The Philippines has decentralized functions across various agencies. This enables the
business to comply with the laws and regulations required by these departments. (For
eg; Labor, Agriculture, Environment, BIR, etc).
● Business companies work hand in hand with the government to diminish the risks and
future problems of a company.
● By doing so it would be easier to identify the problem and find a solution for existing
problems and resolve future problems that are anticipated by the company.
● Moreover, due to the structure of the Philippine Government, policies and regulations
may differ in various districts and regions. Thus, it is important for each store to work in
compliance with the policies of the respective LGU they are operating under.

P3 - Data Protection Law

● As the company transitions into digital marketing for sales and delivery it will need to
address the various Data Privacy laws of the country.
● It is the duty and responsibility of the company in all means, to protect every data given
by the customer.
● Following data protection law will ensure safety and protection to personal data given by
the customer.

P4 - Consumer Protection Law

● It is an important factor that every food consumed by customers is safe.
● Finding ways to sustainability, by regulating clean water and healthier ways to cook
food. Maintaining well packed orders in clean reusable containers.
● Regular visits in the company/restaurants through inspection of sanitation and taste
tests.

P5 - Health and Safety Laws

● The employees health concern is the company’s concern as well. Since the employees
play a big role in the growth of the business, it is important to ensure that every
employee’s health and safety are well observed.
● Implementing training grounds for employees such as drills and safety and
precautionary measures is needed for practice and in case of any emergencies.
● Ensuring every employees’ mental and physical well being is a must. Exposing them to
different departments to help broaden their knowledge will help open doors and
opportunities for them.
 ● Having an open communication with peers and managers will help build trust and form
stronger relationships.

ECONOMIC

E1 - Inflation Rate
● Higher inflation rate means increased prices of products and services. This
would only result in a decreased number of customers, as well as lower
disposable income.
● Having a stable inflation rate will help the company analyze customer’s spending
trends.
● A stable inflation would also boost the consumer’s confidence in the business
resulting in a higher rate of brand loyalty.

E2 - Unemployment Rate
● A number of poor labor forces results in a lack of manpower and service. To
compensate for the lack of manpower there would be a need for a higher
inflation rate which would result in a decreased number of loyal customers.
● It also includes decreased knowledge, skills and practice of one’s company which
could also harm customer’s safety.

E3 - Workforce Productivity
● Hiring talented and knowledgeable employees is an asset to the company as it
will boost the company’s success through improved services.
● Having skilled employees will leave a positive impact on the customers resulting
in good restaurant reviews and increased visit rate in the restaurant.
● Increased rate of skilled workers result in an easier workflow in the restaurant.

E4 - Consumption Patterns
 ● Knowing the customer’s spending habits is essential and a crucial part of
determining a company's performance.
● Having up-to-date data of customer’s spending habits will help supply what is
lacking in the company may it be lack in service, lack in quality of food or poor
sanitation.
● Knowing the consumer’s consumption patterns determines how often customers
consume Jollibee products in a week.

E5 - Greening the Business

● There is growing pressure on listed companies to improve their sustainability and
environmental considerations.
● The company will have to adapt to improved green packaging, recycling efforts
and lessen their carbon footprint from logistics and use of electricity.
● Use of green fuels for their kitchen and water recycling efforts will have to be
considered.

SOCIO-CULTURAL

SC1 - Demographics
● It is important for the company to study the demographics because that would
help them identify their customers/ individuals to be able to alter their specific
goals on particular segments based on their customers.
● Mostly the company’s consumers are part of the younger population, families as
well as those who are in the social classes of B, C and D which is beneficial to the
company because it gives them a larger consumer base.
● Specific social classes such as working to the upper middle class is also
important for the company to consider because this group would stand as their
daily brand advertisers which would influence the younger population to continue
and become loyal customers of the company.
 ● Analyzing these demographics enables the company to better manage and
adhere to customer expectations, in regards to the quality of service, product,
and ambiance.

SC2 - Family Size and Structure

● Each company must study the family and size structure of their target
consumers because this would help them understand their customers’
consumption patterns.
● It would be beneficial for companies’ current market to target the population in
groups or families with young children.

SC3 - Product Preferences

● Each country’s social and cultural preferences differ from one another. JFC must
study the social and cultural of each country that they decide to target in order to
meet their consumers’ desires. For example, Jollibee in the Philippines has this
concept “langhap sarap” which is popular among Filipino consumers but this
doesn’t mean it would also work with foreign consumers and the global market.
● To be specific, it is important for the company to consider a Filipino palette such
as having rice meals and sweetened spaghetti sauce as most Filipinos love
anything that is sweet.

SC4 - Health and Lifestyle

● Since the rise of the fast food chain industry, the number of obese children and
adults since 2019 had gone up to 2.5% and these could lead to different diseases
like diabetes. Today, people change their diet and lifestyle into a healthier one
more because of new diseases, the society specifically, social norms and trends.
It is crucial for the company to follow and adjust to the lifestyle of its consumers
to maintain the company’s growth. Adding healthy choices on their menu such as
fruits, salads would be acknowledging the trend of consumers.
SC5 - Rush Hours
● There are certain points in the day where in-store customer traffic and Drive-Thru
car traffic is more evident, during which the store becomes increasingly
congested, and wherein customer service slows down.
● As a result, there is a loss of potential customers, as they can be easily
discouraged by long lines and waiting times.
● By anticipating the time and duration of these rush hours, the business can
adjust itself to be able to better serve customers during the busiest times of the
day. Implementing a more efficient system of operations, and in turn enabling the
business to provide more service to more people.

TECHNOLOGICAL

T1 - New and Up to Date Technologies

● Companies must be updated with the technologies today. For them to
continuously grow in business, they must keep up with new technologies that will
be able to improve their quality in service and production. This would help them
keep up with their customer’s wants, and maintain good service.

T2 - Online Sales
● With the introduction of new technologies came the ability to buy products that
were once out of one’s reach, with a single tap on a mobile device. Because of
this, a lot of businesses have expanded themselves by selling their products and
services on the online market. Along with this also came the ability to order
deliveries through these online markets.
● Due to the pandemic, this trend has rapidly increased over the last few years.
● On that account, it is essential for companies to establish a fast and efficient
online delivery service, on par with its competitors, or it will lose its lion’s share of
the market. Additionally, this will enable them to sell more products, keep up with
demand, and potentially decrease store traffic / congestion.
T3 - Online Presence
● Today, an online presence is essential to the growth of a business, as this
functions as a portal through which customers and potential business partners
alike can gather information on a company, and what it has to offer.
● Thus, it is crucial to maintain an official business website because it is the first
platform through which those customers and potential business partners are
likely to learn more about the company as well as their products and services. It
would also help companies reach out to the aforementioned parties above in the
future.
● Continual improvement of the website must also be done every once in a while.
Not only to keep it up to date, but to allow customers to voice out any concerns
and opinions they have regarding the company’s service.
● Naturally, beyond improving the basic functionality of the website, its design
must also be taken into consideration. Design trends change over time, and a site
that does not keep up with these trends tend to lose their appeal as well.
● Moreover, beyond an official website it is also important to maintain an online
presence through social media, as it is one of the main platforms for advertising
business in the modern age.
● Companies can use social media marketing for collecting data such as
feedbacks, reactions from their consumers. They may also use this to interact
and communicate with customers through their official social media accounts.

T4 - Empowerment of Supply Chain Partners

● With the emergence of advanced technology, it is crucial that the company must
take advantage of its technology to empower supply chain partners.
● Finding great tools such as artificial intelligence (AI) and machine learning (ML)
is very handy in both planning and decision making. In this way, human error is
minimized and delivery of goods is much faster.
 ● Bartering of goods and services would be much more effective and flexible when
technology is maximized.

T5 - Payment Gateways and Incentives

● Adapting to new technologies for orders and payments such as automated order
screens, E-Wallets/Debit cards/Loyalty cards can help the company to create
faster transactions, foster customer loyalty and repeat business.
● Moreover, achieving this can attract a larger consumer base by including the
support of payment systems such as GCash in the Philippines, WeChat and
Alipay in China. As an ever-increasing number of the population in both countries
continue to rely on these systems alone.
● The database for consumer patterns and trends can be translated to developing
new products and services (birthdays, school reunions, out of town gatherings
etc).

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