Dy Pen Ting, Carl

ODGE1
JOURNAL 1

Evaluate the effects of Market Integration in the Philippines based on its “pros” and “cons” in
the field of (1) Environment, (2) Financial services/Investments and (3) Supply and demand
for Community Organizations.

Market integration (M.I.) has its advantages and disadvantages depending on the type of
M.I. in this case, Jollibee Food Corporation (JFC) is both a vertical M.I. and horizontal M.I. JFC
has partnered with farmers to supply them crops straight from the harvest. JFC also has bought
several food brands like Chowking, Greenwich, Red Ribbon, Mang Inasal, etc. which makes
JFC a horizontal M.I.

In 2011, JFC joined the steering committee of the business climate action summit
organized by the Philippine business for the environment (PBE). The summit aims to encourage
companies to reduce emissions in transport energy, agriculture and reforestation, solid waste,
and sustainable cities. JFC has made changes by using eco-friendly paint formulations that do
not contain harmful chemicals. They also used fiber cement boards for asbestos-free walls and
ceilings, 100% recyclable, noncombustible, inorganic, and termite-proof. They also reduced
over 100,000kg of materials used in packaging by encouraging customers to lessen the usage
of plastic, like straws. Going green is indeed a good action to take, but it still has advantages
and disadvantages, it is clear that the advantages are helping the environment by lessening
pollution, saving energy, and protecting natural resources. The disadvantages are that it may be
time-consuming, and more expensive and the corporation may be isolated from others.

JFC has invested in the other food brands that they bought, namely Chowking,
Greenwich, Red Ribbon, Mang Inasal, Dunkin Donuts, Tim Ho Wan, ETC. They also have
invested in farmers in supplying them with raw materials, which include onions, tomatoes, bell
peppers, chili peppers, calamansi, etc. Merging or acquiring another company can decrease
costs experienced by companies while increasing the level of production or simply becoming
more efficient. The corporation would have a larger customer base, expanding the market
share. The disadvantages of horizontal M.I. would be that merging would narrow the competitive
market, leading to a monopoly. Employees are also a concern when there may be a chance of
the management laying off existing employees.

One reason Jollibee stands out from the rest is its understanding of Filipino taste.
Jollibee modified its menus according to the taste preference of its consumers. The advantage
of having high demand is the driving force behind it, this allows businesses to seek out goods
and services of the highest possible quality for the lowest possible price. The manufacturers
produce goods based on the demand that society requires, but the disadvantage of that is that
anything extra will either be sold at a discount or be destroyed. It also harms the environment by
giving less emphasis on it, if it means lowering the cost by dumping waste on nature.

Corporations like Jollibee food corporations need to find the balance between caring for
the environment and gaining income. JFC included being eco-friendly in their long term plan.
Their plan to acquire different food brands is right as it is within their expertise but decreasing
competition, it may also lead to a monopoly.
 REFERENCE:

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