JFC EFE Matrix STRAMA Group 3 PDF

University of San Carlos
School of Business and Economics

Department of Accountancy
EFE MATRIX: JOLLIBEE FOODS CORPORATION
CBMEC 2 - Strategic Management
Submitted to:
Allan O. Gozon, MBA
Submitted by:
Branzuela, Kryztel Di Marie D.
Buna, Alysza Jewel V.
Diasnes, Darvy Lou U.
Goden, John Lemuel M.
Ogue, Kate Brigitte F.
Sumalpong, Abigail B.
Timbal, Wryppner Wolter Wurbey R.
Tolo, Jessafel Monette G.
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RELEVANT CLASSIFICATION
Key External Factors YES NO O T
Increased development of shopping malls in provinces, 17 of
which are lined up for opening from 2020 to 2022 by SM Prime
alone
Growth of home delivery sales in the industry with expected
annual growth rate of revenue in online food delivery at 14.6%
The Filipino community outside of the Philippines is growing

(~10% of Filipinos are living abroad)
Per capita consumption of poultry rose to 15.6kg in 2018
By 2022, a production of more than 650,000 job posts in the
BPO industry is foreseen
Chicken production growth of 3.3% in 2020
Generation Z will represent about 33% of the global labor force
participation in 2030
Growing demand for fast-paced and convenient dining with 77%
Filipinos prefer dining out in fast food restaurants
Fast food chains launching grocery store versions of menu items
Fast food industry is projected to grow 2.5% in the coming years
The application of AI in drive-thrus resulted in a 10 to 25%
reduction in average wait time
Rising demand on self-service kiosks
"Bike and dine" in a rising trend after cycling surge in 2020
Rise of online market or e-commerce in the country during
COVID-19 pandemic
Increasing urbanization with 1.99% annual rate of change from
2015 to 2021
Increase in the number of users on various social media sites
86% of Filipinos are willing to pay extra for products and services
from companies committed to positive social and environmental
impact
Food and drinks expenditure expected to show a growth of 8%
annually
Steady growth in retail, foodservice and food processing
industries
Due to the pandemic, the middle class is expected to be 17.1%

of the global population, instead of 17.8%
RELEVANT CLASSIFICATION
Key External Factors YES NO O T
McDonald's Philippines plans to open new branches despite the
pandemic (spending increased to 600-700M for construction of
15 new stores in 2020)
Rising Inflation rate (3.5% in year 2020)
Philippine GDP shrinks 9.5% in 2020
Increase in the percentage of health-conscious individuals (54%
Filipinos regarded themselves as health conscious)
New normal regulations decreased customer traffic in stores
(255 stores closed in 2020)
Poultry-related outbreaks (PH culled nearly 39,000 chickens in
response to bird flu in July 2020)
Increasing risk of COVID transmission among employees
(approximately 14% are transmitted in the workplace)
Aggregate chicken demand is projected to increase to about 1.8
million MT by 2030
Unemployment rate reaching a record high of 17.7% in April
2020
Highly competitive product offerings and prices (79% of Filipinos
buy most value-for-money products)
Expansion of foreign chain restaurants in developing countries
like the Philippines
Compound annual growth rate of fast casual restaurants is
predicted to be 10.6% in 2021-2027
Employee turnover for fast food chains is high at 130% to 150%
Weighted
Key External Factors Weight Rating Score
OPPORTUNITIES
1. The Filipino community outside of the Philippines is growing -
The number of Filipino immigrants is continuing to grow and in 2017
alone, there are many Filipinos, approximately 4 million, residing in
the United States alone.
0.04 3 0.12
2. Fast food industry is projected to grow 2.5% in the coming years
- It is projected that the fast-food industry will increase by 2.5% in
2022 and it is expected to continue to grow in the next years to come.
0.09 4 0.36
3. Generation Z will represent about 33% of the global labor force
participation in 2030 - It is reported that another generation will
begin to dominate the global workforce starting 2030, resulting in a
majority of the workforce being composed of two generations with
different preferences when it comes to product purchases.
0.08 3 0.24
4. The application of AI in drive-thrus resulted in a 10 to 25%
reduction in average wait time - AIs are used by fast food chains to
speed service offering. It reduced stress to employees and increased
accuracy in order taking.
0.10 3 0.30
5. Growing demand for fast-paced and convenient dining - In the
Philippines, 77% Filipinos prefer take-out instead of dining-in is fast
food restaurants.
0.05 3 0.15
6. Production of job opportunities in the BPO industry - By 2022, a
production of more than 650,000 job posts in the BPO industry is
foreseen.
0.03 1 0.03
7. Increasing urbanization - From 2015, there is a 1.99% annual rate
of change with regards to the urbanization that the country is facing.
0.07 2 0.14
8. Increased development of shopping malls in province - Despite
the pandemic that plunged the country’s economic status, SM Prime
will push through with opening 17 shopping malls in provinces and are
lined up for opening from 2020 to 2022.
0.05 2 0.10
9. Chicken production growth of 3.3% in 2020 - In the Philippines,
production of chicken grew 3.3% in 2020 and it accounted for 14.9%
of total production.
0.05 2 0.10
10. 86% of Filipinos are willing to pay extra for products and
services - In a survey conducted by Consumers Association of
thePhilippines, 86% of Filipinos are more inclined to pay an additional
amount of money to companies that are committed to positive social
and environmental impact to society.
0.03 1 0.03
THREATS
11. McDonald's Philippines plans to open new branches - McDonald
Philippines’ spending has increased to 600-700M for construction of
15 new stores in 2020 despite the economic consequences of the
pandemic.
0.02 1 0.02
12. Aggregate chicken demand is projected to increase -In the
Philippines, the aggregate demand for chicken is projected to
increase from about 1.4 million MT in 2017 to 1.6 million MT in 2020
to about 1.8 million MT by 2023 with the drivers for growth being a
combination of income and population growth.
0.02 2 0.04
13. Highly competitive product offerings and prices - In a highly
competitive market, 79% of Filipinos buy most value-for-money
products and it is one of the factors that influence Filipinos to buy
certain products.
0.04 4 0.16
14. Increasing risk of COVID transmission among employees -
Workplace common areas is said to be the main cause of the
increasing COVID cases in Metro Manila. Approximately 14% are
transmitted in the workplace.
0.07 3 0.21
15. Rising Inflation rate - The Philippine Statistics Authority said inflation
rose to 3.5% in December, which is higher than the 3.3% posted in
November.
0.05 2 0.10
16. Philippine GDP shrinks in 2020 - The Philippine Statistics Authority
reported that the country's gross domestic product shrank 9.5% last
year -- the first annual contraction since 1998 -- a year after the Asian
financial crisis erupted.
0.05 3 0.15
17. Increase in the percentage of health-conscious individuals - In
the Philippines, 54% Filipinos regarded themselves as health
conscious due to the increasing health awareness even before the
pandemic.
0.04 1 0.04
18. New normal regulations decreased customer traffic in stores - In
2020, 255 stores have closed due to the decreased number of
customers brought about by the increase in lockdown regulations and
overall decrease in income.
0.05 3 0.15
19. Poultry-related outbreaks - In the Philippines, nearly 39,000
chickens in response to bird flu was reported in July 2020 and this
resulted in consumers being more wary of poultry consumption.
0.04 1 0.04
20. Rise of fast casual restaurants - The compound annual growth rate
is predicted to be 10.6% for the years 2021-2027 which will mean
entry of new restaurants and potential competitors.
0.03 3 0.09
Total 1.00 2.57
Analysis:
The tables shown above indicate the EFE Matrix of the Jollibee Foods Corporation
wherein it presents in tabular form different key factors, both internal and external, that affect the
overall performance and give bearing to the operations of the company.
The first table shows the variables that are being classified whether it is a relevant factor
or an irrelevant one that may or may not cause harm to the company or bring positive effects.
Certain circumstances and events are causing changes to JFC such as increase in
unemployment rates, rapid integration and increase in demand for deliveries in the fast food
chain markets, and even the increase in number of users in social media sites, yet these
phenomenal changes may either pose a threat to the company or give rise to any opportunity
but do not cause any significant changes in its operations that will either put the company to a
very difficult situation or in the pedestal of the fast food chain industry.
Finally, the EFE Matrix in the last 2 tables shows the weighted scores of opportunities
and threats of each classified factor. For opportunities, the highest weighted score is given to
the emergence and application of AIs (Artificial Intelligence) or robotics in the operations of JFC.
This opportunity gives rise to a top tier advantage of the company given the current market
conditions and situation wherein the pandemic gives both a disadvantage and an advantage to
certain companies which in this case, JFC. integration of AIs in the day to day operations of JFC
especially in this pandemic setting gives the company an opportunity to reduce risks of the virus
transmission for certain operations and activities of the fast food company such as physical
contact for receiving orders and handing out food items. This AIs could help in allowing and
encouraging more drive-thrus to help lessen physical contact with employees and even to other
customers. Also, this opportunity lessens service costs such as salaries and wages of
employees which will be put to minimum for certain machines and technology will be used in
replacement for their service. The unemployment rate of fast food chains may affect the
economy macroeconomically, but it will be an advantage for the company in itself.
Threats are external forces that may adversely affect the success of a company.
Identifying threats can help expose barriers to success and position companies to develop
strategies to overcome them. The biggest threat for Jollibee is the increasing risk of COVID
transmissions. Jollibee has been increasing at a constant rate until COVID hit which
detrimentally affected their sales, their operations, and their workforce. Threats bearing similar
weights are rising inflation rate, decrease in GDP, and new normal regulations decreasing
customer traffic in stores, all related with the emergence of the pandemic. Highly competitive
product offerings and prices from competitors also pose a significant threat as most Filipinos are
price conscious and are always looking for value-for-money purchases considering the huge
amount of choices in the market. Additionally, Jollibee is at the disadvantage in terms of the
increase in the percentage of health-conscious individuals, a threat which they can combat
through introducing new items in their menu targeting this particular customer segment.
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University of San Carlos

School of Business and Economics

EFE MATRIX: JOLLIBEE FOODS CORPORATION

CBMEC 2 - Strategic Management

The Filipino community outside of the Philippines is growing

Increase in the number of users on various social media sites

Due to the pandemic, the middle class is expected to be 17.1%

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