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Written Analysis of a Case

Jollibee Foods Corporation

Submitted by:
Cerbolles, Regine L.
Guillen, Gemima A.
Lambayon, John Glenn L.
Mariano, Francis Cedrick T.
Mayormita, Gerryck R.
Pascual, Jedda D.

Submitted to:
Prof. Renante T. Timajo, MBA
Point of View
In the pursuit of corporate strategies, the group is stepping in the shoes of Jollibee
Chief Executive Officer, NAME HERE. This is decision is primarily grounded on the
following reasons: (1) the CEO has the necessary breadth of autonomy and authority to
establish corporate level strategies and (2) the CEO has the responsibility for the
sustainability of the company through implementing said strategies. Ergo, it is imperative,
in pursuing corporate level strategies, that the CEO should be primarily responsible, or at
least be a leader, in the formulation of strategies that are bound to affect the entire
organization.

Statement of the Problem


How can Jollibee successfully broaden their global reach through
Case Objectives
After thorough discussion and debate, the group has decided on the following case
objectives:
Areas of Consideration
SWOT Analysis
Strengths:
1. Heavily diversified as a company with whole ownership of several brands in the
Philippines, not to mention strong brand identity among Filipinos
2. Unprecedented growth in sales with annual average growth (AAG) of 14% and
AAG of 10% in number of stores
3. Strong foothold in the Philippine markets: 55% of the quick-service restaurant
market and 70% of the burger-based meals market
4. Commitment to meeting high standards (FSC Commitment) and relatively higher
compensation for employees with management opportunities for qualified crew
members
5. Top-of-mind characteristic of Jollibee, a household name in the Philippines
6. Relative advantage over global competitors from concentrating on the Philippine
market (i.e. virtually no competition in several geographic locations)
Weakness:
1. Jollibee rated low, among patrons, in terms of “Faster Service”, an attribute
highly regarded among Filipinos
2. Poor performance in the international arena; only 2% AAG in number of stores
(ignoring Yonghe King acquisition)
3. Failure of Tomi’s Teriyake and other unsuccessful ventures into the international
market may prove management’s current inability to handle global markets
4. Filipino-centric and -tied operations and management hampers global
adaptability
5. Excessive franchising; more franchised than owned stores
Opportunities:
1. Rise of the middle-income earners in the Philippines
2. Accolades in the international arena such as 2004 World Entrepreneur of the
Year and recognition as one of top Asian companies by Forbes, Asian
Business and Far Eastern economic Review enabling Jollibee Foods
Corporation (JFC) to be globally known
3. Strong economic growth in the Philippines and improving business climate in
recent years
4. Filipinos give significant importance to affordable, faster service and
accessible attribute for fast-food market
5. Global markets are now more open for trade and business compared to the
past
6. Filipino culture of eating together with family and friends
7. Growing market for Chinese food in Indonesia and potential for expansion in
China
Threats:
1. McDonald’s, one of Jollibee’s main competition, is recognized as one of the
world’s largest quick-service restaurant chain
2. Philippines’ attractiveness for other global players for expansion such as
KFC, Wendy’s, Burger King and Pizza Hut
3. Growing trend over healthy lifestyle in the Philippines and other countries in
the world
4. Unique geographical structure of the Philippines with its many islands
5. Nil or minimal customers’ cost to switch from one fast-food chain to another
6. Price uncertainties in the cost of raw materials and other inputs in the fast-
food industry
Porter Analysis
Rivalry Determinants (Intensity of Rivalry)
Bargaining Power of Suppliers
Bargaining Power of Buyers
Barrier to entry
Threat of substitute
Alternative Courses of Action
Internal Factor Evaluation
Weighted
Key Internal Factors Weight Rating
Score
Strengths
1 Several ownership in different brands with strong
0.11 4 0.44
brand identities
2 14% and 10% annual average growth (AAG) in
0.06 3 0.18
sales and stores, respectively
3 Strong foothold in the Philippine markets 0.13 4 0.52
4 FSC Commitment and high employee
0.08 4 0.32
compensation
5 Jollibee, a household name in the Philippines 0.11 3 0.33
6 Relative advantage over global competitors from
0.09 3 0.27
concentrating on the Philippine market
Weaknesses
1 Jollibee rated low in “Fast Service” among patrons 0.12 2 0.24
2 Poor performance in the international arena 0.08 2 0.16
3 Failure of ventures into the international market
may prove management’s current inability to handle 0.07 1 0.07
global markets
4 Filipino-centric and -tied operations and
0.10 1 0.10
management hampers global adaptability
5 Excessive franchising; more franchised than owned
0.05 2 0.10
stores
Total 1.00 2.73
External Factor Evaluation
Weigh
Rati
Key External Factors Weight ted
ng
Score
Opportunities
1 Rise of the middle class 0.05 4 0.20
2 International accolades promoting brand awareness 0.04 1 0.04
3 Philippines’ strong economic growth and improving
business climate 0.08 4 0.32
4 Filipinos give significant importance to affordable,
faster service and accessible attribute for fast-food
market 0.06 3 0.18
5 Global markets are now more open for trade and
business compared to the past 0.12 2 0.24
6 Filipino culture of eating together with family and
friends 0.11 4 0.44
7 Growing market for Chinese food in Indonesia and
potential for expansion in China 0.11 3 0.33
Threats
1 McDonald as a competitor 0.06 4 0.24
2 Philippines’ attractiveness for other global players for
expansion 0.06 3 0.18
3 Advocacies in healthy lifestyle in the Philippines and
other countries in the world 0.05 1 0.05
4 Unique geographical structure of the Philippines with
its many islands 0.03 4 0.12
5 Nil or minimal customers’ cost to switch from one
fast-food chain to another 0.12 3 0.36
6 Price uncertainties in the cost of raw materials and
other inputs in the fast-food industry 0.11 4 0.44
Total 1.00 3.14
SWOT Matrix

Mission: We bring great taste and Strength: Weakness


happiness to everyone 1. Ownership of several brands 1. Rated low in terms of “Faster
Vision: Become the most dominant and 2. Sales and stores growth Service”
best tasting QSR… the most endearing 3. Strong foothold in Philippines 2. Poor international
brand that has ever been… we will be 4. Jollibee’s “Top-of-mind” performance
within reach of every Filipino… 5. 3. Too Filipino
6. FSC Commitment 4. Excessive franchising
7. Advantage over global
Business Model: Quick Service Restaurant competitors because of focus in
Philippine markets
Opportunity S-O Strategy: S1, S2, S5 & O2, O5, W-O Strategy:
1. Rise of middle-class O7
2. International accolades GLOBAL CRUSADES: FAST FOOD = FASTER
3. Philippines’ strong economic growth ACQUISITION & EXPANSION SERVICE
4. Filipinos want affordability, faster
service and accessibility
5. More global market opportunities
6. Filipinos and their family-values
7. Growing market for Chinese food
Threats S-T Strategy: W-T Strategy:
1. McDonald’s REPOSITION AND COMBINE DIVESTITURE
2. Philippines’ attractiveness for global STORES: OVERPOWERING
players COMPETITORS
3. Growing trend over healthy lifestyles
4. Philippines’ unique geographical
structure
5. Customers’ little to no switching costs
6. Price uncertainties over inputs
Evaluation of Alternatives
Strength-Opportunity Strategy 1: Global Crusades: Acquisition and Expansion
1. Ownership of several brands
2. Sales and stores growth
3. Strong foothold in Philippines
4. FSC Commitment
International accolades
More global market opportunities
Growing market for Chinese food
Jollibee Foods Corporation has yet to transcend and fully become a multination
company, a corporation without borders. Largely, it is still a Filipino company with the bulk
of its sales and operations, stores and customer base within the archipelago. There were
previous attempts, but they have not successfully catapulted the company in the
international arena to battle multinational behemoths.
Over several decades, JFC has already penetrated and buried itself deep within
the Philippine market, to the point that Jollibee has already become a household name.
However, as is the case for Kodak and Nokia, move too slow and act too little, decades
of dominance can become valueless. It is to the best interests of the corporation that they
not only sustain their chokehold on the Filipino markets but also slowly creep into
international waters.
Since it is sweeter the second time around, Jollibee should once again pursue
expansion in the international markets. After learning valuable insights into managing in
foreign lands, JFC should be equipped with the necessary knowledge to drive their growth
exponentially. A daunting task it may be, however, but this is the most feasible option for
Jollibee if they want to flourish (there being no more mountains to climb in the Philippines).
It is important that Jollibee leverages on

Advantages Disadvantages
1. 1.

Strength-Threat Strategy 1:

Advantages Disadvantages
1. 1.
Weakness-Opportunity Strategy 1:

Advantages Disadvantages
1. 1.

Weakness-Threat Strategy 1:

Advantages Disadvantages
1. 1.
Recommendation
Upon careful deliberation and consideration of the four alternatives, the group has
chosen…
Implementation

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