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Jolibee analysis

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Category: Social Issues

Autor: moto 28 February 2011

Words: 2572 | Pages: 11

Case Study about

Submitted by:

Ablaza, Mathew Jowen

Ditablan, Patricia Angelique

Garilva, Girlie

Hernandez, Jovic Anne

Sy, Milea Chim

I. Introduction

The company that has been chosen for this case study is Jollibee Foods Corporation. Tony Tan Caktiong is the president of Jollibee Foods Corporation. Jollibee began as a two-branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept and now it becomes one of the fast-food major from the Philippines. The Jollibee mascot was inspired by local and foreign children's books. Lumba created the product names "Yumburger" and "ChickenJoy Jollibee became the first food service company to be listed in the Philippine Stock Exchange.

The business strategy of Tony Tan Caktiong in his own words is: "Ordinary people with extraordinary achievement". Jollibee enjoyed so much success that it got to its head and it started making all sorts of problems. ".

II. Objectives

A. Mission and Vision Jollibee Foods Corporation

B. Success story of Jollibee in the Philippines.

C. Franchise Jollibee

D. The issue of Jollibee earthworm patties

E. The issue Jollibee beating McDonalds

III. Contents

A. Facts

Values-Mission-Vision

Values

• Customer Focus

• Excellence

• Respect for the Individual

• Teamwork

• Spirit of Family and Fun

• Humility to Listen and Learn

• Honesty and Integrity

• Frugality

Mission

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

Vision

We are the best tasting QSR..

The most endearing brand...

that has ever been...

We will lead in product taste at all times...

We will provide FSC excellence

in every encounter...

Happiness in every moment...

By year 2020, with over 4,000 stores worldwide,

Jollibee is truly a GLOBAL BRAND. (and the Filipino will be admired worldwide) To be able to know on how to franchise a Jollibee Restaurant.

Serving The Franchises

Almost half of Jollibee's stores in the Philippines were franchised. The company gave special attention to the selection of franchising partners. According to company sources, all prospective partners were evaluated on their standing the community, their leadership and people-handling skills, their willingness to devote time to the management of the restaurant, and their successful completion of the training program [much before the outlets became operational, franchises were given training under a Basic Operations Training Program (BOTP)]. Jollibee's franchising partners had to invest between P15 and P30 million, depending on the size of the store and the facilities provided.

Success story of Jollibee in the Philippines

Jollibee is a phenomenal success story: what began as a two-branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. Thus was born the company that revolutionized fast food in the Philippines.

In 1984, Jollibee hit the P500 million sales mark, landing in the Top 500 Philippine Corporations. In 1987, barely 10 years in the business, Jollibee landed into the country's Top 100 Corporations. It became the first Philippine fast food chain to break the P1 billion sales mark in 1989. In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus broadening its capitalization and laying the groundwork fo r sustained expansion locally and beyond the Philippines.

Undisputed leadership

As the country's leading fast food chain, Jollibee has grown exponentially on all aspects on operation. From a handful of stores 32 years ago, Jollibee now boasts of more than 600 stores and over 50 international stores.

Expanding market coverage

To achieve its long-term goal to be the country's food service leader, Jollibee acquired Greenwich Pizza in 1994. A year later, the company obtained the franchise of Delifrance, an international food company. These moves expanded Jollibee's penetration in the pizza-pasta and French caf魢akery segments. In 2000, the strategic acquisition of Chowking solidified the company's position as the dominant leader. The move gave it leadership in the Oriental quick-service restaurant segment.

Recipe for success

Jollibee's rapid growth is due to its superior menu line-up, 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.

As a corporate citizen, Jollibee is also committed to give back to its host communities through meaningful and lasting socio-civic projects.

A triumph for and of the Filipino

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

Jollibee is so well-loved everytime a new store opens, especially overseas, Filipinos always form long lines to the store. It is more than home for them. It is a stronghold of heritage and monument of Filipino victory.

The Recipe for Success

Jollibee attributed its growth over the years to its efforts towards establishing a superior manufacturing and logistics framework; to the extra attention paid to the menu; to its marketing efforts; to Tony's strong leadership; and to its focused approach towards globalization. According to an article in the Asian Business Review, Jollibee also owed its success to its constant attention to three crucial issues: innovation, testing and piloting...

Operational Excellence

On the operational front, Jollibee's quest for excellence reflected right from the stage of construction of new outlets. The company used pre-fabricated material to construct stores, thus saving a substantial amount of time and money.

Jollibee had two commissaries located in Pasig City and Mandaue City. While the Pasig commissary catered to the Luzon area, the Mandaue commissary looked after the needs of the Visayas-Mindanao area. These two commissaries handled activities such as raw material and ingredient planning, warehousing, manufacturing of processed foods, distribution and logistics...

Serving The Customers

At Jollibee, customer service was given a lot of importance. In fact, customer service was one of the key result areas (KRAs) on which employees were evaluated at the company. The importance given to this issue was also reflected in the company's corporate mission and vision statements (Refer Table I for Jollibee's values, mission and vision statements). The company advertised extensively through the print as well as the electronic media. While the national-level campaigns were handled centrally, local promotions were managed and implemented by individual stores...

Serving The Employees

At Jollibee, employees received extensive training so that they could learn the corporate values of integrity and humility. The company reportedly had a 'family-like' atmosphere at work, which gave the employees a sense of belonging and togetherness. Not surprisingly, Jollibee was ranked 16th in Asia and 1st in the Philippines in a 'best employers' survey conducted by Hewitt Associates, The Asian Wall Street Journal and FEER in September 2001. Claro F Certeza, Jollibee's Vice President (Corporate Affairs), said, "The high engagement scores garnered by Jollibee could well be a reflection of the symbolic relationship between management and employees where performance is seen as something that would ultimately rebound to everybody's growth and societal improvement..."

Serving The Country

Jollibee supported many social causes in the Philippines. It worked with various government agencies to provide services such as immunization and medicine distribution. It also took part in polio-eradication programs. In association with the country's Social Welfare Department, Jollibee employed many hearing-impaired youth at its stores. Jollibee conducted a toy and book collection drive named 'Ma-Aga ang Pasko sa Jollibee' to give gifts to underprivileged children across the Philippines...

Leadership

According to company watchers, Jollibee's success would not have been possible without a person like Tony at the helm. Not content with expanding the business from a strategic perspective, Tony involved himself in the business at the grassroots level, to the fullest extent possible.

For instance, he regularly participated in the weekly meetings held to test new products and product-variants. He also frequently visited various Jollibee stores, ensuring that decisions taken at the board-level were actually implemented at the store-level. This hands-on style laid the foundations of a confident, happy and fun-filled corporate culture at the company...

Globalization

Jollibee's decision to expand globally seemed to have been necessitated partly by the economic recession plaguing South East Asian countries in the late 1990s. While McDonald's decided to 'slow down' within the Philippines, Jollibee seemed to have adopted a dual approach - continue expanding internally in a limited way while exploring the option of tapping new countries. Tony said, "In the light of the shifting competitive environment, we have taken a broader, more global view of our business. We are leveraging the preeminent position of the Jollibee concept and our mastery of food- service technologies to cater to more market segments..."

B. Issues

Jollibee Vs McDonalds - Filipino burger kings fight against global giant

What's the first name that comes to your mind when someone asks about fast-food restaurant? Most probably, it is McDonald's, the world's largest food service organization. McDonald's holds more than 40% share of the US fast-food burger market, many times the share of its nearest competitor. However, if you ask the same question in the Philippines, the answer that you'll get will be Jollibee.

Jollibee Foods Corporation is not a household name when it comes to the global market. But in the Philippines, it's the king of the burger market. One industry analyst said "if McDonald's is the Goliath of fast food, Jollibee is its Filipino David."

The rivalry between Jollibee and McDonald's looks like no contest. McDonald's has more than 31,000 outlets in more than 100 countries out of which 3,000 outlets are in Asia. Jollibee has only 600 outlets and over 50 international outlets.

But despite these numbers, in the Philippines, small Jollibee has humbled the global giant. Jollibee has captured more than 65% share of the hamburger market in the Philippines. This is more than half of the fast-food market as a whole and about twice McDonald's sales in the country. Its revenues are growing rapidly and profitably. They claim that they are the undisputed leader of the fast-food market in the Philippines.

Their secret is Smart Niching. Jollibee concentrates on serving the unique tastes ofFilipino consumers whereas McDonald's exports largely standardized fare to consumers around the world.

Both Jollibee and McDonald's offer cleanliness, fast service and convenient locations.Jollibee's Champ burger competes with the Big Mac and its Peach Mango Pie replicates McDonald's Apple version.

However, Jollibee's menu and flavors are specially suited to Filipino tastes. The local chain cooks up sweet, spicy burgers and serves seasoned chicken and spaghetti with sweet sauce, the way Filipinos like it.They serve these meals with rice or noodles and not with French fries.

Jollibee beating Mcdonalds

McDonald's is clearly the most successful fast-food brand in the world, with annual sales around $30 billion. It dominates most markets by providing customers with consistent product quality and service-but not in the Philippines.

Jollibee Foods Corp. is a family-owned chain with about P6.1 billion annual sales. It has, however, captured about 52% of the Philippines market (compared with 16% of McDonald's). The company has twice as many stores in the Philippines as McDonald's does. How Jollibee has been able to beat McDonald's in this market?

The major key to success is understanding and meeting the needs of the local market. Jollibee's offers spicy burgers, fried chicken and spaghetti and serves rice with all entrees. The food is similar to what "a Filipino mother would cook at home" and is designed "to suit the Filipino palate". And Jollibee charges prices from 5-10% lower than McDonald's.

In early 2003, message boards on many websites on the World Wide Web were flooded with rather disturbing news about Jollibee Foods Corp. (Jollibee), a fast-food major from the Philippines. The message claimed that the company had misled millions of customers into eating what they believed were burgers containing pure beef.

Jollibee was reported to have been using earthworms in its beef patties for many years to get customers 'addicted' to certain so-called chemical elements in earthworms. The company strongly denied the above allegations through a statement released on its website. It showed in detail its manufacturing facilities on its website and stated that the allegation was a hoax. The incident soon died a natural death - however, it seemed to have brought Jollibee in the 'big league' of global fast-food majors who had been accused of such practices in the past. Not that it needed any such dubious claims to fame - the company had been earning laurels from the global corporate world for many years now; In 2001, The Far Eastern Economic Review1 (FEER) named it the top corporation in the Philippines and the sixth leading corporation in Asia.

C. SWOT analysis

Strengths:

• Jollibee has grown exponentially on all aspects on operation.

• Superior menu line-up.

• Creative marketing programs.

• Efficient manufacturing and logistics facilities.

• It is a stronghold of heritage and monument of Filipino victory.

Weakness:

• The first name that comes to the mind of the people when someone asks about fast-food restaurant.

• The existence of other competitors.

Opportunities:

• The first Philippine fast food chain to break the P1 billion sales mark in 1989.

• Became the first food service company to be listed in the Philippine Stock Exchange.

• Acquired Greenwich Pizza in 1994.

• Employees received extensive training so that they could learn the corporate values of integrity and humility.

• In 1984, Jollibee hit the P500 million sales mark, landing in the Top 500 Philippine Corporations.

• In 1987, barely 10 years in the business Jollibee landed into the country's Top 100 Corporations.

• In 2000, the strategic acquisition of Chowking solidified the company's position as the dominant leader.

Threats:

• The rivalry between Jollibee and McDonald.

• Jollibee Foods Corporation is a family-owned chain with about P6.1 billion annual sales. It has however captured about 52% of the Philippines market ( compared with 16% of McDonald).

• Jollibee was reported to have been using earthworms in its beef patties for many years to get customers ‘addicted' to certain so-called chemical elements in earthworms.

D. Alternative course of action

 Need to improve their service more in order to attract customers.

 More flavor of sundae.

 More branch to establish in and out of the country.

E. Conclusion

We therefore conclude that the Jollibee Corporation established a successful business not only here in the Philippines but also internationally. The corporation do all their best in order to compete on its rivalry. They did different strategies in order to be competitive.

F. Recommendation

We recommend that Jollibee should offers other variety of food like pasta such as Carbonara, Pesto, Fettuccini, etc., improve their advertisement on television and also the facilities and services of other branches of Jollibee.

IV. Synthesis evaluation

Jollibee was started as an ice cream parlor and later discovered its destiny as a hamburger chain in 1978. Jollibee has attained worldwide admiration in so short a time. Today, it owns Chowking, Greenwich, Red Ribbon, and Philippines franchise of Deli France. It has become one of the biggest fast-food chain in the world with more than 1,600 stores worldwide.

Jollibee was able to attain a competitive advantage in Philippines over McDonald's

By doing following things;

• Jollibee was the first to enter the market

• Retaining tight control over operation management, which allowed it to price below its competitor

• Having the flexibility to cater to the tastes of its local consumer.

As Jollibee entered international markets, it faced new challenges. The fast food industry is highly competitive and price wars and marketing innovations are seen frequently. The rivalry is also centered on the key success factors of the industry, which are good food, good service and reasonable pricing. Rivals are somewhat equal in capabilities and opportunities, thus making the competition stiffer. Internationally well-established players like KFC and McDonalds had high brand values that Jollibee found difficult to compete with. The threat of substitute product is considerable. Local street food high-end restaurants from two ends of a range of substitutes. Potential entrants face entry barriers that will hinder them from entering the industry. These are the inability to gain access to technology and specialized know-how, brand preference and customer loyalty, capital requirements, economies scale, and strategically situated distribution channels.

V. Preference and appendix

Internet

http://www.jollibee.com.ph/index.php?/about_us/contents/1 Accessed February 1, 2011

http://www.coursework.info/University/Business_and_Administrative_studies/Management_Studies/Jollibee_case_study_L830399.html Accessed February 2, 2011

http://en.wikipedia.org/wiki/Jollibee Accessed February 2, 2011

http://www.icmrindia.org/casestudies/catalogue/Business%20Strategy1/Jollibee%20Fast-Food%20the%20Filipino%20Way%20Business%20Strategy.htm

Pictures references

http://anythingpinoy.com/wp-content/uploads/2008/05/jollibee-philippines-fast-food.jpg

http://ederic.net/images/jollibee.gif

http://www.tipidmeals.com/images/2008/05/11/20080417jollibee_friesx.jpg

http://www.mytouchtab.com/images/items/image1/Jollibee_virtual_layout-1187321934641-1187343250066.jpg

http://www.likhaan.com/views/images/side-jollibee.jpg

http://pinoycravings.com/wp-content/uploads/2009/11/Jollibee-Chickenjoy-Bucket-Treats-851x1024.jpg

http://www.alrosegroupofcompanies.com/jollibee/images/products/1.jpg

http://aht.seriouseats.com/images/20090212-jollibee.jpg

http://img103.imageshack.us/i/burgersteakjd8.jpg/sr=1

Appendix

logo Jollibee

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