JOSÉ RIZAL UNIVERSITY

College of Hospitality and Tourism Management

Jollibee: “Flourishing Forward: Strategic Insights for Jollibee's Growth and

Success"

HTM C303
Strategic Management

Submitted by:
Benito, Princess Aerol R.
Marasigan, Jenny Rose A.
Nacianceno, Michael Don C.
Rapada, Rheniel John
Sampol, Marc John
Sanchez, Sydney Denise A

Course and Section:

BSHM- CMGT 302S

2nd Semester, SY 2023 – 2024

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EXECUTIVE SUMMARY

CHAPTER I. Introduction

Background

Dr. Tony Tan Caktiong established Jollibee Food Corporation in 1975. During the
initial stages, his wife Grace, family, and in-laws provided him with assistance as they
established a little ice cream kiosk on the streets of Manila. It took the family three years
to understand that they could have meals that were heated. The ice cream stores
transformed and evolved into the Jollibee establishment that is familiar to us today.

Tony consistently maintained ambitious aspirations and saw the vast possibilities
for his organization. He utilized patience, excitement, and diligent effort to expand his
humble company into one of the most prominent in the Philippines, Asia, and the world
at present.

History of the Firm

Tony Tan Caktiong and his family launched a little ice cream shop in Cubao,
Quezon City, Philippines, in 1975, marking the start of Jollibee’s history. Eventually, they
realized there was room for expansion in the fast food business and turned their
attention to serving hot meals in addition to ice cream. They changed the name of their
business to “Jollibee” in 1978 and added burgers, spaghetti, and fried chicken to their
menu.

The choice to include fried chicken on the menu turned out to be crucial because
Filipino diners loved it. “Chick enjoy,” Jollibee’s fried chicken, swiftly rose to prominence
as a key product and symbol of the company.
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Jollibee had fast growth throughout the Philippines in the 1980s and 1990s,
adding additional outlets and launching creative menu items catered to Filipino
preferences. The company’s iconic commercial campaigns and the launch of its adored
mascot, Jollibee, a red and yellow bee creature that swiftly symbolized Filipino pride,
contributed to its success.

Jollibee started its global development in the 1990s, setting up shops in nations
like Hong Kong and the United States that had sizable Filipino populations. Jollibee
opened restaurants in markets all over the world, including the Middle East, Southeast
Asia, and North America, as it grew its worldwide footprint over time.

In the Philippines, Jollibee has remained the market leader despite competition
from foreign fast-food chains, and it has had great success elsewhere as well. Being
one of the most well-known and adored fast food businesses in the world, it has won
over customers both domestically and abroad thanks to its dedication to quality,
innovation, and satisfying local tastes.

Vision and Mission

Vision

To be one of the Top 5 Restaurant Companies in the World

Mission

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

Core Values

Through the years, JFC has formed its foundation from good business practices
and strong core values of Customer Focus, Speed with Excellence, Integrity, a Spirit of
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Family and Fun, and Humility to Listen and Learn. JFC continues its steadfast
commitment to upholding these core values:

Customer Focus: We serve all of our clients with excellent taste and outstanding value.
We offer genuine client service and a friendly grin. We contribute to the creation of
outstanding client experiences.

Speed with Excellence: We make decisions, plan, and move swiftly. We aim high and
perform admirably. We are always looking for ways to innovate and get better.

Humility to Listen and Learn: We look for, cherish, and accept input. We own up to
our errors and grow from them. Learning from people in all areas of life is our goal.

Spirit of Family and Fun: We look out for one another and bring out the best in each
other. We live up to our name, we work hard, and are content. We value uniqueness
and promote collaboration.

Integrity: We always act morally and with integrity as our guiding principles. We
manage the business like stewards should. When necessary, we have constructive
conversations.
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Organizational Structure

Company Policies

Jollibee Food Corporation is dedicated to upholding the highest standards of

business ethics. It has put in place a system that allows stakeholders to report ethical
standards infractions anonymously and without fear of retaliation.

Code of Business Ethics

The JFC Board of Directors approved the JFC Code of Business Ethics on
February 9, 2016, and this serves as the foundation for the JFC Group Ethics Program
(the "Program").
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The Code of Business Ethics places a strong emphasis on upholding legal

business procedures, treating people with respect, conducting business with integrity,
and protecting the company's assets and interests.

Key Components of the Ethics Program

Whistleblower Policy: A whistleblower is protected from reprisal, including harassment

and disciplinary punishment, and is entitled to remain anonymous under the company's
whistleblower policy. The responsibility of arranging with Human Resources to
implement safety and anonymity precautions for the whistleblower falls on the relevant
Legal & Ethics office. The Global Ethics Council and the Audit Committee keep an eye
on the reports, which are brought up directly with Global Legal & Ethics and the relevant
Ethics Council in the relevant region.

Training & Communications: All new hires are required to complete the New
Employee Onboarding Program, which includes ethics training. Additionally, the
company's core curriculum for employees includes annual training sessions and
refresher exams for all employees worldwide as part of the Ethics Program. These are
developed and implemented in partnership with Global Legal & Ethics, Global Human
Resources, and Region HR offices.

Policies

The key policies focused on ethics are the following:

Anti-Bribery and Corruption Policy

The company's policy on adhering to anti-bribery and anti-corruption laws is

formalized and made practical by the Policy on Anti-Bribery and Corruption. To influence
the recipient's decisions or actions to facilitate, obtain, or retain business, it is forbidden
to make or accept any offer, promise, or gift of money or anything of value from a party
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with whom the company does business or who wishes to do business with the
company, either directly or indirectly.

Policy on Gifts

Giving or receiving presents or favors is forbidden by the policy on presents, with

several exceptions that must comply with local regulations. This policy forbids donating
cash as a present and forbids giving goods that indicate or could imply engaging in any
unlawful activity. If this policy is broken, appropriate disciplinary action based on the
kind and gravity of the infraction may be taken.

Policy on Conflict of Interest

When conducting business with third parties, the company takes precautions to
guarantee that it is not in a conflict of interest and that its interactions with suppliers and
service providers are conducted impartially and in the company's best interests.
According to the company's conflict of interest policy, each employee must abstain from
any relationships, transactions, or interests that could potentially hinder or appear to
hinder their capacity to fulfill their obligations to the best of their abilities.

Supplier Code of Conduct

Our suppliers and other third parties with whom we do business are contractually
bound to uphold the laws of the jurisdictions in which they conduct business and to
promptly report any violations of our Policy on Gifts, including the offering or solicitation
of gifts in connection with third-party transactions. This demonstrates the company's
commitment to lawful business practices.
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Current Corporate Strategy

Marketing Strategy

The key to Jollibee's success is its effective marketing strategy, which has been
the main engine of the business's expansion. Jollibee's marketing strategy is
customer-oriented. They focus on creating a unique and wonderful experience for their
target customers. Jollibee created a strong relationship with its customers because of its
effective advertising. Due to this strategy, it established a strong emotional connection
with its target audience.

Jollibee has a dynamic marketing strategy to cater to a variety of consumer

demographics by fusing worldwide recognition with localized tactics. Jollibee highlights
its Filipino roots while customizing its marketing strategies to fit the distinctive cultural
characteristics of every region it operates. Jollibee is marketed as a family-friendly
fast-food restaurant that offers tasty and reasonably priced meals.The organization
cultivates an established connection with customers by means of ongoing product
development, emotional storytelling, and digital involvement, thus capitalizing on
concepts of family, love, and unity. Furthermore, Jollibee continually takes part in
community-based programs, showcasing its dedication to promoting social
responsibility and cultivating customer enthusiasm. In order to maintain growth and
promote brand loyalty across the globe, Jollibee employs its well-known brand and
modifies its marketing strategies to appeal to regional tastes and preferences as it
grows internationally.

Human Resources Strategy

In 2022, our Mainstream Leadership Program delivered a total of 186,276

training hours, with an average of 10 training hours per employee. Furthermore, all of
our personnel in the Philippines and North America adhere to an Individual
Development Plan, which entails undergoing development interventions such as
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Exposure, Experience, Environment, or Education. We offer a wide range of training

and learning opportunities throughout the business on a worldwide scale, tailored to the
specific demands of different functions and brands.

The human resources policies and procedures of Jollibee are designed to

methodically fulfill the labor need, offer equitable and just compensation, sustain
positive labor-management relations, and maintain a functional employee information
system across all business divisions. Through the support of its human resources, the
business unit's human resources help all departments achieve their goals and maintain
their growth.

Production Strategy

Jollibee Food Corporation has a diverse manufacturing approach designed to

provide its consumers with high-quality food products rapidly. A vertical integration
approach in which the business controls and manages important components of its
supply chain, from production facilities to distribution systems, is at the core of its
strategy. This oversight guarantees uniformity, lowers expenses, and makes it easier for
supplies to be delivered in a timely manner to its branches. Localized production is
another priority for Jollibee, which adapts its menu to local preferences while
maintaining authenticity. The organization prioritizes efficiency by employing lean
manufacturing techniques, streamlining timetables, and utilizing technology to enhance
operational efficiency.

Normally, Jollibee can produce 100,000 pies every day, 450,000 buns daily,
300,000 marinated chicken joy a day, and 490,000 spaghetti sauces yearly. Every fixed
season, they produce their products that would be 2-3 weeks in stock. It increased their
production every fixed season. Inventory of their products is for 2 days only. All of their
products have a stock indicator to monitor how many products are sold and remain in
inventory.
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Every step of the process is infused with strict quality control procedures that
ensure consistent excellence throughout the menu. Continuous improvement is fueled
by research and development, which improves commodity composition, ingredient
source, and packaging options. Its activities are further supported by efficient supply
chain management, which guarantees the consistent availability of raw materials. By
working together, Jollibee is able to satisfy the changing needs of its wide range of
customers while retaining its competitive edge in the fast-food sector.

Financial Strategy

JFC is one of the world’s largest fast-food companies to have originated in Asia
and the largest in the Philippines. The success of its flagship brand marked the
beginning of JFC’s acquisition of its competitor brands within and outside the
Philippines like Red Ribbon, Mang Inasal, Chowking, and Greenwich Pizza. Right now
JFC has over 5,900 stores across the world.

The total retail sales are 82.1 billion pesos. JFC’s focus on its manufacturing, its
logistics framework, its menu, its marketing strategies, its founder’s leadership, and its
attention paid to globalization are some of the key factors that, according to them, have
contributed greatly to its success. The Asian Business Review also once stated that
constant efforts in the areas of innovation, testing, and piloting are something that
Jollibee owes its business growth to.

The business prioritizes resources in key domains like development, innovation, and
operational efficiency as part of its financial strategic planning approach. Jollibee keeps
its financial picture in check by carefully organizing and budgeting its finances and
allocating expenditures to achieve its strategic goals. Comprehensive financial reporting
and analysis also help the organization keep a close eye on the state of its finances,
enabling prompt decision-making and necessary modifications. Additionally, Jollibee
uses risk management strategies to reduce financial uncertainties and risks and
maintain adaptability in the event of market swings or economic difficulties.
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CHAPTER II. Industry and Firms Environment

External Environment

Economic

Several macroeconomic elements are crucial in shaping Jollibee's performance in the

dynamic economic environment in which it works. These variables, which include
important metrics like GDP growth rates, inflation levels, and unemployment rates,
capture the general state of the economies in the nations in which it conducts business.

GDP growth rates are a useful indicator of a nation's economic expansion or recession.
Consumers typically have more disposable income during times of strong GDP growth,
which might raise their spending on eating out and enhance Jollibee's earnings. On the
other hand, lower GDP growth rates during recessions or slowdowns may indicate a
decline in consumer confidence and spending, which could have an effect on Jollibee's
financial results.

Jollibee's operations are significantly impacted by inflation levels as well. Elevated rates
of inflation may reduce the purchasing power of consumers, hence increasing the cost
of Jollibee's menu items and possibly decreasing their demand. On the other hand, low
rates of inflation might encourage consumer spending, which would increase Jollibee's
sales and profitability.

The fraction of the labor force that is actively looking for work but is having difficulty
finding it is represented by unemployment rates. High unemployment rates can cause
people to cut back on their spending as they prioritize paying for necessities over eating
out, which will hurt Jollibee's bottom line. On the other hand, low unemployment rates
usually point to a stronger economy where more people can afford to spend
discretionary money, which could increase Jollibee's sales.
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Furthermore, alterations in exchange rates represent a noteworthy obstacle for

corporations such as Jollibee that have global operations. The company's profitability
may be impacted by these variations in a number of ways. First of all, they have an
impact on the price of imported goods and ingredients, which, if poorly handled, can
reduce profit margins. Second, Jollibee's prices may be impacted by currency
fluctuations in overseas markets, which could reduce their competitiveness in
comparison to regional options.

To address these macroeconomic issues, Jollibee needs to implement policies aimed at

reducing risks and maximizing opportunities. This could entail diversifying its supply
base to lessen reliance on any one area, putting in place pricing policies that take
currency fluctuations into account, and regularly monitoring and modifying its operations
in reaction to shifts in economic data.

All things considered, Jollibee must remain flexible and agile in order to navigate the
challenging economic environment, preserving its resilience in the face of
macroeconomic volatility and carrying on providing value to its stakeholders and
customers.

Political and Legal

The political and legal variables that affect Jollibee Corporation's activities are an
integral component of the larger macro-environmental influences that are present in the
external environment. The company's tactical choices and accomplishments are shaped
by the interplay of these components with distinct variables like economic, social, and
technological pressures.

Building positive ties with government agencies is essential for skillfully navigating
regulatory environments and advocating for business-friendly legislation. Before
expanding internationally, careful evaluations of the legal and political environments are
necessary to guarantee a conducive operating environment. Maintaining strong legal
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frameworks to protect intellectual property rights continues to be a top focus. The supply
chain, manufacturing expenses, and distribution channels of Jollibee may be impacted
by modifications of commerce laws or restrictions. Legal constraints pertaining to worker
conduct or food safety standards may have an impact on their costs and operating
procedures. The degree of stability in politics or volatility in the areas in which they do
business might affect consumption and customer confidence.

The commercial plans and financial performance of a company can be influenced by

government rules and policies concerning food safety, labor legislation, taxation, and
international trade agreements. Adherence to these standards is crucial to mitigate legal
liabilities and retain public confidence. Consequently, this can influence the company's
growth prospects and stock performance. Jollibee needs to comprehend and handle
these political and legal factors well in order to minimize risks, seize opportunities, and
keep a competitive advantage in the international fast-food market. This entails reaching
out to legislators in a proactive manner, abiding by all applicable rules and laws, and
modifying plans of action to deal with the complicated external environment.

As of January 2022, Jollibee Food Corporation has been regarded as a well-mannered

company adhering to legal and political requirements. Jollibee's dedication to
maintaining its financial stability and brand reputation is demonstrated by its diligence in
handling litigation and dispute resolution. Adopting CSR programs strengthens
Jollibee's reputation in the political and legal spheres by demonstrating its commitment
to moral business practices. All things considered, Jollibee's capacity to effectively
navigate its political and legal landscape depends on its proactive flexibility, openness,
and unwavering commitment to moral principles.

Technological

Technological improvements in the digital age have significantly influenced Jollibee's

operations and competitive environment. Technology is crucial in improving productivity,
cutting costs, and enhancing consumer experiences across several areas such as
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production processes, marketing techniques, and online ordering platforms. DXC helps
Jollibee with its digital transformation journey. Since 2017, DXC Technology has been
instrumental in delivering critical IT services for JFC, enabling employees to experience
smooth operation. To manage their 6,500 stores nationwide, JFC relies on IT
technology to optimize delivery costs and innovate through applications, outsourcing,
the modern workplace, data and analytics, artificial intelligence, and security. These
solutions allow JFC to navigate its rapid worldwide expansion and operational difficulties
with ease.

DXC’s ‘store in a box’

JFC will be able to quickly set up a reliable and effective in-store technology platform for
both new and current restaurants thanks to a solution. The platform will enable JFC to
have more automated and analytically-driven operations that are more streamlined and
efficient. Easy to understand user dashboards that offer critical information for
well-informed decision-making will replace manual business processes, increasing
operational productivity and efficiency while facilitating the provision of consistently
outstanding dining experiences for customers.

DXC worked to stabilize IT operations and support business growth both locally and
worldwide by constructing crucial IT foundations, transferring the old enterprise
resource planning solution to the public cloud, and enhancing operational agility. DXC
has contributed to improving the efficient governance of JFC's business processes
across markets by greatly lowering performance-related events and system outages
that might hinder operations. JFC is one of the fastest-growing companies in the world,
and because of this, JFC acknowledges the necessity of regularly updating IT
processes and modernizing applications so that it will enable them to manage their
production smoothly.

Socio-Cultural
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Jollibee operates in a variety of cultural environments, and comprehending

socio-cultural elements is crucial for its achievement. Jollibee's menu options, marketing
efforts, and overall brand positioning are greatly influenced by consumer tastes,
lifestyles, and cultural traditions. For example, in nations where rice is a fundamental
cuisine, Jollibee provides rice-based meals that are customized to suit local
preferences. In areas where vegetarianism is prevalent, Jollibee may introduce
plant-based options. While more people are able financially to eat at more expensive
outlets such as fast food restaurants, they have higher expectations. They want to have
quality services and more conveniences that can differentiate one restaurant from
another. Young urban consumers want technology in their lives and facilities such as
credit card payment, wireless internet, cozy and relaxing ambient places, and other
attractions for their hangouts and eating. All these needs should also be taken into
consideration. There is not much difference between culture and the purchase of
products in a single country but for different countries cultural sensitivity should be
upheld. Jollibee's success is partly due to its ability to cater to local tastes and
preferences. The company's menu has been tailored to the specific needs of each
market, offering items such as spicy chicken in China, curry rice in Indonesia, and
peach mango pie in the Philippines. The company also promotes family values and
community involvement, which has helped to build a strong brand identity and customer
loyalty So far Jollibee has shown good efforts in the localization of its menu to suit local
tastes but it should constantly survey and learn about local culture to better understand
and design the best product for them. In addition, the growing awareness of health and
the environment in society is leading to a higher demand for food options that are both
healthier and more eco-friendly. As a result, Jollibee is adjusting its menu and
procedures to align with changing consumer expectations.

Task Environment

Suppliers

Jollibee Food Corp. has many suppliers and some of their suppliers are:
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Cargill Philippines Inc. developed and supplied various poultry products, including whole
chicken and marinated choice cuts to JFC.

Unilever Food Solution, this company provides the best ingredients, develops quality
products, creates inspiring and trending recipes, and provides Chef training and
support.

San Miguel Corp. supplies fresh, quality poultry products for Jollibee Chicken Joy.
The Coca-Cola Company has been supplying beverages to Jollibee Foods Corporation
restaurants.

Allied Metals Inc. this company designed, installed, built, and maintained for kitchen
equipment of JFC.

Distributors

As a distribution method, franchising comprises a franchisor who sells or grants a

franchise to sell goods or provide services and a franchisee who possesses a franchise
for the same purpose.

Customers

Most of Jollibee's target customers are young people and millennials, yet it also
caters to families with small children. The brand's marketing approach emphasizes the
value of family, happiness, and togetherness to speak to the values and goals of its
target demographic.

Competitors

When considering your external environment and competitor, it’s crucial to analyze
market trends, customer preferences, regulatory changes, and technological
advancements. Additionally, keeping a close eye on your competitor’s strategies,
strengths, and weaknesses can help you identify opportunities and threats in your
industry. Conducting regular SWOT analyses can be a useful tool for assessing your
position in the market and formulating effective strategies.

The competitors of Jollibee are:

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McDonald's - is an American multinational fast food chain, founded in 1940 as a

restaurant operated by Richard and Maurice McDonald, in San Bernardino, California,
United States.

Mission – To serve the Filipino community by providing great-tasting food and the most
relevant customer delight experience.

Vision - “Una sa Panlasang Pinoy” First to respond to the fast-changing needs of the
Filipino Family. First choice when it comes to food and dining experience. First mention
as the ideal employer and socially responsible company. First to respond to the
changing lifestyle of Filipino families.

Kentucky Food Chicken (KFC) - is an American fast-food restaurant chain

headquartered in Louisville, Kentucky, that specializes in fried chicken. It was founded
by Colonel Harland Sanders.

Mission - We are dedicated to making our customers' day. So, they come in hungry and
go out happy.

Vision - To provide food in a quick, pleasant setting that caters to cost-conscious,

health-conscious people

Shakey's Pizza - Shakey's Pizza was founded in Sacramento, California, on April 30,
1954, by Sherwood "Shakey" Johnson and Ed Plummer.

Mission - We genuinely care for our guests. We seek to know their needs and wants so
we can provide them with high-quality food products and services at great value for
money.

Vision - To provide good times and great memories

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Burger King Corporation - is an American multinational chain of hamburger fast food

restaurants. Headquartered in Miami-Dade County, Florida, the company was founded
in 1953 as Insta-Burger King, a Jacksonville, Florida–based restaurant chain.

Mission - Offer reasonably priced quality food, served quickly, in attractive, clean
surroundings.

Vision - To be the most profitable QSR business, through a strong franchise system
and great people, serving the best burgers in the world.

Max’s Restaurant - Max's Restaurant was first established in 1945, shortly after World
War II, by Maximo Gimenez, a Stanford-educated teacher.

Mission – A world-class company, passionate in bringing out the best in the Filipino.
With products that delight the world, with service that epitomizes Filipino hospitality.
Where every encounter is made memorable with genuine care and service from the
heart.

Vision - To be the leading Filipino Company with the most loved brands by 2025.

Internal Environment

Human Resources

The most valuable asset of Jollibee is its people, who contribute to the company's
success via their expertise, commitment, and enthusiasm for providing excellent
customer service. Jollibee's HR strategy places great importance on recruitment,
training, and employee development to ensure that its team possesses the requisite
skills and knowledge to provide superior service and uphold the company's values. The
HR manager is in charge of organizing, carrying out, and supervising the authorized
policies and initiatives related to human resources. It enables the business to comply
with labor laws, offer reasonable compensation, sustain good labor-management
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relations, and keep an effective personnel information system in place for all of the
business's work units.

Responsibilities and Duties of HR

The Human Resources (HR) department is the foundation of any firm, playing a critical
role in integrating HR plans and activities with the company's overall business goals.
One of the primary roles of HR is to effectively communicate new or amended policies
to all workers. This activity is crucial because it ensures that all members of the
organization are on the same page, knowing and implementing the revised policies.HR
plays an important role in assisting other departments by increasing an awareness of
management concepts, principles, and workplace values/standards. HR plays a critical
role in developing the company's values and standards in its employees, resulting in a
unified and value-driven work environment.

Employees:

Guidelines for hiring

1. Examination
2. Job offer and Pre-employment
3. Initial interview
4. HR and Hiring management interview.

Training and development

Jollibee does provide the necessary training before employees begin working. They do
give classroom training, as well as films, books, and other instructional tools, to help
new employees understand how the organization functions.

Compensation & Benefits

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Expect to earn an average salary with a variety of benefits, including a free lunch
allowance, health insurance, sick leave, vacation time, education help, and other
government mandated benefits.

Production and Operations

Jollibee's manufacturing and operations involve various activities, including the
acquisition of raw materials, food preparation, quality assurance, and distribution.
Efficiency, quality control, and supply chain management are essential for guaranteeing
seamless operations and successfully meeting client demand. To boost productivity,
reduce costs, and maintain high standards of food quality and safety across its
locations, Jollibee can implement best practices in manufacturing processes, optimize
inventory management, and leverage technology to streamline operations.

Marketing Mix
PRODUCT
Jollibee's goods distinguish themselves by their astute comprehension of the Filipino
palate. The taste preferences of Filipinos tend to lean slightly towards sweeter flavors.
Consequently, Jollibee adapts its menus to align with the specific preferences of its
customers in each region.

Due to the high demand for fried chicken in the Philippines, Jollibee launched its own
version called Jollibee Chicken Joy in 1981. This product quickly became their
top-selling item and the most popular choice among all of their shops. Chicken Joy has
become one of Jollibee's distinctive offerings. Jollibee upholds the utmost standards of
food quality, enhancing the appeal of its fast-food offerings.

Here are some distinctive goods offered by Jollibee:

❖ Chicken Joy is a superior alternative to KFC's Fried Chicken. The food item
possesses a crunchy consistency on its exterior and a delectable taste that
stimulates the appetite on its interior. Chicken Joy is served with velvety and
delectable gravy, truly a perfect pairing.
❖ Chicken Dippers consist of boneless chicken pieces that are accompanied by a
serving of hot gravy. When immersed in a flavorful and savory gravy, clients'
palates are left satiated.
❖ Who doesn't enjoy indulging in desserts? Jollibee also serves a delectable Peach
Mango Pie that features a crispy exterior crust and a luscious, sticky filling.
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PRICE
Jollibee goods are affordably priced to meet the diverse consumer demand across
various socioeconomic strata. The company utilizes competition-based pricing. As
Jollibee is a price taker, it is obligated to acknowledge and abide by the prevailing
market pricing, which is determined by the interplay of supply and demand forces. They
should ensure that the prices of their items are aligned with the prices set by their rival.
Consequently, the cost should not prevent someone from entering.
Jollibee's objective is to provide superior, delicious meals at an affordable price.
Jollibee's combination meals are significantly more affordable than McDonald's, with a
price difference of over 10%. In the Philippines, KFC sells a bucket of 6 pieces of
chicken for ₱439.00 (equivalent to INR 650.30), but Jollibee offers the same product for
only ₱399.00 (equivalent to INR 591.75).

PLACE
Jollibee was launched 43 years ago and has since opened over 1400 outlets. The
company's success can be attributed to its origins in the Philippines. The company is
dedicated to expanding its retail presence to other nations in order to ensure that
individuals worldwide have the opportunity to experience their products. They
deliberately position their outlets in densely populated regions to attract the attention of
large crowds.

Several of their establishments are situated in shopping centers and along major
roadways, allowing travelers to conveniently satisfy their appetite with a fast lunch.
According to Jollibee's CEO Tanmantiong, Jollibee plans to open 450 new locations in
order to compensate for the financial setback caused by the epidemic.

PROMOTION
Jollibee is highly proactive in its promotional initiatives. The corporation places a strong
emphasis on its commercials across many platforms like TV, newspapers, radio, and
maintains active and direct connection with clients on social media platforms. In
addition, they employ the tactic of leveraging community influencers to promote their
products or services.

Their marketing strategy is producing short films that are inspired by true stories,
showcasing the profound impact of familial love and joy that is magnified when shared
during a meal. Given that the family is a crucial element of the organization, their
in-store setting is designed to create a sense of comfort for consumers, akin to being at
home. Jollibee fosters strong emotional connections with their customers through their
stores.
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Jollibee also introduced a children's television program called Jollitown, which ran for
nearly five years before ending on October 12. Jollibee strategically targeted children as
their primary audience, recognizing their susceptibility to influence. To cater to this
demographic, they introduced kid's meals on their menus, accompanied by exclusive
limited-edition toys. This method was effective as youngsters were compelled to
purchase kids meals solely for the purpose of obtaining toys.
Jollibee's marketing activities gained momentum due to the introduction of drive-thru
and free delivery services. The company has recently released their new application
named 'Jollibee Ordering'. As part of their promotional campaign, they are offering their
popular Peach Mango Pie as a complimentary item for a duration of two weeks on every
purchase made through a registered account.

Financial Statements
Income Statement

2023 2022

Period Ending: 31/12 31/12

Total Revenue 244107.35 211902.22

Total Operating Expenses 229312.73 201375.92

Net Income Before Taxes 12342.35 11187.6

Net Income After Taxes 8985.45 7338.49

Net Income Before Extraordinary Items 8766.12 7558.5

Net Income 8766.12 7558.5

Income Available to Common Excluding 8315.01 7107.31

Extraordinary Items

Diluted EPS Excluding Extraordinary Items 7.44 6.38

Balance Sheet
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2023 2022

Period Ending: 31/12 31/12

Total Current Assets 74175.2 74860.84

Total Assets 244174.22 233402.7

Total Current Liabilities 67758.46 61492.07

Total Liabilities 157917.56 152487.67

Total Equity 86256.66 80915.03

Total Liabilities & Shareholders' Equity 244174.22 233402.7

Total Common Shares Outstanding 1119.91 1118.8

Cash Flow

2023 2022

Period Ending: 31/12 31/12

Net Income/Starting Line 8766.12 7558.5

Cash From Operating Activities 37813.1 23921.91

Cash From Investing Activities -13771.22 -2970.46

Cash From Financing Activities -19665.11 -16772.35

Net Change in Cash 4363.21 4176.6

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Examining Jollibee's financial accounts yields vital information about its financial
performance, position, and cash flows, allowing stakeholders to evaluate its profitability,
liquidity, solvency, and general financial well-being. Jollibee's operational efficiency and
long-term sustainability are assessed by closely monitoring key financial parameters,
including revenue growth, profitability margins, return on investment, and debt-to-equity
ratios. Furthermore, providing clear and precise financial statements is crucial for
establishing confidence and reliability among investors, creditors, and other interested
parties. This enables well-informed decision-making and aids in the development of
strategic plans and allocation of resources.
CHAPTER III. Situational Analysis

SWOT Analysis

Strengths

Versatility - The product that Jollibee offers is versatile; it enables the customer to
choose and create their meal preference. Jollibee has a variety of options that are
appealing to the customer. This versatility captures the attention of a wide range of
audiences.

Customer connection - Jollibee Food Corporation established a great customer

relationship through strong advertising and a customer-oriented approach. This strategy
fosters their image and allows them to connect with people. Building relationships with
customers enables the company to generate loyal customers.

Advertisement - Jollibee has a good advertising strategy, and because of this, it

captures the majority of the customers. Creative advertising is a great strategy; it is the
bridge that allows establishments to communicate with their target customers. In
addition, it creates an impression that drives customers to be loyal to the brand.

Brand identity - Jollibee has successfully incorporated Filipino culture into its brand
identity and product offering. Jollibee is different because of its unique flavors and style.
It is easily differentiated from the other resulting in increasing customers. Brand identity
is paramount; it allows customers to distinguish the brand from the others.
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Global expansion - Jollibee is one of the fastest-growing companies in the Philippines.

Its growth is amazing because of the support and investment of other companies. Many
companies choose to franchise Jollibee, which resulted in global expansion.

Weaknesses

Over Reliance on the Philippine Market - While Jollibee has made efforts to expand
its presence globally, it remains heavily reliant on the Philippine market for a significant
portion of its revenue. Overdependence on a single market makes the company
vulnerable to economic downturns or regulatory changes in the Philippines.

Limited Market Penetration in Key Regions - Despite its international expansion

efforts, Jollibee still faces challenges in penetrating key markets such as the United
States and China. In these regions, it competes against well-established fast-food
giants like McDonald's and KFC, making it difficult to gain significant market share.

Franchisee-related Issues - Jollibee operates on a franchise model, and issues with

franchisees can impact the overall brand reputation and quality consistency.
Franchisee-related disputes, operational inefficiencies, or failures to uphold brand
standards can tarnish the company's image and affect customer trust.

Supply Chain Vulnerabilities - As a fast-food chain, Jollibee relies heavily on a

complex global supply chain to source ingredients and ensure timely delivery to its
outlets worldwide. Any disruptions in the supply chain due to factors like natural
disasters, geopolitical tensions, or pandemics can adversely affect operations and
profitability.

Rising Operating Costs: Jollibee faces challenges related to rising operating costs,
including expenses associated with labor, raw materials, and overheads. Inflationary
pressures, wage hikes, or changes in government regulations regarding labor and
taxation can squeeze profit margins if not managed effectively.

Health and Nutrition Concerns: With increasing consumer awareness about health
and nutrition, Jollibee faces scrutiny over its menu offerings, particularly in terms of
calorie content, nutritional value, and the use of additives. Addressing these concerns
while maintaining the taste and affordability of its products requires ongoing innovation
and investment in research and development.

Opportunities
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International Expansion - Jollibee has been progressively extending its reach

throughout the world, especially in areas like the United States, Canada, and the Middle
East where there is a sizable Filipino diaspora. The current pattern offers a chance to
expand internationally more widely into emerging areas where there is a rising need for
fast food and Filipino cuisine.

Diversification of Product Offerings - In order to adapt to shifting consumer tastes

and dietary cycles, the business can broaden the scope of its products. To appeal to a
wider client base, this could entail adding healthier options, growing its dessert or
beverage lines, or bringing regional flavors and products into its menu.

Digital Innovation - Jollibee has the chance to improve its digital footprint and make
investments in cutting-edge technologies like smartphone purchasing mobile
applications, delivery services, and digital payment choices, given the growing use of
technology and online portals for food ordering. Customers' accessibility may be
increased, and revenue growth may result in both home and foreign markets.

Partnerships and Collaborations - Jollibee may be able to take advantage of fresh

prospects through partnering with regional companies or other brands. This could be
collaborative initiatives with nearby companies to more effectively create an edge in
new markets, cross-promotional efforts with brands that compliment one other, or
partnerships with food delivery services.

Threats

Economic volatility - Economic recessions or fluctuations in currency exchange rates

can have an impact on consumer purchasing patterns and therefore influence the sales
of Jollibee.

Regulatory issues - arise when there are modifications in legislation concerning labor,
food safety, and health standards, which can result in higher operational expenses and
stricter compliance obligations.

Escalating Ingredient Expenses - Volatility in the prices of essential components,

such as meat and vegetables, might impact Jollibee's profitability.

Changing Consumer Preferences - Alterations in consumer tastes and preferences

towards more nutritious or varied food choices can potentially jeopardize Jollibee's
conventional fast-food offerings.
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Competition - The fast-food industry is seeing increasing rivalry as rivals continually

introduce new ideas and grow their businesses, which poses a risk to Jollibee's market
dominance and financial performance.
 27

TOWS MATRIX TABLE STRENGTH WEAKNESSES

Product versatility Over Reliance on the

Philippines Market
Customer Connection
Limited Market Penetration
Advertisement in Key Region

JOLLIBEE Brand Identity Franchisee-related Issues

Global Expansion Supply Chain

Vulnerabilities

Rising Operating Costs

Health and Nutrition

Concerns

OPPORTUNITIES SO STRATEGIES WO STRATEGIES

Use versatile product that Reduce reliant on the

Progressively extending
enables customer to Philippine
its reach throughout the
choose and create their
world market for a large portion
meal preferences
Broaden the scope of its of its income
Establishing great
products Expand Market
customer relationship
Improve its digital footprint through strong Penetration on some
and make investments advertising and a Key Regions
customer-oriented
Take advantage of fresh approach Properly manage
prospects issues with franchisees
Use good advertising that can impact the
strategy overall brand
reputation and quality
Use successful consistency
incorporated Filipino
culture into its brand Reduce
identity and product overdependence on
offering a complex global
supply chain to source
Uses the support and ingredients and ensure
investment of other timely delivery to its
companies for fastest outlets worldwide
growth
 28

Properly manage
challenges related to rising
operating

THREATS ST STRATEGIES WT STRATEGIES

Economic recessions or Use a variety of options that Avoid failures on upholding

fluctuations appeal to the customer. brand standards by
maintaining company
Arise when there are Building relationships with image
modifications in legislation customers enables the
company to generate loyal Avoid overdependence on
Volatility in the prices of customers. a single market by
essential components expanding globally
Use Creative advertising
Alterations in consumer strategy Avoid supply chain
tastes and preferences disruptions by effectively
Use unique flavors and manage supply distribution
Fast-food industry is style that leads to increased Avoid having problem in
seeing increasing rivalry in brand Identity operating cost by properly
managing financials
Use of franchisees
company for its global Avoid issues regarding
expansion health concerns by
ensuring proper hygiene on
used equipment