CBMEC-2

(Group 3- 9:00-10:30 TTH)

JOLLIBEE FOODS CORPORATION

Strategic Management Paper

Submitted by:

GROUP 2

Aguirre, Angel Denise C.

Foulstone, Gia Coreen Razelle C.

Labajo, Shaira Mae M.

Labastilla, Doreen M.

Lapasa, Emily Ann D.

Monteclar, Jahanna Trevor S.

Reyes, Clea Claire M.

Submitted to:

Zenaida Z. Confesor, MBA-HROM

Instructor

2nd Semester A.Y 2020-2021

 Executive Summary

Provide a brief summary or overview of the strategy paper (in 2-3 pages), stating what the
business of the company is, the main results of the external and internal analyses, results of
strategy formulation tools used, the key strategic management issues and the recommended
strategic and financial objectives (at least for the next three years), and strategies and significant
action plans.
 I. INTRODUCTION

(note: add in-text citations)

A. Background on the company

Jollibee is the Philippines' biggest fast-food restaurant, with over 1,400 branches.
Jollibee, a dominant market leader in the Philippines, has a larger share of the local market
than any of the other global fast-food chains combined. Jollibee serves great-tasting, high-
quality, and affordable food items, such as its superior-tasting Chickenjoy, mouth-watering
Yumburger, and deliciously satisfying Jolly Spaghetti, among many other delightful
products, with strict adherence to the highest levels of food quality, operation, and
cleanliness. With over 270 foreign branches in the United States, Canada, Hong Kong,
Macau, Brunei, Vietnam, Singapore, Malaysia, Saudi Arabia, United Arab Emirates, Qatar,
Oman, Kuwait, Bahrain, Italy, and the United Kingdom, Jollibee has embarked on an
ambitious international expansion project.

Brief History

Jollibee started when Tony Tan Caktiong and his family opened a Magnolia Ice Cream
parlor from Bankerohan, Davao City to Cubao in 1975, they named it Jollibee. Manuel C.
Lumba, a management consultant, was hired by Caktiong and his brothers and sisters in
1978. After his research revealed that there was a wider demand waiting to be unleashed,
Lumba changed the company’s objective from ice cream to hamburgers. Caktiong's first
business and management coach was Lumba. Lumba then renamed Jolibe to Jolly Bee and
combined the two terms into a single name, Jollibee, by replacing the "y" with an "i." They
even sell hot meals and sandwiches. In 1978, they formed a corporation with seven branches
to test the feasibility of a hamburger idea.

Later on, the business that would revolutionize fast food in the Philippines was born. The
Jollibee mascot was influenced by children's books from both the Philippines and abroad.
Lumba then came up with the names "Yumburger" and "Chickenjoy" for his items. He
incorporated the corporation and rented a house on Main Street in Cubao, Quezon City as the
company's first headquarters. Lumba devised a long-term marketing plan that included a list
of customer ads and traffic-building strategies. Caktiong emphasized the importance of
building internal capabilities. The stores were remodeled, and the service was converted into
a full-service, drive-through fast-food operation. Caktiong and Lumba went on an
exploration tour of the United States shortly after, attending foodservice and equipment
conferences.

Jollibee achieved P500 million in profit in 1984, making it one of the Top 500 Philippine
Corporations. Jollibee was named to the country's Top 100 Corporations in 1987, after about
ten years in operation. In 1989, it became the first fast-food chain in the Philippines to crack
the P1 billion revenue mark. Jollibee was the first food service company to be listed on the
Philippine Stock Exchange in 1993, increasing its capitalization and paving the groundwork
for long-term growth both domestically and internationally. Jollibee has expanded
exponentially in all areas of business as the country's largest fast-food chain. Jollibee has
grown from a handful of stores 32 years ago to over 600 stores and over 50 international
locations.
Contact Information

Jollibee has a website available where customers can easily contact them by asking questions
at: https://www.jollibee.com.ph/contact-us-now/ or email them at feedback@jfc.com.ph and
follow them on Facebook: Jollibee Philippines, Instagram: @jollibee, Twitter: @jollibee,
Viber: Jollibee Viber Community to get updated on their promos or their new menu item.

Business Address 10/F Jollibee Plaza Building, Emerald Ave., Ortigas Center, Pasig
City 1600

E-mail Address president@jollibee.com.ph

Telephone 634-1111
Number

Fax Number (+632) 8634-1111

Website http://www.jollibee.com.ph

Table 1: Contact Information

 Board of Directors

Position Name

Chairman Tony Tan Caktiong

Director Ernesto Tanmantiong

Director William Tan Untiong

Director Joseph Tanbuntiong

Director Ang Cho Sit

Director Antonio Chua Poe Eng

Director Artemio V. Panganiban

Independent Director Monico V. Jacob

Independent Director Cezar P. Consing

Table 2: Board of Directors

Management Officers

Position Name

President and Chief Executive Officer Ernesto Tanmantiong

Corporate Secretary William Tan Untiong

Treasurer Joseph Tanbuntiong

Assistant Corporate Secretary Valerie Feria Amante

Table 3: Management Officers

PSE Information (Sector, Sub-sector, Incorporation Date, etc…)

Jollibee Foods Corporation (JFC) was incorporated on January 11, 1978. The Company's
principal business is the development, operation, and franchising of quick-service restaurants
(QSR) under the trade names "Jollibee", "Chowking", "Greenwich", "Red Ribbon", "Yong He
King", "Hong Zhuang Yuan", "Mang Inasal", "Burger King", "Highlands Coffee", "PHO24",
"Hard Rock Café", "Dunkin' Donuts", "Smashburger", "Tim Ho Wan", "Tortas Frontera", "The
Coffee Bean & Tea Leaf" and "Panda Express". The other activities of JFC include
manufacturing and property leasing in support of the QSR systems and other business activities.

Aside from the subsidiaries that develop and operate the Company's QSR trade names,
JFC wholly owns Freemont Foods Corporation, which owns and operates Jollibee stores in
Visayas and Mindanao, and Grandworth Resources Corporation, a real estate company that owns
or leases some of the properties used as storage sites.

By the end of 2019, there were 1,195 Jollibee stores nationwide, of which 680 were
franchised and 515 were Company-owned. On international operations, Jollibee had 266 stores
with 39 stores in the US, nine in Canada, one in Guam, one in Italy, one in the United Kingdom,
130 in Vietnam, 18 in Brunei, 10 in Hong Kong, nine in Singapore, one in Macau, one in
Malaysia and 46 in the Middle East.

Security Information

Sector Industrial
 Subsector Food, Beverage & Tobacco

Corporate Life 50

Incorporation Date Jan 11, 1978

Number of Directors 9

Stockholders' Meeting as per By- May - any day except holidays

Laws

Fiscal Year 12/31 (Month/Day)

External Auditor SyCip, Gorres, Velayo & Company

Transfer Agent Rizal Commercial Banking Corporation - Stock

Transfer Dept.

Table 4: Security Information

Nature of business/products/services

Jollibee Foods Corporation's business model is the growth, operation, and franchising of
its quick-service restaurant brands, in accordance with the company's primary objective (as
stated in its amended articles of incorporation):
 To raise, process, manufacture, and package a variety of food products; to open, run, and
preserve restaurants, coffee shops, and refreshments parlors; to serve, organize, and cater meals,
beverages, refreshments, and other foods or commodities; to provide other public services; and
to do and execute all other actions and items as may be necessary or incidental to the
achievements of the aforementioned corporate company and objects insofar as relevant laws,
rules, and regulations permit, including but not limited to, investing in, owning, or holding shares
in related companies, and extending support, sponsorship, and assurances to subsidiaries and
associates.

Jollibee, the company's flagship restaurant, serves fast-food favorites including

hamburgers, hot dogs, and fried chicken, as well as Asian spring rolls, pasta, soups, and ice
cream. Greenwich Pizza, Chowking, and Yonghe King (quick-service Asian food) are among the
company's other brands, as well as baked products from Red Ribbon.

Current revenue size and profit

Annual
For the fiscal year ended: Dec 31, 2020

Currency (and units, if applicable): PHP (In Thousands)

Balance Sheet

Item Current Year Previous Year

Current Assets 80,040,557 45,619,402

Total Assets 210,810,130 187,442,763

Current Liabilities 58,928,475 67,345,320

Total Liabilities 142,778,265 134,073,021

Retained Earnings/(Deficit) 29,869,889 43,879,437

Stockholders' Equity 68,031,865 53,369,742

Stockholders' Equity - Parent 38,539,260 53,470,339

Book Value Per Share 61.52 48.80

Table 5: Annual Balance Sheet

Income Statement

Item Current Year Previous Year

Gross Revenue 132,392,871 186,499,790

Gross Expense 145,685,501 175,933,839

Income/(Loss) Before Tax -13,292,630 10,565,951

Net Income/(Loss) After Tax -12,633,623 7,510,781

Net Income/(Loss) Attributable to Parent -11,510,727 7,302,726

Earnings/(Loss) Per Share (Basic) -10.45 6.68

Earnings/(Loss) Per Share (Diluted) -10.43 6.61

Table 6: Annual Income Statement

Quarterly

For the period ended: Sep 30, 2020

Currency (and units, if applicable): PHP (In Thousands)

Balance Sheet

Item Period Ended Fiscal Year Ended(Audited)

Current Assets 78,319,623 45,619,402

Total Assets 213,235,837 187,276,006

Current Liabilities 56,606,410 67,679,828

Total Liabilities 146,386,352 134,994,129

Retained Earnings/(Deficit) 28,207,143 43,009,145

Stockholders' Equity 66,849,485 52,281,877

Stockholders' Equity - Parent 68,068,491 52,600,047

Book Value Per Share 60.46 47.80

Table 7: Quarterly Balance Sheet

Income Statement
 Item Current Previous Current Previous
Year (3 Year (3 Year-To- Year-To-
Months) Months) Date Date

Gross Revenue 31,293,570 45,171,905 88,962,011 130,018,687

Gross Expense 34,388,217 42,534,057 105,229,581 124,380,225

Income/(Loss) Before -3,094,647 2,637,848 -16,267,570 5,638,462

Tax

Net Income/(Loss) -1,882,137 1,807,791 -14,452,680 4,050,606

After Tax

Net Income/(Loss) -1,580,347 1,673,161 -13,543,786 4,174,927

Attributable to Parent

Earnings/(Loss) Per -1.43 1.53 -12.30 3.82

Share (Basic)

Earnings/(Loss) Per -1.43 1.51 -12.29 3.78

Share (Diluted)

Table 8: Quarterly Income Statement

Source: PSE Edge

Major markets served

Jollibee is a family-centric brand that promotes family values and togetherness and
espouses Filipino pride. In bringing joy to Filipinos, Jollibee's brand values are anchored on the
following: Customer Focus, Speed with Excellence, Humility to Listen and Learn, Spirit of
Family and Fun, and Integrity. Jollibee's Mission is to serve great-tasting food, bringing the joy
of eating to everyone

Number of employees/Organizational Structure

 A variety of factors influence success in any industry, including the amount of money
invested, market segment targeting, business founder principles, and the types of people
employed. Yet, many businesses lack the corporate framework that encourages the right people
to be in the right position to propel them to the next level. As Jollibee’s success continues to rise,
they made sure that they have the best organizational structure to practice/use for their company
and ensure its efficiency by giving the right services for their customers. Below is the example of
organizational structure that is used by Jollibee Foods Corporation:

II. RESEARCH DESIGN AND METHODOLOGY

Methodology
This chapter will further discuss how the research is designed and undertaken, given that
the researchers adopted a framework to distinguish reliable and viable data accordingly. Through
the acquired data, the group recognizes suitable procedural plans that validly supported the
concept of analyzing and evaluating the performance of the Jollibee group and companies that
distinguish significant aspects relatively affecting the business. The following framework is
assessed objectively, accurately, and economically.

Research Design
Since Jollibee Foods Corporation is a service type of business that caters to serve
different consumers a day, the researchers were able to develop a constructive and informative
way of analyzing and assessing the company's overall performance by using qualitative and
quantitative methods. This approach allows the group to critique and for the decision-makers to
be guided on the appropriate alternatives to be implemented within the establishment.

The qualitative method would provide the researchers with a broader perspective based
on the consumer's experiences or the services being offered if they were able to meet the
company's standard services or could be the facilities themselves. This method would also
provide a comprehending analysis of Jollibee's food products' affordability to connect the
distinctiveness of the mentioned factor. In order to obtain a qualitative summary from the
customer's perspective, a set of well-structured questionnaires or surveys are distributed
according to the consumer's demographic profile with their assessment of the overall
performance of the fast-food restaurant. The researchers were able to adopt the quantitative
historical research that allows the group and the decision-makers to analyze and discuss its past
and present records for the possible solutions with its occurring issues and problems.

The audited financial statements of Jollibee Foods Corporation over the previous years
will project the company's performance in terms of its financial stability for the next five years.
An approach used by the group in understanding the nature itself of the company's internal and
external research is the SWOT and TOWS Analysis method. This analysis would better
understand the company's strategic choices and other alternatives, identifying its strengths and
weaknesses for the internal and opportunities and threats for the external. Another is the Trend
Analysis, which describes the external factor of the company in terms of political,
environmental, socio-cultural, technological, economic, and legal aspects, which will be another
basis for the group to assess its forecasted financial statements. The financial data could suffice
as the foundation for the researchers to accordingly forecast the incorporating aforementioned.
Sources of Information

The data used for this research were obtained from the financial statements of Jollibee
Foods and Corporation, which assesses its data credibility based on its former records. It
provided the researcher's further information about the company's previous and current
performances, various strategies used for the consumers' evolving needs, their coping
mechanisms, and their approach towards the industry's competitiveness. The group applies
various approaches to understanding the statistics or financial data acquired and its impact on the
company's overall performance. Apart from the primary source, the researchers distinguished
another form of acquiring data which is the secondary source. It involves wisely using the
available sources on the web, supporting the conceptual ideas from the various methods of
analyzing the current state of Jollibee Foods and Corporation, from the provided financial data in
their official web page, and analytically evaluating its significance on the fast-food chain
industry.

The researchers gathered various sources and references in constructing the following
frameworks on how it gradually influences other aspects in drawing the attention of their target
consumers. Hence, the group considers the following criteria of using available data that would
best support the study. It is authentic how published information is extremely attractive
significantly when it is relatively associated with the approach, in which the researchers
appropriately assess the collection of amounting data itself. Carefully links the available sources
on both primary and secondary sources and organizes a voluminous amount of data.

Major assumption

The researchers come up with a constructive assumption of Jollibee Foods and

Corporation's position or status in the near future. It was seen that the financial data were fairly
presented from its various aspects of the operation and the ending balances of the JFC's financial
statements represents its essence, the average balance for the period.

It is foreseen that the company will continue to operate near in the future, wherein the
company has this ability to expand more branches or businesses worldwide, offering a multi-
product. The quality of their offered products or menu has been part of their services since the
beginning, and it is observed that there are still existing lapses that need to carry out to compete
with its competitors. Attracting their consumers' attention by evolving the company's procedures
in meeting the sanitation standards-based from the authorities in order for the customers to feel
safe and at ease, considering their methods are appropriately executed.

Jollibee Foods Corporation continues to create lasting and memorable moments with
family and friends as it shares the joy of eating locally and worldwide. With its store network
exponentially growing in numbers, JFC has set its sight in bigger dreams for future expansion,
seizes an objective of putting up each brand in interesting key locations across the globe to
delight the diverse palates of the international market. Visualizing this aspiration with artistic
renderings, JFC shares its imagination and bold dreams towards its bright to a greater future.
Competition among brands under the fast-food chain industry will more likely grow, and it is
expected to grow in terms of sales at the end of the operations.

III. COMPANY’S VISION AND MISSION

Jollibee has been around since 1975 and they have always been true to their mission and
vision statement as well as their core values and objectives as they continue to rise as a quick-
service restaurant. Through these, the company is guided towards its goal as a whole.
A. JOLLIBEE’S VISION, MISSION, CORE VALUES, AND OBJECTIVES

VISION

Since the start of Jollibee in 1975, they have a vision of becoming one of the top 5 restaurant
companies in the world. All their brands are trusted and well-loved, craved around the world;
renowned for consistently great tasting food, recognized for high value for money, endeared for
warm and sincere distinct service to our customers, admired for our beautiful stores in excellent
locations. They are acknowledged as one of the Best Companies to Work for, regarded for their
efficient systems and processes, highly engaged teams, and people-focused culture.

MISSION

The company’s mission is simple: to serve great-tasting food, bringing the joy of eating
to everyone. Although it is a sentenced goal, it still caters to what they would bring their
consumers upon service.

CORE VALUES

Through the years, JFC has formed its foundation from good business practices and
strong core values according to the official page of Jollibee Foods Corporation, Jollibee.com.ph
of Customer Focus, Speed with Excellence, Integrity, Spirit of Family and Fun, Humility to
Listen and Learn. JFC continues its steadfast commitment in upholding these core values:
Customer focus in which they provide great taste and superior value to all their customers, they
treat their customers with sincere service and a warm smile, they take part in creating exceptional
customer experience, another is their speed with excellence in which they plan to decide and act
quickly, they set challenging goals and execute well, and they constantly find ways to improve
and innovate, humility to listen and learn in which they seek, welcome and value feedback, they
acknowledge and learn from their mistakes, and aspire to learn from the people from all walks of
life, Spirit of family and fun in which they take care of each other and bring out the best in
everyone, they are true to their name, hard-working and happy, they recognize individuality and
foster teamwork, and finally integrity, in which they live by honestly and they do what is right all
the time, they act as responsible stewards of the company, and they seek their minds
constructively when needed.

OBJECTIVES
 Jollibee Foods Corporation’s core business is the development, operation, and franchising
of its quick-service restaurant brands. It offers a wide variety of affordable and delicious dishes
and great tasting food prepared to satisfy customers of all ages and from all walks of life.
Maintain food quality, service, price-value relationship, store location, and ambiance, and
efficient operations continue to be critical elements of the Company’s success in the quick-
service restaurant industry.

B. EVALUATION OF THE VISION AND MISSION STATEMENTS USING DAVID’S

FRAMEWORK

Vision

The company's vision reveals the company's operating ideologies; which became a guide
to the company’s way of service towards the people specifically targeting families. It is also
followed to help them be one of the top 5 restaurant companies in the world.

They are one of the biggest food chain company in the world according to Laura Mullan
of fooddigital.com, with regards to David’s framework it could be seen that the vision indicates
all the major steps that have to be met during the process of operation, illustrates that the process
is a continuous activity.

Mission

The company’s mission statement only states that they would “serve great tasting food,
bringing the joy of eating to everyone”. The one sentenced mission targets a lot from David’s
framework on its components of making the mission statement of a company. It targeted how
customers would be treated, it told of how they would provide products and services, and to
whom they would provide services, it shows their philosophy as a company, self-concept, and
their concern for the public image by wanting to cater to all. Although there are a few from the
eight components missing such as how they would deal with the fast-changing technological
world of today, their concern for survival growth, and profitability of the company.

IV. EXTERNAL ANALYSIS

A. General Environment
ECONOMIC DEVELOPMENT

In the East Asia Pacific region, the Philippines is among the most growing economies. However,
the COVID-19 pandemic has a negative impact on the country's development outlook in 2020.
To protect the most vulnerable members of society and cushion against health and economic
disruptions, timely interventions are vital. (World Bank Philippines, 2021)

Threat: Inflation rate increases

Jollibee Foods Corporation (JFC) owns and operates the Philippines' largest chain of fast-food
restaurants, and it relies on a consistent supply of raw materials, such as fruits, cereals, and
animal products, in vast amounts and at reasonable prices. However, the national headline
inflation rate increased to 4.7 percent in February 2021, up from 4.2 percent in January 2021.
This is the fastest rate of inflation since January of last year. Food inflation increased to 7.0
percent in February 2021, increasing from 6.6 percent the previous month. Inflation in the food
sector was 2.1 percent in February 2020. Over the month of March, the meat index continued to
rise, with its annual rate up to 20.7 percent. Fish had a 5.1 percent annual increase, oils and fats
had a 3.3 percent increase, and food items not otherwise listed had a 4.6 percent increase. (PSA,
2021)

Opportunity: Growth of OFWs

The number of Overseas Filipino Workers (OFWs) who worked abroad at any time between
April and September 2019 was projected to be 2.2 million, according to the findings of the 2019
Survey on Overseas Filipinos (PSA, 2020). This aids the international expansion of local fast-
food chains for Filipino employment.

Threat: Stock market trends

According to Philstocks, confidence would rise if the coronavirus pandemic in the world was
properly controlled and vaccinations were quickly implemented. The stock market is forecast to
end the year between 7,150 and 7,750 points (Philstocks Financial Inc., 2021), with corporate
earnings per share (EPS) expected to rise by 20 to 30%. The continued rise in Covid-19 cases,
the reversion to stricter quarantine policies, the slow pace of economic growth, and that inflation,
all pose risks to the sector.

Opportunity: Strong domestic consumption

The increase in value-conscious customers eager to try new restaurants with a wide variety of
menu choices, including interesting foreign and local cuisines, as well as restaurants that appeal
to increasingly busy lifestyles, is driving the foodservice industry in the Philippines. According
to research conducted by the National Statistics Office's Family Income and Expenditures
Survey (FIES) in 2017-18, a middle-income household will spend 20% of its food budget on
eating out.

SOCIO-CULTURAL DEMOGRAPHIC TRENDS, LIFESTYLE CHANGES

Opportunity: Growth in home delivery sales

According to a survey conducted by Rakuten Insight in the Philippines, due to the forced closure
of all restaurants during the COVID-19 pandemic as of June 2020, 71 percent of respondents
reported that they are ordering more from food delivery services. Only 4% of those polled said
they ordered food online because they couldn't cook. The rise of food delivery apps is also due to
people that are being driven into food app delivery in an attempt to avoid crowded
places/establishments in order to avoid contracting the deadly COVID-19 virus.

Threat: Growing numbers Street Stalls/Kiosks in the Philippines

Over the forecast period, food truck markets are expected to continue operating in the
Philippines. Due to the comparatively low investment needed, more capitalists are likely to be
drawn to investing in food trucks. Also, because of the unique experiences that food truck
markets offer, customers are likely to be drawn by them. These are expected to be popular
destinations, especially among food bloggers and young adults who enjoy going on food
adventures with their friends and photographing unique foods and places of interest.

Opportunity: Filipino consumer preference towards value-for-money goods and services

The price of a good or service will have a big impact on whether people will buy it or not, and if
they do, which competitor they want. In terms of product pricing, a traditional Filipino would
always purchase items that they want as long as they are within their budget. With Jollibee’s
affordable prices of foods and the good quality of their products, many people love it and keep
coming back for it.

Threat: Increased health consciousness in the Philippines

As Asia's economy has grown, local appetites have shifted away from staple grains or towards
poultry, fish, and other foods. According to a research study the "Philippines Food and Drinks
Market: Emerging Opportunities," the increase in demand for healthy food and beverages was
due to the huge young affluent population, the rise of disposable income, and the customer
perception of health and safety issues. When they began to pay more attention to their food
intake, the Filipinos began to consider themselves as health and well-being-minded.

Opportunity: Convenience and experience are primary growth drivers

Convenience is also the foundation of a fast-food chain, and it's one of the main reasons for its
recent development. Fast-food chains are also giving customers the option of ordering food when
and where they want it, using whatever payment system they want, and getting it delivered right
to their doors.

TECHNOLOGICAL DEVELOPMENTS

Opportunity: Significant growth of internet retailing

Internet retailing is likely to keep expanding significantly over the projected era, as more
Filipinos are attracted to the method by the convenience, broad range of items, and enticing
discounts that retailers will continue to offer. More payment options will be made available in
order to allow more people to buy online, like innovations such as cash/credit card purchases of
food deliveries to different locations.

Opportunity: Rampant use of social networking in the Philippines

According to research firms Hootsuite and We Are Social’s Digital 2021 Global Overview
Report, the Philippines has maintained its position as the country with the world's longest
internet usage, with an average of 10 hours and 56 minutes a day compared to the global average
of 6 hours and 54 minutes. According to the same survey, Filipinos also spend an average of 4
hours and 15 minutes a day on social media. People need safety and security as a result of the
pandemic's rapid dissemination of disinformation and uncertainty. Businesses have an important
role to play in promoting security and trust. Their social media accounts should echo a positive
and ambitious brand message for their customers.

ECOLOGICAL ASPECTS

Opportunity: Rising interest for corporate environmental programs

Environmentally sustainable business practices help you minimize the greenhouse effect and
protect natural resources. Your company can improve the world in a variety of ways. Companies
can use items that minimize their dependence on natural resources (like rainwater tanks and solar
hot water systems), as well as recycled-material products (like office supplies made from
recycled plastic, furniture made from recycled rubber). Making a company more
environmentally friendly is not only good for the environment, but it could also save you money.

Opportunity: Increasing emphasis on sustainable business strategies

Supply chain breakdowns, foreign trade issues, and employee protection have been competing
priorities for industries such as food, beverage, and agriculture sectors in 2020. As per decision-
makers, environmental risks outclass operational issues in such industries around the world.
Food, beverage, and agriculture sectors have also begun taking steps to spur a green recovery;
with 55 percent of business leaders surveyed showing increased levels of investment in
environmental sustainability.

Threat: Changes in climate conditions in some regions

The Philippines' agricultural sector is extremely vulnerable to severe weather events like
typhoons, and heavy rainfall affects crop yields, thus produce prices inevitably rise – aggravated
by merchants who raise prices excessively. As JFC relies on a consistent supply of raw materials,
such as fruits, cereals, and animal products, prices could be varied by the availability of supplies.

B. Industry and Competitor Analysis

Porter’s Five Forces

After a brief background of the current state of Jollibee, the group is able to determine Jollibee's
competitive power in the foodservice industry. The five forces by Porter shall be then strongly
considered. The following are:
● Rivalry Among Existing Competitors –High

Jollibee’s rivalry among existing competitors is high due to the numerous stable brands
competing in the industry, leaving the consumers many alternatives to purchase or avail the
foodservice. It has minimal product differentiation, which means that the products or services
they offer have a lot in common together with other brands. Another, the prices they offer are
not that far from other competitors. Through the supporting details, Jollibee Foods and
Corporation has a high rivalry among its existing competitors. But at the same time, it has a
strong competitive edge since the company continues to expand through buying various existing
fast-food chains such as Greenwich, Chowking, Red Ribbon, Mang Inasal, Burger King and
many more.

● Threat of New Entrants –Moderate

Jollibee's threat of new entrants is moderate. Although this fast-food chain is well-known
and prestigious in the Philippines or even worldwide, making it a profitable business. However,
it is considered a medium due to its evident increase of new arising brands or food corporations
that offer similar food products and services towards consumers like the McDonald’s
Corporation. Given that many rising competitors are also widely spreading in the Philippines,
which may have a chance to be a competitive threat to Jollibee Foods and Corporation.

● Bargaining Power of Suppliers –High

Jollibee's bargaining power of suppliers is high due to its number of suppliers who can
readily make supply available in the industry. Meaning the size of suppliers for JFC is abundant.
Another, since Jollibee is a vast and famous brand in the fast-food chain business, especially in
the Philippines, making it famous to many consumers. Therefore, the Importance of Jollibee to
the Supplier's Profit is very high due to the competitive state of Jollibee even nationwide. There
are high purchases of supply that are said to be very significant to the supplier.

● Threats of Substitute Products –High

Jollibee's threat of substitute products is High, although JFC is one of the most
dominating brands in the industry. Still, again due to its various competitors such as Mcdonald's,
K.F.C., Wendy's, Burger King, and Chow King (Direct Competitors) and Reyes Barbeque,
Andoks, Mang Inasal (Indirect Competitors) for instance, this poses a threat to the company due
to its high level of substituting available products. In this case, consumers have immense options
to weigh and purchase other products or brands as their substitutes, which are considered a
barrier to the JFC's perspective. Another, there is a relative pricing performance of other
competitors, which is indeed not far from their offered products and services. Therefore, Jollibee
has high chances of facing threats given its available substitutes in the country.

● Bargaining Power of Buyers –High

Jollibee's bargaining power of buyers is high, considering that JFC has a massive number
of consumers where it plays a significant aspect in its competitive structure since they are the
primary source of business profitability. The company is ensuring that prices are affordable
without compromising their quality and adapting to consumer's demand. Thus, sometimes these
consumers become a little picky in choosing their preferred brands wherein, there is a high
ability to substitute the product, making them available to shift brands aside from Jollibee. Its
low switching cost makes their products or services replicable and comparable to other
competitors, making them, again, prone to switching, making the bargaining power of buyers
high.

2. Competitors Profile

For the year 2020 MCDONALDS KFC BURGER KING

Net revenue $19.21 B $5.1 B $1.6 B

Market share 21.4 % 2.82% 1.2 %

Gross Margin 50.60% 28.81% 10.41%

The fast-food chain industry is evidently very competitive in the market. More likely,
they face international players who have already substantial financial support. The industry faces
low margins and experiences profits as well based on the economic scale. And most of the
competitors are applying different strategies that attract potential consumers or traffic in the
market.

The operation of Jollibee Foods and corporation is more likely affected due to the
existing barriers or factors that contribute to the advantages of other competitors, such as the
threat of substitute products, low switching cost, and others. The existing companies in the
industry are also developing and adapting new schemes to compete with Jollibee, as it highlights
the strategy of expanding the brand, which motivates their competitors to seek improvements.

The mentioned companies above are direct competitors of Jollibee Foods and
Corporation. McDonald's is on the top list and is recognized as a well-known fast-food chain in
the industry, expanding globally and generating 21.4% of market share for the year 2020.
McDonald also has a considerable lead that makes Jollibee want to compete due to its similarity
in product differentiation. Another, the brand KFC was valued at just over 5.1 billion U.S.
dollars, down from the previous year's total of 5.51 billion U.S. dollars. It used to serve the same
menu worldwide, which means that it was using an undifferentiated targeting strategy. There are
 very few outlets that serve anything vegetarian. But when it comes to non-vegetarian, KFC is
just superb. Lastly, Burger King generated approximately 1.6 billion U.S. dollars in revenue
during the 2020 financial year. It shows a 10% decrease over the previous year's total of 1.78
billion U.S. dollars. Due to various local, national and international fast-food chains, it is
becoming difficult for the company to increase its customer. It is famous for innovative products
such as Hamburger, Whopper and others which is helping the company to increase its market
share. Generally, the existing competitor increases its strategy on various aspects of the business
to increase their opportunity to be the preferred brand by many competitors.

COMPETITIVE PROFILE MATRIX

RATING SCALE:
1 = Major Weakness 2 = Minor Weakness 3 = Minor Strength 4 = Major
Strength

JOLLIBEE MCDONALD KFC BURGER

S KING

Critical Success Factor Weight Rating score Rating score Rating score Rating score

Product Quality 0.20 4 0.80 3 0.60 4 0.80 4 0.80

Customer Loyalty 0.15 4 0.60 4 0.60 4 0.60 3 0.45

Price Competitiveness 0.20 4 0.80 4 0.80 3 0.60 3 0.60

Advertising 0.15 4 0.60 4 0.60 3 0.45 3 0.45

Global Expansion 0.05 3 0.15 4 0.20 4 0.20 4 0.20

Service 0.15 3 0.45 3 0.45 3 0.45 3 0.45

Store Location 0.10 4 0.40 4 0.40 4 0.40 3 0.30

TOTAL 1.00 3.8 3.65 3.5 3.25

The following are the chosen critical success factors which the group recognizes which
area must be performing at the highest possible level, namely Product Quality, Customer
Loyalty, Price Competitiveness, Advertising, Global Expansion, Service and Store Location. The
group rated how the companies are doing well in the following factors; ranging from 4 as the
major strength to 1 as the major weakness. The ratings are subjectively assigned to each
company which involves the approach of benchmarking, wherein the group reveals a comparison
to other competitors in the industry.

The table shows that in terms of the overall Critical Success Factor, Jollibee is relatively
doing better compared to its other competitors. Wherein, McDonald comes in second, KFC in
third place, and Burger King placing as the last among the groups. It means that Jollibee Foods
and Corporation were able to meet its capacity to satisfy consumers' needs, provide positive
emotional experiences, offer reasonable prices, reach their intended markets, customer service,
and others, which plays a significant role in performing their business in the industry.

SUMMARY AND CONCLUSION

OPPORTUNITIES THREATS

Filipino consumer preference towards value- Growing numbers Street Stalls/Kiosks in the
for-money goods and services Philippines

Rampant use of social networking in the Increased health consciousness in the

Philippines Philippines
Growth in home delivery sales Rivalry Among Existing Competitors

Threats of Substitute Products Inflation rate increases

Bargaining Power of Buyers

Changes in climate conditions in some
regions

EFE Matrix Tool

External factors evaluation Weight Rating Weighted

Score

OPPORTUNITIES

Filipino consumer preference towards value-for-money .12 4 0.48

goods and services

Rampant use of social networking in the Philippines .13 4 0.52

Growth in home delivery sales .10 4 0.4

Threats of Substitute Products .08 3 0.24

Bargaining Power of Buyers .10 4 0.4

External factors evaluation Weight Rating Weighted

Score
 THREATS

Growing numbers Street Stalls/Kiosks in the Philippines .08 4 0.32

Increased health consciousness in the Philippines .13 2 0.26

Rivalry Among Existing Competitors .10 3 0.30

Inflation rate increases .07 3 0.21

Changes in climate conditions in some regions .09 3 0.27

TOTAL: 1 3.4

Therefore, the most important external factors for Jollibee Foods Corporation are the
Filipino consumer preference towards value-for-money goods and services which had the
weighted score of 0.48 and the rampant use of social networking in the Philippines that has a
weighted score of 0.52. Jollibee Foods Corporation has been seen on advertisements from
different social networking sites and they have been proven to be in favor of the taste of the
Filipino people with a low price for their products.

The overall weighted score of Jollibee Foods Corporation is 3.4 which is considered
above average. This will imply that the company is aggressively pursuing opportunities and
responding to challenges from the threats given by the environment.
 V. INTERNAL/COMPANY ANALYSIS

A. Review the company’s performance in terms of key performance indicators:

1. Revenue/sales in the past three years

Horizontal analysis is an approach used to analyze historical financial information over

different time periods. In this section, a Comparative Sales Revenue of Jollibee Foods
Corporation (JFC) from 2016 to 2018 is shown with horizontal analysis to assess the
performance of the company for the past three years.

2016 2017 2018

Sales Revenue 115,613,542 133,613,086 161,199,388

Sales Revenue 15.57% 20.65%

Growth
COGS 94,617,560 109,694,675 133,894,709

COGS Growth 15.93% 22.06%

Gross Profit 20,995,982 23,918,411 27,304,679

Gross Profit 13.92% 14.16%

Growth

Jollibee Foods Corporation has continued to grow its business for the past three years,
with sales revenue growth of 20.65% in 2018 and 15.57% in 2017. COGS also grew by 22.06%
in 2018 and 15.93% in 2017. Moreover, gross profit has also increased by 14.16 percent and
13.92 in 2018 and 2017, respectively.

2. Financial Ratios

Financial Ratio analysis is a useful tool that helps the management analyze financial data
on the company’s financial statements to evaluate the financial condition and performance of the
company.

Liquidity Ratios

2016 2017 2018

Current Ratio = Current Assets 30,368,735 37,328,92 42,738,20

0 1
Current Liabilities 23,831,414 26,946,84 34,184,52
0 7

1.27 1.39 1.25

Quick Ratio = Quick Assets 24,381,389 30,493,40 33,926,02

6 7
Current Liabilities 23,831,414 26,946,84 34,184,52
0 7

1.02 1.13 0.99

Current ratio measures the company’s ability to settle short-term liabilities using its
current assets or assets that can be easily converted to cash within a year. A current ratio of
above 1 indicates that the company has enough current funds to pay off its short-term
obligations. JFC maintained good current ratios for the past three years, its lowest 1.25x in 2018
compared to 1.39x in 2017 and 1.27x in 2016.
Quick ratio is almost similar to the current ratio, except that it does not include the
inventory in taking quick assets to use to extinguish current liabilities. A ratio of 1 is considered
normal; it indicates that the company has sufficient assets that can be quickly liquidated to pay
off its current obligations. JFC reported .99x in 2018, a decline from 1.13x in 2017.

Profitability Ratios
Gross Profit Margin (GPM) is a measure of profitability that shows the percentage of
sales revenue that remains after it covers the cost of goods sold. It indicates the efficiency of the
company in handling its operations. JFC’s gross profit margin for the past three years has
declined as it diversified its revenue base with more brands and higher store outlets overseas. It
posted 18.16% in 2016, 17.90% in 2017 and, down again to 16.94% in 2018.
Operating Profit Margin (OPM) shows the proportion of the profit which the company
generates from its operations after deducting the cost of goods sold and operating expenses.
JFC's OPM has also declined from 5.59% in 2016 to 4.99% in 2017 and 4.85% in 2018.
Like GPM and OPM, the company’s net profit margin has also decreased for the last
three years. In 2016 it generated 5.24%, down to 4.99% in 2017 and down to 4.82% in 2018. Net
profit margin is the portion of revenue after deducting all expenses. It is calculated by dividing
the net profit by revenue.

2016 2017 2018

Gross Profit Margin Gross Profit 20,995,982 23,918,411 27,304,679
=
Sales Revenue 115,613,54 133,613,08 161,199,38
2 6 8

18.16% 17.90% 16.94%

Operating Profit Gross Profit - 6,465,047 6,669,655 7,815,596

Margin = OPEX
Sales Revenue 115,613,54 133,613,08 161,199,38
2 6 8

5.59% 4.99% 4.85%

Net Profit Margin = Net Profit 6,053,509 6,672,582 7,771,335

 Sales Revenue 115,613,54 133,613,08 161,199,38
2 6 8

5.24% 4.99% 4.82%

ROA = Net Income 6,053,509 6,672,582 7,771,335

Total Assets 72,728,352 89,783,895 113,851,82
2

8.32% 7.43% 6.83%

ROE = Net Income 6,053,509 6,672,582 7,771,335

Stockholder's 34,281,404 42,581,979 49,918,151
Equity

17.66% 15.67% 15.57%

Return on Assets (ROA) indicates how efficient a company’s management is at using its
assets to generate net income. Looking at the data above, JFC’s ROA has experienced a
downtrend from 8.32% in 2016 to 7.43% in 2017 and 6.83% in 2018. Return on Equity (ROE)
which shows how efficient the company’s management in generating income from utilizing
shareholder’s investments, is also on the downtrend for the past three years from 17.66% in
2016, down to 15.67% in 2017 and, a slight decrease to 15.57 % in 2018.

Leverage Ratios

2016 2017 2018

Debt to Equity Ratio = Total Debt 38,446,948 47,201,91 63,933,671
6
Total Equity 34,281,404 42,581,97 49,918,151
9

1.12 1.11 1.28

Debt to Assets Ratio Total Debt 38,446,948 47,201,91 63,933,671

= 6
 Total Assets 72,728,352 89,783,89 113,851,82
5 2

0.53 0.53 0.56

One of the commonly used leverage ratios is the Debt to Equity Ratio. It measures the
company’s financial leverage. It shows the extent to which a company is financing its operations
through debt versus shareholder’s equity. A ratio of less than 1.0 is considered less risky than
companies having greater than 1.0. Over the past three years, JFC’s debt is higher than its equity
posting ratios at 1.12x, 1.11x, and 1.28x in 2016, 2017, and 2018 respectively.
Whereas, debt to assets ratio measures the degree of debt relative to the company’s
assets. From the above table, JFC posted a lower than 1 ratio (.53x, 53x, 56x) for the last three
years which means the company has more assets than liabilities. The data shows that the
company has maintained the debt to asset level at 53% to 56%.

Activity Ratios

Inventory Turnover Ratio(ITR) shows how many times a company has sold and
replenished inventory during a period. A faster ratio implies strong sales. ITR in 2017 of 16.05x
is higher compared to 15.80x in 2016 and 15.19x in 2018.
Days Sales Outstanding (DSO) measures the average number of days it takes for a
company to collect payment for credit sales. From the data below, the company is averaging 10
days to collect its account receivables from 2016 to 2018.

2016 2017 2018

Inventory Turnover Cost of good sold 94,617,560 109,694,67 133,894,70
= 5 9
Inventory 5,987,346 6,835,514 8,812,174

15.80 16.05 15.19

DSO = Accounts 3,376,702 3,941,073 4,862,744

Receivable
Total Sales/360 321,149 371,147 447,776
10.51 10.62 10.86
B. Do an organization diagnosis using:
1. McKinsey’s 7S Model analysis on Jollibee Foods Corporation

Hard Elements analysis

Strategy: Jollibee Foods Corporation has a well-defined strategic direction and business strategy
that is efficiently communicated with employees and stakeholders. Through this practice, they
are able to manage business performances and devise plans that compliment and support their
business strategy. Jollibee Foods Corporation also assesses competitive pressures and activities
of competitors in order to create suggestive measures and actions to address these said
competitions and ensure sustainable and competent growth for the organization. The
organization continues to maintain a flexible and adaptable strategy that allows them to
proactively respond to demands globally.
Structure: Jollibee Foods Corporation has a flat organizational hierarchy that is secure. This
means they have lesser managerial roles and emphasizes more on senior management and
leadership. Incorporating a flatter structure paves way for quicker decision making processes.
This allows the organization to be progressive. They possess a hybrid structure between
centralization and decentralization, they support decentralized decision making by giving
employees the responsibility to have mutual coordination with co-workers and supervisors. In
terms of centralization, supervisors oversee, approve and provide tactics suggested by employees
to ensure that standards are met.

Systems: Jollibee Foods Corporation consists of several departments that all work harmoniously
towards productivity and growth. Each department is equipped with specifically designed tools
to evaluate, control and measure performances. These departments ensure that business
operations are effectively managed.

Soft Element analysis

Shared Values: The organization makes sure to align all aspects of their services, activities, and
operations with high ethical standards. These are well-fostered throughout the organization. The
organization has a strong corporate culture that encourages inclusiveness, diversity, innovation
and creativity, all of this helps employees perform preferably and at the same time enhance
organizational commitment and motivation.

Styles: Jollibee Foods Corporation engages and involves its employees by giving them
responsibilities aligned with decision-making processes and managerial decisions. This form of
leadership style allows senior managers to interact and identify with employees.

Staffs: With a large number of employees, the organization is known to be an inclusive company
that accepts and encourages diversity regardless of societal status or disabilities by working in
synchronization with employees to attain business and organizational goals.

Skills: Employees have high skills and capabilities. The organization ensures hiring the best
professionals according to their strategic goals and nurtures them for further growth and
development. Skills are specifically developed as per role and requirement wherein other
competitors cannot imitate employee skills or training.

C. From the above, identify the company’s major strengths and weaknesses
 STRENGTHS WEAKNESSES

Strong Brand Presence Less to none healthy menu options

Extensive and Unique menu Filipino centered food that may not be
Celebrates Filipino culture foreigners are accustomed to
Has branches worldwide Products change rarel
Affordable pricing Unhealthy meals
Strong brand advertising and High competition with other fast-food
marketing tactics brands.

D. Use the IFE matrix to evaluate the overall internal strengths and weaknesses of the
company.

IFE MATRIX

Internal factors Weight Rating Weighted Score

evaluation

STRENGTHS

Well-known brand .10 4 .4

Wide variety of food .08 3 .24

items

A taste of Filipino .05 4 .2

food

Branches all over the .07 3 .21

world

Affordable prices .14 3 .42

 Strong brand .12 4 .48
advertising

Internal factors Weight Rating Weighted Score

evaluation

WEAKNESSES

Health conscious .08 2 .16

people

Filipino centered food .06 2 .12

Products change .05 3 .15

rarely

High employee .10 3 .3

turnover

Unhealthy meals .04 2 .08

Existing competitors .11 3 .33

TOTAL 1 - 3.09

Based on the IFE matrix, the most important factor for Jollibee is the strong brand
advertising, which has a weighted score of 0.48. They focused on this because this will greatly
affect their profit and image. They used different platforms such as commercials on televisions
and radio, as well as various social media sites. Jollibee is also being advertised by famous
celebrities which encourages people to try their products. They also have different stories of the
experiences of people and families that became united and happier after eating meals from
Jollibee. They put a big emphasis on families eating together at Jollibee which is one of the traits
of us Filipinos, we enjoy eating together and bonding with our loved ones.

The overall weighted score of Jollibee is 3.09, this is considered high. This shows that
Jollibee is working hard to adapt to the new normal and figuring out how to respond to the
challenges their company is facing.
E. Summary and Conclusion

Jollibee is not as well-known outside of the Philippines as other fast food chains. The business
has vulnerability when it comes to potential competitors and earnings. The most important factor
for Jollibee is about strong brand advertising in which the weighted score is 0.48. In terms of
sales, Adeva said JFC considers it a "bonus" that the global effect of Kwentong Jollibee has
people queuing up to eat not only at Jollibee's 1,000+ stores across the Philippines, but also at
Jollibee's nearly 200 stores outside the region. For every Kwentong Jollibee they produce, they
look at engagement as an indication of how powerful the storytelling was and how relatable their
materials are to our publics. On the other hand, one factor that hinder Jollibee’s Productivity is
the health conscious people in which the weighted score is 0.16 since people are becoming
increasingly aware of their lifestyle choices; they search out nutritious foods; some exercise
regularly and convert to vegetarianism; and many children, as well as adults, are now obese. This
will present a challenge for Jollibee in terms of how they will respond to changing consumer
demand.

VI. STRATEGY FORMULATION

A. Use the different strategy formulation tools (SWOT, SPACE, BCG, IE, GE/McKinsey,
GRAND, and QSPM) and other relevant analytical and matching tools to come up with strategic
options and directions for the company. Explain the results of your analyses.

SWOT Analysis
 ● Well-known brand
Strengths ● Wide variety of food items
● A taste of Filipino food
● Branches all over the world
● Affordable prices
● Strong brand advertising

● Health conscious people

Weaknesses ● Filipino centered food
● Products change rarely
● High employee turnover
● Unhealthy meals
● Existing competitors

● Filipino consumer preference

Opportunities towards value-for-money goods
and services
● Rampant use of social
networking in the Philippines
● Growth in home delivery sales
● Threats of Substitute Products
● Bargaining Power of Buyers

● Growing numbers Street

Threats Stalls/Kiosks in the Philippines
● Increased health consciousness
in the Philippines
● Rivalry Among Existing
Competitors
● Inflation rate increases
● Changes in climate conditions in
some regions

Internal - External (IE) Matrix

SPACE Matrix
This particular SPACE matrix tells us that Jollibee Food Corporation should pursue an
aggressive strategy as to what the directional vector suggests. The company is in a strong
competitive position. The results show us that the company has a strong financial position and
has achieved major competitive advantages in an attractive and relatively stable industry. To
maintain stability or achieve excellence in the industry, they must use their internal strength for
market penetration, product development, and market development strategy.

VII. OBJECTIVES, STRATEGY RECOMMENDATIONS AND ACTION PLANS

A. Strategic and Financial Objectives

Jollibee Foods Corporation aims to become one of the top 5 restaurant companies in the world,
to continuously be acknowledged as one of the best companies to work for, regarded for their
efficient systems and processes, highly engaged teams, and people-focused culture.

In the next three to five years, Jollibee Foods Corporation would have achieved the following
objectives.

Financial Objectives:

1. Increase revenue by 35% than the previous years.

2. Lessen profit loss by 20%
3. Retain positive market share
4. Invest a total of P12.2 billion for 2021 (22% higher than 2019) to fund the opening of 450
stores.
5. Acquire equal sales from both its local and international stores by 2022.
6. Provide the fastest and most consistent service–bring down service time from 3 minutes
to no more than 1 minute.
7. Lessen turnover rate by 15% by 2022 compared to the generated turnover rate of 21.5%
last December 2020.
8. To embark on an aggressive international expansion plan to open more branches
worldwide and establish itself as a growing international QSR player. Expansions would
be made specifically in North America, Vietnam and China by the year 2023

Strategic objectives: These should define the major strategic thrust of the company. The
strategic objectives should consider the following:

1. To be a strong and unmatchable Quick Service Restaurant (QSR) competitor with rivals
such as Mcdonalds in 4 years time.
2. Develop a strong and stable brand image outside of the Philippines in terms of
development, operation, and franchising specifically in North America, Vietnam and
China.
3. Lessen turnover rates
4. Create a strong and flexible contingency plan to address economical, technological and
ecological constraints or challenges.
B. Recommended Business Strategies

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

The company used prefabricated material to construct stores, thus saving a substantial amount of
time and money.

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.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.

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)].

C. Recommended Organizational Strategies

1. Identify strategies that will involve the necessary changes needed in order to align the
organization with the requirements of the business, given the long-term objectives and
strategies.

The BCG Growth Share Matrix is a portfolio-planning model established in the 1970s
based on the observation that a company's business segment can be divided into four
groups based on combinations of market growth and market share relative to the largest
competitor, hence the term "growth-share." (Netmba.com, n.d.)

THE FOUR CATEGORIES ARE:

● Leaders in industry are stars (high

growth and market share). They
generate a lot of money due to their
large market share, but they also
spend a lot of money due to their
high growth rate. Otherwise, the star
will become a CASH COW unless
efforts are taken to maintain market
share. 2007 (Wadekar)

● Cash Cows (low growth and high

market share) are the company's
backbone and are often the stars of
the past. Cash cows, as market
leaders, have a higher return on
assets than the market growth rate, and therefore produce more cash than they
consume. Profits are extracted from such businesses by spending as little money
as possible. 2007 (Wadekar)
● Dogs (low growth and market share) have little ability to produce or consume
significant sums of money. Dogs, on the other hand, are known as cash traps due
to the capital invested in a company with little potential. 2007 (Wadekar)
● Question marks (high growth and low market share) grow rapidly and consume a
lot of money, but since they have low market shares, they don't generate as much
money. As a consequence, there is a lot of net cash consumption. When market
growth slows, question marks have the ability to become a star and potentially a
cash cow. If they do not succeed in being the market leader and market growth
slows, they have the ability to become a dog. Question marks must be closely
examined in order to determine if they are worth the investment required to
increase market share.
2. Identify strategies that will address the identified internal strategic issues, address the
organizational weaknesses of the company or take advantage of its strengths.

● Invest in people, resources and processes.

The human resources department plays an important role in implementing effective
organizational strategies. Investing in top-grade professionals, resources and consistent
efforts to evaluate business processes would offer unique perspectives that would help
boost organizational performance.

● Give importance towards Human Resources.

These are the organization’s strongest and most valuable assets that should be given
priority. This would reduce high turnover rates and promote productivity. Employees
must feel motivated to work in order to create synergy within the organization.

● Make use of Culture, keep the customers in mind.

Jollibee Foods corporation is known for highlighting culture when marketing their
products. Organizational effectiveness goes hand-in-hand with the needs and interests of
consumers. In order to stay relevant and competitive, there is a need to make use of
culture and trends.

● Promote inclusivity and diversity.

Opening opportunities for over-looked communities such as the differently abled and
people of different backgrounds to work for the company could be a chance to promote
the brand as an enterprise who is socially aware and responsible. This would help build a
positive image without exploitation.

● Incorporate online and internal surveys.

Online surveys can help the organization learn about what consumers want in terms of
menu options and local tastes or specialties. Internal surveys can provide the organization
an outlet to voice out their ideas, opinions and suggestions through scheduled
assessments. This will help foster better communication within the company and generate
useful concepts for the business as well.

VIII. STRATEGY IMPLEMENTATION

A. The Strategy Map

1. Translate your strategy recommendations into a strategy map for the company.
Financial

Customer

Internal Process

Learning and
Growth

B. Departmental Action Plans and Programs

JOLLIBEE FOOD CORPORATIONS

Company Address Line

 Phone: 634-1111
Email: president@jollibee.com.ph
Website: http://www.jollibee.com.ph

ACTION PLAN
For the Period: December 31, 2022
Objectives Tasks Success Criteria Time Frame Resources

Maintain high In order for Jollibee Success will be These tasks The management
performing to maintain high identified when must be done must see to it that
motivated performing the turnover rate daily. they monitor and
employees motivated is low and when take care of their
employees, they the employees employees.
have to listen to the continue to have
needs and concerns high
of their staff and to performance.
ensure that they are
happy with their job
so that they will
continue to perform
well.

Train The company should Success will be These tasks The Human
employees to host regular training identified by should be Resource
improve sessions by shift or how well is the done manager is in
organizational department for the performance of frequently. charge to train
performance employees to the employees the employees.
perform their jobs and the
with greater workplace.
competency and for
the business to run
more smoothly.

Create an The company must Jollibee will be This must be The management
inclusive and have team building able to identify if conducted must organize
diverse and have activities they are twice in a this event and all
workplace that make them successful when year. the employees
united and work as a their staff are must cooperate
team. united and so that this will
accept and be a success.
respect each
 other's
differences.

Stay informed In order for the The company This must be All the
of consumer company to know will be able to done employees must
tastes and the taste and identify their everyday. work hand in
preferences preference of their success if the hand in order for
consumers, they customers are this particular
must conduct satisfied with task to succeed. 
surveys like giving a their food. 
feedback sheet to
customers or simply
asking them for
comments regarding
the food.

Provide great To be able to provide If the company Training must The organization
customer great customer receives good be performed and the staff has
service service, there must and positive before to work together
be a training feedback from accepting the for this to
program given customers that is employees succeed.
before the applicants how the and briefing
will be accepted and company will should be
briefing every start identify if this is done daily,
of the shift to remind a success. before their
them on what to do. shift.

Increase Recognition and Success will be This must be The management

efficiency and incentives must be identified when done daily or must learn to
productivity in given to employees the task is done monthly. recognize and
the workplace that perform well efficiently and reward the
every month, in productively, efforts of the
order to boost their also when the workers.
morale and for them employees are
to have the motivated.
motivation to keep
working hard.

Come up with Conduct a meeting Success will be This must be Individuals from
many ideas to and brainstorm with identified when done once a various
fulfill customer the team to generate the team land on week.  departments
needs and unique ideas the perfect idea (cross-functional
wants teams) should
work together to
get the best
outcome. 

Offer many Continuous If unique and Must be The organization

interesting brainstorming of the creative products conducted should think
products team, asking for and ideas are monthly. outside the box,
feedback and being created. be open to
suggestions from the suggestions, and
customers, and be up conduct research.
to date on the trends.

As mentioned When there are This should The cooperation

Improve earlier, asking for positive be performed of the
customer customer feedback comments daily. management and
satisfaction and conducting regarding the all the employees
training and briefing food and service, is needed for this
to the staff will as well as having to succeed.
improve customer regular and loyal
satisfaction. consumers.

Keep new and The team of the Success will be This should Individuals from
existing company should identified when be done once various
customers look at the analytics the team a week.  departments
coming back and track data on identifies the (cross-functional
customer trends and gaps teams) have to
engagement with the and there will be give insight into
business and new an increased what they can do
conversions. percentage in better and where
conversions. they're already
killing it.

For the company to When there is an Every season The management

Grow profits grow their profit, increase in the or holiday, for must brainstorm
they must offer profit of the example and research to
seasonal items to company. during come up with
entice customers to Valentines or unique and
try their products Christmas. creative products
and reduce food and plan the
 waste. menu properly to
reduce waste.

Grow revenues In order to grow the When the The company Cooperation of
revenue of the revenue should do this all the employees
company, they increases. daily. and innovative
should expand their ideas of the
services like management is
focusing on having needed.
an online ordering
site and delivery and
pick-up.

C. Financial Projections and Overall Evaluation of the Strategies

1. Show and discuss the long-term financial plan/projections in comparison with historical
performance. Show and discuss the projected Income Statement, Balance Sheet, and Cash Flows.
Indicate ratio to sales and annual growth rates. For non-business oriented organizations, the
financial projections may only involve projected budgets, costs or expenses.

IX. STRATEGY EVALUATION, MONITORING AND CONTROL

Balance Score Card

Themes: Strategic Perspectives Measuremen Targets Initiatives
 Operation Objectives t
al
Excellenc
e
 Customer
Service
Excellenc
e
 Business
Growth
 Manage
 Net Financial
income  +20% Ratios
Financial  Sales  +10%  Grow
growth Intangible
Assets
 Satisfactio
n survey  Touch-to-
rating order system
 10/10
 Percentag  Overhead
rating
e of
 100%
Transport
customers System
Customer who (OTS)
return
 Recognize
the
 Less Importance
 Seconds than 1 of Customer
to serve a minute Loyalty
Internal Process  Recruit and
customer  All
 Analysis respon Train the
from the dents Right People
survey  1/week  Set goals for
data  10 customer
 Team differen service
meeting t types  Make
 Number of customer
Learning and of SKUs product happiness
Growth offered
the end goal
across the
company
 Employee  Build a
Motivatio  1/mo. driven
n Survey customer
 Hours of  10h/m service team
Training o.  Mentorship
 Diversity  Annuall program
& y
 Enhance
Inclusion
Initiatives  1/week
cross-
 Number departmenta
of polls l
 collaboratio
n
from  Build a
Social powerful
Media customer
service
toolkit

APPENDICES
A. 3-year Financial Statement

JOLLIBEE FOODS CORPORATION

Statement of Financial Position
(Amounts in Thousand Pesos)
Years Ended December 31, 2016 to 2018

2018 2017 2016

ASSETS
Current Assets
Cash and cash ₱ 23,285,915 ₱ ₱
equivalents 21,107,474 16,733,346
Short-term 883,200 1,413,400 726,002
investments
Receivables 4,862,744 3,941,073 3,376,702
and contract
assets
Inventories 8,812,174 6,835,514 5,987,346
Other current 4,894,168 4,031,459 3,545,339
assets
Total 42,738,201 37,328,920 30,368,735
Current
Assets
Noncurrent
Assets
Financial assets 39,842 – –
at fair value
through profit
or loss
Available-for- – 29,862 26,212
sale financial
assets
Interests in and 3,512,230 7,492,771 9,873,297
advances to
joint ventures,
co-venturers
and associates
Property, plant 26,693,991 20,893,814 16,655,567
and equipment
Investment 848,974 848,974 983,428
properties
Trademarks, 31,830,057 15,730,239 9,086,742
goodwill and
other
intangible
assets
Operating lease 31,635 28,035 25,995
receivables
Derivative asset 82,852 11,949 78,329
Deferred tax 4,322,996 3,908,813 2,585,495
assets - net
Other 3,751,044 3,510,518 3,044,552
noncurrent
assets
Total 71,113,621 52,454,975 42,359,617
Noncurren
t Assets

₱ 113,851,822 ₱ ₱
89,783,895 72,728,352

LIABILITIES
AND EQUITY
Current
Liabilities
Trade payables ₱ 28,716,769 ₱ ₱21,960,56
and other 25,254,613 7
current
liabilities and
contract
liabilities

Income tax 263,473 223,773 309,331

payable
Current
portion of:
Long-term 4,892,102 1,216,219 1,561,516
debt
Operating 300,945 252,235 -
lease payables
 Liability for 11,238 - -
acquisition of
a business

Total 34,184,527 26,946,840 23,831,414

Current
Liabilities

Noncurrent
Liabilities
Noncurrent
portion of:
Long-term 21,372,251 14,901,052 10,593,850
debt
Liability for 2,907 - -
acquisition of
a business

Pension 1,320,646 1,489,546 1,658,178

liability
Operating lease 2,715,978 1,799,332 1,792,897
payables - net
of current
portion
Derivative - 51,042 33,531
liability
Provisions 825,109 825,109 30,501
Deferred tax 3,512,253 1,188,995 506,577
liabilities - net
Total 29,749,144 20,255,076 14,615,534
Noncurren
t
Liabilities

Total 63,933,671 47,201,916 38,446,948

Liabilities
Equity
Attributable to
Equity Holders
of the Parent
Company

Capital stock - 1,088,036 1,084,478 1,074,123

net of
subscription
receivable
Additional 8,638,438 7,520,383 5,660,085
paid-in capital
Cumulative 589,501 340,368 (20,811)
translation
adjustments of
foreign
subsidiaries
and interests in
joint ventures
and
associates
Remeasuremen (307,995) (461,769) (608,801)
t loss on net
defined benefit
plan - net of tax
Unrealized gain - 6,758 4,291
on change in
fair value of
available-for-
sale financial
assets

Comprehensive 82,852 11,949 (33,530)

income on
derivative
liability
Excess of cost (1,804,766) (2,152,161) (2,152,161)
over the
carrying value
of non-
controlling
interests
acquired

Retained
earnings:
Appropriated 20,000,000 18,200,000 18,200,000
for future
expansion
Unappropriate 20,257,995 16,413,140 11,659,531
d
48,544,061 40,963,146 33,782,727
Less cost of 180,511 180,511 180,511
common stock
held in
treasury
48,363,550 40,782,635 33,602,216
Non- 1,554,601 1,799,344 679,188
controlling
Interests
Total Equity 49,918,151 42,581,979 34,281,404

₱113,851,822 ₱89,783,895 ₱72,728,35

2
 JOLLIBEE FOODS CORPORATION
Income Statement
(Amounts in Thousand Pesos)

Years Ended December 31, 2016 to 2018

2018 2017 2016

REVENUES
Gross Sales ₱153,068,666 ₱126,229,530 ₱108,992,341
Sales discount (2,867,840) (1,565,982) (1,067,887)
Net sales 150,200,826 124,663,548 107,924,454
Royalty, set-up 8,475,070 6,913,003 5,887,016

fees and others

158,675,896 131,576,551 113,811,470
PFRS 15 impact 2,523,492 2,036,535 1,802,072

on system-wide

advertising fees
161,199,388 133,613,086 115,613,542
DIRECT COSTS 133,894,709 109,694,675 94,617,560
GROSS PROFIT 27,304,679 23,918,411 20,995,982
EXPENSES
General and 15,461,474 13,905,845 11,861,440

administrative

expenses
Advertising and 4,027,609 3,342,911 2,669,495

promotions
19,489,083 17,248,756 14,530,935
INTEREST

INCOME

(EXPENSE)
Interest income 415,385 259,567 286,913
Interest expense (888,843) (405,820) (267,618)
(473,458) (146,253) 19,295
EQUITY IN NET (86,750) (282,645) (337,145)

LOSSES OF

JOINT

VENTURES

AND

ASSOCIATES
OTHER 3,235,196 2,098,753 1,582,923

INCOME
INCOME 10,490,584 8,339,510 7,730,120

BEFORE

INCOME TAX
PROVISION

FOR INCOME

TAX
Current 2,822,092 2,310,630 2,334,855
Deferred (102,843) (643,702) (658,244)
2,719,249 1,666,928 1,676,611
NET INCOME 7,771,335 6,672,582 6,053,509
 JOLLIBEE FOODS CORPORATION
Statement of Cash Flow
(Amounts in Thousand Pesos)
Years Ended December 31, 2016 to 2018

2018 2017 2016

CASH FLOWS

FROM

OPERATING

ACTIVITIES
Income before ₱10,490,584 ₱8,339,510 ₱7,730,120

income tax
Adjustments

for:
Depreciation 5,909,760 4,745,166 3,995,868

and

amortization
Deferred 961,756 256,630 193,237
rent

amortization

- net
Interest 888,843 405,820 267,618

expense
Gain from (754,804) (1,328,733) –

the re-

measuremen

t of the

previously

held interest
Reversals of

impairment

losses on:
Property, (408,184) (2,111) (2,000)

plant and

equipment
Receivable (23,675) (20,705) (3,188)

s
Inventories (6,148) (53,819) (18,129)
Interest (415,385) (259,567) (286,913)

income
Stock 311,964 227,483 241,324

options

expense
Equity in net 86,750 282,645 337,145

losses of

joint
ventures and

an associate
Loss (gain) 49,791 129,371 (3,298)

on

movement

in derivative

liability
Loss (gain)

on disposals

and

retirements

of:
Property 45,540 174,510 236,809

and

equipment
Investment – (231,036) –

properties
Movement 39,705 37,840 89,781

in pension

liability
Accretion of 14,945 3,274 –

debt issue

cost
Impairment

losses on:
Receivable 10,188 143,772 91,415

s
Inventories 8,278 7,443 78,621
 Other – 122,759 –

assets
Property, – 431,939 42,731

plant and

equipment
Net (5,007) (6,913) (79,314)

unrealized

foreign

exchange

gain
Provisions – 794,609 –
Loss (gain) – 116,207 (66,695)

on

divestment

of

subsidiaries

and interest

in joint

venture
Income before 17,204,901 14,316,094 12,845,132

working capital

changes
Decreases

(increases) in:
Receivables (740,070) (532,690) 2,299,070
Inventories (1,919,312) (715,127) (593,238)
Other (540,941) (229,836) 327,544

current
 assets
Increases in 1,910,083 2,176,062 1,865,217

trade payables

and other

current

liabilities
Net cash 15,914,661 15,014,503 16,743,725

generated from

operations
Income taxes (2,782,392) (2,396,189) (2,261,503)

paid
Interest 361,394 225,314 278,099

received
Net cash 13,493,663 12,843,628 14,760,321

provided by

operating

activities
CASH FLOWS

FROM

INVESTING

ACTIVITIES
Acquisitions of:
Property, (9,520,681) (8,904,796) (6,694,133)

plant and

equipment
Interest in (1,410,885) (531,147) (1,617,092)

joint

ventures
 Minority (528,800) – (2,070,159)

interests
Intangible (111,216) (69,634) (23,706)

assets
Available- – (450) –

for-sale

financial

assets
Proceeds from

disposals of:
Property, 932,283 362,288 92,730

plant and

equipment
Investment – 365,490 –

properties
Subsidiaries – – 96,486

- net
Decreases

(increases) in:
Short term- 530,200 (687,398) 196,315

investments
Other (102,327) (482,215) (170,598)

noncurrent

assets
Interests in – 337,960 –

and

advances to

joint
 ventures, co-

venturers

and

associates
Cash (paid) (3,798,118) 105,251 113,358

received from

acquisition of

business - net of

cash

received
Dividends 34,637 20,037 –

received from

non-controlling

interests
Advances to a – (1,059,786) –

joint venture
Net cash used in (13,974,907 (10,544,400 (10,076,799

investing ) ) )

activities

CASH FLOWS

FROM

FINANCING

ACTIVITIES
Proceeds from:
Long-term ₱ ₱ 5,517,281 ₱ 2,993,810
 debt 11,126,459
Issuances of 475,537 861,125 368,620

and

subscription

s to capital

stock
Payments of:
Long-term (5,524,746) (1,607,623) (929,558)

debt
Cash (2,667,060) (2,347,164) (1,988,082)

dividends
Short-term – – (282,360)

debt
Liability for – – (94,852)

acquisition

of

businesses
Interest paid (731,670) (360,856) (232,646)
Contributions 11,417 14,578 715,608

from non-

controlling

interests
Net cash 2,689,937 2,077,341 550,540

provided by

financing

activities
NET 2,208,693 4,376,569 5,234,062

INCREASE IN
CASH AND

CASH

EQUIVALENT

S
EFFECT OF (30,252) (2,441) 1,724

EXCHANGE

RATE

CHANGES ON

CASH

AND CASH

EQUIVALENT

S
CASH AND 21,107,474 16,733,346 11,497,560

CASH

EQUIVALENT

S AT

BEGINNING

OF YEAR
CASH AND ₱ ₱ ₱

CASH 23,285,915 21,107,474 16,733,346

EQUIVALENT

S AT END OF

YEAR
B. Pictures of Group (profile of group, meetings, interviewee(s), etc…)
C. Learning per member of the group
D. Location Map (if applicable)

References:

SWOT Analysis Template. (2020). SWOT analysis of Jollibee 2020. Retrieved from
https://www.swotanalysistemplate.com/swot-analysis-of-jollibee/

Marketing Trending Content Team. (2020). SWOT analysis of Jollibee in 2020. Retrieved from
https://marketingtrending.com/swot-analysis-of-jollibee/

Jollibee Fast-food Filipino way (2003) Retrieved from

https://www.icmrindia.org/casestudies/catalogue/Business%20strategy1/Business%20Strategy
%20Jollibee%20Fast-Food%20the%20Filipino%20Way.htm

‘Kwentong Jollibee’ campaign sets bar for digital marketing (2018). Retrieved from
https://www.manilatimes.net/2018/02/11/business/kwentong-jollibee-campaign-sets-bar-digital-
marketing/379510/

Jollibee Foods Term Paper. Retrieved from

https://www.academia.edu/8529016/Jollibee_Foods_Term_Paper

Grayson, L. (2021). How to improve profits in a fast food restaurant. Retrieved from
https://smallbusiness.chron.com/improve-profits-fast-food-restaurant-31525.html 

Landau, C. (2021). 10 Tips to increase your restaurant sales in 2021. Retrieved from
https://articles.bplans.com/6-ways-to-increase-sales-for-your-restaurant/