Financial

Since its inception as a corporation in the late 70s, Jollibee has seen strong financial growth.
Asseen in the financial data provided, Jollibee’s sales and revenue has been on the rise in the
recentyears. As shown in their revenues, an amount of $12.9 billion pesos in 1998 was
graduallyincreased to $26.2 billion pesos in 2004, and indicating strong growth and ability to
compete inthe already dense fast food market locally and internationally. The organization going
public onthe Philippine Stock Exchange in 1993 acts as a foundation for the rapid expansion of
its storeslocally and internationally

Organizational Design

The decentralization of its operations in 2000 enables the organization to manage their business
on a manageable scale. Four autonomous regional business units dealing with human
resources,administration, finance and network development enabled the company to focus their
operationson a corporate level and allowing the RBUs to achieve greater efficiency.

Physical

As of June 2005, Jollibee has a total of 1200 stores locally and internationally. A
diversificationof food products enabled the organization to reach out to a variety of customers
and making themas a market leader in the Philippines. Due to the geographical structure of the
country, they are theonly fast food chain that operated nationwide, and in some locations face no
other competitions.
Risk Management

The acquisition of several new brands such as Greenwich, Chowking and Delifrance allow
thediversification of its products into different market niches. It proved to be a hedge
againstdownturns and competition and as seen in the case study, most of the acquisitions are the
leader intheir respective market segment.

Product Development

The main draw for customers into Jollibee’s restaurants is the appeal for local styled food
cateredto Filipinos’ preferences. This is evident as they are constantly adding its product range
on top of their already popular favorites menu, in order to allow its local customers to experience
thetraditional Filipino way of having local flavored taste in a comfortable setting.

Marketing

Jollibee projects itself as being closer to Filipino families as compared to its competitors. There
isalready widespread awareness locally that Jollibee is a local Filipino establishment, which in
turnappealed to the mass population whom felt more comfortable in a familiar setting. Tailoring
itsmenu towards the Filipino taste, it positioned itself as the favorite destination for family
outings as compared to its similar competitors.

Value Chain Analysis

Primary Activities

Outbound Logistics

Individual RBUs are able to achieve greater efficiency in the delivery of products and
services,quicker coordination, and more timely decision making due to this decentralizing.

Marketing and Sales

Portraying itself as a fast-food outlet of high-quality at an affordable price specifically tailored

for the Filipinos, the chain has appealed to patriotic locals. With its introduction of in-store
playactivities for children and a cast of brand mascots, it reaches and appeals to the children and
isevidently more popular than its nearest competitors. Recognizing that a normal Filipino
family’s weekends are normally reserved for children, the previously mentioned activities add
value to Jollibee's position as the prime destinations for family outings.

Service

The Filipino speaking crew appeals to the locals more than its competitors where their crew
spokein English. It is also in Jollibee’s commitment that this service component of their business
to their customers must be fast and at the same time being courteous.

Support Activities

Procurement

Being a major player in the Fast-food industry in Philippines, they constantly enjoyed
economiesof scale in terms of retail site selection, procurement, manufacturing, distribution, and
marketinglevels unavailable to most industry players.

Human Resource Management

To attract the right talent and retaining of valuable staffs, the compensation and benefits
packageat Jollibee is the highest in the Philippine fast-food industry. Employees are to
undergocomprehensive training programs based on underlying standards. Managers also
received ongoingtraining in the latest operations systems and people-management skills.
Opportunities areavailable for crew members to advance into a management role in the
organization.

Firm Infrastructure

Decentralizing its organization into 4 autonomous business units, that corresponded to

thecountry’s major geographical markets. This enables the Head Office to focus its operations on
thekey marketing, finance, restaurant systems and engineering functions and act as a support
andadvice to the RBUs.

Business Fundamentals Analysis

Economics

The uncertainties of competition from foreign players as well as downturns in specific

marketniches are omnipresent in our current economic nature. Other uncertainties also come in
the formof financial crisis in the region as well as in the country it is operating in.

Stakeholders

Three groups of stakeholders of Jollibee are identified whom are affected by the
strategicoutcomes and discussed below

Capital Market Stakeholders

Jollibee’s capital market stakeholders include its shareholders whom have a direct interest in
thecompany. Since going public on the Philippine Stock Exchange, Jollibee had been able to tap
onthis key resource to expand its horizon within and beyond the local Philippine’s market. The
importance of the capital market stakeholders is also evident in the growing operations of
Jollibeeover the years.

Product Market Stakeholders

Jollibee’s product market stakeholders include its customers locally and globally, as well
assuppliers of its food sources.Jollibee has been able to capture the market share of the fast food
going customers due to itsunderstanding of locals’ preferences and it quality and competitive
pricing of its food. Anapproximate 1 million customers ate at Jollibee’s stores daily, making
them an importantstakeholder in this category.
The large daily requirement of food resources had enabled Jollibee to enjoy better prices through
economies of scale from its suppliers.

Organizational Stakeholders

Jollibee’s organizational stakeholders include its large number of employees under its
corporation(26,500 employees as of 2004), its managers and its franchisees.In maintaining its
high standards, Jollibee’s compensation, benefits and comprehensive training programs ensure
they have the best employees that are available.
General Environment Analysis (PESTL)

The general environment consisting of 6 segments and the analysis of its effects on Jollibee is as
shown below.

Demographic

In the local Philippines context, the million consumers walking into Jollibee’s stores
dailyrepresent strong demand for its products. The uniqueness of the geographical landscape
of Philippines has also made it a challenge for fast-food companies. Globally, there are
manyFilipinos workers situated in the overseas market, especially in the United States where
there areestimated to be around 2 million Filipino immigrants. Besides the US, many Filipinos
are alsosituated in parts of Asia such as Hong Kong, Brunei and Indonesia. Not limiting to
Filipinos, their stores have also attracted other Asians to eat at their restaurants.

Economic

The growing economic capabilities of developing countries have attracted major players in
thefast food industry to establish their stores there. Likewise for Jollibee, the growing
market possibilities in Indonesia for Chinese food enabled Jollibee to venture into the market
byintroduction of Chowking Brand. The potential China market for fast food also led Jollibee to
acquire 85 percent ownership in Yong he King Chain.

Sociocultural
The social and cultural of each country differs from one another. For example, a Chinese
might prefer to have noodles instead of rice in Japan. In our case of Jollibee, the “langhap-sara”
concept adopted by them may be hugely popular to Filipinos consumers, but this concept may
not do sowell in global markets. Foreign consumers might not like the traditional taste
of Jollibee’s food,as compared to bigger global players such as McDonald.

Global

The ever changing global landscape is one of the critical factors Jollibee has to consider.
Asillustrated in the case study, Philippines have seen major global players entering the fast-
foodmarket having a take on this pie. Although Jollibee have always been the dominant in
thissegment, competing in foreign markets seems to be in a different story. Not only they have
to penetrate the foreign market with their proven and successful local recipe, they would also
have tocompete against already established players such as McDonald, Wendy’s and KFC.

Industrial Environment Analysis ( Porter 5 forces)

Threat Of New Entrants

bargaining power of Suppliers
Bargaining Power of Buyers
threat of substitute products
Intensity of rivalry among competitors