MBA 631-1- Entrepreneurship

Prof. Benedicto L. Avila

Torres, Rielyn Ruth M.

JOLIBEE FOOD CORPORATION CASE STUDY

A. Executive Summary
Jollibee Foods Corporation (JFC) is the most successful fast food chain in the Philippines.
It started out as an ice cream parlor owned by the Tan family, headed by Tony Tan Caktiong
(TTC) as President. Brought about by oil crisis which doubled the price of ice cream, JFC
diversified into hamburgers in the year 1977. Jollibee’s philosophy is epitomized by “Five Fs” –
Friendliness, Flavorful food, Fun atmosphere, Flexibility in serving customer needs, and Focus
on families. Though it began as a family business, eventually, it went public in 1993. JFC
expanded its business through acquisition of other food chains but Jollibee stores remained the
bread and butter of the parent company, contributing 85% of total revenues. Jollibee had grown
quickly having a total of 223 stores worldwide by the end of year 1997.
Jollibee ventured into overseas expansion attempts since 1985 but were mostly unsuccessful
due to location and partner issues. In 1993, TTC hired an Australian national Tony Kitchner (who
was the former VP for International Operations in Pizza Hut for 14 years), to lead JFC
International Division in order to push its international presence at full throttle. Tony Kitchner
initiated many drastic changes in the division from modifying office design and dress code to
pushing aggressive expansion strategies and rebranding Jollibee’s image offshore. Kitchner’s
bold strategies strained the International Division’s relations with the Philippine-based
operations.
After Kitchner left in 1997, a new head of the International Division—Manolo P. Tingzon, has
been appointed by TTC. Apparently, Tingzon has to deal with the international expansion
problems passed on by his predecessor. Of the various issues he has to resolve, he identifies
three immediate growth opportunities which will certainly lay out the International Division’s
future direction.
Purpose, Mission, and Vision
To improve the quality of life of people by playing its part and offering healthy food. It
wishes to help the world in shaping a healthy and better future. Its vision is to supply its
consumers with food that is healthy, high in quality and safe to eat. It wishes to be innovative
and concurrently understand the needs and requirements of its customers. Its vision is to grow
quick and provide products that would please the needs of each age. It is the leading company
in the food industry, it believes in 'Great Food, Excellent Life'. Its mission is to supply its
customers with a range of options that are healthy and best in taste. It is concentrated on
supplying the best food to its consumers throughout the day and night.

B. Statement of the Problem

The main problem that was being faced by the company was its deteriorating strategies
of expansion. Company was trying much harder to achieve foreign achievement and to make
itself
successful. However, the company was unable to find a trustworthy partner and the strategies
that would make them successful.

C. Areas of Consideration
Strengths
 Iconic Filipino Flavors: This have been modified to appeal to a broader audience.
Filipinos and non- Filipinos adore their famous dishes like Chicken Joy, Jolly Spaghetti,
and Peach Mango Pie. Since these dishes are created using high-quality ingredients, the taste
and flavor are consistent throughout all Jollibee locations.
 Customer Centric Approach: Jollibee has always put its consumers' needs and
preferences first - a customer-centric strategy. Through surverys and social media, the
business continuously solicits clients' evolving demands. The menu at Jollibee offers a
range of alternatives, including vegetarian selections, to accommodate various dietary
requirements.
 Innovation and creativity: Jollibee has consistently been at the forefront of
innovation and inventiveness. Over the years, the business has added several other menu
dishes, like Chicken joy with Rice and Gravy, which has become a favorite among Filipinos.
  Strategic Expansion: It has assisted the business in effectively entering new areas.
The corporation focused on regions with sizable Filipino communities, like the Middle East,
Canada, and US, where the brand is already well-knows.
 Broad Network: Jollibee has an extensive network of stores and franchises across
multiple countries. The company's broad network has enabled it to reach a large
customer base and establish itself as a global brand.
 Customer Loyalty and 24/7 Service: Jollibee's focus on customer satisfaction has
helped it build a reputation as a brand that cares about customers and values their
loyalty. Also, Jollibee's 24/7 services have also helped it capture a larger market share and
increase its revenue streams.

Weaknesses
 Health consciousness: Leading consumers to opt for healthier food options. Jollibee's
menu is heavily focused on fast food and friend items, which are perceived as unhealthy
by some consumers. Jollibee needs to develop a more diverse menu that includes
healthier options such as salads, grilled items, and vegetarian options.
 Supply and demand imbalance: Result of company's rapid expansion, which has led
to the inability to meet the increasing demand for its products. This problem is
compounded by the company's inability to efficiently manage its supply chain, leading to
frequent stockouts in some location.
 Inaccessible in some areas: It has yet to establish a significant foothold in other
markets. This makes it difficult for the company to compete with established market
players.
 High-end prices: Products are priced higher than many competitors, making them
less accessible to price-sensitive consumers.

Opportunities
 Innovation: By continuing to develop new unique products and services, Jollibee can
maintain its competitive edge and attract new customers. Company can also leverage
technology to develop innovative solutions for improving its operations and customer
experience.
 Lowering product release cost: To leverage technology to optimize its supply chain
and reduce costs associated with product development and release.
 Jollibee Food Corp. provide business operational training program for new applicants
which provides seminars and hand-on exposure to all level of store operation.
 Expanding and adapting the menu to align with healthier and more sustainable food
options.
Threats
 Stiff competition from low-priced brands: Jollibee faces stiff competition from low-
priced brands, such as McDonald's and KFC, which are established in the market. These
brands have a strong brand image and are well-known for their quality product and
services.
 Economic Issues: Consumers are becoming more conscious of their spending habits.
The company will have to adapt to this trend by offering economic diets or value meals,
which will help to attract price-sensitive customers.
 Expansion into New Market: The company's aggressive expansion strategy has
entered new markets and countries such as the United States, Canada, and the UK.
Jollibee must carefully evaluate risks and opportunities of each new market it enters.
 Continuous Change in Consumer Preferences: There has been a growing trend
towards healthier eating habits, which has led to the rise of plant-based food and
vegetarian options.

D. Alternative Course of Action:

This is to address Company's Challenges and Opportunities.
 JFC must first know and understand cultural differences and develop appropriate
means of addressing these differences.
Advantage: Company will be able to know what food and taste to be produced and
based on the research and development results.
Disadvantage: Some products lines may be drop due to consumers' preferences. Filipino
taste and style may not be suitable for foreign countries.

 Diversification- Jollibee could use diversification to expand its business by acquiring

internationally known companies. Company's menu can include healthier
options, such as salads, vegetarian choices, and low-calorie meals.
Advantage: The intent of the franchisee is a great indicator on the direction of the
company. Tells what the franchisee is aiming. Jollibee Food Corporation can take
advantage of existing expertise, knowledge and resources in the company when
expanding into new activities. This may result in transfer of skills, such a research and
development knowledge and sharing of resources.
Disadvantage: This is considered the riskiest and the most expensive form of strategy in
the Ansoff Matrix since it involves new products and new market bundled into one.

 Market Development- Being geographic set up as the focus of the company,

Jollibee Foods Corporation could develop franchise partners toward countries with
existing Filipino minorities.
  Co-Branding of Existing Company- Jollibee Foods Corporation could use co-branding
by using JFC's existing business such as Red Ribbons, Chowking, Burger King Philippines,
to partner up.

E. Conclusion
Jollibee's success story is testament to the company's strengths, allowing it to establish a
strong presence in highly competitive fast-food industry. The company's focus on customer
satisfaction, menu diversification, and ability to adapt to different markets have been critical
factors in its success. Additionally, Jollibee's strong leadership and ownership structure have
allowed it to maintain its vision and commitment to delivering high-quality food and service to
its customers. Jollibee's journey from a small ice cream parlor to a global brand has been
remarkable, and its achievements are a testament to its unwavering commitment to excellence.
By offering unique and innovative menu items, the company has appealed to many customers,
from traditionalists to those seeking new and exciting taste experiences.

Furthermore, Jollibee's marketing strategies have also played a crucial role in its success.
The company's use of catchy slogans, memorable jingles, and relatable advertising campaigns
has helped it to establish a strong brand identity and create an emotional connection with its
customers. Jollibee's success results its unique strengths, which have enabled it to build a loyal
customer base and expand its operations into new markets. As the company continues to grow
and evolve, it will face new challenges. Still, its commitment to excellence and customer
satisfaction ensures it will remain a strong contender in the fast-food industry for years.