STRATEGIC PLAN FOR

JOLLIBEE FOODS CORPORATION

A Strategic Management Paper

Presented to the Faculty of De La Salle Lipa,

College of Business, Economics, Accountancy and Management

In partial fulfillment of the requirements for the degree of

BSA

Atienza, Shannen Aubrey

Maranan, Jere Mae

Osicos, Kathleen

January 2022
 TABLE OF CONTENTS

TITLE PAGE Page

TABLE OF CONTENTS .......................................................................................

LIST OF TABLES .................................................................................................. i

LIST OF FIGURES................................................................................................. ii

LIST OF APPENDICES......................................................................................... iii

EXECUTIVE SUMMARY.................................................................................... iv

INTRODUCTION.................................................................................................. 1

Background of the Company..............................................................

VISION / MISSION ANALYSIS .......................................................................

INDUSTRY AND COMPETITOR ANALYSIS..................................................

Industry Analysis.......................................................................................

Key Success Factors...................................................................................

Competitor Analysis..................................................................................

COMPANY ANALYSIS......................................................................................

McKinsey’s 7S Framework.........................................................

Functional Analysis...................................................................................

STRATEGIC/LONG TERM OBJECTIVES.............................................................

STRATEGY FORMULATION.............................................................................

Generation of Strategic Options.................................................................

Recommended Business Strategies.............................................

ACTION PLANS AND DEPARTMENTAL PROGRAMS...........................

STRATEGY REVIEW, EVALUATION AND CONTROL...........................

APPENDICES...................................................

REFERENCES
EXECUTIVE SUMMARY

INTRODUCTION

Jollibee Foods Corporation (JFC) is a Filipino multinational company and the owner of the

largest fast-food chain in the Philippines, Jollibee. Jollibee is known for its taste of home for Filipinos,

from its buckets of fried chicken, signature Yumburgers, and hot dog-stuffed sweet spaghetti, it is truly a

food for the Filipino soul. But before it was known as one of the top and leading fast-food chains, not

only in the Philippines but across the globe, Jollibee had its humble beginnings. Jollibee started as an ice

cream parlor when its founder, Mr. Tony Tan Caktiong had an ice cream plant tour, which led him to use

their family savings to franchise Magnolia Dairy ice cream. This incident happened around 1975 and after

such, his family opened up two store locations which are in Cubao and Quiapo. After this, instead of

selling ice cream alone, the owner found out that there is a demand for sandwiches and other hot savories

that he later added to their menu.

The non-ice cream products became more popular in 1978 and the restaurant cut its ice cream

franchise and was rebranded. During this time, the restaurant was still named ‘Jolibe’ until Manuel

Lumba, who became the business mentor and consultant of the growing business, renamed it Jolly Bee

that later became ‘Jollibee'. Aside from renaming the restaurant’s name, Lumba found out that there was a

larger market for hamburgers and Tan Caktiong believed in his insights that led them to turn the business

into a hamburger fast-food restaurant (Lim Uy, 2019). Since then, Jollibee has been working on building

their identity until early 2000s, the business began acquiring three Philippines-based food brands

including Chowking, a Chinese fast food restaurant, Red Ribbon, a bakery chain, and Mang Inasal, a

chicken barbeque restaurant. Currently, Burger King, Dunkin' Donuts, Pho 24, Hard Rock Cafe, Coffee

Bean and Tea Leaf, Smashburger, and its other overseas branches of the corporation are also under its

management. Jollibee has over 1,150 stores nationwide and has several international branches all over the

world such as in Vietnam, Brunei, Hongkong, Singapore, Macau, Malaysia, US, Canada, Saudi Arabia,

UAE, Qatar, Kuwait, Bahrain, Oman, Italy, and the United Kingdom.
VISION

Jollibee’s vision is “to be the dominant number one in branded eat-out in the Philippines”. This

vision statement reflects the aspirations of Jollibee to be the top fast-food restaurant in the country despite

the increase of fast-food restaurants within the industry that offer similar products and services.

MISSION

In terms of the organization's purpose and its overall intention, Jollibee’s mission is “to serve

great tasting food, bringing the joy of eating to everyone”. This mission of Jollibee conveys its desire to

ensure that the business provides their valued customers with great satisfaction through delivering

great-tasting yet affordable food choices and the best quality services.

INDUSTRY AND COMPETITOR ANALYSIS

A. Industry Analysis

The Fast-food Restaurants, a segment under the restaurant industry, where Jollibee operates

within is an industry that is familiar with almost all people. From the fast-food restaurants at the exit of

every highway, rest stop, food courts, malls, airports, and other establishments, they can be found

everywhere. Besides, they offer convenient food options that can be consumed any time of the day. Like

other businesses in different industries, dynamics in the fast-food industry are also changing as they

respond to the changing taste and preferences of their consumers. For the past years, restaurants within

the industry have been trying to develop unique and diverse restaurant concepts and menu choices to

compete and be profitable. According to Franchise Help (2020), on the global level, the fast-food industry

generates over $570 billion of revenues that is bigger than the revenues that most countries produced in a

single year. Globally, the industry has a compound annual growth rate (CAGR) of 2.5% from 2020-2027

and is expected to have a revenue of $931.7 billion by 2027. The significant growth is linked to the
increased number and popularity of fast-food restaurants, investment in tech-savvy ordering options,

change in consumer preferences, and rise in the number of women in the industry (BusinessWire, 2020).

Meanwhile, according to Priya (2020), fast-food restaurants in the Philippines have a market size valued

at $4.6 billion in 2018 with a CAGR of 6.9% from 2019-2026. In the same article, it was mentioned that

Filipinos have been living an “increasingly stressful and time-starved lifestyle” that leads to the increased

demand for readily available and take-away food that has resulted in rapid growth in the number of

fast-food restaurants in the country. In fact, almost 76,000 outlets were recorded in 2012 and this was

increased to 93,000 in the year 2018. Hence, the fast-food industry in the Philippines shows commendable

growth in the coming years aside from the fact that the market of fast-food restaurants in the country has

been highly competitive because of the presence of several international players that are competing to

attract the same target market of consumers.

To further analyze the competitive structure of the fast-food industry, Porter’s five forces

framework is used.

Porter’s Five Forces Model

Threat of New Entrants

Since Jollibee is a known brand and already in the market for the long run, it has established its

identity and gained loyalty from its customers. In addition, due to large capital requirements and licensing

costs to start a fast-food restaurant, new entrants may be discouraged to compete in the existing industry

of fast-food chains. Also, large companies such as Jollibee already have access to distribution channels

that allow them to reach their market more easily. Overall, the threat of new entrants is low.

Rivalry amongst Existing Firms

 Jollibee’s product differentiation is low and there are many established fast-food chains that can

compete against Jollibee such as McDonald’s, KFC, and Wendy’s. These establishments are competing

for the same consumers who can easily look for alternatives. Therefore, rivalry amongst existing firms is

high.

Bargaining Power of Buyers

One of the indicators that there exists a strong bargaining power of buyers is when buyers

purchase a large number or portion of the products or services that a certain business offers. But since

most of the customers of Jollibee only purchase in small quantities, they are not likely to influence the

product price. Also, due to the availability of alternatives and limited food choices, the substitution cost

that customers could incur is also low. Therefore, the bargaining power of buyers is low.

Bargaining Power of Suppliers

Since Jollibee is in the food industry where the raw materials are not unique and hard to produce,

there are a number of suppliers that can readily supply the materials, therefore, the switching cost is also

low. Because of this, suppliers do not have significant influence as to the quality of materials they supply

to the business so, there is low bargaining power of suppliers.

Threat of Substitutes

As mentioned earlier, one of the weaknesses of Jollibee is having limited food choices. Because

of this, customers have a lot of options or substitutes to choose from. There are a variety of restaurants

that serve similar kinds of food such as McDonald’s, Wendy’s, and KFC. For example, Jollibee suddenly

ran out of chickens, customers can easily go to McDonald’s to avail similar products. Therefore, the threat

of substitutes in the case of Jollibee is high.

 Overall, based on the analysis of the industry and the competitive structure of the fast-food

industry through Porter’s five forces model, it showed that the industry is a thriving industry before and

amidst the pandemic. Their growth is due to the increasing popularity of convenient food products and

food that can be served quickly. Moreover, many firms in the industry like Jollibee have been established

already within the industry so, there is a low threat of new competitors. However, the main challenge

would be the low product differentiation among restaurants in the fast-food industry. Therefore, firms like

Jollibee should continue to improve their products and services to compete otherwise, many substitutes

are available for their target consumers.

B. ENVIRONMENTAL ANALYSIS (KEY SUCCESS FACTORS)

I. Economic development

According to Rivas (2021), in November this year, the inflation rate of the Philippines remains

above 4.2%. This high inflation rate affects food prices and other commodities. As a result, the

purchasing power of the consumers declines, therefore, affecting the performance of business

establishments such as Jollibee. Likewise, the country is still behind on handling the pandemic that

resulted in a high unemployment rate and economic downturn that can have a significant impact on

businesses.

II. Socio-cultural, demographic trends, lifestyle changes

Even before the pandemic, there has been a growing interest in healthy foods among consumers

as they are becoming more health-conscious and aware of the danger of eating fast-food. These changing

preferences may greatly affect Jollibee and other businesses within the same industry. In addition,
nowadays, consumers tend to patronize the products of the companies who take part in preserving the

environment and addressing social issues through their sustainability practices. Another social factor that

could affect the business is the living wage of their target market. Food prices have been constantly

increasing yet the basic salary of workers is barely increasing. As a fact, the minimum wage is only

ranging from Php 316-537 depending on the region (Medina, 2021). This amount of income is barely

enough to support the needs of a family in a day.

III. Technological developments

As the world becomes more modern, businesses should be able to be at par with technological

advancements that will help their business reach their target market more. In the case of Jollibee, they use

the media well to advertise their products and continue to communicate their values through their

family-oriented and heart-warming TV and social media advertisements. Moreover, to enhance their

customer experience, in 2019, Jollibee launched self-order kiosks that allow their customers to customize

and make orders at their own pace (BusinessMirror, 2019). Also, as online food delivery services are

becoming a trend especially during this pandemic, Jollibee should be able to improve their online services

to reach their customers well.

IV. Political, legal, government aspects

Like any other business establishment, Jollibee must comply with government policies, rules, and

regulations such as those related to taxes and labor. When it comes to taxes, recently, the government has

passed the Tax Reform for Acceleration and Inclusion (TRAIN) law that includes lowering the corporate

income tax which benefits the company (Golez, 2019). Aside from this, since Jollibee operates

worldwide, they have to comply and make sure that their business activities are in accordance with the

laws and regulations of a certain country where they conduct business. When it comes to labor, the
business has to comply with labor standards and laws governing the rights of the employees including

their safety in their work environment and having equal work opportunities. Other than this, as climate

change becomes more serious, it has become a political issue that needs to be addressed. Connecting this

to the fast-food industry where Jollibee operates within, it was found out that the fast-food production has

been a major source of carbon emissions that creates a major damage to the environment. Camfil Air

Filters (2017) briefly explained how the whole process of fast-food significantly contributes to the

worsening pollution. It was revealed that fast-food generates large emissions because meat products they

offer require a higher carbon footprint than vegetables to be produced. Moreover, hamburgers, which are a

popular food among fast-food restaurants, are commonly grilled which is found to release more hazardous

particles than factory emissions. To add, electricity, which is a source of carbon emissions, is very crucial

to the operation of restaurants from their manufacturing plants and distribution centers up to their stores.

Hence, the food industry where fast-food restaurants belong face major challenges on how to contribute to

preserving the environment.

With the analysis of the internal and external factors that influence the performance of the

organization and assessing the operating environment of Jollibee, the following opportunities and threats

are identified:

OPPORTUNITIES

● Expansion in the local market- Although Jollibee has over a thousand branches in different

parts of the Philippines, there are still many locations where there are no Jollibee stores even

though there is a demand. Especially in the provinces, people have to travel to the nearest city

where there is a Jollibee store to eat on a regular day or celebrate on special occasions.

● Create a menu that caters healthy options- Since there has been an increase in the number of

people who are becoming health-conscious, Jollibee might find this as an opportunity to cater
 healthy food options. Currently, Jollibee has only offered foods that are high in cholesterol which

is not good for one’s health.

● Increasing investment on e-commerce- The COVID-19 pandemic also serves as an opportunity

for the company to focus its operations on e-commerce due to trends on online ordering and food

delivery services. With this, JFC should invest in technology, create an online ordering platform

and form partnerships with delivery service providers. This would help increase the number of

customers and may also increase the revenue.

● Product Innovation- The Company should develop or innovate new product ideas to address the

demand of customers for vegan and diet food options. It should expand its product portfolio to

increase its sales.

THREATS

● Rising number of health-conscious consumers- Nowadays, there is an increasing number of

people who are becoming health conscious. According to a news article published by Commetric

(2019), health awareness among consumers is becoming a trend that could likewise affect the

growth of the fast-food industry. In the same article, it was further claimed that fast food can be

described as similar to tobacco as both are addicting and can trigger premature death and chronic

illnesses. Moreover, it was determined that a large percentage of people who are in Generation Z

(41%) and Millennials (32%) are willing to pay more to have healthier food options. Therefore,

the rise in health-conscious consumers would greatly affect the fast-food industry.

● Global health pandemic- As we all experience, the global pandemic has restricted our

movements and contact with other people that even going to our favorite restaurant, which was

our habit before, almost became a luxury. Compared to other industries such as the tourism

industry, the food industry is less affected since their products are essential and online delivery

platforms and drive-thrus are available that allow contact-less interactions. However, the loss

incurred due to restrictions imposed cannot be ignored. In fact, Rivas (2021) revealed that
 Jollibee had recorded a loss of 11.5 billion pesos in 2020 and had to close hundreds of its stores

and delay projects to compensate for the losses.

● Rise in food prices- As has been mentioned, the inflation rate is still above 4.2%. This affects

food prices and other commodities. Due to the high prices of food, customers may be reluctant to

spend money on fast food that could likewise affect the sales of Jollibee.

● Competitors- A strong competition among fast-food chain restaurants around the world can

impose a serious threat to Jollibee Foods Corporation. Some of the major competitors of the

Company include McDonald’s Corporation, Starbucks, and Nestle. These companies have higher

market share, and are actively engaged in international operations. They also utilize different

marketing strategies to reach a larger market.

External Factor Evaluation (EFE)

Table 1. External Factor Evaluation (EFE) Matrix

External Opportunities Weight Rating Weighted Average

Expansion in the local market 0.07 3 0.21

Creating menu with healthy food options 0.17 2 0.34

Investment in e-commerce 0.07 3 0.21

Product innovation 0.17 2 0.34

External Threats Weight Rating Weighted Average

Changing consumer tastes and preferences 0.17 2 0.34

Global health crisis 0.15 2 0.30

 Rise in food prices 0.10 2 0.20

Competitors 0.10 3 0.30

TOTAL 1.00 2.29

EFE Matrix is a strategic tool used to evaluate the firm’s existing strategies and external

environment; the EFE matrix consists of external factors such as opportunities and threats that allow the

company to give more attention to important relationships that affect each key factor. It also helps the

company weigh the importance of each relationship. The weights determine which is the most important

factor that affects the success of Jollibee Food Corporation, while the ratings show how the firm reacts or

responds to the external factors.

The table shows that in terms of the external opportunities, ‘creating menu with healthy food

options’ and ‘product innovation’ got the highest score. This means that these are the factors that the

company could incorporate into their strategies for further growth of the business. Meanwhile, in terms of

the external threats, it showed that ‘changing consumer tastes and preferences has the highest score

among the listed threats. As there has been an increasing number of consumers who prefer healthy food

options, the fast-food restaurants like Jollibee should consider the changing demand of the consumers in

order to be competitive. Weighted average is then obtained by multiplying the results of both rating and

weight. It showed that the total weighted average of the company is 2.29 which means that Jollibee is

responding above average to the environment for exploiting opportunities and to overcome threats.
C. COMPETITOR ANALYSIS

Competitive Profile Matrix

Table 2. Competitive Profile Matrix

Jollibee McDonald’s KFC

Critical Success Factors Weight

Rating Score Rating Score Rating Score

Product Quality 0.20 4 0.80 3 0.60 4 0.80

Customer Loyalty 0.15 4 0.60 4 0.60 4 0.60

Service 0.15 3 0.45 3 0.45 3 0.45

Price Competitiveness 0.20 4 0.80 4 0.80 3 0.60

Global Expansion 0.05 3 0.15 4 0.20 4 0.20

Store Location 0.10 4 0.40 4 0.40 4 0.40

Advertising 0.15 4 0.60 4 0.60 3 0.45

TOTAL 1.00 3.8 3.65 3.5

Legend:

4-Major strength

3-Minor strength

2-Minor weakness

1-Major weakness
 The Competitive Profile Matrix shows the competitiveness of Jollibee against its competitors,

McDonald’s and KFC. To assess each company’s competitiveness, companies are compared with each

other in relation to the identified critical success factors of the restaurants in the fast-food industry. It

showed that Jollibee has the highest score of 3.8 while McDonald’s and KFC have total scores of 3.65 and

3.5, respectively. The analysis also showed that Jollibee’s strengths relate to its product quality, customer

loyalty, pricing, store location, and advertising.

COMPANY ANALYSIS

McKinsey’s 7S Framework

The McKinsey’s 7S Framework identifies the seven major elements that an organization must

consider to ensure that performance levels are maintained and improved for the offerings. These must

also be aligned to achieve successful change management processes and improve business performance.

The seven elements are categorized as hard and soft elements.

A. Hard Elements

These elements are easy to distinguish, tangible, controlled and influenced by the organization’s

leadership and management.

A.1. Strategy

● JFCs strategy is clearly defined and communicated -The strategy of the Company is clearly

defined and disclosed among employees and stakeholders. This allows the organization to

manage business performance, direct operations and develop various approaches that are in line

with the corporate strategy. The definition and communication of strategies also creates a more

transparent operation.

● Goal-oriented behavior - The Company’s strategic direction is also critical in guiding behavior

of stakeholders towards realization of business goals. In keeping with the business plan, the
 SMART goals are defined with short and long-term deadlines. Employees can use the business

strategy to determine methods and behaviors that will assist the company in achieving goals and

objectives.

● Pressures from competitors- The Company’s strategy also takes into account the competitive

pressures and competitor’s activities. It responds to the challenges by recommending measures

and actions to lower risk of competition through strategic tactics and activities that ensure

Company’s long-term viability, by adjusting to market changes and growing market trends and

expectations.

● Customer demands are shifting- JFCs strategy also takes into account the changing needs and

desires of consumers, as well as altering market patterns and customer behavior. This allows the

Company to stay in a competitive position and relevant to its consumer groups and determine

market gaps.

● Flexible and adaptable strategy-The strategy used by Jollibee Foods Corporation is

characterized as versatile and agile. This is the key part of the Company’s strategic direction.

Inflexibility in strategy can cause a firm to be stagnant and prevent progress in the face of

changing customer markets.

A.2 Structure

● Establishing hierarchy in the workplace- Progressive and learning organizations support the

Company’s organizational hierarchy. Employees feel more comfortable and confident, and the

information are readily available, even with fewer managerial levels between them and more

access to senior management and leadership.

● Coordination between departments-The Company has excellent cross- departmental

coordination. For projects that invol;ve multiple skills, the Company’s departments frequently

establish inter-departmental teams. The Company has a system in place for initiating and

monitoring departmental collaboration to ensure smooth operations and procedures.

● Excellent team dynamics- Teamwork and team-oriented activities are encouraged by the

Company. Specific duties are assigned to jobs that demand individual attention and scope. All

employees are also required to be team players who can work well and get along with others. The

Company’s team are also supportive of all members and work together to attain the broader

objectives, in accordance to the Company’s strategy and values.

● Hybrid structure- JFC is structured in a way that is a mix of centralization and decentralization.

The Company favors decentralized decision-making wherein tasks are designed to be carried out

responsibly, and employees often set their goals in collaboration with their superiors. Meanwhile,

the Company is centralized in ensuring that supervisors review and approve initiatives and

techniques that employees utilize to ensure that it is in accordance with the strategy and values of

the company.

● Effective Communication- The Company has a complex system in place to ensure effective

communication between employees and different levels of management. The communication

methods help improve the overall organizational structure. The systematic, specified, and

regulated communication allows for a smooth flow of information and ensures that no

organizational tasks or goals are jeopardized due to misunderstandings or a lack of

communication.

A.3 Systems

● Clearly defined organizational systems - Jollibee Foods Corporation has clearly defined and

delineated organizational systems in place to ensure that business operations are effectively

managed and that conflicts are avoided. The Company’s organizational systems are primarily

departmental in nature and this include human resources, funding, promotion, business

operations, supply chain management, public relations and strategic management.

● Well-defined and demarcated control systems- The Company has specially built tools and

procedures as controls for measuring business performance and goal attainment in each of its
 defined and demarcated systems. These controls are tailored to each department due to the nature

of the Company’s daily activities and duties.

● Procedures for ensuring organizational alignment- The Company has particular procedures

and methods in place to ensure that all of the departments are aligned and working together to

achieve overall goals and objectives. This is attained by ensuring that every control system is

designing and achieving goals in particular to their areas of competence.

● Controls are being monitored and examined- Jollibee Foods Corporation assesses its control

systems on a regular basis using the controls it has implemented. The monitoring of performance

is continuous and ongoing, and the majority are accomplished by observation or discussions.

Performance evaluations of employees and overall department heads are conducted semi-annually

or quarterly to ensure identification of gaps in performance and address it immediately.

B. Soft Elements

These elements are less tangible and are influenced by the organizational culture hence, the

management has no direct control over it. These are also more challenging to describe and identify, yet

they are important to the overall performance and success of Jollibee Foods Corporation.

B.1 Shared Values

● Jollibee Foods Corporation’s Core Values- The core principles of the Company are created and

conveyed to reflect a supportive organizational structure that allow employees to work at their

best while increasing their enthusiasm and dedication to the Company. The Company also ensures

that all activities are carried out in accordance with high ethical standards. These values include

creativity, honesty, accountability, trust, etc.

● Culture in the workplace- The Company also promotes an inclusive environment that values

diversity. The Company has global presence wherein franchise operations are spread across the

world. With this, it ensures that the culture is supportive of diversity and standard code of ethics

to prevent ethical issues such as discrimination. In addition, the corporate culture of the Company
● Alignment of tasks with company values- Jollibee Foods Corporation ensures that every

activities, actions, methods and strategic tactics are consistent with the Company’s core values.

This reflects that the brand is trustworthy, and has a reliable and honest corporate culture. If there

are instances of organizational changes, the Company guarantees that all change management

methods and procedures include the core values and ensures that organizational culture is

maintained or adjusted if necessary.

B.2 Style

● Style of leadership - The Company facilitates a collaborative leadership style which allows it to

engage its employees in decision-making processes and managerial decisions. This also allows

them to communicate with employees and other stakeholders to identify and resolve any possible

issues and receive feedback on strategic approaches. In addition, the Company improves its

employee engagement and organizational commitment among employees and other stakeholders

using this leadership style.

● Internal cooperation- The Company fosters an internal collaboration and cooperation among

individuals, systems, teams and departments through its supportive organizational culture. These

aspects are critical because the Company’s daily operations are spread around the globe and its

organizational responsibilities require inter-departmental feedback and input. Furthermore, as the

firm expands, project teams are formed on a regular basis, which work well because of its

cooperative and collaborative culture.

● JFCs effective and functional teams- The Company has effective and functional teams that

work collaboratively to attain Company objectives and execute duties. The Company’s

management is also supportive, and the leadership provides a practical vision for the company to

achieve. Through the human resource management system and training, the employees are

supported in their advancement equally and transparently which leads to an effective team

building within the company for diverse projects and department-specific responsibilities and

functions.
 B. 3 Staff

● Skill level of JFC employees- The Company has a significant number of staff working in its

many branches around the world. Employees for various job types and positions are employed

both internally and externally, depending on the level of urgency and skills required. As a result,

it is clear that the Company employs individuals that are skilled in their respective duties and

positions. To familiarize themselves with the organization and enhance their skill level, all

workers receive on-the-job training.

● Number of employees- The Company employed a large number of employees around the world.

It is inclusive, accepting and encouraging diversity, and working in collaboration with members

to achieve corporate objectives. Moreover, the Company’s team members and employees are the

most significant aspect of the Company’s success.

● Deficiencies in necessary capabilities and capacities- The Company has a well-defined strategy

for evaluating possible organizational needs in terms of talent and capabilities. The human

resource function has a systematic approach for identifying possible skill gaps that involves all

other divisions. The Human Resources department provides for recruiting, which may be

permanent or temporary, as well as training sessions for the staff, depending on the nature of the

requirement.

B.4 Skills

● Excellent skills of employees- The Company has a commendable workforce and has excellent

skills and capacities. All personnels are also hired based on their qualifications and merit. The

Company ensures that it hires the best professionals to support strategic growth and development.

● Skills of JFC Employees in Complying with Task Requirements- The Company has defined

responsibilities and job roles, and it hires individuals based on their capacity levels. The

organization ensures that all employment criteria are met, and that they have the necessary

abilities to do their duties based on Company values and culture, as well as corporate goals and

strategy.
 ● Skills Management of Company employees-The Company gives special attention on

developing its employee’s skills and abilities. It organizes training and workshops to provide

possibilities for growth and development. The Company also gives priority to personal and

professional development of employees and collaborates with them to achieve this goal.

● The Competitive Advantage of Jollibee Foods Corporation-One of the Company’s main

competitive advantages is its human resources. The skills of its staff are developed expressly for

work positions and requirements of the Company, and they provide a competitive edge to the

Company because competitors cannot imitate employee skills or training. It also generates a

distinctive and non-substitutable expertise for Jollibee Foods Corporation.

Functional Analysis

Operating Segments

Jollibee Foods Corporation (JFC) develops, operates, and franchises fast-food restaurants

under the Jollibee brand. Food Service, Franchising, and Leasing are the three common market

segments in which the company operates. Under Food Service, the segment manages

quick-service restaurants and produces food products for Jollibee Group-owned and franchised

QSRlocations. With this, the Company’s QSR store concepts are franchised under the franchising

segment. The Leasing division primarily leases its retail locations to independent franchisees of

the Company (Jollibee Foods Corp., 2021).

Operational Success

Jollibee Food’s Corporations success has been attributable to its effort to build a strong

manufacturing and logistical system as well as paid attention to its marketing efforts. The

Company’s quest for operational excellence was evident due to its strong leadership and targeted

approach to globalization. As a matter of fact, the Company establishes new stores in the
Philippines and foreign countries. It uses prefabricated materials for building the stores which

helps the Company to save time and money. The Company also established commissaries in Pasig

and Mandaue wherein it managed the raw materials, ingredients planning, warehousing, food

processing, distribution and logistics (“Jollibee: Fastfood, the Filipino Way”, 2003).

However, the Company’s operations have been greatly impacted by the pandemic as it

needs to temporarily close its stores and limit dine-in operations. The closure of over 255 stores

operating nationwide has resulted in a Php 12 billion net loss in the first half of 2020. Despite the

threats imposed by the pandemic to Company’s sales, it also provides an opportunity to expand its

operations on foreign countries and target more acquisitions as it recovers from the losses

incurred in 2020. Based on an interview with Bloomberg, part of the country’s conglomerate

plans for 2021 is to open 450 restaurant chains worldwide while searching for acquisitions funded

using the cash and short-term investments amounting to Php57.5 billion (“Jollibee targets foreign

expansion”,2021). It is estimated that around 80% of new outlets will operate on foreign countries

and it is equally distributed among China, North America, and Southeast Asia. To attain complete

recovery from the COVID-19 pandemic, the Company plans to enter into expansion mode by

investing in more foreign markets and this will continue in the next few years.
Value Chain Analysis

Figure 1. Value Chain of Jollibee

Source: EMBA Pro (2019)

Value chain refers to the components of a larger value system that comprises entities

either suppliers, distribution channels or both. Jollibee Food Corporation’s management must

consider each action as part of this value system, as well as how increasing or lowering each

activity affects the value chain of the Company. With this, the primary activities and the

supporting activities are the two generic categories in the Company’s Value Chain Model.

Primary Activities

● Inbound Logistics

This activity focuses on establishing relationships with suppliers and involves

internal processes such as receiving, storing and distributing product inputs. According to
 Groysberg & Connolly (2018), some of the potential activities of Jollibee Foods

Corporation include but are not limited to material handling, physical product

warehousing, and architecture to receive and store information of the client. The majority

of Company’s inbound logistic activities are also currently outsourced.On the other hand,

the Company sources its chicken and other ingredients from a variety of poultry farms

across the country. The largest consumer of chicken deals and buys 80% of chicken

supply directly from local poultry farmers under its one “Inclusive Business Program. It

only imports from the United States during the Christmas season. In its corporate

strategy, there are 250 local chicken farms and 2000 farmers involved across the country.

Aside from this, the raw materials are also agriculturally sourced under its Farmer

Entrepreneurship Program. Most of the Company’s raw materials are agricultural base

and purchase its supplies for its burgers, soup, french fries and other food products from

rural farmers. Vegetables such as bell pepper, lettuce, tomato and potato have been

supplied by a farmer cooperative for years now (Rappler, 2012).

● Outbound Logistics

This refers to activities involving distribution to channel partners and final buyers

of the finished goods. Other outbound logistics activities include order fulfillment,

scheduling, warehousing, distribution network, and processing (Groysberg & Connolly,

2018). In relation to this, Jollibee Foods Corporation created a Trucker Quality and

Security Management System as part of its outbound logistic activities to address

concerns on quality, food safety and security. This also allows trucker’s compliance to be

monitored and ensured. The Company also develops quality control measures such as

inspection of freight trucks to assure freshness and on-time delivery of goods (Cunanan et

al, 2019). In addition, the orders made by the customer are also placed in a container,
 whether for dine-in or dine-out, and will be distributed over the counter or via delivery

vehicles. Jollibee also offers quality and speedy delivery services byu emphasizing the

30-minute guaranteed delivery to every branch to give exceptional service to customers

(Ublade, 2019).

● Marketing and Sales

Jollibee Foods Corporation carries out these activities to provide a mechanism for

a buyer to purchase the company’s products. Pricing, advertising and promotion, channel

selection, marketing and sales force management are examples of the marketing and sales

activities. According to Shastri (n.d), Jollibee’s marketing strategy is appealing and

highly marketed. It utilizes television, radio, newspapers, and more to promote its

products to the market. It also relies on a huge volume of customers and effective

operational management. The brand’s unique selling proposition includes food that is

good, clean and inexpensive, caters to the needs of the Filipinos, and the consistency and

dependability across all its outlets.

In terms of marketing mix, Jollibee Foods Corporation has 7 Ps of marketing

such as product, price, place, promotion, people, process and physical evidence. The

Company’s product strategy ensures providing high-quality products. It also has a diverse

product portfolio to reach a wider range of target markets. In company-operated stores,

the Company has more control over its operation, as well as store architecture and design.

Online order placements and tracking website was also successfully launched.

In company-operated stores, Jollibee Foods Corporation has more control over

operations, as well as store architecture and design. An online order placement and

tracking website was successfully launched. For promotion strategy, Jollibee uses social

media to interact directly with customers. As part of its promotion initiatives, it employs

community influencers. In addition, it also provides loyalty cards for customers to

 exchange points for merchandise or other presentes at the Company’s discretion. In terms

of pricing, it uses premium pricing for most of its product lines to generate favorable

brand and product perceptions to target consumer segments. It also adopts psychological

pricing to add value to items from the customer's standpoint. Geographic pricing also

allows the Company to cover the shipping and custom expenses for areas outside the

Philippines (Shastri, n.d).

● Services

For the products to be used successfully, Jollibee Foods Corporation must

provide after-sales services and maintenance. Installation services, training, product

forward and backend software alignment, part supply, and post-sale maintenance are all

examples of the Company’s service activities. According to Ubalde (2019), one of their

competitive advantages is to provide high-quality, and quick customer service. The

Company also has a HappyPlus loyalty card that customers may use to make purchases

and receive discounts in the future.

● Operations

This refers to activities that aid in the transformation of raw materials into

finished goods. Like McDonald’s Speedee System, the Company also has a restaurant

kitchen design to increase productivity in the workplace. In JFC, it uses a giant grill with

a designated person who can cook patties instead of having a range of equipment and

stations for making a variety of food. Likewise, the Company has a dressing station

where condiments are put to each burger. There is also a fryer for the fries station, soda

machine for beverages and a counter where customers may place their orders (Cunanan et

al, 2019). In addition, Jollibee Foods Corporation has a P1.5 billion investment in Zenith

Foods Corporation which is located in Laguna and specializes in food processing and
 logistics. It stores more of its inventory and it is where most of their signature products

are produced such as Chickenjoy, burger patties, spaghetti sauce, pies and hotdogs

(“Behind-the-scenes of every langhap sarap serving”, 2008).

Supporting Activities

● Firm infrastructure

This supports various activities such as finance and accounting, legal services,

planning, general and quality management. It also supports the whole value chain,

however the scope varies due to diverse companies within the food industry. On the other

hand, the finance planning is managed at the corporate level while the accounting, legal

and quality management are controlled at the business level (Groysberg & Connolly,

2018). Moreover, Jollibee Foods Corporation decentralizes its organization into four

autonomous business units that correspond to key geographical markets in the

Philippines. This allows the Company to focus on marketing, finance, restaurant systems

and engineering as well as act as a support to Regional Business Units (Ireland et al,

2011).

● Human Resource Management

This includes activities such as recruiting, skill assessment, hiring, people

planning, selection, training and development and compensation. This is critical to the

organization's performance and has an impact on the competitive advantage of Jollibee

Foods Corporation (Groysberg & Connolly, 2018). The Company provides a fair

compensation and benefits package to recruit the best talent and retain valuable

employees. It also provides comprehensive training programs according to underlying

standards. Managers were also given regular training in the most up-to-date operations

system and management techniques. Members are given equal opportunity to advance to
 management positions. Moreover, the Company is recognized as Top 20 companies

engaged in labor-only contracting released by DOLE. It recruits, supplies or places

workers to perform a job for principal. The Company said that they contracted employees

because it is more flexible (Cordero, 2018).

● Technology Development

This has been a source of competitive advantage of Jollibee Foods Corporation.

Some of technology development activities include field testing, process engineering,

technology selection, feature design, and component design. According to Abadilla

(2016), the Company invested P10.4 billion for expanding its stores and improvement of

network support. Last 2015, it also engaged in strengthening its core business by

investing on information technology update, and increasing network organization. Other

activities related to managing and processing information are adapting the cashless

payment among all stores and self-ordering kiosks during the pandemic.

● Procurement

The activities are conducted to purchase inputs that are used by the company’s

value chain such as the raw materials, supplies, machinery, equipment, and buildings. It

also uses technology for procedures, vendor management, information systems, supply

chain, qualification requirements and performance evaluation (Groysberg & Connolly,

2018). Concerning this, Jollibee Foods Corporation has partnered with suppliers to

procure its materials and make agreements when purchasing supplies or equipment. It

partnered with local and international suppliers to reduce cost and improve supply chain

management.
STRATEGIC (OR LONG-TERM) OBJECTIVES

Jollibee's goal is to become Asia's largest native quick fast food brand by 2020. Jollibee is

steadfast in its determination to continue expanding globally in order to fulfill these long-term objectives.

Given that Jollibee's major market abroad consists primarily of Filipinos, they have a huge advantage due

to OFWs (Overseas Filipino Workers). Jollibee has remained devoted to its goal of offering tasty food.

Jollibee is now Southeast Asia's largest domestic fast food chain and Asia's second largest in terms of

revenue. JFC's other long-term aim is to book equal sales contributions from its foreign and local stores

over the next five years, while also pushing for a large worldwide expansion strategy. One of the

company's long-term aims, according to the entity's chairman, is to generate "50-50" revenues by 2022.

STRATEGY FORMULATION

A. Generation of Strategic Options

Table 3. TOWS Matrix

STRENGTH­ WEAKNESSES

● Excellent Customer ● Some branches have

Service ­ limited space ­

● Frugality on maximizing ● Inconsistent service and

operational costs ­ supply among branches ­

● Basic Continuity ● No mobile application

Planning in other countries

● Creative Marketing ● Consumers becoming

Program aware of healthy diet

 ● Efficient manufacturing

and logistics facilities. ­

● Superior menu line-up

OPPORTUNITIES STRENGTH WEAKNESSES

● Expansion in the local OPPORTUNITIES OPPORTUNITIES

market strategies strategies

● Acquisition of other ● Optimize the customer ● Purchase adjacent lots

establishments ­ service training program for the expansion of

● Increasing investment for all branches and purchased enterprises or

on e-commerce newly acquired relocate.

● Technological businesses. ● Align new products

enhancement in terms of ● In terms of operating with the country's

business processes ­ expenditures, use culture.

● Introducing new frugality in newly ● Develop a mobile

products ­and Create a acquired enterprises. ordering application for

menu that caters healthy ● To reduce the paper trail Jollibee

options and other expenditures, ● Introduce new healthy

● Media partnership and encode operation-related products

with other industries data in a software

● Product Innovation program.

● Find low-cost raw

materials for new

products ­

● Emphasize new product

 distinction through

innovative marketing

● Improve assembly line

technologically ­

● Prepare a strong menu

lineup that caters healthy

options

● Product and media

collaborations should be

properly coordinated.

● Invest in ecommerce to

expand the scope of

business

THREATS STRENGTH-THREATS WEAKNESSES-

● Rise in food prices strategies THREATS

● Competition between ● Market trends and fads strategies

other fast food are forecasted on a ● Expansion/Relocation

restaurants ­ regular basis.­ ● Find reliable and

● Rising number of ● Employees should be credible suppliers.

health-conscious trained in customer ● Align new items with

consumers service and time the country's culture and

● New entrants in the management.­ current trends.

industry ­ ● Use frugality to reduce ● Develop a mobile

 ● Global health pandemic the price range in ordering application for

● Changing Taste and comparison to rivals. Jollibee

Preferences of ● Offer items that other ● Improve health

customers fast food establishments protocols within the

can't match. store

Internal Factor Evaluation (IFE)

Table 4. Internal Factor Evaluation (IFE) Matrix

Internal Strengths Weight Rating Weighted Average

Excellent customer service 0.15 2 0.30

Creative marketing program 0.09 4 0.36

Superior menu line up 0.18 4 0.72

Frugality on maximizing operational costs 0.03 2 0.06

Efficient manufacturing and logistics facilities 0.08 4 0.32

Basic continuity planning 0.06 4 0.24

Internal Weaknesses Weight Rating Weighted Average

Consumers becoming aware of healthy diet 0.14 2 0.28

Inconsistent service and supply among branches 0.15 2 0.30

No mobile application 0.09 1 0.09

 Some branches have limited space 0.03 2 0.06

TOTAL 1.00 2.73

Jollibee's Internal Factor Evaluation was designed to evaluate the firm's strengths and weaknesses

and to develop plans to help the company improve its business, particularly its internal organization.

Jollibee's IFE Matrix was constructed by outlining the company's primary strengths and weaknesses,

which are the important internal variables. Weight is allocated to each component depending on its

relevance in the industry, and the total is one. The rating was given on a scale of 1 to 4 and was based on

Jollibee's performance or effectiveness in each category. By multiplying each rating by its associated

weight, the weighted average was calculated. Lastly, the final weighted average score was calculated by

combining all of the weighted scores together.

The factors such as Excellent Customer Service, Frugality in maximizing operational costs,

Consumers becoming aware of healthy diet, inconsistent service and supply among branches, and

branches with limited space received a rating of 2. Jollibee's efforts for it were given a rating of 2 because

they are either average or do not have a huge bearing on the firm. A rating of 4 was given to factors such

as Creative Marketing Program, Superior Menu Lineup, Efficient Manufacturing and Logistics Facilities,

and Basic Continuity Planning. A rating of 4 was given since these are the areas in which Jollibee excels

the greatest. The factor with no mobile application received a rating of 1. A rating of 1 was assigned

since, unlike its rivals, Jollibee still does not have available mobile applications in other countries.

According to the results, Jollibee had a total average weighted score of 2.73, and scores much higher than

2.5 indicate a good internal standing. As a result, Jollibee is an internally strong company.
Internal-External Matrix

Figure 2. Internal-External Matrix

Jollibee's Internal External Evaluation Matrix was created in order to analyze the company's

working conditions and strategic position. The combined EFE and IFE weighted score was used to

develop Jollibee's IE Matrix. In the Internal Factor Evaluation (IFE), the categories for total weighted

score are strong which ranges from 3.0 to 4.0, average which range from 2.0 to 2.99 and weak which

range from 1.0 to 1.99. In External Factor Evaluation, the categories are high which range from 3.0 to 4.0,

medium which range from 2.0 to 2.99 and low which range from 1.0 to 1.99. Jollibee's working condition

and strategic position is in quadrant V, where it is average in terms of internal variables and medium in

terms of external elements. These are the outcomes because the IFE score falls into the average score

range, and the EFE score falls into the medium score range.
SPACE MATRIX

Figure 3. Space Matrix

Jollibee is in a position to utilize its strengths to take advantage of external chances, overcome

weaknesses, and avoid external threats since the vector is placed in the Aggressive quadrant. Jollibee's

position in the SPACE Matrix indicates that the business operates in a desirable and stable industry with

considerable competitive advantages and financial strength. Jollibee is collaborating with other food

brands and they should keep doing the same to improve customer satisfaction and to close off

opportunities for their competitors who use product differentiation to compete with Jollibee. Another

option is to increase Jollibee's competitive edge. This may be accomplished by developing successful

marketing efforts or lowering product prices. Another option is to increase Jollibee's competitive edge.

This can be accomplished by developing effective marketing campaigns or lowering product pricing that

will be hard to match by competitors. Finally, Jollibee may continue to buy subsidiaries in order to expand

its market share; more consumers equals more revenue.

B. Recommended Business Strategies

Quantitative Strategic Planning Matrix

Jollibee's Quantitative Strategic Planning Matrix was created to determine which of the developed

and chosen strategies is best suited to the company's internal and external critical elements. QSPM can

assist Jollibee in determining which tactic should be emphasized. The major criteria that were used to

build the QSPM were strengths, weaknesses, opportunities, and threats. The weight was assigned to each

important component based on its proportional relevance to the fast-food sector. Each method has its own

attractiveness score (AS), which is determined by how appealing it is to each key element. The total

attractiveness score (TAS) was calculated by multiplying the weight and attractiveness score together. To

obtain the total TAS score, all of the TAS should be combined together.

Table 5. Quantitative Strategic Planning Matrix

 The table indicates that the attractiveness scoring was done using 4 as the highest and 1 as the

lowest, and that it obtained the overall attractiveness scores corresponding to each of its major aspects by

multiplying such rankings to the product weight. The results obtained by combining all of the total

attractiveness scores from each alternative are shown in the bottom portion of the table. According to the

data, the strategic alternative "mobile application" has the highest score, making it the most attractive.

Strategies

Country-Specific Menu Items – In addition to the existing menu, Jollibee will provide new goods that

will cater to the mass market in terms of cultural differences. In an instance, countries with a large number

of Islamic consumers, can sell Halal-based items.

Mobile Application — Company may create a mobile application aside from calling 8-7000 Jollibee

Delivery service in terms of ordering to make it more convenient for the customers. This application may

also be used by the company to promote and advertise their products.

Branch Renovation/Expansion - Some branches of Jollibee may be renovated, expanded or relocated if

needed in terms of volume of customers.

ACTION PLANS AND DEPARTMENTAL PROGRAMS

Country-Specific Menu Items

Jollibee is a household name for fast-food restaurants in the Philippines and its products and

services are tailored to the taste and preferences of the Filipino people. However, as it expands globally,

there is a need to create and offer products to meet consumer demand in the local market where it operates

or intends to expand to. Doing so would ensure that locals can have food that suits their taste and

preferences. Aside from developing new products for the local market, Jollibee could also modify their

existing product offerings to fit the local tastes. Hence, diversification of products through adapting and
adjusting to the taste of the local market reduces risks and increases revenue stability as it expands its

market segments.

Step-by-step action plan to progress the implementation of the Country-Specific Menu Items

1. Conduct market research

The first step in implementing the strategy is through conducting a market research that

would allow the business to understand its market and its target customers. After understanding

the local market and its people, detailed and objective analysis could be formed that will serve as

a guide for the completion of the strategy. In the market research, the business should identify

what could be the possible local products they could launch and more importantly, to determine if

there is a potential demand for the new products that will be offered. It will also cover assessing

different local factors which may include cultural, economic, and legal issues and practices that

the business may encounter.

2. Menu planning

After gathering information about the market and the target customers, the next step

would be to plan the menu which will include the restaurant’s original line of food items and the

country-specific food item/s that will be introduced to the local market. Effective menu planning

ensures that the customer’s demands are met which will then make the customers satisfied. For

this, there are several factors that Jollibee needs to consider such as the availability of raw

materials and the costs to produce the item. Raw materials are sometimes available only for

specific periods or seasons which may affect the preparation of the food. Meanwhile, costs to

produce should also be considered as it will affect the price of the product. As a restaurant that

operates within the fast-food industry, price of its products plays a huge role on the customer’s

purchasing decisions. In addition, when planning the menu, Jollibee should list out a number of
 suppliers that will supply the materials needed for the concept. In this stage, the company could

also review the supplier’s company history, storage facilities, delivery logistics, and ethical

practices to determine if such are aligned to the principles of the company.

3. Product development

Upon deciding what new products to offer and considering the factors that can affect the

implementation and success of the strategy, the product development will follow. In this stage,

this is where the concepts regarding the new product will materialize. In the product development

process, the demands and expectations of the consumers are given much consideration.

4. Food safety and quality testing

After developing the product, food safety and quality testing are done to ensure that the

product is of high-quality and safe to consume. Shelf-life testing will be conducted to ensure that

the product will last at an acceptable time for it to be produced efficiently, shipped, purchased,

and consumed by final consumers at its safest quality.

5. Pricing the product

When a food safety and quality test has already been performed, the product is almost

ready to be launched in public and be purchased by its target market. But before this, there is a

need to establish the cost of each new product in the menu and suggest its retail prices. In pricing

the new items, the concept, noted ingredients, and the supplier’s cost should be considered to

price the product accordingly. Hence, the price should cover all the costs incurred and must be

enough for the company to earn a profit. Moreover, the business could look at its competitors for

their prices to be comparable.

6. Advertising the product

 From planning to eventually developing the new products to offer, the final step would be

to communicate this to its target market to be aware of the product’s existence or availability in

the restaurant’s local branch. Brand awareness could be done through advertisements in different

mediums including social media platforms and other forms of mass media.

Budget necessary and timeline

Strategy Estimated Cost Estimated completion time

Country-specific menu items P 2,000,000 1 year

Units responsible

● Marketing Department – The marketing department is responsible for conducting the market

research that will gather information regarding the local market where Jollibee has a local branch

and its people which will be the basis on what country-specific menu item/s will be developed

and launched by the restaurant. The department is also responsible for advertising the product in

different platforms that will help the business reach its target market. Moreover, the department

also has input on the pricing decisions as they determine what the price should be to maximize the

sales based on how the target market perceives the products being offered.

● Production Department – The product department is responsible for creating the new line of

items in the menu. The department also ensures that availability and costs of the raw materials to

be used in producing the items as well as the quality of the final items to be consumed by its

customers.

● Accounting Department - Together with the Marketing Department, the Accounting Department

also decides on the final price of the products to be offered. Unlike the marketing department,

they are to determine what the price should be to break even or meet the profit goals of the
 business. They determine the exact cost to produce each unit of the product, calculate all the costs

incurred including the costs to sell and distribute the product.

Resource Requirements

● Financial Resources - The business will need financial resources to fund the activities associated

with developing a specific local menu item that will be added in the restaurant’s local branch that

encompass from conducting market research to advertising the product to the public.

● Human Resources - From gaining thorough understanding of the local market and its target

customers, product development, to creating advertisements in different platforms, human

resources will be needed for the completion of the strategy.

Mobile Application

The COVID-19 pandemic has led the government to impose a stricter stay-at-home policy and

enforce temporary closure of businesses to prevent the spread of virus. This became a major threat among

industries that heavily relied on in-person customers and physical services including the food and service

industry. However, the software industry appears to be emerging from the crisis as it strengthened and

accelerated the expansion of digital and software transactions. Since the work-culture has shifted online,

web-based software solutions became in-demand including contactless payment solutions, e-commerce

platforms, web-apps, and automation software. With this, introducing a mobile application can provide

Jollibee’s consumers more convenient and faster ways to order as this app can bring their Jollibee

favorites in the safety of their homes.

The mobile application will have a user-friendly design and layout to offer convenience of

ordering their favorite items with only a few swipes on their phones. Jollibee customers can sign up for an

account after downloading the mobile application. They can also put their address to make deliveries

faster and more convenient, and to receive notifications to get updated of exciting deals. A store locator
can also be installed in the app to allow users to quickly locate the nearest Jollibee outlet. Consumers may

also take advantage of discounts using promo coupons. The app also includes the restaurant’s entire menu,

allowing customers to order their favorite items. Jollibee mobile application users can also select from a

variety of payment choices such as Cash on Delivery (COD) or make online payments through PesoPay,

GCash, BDO, etc. Senior citizens and people with disabilities can also take advantage of discounts when

using the app.

Step-by-step action plan to progress the implementation of the Jollibee Mobile Application

1. Conduct Market Research and Analysis

The first step in the mobile application development process is to conduct a market

research and analysis. It is significant to obtain an understanding of the struggles and needs of

the target audience as well as the key competitors, and the local market. The Marketing

Department of Jollibee Foods Corporation is specifically assigned for determining marketing

information and other related facts. This Department determines the market where the Company

wants to launch the mobile application and gather intelligence regarding the market size and

mobile users. The next step is to gather customer’s value by determining their spending level.

Upon learning about the demographics and necessary information about the target market, the

Company can decide on the application features and figure out the best development approach to

create the mobile application.

2. Set a Business Model and Value Proportion

It is also important to think of the expected benefits and business plan before developing

the mobile application. The Company should decide on the application features, unique selling

propositions and monetization strategy to make the implementation successful. Jollibee may

create advertisements, subscription plans, merchandise e-commerce products or charge a service

fee to generate revenue.

3. Look for a Reliable and Experienced Software Development Company

One of the critical tasks is to decide on a reliable and experienced software development

company which can either be individual contractors, freelancers or an IT company that offers

custom app development services. In the initial phase, Jollibee may check the price and quality of

the service according to its prototype. Overall, the Company should find a software development

company that is the right fit and meets the requirements and budget.

4. Formulate a plan for Mobile Application Development Process

In this phase, Jollibee Foods Corporation should formulate an idea as to how the app

would be created and what features will be included. The Company should focus on ease of

navigation, user-friendly design, customer centric secure application development. It is also

important to decide on the UI/ UX design then, begin on developing a front and back-end of the

application. To ensure that there will be no bugs or errors in the application, testing and quality

assurance services must be performed. As part of the development process, an attractive design

for the mobile application. The application design serves as the foundation for the successful

implementation or development of the mobile application. The following are the major steps in

creating a design: (1) research, (2) user experience design, (3) visual design, (4) branding, and (5)

illustrations and animations.

5. Execute the plan and conduct testing and launching of the Mobile Application

When the designing and development of the application is completed, The IT

department of Jollibee Foods Corporation should perform application testing to check for

possible flaws or errors. The Quality Assurance must also test all the application features and

ensure its workability. At the time when the application is ready for launching, all features must
be completely implemented so that the application will work without any hitch and free from all

the bugs.

6. Promote the Jollibee mobile application through marketing campaigns

To progress the strategic implementation of the mobile application, the Marketing

Department should promote the final product using the right channels. The Company can

develop different marketing campaigns using influencers, social media or ask food businesses to

market the products. The main goal is to reach the target audience and increase the number of

mobile users.

7. Provide continuous application support and enhancement

The IT Department of Jollibee Foods Corporation is specifically assigned in the future

maintenance of the mobile application. Since developing an application is an ongoing procedure,

it is necessary to improve some application features, remove existing ones or add new

functionality. Providing continuous support and enhancement ensures that it is optimized to the

latest versions of operating systems and shows high performance.

Major Features for Jollibee Mobile Application

● Menu Screen

This shows what dishes will look like, the list of ingredients and customization

options that are available. In the mobile application, it is important to develop and design

an attractive menu. This part of UI design should include good images, and an order

button to be ordered directly from the menu.

● Food delivery
 This is also one of the major features of the mobile application which works best

with the function of pre-ordering. It makes ordering more convenient and faster.

Customers can make pre-orders online and will not have to wait for lines to place and

receive the order. They can order items through the app, make online payment and have it

delivered to their doorstep. The main features for the food delivery include registration,

profile management, search engine, order placement, online payment, digital receipt,

ratings and reviews, and notifications.

● Locating nearest Jollibee outlet

This feature would be very useful for mobile users especially that Jollibee has

multiple branches or locations. It is important to consider adding a store locator to guide

the customers to the closest Jollibee outlet.

● Establishing Loyalty Programs

Loyal customers of Jollibee should also be treated with coupons, discounts and

promos as a way of appreciation for their continuous support of the products. They can

also use bonuses whenever they are at the establishment but it is important to take note

that it should be devised before creating the application as it will be included in the logic

of the future solution.

● Interaction using social media

The Jollibee Mobile Application must also integrate social media to allow easy

access of the registration within the app. This will be a good marketing strategy as

customers can share pictures of dishes and give reviews and ratings for improvement.

● Notifications
 This feature will allow customers to get updated of the upcoming events, special

offers, discounts and exciting deals. This will also inform them of the status of their

orders.

Budget Necessary and Timeline

Developing a Jollibee Mobile Application is a complex procedure and it also requires a

budget which usually starts at Php 3,000,000 for simple features and single platform. The cost of

the application depends on various factors such as the UX/UI design, custom app development,

quality assurance, project management, and business analysis.

Basic Jollibee Application

(simple features, single platform)

UX/UI Design Php 255,290

Custom App Development 2,042,320

Quality Assurance 255,290

Project Management 382,935

Business Analysis 127,645

Total Cost Php 3,063,480

Timeline 3 to 5 months

Person/ Units Responsible

 ● Marketing Department- this department is usually responsible for conducting market

research and analysis to understand the needs, and struggles of the target audience and

how the mobile application can address it. This department is also assigned in creating

marketing campaigns to promote the mobile application to the public.

● Information Technology Department- This department is assigned in testing the

application to ensure that there are no errors and bugs in the development of the app.

Aside from the Quality Assurance Department, the IT Department is also responsible for

application maintenance for continuous support and enhancement.

● Project Manager and Developers- These people are responsible for the discovery,

planning and development of the application . They are involved in activities such as

product backlog development, UX/UI design, technical tasks, quality assurance and

testing and overall project management.

Resource requirements

In developing a Mobile Application, the following resources are needed:

● Financial Resources- This is considered as the most important element as funds are

necessary to create the mobile application. The financial resources can be obtained from

different sources such as loans and bank credits, as well as private investors.

● Human Resources- Employees in the Marketing and IT department are the key to the

successful strategic implementation of creating a mobile application. The talent, skills or

strengths of the employees must be recognized to ensure that the strategic mission and

goal will be carried out efficiently and with competence.

● Technological Resources- Jollibee Foods Corporation should select the right

technologies that are scalable and maintainable. These include web application

development, mobile app development, backend development, databases and third-party

services. In addition, marketing resources and tools such as think with google research
 tools, census bureau, statista and qualtrics market research panel will be used to conduct

market research and analysis.

Summary of Action Plan

Activities Person/Units Resource Time Frame

Responsible Requirements

Conduct Market ● Marketing ● Funds 1 to 2 weeks

Research and Department

Analysis ● Think with

Google

Research

Tools

● Census

Bureau

● Statista

● Qualtrics

Market

Research

Panel

Set a Business Model ● Marketing 1 week

and Value Proportion Department

Look for a Reliable 1 week

and Experienced ● IT

Software Department

Development

Company ● Project

Manager

Formulate a plan for ● Application 1 to 2 months

Mobile Application Developers

Development Process

● Project

Manager

● IT

Department

Execute the plan and ● Application ● Funds 3 to 5 months

conduct testing and Developers

launching of the ● IT Skills and

Mobile Application ● Project expertise

Manager

● Wed, mobile

● IT app and back

Department end

development
 ● Databases

● Third-party

services

Promote the Jollibee ● Marketing ● Funds 1 to 2 weeks

mobile application Department

through marketing ● Marketing

campaigns skills and

expertise

● Website

Scorecard

● Social Media

Marketing

Checklist

Provide continuous ● Quality ● Funds Every 3 months

application support Assurance

and enhancement Department ● IT personnel

skills and

● Project expertise

Manager

● Hosting

● IT
 Department ● Analytics

● Bugs and

Updates

● Third-party

services

● Customer

support

Branch Renovation/Expansion

Jollibee Foods plans to refurbish 96 stores this year in order to take advantage of good locations that have

become available as a result of the coronavirus outbreak. The firm may use a modern, streamlined design

to give a more pleasant and cozy atmosphere for eating consumers. These upgrades might be part of

Jollibee's effort to elevate the standard in fast-food eating without losing the familiar, homey ambiance

that Filipinos of all generations have come to enjoy. The fast food company may highlight the trendiest

and most Instagrammable store design in the country, as well as exciting features that improve consumer

convenience.The fast food chain may align their stores with Jollibee's brand image, which is lively,

family-oriented, and Filipino. They may build a design that is in keeping with the brand and location in

current times, with a Modern Tropical motif.

Step-by-step action plan to progress the implementation of the Jollibee Branch Renovation

1) Conduct Market Research - The first step to the renovation project of each Jollibee branch is to

research. Researching the most successful restaurants in an area is one approach to get an idea of what the

company should change. Pay close attention to the design and layout. The company must consider what

they can do to improve their restaurant even more than those other successful enterprises.

2) Planning and Timing - Jollibee must compile all of their own research as well as the input they have

collected and utilize it to decide the scope of their renovation. The company may start planning the timing

of branch renovations once they know the scope of their intended refurbishment. This is critical since a

restaurant's ability to function will be affected by a renovation. Most renovations experience delays and

issues, so it's vital to budget for some extra time.

3) Communication and Outreach- Jollibee must keep everyone informed about their renovation plans,

including when and how long they plan to complete the project. Jollibee must communicate to their

customers about the proposed changes using a variety of means, including social media, email

newsletters, in-restaurant fliers or announcements, and SMS through POS systems.

Major Features of Branch Renovation

Younger and fresher interior design - Customers will be delighted with Instagrammable store décor at

Jollibee's most modern location. The store's look and atmosphere may be more modern, making it more

appealing to millennial customers.

Do-it-yourself order kiosks- Self-order kiosks within the store provide customers total control over the

food they choose to buy, whether they dine in or take away. The user-friendly design of these kiosks is a
great enhancement to Jollibee's automated food ordering system. It lets consumers order, pay, and claim

their favorite Jollibee items in three simple steps.

More spacious store- Each renovated and expanded store can have enough space to accommodate more

clients.

Cashless payment- Inside the renovated store, self-order kiosks accept cashless payments through Happy

Plus card, Paymaya, and even credit card.

Wireless charging stations- USB ports and wireless charging pads are available in a select table inside

the store.

Food Delivery via E-Bikes- E-bikes can be used for delivery at the newly renovated Jollibee shop. It's

not only fit for the future, but it's also a long-term solution for serving clients in the community.

Strategies Estimated Cost Estimated Time (per store)

Branch Renovation Between P7 million and P9 1-2 months

million each store

Person/ Units Responsible

Human Resource Department - the HR manager's duties and responsibilities include collaborating with

construction managers, project managers, contractors, and others to identify and document each project's

roles and responsibilities, as well as detailing the end-to-end processes required on branch renovation to

determine labor needs.

Financial department- It is responsible for managing the company's cash flow and ensuring that

adequate money is available to meet day-to-day payments.

Purchasing department- Its primary function is to purchase supplies and materials for branch

renovations as well as the company's everyday needs. They must compare products from many sources in

order to choose those with the best cost and quality.

Engineering department- It is in charge of the renovation project's planning. This involves performing

surveys, doing research, interpreting the findings, planning the construction, and providing technical

assistance throughout the project.

Resource requirements

Human resources-It is one of the most valuable assets in a store renovation, since it is responsible for

system management and plays a key role in planning and implementing the renovations.

Financial Resources- The company must obtain the capital resources to finance the costs of each store

renovation. It is an essential aspect of the process since a store renovation cannot continue without

enough funds.

STRATEGY EVALUATION/MONITORING AND CONTROL

Strategy Evaluation

Jollibee Foods Corporation’s Balanced Scorecard

Key Weight Objective Performanc Target Person/Unit Time Frame

Performanc e Measure Output s

e Area Responsible
Internal 0.3 Cut off Decrease Jollibee Marketing Before end

Business ordering or average Mobile Department of 2022

Process waiting time order and Application

waiting time IT

Speed by 5% Department

delivery

time Establish Developers

minimum and Project

delivery Managers

time of at

least 30

minutes

Customer 0.4 To attract Increase Branch Human 1 year

Perspective new customer Renovation/ Resource

customers satisfaction Expansion Department

and to keep by more

loyal than 12% Financial

customers Department

interested Store can

accommoda Purchasing

Enhance te additional Department

customer customers

experience of more Engineering

and improve than half of Department

 their the store

satisfaction capacity.

Customer 0.3 To provide Increase the Country- Marketing 1 year

perspective additional customer Specific Department

menu items retention by Menu Items

that cater to 5% that will Production

the taste and increase Department

preference profit to

of the local 25% Accounting

market Department

To give an Improve

overall customer

customer satisfaction

experience

while

maintaining

the brand

identity

● Jollibee Mobile Application

Jollibee Foods Corporation is known for thriving in speed and efficiency of operations. It truly

understands the increasing demand for a fast-paced urban living and knows that customers are used to

getting things quickly but at the same time, not compromising the quality of the product. With this, the

Company should focus on strengthening its internal business processes as its key performance area. Based
on Jollibee Food Corporation’s Balanced Scorecard, the Company can increase its operational efficiency

by cutting off ordering and waiting time and speeding the delivery time. This can be measured through

decreasing average order and waiting time by 5% and to establish a minimum delivery time of at least 30

minutes. With this, the target output is a Jollibee Mobile Application that will provide Filipinos with a

more convenient and quicker way to order their favorite Jollibee food items and have them delivered in

the safety of their homes. Moreover, the units responsible are the Marketing Department, IT Department,

Developers and Project Managers. The Jollibee Mobile Application is expected to be completed before

the end of 2022.

● Country-Specific Menu Items

Jollibee is one of the leading fast food restaurants in the Philippines and is known for its signature

menu items including their famous chicken joy and Filipino-style spaghetti. It really is a restaurant that

has already established its identity through offering products that appeal to the taste of the Filipinos. As

the business continues to operate within the Philippines and expands to other markets outside the country,

they have to respond to changing tastes and preferences of its consumers that includes adapting to the

local market where Jollibee operates for their growth and stability. And to do this, the company should

formulate strategies that will satisfy and retain their customers. With this, the target output is developing a

country-specific menu item/s that cater to the local taste and preferences of its target market as well as

give an overall customer experience while maintaining the brand identity. The strategy is expected to

increase the customer retention by 5% that will increase profit to 25% and improve the overall customer

satisfaction. Units responsible for the completion of the strategy are the marketing, production, and

accounting departments and will be completed within a year.

● Branch Renovation/ Expansion

Jollibee is known as a homegrown restaurant that is continuously finding ways to pioneer

groundbreaking innovations to enhance customer experience and bring greater convenience to their

clients. They have their commitment to bring joy to their customers every step of the way with their

great-tasting food, better looking stores, exciting innovations and personalized service. The strategy of
renovation and expansion is a great way to transport their customers to a new and elevated world of joy to

make their dining experience and bonding moments extra joyful and special. The renovation and branch

expansion will raise the bar in fast food dining, without veering away from that familiar, homey feel that

Filipinos across generations have come to love about Jollibee. This strategy will enhance customers'

perspective as it allows Jollibee to attract new customers, to keep loyal customers interested, enhance

customer experience and to improve their satisfaction. Lastly, this strategy is expected to increase

customer satisfaction by more than 12% and the store can accommodate additional customers of more

than half of the store capacity.

Strategy Monitoring and Control

Country-Specific Menu Items

To monitor the success of the implementation of developing country-specific menu items, the following

key performance indicators (KPIs) will be used:

● Menu item profit and popularity

Price of the menu items impacts profitability. In this performance indicator, the item that has the

highest return and how other items in the menu are selling are determined. It is indeed great to

have a high-profit menu but it is irrelevant when such do not significantly contribute to the

percentage of the sales made. Some items that have higher sales velocity but produce lower profit

margin might be the ones contributing the most to the company’s revenue. Measuring the profits

earned by the added item on the menu can help the management plan for its further improvement

and promotion decisions.

● Production time per menu item

Another indicator that the company should consider is the production time it takes to produce the

menu items. Having the knowledge on how long to produce each item can help the company to
 value the product based on turnaround time and expectations. Tracking the production time will

also allow the company to consider ways on how to shorten the production time and offer faster

service to satisfy the customers.

● Food wasted per item purchased

Food waste has been a concern for businesses in the restaurant industry. If food waste is

monitored, it will help the business to improve its demand forecasting, have a better procurement

process related to acquiring raw materials, and better management and storage of food stock. In

addition, monitoring of food waste per item purchased assists in adapting better methods to

prepare the food and reconsidering the current portion sizes and serving methods.

Jollibee Mobile Application

To monitor the success of the implementation of the Jollibee Mobile Application, the following key

performance indicators (KPIs) will be considered:

● Compute for the Customer Acquisition Cost

In developing the Jollibee mobile application, it is important to consider the amount spent

on each audience member the Company acquires. The Cost per Acquisition divides the cost of the

campaign to the number of acquisitions to understand the effect of various campaigns and

activations and assist the Company in wisely managing their marketing expenditures.

● Lower the Customer Order Cycle or Order Fulfillment Cycle Time

It refers to the average time it takes for a customer to receive an order from the time they

place it using the mobile application. One of the key performance measures as shown in the

Balanced Scorecard is to decrease the ordering and waiting time by 5%. This can be achieved by

considering the customer order cycle time to determine the operational efficiency of Jollibee in

preparing meals and delivering orders to customers. In monitoring the success of the
 implementation of the application, the Company may consider lowering the average order cycle

time as this will indicate the sensitivity to the needs of the customers.

● Maintain High Retention Rate

Retention rate is one of the most important KPI for mobile application development as

mobile users cannot engage with the application without using it anymore. With this, Jollibee

Foods Corporation must ensure a high retention rate of mobile application users to keep more

audiences coming back. To compute the retention rate, the number of users in a set time period

should be divided into the number of users in the previous time period. In this way, the Company

can monitor who visits and uses the application.

● Monitor Active Users

Jollibee Foods Corporation should also monitor active users whether on a monthly or

daily basis to have an idea of how many people engage in using the application. The Company

should obtain if active users count is rising or falling to identify if customer acquisition and

retention efforts are bearing fruit. The active users count can be determined by knowing the

number of mobile application users in a month or in a day.

● Determine Customer Lifetime Value

Jollibee Foods Corporation can also monitor the success of the implementation of the

mobile application by determining the customer lifetime value. This established brand-customer

relationship by looking at how much value can be generated from the average user during their

time spent as a customer. To calculate the customer lifetime value, the total user spend in pesos

will be divided to the total number of buyers or users to date.

● Return on Investment

To determine the success of the strategy, it is also important to identify the amount spent

by a campaign as compared to how much was spent on it. The Return on investment is the ratio

between the net income and investment.

 Jollibee Mobile Application Performance Metrics

To ensure the successful implementation of the Jollibee Mobile Application, the

Company must also provide a support system by measuring the performance of the application

using different metrics. The Company must monitor and improve the performance to encourage

more customers to visit and use the application. The following are the key application metrics that

Jollibee Foods Corporation must track:

● Obtain user satisfaction or Apdex Scores- This is considered as the standard for

tracking the performance of the mobile application. It functions by specifying for how

long the transaction will take and those transactions are classified into as satisfied,

tolerating, too slow or failed requests.

● Determine average response time of the application

● Monitor Error Rates-This is one of the most critical performance metrics. The three

ways to track application errors are HTTP error which is the number of web requests that

ended in error, Logged Exceptions which is the application unhandled and logged errors,

and Thrown Exceptions which are all expectations that are thrown.

● Identify the number of application instances running- This ensures that the

application scales meet the demand and saves money during peak times.

● Determine Request Rate- The request rates are utilized when correlating other

application metrics to understand the dynamics of application scales.

● Ensure Application Availability- Jollibee Foods Corporation must monitor and measure

if the application is online and available which can be done through scheduled HTTP

Check.

Jollibee Branch Renovation

One of the strategies that might help the company develop and improve is branch renovation. By

raising sales and accommodating more customers, Jollibee's store expansion and renovation would help
increase profitability. They would have fewer complaints if they were satisfied with their additional space

provided by Jollibee. The firm will be able to attract more customers with more space. Internal

customers, such as Jollibee employees, would also be motivated as well as public customers, because of

the better environment. Motivated employees are more likely to provide high-quality work and increase

productivity. If a customer's performance is good, they will inform others about the business, which will

boost sales and profits.

To monitor the success of the branch renovation/expansion, the following will be measured:

Compute for Monthly Recurring Revenue

It's a great measurement to see if client spending has increased after the Jollibee outlet was renovated.

This measure depicts the total amount of money spent by their clients on their products and services in a

particular month. The worth of this may be compared over time to see if their consumers are having

success with their items.

Calculate Customer Satisfaction

The customer satisfaction score, or CSAT, is a time-tested statistic that may be used to assess satisfaction.

It's a customer satisfaction survey in which the consumer is asked a series of questions, the most basic of

which is "how would you rank your experience engaging with our sales/customer service/support

department?" Typically, the scale goes from very unsatisfactory, unsatisfactory, neutral, satisfactory, very

satisfactory.

Jollibee can also employ the Net Promoter Score, which was created to substitute the CSAT's lack of

predictive capacity when it comes to customer loyalty. The typical question being asked is "On a scale of

1 to 10, how likely are you to suggest our product/service to a friend?" . NPS is computed by subtracting

the proportion of detractors from the percentage of promoters.

Compute for Customer lifetime value (CLV)

It is one of the most fundamental customer metrics that a business may use to measure. It depicts the total

revenue a single client may anticipate to earn over the life of their Jollibee engagement.

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