case study of jollibee

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How two Filipino brothers staved off competition from McDonald's to build global fast food chain Jollibee

In business, there's nothing like a little healthy competition to keep you motivated.

Only, for brothers Tony Tan Caktiong and Ernesto Tanmantiong, that healthy competition came early on — in the sizable form of fast food icon McDonald's.

It was then 1981 and the brothers were just setting out on the ambitious dream of creating a fast food empire in their native Philippines when McDonald's arrived in town and threatened to consume the market with its vast appetite for international expansion.

Jollibee had already grown substantially from what started in 1975 as an ice cream parlor in Quezon City, just outside of the capital Manila . But, with just a couple dozen fast food outlets scattered across the fractured archipelago, it was a small fry next to McDonald's thousands of branches in the U.S. and international markets.

Indeed, friends told the pair as much, and advised them to retreat from the challenge, Tanmantiong revealed in a recent episode of CNBC's "Managing Asia."

"When we learned that McDonald's was coming into the country, friends were telling us to shy away from the competition — do (like) other businesses and to not try confronting the global giant," Tanmantiong, Jollibee's president and CEO, told CNBC's Christine Tan.

But Tan Caktiong refused to hear it, Tanmantiong explained. Instead, the then-28-year-old founder called the business together to form a plan of attack.

We did a SWOT analysis on our strengths, our weaknesses and what the gaps were. Ernesto Tanmantiong CEO and president, Jollibee

"What we did was to have a strategic planning internally," said Tanmantiong.

"We did a SWOT analysis on our strengths, our weaknesses and what the gaps were," he continued, referring to a common analysis technique which aims to assess a business' strengths, weaknesses, opportunities and threats.

While McDonald's benefited from economies of scale and decades' more experience, Tanmantiong said they identified one major area in which the U.S. giant could not compete: Taste. Filipinos tend to favor sweeter and spicier flavors, he said, and it would be difficult for McDonald's to adapt to that without hurting the iconic American taste for which they had become famed.

"After that strategic session, we came out quite confident. So instead of chickening out, we jokingly said, we actually serve Chickenjoy," Tanmantiong said, referring to the company's core fried chicken dish.

It's that unique menu — which includes a sweet "Jolly Spaghetti," hot dogs and spicy burgers — that has fueled the now expanded Jollibee Foods' vast international growth in the years since. The company now has more than 3,500 stores in the Philippines and another 1,000 internationally, including under its additional brands like Smashburger, Burger King Philippines and Panda Express Philippines.

But as the business embarks on further expansion into the U.S. , one of its key strategic markets next to China , it will again come head to head with McDonald's — this time on the American rival's home turf. Earlier this year, Jollibee launched its first branch in Manhattan, New York , one of currently just 37 outlets in the U.S.

Tanmantiong said he, Tan Caktiong (now Jollibee chairman), their two other brothers and the rest of the team, initially planned to embark on that path by by targeting Filipino customers living overseas. But, in fact, he said, they've been surprised to find Jollibee's distinct taste has a home among non-native patrons, too. Indeed, they account for 50 percent of the company's overseas customer base.

That should help Tan Caktiong on his latest mission to turn Jollibee into one of the world's top five restaurant companies in terms of market capitalization. Having become the largest restaurant in Asia in 2014, Jollibee will have to face off against the likes of Starbucks, Yum! Brands and Domino's to secure that accolade.

Tanmantiong said, however, that his brother loves a challenge.

"Tony is a visionary and he loves to dream big," Tanmantiong said. "That's primarily the reason why (Jollibee Foods Corporation) is where it is today. Because of that bold vision, the entire organization has been challenged, but it has been fulfilling trying to achieve the vision."

Don't miss: How these women went from earning 20 cents a day to sending their children to college

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Jollibee: Bringing Filipino Fast Food to the World

Research by: Dominique Turpin, Jikyeong Kang , & Sandeep Puri

In early 2020, Tony Tan Caktiong (TTK), chairman of Jollibee Foods Corporation (JFC) is rethinking the company’s international strategy. Jollibee, a fast-food company based in the Philippines, is the market leader in its home market ahead of McDonald’s, Burger King and others. Over time, the company has expanded in Asia, the Middle East and the US with mixed results. In some markets, Jollibee has done well and in others the company has had to pull out or adjust its marketing strategy to stay on course. Over time, JFC has also acquired a portfolio of brands that have shown either great potential or disappointing results. From a pedagogical point of view, it is particularly interesting to discuss with the participants what makes the company a winner in some markets and why it records mixed performances in others. Tony wants to pay particular attention to the UK, Italy and Spain – three European markets Jollibee has recently entered.

Disciplines: Strategy

To cite this case: Turpin, D., Kang, J., & Puri, S. (2020). Jollibee: Bringing Filipino fast food to the world . IMD. IM1116-PDF-ENG.

To access this case: https://hbsp.harvard.edu/product/IM1116-PDF-ENG?Ntt=Jollibee%3A%20Bringing%20Filipino%20fast%20food%20to%20the%20world

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• November 2016
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Jollibee Foods Corporation

• Format: Print
• | Language: English
• | Pages: 24

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JOLLIBEE FOODS CORPORATION: INTERNATIONAL EXPANSION A CASE STUDY

Jollibee Foods Corporation (JFC) is the most successful fast food chain in the Philippines. It started out as an ice cream parlor owned by the Tan family, headed by Tony Tan Caktiong (TTC) as President. Brought about by oil crisis which doubled the price of ice cream, JFC diversified into hamburgers in the year 1977.

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A look at the strategy of Jollibee in its expansion to international markets, providing the Filipino diaspora (through labor exportation and resettlement) and globalization trends as context for this marketing strategy. For the partial fulfillment of English 10 - Writing as Thinking, under Prof. Paolo Manalo of the UP Department of English and Comparative Literature.

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Jollibee Foods Builds Conversational Skills, Instills a Coaching Culture Across the Organization

Jollibee Foods Corporation (JFC) is one of the largest global food companies with 16 brands operating in 33 countries. The organization was seeking to establish a One JFC Coaching Culture that would empower employees and teams and reinforce a cohesive organizational culture as it continued to expand internationally. 

The unique challenges brought on by the COVID-19 pandemic also led to an increased need for approaches and tools that could help JFC leaders navigate uncertainty with more self-awareness and resilience. In addition to needing to build a cohesive coaching culture, JFC needed a leadership development solution that would enable employees to communicate and engage with one another more effectively in a virtual environment and successfully adjust to the new world of work. 

Jollibee Foods Corporation chose to partner with the Center for Creative Leadership (CCL)® out of a desire to form a trusting relationship with a solution provider. JFC wanted a partner that would work closely to understand the company’s unique needs and develop a solution that would deliver results.

The journey began with a custom face-to-face coaching skills program, Coaching for Greater Effectiveness, provided to 200 top leaders at JFC. Starting with senior leaders allowed for buy-in and support of the initiative, and ultimately led to increased traction as the larger-scale conversational skills program , Better Conversations Every Day (BCE)™ , was rolled out to all managers through a train-the-trainer model.

The program was pivoted to a live online virtual format in 2020 to nimbly adapt to the COVID-19 situation and continue the momentum of the initiative.

The CCL team worked closely with JFC to co-create the journey and program design, making adjustments along the way to maximize the impact in both the face-to-face and virtual environments. The journey included learning modules, assessments, online digital tools, and post-program pulse checks.

Involvement of JFC leaders throughout the process was a critical success factor. In addition to participating as sponsors and key stakeholders, a number of JFC leaders were trained as virtual breakout room hosts and led the small group discussions. The approach further increased the level of coaching capability within the organization and created comfort as participants were able to speak their local language.

Incorporating learnings from initial sessions into future iterations was key to maximizing the ROI for the initiative. With accumulated exposure to virtual coaching and training, it became apparent that facilitators and coaches needed to adopt additional tools and techniques to maintain high levels of engagement with participants. More interactive activities, such as polling, annotation, and quizzes were utilized in the program design as a result.

So far, the One JFC Coaching Culture has resulted in notable positive outcomes for the company, including significant improvement in managers’ ability to:

• Engage in difficult conversations
• Provide feedback for development
• Support colleagues to be the best version of themselves

Data from hundreds of leaders within JFC confirms that virtual BCE sessions have been equally impactful compared to face-to-face BCE sessions. When asked to rate overall satisfaction with the program, participants of both face-to-face and virtual programs have given an average of 4.8 out of 5 . A recent pulse check that measures behaviors and outcomes from the perspective of direct reports shows virtual sessions receiving even higher scores on leadership effectiveness compared to face-to-face.

Overall, employees across store brands report that their direct managers are challenging and supporting them more effectively, which has led to positive transformation across the organization.

Participants Say

“With the use of BCE techniques, we were able to pinpoint the exact problem and as a result, as of today, our store has ‘zero’ complaints pertaining to delivery.”

“I immediately put [new skills] into practice after the course and saw improvement on the performance of the person I was coaching.”

“I felt psychologically safe in practicing and making mistakes while doing the activities.”

“It was so much more than what I was expecting. It was fun and engaging and I learned so much that I can actually apply in both my professional and personal life.”

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Jollibee foods corporation: a case study on responsible investment into farmer entrepreneurship in the philippines.

This case study outlines the journey of Jollibee Food Corporation's in their investment in Jollibee Group Foundation’s Farmer Entrepreneurship Program (FEP) that supports multiple groups of smallholder farmers who are producing high-value crops including white onions, salad tomatoes, bell peppers, Philippine lemon, and hot pepper.

Watch the  video  summary.

Smallholder farmers in the Philippines rely on multiple layers of intermediaries to consolidate and transport their products to market. Many farmers lack the knowledge and capacity to make their products marketready to reach end consumers. Farmers relying on intermediaries earn less for the price of their products compared to those that are able to supply and sell directly to the end market. With the goal to create social and economic impact on the Philippines’ agricultural sector, the Jollibee Group Foundation, with support from an annual investment by the Jollibee Group, initiated the Farmer Entrepreneurship Program (FEP) which has proven to address economic challenges by empowering smallholder farmers and transforming them to become entrepreneurs more than being producers.

Read the full case study to learn more about how Jollibee Foods Corporation impacts the lives of smallholder farmers through their investment, following principles of the ASEAN Guidelines on Promoting Responsible Investment in Food, Agriculture and Forestry.

This case study is part of a four-part series that showcases how recent agribusiness investments in food, agriculture and forestry sectors retroactively align with the ASEAN Guidelines on Promoting Responsible Investment in Food, Agriculture and Forestry (ASEAN Guidelines). Critically, these case studies showcase:

• Social, environmental and financial results of these investments
• Business case for responsibly investing in supply chain projects 
• How agribusinesses ensure long-term sustainability and viability of their investments 
• Key policy recommendations and learnings for the future

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Jollibee #ChickenSad – An IT Management Case Study

Editor’s note: Calen discusses the system migration issues Jollibee faced that allegedly led to inventory issues for the fast food giant. Here’s his take on what went wrong and what could’ve been done right.

Last week, a system migration caused problems in inventory deliveries to Jollibee stores, and even outright shutdown of 72 stores. According to this article, Jollibee suffered a sales loss of 6% for at least the first seven days of August. Calculating using Jollibee’s 2013 revenue, this loss amounts to at least a whopping Php 92 million! And considering that the project reportedly already costs Php 500 million, this whole debacle looks like it will cost Jollibee Php 600 million, not including the cost of all the man-days that Jollibee’s management and staff are probably devoting to fixing this problem.

I asked some of my friends in the industry (who shall not be named) on their take on what happened. Below is the information I got so far, and I’ll update this post as I get more information. I’ve also reached out to some friends in Jollibee hoping to get some inside information.

Please note that none of these are from official statements. If anyone wants to provide me with more accurate information on this, or better yet, official statements from the parties concerned, please send me a message and I will gladly incorporate it into the article. My objective here is to provide lessons to the IT and business community so that we can hopefully avoid the all-too-often costly mistakes of IT projects in the future.

1. Rip and Replace

Jollibee had originally been using an Oracle product for managing its supply chain – including deliveries of supplies to stores. Because of a dispute with Oracle, Jollibee decided to move its entire supply chain over to Oracle’s rival in this space, SAP.

Now, supply chain software isn’t just out-of-the-box products that you can just install and run. These need to be customized heavily in order to fit a company’s business processes, which usually takes months if not over a year of programming and configuration just to get started. The Oracle system had been running in Jollibee for years, and most certainly had a huge amount of complex programming and configuration from continuous modifications over time. These programs and configurations would have had a lot of fragile interrelationships between them, that made it a huge and risky task to migrate over to the SAP system

2. Staffing and Expertise

The project was outsourced to a large multinational IT service provider. Upon my interviews with members of the Philippine SAP community, they expressed doubt that the Philippine office of the service provider had a sizable local SAP team, if any. They have never heard of that vendor taking on Philippine projects using SAP before, which is why they concluded that the vendor did not have a significant local SAP practice.

My friends further reported that last year there was a large flurry of recruiting activity for SAP professionals from recruiters for that vendor. One of my friends considered this a “red flag”, meaning that the vendor seemed to be having trouble filling the positions required for the project, which is not surprising considering how high the demand for SAP skills are, and how small the supply. Eventually, the vendor allegedly brought in people from India and other countries to staff the project. Based on when the flurry of recruitment activity subsided, my friends estimate that the project was only properly staffed late last year.

Assembling a large team of outsiders quickly is troublesome. They have not worked under a common methodology and culture. They don’t have a common understanding of standards and processes. Any leaders in the group would be overwhelmed from the tasks of understanding the client’s business and designing solutions for the client’s requirements, working with other leaders to agree to common standards and processes, and then organizing and training teams to adhere to those common standards and processes, and then explaining client requirements and overseeing the quality of work.

3. Schedule and Size

This is a half-a-billion-peso project, yet it seems that the project is only operating on schedule of just a little over a year, based on when the recruitment activity started, and when the production issue broke out. Just to give this some perspective, many of the projects I’ve seen costing just 1/20 of this one usually have a two-year timetable. I’d expect that a project of this size would require three to five years to properly implement, from inception to transition.

Maybe this was just a first phase, but unfortunately for Jollibee it has already been a costly first phase. Let’s hope some methodology changes have already taken place to avoid costly mistakes in the future.

Ok, my notes here are not specifically about this project, but about ERP projects in general. As one of my friends pointed out, “You’d be surprised at what passes for unit / functional / integration testing in Oracle and SAP projects.”

Granted, testing is still a terrible area even in Java or .Net projects, but the practices have slowly been gaining ground and maturity over the last ten years. Successful projects often plan and implement tests from the beginning of the project and throughout, not just at the end, with the majority of the tests automated. Testing is elevated to a core part of part of the project, not just auxiliary to programming.

Recommendations

1. start small.

I’ve been in the situation where I have been asked by existing clients or potential clients to accept large fixed-scope projects, often on compressed schedules. In such situations, we usually respond by proposing only a smaller-scoped project, one that can be accomplished in around six months, by a team of five people or less. The only exception is if the large project is similar to a project we’ve done before, for the same client.

This is an extremely risky move on our part, since normally, clients are dead set on a large scope, and will only consider vendors that meet the complete scope. However, we do this because it is in the best interest of the client and us as the vendor.

First of all, requirements are never right.  Almost all fixed-scope projects go through a series of change requests after the project. It is just impossible to correctly imagine upfront all the requirements needed for a project, even for small projects. The only time people realize what they really need is when they actually see the product, or get to use it.

A small initial project would allow the clients to better understand what they really need, and then specify succeeding scope based on something they can see and use. This is similar to the  Singaporean government’s “Call for Collaboration” approach , where they invite multiple vendors to build paid prototypes in response to specific problems, which becomes the basis for the full project scope.

Second, it allows the vendor to field a seasoned team.  Instead of scrambling to staff a large project, the vendor can source existing people within the company, led by one or more senior people, and having a common methodology. This allows the team to focus on the project concerns instead of having to deal with culture and process issues.

Third, scaling becomes easier later on.  After the first project with a small seasoned team, both client and vendor learn about how each other works and how to best work with each other. This allows them to take on larger projects together in an efficient manner. The members of the initial team can be the seed members of new teams, to take on succeeding projects. Those that participated on the first project on both sides can pass on their learnings to others to improve the chances of success of succeeding projects.

2. Testing is Core & Automated

The approach of  Test-Driven Development  has its origins in 1999, and since then the open-source community has produced a rich set of tools to deal with the various aspects of test specification and automation – from functional testing, to user-interface, to data and integration, to performance.

The most effective teams have testing as part of the core of their methodology. Teams start the project by defining tests, and then define and run tests throughout the project, not just towards the end. Testing is not relegated to just “testers” or QA personnel, but is an activity done by all practices in their own ways – developers, for example, build numerous automated tests around each significant unit of logic, modeling various scenarios.

The benefit of this is that as the project moves along, the team builds up a large and rich set of automated tests, that are able to catch bugs early and often, when they are still easy and cheap to fix. Because the majority of these tests are automated, they can be run several times a day and give the team instant feedback.

Let me repeat this fact –  defects are cheaper to find and fix if they are found sooner rather than later . Certainly, the defects in the current Jollibee project would have been cheaper had they been found during development, rather than during production, where they are now costing Jollibee millions of pesos a day.

After the system is built, it would naturally go through further enhancements and modifications. These changes can introduce defects. However, the robust suite of automated tests that were created with the system would improve the chances of catching these defects, making it safer and cheaper to maintain the system in the future.

3. Continuous Delivery

One of the riskiest things I see organizations do time and time again, is a big cut-over to a new system. They have a big announcement that, “System X will go live by  __ !” When that day does come around (usually delayed), it’s invariably a mess! People are unable to get their work done with the new system. If they’re lucky, the old system is still around for them to fall back to, while the new system undergoes bug-fixing. If they’re not lucky, the old system is no longer available either.

Compare this to how Google or Facebook roll out their changes. Notice that your GMail or Facebook has new features that come out every few weeks or months. If you don’t like the feature, there’s a button that allows you to roll back to the old way of doing things. This button is Google’s and Facebook’s way of getting feedback from their users. They roll out the new features to just a partial set of users. If the users opt to roll back, then Facebook and Google know they still need to improve the feature. Then they roll it out again to another set of users. When they hit the point when few users opt to roll back, then they know they’ve got the feature right and make it a permanent part of their systems.

You can apply this to corporate systems. Don’t roll out your systems in big bangs, rather have a lot of frequent rollouts every few weeks or months, to initially a partial set of users, and then gather feedback. It will be easier and safer to roll back small increments of change rather than large ones. Even the deployment and roll back can be automated. This will certainly be less costly to the productivity of your people and the operations of the company.

4. Visibility Through Process & Tools

My final piece of advice sort of puts everything together so that clients can monitor the progress of a project, and catch problems earlier rather than later.  A good, responsible team provides visibility to its client.  And this visibility is provided via concrete evidence, not status reports that can be faked.

Regular Demos.  A good team can provide their client with working software, as often as every one or two weeks. These aren’t PowerPoint presentations. Instead, they’re demos of new features to the software that clients can try out and give feedback on.

Test Reports.  Automated tests can and should be run multiple times a day, usually using centralized systems called “Continuous Integration Servers”. These systems can provide clients several times a day with reports on the various tests, and whether they pass or fail. Some of these tests, known as “Acceptance Tests”, are readable by non-technical users, so you can see what behavior is being added to the system, and whether the system already complies with the behavior.

Quality Metrics.  Aside from test reports, various tools can be added to the Continuous Integration Server to generate other reports. Among these reports are metrics on quality – For example, in Java there are various tools that can check if the code contains violations of coding standards, or contains logic that is too convoluted, or contains code that often leads to bugs.

Big Visible Charts.  If the team works onsite, various charts in the team work area can give the rest of the organization an idea of the progress of the team. Two of the more popular charts are Task Boards and Burndown Charts.

The worst part about this case is, this is normal. Huge projects blow up all the time, in fact the bigger the project, the more likely that it will fail. The only difference here is that this one hit the public eye, which is good, since now we get to talk about what causes success and failure in IT projects. I hope the Filipino IT community moves forward with continued discourse and reflection, so that in the future IT projects deliver value to its stakeholders, instead of frustration and waste.

Further Reading

Women Who Code: Transforming the Tech Landscape with Diversity and Skill

Embracing EQ in UX: A New Era for the Philippines National Skills Framework

Transforming Tech Talent: Philippines Introduces Game-Changing National Skills Framework for IT Excellence

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Case study of The Jollibee Foods Corporation

• Introduction

Jollibee Foods Corporation widely known as Jollibee is a  chain based in the . Founded by Tony Tan Caktiong, a Filipino Chinese in year 1975.  It is an American-style fast-food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes. Currently it is the biggest fast-food chain in the country, it also has locations in the , , , , ,  and . Jollibee is also the name of their , a large  in a ,  and chef's .

As of December 2007, Jollibee has become one of the biggest fast-food chains in the world with more than 600 stores worldwide and total sales of more than $1 billion, where out of that figure about 500 restaurants are located in the Philippines itself.

 and his family opened a Magnolia Ice Cream parlor at  in  with Jolibe as the original name. Sometime in 1978, Tony Tan and his brothers and sisters, being partners, engaged the services of a management consultant in the person of Manuel C. Lumba. Consultant Lumba shifted the business focus from ice cream to hamburgers, after his studies showed that a much larger market was waiting to be exploited. Lumba became Tony Tan's first business and management mentor. Lumba next re-formed the name Jolibe to Jolly Bee and made the two words form a single name Jollibee, but changed the "y" to an "i". The Jollibee mascot was conceptualized by Lumba inspired by local and foreign children's books. Lumba next created the product name "Yumburger" as well as the name "Chickenjoy". He had the company incorporated in order to benefit from incorporation and leased a house on Main St. in Cubao, Quezon City as the first headquarters. Lumba also formulated a long-term marketing strategy, listing up a number of consumer promotions and traffic building schemes. Tony Tan stressed that developing internal strengths was critical. The stores were re-designed, the service transformed into a full self-service, fast-food operation with drive thrus. Not long after, Tony Tan and Manny Lumba went on an observation tour in the United States, attended food service and equipment conventions. Tony Tan placed Manny Lumba in charge of franchise development.

In , the company acquired , a similar type of restaurant operated in the Philippines,  allowing Jollibee to be part of the oriental quick service restaurant segment. Similarly, Jollibee also acquired  on , another popular fast-food restaurant in the Philippines.

This is a preview of the whole essay

In , the company acquired the franchise of . This further expanded its penetration in the food service industry particularly in the  cafe-bakery, a growing segment of the Philippine food market. In September of 2006, the company acquired the remaining 50% stake of Delifrance Asia Ltd. in Baker Fresh Foods Phils., Inc. (BFFPI). This means BFFPI is now a wholly owned subsidiary of Jollibee and that the listed food giant has the exclusive rights to operate Delifrance outlets in the country. "The acquisition involved a restructuring of all advances by Jollibee and Delifrance Asia amounting to P130 million into equity," a public statement said. Jollibee added that the strong sales posted by Delifrance encouraged it to buy out its partner.

The corporate actions in buying out the minority shareholders in Greenwich Pizza (20%) and Delifrance (50%) were the prelude to a plan to integrate Greenwich Pizza, Chowking and Delifrance brands under one corporate entity. Under this plan, merging of the subsidiaries will be implemented by having Greenwich Pizza Corp. and BFFPI folded into Chowking Food Corp. The surviving entity will be renamed Fresh N' Famous Foods, Inc.  No new shares will be issued as the assets of Greenwich and BFFPI will be injected into Fresh 'N Famous as additional paid-in capital.

Along with its Philippine brands, the company also runs a Chinese fast food chain, , in mainland , and a popular  chain from  called  (Spring Water Hall). Chun Shui Tang teahouse opened a branch on    on June 30, . On , , Jollibee launched its pilot restaurant "Tio Pepe's Karinderia" in Edsa Central in Mandaluyong, to professionalize the Philippine carinderia business.

On , , Jollibee CEO  announced that it bought the    Hongzhuangyuan (which has 33 branches in ) for US $50.5 million. Jollibee has also acquired -based Yonghe King chain on  for $ 22.5 million and now operates 1,385 , ,  and    in the Philippines with over 200 branches in other . On , , Jollibee opened a new outlet in G-8, G-9 Jia Ning Na Mall,  City, China, owned and operated by Kuai Le Feng, a wholly owned subsidiary of JFC. It earlier operated a franchised store in  from 1998 to 2002.  Jollibee has also acquired Taiwanese restaurant chain Lao Dong for 61.1 million pesos (1.37 million dollars).

2.0 Jollibee’s Corporate Vision and Mission Statement

        Jollibee’s vision is fairly simple, that is,

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

While the mission statement is as follows.

“We are the best tasting QSR (Quick Service Restaurant) with the most endearing brand that has ever been. We will lead in product taste at all times. We will provide FSC execellence (Food, Service & Cleanliness) in every encounter. Happiness in every moment and by year 2020, with over 4000 stores worldwide. Jollibee is truly a global brand (and the Filipino will be admired worldwide”

3.0Revenue and experiences in countries outside the Philippines

        Jollibee group has recorded a revenue of 51.55pisos, equivalent to RM5.155 billion while the net profit is at 2.363 pisos which is equivalent to RM2.363 million. With a revenue to net profit ratio of 2.5. In the 20 th  century, it had actually ventured into partnership in other countries such as Singapore, Taiwan, Indonesia, Saudi Arabia and Malaysia but failed due to lake of proper partnership arrangement. And as of current year, other than the Philippines, it operated in the United States, Brunei Darul Salam, Hong Kong and Vietnam.

4.0 Attempted Questions

4.1 What is the key success factors for Jollibee Food Corporation (JFC)?

        4.1.1 Superior menu line-up.

        Basically the menus provided by Jollibees are quite similar to what is offered by McDonald. But the differences are, Jollibees offer noodles and rice meals to cater for Asians which is neglected by McDonald. On top of that, in term of pricing, for example, a comparison between a similar burger offered by Jollibee is US1.20 cheaper than the one in McDonald.

        4.1.2 Creative marketing programs

        For Jollibee, the four strategic marketing tactic to increase sales are, firstly, they offer delivery services within certain areas around the restaurant, which is similar to what Pizza Huts had. This, has indirectly increase sales to cater for those who were not able to come to the restaurant, and the privilege of enjoying Jollibee’s food in the comfort of their offices or houses and offer of convenience in the eyes of consumers.

        4.1.3 Efficient manufacturing and logistics facilities

        Jollibee’s production site is clean, efficient and located strategically surrounding their chain of restaurant. It is semi-automated and raw materials such as buns, chickens, beef and cheese are supplied fresh from the local market. They are processed within 24 hours and sent to the restaurants to be cooked for sale.

        4.1.4 Well-trained teams.

        There was no information on how the employees are trained but as evidence, the company had received many awards, such as "Best at Consumer Goods" in Asia’s Best Managed Companies poll survey by Euromoney Magazine Recognized by Forbes Asia Magazine as one of the 200 "Best Under a Billion" companies in Asia in year 2005. Tony Tan Caktiong, CEO & President of Jollibee Food Corporation, was awarded 2004 World Entrepreneur of the Year by Earnst & Young The Most admired corporation in the Philippines by Asian Wall Street Journal Revoiew 200 (formerly Far Eastern Economic Review 200) for 7 consecutive years (1998-2004) and in year 2003, The Most Admired Corporation in the Philippines by the Far Eastern Economic Review for 6 consecutive years (1998-2003) The Asia Money Magazine adjudged JFC as the country’s "Best Small Company" based on market capitalization for 2 consecutive years (2002-2003).  

        All the above can be proof of how well employees are trained to serve customers. As employees are front liners for the company.  

        4.1.5 Culture of integrity and humility

         Jollibee has had a long history of giving back to the community. With its involvement in worthwhile projects like Sa Aklat Sisikat, a reading program; Nurture the Future, a community-based feeding program; the Values Program of the Department of Education; and Habitat for Humanity, Jollibee has continually shown its commitment to building happy children and communities. With the establishment of the Jollibee Foundation in December 2004, Jollibee along with the rest of the Jollibee Foods Corporation (JFC) hopes to make its efforts in giving back to the community more organized, strategic and impact-oriented. The Jollibee Foundation envisions a future where Filipinos are able to enjoy and sustain a quality life defined by dignity, purpose, health and happiness; and where Filipinos actively participate in community and nation-building. Its objective: to work with Filipinos that they may reach their highest potential the same way Jollibee did. Jollibee call this “jollifying”—sharing the innovation and the values, and taking the expertise and tools that have made the company what it is today and passing it on to the people Jollibee Foods Corporation most ascribes its very success to: the everyday Filipino. This strategy of public relationship has further enhanced Jollibee’s international image.

        4.1.6 Fun and family like restaurant environment.

        Setting for the environment of Jollibee’s restaurant is such that all members of the family can gather and enjoy good meal. This implies that the more people come to the restaurant, the more expenses and hence translating into higher sales. Families are encouraged to have birthday parties hosted in Jollibee.

4.2 Question 2

Where is Jollibee Food Corporation vulnerable? What should it watch out for?

        4.2.1        International fast food chain

        Due to a fast pace world, modern life is getting tougher and more challenging for working people. Fast food business was born to cater for this group of people. Currently, McDonald, Kentucky  Fried Chicken or famously known as KFC, Pizza Huts, Burger King, Jollibee and other market players are competing with each other to gain market share.

• Other local food restaurants

Fast food restaurants, due to their image and restaurant comfortable setting, normally are charging higher price tag compared to the local delicacies. Jollibee too, is not spared from this scenario. Customers visiting fast food chain are mostly those of the middle class categories. Lower income earners would consider visiting Jollibee a luxury patronage while at the higher end, the rich and famous would prefer premium hotels or restaurants.

• Operation management

For fast food operation, efficiency and freshness of products are vital for the success. For Jollibee to be successful internationally, supply chain is one of the main criteria that the corporation should watch out for. For example, suppliers of bun and bread, meat, chicken, vegetables, beverage and others must be supplied at the right time, assuring freshness at manageable cost to come up with profit margin.

• Growing concern and conscious on health food

Fast food are generally considered as junk food by health concerned customers. They are said to be the main cause of over weighted children, and the cause of main sickness such as high blood, diabetes and others. Soft drinks are the major beverage served which is one of the major concern. Therefore, Jollibee should consider come out with healthier food which would cater to local needs internationally.

5.0 Question 3

What recommendation would you make to their senior marketing executives going forward? What should they be sure to do with their marketing?

        In view that since the early 1980, Jollibee was trying to expand its international business in many countries which include Singapore, Taiwan, Indonesia, Saudi Arabia and Malaysia but all ended up in failure. The was mainly due to unclear partnership agreement resulting in misunderstanding and partners taking advantage on Jollibee. Therefore, the following recommendation are given to Jollibee to assure the success in future.

• To choose the right partner and right location to go global

Jollibee should be careful in choosing partners. This is can be further enhanced by interviewing and having background check on prospect partners to

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• Word Count 2131
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Jollibee Foods Corporation Case Analysis and Case Solution

Posted by Peter Williams on Aug-09-2018

Introduction of Jollibee Foods Corporation Case Solution

The Jollibee Foods Corporation case study is a Harvard Business Review case study, which presents a simulated practical experience to the reader allowing them to learn about real life problems in the business world. The Jollibee Foods Corporation case consisted of a central issue to the organization, which had to be identified, analysed and creative solutions had to be drawn to tackle the issue. This paper presents the solved Jollibee Foods Corporation case analysis and case solution. The method through which the analysis is done is mentioned, followed by the relevant tools used in finding the solution.

The case solution first identifies the central issue to the Jollibee Foods Corporation case study, and the relevant stakeholders affected by this issue. This is known as the problem identification stage. After this, the relevant tools and models are used, which help in the case study analysis and case study solution. The tools used in identifying the solution consist of the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis. The solution consists of recommended strategies to overcome this central issue. It is a good idea to also propose alternative case study solutions, because if the main solution is not found feasible, then the alternative solutions could be implemented. Lastly, a good case study solution also includes an implementation plan for the recommendation strategies. This shows how through a step-by-step procedure as to how the central issue can be resolved.

Problem Identification of Jollibee Foods Corporation Case Solution

Harvard Business Review cases involve a central problem that is being faced by the organization and these problems affect a number of stakeholders. In the problem identification stage, the problem faced by Jollibee Foods Corporation is identified through reading of the case. This could be mentioned at the start of the reading, the middle or the end. At times in a case analysis, the problem may be clearly evident in the reading of the HBR case. At other times, finding the issue is the job of the person analysing the case. It is also important to understand what stakeholders are affected by the problem and how. The goals of the stakeholders and are the organization are also identified to ensure that the case study analysis are consistent with these.

Analysis of the Jollibee Foods Corporation HBR Case Study

The objective of the case should be focused on. This is doing the Jollibee Foods Corporation Case Solution. This analysis can be proceeded in a step-by-step procedure to ensure that effective solutions are found.

• In the first step, a growth path of the company can be formulated that lays down its vision, mission and strategic aims. These can usually be developed using the company history is provided in the case. Company history is helpful in a Business Case study as it helps one understand what the scope of the solutions will be for the case study.
• The next step is of understanding the company; its people, their priorities and the overall culture. This can be done by using company history. It can also be done by looking at anecdotal instances of managers or employees that are usually included in an HBR case study description to give the reader a real feel of the situation.
• Lastly, a timeline of the issues and events in the case needs to be made. Arranging events in a timeline allows one to predict the next few events that are likely to take place. It also helps one in developing the case study solutions. The timeline also helps in understanding the continuous challenges that are being faced by the organisation.

SWOT analysis of Jollibee Foods Corporation

An important tool that helps in addressing the central issue of the case and coming up with Jollibee Foods Corporation HBR case solution is the SWOT analysis.

• The SWOT analysis is a strategic management tool that lists down in the form of a matrix, an organisation's internal strengths and weaknesses, and external opportunities and threats. It helps in the strategic analysis of Jollibee Foods Corporation.
• Once this listing has been done, a clearer picture can be developed in regards to how strategies will be formed to address the main problem. For example, strengths will be used as an advantage in solving the issue.

Therefore, the SWOT analysis is a helpful tool in coming up with the Jollibee Foods Corporation Case Study answers. One does not need to remain restricted to using the traditional SWOT analysis, but the advanced TOWS matrix or weighted average SWOT analysis can also be used.

Porter Five Forces Analysis for Jollibee Foods Corporation

Another helpful tool in finding the case solutions is of Porter's Five Forces analysis. This is also a strategic tool that is used to analyse the competitive environment of the industry in which Jollibee Foods Corporation operates in. Analysis of the industry is important as businesses do not work in isolation in real life, but are affected by the business environment of the industry that they operate in. Harvard Business case studies represent real-life situations, and therefore, an analysis of the industry's competitive environment needs to be carried out to come up with more holistic case study solutions. In Porter's Five Forces analysis, the industry is analysed along 5 dimensions.

• These are the threats that the industry faces due to new entrants.
• It includes the threat of substitute products.
• It includes the bargaining power of buyers in the industry.
• It includes the bargaining power of suppliers in an industry.
• Lastly, the overall rivalry or competition within the industry is analysed.

This tool helps one understand the relative powers of the major players in the industry and its overall competitive dynamics. Actionable and practical solutions can then be developed by keeping these factors into perspective.

PESTEL Analysis of Jollibee Foods Corporation

Another helpful tool that should be used in finding the case study solutions is the PESTEL analysis. This also looks at the external business environment of the organisation helps in finding case study Analysis to real-life business issues as in HBR cases.

• The PESTEL analysis particularly looks at the macro environmental factors that affect the industry. These are the political, environmental, social, technological, environmental and legal (regulatory) factors affecting the industry.
• Factors within each of these 6 should be listed down, and analysis should be made as to how these affect the organisation under question.
• These factors are also responsible for the future growth and challenges within the industry. Hence, they should be taken into consideration when coming up with the Jollibee Foods Corporation case solution.

VRIO Analysis of Jollibee Foods Corporation

This is an analysis carried out to know about the internal strengths and capabilities of Jollibee Foods Corporation. Under the VRIO analysis, the following steps are carried out:

• The internal resources of Jollibee Foods Corporation are listed down.
• Each of these resources are assessed in terms of the value it brings to the organization.
• Each resource is assessed in terms of how rare it is. A rare resource is one that is not commonly used by competitors.
• Each resource is assessed whether it could be imitated by competition easily or not.
• Lastly, each resource is assessed in terms of whether the organization can use it to an advantage or not.

The analysis done on the 4 dimensions; Value, Rareness, Imitability, and Organization. If a resource is high on all of these 4, then it brings long-term competitive advantage. If a resource is high on Value, Rareness, and Imitability, then it brings an unused competitive advantage. If a resource is high on Value and Rareness, then it only brings temporary competitive advantage. If a resource is only valuable, then it’s a competitive parity. If it’s none, then it can be regarded as a competitive disadvantage.

Value Chain Analysis of Jollibee Foods Corporation

The Value chain analysis of Jollibee Foods Corporation helps in identifying the activities of an organization, and how these add value in terms of cost reduction and differentiation. This tool is used in the case study analysis as follows:

• The firm’s primary and support activities are listed down.
• Identifying the importance of these activities in the cost of the product and the differentiation they produce.
• Lastly, differentiation or cost reduction strategies are to be used for each of these activities to increase the overall value provided by these activities.

Recognizing value creating activities and enhancing the value that they create allow Jollibee Foods Corporation to increase its competitive advantage.

BCG Matrix of Jollibee Foods Corporation

The BCG Matrix is an important tool in deciding whether an organization should invest or divest in its strategic business units. The matrix involves placing the strategic business units of a business in one of four categories; question marks, stars, dogs and cash cows. The placement in these categories depends on the relative market share of the organization and the market growth of these strategic business units. The steps to be followed in this analysis is as follows:

• Identify the relative market share of each strategic business unit.
• Identify the market growth of each strategic business unit.
• Place these strategic business units in one of four categories. Question Marks are those strategic business units with high market share and low market growth rate. Stars are those strategic business units with high market share and high market growth rate. Cash Cows are those strategic business units with high market share and low market growth rate. Dogs are those strategic business units with low market share and low growth rate.
• Relevant strategies should be implemented for each strategic business unit depending on its position in the matrix.

The strategies identified from the Jollibee Foods Corporation BCG matrix and included in the case pdf. These are either to further develop the product, penetrate the market, develop the market, diversification, investing or divesting.

Ansoff Matrix of Jollibee Foods Corporation

Ansoff Matrix is an important strategic tool to come up with future strategies for Jollibee Foods Corporation in the case solution. It helps decide whether an organization should pursue future expansion in new markets and products or should it focus on existing markets and products.

• The organization can penetrate into existing markets with its existing products. This is known as market penetration strategy.
• The organization can develop new products for the existing market. This is known as product development strategy.
• The organization can enter new markets with its existing products. This is known as market development strategy.
• The organization can enter into new markets with new products. This is known as a diversification strategy.

The choice of strategy depends on the analysis of the previous tools used and the level of risk the organization is willing to take.

Marketing Mix of Jollibee Foods Corporation

Jollibee Foods Corporation needs to bring out certain responses from the market that it targets. To do so, it will need to use the marketing mix, which serves as a tool in helping bring out responses from the market. The 4 elements of the marketing mix are Product, Price, Place and Promotions. The following steps are required to carry out a marketing mix analysis and include this in the case study analysis.

• Analyse the company’s products and devise strategies to improve the product offering of the company.
• Analyse the company’s price points and devise strategies that could be based on competition, value or cost.
• Analyse the company’s promotion mix. This includes the advertisement, public relations, personal selling, sales promotion, and direct marketing. Strategies will be devised which makes use of a few or all of these elements.
• Analyse the company’s distribution and reach. Strategies can be devised to improve the availability of the company’s products.

Jollibee Foods Corporation Blue Ocean Strategy

The strategies devised and included in the Jollibee Foods Corporation case memo should have a blue ocean strategy. A blue ocean strategy is a strategy that involves firms seeking uncontested market spaces, which makes the competition of the company irrelevant. It involves coming up with new and unique products or ideas through innovation. This gives the organization a competitive advantage over other firms, unlike a red ocean strategy.

Competitors analysis of Jollibee Foods Corporation

The PESTEL analysis discussed previously looked at the macro environmental factors affecting business, but not the microenvironmental factors. One of the microenvironmental factors are competitors, which are addressed by a competitor analysis. The Competitors analysis of Jollibee Foods Corporation looks at the direct and indirect competitors within the industry that it operates in.

• This involves a detailed analysis of their actions and how these would affect the future strategies of Jollibee Foods Corporation.
• It involves looking at the current market share of the company and its competitors.
• It should compare the marketing mix elements of competitors, their supply chain, human resources, financial strength etc.
• It also should look at the potential opportunities and threats that these competitors pose on the company.

Organisation of the Analysis into Jollibee Foods Corporation Case Study Solution

Once various tools have been used to analyse the case, the findings of this analysis need to be incorporated into practical and actionable solutions. These solutions will also be the Jollibee Foods Corporation case answers. These are usually in the form of strategies that the organisation can adopt. The following step-by-step procedure can be used to organise the Harvard Business case solution and recommendations:

• The first step of the solution is to come up with a corporate level strategy for the organisation. This part consists of solutions that address issues faced by the organisation on a strategic level. This could include suggestions, changes or recommendations to the company's vision, mission and its strategic objectives. It can include recommendations on how the organisation can work towards achieving these strategic objectives. Furthermore, it needs to be explained how the stated recommendations will help in solving the main issue mentioned in the case and where the company will stand in the future as a result of these.
• The second step of the solution is to come up with a business level strategy. The HBR case studies may present issues faced by a part of the organisation. For example, the issues may be stated for marketing and the role of a marketing manager needs to be assumed. So, recommendations and suggestions need to address the strategy of the marketing department in this case. Therefore, the strategic objectives of this business unit (Marketing) will be laid down in the solutions and recommendations will be made as to how to achieve these objectives. Similar would be the case for any other business unit or department such as human resources, finance, IT etc. The important thing to note here is that the business level strategy needs to be aligned with the overall corporate strategy of the organisation. For example, if one suggests the organisation to focus on differentiation for competitive advantage as a corporate level strategy, then it can't be recommended for the Jollibee Foods Corporation Case Study Solution that the business unit should focus on costs.
• The third step is not compulsory but depends from case to case. In some HBR case studies, one may be required to analyse an issue at a department. This issue may be analysed for a manager or employee as well. In these cases, recommendations need to be made for these people. The solution may state that objectives that these people need to achieve and how these objectives would be achieved.

The case study analysis and solution, and Jollibee Foods Corporation case answers should be written down in the Jollibee Foods Corporation case memo, clearly identifying which part shows what. The Jollibee Foods Corporation case should be in a professional format, presenting points clearly that are well understood by the reader.

Alternate solution to the Jollibee Foods Corporation HBR case study

It is important to have more than one solution to the case study. This is the alternate solution that would be implemented if the original proposed solution is found infeasible or impossible due to a change in circumstances. The alternate solution for Jollibee Foods Corporation is presented in the same way as the original solution, where it consists of a corporate level strategy, business level strategy and other recommendations.

Implementation of Jollibee Foods Corporation Case Solution

The case study does not end at just providing recommendations to the issues at hand. One is also required to provide how these recommendations would be implemented. This is shown through a proper implementation framework. A detailed implementation framework helps in distinguishing between an average and an above average case study answer. A good implementation framework shows the proposed plan and how the organisations' resources would be used to achieve the objectives. It also lays down the changes needed to be made as well as the assumptions in the process.

• A proper implementation framework shows that one has clearly understood the case study and the main issue within it.
• It shows that one has been clarified with the HBR fundamentals on the topic.
• It shows that the details provided in the case have been properly analysed.
• It shows that one has developed an ability to prioritise recommendations and how these could be successfully implemented.
• The implementation framework also helps by removing out any recommendations that are not practical or actionable as these could not be implemented. Therefore, the implementation framework ensures that the solution to the Jollibee Foods Corporation Harvard case is complete and properly answered.

Recommendations and Action Plan for Jollibee Foods Corporation case analysis

For Jollibee Foods Corporation, based on the SWOT Analysis, Porter Five Forces Analysis, PESTEL Analysis, VRIO analysis, Value Chain Analysis, BCG Matrix analysis, Ansoff Matrix analysis, and the Marketing Mix analysis, the recommendations and action plan are as follows:

• Jollibee Foods Corporation should focus on making use of its strengths identified from the VRIO analysis to make the most of the opportunities identified from the PESTEL.
• Jollibee Foods Corporation should enhance the value creating activities within its value chain.
• Jollibee Foods Corporation should invest in its stars and cash cows, while getting rid of the dogs identified from the BCG Matrix analysis.
• To achieve its overall corporate and business level objectives, it should make use of the marketing mix tools to obtain desired results from its target market.

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