Alis, Ma.Fatima Castro, John Carlo David, Crysler Aeron Siron, Francesca Jaene Ramirez, Liza Marie JOLLIBEE FOOD CORPORATION STRATEGIC MANAGEMENT I. COMPANY PROFILE • The Jollibee Foods Corporation (JFC) is a Philippine based company engaged in the development of operation and franchising of QSR (Quick Service Restaurant) under the brand name Jollibee. JFC was incorporated on January 28, 1978. JFC has expand its network through its subsidiaries – Fresh N’ Famous Inc., which operates and franchises quick service restaurants under the trade names – Chowking, Greenwich, Red Ribbon Bakeshop, Inc.( through RRB Holdings ,Inc), which operates and franchises restaurants under the trade name- • Red Ribbon, Mang Inasal Philippines,Inc. (of which Jollibee Foods Corporation owns 70%) and PERF Restaurant Inc., (where FC owns 54%) which franchises restaurant under the trademark “Burger King” in the Philippines. MILESTONES / HISTORY • 1975 Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao. This will later become the 1st Jollibee Outlet. • 1978 Jollibee posts 1st year sales of P2 million Jollibee is incorporated as a 100% Filipino-owned company, with seven Jollibee fast food restaurants within Metro Manila as its initial network. The Yumburger becomes its first flagship product. • 1979 Spaghetti Special is introduced. Jollibee’s first franchised-store opens at Ronquillo, Sta. Cruz, Manila. • 1980 Jollibee launches its 1st TV commercial. Jollibee’s Chickenjoy and French Fries are launched. The well-loved Jollibee mascot is conceived to support brand awareness and identity efforts. Other mascots are later introduced. Jollibee’s Chickenjoy becomes one of its best-selling menu items. MILESTONES / HISTORY 1981 • Jollibee Foods Corporation enters the list of Top 1000 Corporations in the Philippines. • Jollibee ended the year with 10 stores 1982 • Jollibee pioneers the use of in-store promotions, novelty premium items and Kiddie Birthday packages for kids. • Palabok Fiesta is introduced. 1983 • The Langhap-Sarap TV ad Campaign is launched. • Chickee and Lady Moo join the Jollibee mascots. MILESTONES / HISTORY 1984 • Champ hamburger is launched. • Jollibee enters list of Top 500 Corporations and assumes market leadership in local fast food industry. • Mascots Champ and Hetty join the Jollibee family. • WEA gives Jollibee the Gold Record Award for outstanding sales of Jollibee songs. 1985 • Jollibee becomes the market leader in the fast food industry. • Breakfast Joys are introduced. • The “Langhap-Sarap” campaign is awarded as the most effective ad campaign in the food category during the 9th Philippine Advertising Congress. 1986 • Jollibee wins the 9th International Foods Award from El Comestible in Barcelona, Spain. • Tony Tan wins the Agora Award for entrepreneurship given by the Philippine Marketing Association. MILESTONES / HISTORY • The Philippine’s Top 250 Corporations list includes Jollibee Foods Corporation. • Jollibee adds Chunky Chicken Sandwich in its menu. 1987 • Sales of P570 million pushes Jollibee into the elite Top 100 Corporations. • Jollibee opens 1st fast food outlet in Brunei, marking its entry into the global market. 1988 • Jolly Twirls softserve is successfully launched. • Jollibee’s system-wide sales hit P921 million, further leading market share of 31% in the fast food industry and a dominant 57% share in the hamburger segment. • Jollibee celebrates its 10th year anniversary. • Tony Tan is named one of the Ten Outstanding Manilans. • Jollibee wins the Anvil Award for outstanding PR campaign in relation to the achievement of its marketing objective on its Filipino Talents campaign. MILESTONES / HISTORY 1989 • 2nd Brunei store opens. • Balut and Ligaw TV commercials wins the Kidlat Award in the Service and Leisure Products category during the 11th Philippine Ad Congress. • Jollibee sales hit the P1.3 billion mark, giving the brand the distinction as the first fast food chain to surpass the billion-peso sales mark. 1990 • Jollibee adds Jolly Hotdog, Chickenjoy Take-Me-Out, Coleslaw, and Peach Mango Pie to its ever-growing menu. • Jollibee post sales of P1.8 billion. • Tony Tan is awarded the Triple Award by AIM as Outstanding AIM Alumnus. • Jollibee receives the Excellence in Marketing Management Award from the Asian Institute of Management. 1991 • Jollibee opens its 1st store outside Luzon in Cagayan de Oro City. • Jollibee’s 100th store opens in Davao City. • Jollibee opens a record high of 35 new stores. • Jollibee launches its Pancakes and Jolly Meals. MILESTONES / HISTORY • Jollibee sales hit a whopping P2.65 billion. • The Lola TV commercial wins the Grand Araw Award and an award of excellence for the promotion of Filipino Values during the Philippine Ad Congress. • Jollibee receives award for the Outstanding Corporate Safety Consciousness Programs by the Safety Organization of the Philippines (SOP). 1992 • Jollibee sales hit the P3.365 billion. • Jollibee improves its softserve ice cream line by offering fruit-flavored ice cream. • Jollibee corners 73% if the Hamburger segment. • Jollibee has 112 stores nationwide. • Jollibee maintains its advantage over its competitors by acquiring more than 50% share of the fast food industry. 1993 • On July 13, JFC is listed in the Philippine Stocks Exchange with an initial offering of P9.00 per share. • In October 1993, JFC shares are being sold for P20.00, a windfall or more than 135%. • Marketing launched its At Home Ako sa Jollibee ad campaign, focusing on Jollibee’s loyal customers. • Jollibee introduces the Kiddie Pack Promo. MILESTONES / HISTORY • JFC moves to Jollibee Centre Building in Ortigas Center, Pasig, for its new Main Office site. 1994 • 148 Jollibee stores nationwide by year-end. • JFC expands into the pizza-pasta segment with the acquisition of Greenwich Pizza Corporation. • Jollibee is cited as one of the leading companies in Asia by the Far Eastern Economic Review. 1995 • Jollibee opens an additional 20 stores in the Philippines,bringing its total store network to 168. • Jollibee successfully opens stores abroad: Guam, Dubai, United Arab Emirates, Kuwait, and Jeddah, and Kingdom of Saudi Arabia. 1996 • Jollibee opens its 200th store in Malolos Bulacan. • Jollibee is cited again as one of the leading companies in Asia by the Far Eastern Economic Review. • Jollibee’s system-wide sales increase to P8.29 billion which translates to a market share of more than 50% among all hamburger fast food chains. MILESTONES / HISTORY • Jollibee has 208 stores nationwide. • Mary’s Chicken was born; a semi-self service restaurant and another Jollibee subsidiary. • The company reengineers its visual identity system. • Amazing Aloha is launched. • The 1st Jollibee store kanyain Hong Kong opens. • Jollibee launches various projects, such as Maaga ang Pasko sa Jollibee and Chikiting Patrol: at Home Ako Dito. These projects’ main objective was to protect and contribute to the development of the Filipino children. 1997 • System-wide sales increase to P11.17 billion. • Jollibee launches “Kaya mo Kid” project which aims to instill positive values to children and help them achieve their dreams and ambitions. 1998 • Jollibee opens in Daly City, Califorina, its first store in the USA. • The company celebrates its 20th year anniversary. • Jollibee opens 62 stores nationwide, bringing its total store network to 300. MILESTONES / HISTORY • Jollibee opens its 300th store in Balagtas, Bulacan. • Jollibee receives the ISO 9002 Certification for its frozen patty line. • Jollibee wins the Employer of the Year Award.\ 1999 • Jollibee opens 50 stores nationwide, which increased the store count to 350 stores. • The Cheezy Bacon Mushroom Burger is introduced to its line of specialty burgers. • Far Eastern Economic Review cites Jollibee as the Philippines’ leading business corporation. 2000 • 31 more Jollibee stores open, bringing the total to 381 stores. • Jollibee acquires Chowking . • For the 3rd straight year, Far Eastern Economic Review ranked Jollibee as the Philippines’ leading company. • Asian Business Magazine ranks Jollibee as the Most Admired Company in the Philippines and the 3rd over-all in Asia, surpassed only by global giants General Electric and Microsoft. • JFC’s system-wide sales reach P20 billion. MILESTONES / HISTORY 2001 • Jollibee opens its 400th store in Intramuros. • System-wide sales rose to 18.8% to P24.11 billion. Income reaches P959 million. • JFC store network expands to 800 restaurants, which includes Greenwich and Chowking stores. 2002 • Revenues almost reach the P27-billion mark. JFC number of stores exceeded 900. • Tony Tan is named MAP “Management Man of the Year”. 2003 • JFC store count reaches 988 nationwide. • For the sixth straight year, the Far Eastern Economic Review ranked JFC as the Philippines’ Leading Company. • Jollibee celebrates its 25th year. MILESTONES / HISTORY 2004 • Chairman and Chief Executive Officer Tony Tan Caktiong is named Ernest and Young’s 2004 World Entrepreneur of the Year. • Jollibee opens its 500th store in Basilan. • Jollibee inaugurates its biggest and most modern commissary in Camelray Industrial Park in Canlubang, Laguna with President Gloria Macapagal Arroyo as guest of honor. • JFC acquires its 1st foreign brand – Yonghe King, a fast food chain in China. • The Jollibee Group Foundation is established. 2005 • JFC acquires Red Ribbon Bakeshop. 2006 • Ernesto Tan Mantiong receives Corporate Citizen Award of the year from CNBC Asian Business Leaders Awards. 2007 • Jollibee opens 600th store in Aparri, Cagayan. • Jollibee opens Las Vegas outlet. MILESTONES / HISTORY 2008 • Jollibee launches Jollitown, the first children’s TV show in the country to be produced by a fast food chain. • Tont Tan Caktiong and Ernesto Tan Mantiong are featured by BBC and CNBC Managing Asia, respectively. • Jollibee marks its 30th anniversary. • Jollibee bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Award held in Singapore. • Zenith Foods Corporation, the commissary plant of JFC, adjudged the national winner of Meat Processing Plant AAA category in the search for Best Meat Establishment of the National Meat Inspection Service. • Jollibee strengthens US network with the opening of three new stores. • Jollibee wins the Award of Excellence in the Philippine Quill Awards for Media Relations Program(30th anniversary campaign). • Jollibee bags CMMA and three Araw Values Award. • Jollibee stages first ever holiday musical special for children dubbed “A Magical Christmas at Jollitown”. MILESTONES / HISTORY • Jollibee and the Jollibee Franchisees Association launched the 30th anniversary special novelty offering – Hug and Share Doll. Proceeds of the sales will all be donated to charity. • Biggest and grandest Maaga ang Pasko caps off Jollibee’s 30th anniversary. Total of more than 117,000 toys and books collected were the highest ever in the campaign’s 14-year history. 2010 • Jollibee opens its 700th store in Baguio City. • Jollibee opens its first store in Qatar. 2011 • Jollibee opens its first store in Hawaii, USA. • Jollibee launches its first Family Values Award. 2012 • Jollibee opens its first store in Kuwait. • Jollibee is named by New York-based magazine Travel + Leisure as one of the best fast food chains in the world. 2013 • Jollibee celebrates its 35th anniversary. • Jollibee opens in Singapore, which has a record first-day sales. • Jollibee opens its 800th store in Malaybalay, Bukidnon. • Jollibee opens its 100th international store in Jubail, Saudi Arabia. MILESTONES / HISTORY • USA’s Restaurant Business Magazine includes Jollibee as among the 50 fastest growing chains in the United States. • Tony Tan Caktiong, JFC’s Chairman & CEO, is named Global Filipino Executive of the Year at the Asia CEO Awards. • JFC’s systemwide sales breaks the P100-billion sales mark. 2014 • Jollibee is named Outstanding Food Retailer-Large Category at the Philippine Retailers’ Association Awards. • Jollibee opens its 100th store in Mindanao. • Jollibee is included among the top 10 international fast food restaurants in the United States by The Daily Meal. • Jollibee is hailed as “best international restaurant chain” by US-based food and lifestyle website, Thrillist. • JFC’s stock price reaches the P200-level. • Jollibee’s official Facebook account breaches 1 million likes from Facebook users. 2015 • Jollibee opens its 900th Philippine store in Palo, Leyte. • Jollibee reaches its 1000th store as it opens its first store in Dubai, UAE. • Jollibee opens its first store in Bahrain. BOARD OF DIRECTORS, MANAGEMENT TEAM, AND EXECUTIVE OFFICER JOLLIBEE PRODUCT MENUS • Beverages and Desserts Coke Float Mix-ins Chocolate Sundae Strawberry Sundae Strawberry Shake Choco Shake Cone Twirl Vanilla Cone Twirl Krunchy Chocolate JOLLIBEE PRODUCT MENUS • Breakfast Breakfast Pancakes Breakfast Steak Breakfast Hotdog Breakfast Beef Tapa Breakfast Beef Tapa Breakfast Longganisa JOLLIBEE PRODUCT MENUS • Burgers Yum Yum with Cheese Yum with TLC Cheesy Bacon Champ Cheesy Bacon Mushroom Yum Mushroom Champ JOLLIBEE PRODUCT MENUS • Chicken Chicken Joy 2 pieces Chicken Joy Spicy Chicken Joy Chicken Bucket JOLLIBEE PRODUCT MENUS • Noodles Palabok Fiesta Spaghetti • Rice Meals Burger Steak Ultimate Burger Steak JOLLIBEE PRODUCT MENUS Garlic Pepper Beef Garlic Bangus 5 Pieces Shanghai Rolls • Sandwiches and Sides Jolly Hotdog Classic Peach Mango Pie Jolly Crispy Fries JOLLIBEE PRODUCT MENUS Buttered Corn Macaroni Soup Kids Meal II. VMG ANALYSIS • Vision We excel in providing great tasting food that meets local preferences better than anyone. We provide superior dining experience, through FSC (Food, Service, and Cleanliness) excellence in every encounter. We are the most cost efficient restaurant company in our business segments, allowing us to price at the most popular levels. Our people are passionate about their work and thrive in a high performance culture. We strive to become a model corporate citizen by being relevant to the communities we serve. Our brands are either #1 or #2 in each of our market segments. It is the vision of JFC to become one of the three largest and most profitable restaurant companies in the world by 2020. VISION ANALYSIS Criteria Yes/No Evaluation Focused Yes Jollibee Foods Corporation has given great and on- Concept point concepts. They have planned out really well. In order for their brand to become the #1 or #2 in the market, they must meet the local’s food preferences, provide a better dining experience to the consumers through the FSC (Food, Service, Cleanliness) excellence, give out an affordable price that can be popular to consumers, and lastly to have their consumers be welcomed and get served by passionate workers. VISION ANALYSIS Criteria Yes/No Evaluation Plausible Yes It has a higher chance of success considering that chance of they really provide food that the locals prefer an success example of it is the Jollibee spaghetti which has a bit of a sweeter taste than spaghetti’s of other restaurants. We all know that Filipinos have sweet tooth and Jollibee have used this to its full potential by catering to the bigger part of the population in the Philippines which are the younger ages (29 years and below). VISION ANALYSIS Criteria Yes/No Evaluation Notable Yes “We strive to become a model corporate citizen by being Purpose relevant to the communities we serve” is Jollibee Food Corporations’ most notable purpose. Almost all of the biggest food corporations would want to be the #1 in the market and that’s for sure but in order to truly become #1 is to win the hearts of the people, the community. Being relevant to the community is not an easy task but Jollibee has established its relevance to the community and that is giving out consumers the best dining experience by serving great food that the community prefers. MISSION • To serve great tasting food, bringing the joy of eating to everyone. Together with our partners, we help our communities through: Improved access to Education for the youth, Leadership development for local organizations, Livelihood programs for small farmers. Environment- friendly initiatives, Decent Housing and Disaster Relief for calamity-stricken regions. MISSION ANALYSIS Criteria Yes/No Evaluation Customers Yes “everyone” Products/Services Yes “serve great tasting food” Markets Yes “everyone” Technology No Concern for survival, No growth, and profitability MISSION ANALYSIS Philosophy Yes “bringing the joy of eating to everyone” Self-Concept Yes “serve great tasting food, bringing the joy of eating to everyone” Concern for public Yes “we help our communities through: Improved access to image Education for the youth, Leadership development for local organizations, Livelihood programs for small farmers. Environment-friendly initiatives, Decent Housing and Disaster Relief for calamity-stricken regions.” Concern for No employees REVISED MISSION STATEMENT To serve great tasting food (2 & 7), bringing the joy of eating to everyone (1, 3 & 6). Together with our partners, we help our communities through: Improved access to Education for the youth, Leadership development for local organizations, Livelihood programs for small farmers. Environment-friendly initiatives and Decent Housing and Disaster Relief for calamity-stricken regions (8). We make our Employees feel the family environment and Student employees were granted scholarships (9). We also provide a reliable information in managing our supply chain including the Inventory with the help of Oracle System (4). Growing community is a means of gaining popularity and growing a business is a means of expanding our market to other locations (5). (106 words) C. GOALS/ OBJECTIVES • plans to build up its network to 8,000 stores over the next five years mostly through organic growth and acquisitions • will continue to be open to acquisitions mainly in the three pillars identified, namely Philippines, China and the United States • Most of the store openings over the next five years will also be geared overseas as the fastfood giant aims to divide equally the revenue contribution of overseas and domestic outlets. They hope to hit 50% foreign sales over the next five years • Superfoods Group under Jollibee’s operations starting in May is expected to help the company achieve the 4,000 store network target this year. Superfoods Group currently operates the brands Highlands Coffee and Pho 24, and is a franchisee of Hard Rock Café. • Superfoods over the next three years plans to open 485 stores by expanding its presence in Indonesia, Cambodia, Korea and Australia. C. GOALS/ OBJECTIVES • The fastfood chain is set to open a Jollibee store in Manhattan, New York City and a second store in Canada before the end of 2017 or early 2018. • It will also open a Jollibee store in Sydney, Australia, Guam and Malaysia next year and is looking at opening stores in Japan by 2019. • In China, the company targets 35 new stores with the focus on Beijing. • The group is also looking at entering Japan by 2019. • JFC is looking to list the Superfoods Group, a joint venture with Viet Thai International Joint Stock Co. on the Vietnamese bourse (stock exchange) by July 2019 which will help finance the construction of 300 stores over the next five years. • JFC would be opening at least 15 more Singapore outlets in the next five years. C. GOALS/ OBJECTIVES COMPANY PROGRAMS • JFC continues its 7th Jollibee Family Values Awards which gives 300,000 cash awards to help the winning family for their advocacy to contribute to the community. • Over 20 years and counting Maaga ang Pasko program continues to join hands with partner schools and companies to benefit the many less fortunate children during the holiday season. • Aside from project ACE (Improving Access, Curriculum and Employability), JFC also conducts series of basic life skills workshops to help graduating scholars better prepare for the workplace. • FEP (Farmer Entrepreneurship Program) which seeks to help smallholder farmers working to improve their incomes. The program provides critical education and training, equipping farmers with skills and tools that enable them to maximize profits and minimize losses. • BLT (Busog, Lusog, Talino) School Feeding Program ensures that children in participating schools are given the proper diet and the nutritional value that they require in order to become the best students they can be. C. GOALS/ OBJECTIVES • Long-term and on-going goals and objectives of Jollibee Food Corporation relates to their company vision and mission statements. It indeed brings the joy to everyone not only through the delicious food they offer but also through service for the community. Offering new opportunities to farmers, scholarships for the youth and leadership development seminars gives value and importance to the philosophies of the company and portrays that business is not all about making money; it made JFC a model corporate citizen. By continuing to add ventures and open stores overseas they are getting closer in becoming one of the three largest and most profitable restaurant companies in the world. III. STRATEGIC MANAGERSBOARD OF DIRECTORS AND TOP MANAGEMENT IV. EXTERNAL ASSESSMENT STEEP ANALYSIS Socio-cultural • affect the areas that involve the shared belief and attitudes of the population • Social trends • Halaal products in countries like KSA • Jollibee is also providing financial assistance to various welfare organizations helping the needy children of the Philippines. STEEP ANALYSIS Technological • Technological factors can affect how an organization does business. • Any new type of technology or product can help a company stay modernized and on top of the market. • Jollibee has recently centralized its express delivery service through the Globe Telecom • Hashtag project • Signing the credit bills through the touch screen STEEP ANALYSIS Economic • Economic factors have major impact on how an organization does business and also how profitable they are. • The higher inflation rate in the country disabled many families to afford the Jollibee products and they prefer to eat at home • The cost of business production also increased compelling the company to raise its prices. • The change in exchange rates and currency fluctuations STEEP ANALYSIS Environmental • Environment factors is important due to the increasing scarcity of raw materials, pollution targets, doing business as an ethical and sustainable company, carbon footprint targets set by governments. • Huge carbon emissions are involved in the entire process of fast food manufacturing. • Jollibee has banned the use of Styrofoam and plastic when it comes to take-outs. STEEP ANALYSIS Political-legal • concerns health and safety, equal opportunities, advertising standards, consumer rights and law, product labeling and product safety. • The legal regulations regarding the franchising and copyrights • restaurants as Jollibee are required to indicate the nutritional factors for each meal they offer. • control the license given for open the fast food restaurant and other business regulation need to follow such as for a franchise business. PORTER’S FIVE FORCES ANALYSIS Supplier Power • Jollibee has a low supplier power; items are readily available from numerous suppliers. The switching cost is low and there is a flow in the availability of supplies. Buyer Power • Jollibee has a medium bargaining power of buyers. Buyers purchase the items in small quantities. Quantity and quality of information are available to buyer improves. And buyers have the ability to postpone purchase until later. PORTER’S FIVE FORCES ANALYSIS Competitive Rivalry • Jollibee is high when it comes to rivalry among competing sellers. Jollibee has numerous competitors, like KFC and McDonalds Threat of Substitution • With so many firms in quick service, burger industry, similar products, switching costs, and even healthier options, the threat of substitutes is very high. Threat of New Entry • Jollibee is medium in threat of new entrant. A lot of Jollibee’s new competitors are coming into the market, although, Jollibee has a lot of fast food restaurants, like Greenwich, Red Ribbon, Delefrance, etc. so that gives them a bit of an advantage since they have a lot of investments. EXTERNAL FACTOR EVALUATION (EFE) MATRIX OPPORTUNITIES Weight Rating Weighted Score 1.) Net National Disposable Income amounted to Php .10 3 .30 16.2 Trillion in 2016, an increase of 8.4% from 2015. 2.) Shoppers’ increasing desire for convenience, quick .08 4 .32 preparations and ready to eat meal options. 3.) Global social media use has increased by 21%, .07 3 .21 reaching 2.8 billion users globally. 4.) Chicken was considered as one of the major meat .06 4 .24 product with about 62% to 63% of households reporting its consumption. EXTERNAL FACTOR EVALUATION (EFE) MATRIX OPPORTUNITIES Weight Rating Weighted Score 5.)Low prices on meats, vegetables and .05 3 .15 other commodities. 6.) Growing urban lifestyle .04 3 .12 7.) The unemployed persons numbered .04 4 .16 about 2.4 Million resulting to an annual unemployment rate of 5.5% in 2016 EXTERNAL FACTOR EVALUATION (EFE) MATRIX OPPORTUNITIES Weight Rating Weighted Score 8.) Total out-of-school children and youth .03 4 .12 (OSCY), 87.3% were 16 to 24 years old, 7.7% were 12 to 15 years old and 5% were 6 to 11 years old. 9.) Growing millennial population .02 3 .06 10.) Consumers trends are changing as people .01 3 .03 wander through stores less, opting more and more to use their mobile phones and computers. EXTERNAL FACTOR EVALUATION (EFE) MATRIX THREATS Weight Rating Weighted Score 1.) Rivalry between Jollibee and McDonald’s .10 4 .40 2.) Changing government rules and .07 3 .21 regulations pressed the brands to adopt a greener approach 3.) High Number of Foreign Companies .07 4 .28 Entering the Fast Food Market vs. Local Brands 4.) Differences in culture of every nation .06 3 .18 EXTERNAL FACTOR EVALUATION (EFE) MATRIX THREATS Weight Rating Weighted Score 5.) Increasing consciousness about healthy diet .05 2 .10 6.) High cost in other nation .04 3 .12 7.) Availability of healthier options like ready-to- .04 2 .08 eat food 8.) Media for having reports that Jollibee is using .03 2 .06 earthworms in its beef patties to get customers 'addicted' EXTERNAL FACTOR EVALUATION (EFE) MATRIX THREATS Weight Rating Weighted Score 9.) Long-Term Recession .03 3 .09 10.) Philippine Government’s total ban on Labor .01 3 .03 Contractualization. Total 1.00 3.26 COMPETITIVE PROFILE MATRIX (CPM) JOLLIBEE MCDONALD’S KFC Critical Success Weight Rating Score Rating Score Ratin Score Factors g 1. Product Quality 0.15 4 0.60 2 0.30 3 0.45 2. Price 0.14 4 0.56 3 0.42 2 0.28 Competitiveness 3. Variety of Product 0.13 3 0.39 4 0.52 2 0.26 Line 4. Growth 0.11 4 0.44 3 0.33 2 0.22 5. Advertising 0.10 4 0.40 3 0.30 2 0.20 COMPETITIVE PROFILE MATRIX (CPM) 6. Number of 0.09 2 0.18 4 0.36 3 0.27 Locations (stores) 7. Financial position 0.08 3 0.24 4 0.32 2 0.16 8. Strategic 0.08 4 0.32 2 0.16 3 0.24 partnership and alliances 9. Customer Loyalty 0.07 4 0.28 3 0.21 2 0.14 10. Market share 0.05 4 0.20 3 0.15 2 0.10 Total 1.00 3.61 3.07 2.32 INTERNAL ASSESSMENT (COMPANY’S GROUP CORPORATE STRUCTURE) CORPORATE CULTURE • Through the years, JFC has formed its foundation from good business practices and strong core values of customer focus, excellence, respect for individuals, teamwork, spirit of family and fun, humility to listen and learn, honesty and integrity and frugality. • JFC believes that teamwork is much stronger than their solo efforts so they work together to achieve their objectives. • JFC’s workplace culture was their great secret to success. CORPORATE RESOURCES (4P’S) Product • The new product earns popularity and acceptance since its first launch as increasing amount of early adopters utilize the product, during its growth stage, innovations on products, like various differences and qualities are established as Jollibee tries to draw more customers. • Production for unsuccessful Jollibee products ceases as new products are manufactured and established as a replacement for the previous product. • Jollibee's core product is its fried chicken CORPORATE RESOURCES (4P’S) Place • Initially, the company focused on reaching communities with a large Filipino population to capitalize on its brand awareness, targeting markets where there were substantial numbers of overseas Filipino workers. • The company’s international expansion strategies focused on markets where management believed it’ could successfully develop the Jollibee brand and put up the supply chain to support the critical mass of stores in the selected markets. CORPORATE RESOURCES (4P’S) Promotion • Brand Name, Logo and Mascot • TV Commercials • Print Ads • TV Show • Celebrity Endorsers • Events • Website • Social Media • Competitions CORPORATE RESOURCES (4P’S) Price • Product Bundle Pricing • Competition Based Pricing • Price Adjustment • Discount based on time of purchase • Discriminatory pricing CORPORATE RESOURCES (4P’S) Target Market • Jollibee was conceived as a fast-food products outlet of high quality but reasonable priced food products tailored especially for Filipino. • This first mover advantage gave edge to Jollibee which eventually leaded them to get the market leader position in Philippine. • JFC’s marketing philosophy was based on being closer to Filipino families than its competitors. • The Jollibee chain had tailored its marketing strategies to suit the Filipino culture and lifestyle. • Building on its success in the Philippines, Jollibee turned its sights overseas. Initially, the company focused on reaching communities with large Filipino population to capitalize on its brand awareness, targeting markets where there were substantial numbers of “OFWs” HUMAN RESOURCE • Skills Enhancement and Education Development for Students (SEEDS) • To help qualified students pursue post-secondary education through the provision of financial assistance. • To enable students to acquire job competencies • Safety -JFC Food Safety Program • Employee Relations- • Thousands of Jollibee part-timers, paid on an hourly minimum wage basis, have been able to finish their college education; many of these graduates have even applied to the firm for regular employment. • The company also organizes monthly social gatherings • Jollibee takes pride in its harmonious relations with the union of rank- and-file employees HUMAN RESOURCE • Compensation and Benefits • The company provides scholarship in some of the selected schools for those who cannot afford to go to school. • The employee is given a 10000 per semester and in return the employee will work the store for 4 hours or more. • Training and Development • JFC Learning Web PRODUCTION OR OPERATIONS • Production starts with the demand forecast from the stores, with planning done as early as two months ahead. • The three biggest and busiest production lines are those from frozen patties, hamburger buns and sauces. • For Jollibee’s best-selling burgers, high-grade beef from Australia, New Zealand and Brazil are ground, marinated, formed and frozen in the semi-automated frozen patty. Blast freezers at –35’C and metal detectors ensure the freshness and safety of every finished product. • Through fully-automated dough mixing, forming, baking, cooking and packaging, Jollibees’s burger buns go through some two kilometers of conveyor belts, making Zenith’s integrated bun production line one of the largest in the country. PRODUCTION OR OPERATIONS • The Jolly Spaghetti sauce, Palabok Fiesta sauce, soup bases and pie fillings come from the sauce production line. With bulk sautéing equipment and steam kettles, it churns out enough sauce to easily fill up two Olympic-sized pools in one day! • Flavoring the best-selling Chickenjoy, breast tapa and tocino happen in the computer-aided marinating line. Zenith preserves the quality of Chickenjoy, by dressing and marinating, then freezing the chicken cuts-up as soon as they come. • Jolly Hotdogs, meatballs, sauces and spiced ham are processed in the commissionary’s own meat processing line. • The pipeline churns out Jollibee’s twin-flavored pies, which are also shipped to Jollibee stores abroad to satisfy overseas Filipinos’ craving for the popular dessert treat. • Jollibee has a commissary system which includes production line for the following: • Frozen Patty Line • Sauce Line • Meat Processing Line • Pie-Line • Dry Blending Line • Bakery Line • Marination Line • Shanghai Line • Meat and Vegetable Preparation Line RESEARCH AND DEVELOPMENT • Good Manufacturing Practices (GMP) • Hazards Analysis and Critical Control Points (HACCP) MANAGEMENT INFORMATION SYSTEM • Jollibee Food Corporation information technology plays significant role in increasing savings and improving productivity where they invest to build a shared services center key where the Information technology enables to support functions of Jollibee. ACCOUNTING AND FINANCE 2014 2015 2016 1. LIQUIDITY RATIO Current ratio 1.26 1.29 1.27 Quick ratio 0.95 1.03 1.02 2. LEVERAGE RATIOS Debt to total assets 48.12% 50.96% 52.86% Debt to equity ratios 92.74% 103.94% 112.15% Long term debt to equity ratios 24.75% 37.59% 42.63% Times interest earned ratios 70.88 55.57 54.66 3. ACTIVITY RATIOS Inventory turnover 15.47 14.48 16.19 Fixed assets turnover 6.86 6.87 6.92 ACCOUNTING AND FINANCE 2014 2015 2016 Total assets turnover 1.59 1.48 1.49 Accounts receivable turnover 15.65 14.33 24.52 Average collection period 23.33 25.47 14.88 4. PROFITABILITY RATIOS Gross profit margin 19.65% 18.67% 19.53% Operating profit margin 12.54% 13.08% 13.54% Net profit margin 6.37% 5.27% 5.60% Return on Asset 10.14% 7.79% 8.32% Return on equity 19.55% 15.89% 17.66% Basic earnings per share 5.07 4.62 5.75 Diluted earnings per share 4.95 4.53 5.64 Price earnings ratio 43.3 40.47 35.98 ACCOUNTING AND FINANCE Growth ratios • Worldwide system wide sales grew by 14.1%, JFC’s highest organic growth in at least a decade driven by an 8% growth in same store sales and the highest store network expansion • Net income attributable to equity holders of the Parent Company for the full year of 2016 amounted to Php6.2 billion, 25.1% higher compared to 2015. • Profit margin increased from 4.9% in 2015 to 5.4% in 2016 • net income translated to earnings per common share of Php5.747 in the entire year, an increase of 24.4% compared to 2015. • Dividend per share 2014 -51.19% 2015 7.93% 2016 5.08% INTERNAL FACTOR EVALUATION (IFE) MATRIX STRENGTHS Weight Rating Weighted Score 1. Strong brand name, image, reputation 0.12 4 0.48 2. It is a stronghold of heritage and monument of 0.10 4 0.4 Filipino victory. 3. Option to deliver food to houses, offices and other 0.09 4 0.36 establishments 4. Cost saving/ systematic food preparation 0.07 4 0.28 5. Creative marketing programs. 0.06 4 0.24 INTERNAL FACTOR EVALUATION (IFE) MATRIX STRENGTHS Weight Rating Weighted Score 6. Efficient manufacturing and logistics facilities. 0.05 4 0.20 7. Quickest Serving time among other food industry 0.04 3 0.12 8. Competent/ well-trained staff. 0.03 4 0.12 INTERNAL FACTOR EVALUATION (IFE) MATRIX THREAT Weight Rating Weighted Score 1. Unhealthy food image; the food is abundant in trans- 0.10 2 0.2 fat. 2. Minimal exposure to Asian market. 0.09 2 0.18 3. Lack of supply and sanitation 0.08 2 0.16 4. Improvement in IT System 0.07 1 0.07 INTERNAL FACTOR EVALUATION (IFE) MATRIX THREAT Weight Rating Weighted Score 5. Weak customer service in some branches 0.05 2 0.10 6. Limited menu offered to consumers. 0.03 2 0.06 7. Saturated nature of the fast-food business. 0.02 2 0.04 Total 1 3.01 SWOT-TOWS MATRICES STRENGTH-OPPORTUNITIES STRATEGIES • Extend delivery services on market segments/areas not yet covered. (S3, O2) • Allow the company to cater the Filipino taste to an unfamiliar market (S2, O6) • Develop the skills and competencies of Filipino youth to enhance their employability (S8, O7) SWOT-TOWS MATRICES WEAKNESS-OPPORTUNITY STRATEGIES • Emphasize on the halal way of earning on news and advertisements. (W2, O3) • Create stores that follow the trend of urban lifestyle. (W2, O6) • Increase network expansion (W2, O9) SWOT-TOWS MATRICES STRENGTH-THREAT STRATEGIES • Offer products that best suits the Filipino taste. (S2, T1) • Should produce a product that is viable to other countries. (S2, T4) SWOT-TOWS MATRICES WEAKNESS-THREAT STRATEGIES • Letting the foreigners experience “Filipino Hospitality” (W2, T1) • Coming up with a healthier menu that contains lesser trans fat. (W1, T5) • Open stores on countries that has low cost investments.(W2, T6) STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX INTERNAL STRATEGIC Rating EXTERNAL STRATEGIC Rating POSITION POSITION Financial Position (FP) Stability Position (SP) Cash Flow 5 Rate of Inflation -2 Working Capital 4 Demand Variability -1 Earnings per share 3 Barriers to entry into market -2 Return on Investment 5 Competitive pressure -1 Inventory Turnover 4 Risk involved in business -5 Price range of competing -2 products FP Average 4.2 SP Average -2.17 STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX Competitive Position (CP) Industry Position (IP) Market Share -1 Profit Potential 5 Customer Loyalty -2 Growth Potential 5 Product Quality -1 Ease of entry into market 6 Technological Know-How -3 Financial Stability 5 CP Average -1.75 IP Average 5.25 FP + SP 2.03 CP + IP 3.5 STRATEGIC POSITION AND ACTION EVALUATION (SPACE) MATRIX INTERNAL-EXTERNAL (IE) MATRIX GRAND STRATEGY MATRIX QUANTITATIVE STRATEGIC PLANNING (QSPM) Open Jollibee Expand distribution Acquire a start-up branches overseas channels on rural foreign brand that areas near NCR has great market potential WEIGHT AS TAS AS TAS AS TAS OPPORTUNITIES 1. Net National Disposable Income amounted to .10 2 .20 3 .30 2 .20 Php 16.2 Trillion in 2016, an increase of 8.4% from 2015. 2. The unemployed persons numbered about 2.4 .08 - - - - - - Million resulting to an annual unemployment rate of 5.5% in 2016. 3. Consumers trends are changing as people .07 1 .07 2 .14 1 .07 wander through stores less, opting more and more to use their mobile phones and computers. 4. Total out-of-school children and youth .06 - - - - - - (OSCY), 87.3% were 16 to 24 years old, 7.7% were 12 to 15 years old and 5% were 6 to 11 years old. QUANTITATIVE STRATEGIC PLANNING (QSPM) 5. Growing urban lifestyle .05 4 .20 4 .20 2 .10 6. Low prices on meats, vegetables and other .04 1 .04 3 .12 3 .12 commodities. 7. Chicken was considered as one of the major .04 3 .12 3 .12 3 .12 meat product with about 62% to 63% of households reporting its consumption. 8. Shoppers’ increasing desire for convenience, .03 3 .09 3 .09 3 .09 quick preparations and ready to eat meal options. 9. Growing millennial population. .02 4 .08 4 .08 4 .08 10. Global social media use has increased by 21%, .01 3 .03 3 .03 2 .02 reaching 2.8 billion users globally. QUANTITATIVE STRATEGIC PLANNING (QSPM) WEIGHT AS TAS AS TAS AS TAS THREAT 1. Rivalry between Jollibee and McDonald’s .10 - - - - - - 2. Growing competition and lower profitability as .07 - - - - - - well as Government Regulations and increase in labor cost and interest rates 3. High Number of Foreign Companies Entering the .07 4 .28 4 .28 3 .21 Fast Food Market vs. Local Brands 4. Differences in culture of every nation .06 3 .18 3 .18 3 .18 5. Increasing consciousness about healthy diet .05 3 .15 3 .15 2 .10 QUANTITATIVE STRATEGIC PLANNING (QSPM) 6. High cost in other nation .04 4 .16 3 .12 3 .12 7. Availability of healthier options like ready- .04 - - - - - - to-eat food 8. Media for having reports that Jollibee is using .03 - - - - - - earthworms in its beef patties to get customers 'addicted 9. Long term recession .03 - - - - - - 10. Philippine Government’s total ban on Labor .01 - - - - - - Contractualization QUANTITATIVE STRATEGIC PLANNING (QSPM) STRENGTH WEIGH AS TA AS TA AS TAS T S S 1. Strong brand name, image, reputation. .12 4 .48 4 .48 3 .36 2. It is a stronghold of heritage and monument of .10 4 .40 4 .40 2 .20 Filipino victory. 3. Option to deliver food to houses, offices and .08 - - - - - - other establishments 4. Cost saving/ systematic food preparation .07 - - - - - - 5. Creative marketing programs .06 4 .24 4 .24 4 .24 6. Efficient manufacturing and logistics facilities. .05 - - - - - - 7. Quickest Serving time among other food .04 - - - - - - industry 8. Competent/ well-trained staff. .03 - - - - - - QUANTITATIVE STRATEGIC PLANNING (QSPM) WEAKNESSES WEIG AS TAS AS TAS AS TAS HT 1. Unhealthy food image; the food is abundant in .12 4 .48 4 .48 4 .48 trans-fat. 2. Minimal exposure to Asian market. .07 4 .28 3 .21 4 .28 3. Lack of supply and sanitation .06 - - - - - - 4. Improvement in IT System .08 - - - - - - 5. Weak customer service in some branches .04 - - - - - - 6. Limited Menu offered to consumers. .03 3 .09 3 .09 3 .09 7. Saturated nature of the fast-food business. .05 3 .15 3 .15 2 .10 TOTAL 1 3.92 3.86 3.16 STRATEGIES-PROGRAMS/ACTIVITIES-TIMEFRAME- RESOURCES (SPATRES) OBJECTI- STRATEGIES PROGRAMS/ ACTIVITIES TIME RESOURC PERSON IN VES FRAME ES CHARGE BUDGET Open Jollibee -Build stores on -Form a research and 5 years $500,000 - Network branches locations with a development team to find the 1,000,000 Developmen overseas large number of right target market per store t Filipino communities. -Study Cultural Differences Quality Management -Launch stores with -Understand the Country’s menus that Political Climate Information combines the Management original taste of -Make survey were filipino jollibee with a twist people lives in a specific Global Real that satisfies the geographic area. Estate consumer’s appetite -Seek Legal Advice Marketing -Develop creative Department promotional videos -Seek Local Guidance to attract consumers through television -Increasing web advertisement and social medias.