Submitted To
Submitted To
Submitted To
Apelado, Ma Angelika Y.
Cutamora, Sheena Marie D.
Decena, Riezellyn
Dela Cruz, Christopher William
Submitted to:
Dr. Rommel Mansueto
Table of Contents
5.1 QSPM
5.2 Decision
5.3 Conclusion
5.4 Recommendation
Strength
Weaknesses
Opportunities
Threats
CHAPTER 1
VISION – MISSION
Jollibee is founded by Filipino – Chinese Tony Tan Caktiong and his family began as
two – branch ice cream parlor in 1975 at cubao offering hot meals and sandwiches.
The original company name was Jollibee then Mr. Lumba next reformed the name
Jolibe to Jolly Beeand made the two words form a single name Jollibee.
In 1975 Tony Tan and his brothers opened two Ice cream parlors in Manila,
Philippines.
In the same year they expanded their menu and began quick meals Soon they realized
that their revenue is more from the side orders
Jollibee Foundation envisions that every Filipino is able to access basic community
services and live a life defined by dignity, purpose and active participation in nation
building.
To be the Most Customer and Oriented Fast Food Chain offering a great food and
services to customer.
2. Product / Services – What are the firm’s major product and services?
6. Philosophy – What are the basic beliefs, values, aspirations, and ethical priorities
of the firm?
8. Concern for public image – Is the firm responsive to social, community, and
environmental concerns?
Yes/No Statement
Customers No
PESTEL ANALYSIS
The operations of Jollibee are affected by the government policies on the regulations of
fast food operations. Currently government are controlling the marketing of fast food
restaurant because of health concern such as cardiovascular and cholesterol issue and
obesity and among the young and children in the country. Government also control the
license given for open the fast food restaurant and other business regulation need to
follow such as for a franchise business.
The economic condition and growth of the country also is an important indicator to the
demand of products that Jollibee offered. As the food priced slightly above normal
foods, not many people will have the income range to consume the products. Moreover
if the economy is bad and income per capital is affected, the demand of Jollibee product
will certainly going down. On the other hand the good economy also means disposable
income is more and people can spend more on more expensive food and fast food
restaurant.
The social condition, being entering into any new region, the fast food company carries
out a careful analysis of the culture, religion and social values. Jollibee is therefore
required to provide Halaal products in countries like USA. Various marketing campaigns
have also been launched highlighting the healthy meal options at low cost with increasing
awareness among people. Jollibee is also providing financial assistance to various welfare
organization helping the needy children of the Philippines.
2.1.4 Technological Condition
The fast food restaurant, technology does not give a very high impact on the company
and it is not significant macro environment variables. However Jollibee should be
looking to competitors innovation and improve itself in term of integrating technology in
managing its operation. For example in inventory system, supply chain management
system to manage its supply, easy payment and ordering systems for its customers and
wireless internet technology.
The fast food restaurant are far from the green environmental approach. Huge carbon
emissions are involved in the entire process of fast food manufacturing. Jollibee like
many other food chains is therefore required to take part several environmental and
energy efficient initiatives as replanting trees and reduction in use of paper, computer and
electrical appliances.
The legal regulations regarding the franchising and copyrights in any state must be
adhered to carry out a successful business operation. The corporate law and tax regulation
drive the ways of conducting the business in certain region. The employment regulations
and labor laws on the other hand put pressure on Jollibee to meet up the employee rights.
With increasing obesity in the world due to the fast food consumption, various lawsuits
are also being filed in the countries like US.
Table 2.2 Opportunities and Threats
Opportunities Threats
Macro Environmental, our product and all of the other actors operate in a large macro
environment of forces that shape opportunities and pose threats to the company. Six
largely uncountable externals forces influence our products marketing activities.
Jollibee Foods Corporation Mr.Tan added the famous hamburger and hotdog sandwiches
to keep up with the changing taste and lifestyle of customer. Jollibee became the fast food
to go with its uniquely-flavored Filipino burgers, chicken, and sweetish spaghetti.
Item is readily available in many supplier. There is a surge in the availability of the
supplies. Switching cost is low.
2.2.3 Threats of Substitute
With so many firms in the quick service/burger industry, low switching cost, similar
products, and healthier options, the threat of substitute is very high.
Jollibee Foods Corporation continued to dominate the market. It contribute market share
of 57 percent while McDonald’s occupied 36 percent, and the rest was divided among
other hamburger chains like Wendy’s, Tropical Hut, and recent entrant Burger King.
The Matrix shows the collective Opportunities and Threats that are within the company.
They got the average of 3.29 .
CHAPTER 3
INTERNAL ANALYSIS
Jollibee Food Corp. never short change quality it uses high-tech machineries and food to produced
high grade products.
Jollibee Food Corp. are carefully produced collaborated with best staffs, materials and machines.
Individual Regional Business Units are able to achieve greater efficiency in the delivery of products
and services, quicker coordination, and more timely decision making due to this decentralizing.
Jollibee projects itself as being closer to Filipino families as compared to its competitors. There is
already widespread awareness locally that Jollibee is a local Filipino establishment, which in turn
appealed to the mass population whom felt more comfortable in a familiar setting.
Customers are the main asset of every business. Satisfying them will make them comeback and buy
more products. Jollibee Food Corp. as a Filipino fast food chain tailoring its menu towards the
Filipino taste, it positioned itself as the favorite destination for family outings as compared to its
similar competitors.
High technology plays a vital role in enhancing the operations of a company. For a company to stand
out from its rivals, investing on state-of-the art technology is essential. From the company stand point,
maximizing output from resources and achieving economies of scale are always the key objectives of
a company. Jollibee should leverage on deploying new technologies to enhance its operations
efficiency
3.2 Financial Analysis
Profitability
Gross Profit Margin 0.17 0.15
Growth Ratios
Current Ratio
Figure shows that the current ratio of 2015 was increased from 1.78 to 1.85 by 2016.
Jollibee Foods Corporation has a current ratio of 1.85. It generally indicates good short-
term financial strength.
Quick Ratio
Both 2015 and 2016 shows that Jollibee was able to meet its obligations with its liquid
assets.
Jollibee Foods Corporation has a quick ratio generally indicates good short-term financial
strength.
Leverage Ratios
Debt-to-Total-Asset Ratio
Jollibee debt to total asset ratio shows that a minimal reliance has complied.
Jollibee Foods Corporation’s long-term debt to total assets ratio increased from March
2017 (0.14) to March 2018 (0.20). It may suggest that Jollibee Foods Corporation is
progressively becoming more dependent on debt to grow their business.
Debt-to-Equity Ratio
Jollibee Foods Corporation’s Current Portion of Long-Term Debt & Capital Lease
Obligation for the quarter that ended in March 2018 was 358 Million Jollibee Foods
Corporation Total Stockholders Equity for the quarter that ended in March 2018 was 830
Million Jollibee Foods Corporation’s debt to equity for the quarter that ended in March
2018 was 0.46
Activity Ratios
Inventory-Turnover Ratio
Figure shows a fast paced inventory sold and replaced in 2015 and 2016.
Jollibee Foods Corporation’s Cost of Goods Sold for the three months ended in March
2018 was 545 Million Jollibee Foods Corporation’s Total Inventories for the quarter that
ended in March 2018 was 129 Million Jollibee Foods Corporation’s inventory turnover
for the quarter that ended in March 2018 was 4.24
Total-Asset Turnover
Three months ended in March 2018 was 662 Million Jollibee Foods Corporation’s Total
Aseset for the quarter that ended in March 2018 was 1,767 Million Therefore, Jollibee
Foods Corporation’s asset turnover for the quarter that ended in March 2018 was 0.38
Profitability Ratios
Figure shows that the current ratio of 2015 was increased from 0.17 to 0.15 by 2016.
Growth Ratio
Sales
2016 shows 25.32 in sales.
Net income
In 2015, 19.98 was shown in the figure increased in 2016 by 21.79
3.3 Internal Factor Evaluation Matrix
The matrix shows the collective strengths and weaknesses that are within the company.
The 2.16 average demonstrate that the entity has the capabilities decrease their
weaknesses through wide-raging utilization of their strengths.
CHAPTER 4
MATCHING STRATEGIES
10. Market Leader (S10-O7) Jollibee is the market 10. Product Innovation
in Fast Food leader in fast food chain it can also
Chain be the reason to have an
international expansion.
Strength of Jollibee are used to come up with a strategy to take advantage the
opportunities that are open for the company.
1. Labor Shortage (W1-O9) Use fast and advance 1. Home Meal Delivery
technology to prevent labor
shortage.
2. Lack of (W7-O10) Product innovation of 2. Cultural Diversity
Motivation the product and make it more
healthier by decreasing
presenvatives.
3. Customer (W3-O4) Make a survey for 3. Nearby Offices
Complaints comment or suggestion for the
customer complain.
4. Product (W4-O9) Use the advancement of 4. Local Cultural
Availability and technology to give or provide Tradition
Quality product availability and quality
research in order to help the
company’s existing problems.
5. High Employee (W5-O3) Ask the employee’s 5. Government
Turnover nearby location in their house to Regulation for Non-
decreased the turnover of the Usage of Plastic
employee’s.
6. Decentralize (W7-O6) Using agricultural good 6. Agriculture
Talent to make healthy foods and also to
Acquisition prevent unhealthy foods.
7. Unhealthy (W7-O3) Make some research to 7. Internal Expansion
Foods make the unhealthy food become
healthy in order to lessen the
customer complaints and to have
more customer.
8. Commissary (W4-O7) Make or expand the 8. Urban Development
Struggles international work place so that
their’s a lot of product that the
company can make.
9. Brands Under (W10-O9) Together with the help 9. Technological
the Jollibee of advance and fast technology it Advances
can help to get more information to
other countries.
10. Research for (W10-O9) Using highly 10. Product Innovation
Other Countries technologies and fast internet to
have more research for other
countries.
Jollibee strength are used to make the strategies to prevent the threats that the
company encounters.
High
3.0 to 3.99
The IFE
Total IV V VI
Weighted
Score Medium
2.0 to 2.99 Jollibee
VII VIII IX
Low
1.0 to 1.99
X-axis 4 + -2 = 2
Y-axis 5 + -3 = 2
Conservative FS Aggressive
Defensive ES Competitive
4.4 Grand Strategy Matrix
QUADRANT II QUADRANT I
TARGET
WEAK
STRONG
COMPETITIVE COMPETITIVE
POSITION POSTION
JOLLIBEE
A grand strategy matrix consists of a four-quadrant graph, similar to a SWOT matrix, that lists
strategic options for companies in either strong or weak competitive positions in industries
experiencing either rapid or slow growth.
4.5 Boston Consulting Group (BCG) Matrix
The Boston Consulting group’s product portfolio matrix (BCG matrix) is designed to help
with long-term strategic planning, to help a business consider growth opportunities by
reviewing its portfolio of products to decide where to invest, to discontinue or develop
products. It's also known as the Growth/Share Matrix.
4.6 Summary of Matrix
Forward Integration 0
Backward Integration 0
Horizontal Integration X 1
Market Penetration X X 2
Market Development X 1
Product Development X X 2
Concentric Diversification 0
Conglomerate Diversification 0
Horizontal Diversification 0
Joint Venture 0
Retrenchment 0
Divestiture X 1
Liquidation X 1
CHAPTER 5
Decision, Conclusion and Recommendation
5.1 QSPM
Srategic
Alternatives
Market Market
Critical Success Factors Weight Penetration Development
5.2 DECISION
Jollibee depends on high cutomer traffic and tight operations management. It offers great
service to the high volumes of people who patronize its outlets by functioning as a well-
oiled machine with close tabs on daily operations.
5.3 CONCLUSION
Jollibee is a very successful business that has been experiencing major growth. It’s
always consider applicants who have successful track record in the business, who have
good standing in the community, and who have excellent people-handling skills.
5.4 RECOMMENDATION
There should be only one recommendation to enhance athe company’s operations and its
growth or solving its problems. The decision that is being taken should be justified and
viable for solving the problems.