Strategic Management
Case Study
Food Establishment: Jollibee
Submitted by:
Betonio, Ana Margarita
Catamora, Gwel Sanchez
Introduction
Jollibee is the largest fast food chain in the Philippines, operating a nationwide
network of over 750 stores. Its core business is the development, operation and
franchising of its quick service restaurant brands. It offers a wide variety of affordable
and delicious dishes and great tasting food prepared to satisfy customers of all ages
and from all walks of life. A dominant market leader in the Philippines, Jollibee enjoys
the lion’s share of the local market that is more than all the other multinational brands
combined. The company has also embarked on an aggressive international expansion
plan in the USA, Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei, firmly
establishing itself as a growing international QSR player. Jollibee was founded by Tony
Tan and his family with its humble beginnings as an Ice Cream Parlor which later grew
into an emerging global brand. At the heart of its success is a family-oriented approach
to personnel management, making Jollibee one of the most admired employers in the
region with an Employer of the Year Award from the Personnel Management
Association of the Philippines, Best Employer in the Philippines Award from Hewitt
Associated and a Top 20 Employer in Asia citation from the Asian Wall Street Journal.
Aside from promoting a family-oriented work environment, the brand’s values also
reflect on their advertising and marketing. Jollibee knows their target audience very well:
the traditional family and all communication materials focus on the importance of family
values, making Jollibee the number one family fast food chain in the Philippines and a
growing international QSR player Jollibee’s growth is due to its delicious menu line-up –
like its superior-tasting Chickenjoy, mouth-watering Yumburger and Champ hamburger,
and deliciously satisfying Jollibee Spaghetti -ably complemented with creative marketing
programs, and efficient manufacturing and logistics facilities. Jollibee is so well-loved
every time a new store opens, especially overseas, Filipinos always form long lines to
the store. It is more than home for them. It is a stronghold of heritage and monument of
Filipino pride. It was tried and tested giving a formula of delivering great tasting food,
adherence to world class operating standards and the universal appeal of the family
values the brand represents that are driving the expansion of Jollibee both locally and in
the overseas market.
Mission:
“To serve great tasting food, bringing the joy of eating to everyone.”
Vision:
“To be the dominant number one in Branded eat-out in the Philippines.”
The Market
Jollibee established their image to be for everyone. They focused on all the
market segments. They also marketed their product to all ages. Students, office workers
and even travelers are their target market. The price of the products of Jollibee are very
affordable to the lower class (not poor) to middle and upper class working person.
Developing an Aim for Business:
Strengths
o Variety of Food
Jollibee has a variety of menu and delicious menu in its list. A few
of its popular items are tasty Chicken joy, Yum burger that is mouth-
watering, hamburger, and Jollibee Spaghetti that is delicious.
The recipes used by the brand and tried and tested formula and are
popular for delivering great-tasting food that adheres to world-class
and excellent operating standards.
o Tasty Food and Quality Check
Jollibee’s food is so tasty and loved by all its customers. The
recipes used by the brand and tried and tested formula and are
popular for delivering great-tasting food that adheres to world-class
and excellent operating standards. This is the main strength of the
brand.
o A well-loved Brand
The main key to the brand’s success is its customer satisfaction. It
always focuses on its goals and never loses track of it. This has
developed into a brand that is the most preferred and most
recognized brand in the Philippines region.
o Open all Day
Jollibee is opened for 24 hours to serve its customers. While
opened during the whole day, the brand enjoys serving its
customers even during the early morning hours.
Weaknesses
o Fast-food not preferred by all
Many people always fear that fast food causes obesity. Hence, the
fact that the brand produces fast food would hinder people to
purchase from the store. This is a weak point for the brand to gain
more customers.
o More Money
The food products of Jollibee are high-priced that cannot be
afforded by many people. This is a big hindrance for many middle-
class people to get their products.
o Technology
The brand does not incorporate technology into its business. This is
a weak point as the reach ability is less due to this. Other
establishments have a good marketing strategy and maybe we are
lacking for that.
o Lack of Marketing
The brand has a lack in its marketing strategy. Due to this, it is not
able to reach many people. Also, when the brand is not reachable
to many people, the revenue is not generated.
Creating Business Objectives
Customer Focus
Excellence
Respect for the Individual
Teamwork
Spirit of Family and Fun
Humility to Listen and Learn
Honesty and Integrity
Frugality
To serve great tasting food, bringing the joy of eating to everyone.
We are the best tasting QSR. The most endearing brand that has ever been. We will
lead in product taste at all times. We will provide FSC excellence in every encounter.
Happiness in every moment. By year 2020, with over 4,000 stores worldwide, Jollibee is
truly a GLOBAL BRAND. (and the Filipino will be admired worldwide).
Marketing Strategies
New Products and Services
o The brand should venture into many new products that would differ in
taste. Also, it should include more vegetarian food as well. It should also
venture into providing new services to its customers like online service,
payment methods, etc.
Online Market
o The brand should venture into the online market to get more revenue. It
should expand its business online as going online is an ideal method to
get more customers.
o It should get tied up with various social marketing platform to market its
brand and attract more customers to purchase their brand.
International Expansion
o Jollibee should increase its reach at the global level. There are many food
lovers worldwide who love to try different kinds of food from various parts
of the world. Authentic food from a specific region is well-thought to give it
a try.
o Hence, it should try to expand its market at the global level as well.
Political and Economic Factors
Political Factor
Several governments take a careful initiatives to improve the health
of the people for example the restaurants as Jollibee are required to
indicate the nutritional factors for each meal they offer. The government
policies regarding the taxes can clearly affect the fast food business like
Jollibee. The company has to fulfill the requirements resulting from
establishment of any political alliances. Other political risks include the
violence, corruption, war and social unrest.
Economic Factor
The economic crisis in the Philippines brought changes in the
economy as the decrease in consumer demand and revenues and sales.
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 are other factors
which may have impact on the products and services of Jollibee.
Conclusions
Though Jollibee is already a leading in the fast food industry in the
Philippines, there are some strategies that they need to develop to gain more
customers and sales. Jollibee is surrounded by many competitors that have this
kind of strategy that help their establishment to have more sales and that is
having a 24 hours service. The Jollibee Corporation must think about having a 24
hours that will surely help them gain more sales.
Another, there are some components of the organization that need to be
given attention. One of the components is the employees who are part of the
organization and the representatives of the company they work for. Inappropriate
behavior towards customers, actions and response towards work is slow and
among new employees have attitude and behavior that could affect not only their
services to the customers but also to the organization. The organization must be
strict when it comes to hiring new employees to the organization. With these, the
organization may expect each employee to be at their best all the time as they
take the company standards set by the management to uphold the positive
image of the organization like Jollibee which is in the topping race in the fast food
industry.
References:
https://pdfcoffee.com/jollibee-foods-corporation-2-pdf-
free.html?fbclid=IwAR1u45Ayznha1gWhkprGU6CQXoCYIUSH-
WR_pmxQCMS9yt26AYCo_Gp0yd0
https://www.jollibee.com.ph/our-mission-vision-and-values/
https://freepestelanalysis.com/pestle-analysis-of- jollibee/?
fbclid=IwAR2r8jO8Mc_5py5YgHmQMZqu7XfzqkfSmUZC45DEgpqlrtudz
wnGgMGQH9g
https://managementglossary.com/swot-analysis-of- jollibee/?
fbclid=IwAR1rwTsEK6jjzIQOOtyO0ARnFmnlHIVup6JJxnDZmlH0WdVh
wXscM2Xewjo
https://nhobeelab.weebly.com/methods-of-strategy- implementation.html?
fbclid=IwAR1JK6laIWHc1voRSpwR4zIjsA7IDeJkfGTcSTD
wo7qvCaMhcdHQ7jQUW30
