...Jollibee Foods Corporation Charles A. Rarick, Ph.D. Gideon Falk, Ph.D Casimir Barczyk, Ph.D. Purdue University Calumet CASE SYNOPSIS The Pilipino Company, Jollibee, is imitating McDonald’s in some ways but has its own twist on offering unique products that emphasize local spices and local taste preferences. This fast growing restaurant chain has benefited from the increased demand for fast food in East Asia and has developed a unique business strategy. This case examines Jollibee’s success and how the company is successfully competing with McDonald’s. With its rapid growth, the company is now ready to expand to the rest of the world. INTRODUCTION Jollibee Foods Corporation, known distinctively by its red and yellow bumble bee mascot, operates a number of concept restaurants in the Philippines and beyond. From its core business, a McDonald's-like restaurant, Jollibee has expanded into a pizza chain, fast food Chinese restaurants, bakeries, breakfast bars, and a tea house. The company competes well with multinationals in the Philippines, and has begun a large expansion into the international market, including China and the United States. Jollibee, the original flagship brand, together with its additional product concepts, dreams of becoming a global powerhouse in the restaurant industry. THE PHILIPPINES The Republic of the Philippines is a country in Southeast Asia consisting of over 7,000 islands. The Philippines was “discovered” by Ferdinand Magellan in...
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...RESEARCH on SUCCESS and MANAGEMENT of ‘JOLLIBEE FOODS CORPORATION’ and its SUBSIDARIES Prepared By: Date: May 3, 2012 Table of Contents 1. INTRODUCTION 3 2. ANALYSIS OF THE COMPANY’S STRATEGIES and MANAGEMENT 4 a. The Financial Statistics 4 b. The Problems and Challenges 5 3. EVALUATION & CONCLUSION 8 WORKS CITED 10 1. INTRODUCTION Jollibee Food Company was established after the oil crisis hit the ice-cream prices since the family company was mainly based on ice-cream production and sales. After Jollibee, one member of the family, decided to diversify into sandwiches; the product started to gain popularity. “The Tans’ hamburger, made to a home-style Philippine recipe developed by Tony’s chef father, quickly became a customer favorite. A year later, with five stores in metropolitan Manila, the family incorporated as Jollibee Foods Corporation.” (Bartlett, 2001) The rapid increase in the number of stores after such a short period indicated how successful Jollibee’s decision has been. In three years, the number stores were doubled and Jollibee had 11 stores. However, together with this success, the problems also started to arise. The entrance of McDonalds into Philippines market was one of the main problems that Jollibee had to deal with. In 1986, when this battle was finally over, Jollibee had reached the number of 31 stores indicating the success of the company’s strategy. After the success of company in the country was proved...
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...ANASTACIO B. AQUINO Instructor EXECUTIVE SUMMARY Jollibee Foods Corporation’s (“JFC” or the “Company”) was founded by Tony Tan Caktiong and his family. At first it started as an ice cream parlor until the 9th of January, 1978 wherein it officially became an American- style fast food chain with Filipino- influenced dishes. The corporation’s core business is the development, operation and franchising of its quick-service restaurant brands. Food quality, service, price-value relationship, store location and ambience, and efficient operations continue to be critical elements of the Company’s success in the quick-service restaurant industry. Jollibee Foods Corporation (JFC) is the Philippines’ largest Food Service business and is continuously expanding its presence in foreign countries. It has a System Wide Sales of P117.9 billion and a Net Income of P5.4 billion in 2014. JFC has a total store network of 2,951 stores worldwide as of March 31, 2015. Jollibee Foods Corporation has grown brands that bring delightful dining experience to its customers worldwide, “Spreading the joy of eating to everyone.” This three year marketing plan for Jollibee has been created to increase sales in order to have additional funding for growth globally and to inform employees of the company’s current status and direction. This marketing plan is focused in extending their product line as well as adding new product lines. Over the next three years, Jollibee can increase its...
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...Jollibee Food Corporation Milestones / History 1975 * Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao. This is later to become the 1st Jollibee Outlet 1979 * Spaghetti Special is introduced * 1st Franchise owned store opens at Ronquillo Sta. Cruz. 1985 * Jollibee becomes the market leader of the fastfood industry. * Breakfast Joys are introduced. * Langhap-Sarap awarded most effective ad campaign in the food category during the 9th Philippine Advertising Congress. 1992 * Jollibee sales hit the P3.365 billion. * Started using frozen patties for its popular hamburgers. * Improved softserve ice cream line by offering fruit flavored ice cream. * Acquired 73% if the Hamburger segment. * Opened another store in Jakarta, totaling to 2 stores in Indonesia. * Jollibee have 112 stores nationwide. * Maintained its advantage over its competitors by acquiring more than 50% share of the fast food industry. 2004 * The Chairman and Chief Executive Officer of the company, Mr. Tony Tan Caktiong was named the Ernst and Young’s 2004 World Entrepreneur of the Year 2008 * 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. * JOLLIBEE bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence...
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...A Research Study on How Jollibee Foods Corporation Turned a Simple Manila Business College Student into a Professional Individual Ramos, Abegael O. BS-HM Table of Contents Title Page ....................................................................................................................... i Table of Contents …....................................................................................................... ii Acknowledgement ….................................................................................................... iii Chapter I. The Problem and Its Background Introduction …............................................................................................................... Background of the Study …............................................................................................ Conceptual Framework ….............................................................................................. Statement of the Problem ............................................................................................ Hypothesis ….................................................................................................................. The Importance of the Study ……………………………………………………………………..….……….. Scopes and Limitations ….............................................................................................. Definition of Terms …...........................................................................
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...JOLLIBEE FOODS CORPORATION Abstract This case study examines the rapid growth of one of the most successful companies in the Philippines, the fast food giant, Jollibee Foods Corporation. In this paper, detailed information regarding the company’s history and the measures it took to establish itself in its initial years was used in the in depth analysis of the company’s strategic plan. This also includes an analysis of their vision-mission statement as well as the analysis of their external environment using the PESTEL Framework. Company History Overview Jollibee Foods Corporation or JFC is centered on developing, operating and franchising fast food stores under the trade name Jollibee. The company operates on 3 segments: Food Service, Franchising and Leasing. The Food Service segment engages in the operations of quick service restaurants and the manufacture of food products to be sold to Jollibee Group-owned and franchised QSR outlets. The Franchising segment is involved in the franchising of the Jollibee Group's QSR store concepts. The Leasing segment leases store sites mainly to the Jollibee Group's independent franchisees. The company was founded by Tony Tan Cationg in 1975 and is headquartered in Pasig City, Philippines. Currently Jollibee is the largest fast food chain in the Philippines, operating over 750 stores. 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...
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...I. -----------Case Summary Ms. Genee Lopez, Assistant Vice President for Franchising scanned her planner to check her appointments for the day when her secretary, Liza, came in her office carrying a folder containing information about the company’s franchise applicants. She reviewed the proposals and was faced by the question “ Who are we supposed to award the franchise to?” II. Statement of the Problem and Objectives How will Genee Lopez evaluate the proposals of Mr. Artiaga and Mrs. Ng given that they would like to open a store at same locations? Objectives: * To examine and extract the different feasibility factors of each proposal given the fact that the two proposals are eyeing on one location or block. * To identify the different distribution/ site selection strategies applicable to the case scenario and connect it to established theories. * To scrutinize and review the franchise process of Jollibee Foods Corporation * To make recommendations on who to give or award the franchise to III. Industry Data and Analysis ( USE Porter’s 5 forces) Fast food or quick service restaurants have come a long way since 1921 when White Castle, the first fast food hamburger chain, sold burgers at five cents apiece and ended its first day with a US$3.75 profit. Arguably, A&W was the first fast food restaurant having sold the first frosty mug of A&W root beer for one nickel in 1919. In the Philippines, Tropical Hut Hamburger is reputedly the first...
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...Jollibee Foods Corp.: International Expansion Executive Summary Jollibee was a company originally established by the Tan family in 1975 as a family-owned ice cream parlor in the Philippines, but was soon forced to change its market caused by the oil crisis of 1977 - a factor which would have inherently caused the price of ice cream to double. Already established in the food industry and having overcome the initial barriers faced by those entering it, the Tan family successfully diversified the company to selling sandwiches. From that point, Jollibee began expanding their success by launching a total of five stores by 1978, founding what we see today as Jollibee Foods Corp. 1. How was Jollibee able to build its dominant position in fast food in the Philippines? What are the sources of competitive advantage was it able to develop against McDonalds in its home market? There were several contributing factors in Jollibee’s rise to a dominant position in the Philippines fast food market. Because they were already doing business in the food industry, the entry barrier was low in making the shift to fast food. Additionally, the recipe was developed locally using culturally desirable ingredients destined to satisfy the taste buds of the patronage. The brand was quickly developed using the “Five F’s” that were Jollibee’s business philosophy: Flavorful Food, Fun, Flexibility, and Families. Jollibee’s ability to offer all of these benefits at an affordable price led the company...
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...POLYTECHNIC UNIVERSITY OF THE PHILIPPINES Maragondon Branch Maragondon Cavite A NARRATIVE REPORT ON PRACTICUM 1 STORE PRACTICUM JACINTO E. ARAYATA JR. JUNE 09, 2014 JOLLIBEE TANZA ANTERO A. SORIANO HIGHWAY, DAANG AMAYA II TANZA, CAVITE A Narrative Report Submitted to the Faculty Of the Polytechnic University of the Philippines Maragondon Branch Maragondon, Cavite In partial fulfillment of the requirements for the Course in Bachelor of Science in Business Administration Major in Human Resource Development Management JACINTO E. ARAYATA JR. June 09, 2014 Republic of the Philippines Polytechnic University of the Philippines Maragondon Branch Maragondon, Cavite COLLEGE OF BUSINESS ADMINISTRATION Narrative Report of : JACINTO E. ARAYATA JR. Title : PRACTICUM EXPERIENCES AT JOLLIBEE TANZA APPROVED: PROF. CARMELITA M. CAULI ____________________ Practicum Professor Date APPROVAL SHEET A narrative report, entitled “A narrative report in on the job training” undertaken at Jollibee Foods Corporation located at Tanza, Cavite. Prepared and submitted by Jacinto Arayata Jr. in partial fulfillment of the requirements for Bachelor of Science in Business Administration Major in Human Resource Development Management, is hereby endorse for approval. Accepted and approved in partial fulfillment of the requirements for...
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...Jollibee Foods Corp.: International Expansion Executive Summary Jollibee was a company originally established by the Tan family in 1975 as a family-owned ice cream parlor in the Philippines, but was soon forced to change its market caused by the oil crisis of 1977 - a factor which would have inherently caused the price of ice cream to double. Already established in the food industry and having overcome the initial barriers faced by those entering it, the Tan family successfully diversified the company to selling sandwiches. From that point, Jollibee began expanding their success by launching a total of five stores by 1978, founding what we see today as Jollibee Foods Corp. 1. How was Jollibee able to build its dominant position in fast food in the Philippines? What are the sources of competitive advantage was it able to develop against McDonalds in its home market? There were several contributing factors in Jollibee’s rise to a dominant position in the Philippines fast food market. Because they were already doing business in the food industry, the entry barrier was low in making the shift to fast food. Additionally, the recipe was developed locally using culturally desirable ingredients destined to satisfy the taste buds of the patronage. The brand was quickly developed using the “Five F’s” that were Jollibee’s business philosophy: Flavorful Food, Fun, Flexibility, and Families. Jollibee’s ability to offer all of these benefits at an affordable price led the company...
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...Case Analysis Banco de Oro Universal Bank and Jollibee Foods Corporation Submitted by: Tobias, Mydee Francheska Lastimoza, Trixia Guevarra, Jamie Carpio, Joana Marie Submitted to: Prof. Rodolfo Acosta Banco de Oro Universal Bank I. PROBLEM IDENTIFICATION How would Banco de Oro Universal Bank (BDO) be able to cope up with the increasing demand and need of its customers? II. AREAS OF CONSIDERATION Banco de Oro Universal Bank (BDO) originally named as Acme Savings Bank was acquired by the Sy Group of Companies owned by Henry Sy in November 1976 to add up to its mall business. In the late 1990s and early 2000s, BDO entered into a partnership with Assicurazoni Generali, Jerneh Asia Berhad, Pilipinas Life Assurance Company and Generali Pilipinas Insurance Company for the purpose if expanding its insurance services. It’s merging with Dao Heng Bank's Philippine subsidiary further boostes its branches from 108 to 120. United Overseas Bank sold 66 out of its 67 subsidiary branches in the Philippines to BDO of which 31 were converted inti BDO branches, four were relocated and the other 31 were consolidated into existing BDO branches. In May 2005, UOB allowed BDO to absorb their branch banking business through an agreement and on the same month, BDO already has 185 branches which were all strategically placed in the Philippines' major industrial and commercial regions and positioned in key business and commercial centers including SM...
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...Executive Summary Founded in 1975, Jollibee Foods Corporation became one of the biggest restaurant chains in the Philippines. Jollibee offered American style fast food that was prepared according to Filipino taste. Jollibee became a sensation in the Philippines and a regular destination for the locals. However, Jollibee decided to go international, with hopes of expanding fast food operations into Asia. This analysis explains how competition influenced Jollibee’s domestic and international strategy, which later transformed the company into a global company .The company faced serious challenges with their international expansion. While early growth was prosperous and plentiful, but challenges arouse included conflicts with individual franchisees and conflicts between corporate divisions. This analysis first details Tony Kitchner's three years as the head of Jollibee's International Department. Secondly, describes the situation and company climate in which Noli Tingzon steps into immediately after his promotion. Next, is a brief description of Jollibee's mentality of Internationalization Jollibee Foods tends to try and follow. Finally, in question four there is an analysis of the three investment options available for Noli Tingzon to pursue as well as a recommendation for future expansion. 1.) Tony Kitchner came to Jollibee in 1994 to take charge of the International Division, and it seemed that he was successful over his three year tenure. There was clear expansion and...
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...EXECUTIVE SUMMARY Jollibee Foods Corporation (JFC) is the parent company of Jollibee, a fast-food restaurant chain based in the Philippines. Among JFC's popular brands are Jollibee, Chowking, Greenwich, Red Ribbon, Manong Pepe's and its recently acquired local fast-food Mang Inasal. Since its inception, Jollibee has become an increasingly profitable fast-food chain with 1,921 (Jollibee 702, Chowking 406, Greenwich 221, Red Ribbon 215, Delifrance 23, Mang Inasal, Manong Pepe 15) store branches in the Philippines and 395 in other countries employing 29,216 workers. Including all its brands, JFC has 1,804 stores worldwide and total sales of more than Php 52 billion as of December 2010. Despite owning 52% of the total local Quick Service Restaurants, the competition with its rival firms is still stiff. The source of rivalry stems from price wars and marketing innovations. The rivalry is also centered on the KSFs (Key Success Factors) of the industry, which are good food, good service and reasonable pricing. Rivals are somewhat equal in capabilities and opportunities, thus making the competition stiffer. Moreover, standardization of service contributes to the intensity of rivalry. INTRODUCTION Fast food, also known as Quick Service Restaurant (QSR) is the term given to food that can be prepared and served very quickly. While any meal with low preparation time can be considered to be fast food, typically the term refers to food sold in a restaurant or store...
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...Summary………………………………………………………………………………3 Company History…………………………………………………………………………………3 Problem Statement………………………………………………………………………………..5 Human Resources Issues……………………………………………………………………...5 Operating Management Issues………………………………………………………………...5 Financial Issues…………………………………………………………………………..........6 Marketing Issues………………………………………………………………………............6 Supporting Arguments……………………………………………………………………………7 Industries Analysis…………………………………………………………………………….7 Fast Food Industry………………………………………………………………………… 7 Porter’s 5 forces model for JFC…………………………………………………………….....8 Firm Analysis………………………………………………………………………………….8 Alternatives Strategies…………………………………………………………………………...10 Choosing the Right Strategy…………………………………………………………….........10 Existing Strategy for Jollibee……………………………………………………………...….11 Recommendation for Decision making………………………………………………………… .11 Papua New Guinea………………………………………………………………………...… 11 Hong Kong…………………………………………………………………………..……… .11 California……………………………………………………………………………………. .11 Implementation Plan……………………………………………………………………………. 11 Human Resources Revamp plan………………………………………………………………12 Operations Revamp plan……………………………………………………………………....12 Financial Revamp Plan………………………………………………………………………..13 Marketing Revamp Plan………………………………………………………………………13 Appendix…………………………………………………………………………………………14 References………………………………………………………………………………………..15 Executive Summary Jollibee Food Corporation is a...
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...franchise 1) n. a right granted by the government to a person or corporation, such as a taxi permit, bus route, an airline's use of a public airport, business license, or corporate existence. 2) n. the right to vote in a public election. 3) v. to grant (for a periodic fee or share of profits) the right to operate a business or sell goods or services under a brand or chain name. Well-known franchise operations include McDonald's, Holiday Inns, Ace Hardware, Rexall Drug Stores, and Amway Distributors. 4) n. the right one has to operate a store or sell goods or services under a franchise agreement, as in "we have the Taco Bell franchise in our town." 5) adj. referring to a "franchise tax" which is placed on businesses (especially corporations) for the right to conduct business, as distinguished from a tax on property, income or profits tax. Source: http://legal-dictionary.thefreedictionary.com/Franchise+system According to Steven C. Michael Franchising, in which independent businesses operate under a shared trademark using a common production process, is used primarily by service businesses. It is an enduring and pervasive organisational form. As an organisational form, franchising has a large and visible presence in consumer industries such as restaurants, lodging, auto repair, real estate, hair styling, and specialty retailing, where it has captured typically thirty to forty percent of sales. Business services in which franchising is prominent include temporary...
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