Running Head: JOLLIBEE SITUATION ANALYSIS 1

Assessment 1. Situational Analysis

Student’s Name: Kevin-Jay Ovejera

Student ID #: 00258734T

Institution of Affiliation: Torrens University

Date: 16/07/19

Worde count: 2000

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Contents

Executive summary - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3

Introduction - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4

Macro Environment - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6

Micro Environment - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 6

PESTLE Analysis - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -7

SWOT Analysis - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 9

SWOT analysis Implication- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10

Conclusion - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11
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Executive Summary

Jollibee Foods Corporation commonly known as (JFC) is a Filipino international chain of

fast foodstuff which it is headquartered in the Philippines. The corporation operated through

various business segment; Franchising, Leasing, and Food Service. The Food Package sector is

involved in the processes of the quick cafeteria as well as manufacturing of food merchandises to

be retailed to QSR franchised and Jollibee openings. The Franchising department is engaged in

franchising Jollibee Group collection models and the leasing department in leasing store site

predominantly to the Jollibee Group’s self-governing franchises. Upon the JFC flagship, the

brand has attained some of its contestants in the fast-food industry in the Philippines as well as

Greenwich pizza, Burger King Philippines, and Mang Inasal.

In January 2015, the brand had 3,000 more stores global with retail sales totalling 82.1

billion pesos. The potential customers of Jollibee composed of individuals, families, and the

youths since in the morning they have valued meals and coffee and also they can go to the

graveyard shift individuals. The corporation values family and children with superior value

where the mascot is appealing to the kids, and they usually gather towards it when it appears in

public. JFC knowns its target audience, and their communication material focuses on family

values. The main rival of JFC is Kentucky, McDonalds and Burger Kings. Therefore, the paper

will focus on analyzing the critical success factor responsible for JFC, the political, economic,

social technology and demographic has impacted the organization, it will also explore the

connectedness with its strength, weakness and opportunities and threats to the corporation.
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Introduction

Objectives:

To recognize JFC competitor advantage over their rival especially McDonalds

To study if the low-cost operation is responsible for JFC success?

To analyze JFC rival consumers?

To examine the market concentration in the Philippines?

Literature Review:

The corporation specializes in the local market serving nearly all consumers. The

company values both families and children with an appealing mascot. The satisfaction of

consumers has always been a mission of Jollibee. Also, Jollibee is located near universities and

school where their target audience are faculty members and students (Christian and Geriffe,

2010). The critical success factor for JFC is identifying a country that will guarantee the success

of their corporation to achieve its mission and vision. Along the highways, the corporation

serves both tiring and long travelling consumers. According to Porter's theory, suppliers power,

competition, menace entry, and replacement as well as the power to purchase influences success

of an organization.

JFC has to identify its rivals concern and the type of merchandise and services they are

providing to their consumers as well as the competitor approach they implement to be successful.

The corporation also needs competent staff personnel and resources to bring forth merchandises

for their customers. It is imperative for the organization to value consumers for they influence

the net income of the organization (Ofreneo et al, 2012). Jollibee managed to offer affordable
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serves and good that made their brand name eventually gain popularity. The threat of

substitution id reduced and also the capability of consumers to shift to another brand.

Additionally, the bargaining power of suppliers is low, and since a corporation depends on

consumers taste and preference, they have to suit their needs.

The marketing strategy of Jollibee was based on being near to the families of Filipino

instead of its competitors. The wide perception employed was that the Filipino had captured the

unique taste. Additionally, the business concentrated on satisfying its customer while McDonalds

and KFC are spreading their resource to worldwide food chains.

Through other potential partners, Jollibee has expanded its financial consolidation and

help in superfoods expanding in various nations. Through their joint venture, the corporation has

established a capital raising activities that help to market their business. Therefore, partnering

with potential fast-food strengthens the marketing strategy of JFC and so reaching more people

in Australia.

The government policy on regulating fast foodstuff is affecting JFC operations. The

regulation is to monitor health worries of cardiovascular and cholesterol issues in the society as

well as protecting consumers. Growth and economic conditions are indicators of product demand

of Jollibee, and so the corporation has to adhere to foreign rules to continue with the business.

The company has to provide quality services to have an efficient market network and implement

technology to manage their business efficiently. The Caktiong values ought to ensure that legal

protection to data privacy is provided.

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In this report, analysis for the external environment using PESTLE will be explored and

at the same internal environment. A SWOT analysis will also be carried out and discuss its

implications.

Macro Environment

Economic;

Philippine is considered the 4th largest economy in purchasing power (IMF, 2009).

Jollibee ensures that their product has an affordable price pattern for consumers. Corporation

ought to be careful in serving budget-friendly meals to their consumers which captures more

customers due to pricing and taste of their meals.

Demographic:

According to Jollibee's website, the corporation engages in a market share of 50% with a

population estimated to be 92 million. Children are the targeted market of the Jollibee Food

Corporation. They like to dine anytime which is an advantage for JFC.

Culture:

Even though JFC cannot meet the taste of each nation, it has captured the taste of locals

that JFC is part of Filipino culture. They have incorporated recipe line up to avoid cultural and

religious crisis and as a result, they use Halal approved recipe to avoid conflicting with Islam.

Micro Environment

Competitors:
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Even though McDonald is undisputed market leader, JFC is leading in the quick-service

cafeteria in the Philippines. It is imperative to note that Jollibee has taken every local food in the

Philippines which suits a particular taste in Filipino.

Distribution:

Jollibee has enjoyed significant growth since its inception. The corporation has been

establishing new stores worldwide each year. Having standardized material and recipe from JFC,

make sure their services are of quality standards.

Media:

The corporation has a good relationship with media companies in the Philippines. As a

result, the corporation has been experiencing fair coverage for their organization. The media has

also increased the credibility of JFC allowing a faster spread of information than advertising.

PESTLE Analysis of Jollibee

Political Factors that Influences JFC

The operation of JFC is immensely affected by regime policy on fast foodstuff regulation.

The government appears to be regulating fast foodstuff on the market due to health worries such

as cholesterol as well as cardiovascular as well as obesity, which affects many young children. It

is imperative to note that the government also controls the licensing of establishing fast food

cafeteria and also other regulations on Franchise Corporation. In light of the above, a good

relationship with the government ought to be vital since it gives the mutual benefit that

influences the success of a corporation in foreign nations.

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Economics Factor

As a corporate entity, JFC needs to experience a lot of variable in economic outside its

macro environment. When JFC is dealing with the sourcing of material globally, McDonald's

ought to be aware of the currency exchange and supply since it sources material from foreign due

to the little amount from locals. On the other hand, Jollibee faces regulations on profit and other

taxes from restaurant and entertainment services. Therefore, for Jollibee to continue their

operations will have to adhere to the rules. The growth and economic condition of a particular

nation is an indicator of how a product offered from Jollibee is demanded. A good economy

would imply people’s willingness to spend more on fast food, which is an advantage for Jollibee.

Social Factor

While many people are financially able to eat expensive fast food outlets, they have high

expectations; such as having quality service and a convenient restaurant from others. According

to Jollibee, there is a broad population with access to their essential services, and media outlets

have played an essential role in impacting the JFC opinion where Caktiong values to build

efficient marketing network and also the demographics of JFC Caktiong values on its side.

Technology Factor

Though technology does not give a significant impact on fast food restaurant, Jollibee

ought to look for its rival innovation and integrate their technology in managing JFC operations.

For instance, secure payment, ordering services, and management of the supply chain.

Implementation of technology would make management not only practical but also save the

corporation’s cost in the long term (Manderson et al, 2010). Consequently, it will make the
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consumers happy since the price will reduce that will be beneficial to consumers and the

corporation.

Environmental Factors

Extreme weather influences the cost of operations, and so Caktiong will have to supply

chain flexible. Since recycling seems to be a norm instead of a beneficial thing in economies,

Caktiong values will have to meet expectations of consumers since they expect the Caktiong

value to exceed legal standards and be a responsible stakeholder in the society.

Legal Factor

Data protection is a critical aspect of property right and privacy. The Caktiong values

should ensure that countries have a robust legal framework as well as a technology mechanism to

protect their data, which is beneficial to Jollibee Food Corporation.

SWOT Analysis of Jollibee Food Corporation

Strengths Weakness

The corporation has a variety of food The corporation depends on Filipinos

JFC has brand awareness Weak technology

The company has consumer’s loyalty Delivery through hotline

Affordable price Rapid expansion that leads to constraints

The company is the first food to be listed in Corporation division International vs.

the Stock Exchange domestic

Cost of modifying a menu

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Opportunities Threats

New services and products The rival between JFC and McDonald

Growing of the economy Negative reports of using earthworms to get

JFC online marketing consumers to get addicted to chemicals.

JFC International expansion

SWOT analysis Implications

The Caktiong values capabilities, as well as a resource, help to build a sustainable

competition in the marketplace. The strength comes from past experiences, financial support, and

building. Also, the strong relationship that Caktiong values that Jollibee enables them to operate

in regions where they face many government regulations.

Caktiong value lack skills that enable them to build a sustainable competitive advantage.

Weakness may result from financial resources, land, and human resource. Customer

dissatisfaction is also simmering, and the implication may result in a reduction in demand for

products.

Technological innovation and increase in disposable income are macro-environmental

factors the Caktiong value can leverage to influence the market expansion. For instance, e-

commerce may change JFC in linking suppliers and logistics provider in the global market. The

implication of Caktiong in using artificial intelligence may help to predict consumer demand and

make a good recommendation engine.

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Policy change and political uncertainty derail the model of Caktiong values. The threats

can raise the political temperature, and as a result, people will be afraid to visit the fast-food due

to assured safety, something that might lead the corporation to incur some losses.

Conclusion

In summation, Jollibee Food Corporation was initiated By Tony Tan with his family. The

Corporation was first established as an ice cream business premises that later changed to a global

brand after Lumba studies that Hamburger had a large market in the Philippines. Lumba branded

Jolly Bee to Jollibee. The corporations have been a success due to low cost into its operations,

affordable pricing, and variety of food offered to customers. The corporation has to adhere to

international government regulation on opening fast food since it is a health matter. It also has to

invest in technology so that they can efficiently manage their corporation well. The corporation

pricing is affordable, has a variety of food, weak in technology, and has an opportunity in

international expansion the last; the significant threat is the use of earthworms and their rival

McDonalds.
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References

"Jollibee Foods Corp." Scribd. Accessed July 15, 2019.

https://www.scribd.com/doc/152399779/Jollibee-Foods-Corp.

Christian, M., & Gereffi, G. (2010). The marketing and distribution of fast food. In Pediatric

Obesity (pp. 439-450). Humana Press, New York, NY.

From Jollibee to BeeBee: “Lifestyle” and Chronic Illness in Southeast Asia. (2010). Asia

Pacific Journal of Public Health, 22(3_suppl), 117S-124S. doi:10.1177/1010539510372833

Jollibee Foods Corp.(2019). Scribd. Accessed July 15, 2019. Retrieved from
https://www.scribd.com/doc/152399779/Jollibee-Foods-Corp.

Jollibee. (n.d). Background of Jollibee Food Corporation. Retrieved from

https://www.jollibee.com.ph/about-us/

Jörn, A. (2016). Jollibee Foods Corporation: International Expansion. diplom.de.

Manderson, Lenore, and Bhensri Naemiratch. "From Jollibee to BeeBee: “Lifestyle” and
Chronic Illness in Southeast Asia." Asia Pacific Journal of Public Health 22, no.
3_suppl (2010), 117S-124S. doi:10.1177/1010539510372833.

Ofreneo, R. E., & Ofreneo, R. O. (2012). Green Jobs and Green Skills in a Brown Philippine

Economy: Background Country Study. University of the Philippines Press.

Rarick, C., Falk, G., & Barczyk, C. (2012). The Little Bee That Could: Jollibee of the

Philippines V. Mcdonald's. Journal of the International Academy for Case Studies, 18(3), 83.

Ros, I., Dyntar, J., and Grosová, S. (2009). "Food products distribution systems redesign in the
food corporation acquisition and fusion conditions." Czech Journal of Food Sciences 27,
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