Assignment 2 - Individual Assignment 1
July 2011 Presentation
Analyzing Jollibee’s internal environment requires evaluating the firm’s portfolio of resources and capabilities. And these key factors lead to the development of Jollibee’s core competencies or its competitive advantage. To analyze its internal environment, I’ll be applying the RCCI (Resources, Capabilities, and Core Competencies) model as this model is the most suitable for this industry.
• Base on the data given from 1998-2004, Jollibee has shown profitability, its net income margin improve significantly from 1.3 billion pesos to 1.6 billion pesos in 2004. This is partly due to the introduction of more varieties to their existing menu and acquisitions of other fast-food chains which has contributed to the growth.
• To allow the firm to general more internal funds, Jollibee was listed on the Philippines Stock Exchange. This helps to lay the groundwork for internationalization as well as the expansion of chains domestically.
• In order for the business to operate and coordinate more efficiently in the domestic network, Jollibee decentralize the organization into 4 regional business units (RBUs) according to major geographical markets. This structure allows timely decision making and ensured a more manageable business size and span of control.
• Employees to the firm also play a key role in contributing to the success of Jollibee and the management recognizes that maintaining high standards in the service industry underlie the key factor to success. Therefore, trainings programs were structured on the basis of the defined high standard requirements and all employees are required to attend the comprehensive training to meet the company standards. The trainings programs can result in several benefits. It equips the employees with better skills and knowledge as well as aligning them with the company goals.
• Physical assets such as production equipments, storage facilities, distribution centers and employees form the physical resources of Jollibee.
• Jollibee invest on state-of-the-art technology on their operations systems to constantly train their managers to amidst competition.
• The iconic bright red and yellow “Jolly Bee” and the mascot (a blond spaghetti-haired girl name Hetti) for Jollibee has become the trademark logo across nationwide.
• Knowledgeable employees, trusting work environment, strong leadership managerial, and Jollibee recognizes the employees efforts by offering them high compensation and benefits to reward and retain their employees. Other than that, career advancement also existed for employees to pursue a career path within the organization.
• To provide assistance to the RBUs, a support Centre was form to provide corporate-level direction.
• From the survey conducted by the De LaSalle University (DLSU), majority of the customers have good and positive perceptions of Jollibee product and reliability – 94% of their customers perceived Jollibee as an “affordable and/or cheap” and 72% cited “Accessibility of its outlets”.
• In the Philippines, Jollibee has a very high awareness and the brand has established a high top-of-mind recall in consumers’ mind. Till date, Jollibee is not only a household brand; it had also become an international brand that is well recognized by Forbes and Asian Business. R-C-CC Model
In summary, there are 3 Temporary Competitive Advantage, 1 Competitive Parity and 1 Sustainable Competitive Advantage. The analysis helps the management of Jollibee determine the strategic value of the firm’s capabilities.
Value Chain Analysis
Using the value chain analysis helps Jollibee to understand parts of its operations that...