Jollibee Case Study

Topics: Hamburger, Fast food, Philippines Pages: 5 (977 words) Published: February 1, 2013
I. Summary
Jollibee started in 1975 as an ice cream parlor, Mr. Tony Tan the young Chinese entrepreneur had an idea of putting up a business together with his two brothers and the financial backing of his father. In January 1978, the ice cream parlor evolved into fast food chain, the Jollibee Foods Corporation. At that time McDonald’s was making waves in the United States and Mr. Tan added the famous hamburger and hotdog sandwiches to keep up with the changing taste and lifestyle of customers. Jollibee became the fast-food place to go to with its uniquely- flavored Filipino burgers, chicken and sweetish spaghetti.

Despite the Tan Brothers’ conservative background their drive to innovative led them to hire an equally driven people that would help their business a giant in the Philippine fast food Industry. Two decades later, the fully Filipino owned hamburger chain had overtaken American multinationals in their own fast food game. Despite the influx of new foreign players, Jollibee continued to dominate the hamburger market. Jollibee Food Corporation is a food empire with interests to American fast food (burgers, fries, fried chicken, etc.) including pizza (Greenwich), grilled chicken (Mary’s Chicken) and Chinese Fast food (Chowking). Jollibee used franchising to rapidly expand its business and achieve market penetration. Jollibee’s first franchise opened in 1980. In the same year its sales boomed to P24million. Its closest competitor, McDonald’s had almost 200 stores. More than 43 percent of Jollibee’s 302 stores were franchise owned. Franchising is the force which provides the strength to the Jollibee food empire. Investing in a Jollibee franchise requires a low of P10-15 million to a high of P20-25 million. JFC is a good business to those entrepreneurs who can afford their franchise fee until the management faced a problem between the two franchisees that are choosing the same location.

II. Problem Statement: How will Genee Lopez evaluate the proposals of Mr. Artiaga and Mrs. Ng given that they would like to open a store at same location?

Objective: To identify which of Mr. Artiaga and Mrs. Ng’s proposal will be given approval and to determine the factors that will affect the place decisions.

KRA: Will be given the approval and which factors that will affect the place decisions.

* Neighborhood development
* Public transportation
* Parking layout
* Hours of operation
* Visibility

III. Situational Analysis
STRENGTH * Wide variety of products * Jollibee was the first to enter the market. * value quality * Has a dominant position in domestic market * achieving high brand loyalty| OPPORTUNITIES * Global Market * Good Franchisees| WEAKNESS * Poor employee training| THREAT * Direct Competitor * |

* Wide variety of products offered in diverse markets.
* Jollibee was the first to enter the market that gets the high percentage of selling. * Value quality in which cater a high class of variety of products. * Has a dominant position in the market in which the companies always on the top of the most seek products for the consumers. * Achieving high brand loyalty because of its distinct flavours of variety of products. WEAKNESS

* Poor employee training because some of the employees are undergrad and some has no background of business education.

* Global market because JFC cater in the worldwide.
* Achieve good franchisees because of its good franchise agreement that JFC became a worldwide company comes to franchise.

* Direct competitor is one of the threats due to the same variety of products. 4.1 General Environment (PESTLE)
JFC as one of the elite corporations had fully established its political, ethical, social, technological, legal and environmental factors throughout the years. 3.2 Industry
3.2.1 Competitor
JFC as the fully...
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