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Thecriticalfactorresponsibleforjollibeesuccessinthephilippines

The critical factor responsible for


jollibee success in the philippines
Critical Success Factor- analysing the area in the operation to achieve the goals of the company
Competitors - the company or organization in the same industry that offer the same products and
services.
Leadership - a role in the organization which provide information, and coordinating each of the
employee to achieve the vision of the company.
Low Cost - offering low prices with the products and services to gain profit.
Mission - it is something to be accomplish and it is the central focus of the company.
Reliability - an instrument use to measure to describe a test.
Shared Values - it is a beliefs that guide employees and management with their decision in the
company.
Skills - it is the ability and competence of staff or employee in the organization.
Staff - employee or personnel which plays an important role in the operation.
Supplier - the one who supply and distribute raw materials in the company.
System - a method or a procedure to perform one's duty.
SWOT Analysis - an analysis of internal and external factors in the company such as strength,
weakness, opportunities and threats.
Validity - refers to whether the test or study answer the theory of the test score.

EXECUTIVE SUMMARY
The research proposal is about the Jollibee Food Corporation based in the Philippines. They
expanding and developing and has outlets locally and abroad. The main competitors are Mcdonalds,
Kentucky Fried Chicken, and Burger King. The researcher will explore and study about the critical
success factors responsible for the company's success. The researcher proposed to study if the low
cost operating system establish by the company is the critical success factors or not and what
influence them. The study include different concept and theories that will be use to analyse the
business competitive strategies like SWOT Analysis, 7-S Framework by Mckinsey, Porter's five forces
and PEST Analysis that are useful tools that will support the research study. The researcher also draw
the research design, sampling techniques, data analysis and measuring and collecting data. The

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researcher discuss some ethical implications at the end of the report and properly appraised the
source of materials through Harvard referencing. At the end of the report , the time scale are
discussed that outlines the viability of the research.

INTRODUCTION
Fast food chain in the Philippines refers to the foods that are being prepared and served quickly to
the customers. It is also known as a Quick Service Restaurant. There are numerous chain of fast food
in the Philippines. The Jollibee Food Corporation which sells Hamburger, Fries, Spaghetti, Chicken,
and Jolly Hotdog with local taste. The biggest competitors are McDonalds, Kentucky Fried Chicken,
Burger King, and Pizza Hut. Jollibee Food Corporation is the number one fast food chain in the
Philippines and it also enters the global market. They have outlets in United States of America, Guam,
Kuwait, Brunei, Taiwan, Indonesia, Hongkong, China, Saudi Arabia, Dubai and United Arabs Emirates.
The company started in the Philippines as an Ice cream parlor and later on develop and expanded as
one of the biggest fast food chain in the
Philippines
competing Mcdonalds.
Bank
Holiday Monday
They have the same menu
as Mcdonalds but Jollibee Food Corporation
serve times
their products
with local taste unlike Mcdonalds
Our opening
for Monday,
which brought American taste in the 31
Philippine
market.
August 2015
areJollibee
10:00 - Food
18:00Corporation introduced fun
atmosphere, friendliness and customer
focus and the joy and spirit of family while eating in their
(GMT+1).
restaurants.
Jollibee developed through franchising. It is active in TV commercials, it improve recognition through
mascots and logo. It is quite popular in the Philippines because it supports good family ties and family
values which is the most adhering qualities of Filipino families. Jollibee also supported different
charities in the Philippines and help various civil and non civil organizations.
As of 2009, Jollibee operated 686 stores in the Philippines, 355 are franchised and 331 are company
owned stores and 57 stores in international market.

MAIN BODY
A. BACKGROUND TO THE PROBLEM/ISSUE:
The research is about the success factor of Jollibee Food Corporation, a local brand in the Philippines
compare to American based fast food chain Mcdonalds, Pizza Hut, Burger King and Kentucky Fried
Chicken(KFC). This research analyse the success factors of Jollibee Food Corporation in the Philippines
one of which is the low cost operation system of the company compare to their key competitors. The
researcher will collect some data about the competitive strategies of Jollibee Food Corporation and
how they manage to get in to the top against giant fast food chain companies.
The researcher will analyse if the low cost operation system of Jollibee Food Corporation is the critical
factor which is responsible for the success of the company. It is important and relevant to study the
competitive strategy of the local company in the local market against the American based company
that are established globally. The price rivalry usually makes the difference with the fast food chain
that offers great quality food and service but different in price. Studying the critical success factor is
very important for the organization in order to know which areas they need to focus clearly to attain
their business perspectives and goals. Without analysing the areas of which they need to focus to
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gain success the organization will likely failed to meet their goals and objectives. The critical success
factor drives the company's strategy to win over their competitors. It drives the organization to access
their performance and to attain their vision and mission. It is very interesting to study the Jollibee
Food Corporation's CSF because they are number one in the Philippines, and very successful in the
market. In order for the organization to survive in the business world, it is essential to determine their
potentials and develop strategy to compete with their competitors.

B. RESEARCH QUESTIONS AND OBJECTIVES:


What are the factor's responsible for Jollibee Food Corporation's success in the Philippines against
Mcdonalds, KFC and Burger King?
It is important to study the factor's responsible for the great success of Jollibee in the Philippines. To
know what are they competitive advantage against their competitors mainly Mcdonalds which is
known globally and already established their company around the globe.
2. Is the low cost operating system, responsible for the success of Jollibee Food Corporation?
It is important to explore and study if the low cost operating system of Jollibee is the one responsible
for their success or are there any other factors that are responsible for it. The researcher needs to
established the relationship of low cost operation to organization's performance in the market.
3. What is the franchising concept of Jollibee Food Corporation? It has something to do with their
success factors?
The researcher needs to know the background of the company, and its relationship with the
franchisees and any support to the operation of the company. To evaluate the concept of franchising
if it has something to do with their success in the market and abroad.
4. Who are the customers and the competitors of Jollibee Food Corporation?
In business operation, it is vital to know who are the competitors in the market. To develop the right
strategy and to know their customers and the target group in the market.
5. How is the fast food chain market in the Philippines?
To study the situation of the fast food chain in the market in the Philippines. If there is any impact
with the local and American based fast food chain.

Hypothesis:
The low cost operation system of Jollibee Food Corporation is not responsible for the success of the
company but there are many other factors contribute to their success.

OBJECTIVES:
Examine the factors that are responsible for the success of Jollibee in the Philippines.
What are the competitive strategy of Jollibee Food Corporation that other fast food chain company
doesn't have?
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Study the target group or the consumers of the company based in the Philippines.
Study what is the market situation in the Philippines.
To determine what the customers value in Jollibee Food Corporation

Significance of The Study


Improve the literature regarding the fast food chain in the Philippines and it's critical success factor.
Fulfil MBA requirements.
Inform the business sector regarding the success factor of Jollibee Food corporation in the Philippines
against giant American based food chain.

LITERATURE REVIEW:
The Theories and Concepts in the Research.
1. The critical success factor analysis is a method of analysing the area that needs improvement. It is
required to ensure the success of the organization to achieve it's mission.
It is a key area where satisfactory performance is required for the organization to achieve it's goals. It
is a means of identifying the tasks and requirements needed for success. The critical succes factor
method start with a mission vission statement. Develop goals and their success factors.(Austin, 2002)
2. Porter's five forces- Michael Porter proposed that the organization is being influenced by five
forces. These are rivalry, supplier power, power of the buyer, threat of entry, and the threat of
substitutes. (Hollensen 2003, 74-79) . Understanding the five forces will provide the organization to
develop strategy in order to take advantage to their competitor. (Thurlby, 1998).
It is important to know your competitors in the business industry. To know what product and services
they are offering to their customers and what competitive strategy they are doing in order to be
successful in the business.
It is also important to know your supplier. The company needs some resources and materials in order
to produce goods and products for their consumers. There should be a good relationship between
the buyer and the supplier.
The buyer should be given importance because the business depends on how many buyers the
company have. They are the asset of the company and they give profit to the organization. They are
the one who set the price of your product.
New competitors enter and exit the market. Some stay some will go. Some will be successful and
some are not. It is important to know what's going on to the market. If they are new competitors that
are entering, it will affect your company's profit.
The threat of substitutes, this is important to know what other companies are offering the consumers
and find any alternative to your product and services to make it successful.
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Threats of New
Entrants
Small chicken shop
Are growing

Rivalry
Jollibee Vs
McDonalds
KFC
BURGER KING

Supplier
Power
Strength of
Network
Distribution

Buyer Power
Product cost
Against other
Alternative

Threat of Substitute
Product
Chicken shop are
More likely affordable
Fig. 1 Porter's 5 Forces Model of JFC

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SWOT ANALYSIS it is a techniques of analysing the company's strength, weaknesses, opportunities


and threats. The aim of this is to identify the internal and external factor that influences the
company's objective. The internal factors are the strength and weaknesses, and on the other hand
the external factors are the opportunities and threats.(Marketing Teacher)

POSITIVE NEGATIVE
STRENGTH
Low Cost Operation
Local Taste
First Comer's Advantage
WEAKNESS
It is franchised store so the service delivery
vary from store to store
OPPORTUNITIES
Develop high technology to make sure of good
quality products.
THREATS
Threat of new entry- small chicken shop
High Rivalry with Mcdonalds
Economic crisis- customer has less money to
spend for their meal
Fig. 2 SWOT ANALYSIS MODEL JFC
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Jollibee Food Corporation's Strength are the low cost operation system. They are selling their
products in lower price compare to Mcdonalds and with local taste. They
get the advantage of being the first comer, in the market. They enter the market in the Philippines
first in 1975, in otherhand Mcdonalds enter the market in 1981.
The opportunities of Jollibee Food Corporation, should develop high technology in the operation
system to improve products and services they offer to their customers. Make more innovations so
that it will gain advantage against it's competitors specially Mcdonalds that is American based
company and also known worldwide.
The weakness of Jollibee is that it is a franchised store, so the service will vary from store to store. The
quality of service depends on the employee of the store and the franchisee.
The threat of Jollibee is the high competition against Mcdonalds, and the threat of new entrants,
there are number of small chicken shop that are opening in the Philippines that are cheaper than
Jollibee and Mcdonalds. Due to economic crisis in the Philippines, people have less money to spend
on their meals.
7-S Framework of Mckinsey- a method of effectively organizing the company through seven factors.
Shared values- it is the core of the company's goals and what they believe in.
Strategy- it is their method on how to reach their goals.
Structure- it is the way how each division in the company interact with one another.
System- procedure and process that needs to be done
Staff- the employee, or the personnel in the company
Skill- the qualities and competencies of each employee in the organization.
Style- how each leader of one organization interact with their subordinate to establish leadership.
(Value Based Management)
STRATEGY
Jollibee Food Corporation's strategy are providing cheaper products compare to Mcdonald's. The
company also provide products with local taste. The company also has alliances and acquired
different fast food companies in the Philippines which are, Greenwich (Pizza- pasta), Red Ribbon
(Cakes), DeliFrance ( Sandwiches and drinks), and Chowking ( Chinese Food). (Jollibee The Official
Website)
STRUCTURE
The JFC is a franchise company, with 686 outlets in the Philippines and 57 stores in international
market. The company are divide into different divisions. From the President of the company, Director,
Corporate strategy division, Engineering, Human Resources, Information Management, Procurement,
Real Estate, Audit and Commissioner.
(Jollibee The Official Website)
SHARED VALUES
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JFC value every Filipino family. It focus mainly in their customers and providing fun atmosphere for
every group and family who are eating in their restaurants. They respect every individual who choose
to eat in their restaurants.
STAFF
Jollibee provide training to their employees and appraisal whenever they improve their performance
in the company. The company provide incentives and bonuses to their staff.
SYSTEM
The franchise fee for Jollibee
P 15- 30 Million (local currency)
$ 266,455- $532, 890 ( US Dollar)
(Start up Biz Hub)
5. PEST- ANALYSIS- (STEEPLE) this is a method of analysing the political, economic, social and
technological aspect of one organization in order to create a visible strategy. ( Value Based
Management)
Political factors- create a big impact in the business operation. It includes policies governing
tax, legal issues, and employment regulations.
Economic factors- it has a huge effect in business operation if the customers afford to buy your
product and the cost of business production, inflation rate and exchange rate.
Social factors- it has tremendous impact in the operation, through the lifestyle that customers create
in the society. It includes family, education and religion, age and career.
Technology- it has something to do with the new innovation that has high impact in the business.

POLITICAL
Political issues affect the economy in the Philippines, political alliances and employment regulation
have a great impact in the operation of fast food chain

ECONOMIC
Due to economic crisis in the Philippines, some family cannot afford to buy their meal in Jollibee.
There is a problem with the inflation rate in the country

SOCIAL
Jollibee has partnership with Department of Social Welfare helping children in the Philippines. The
company provide financial assistance with different charities in the Philippines

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TECHNOLOGY
JFC has a network of distribution facilities to supply to their stores nationwide.
Fig. 3 PEST ANALYSIS of Jollibee Food Corporation

METHODOLOGY:
RESEARCH DESIGN
The researcher will make use of exploratory research design to gather information and knowledge
about the company's background, history and other useful information for the research. I will make
use of the internet, and other published materials such as published articles, newspaper, and
journals to gather further information.
The researcher will also use of primary research design like survey questionnaire to gather
quantitative data. The survey will be divided into two parts. The first parts will be the questions
regarding the objective of the research and the last part will be an open ended questions regarding
the demographics such as age, sex, location, career and income.
The researcher will also make use of qualitative research method in order to establish the
relationship of one variable to another and correlates with the theories.

SAMPLE DESIGN
The researcher will make use of non-probability sampling, in other words the respondents are not
randomly selected. The sample will be approximately 150-200 respondents. The subject or
respondents are those who are willing to take part in the research or to answer the survey questions.
The focus of the research will be the customer's of Jollibee Food Corporation in the Philippines. The
researcher will use the internet to gather information through uploading survey questionnaires in
Facebook, My space and Friendster websites.

DATA GATHERING
Data collection will be through online. Due to the location of the researcher and the location of the
market in the Philippines online surveys will be useful and will generate faster response. The
respondents will be ask to fill out the survey questionnaires. The questionnaires will have five
responses. (Strongly disagree, disagree, neutral, agree and strongly agree.) The first part of the survey
will focus mainly on the objectives of the research. The last part will be an open ended questions and
the respondents personal data
like age, income, status, career and their location and race. Survey will be use as it is more cheap and
flexible to use for the research. Through online survey the researcher can reach the Filipino
respondents who value the Jollibee Food Corporation. The researcher will use flow charts and
diagrams to present data.
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DATA ANALYSIS
In order to measure the responses with the survey, the responses for the survey will be code
like (1) for strongly disagree, (2) for disagree, (3) for neutral or neither agree or disagree, (4) for agree
and (5) for strongly agree. After that the likert data will be analyse through descriptive statistics. It is
an ordinal scale which measure the level of agree and disagree and it has five responses. Therefore
we will use the non parametric test .The researcher will then summarize the responses and present it
to charts and graphs. Through responses with the survey, the researcher will use the code for each
responses to measure the mode or in other words the most frequent responses by the samples and
the median as well to measure the central tendency.
After that, inferential statistics will be use to test the hypothesis. Kruskal Wallis Test will be use, it is
one way analysis of variance by William Kruskal and W. Allen Wallis. (Wikipedia).Kruskal Wallis test
works by substituting the data set. It will then calculate the sum and the H is calculated as well. H is
already given in the formula representing the variance in a group. The chance of getting the
probability of a true null hypothesis, when H is evenly distributed in chi square measure of frequency,
the degree of freedom minus one is calculated. (Handbook of Biological Statistics, 2009)
The formula for Kruskal Wallis test:
H = 12 ( Tg)2
________ ( __________ ) __ 3 (N + 1)
N (N+1) ng
After using Kruskal Wallis Test, the researcher needs to measure the level of agree and disagree
responses through chai square test. The chi square test formula:
ef = row total x column total

______________________
over all total
Where ef = expected frequency

[ ( O - E ) - ]
x ____________
E

RELIABILITY AND VALIDITY


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The survey questionnaire will be test by sample respondents to test the validity of the survey . The
questions will be scrutinize and enhance to clarify certain areas of concern. Through test run of the
survey questionnaire, the researcher can detect any errors that will affect the validity and reliability of
the survey questionnaire. The questionnaire will be enhanced and edited accordingly based on their
comments and suggestions of those who will participate in the test run.
Reliability defines as, if the result is remains consistent, and if the result acquired with the result can
be replicated under the same methods, it is therefore reliable.(Joppe, 2000). Test re test can be use
and the same results can be obtain, it is therefore reliable. On other hand, validity define as if the
research study really measure what it wants to measure it is therefore valid. (Joppe, 2000). The
research study is said to be valid if the measurement with the data gathered are correct and accurate.

E. REFLECTIONS:
In keeping the integrity of the research, the researcher follow the rules and guidelines to observed
ethical regulations. All resources used for the research such as books, journals, articles and other
published materials are properly recognized and referenced. The researcher use the Harvard
referencing guide to avoid issues of plagiarism. The information that will gather in the survey
questionnaire such as personal information of the respondents will not be disclose and will keep it
confidential. The personal details of the respondents will be kept anonymous and confidential.
The researcher will avoid to be biased with the survey results or responses. The responses will be
collected and summarize accordingly and avoiding wrong interpretations or reporting wrong
conclusion on findings.
The researcher develop a survey questionnaire that will be uploaded online in Facebook, Myspace
and Friendster and all information that will gather with the survey will be carefully assess and
summarize the data that will be collected and test and measure the validity and reliability.
The researcher has a limited knowledge about statistics, with the help of SPSS software downloaded
from the internet, it will help me measure precisely the validity and reliability of the responses from
the survey and use different statistical method to measure mean, median and mode and the
standard deviation.
The method of gathering and collecting information is also limited because the location of the
research will be in the Philippines. Only online survey will be use to get 150-200 respondents who are
willing to answer the survey questions online. Most of the respondents will be Filipino or those who
live in the Philippines who value Jollibee Food Corporation other than its competitors like Mcdonalds.

F. TIME SCALE AND RESOURCES:


The researcher will continuously gather more information about the Jollibee Food Corporation, the
company profile, background, issues and make extensive research about the problems through
further reading of published articles and journals and books related to the topic. The first and second
week of March will spend on working out with gathering further information and knowledge about
the research topic. Upon waiting for the result of the grades for Research proposal, I will spend the
remaining weeks to go to British Library to access the related materials for my research topic. The
survey will be administered and uploaded online on March 25, 2011 after the result of grades will
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release for the research method assignment to get some ideas and if they are corrections with the
proposals written. If the survey questionnaire sample will need to be enhanced or edited before
uploading it to the internet. Prior to that a test run will be conducted for the survey questionnaire to
test if it is effective and will be understood by the respondents. After uploading the survey to the
internet, the researcher will work on the review of the literature until the end of March 2011. The final
collection of survey online will be on the 1st week of April. It will then be analyse and summarize on
the same week and measure the validity and reliability using statistical methodology. The research
should be completed before the 2nd week of April for the deadline of submission of the final
dissertation to complete my MBA degree.
Assignment was given (Research Proposal)
January 25, 2011
Deadline for Submission of Research Proposal
February 25, 2011
Visit British Library to Gather Related Information about the Topic.
March 5-12, 2011
Release of Grades for Research Methods Assignment
March 25, 2011
Survey Questionnaire will be Uploaded Online
March 30, 2011
Final Collection of Survey
April 5, 2011
Complete Analysis of Data Collected
April 8, 2011
Complete Final Report
April 15, 2011
Deadline for Submission of Dissertation
To be Posted
Fig. 4 Time Scale of the Research

CONCLUSION:
The fast food chain market in the Philippines are continuously growing and expanding. Competitors
keep on entering the market providing the same service and products with Jollibee. But still Jollibee is
the number food chain in the country. Technologies and innovation are keep going to provide quality
products locally and abroad. The researcher suggest furthermore research about the company's
competitive strategy and other factors affecting the company's success not only in the Philippines but
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still growing around the globe. The company continuously acquiring different corporation locally and
in the international market. The researcher will continuously study about the other factors
contributing to the success of local company against the giant fast food chain that is widely known
internationally.

REFERENCES
"Business Method Analysis". Available from:http://www.valuebasedmanagement.net/
methods_7S.html. [Accessed Feb 14, 2011].
"Handbook of Biological Statistics". Availablefrom:http://udel.edu/~mcdonald/ statkruskalwallis.html
[Accessed Feb 18, 2011].
Hollensen. 2003. Marketing management. A Relationship Approach. FinancialTimes/ Prentice Hall
(2004) [Accessed on 26 October 2010]
"Jollibee The Official Website". Available from: http://www.jollibee.com.ph/index.
php?/about_us/contents/5. [Accessed Feb 15, 2011].
"Kruskal Wallis Test". Available from:http;//en.wikipedia.org/wiki/Kruskal %E2%80%93Wallis_oneway_analysis_of_variance. [Accessed Feb 21, 2011].
"Marketing Teacher". Available from:http://marketingteacher.com/lesson-store/lessonswot.html. [Accessed Feb 20, 2011].
"Sample Research Proposal". Available from: http://sampleresearchproposals.blogspot.
com/2009/02/sample-research-proposal-on-methodology.html.[Accessed, Feb 22, 2011].
"Statistics". Available from: http://en.wikipedia.org/wiki/Reliability
statistics. [Accessed Feb 23, 2011].
"TheBusinessDictionary".Availablefrom:http://www.businessdictionary.com/definition/
leadership.html.[Accessed Feb 20, 2011].
"The Jollibee Franchise". Available from: http://www.startupbizhub.com/how-much-isjollibee-franchise.htm. [Accessed Feb 19, 2011].
"The Official Board of jollibee". Available from: http://www.theofficialboard.com/
org-chart/jollibee-foods.[Accessed Feb 22, 2011].
"Understanding Critical Success Factor Analysis". Available from:http://www.
Oppapers.com/essays/Understanding-Critical-Success-factor-Analysis/183233 [Accessed Feb 15,
2011].

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