SWOT Analysis

Strength•

Customer LoyaltyCustomers are still choosing Jollibee. They focus on specific target markets which are
the kids or the whole family.•Cost AdvantageTheir costs are lower that it lead to higher profits and it can
under cut rivals on prices.

Weakness•

Lack of supply•Sometimes, their chicken runs out because of the delay of delivery of their
suppliers.•Services of Employees•Sanitation•Lack of maintenance on their facilities like comfort room,
utensils that are not properly washed.

Opportunities•

Online MarketJollibee can market to a much wider audience for relatively little expense.•International
ExpansionThere are many Filipinos that are the main customers of Jollibee so, expanding their outlets is
an opportunity in reaching out their Filipino customers.

Threats•

Intense CompetitionThey have many competitors that it may lead to a lower profits.

TOPIC: The critical factor responsible for jollibee success in the Philippines

CHAPTER

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. They have the
same menu as Mcdonalds but Jollibee Food Corporation serve their products with
local taste unlike Mcdonalds which brought American taste in the Philippine market.
Jollibee Food Corporation introduced fun atmosphere, friendliness and customer
focus and the joy and spirit of family while eating in their 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.

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 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.

RESEARCH 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.

Significance of The research

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.
Scope of research
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.

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. Â (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.

METHODOLOGY

RESEARCH DESIGN
it
bsites.

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.

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
________ ( Σ __________ ) __ 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 ) - ½]²
x² ____________
E

RELIABILITY AND VALIDITY

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.

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.

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 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.