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"An important source of growth for our corporation is the expansion of our international business." -Tony Tan Caktiong Chairman, Jollibee Foods Corporation
HISTORY
Jollibee is a phenomenal success story: what began as a two-branch ice cream parlor in 1975 offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. Thus was born the company that revolutionized fast food in the Philippines. In 1984, Jollibee hit the P500 million sales mark, landing in the Top 500 Philippine Corporations. In 1987, barely 10 years in the business, Jollibee landed into the countrys Top 100 Corporations. It became the first Philippine fast food chain to break the P1 billion sales mark in 1989. In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus broadening its capitalization and laying the groundwork for sustained expansion locally and beyond the Philippines.
STRENGTHS
2. Jollibee has grown exponentially on all aspects on operation. From a handful of stores 36 years ago, Jollibee now boasts of more than 1,287 stores in the Philippines and over 161 outlets in the international front.
Breakdown of Operations:
Domestic
540 Jollibee 334 Chowking 23 Greenwich 139 Red Ribbon 36 Delifrance
International
23 Jollibee in US 17 Chowking in US and Dubai 17 Red Ribbon in US 104 Yonghe King in Peoples Republic of China
STRENGTHS
3. Implements various TQM practices to meet and exceed customer expectations and has strong ethical values built upon products and services with appropriate quality.
STRENGTHS
4. Better product quality Offers a wide variety of product lines and excellent services which includes: Distinctive flavor, texture, juiciness and aroma of familiar food products; the liveliness, colorfulness, cleanliness and atmosphere of fun and customer delight in the dining place; the ready smile, warmth and courtesy of the store crew.
STRENGTHS
5. Undisputed leadership: Optimism - despite of their failure in testing the Chinese market, that experience will not hinder Jollibee to try again in the hope of competitive results.
WEAKNESSES
1. Although Jollibee has maintained a niche in the domestic arena, it cannot wholly penetrate the International market. Hence, McDonalds is deemed the number one fast food chain internationally.
WEAKNESSES
2. Has standardized the taste of their food products however, they failed to adopt the flavors of the world. In the contrary, McDonalds has incorporated the taste of their products with the preference of people in a certain country where they operate.
OPPORTUNITIES
1. Business Acquisition in the domestic market allows Jollibee to grow its presence in various market segments. It obtained various restaurant networks such as Chow king, Red Ribbon, Greenwich and Delifrance. 2005 Acquired Red Ribbon, with 150 outlets mostly in the Philippines, for Php 1.8B
OPPORTUNITIES
2. The franchising agreement between Jollibee International Ltd. And Ice Tea International with opening of the Chun Sun Tang Tea House in Shanghai
OPPORTUNITIES
3. The company has the opportunity to expand more its global operations. New markets in diverse nations are beginning to emerge. March 2004 for US, acquired Yonghe King $11.5M
THREATS
1. Potential New Entrants The success of Jollibee led to increasing number of competitors and copy cat brands that pose potential threats 2. Raw materials and other supplies Jollibee is exposed to rises in the cost of their supplies and raw materials 3. The Emergence of Substitute products the increasing number of substitute s products or services which prospective buyers can buy whose utility and function is similar to a desired product. 4. The impact of Globalization - increasing unification of the world's economic order through reduction of such barriers to international trade as tariffs, export fees, and import quotas.
Triggering Events
INTERNAL 1. Performance Gap it exists when performance does not meet expectations The company opened up Jollibee Food Restaurant to test the Chinese Market but it did not do so well. The company aimed to acquire market share in India but it failed to find an entry point in the said market.
Triggering Events
2. New products or services change in products or services offered by the firm
New Company Acquired Yonghe King Chain New Products or Services soybean milk, fried bread sticks and beef noodles,etc.
Triggering Events
3. Change in Ownership either by way of acquisition, merger, sell out or changes in majority of ownership of stockholdings. In case of Jollibee, it is by ACQUISITION that triggers the company to formulate new sustainable competitive STRATEGY.
Triggering Events
3. Corporate Reorganization/Restructuri ng requires new schemes or strategies to achieve new vision-mission statement or desired goals. In relation to their vision of being the leading fast food chain in the foreign market, the management is prompted to do some corporate reorganization and restructuring.
Triggering Events
5. Management Team Shake up creation of new management teams and functional group The situation of expanding globally requires Jollibee to form new sets of management teams that will facilitate the international operation.
Triggering Events
EXTERNAL
1. Market Factors Offered products VS Customer s Taste COMPETITORS 2. Global Environment The idea of expanding the business in the International front and its implication in the entire operation is deemed as an external triggering factor.
Corporate Reorganization & Restructuring Business Reorganization Business Reorganization Management Team Shake Up
CORPORATE VISION To lead and expand in the international market by acquiring more firms CORPORATE STRATEGY Continuously provide the best customer service Financial Improved Profitability PERFORMANCE MEASURES: 7% Growth in Net Income and 10.3% Increase in Revenue Customer Service Improvement PERFORMANCE MEASURES: Improved services to customers by providing what they need and want CORPORATE STRATEGY Continuously acquire various firms in domestic and foreign market Internal Implement TQM Growth Develop new geographic areas Product enhancements PERFORMACE MEASURES: Increase in no. Of stores: 1, 287 domestic and 161 international
Thank You.
Presented By:
Bontia, Mary Joyce Casil, Nile Jordan Danganan, Czarina Imatong, Ma. Frenzy Pablico, Vince Quillao, Reymon Rodrin, Erika Joy (BSBA-OM 402)
Presented To:
Ms. Perla San Juan OPMNO7B