CHAPTER 1: CHANGING NATURE OF POLICY AND STRATEGY FORMULATION

Jollibee Foods Corporation ( Traditional Approach Early Years )

Traditional Approach The traditional top-management approach determination of
objectives presupposes a size-up of the situation of the business organization as a
whole. Once a size-up had been made, objectives could be determined and provide for
the development of a program of action covering the various activities of the business
organization.
Size-Up of the Business Situation Analyzing the situation in order to make a
judgment or form an opinion. After sizing up, the manager should suggest a strategy or
recommend actions. This consisted of a size-up of the business situation with respect to
the following:
1.
2.
3.
4.

The outlook for the economy and the industry

The competitive situation
The financial and operating picture of the business organization
Analyses of sales, production, costs, product development and the executive
organization.

Jollibee Foods Corporation (JFC)

Jollibee was founded by Tony Tan and his family with its humble beginnings as an
Ice Cream Parlor which later grew into an emerging global brand. Jollibee
experienced rapid growth. It was able to withstand the entry of McDonald's in the
Philippines in 1981 by focusing on the specific tastes of the Filipino market, which
differed from the American fast food company. Aside from promoting a family
oriented work environment, the brands values also reflect on their advertising and
marketing. Jollibee knows their target audience very well: the traditional family and
all communication materials focus on the importance of family values, making
Jollibee the number one family fast food chain in the Philippines and a growing
international QSR player. The chain opened successful milestone stores, its 900 th
store is in Palo, Leyte on September 30, 2015.

Timeline ( Traditional Approach )

1975 - Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao.
This will later become the 1st Jollibee Outlet.

1978 - The Yumburger becomes its first flagship product.

1979 - Spaghetti Special is introduced.

- Jollibees first franchised-store opens at Ronquillo, Sta. Cruz, Manila.

1980 - Jollibee launches its 1st TV commercial.

- Jollibees Chickenjoy and French Fries are launched.
- The well-loved Jollibee mascot is conceived to support brand
awareness and identity efforts. Other mascots are later introduced.
- Jollibees Chickenjoy becomes one of its best-selling menu items.

1981 - McDonalds built a store in the philippines. Jollibees number 1

competitor.

Sizing-Up The Business Situation As A Whole

Competitive Situation - Less competition when Jollibee started their business

until McDonalds came in PH.

Financial and Operating Situation - The financial ratios are satisfactory. The
relationship of long-term debt to equity is reasonable. It may be concluded that
the company is in sound financial condition, and earnings have been satisfactory.

Marketing Situation - Jollibee launches its 1st TV commercial in 1980.

Research and Development Situation - Introduces new products like Spaghetti

Special, French Fries, and Chickenjoy.

Determination of Objectives
Since the timeline showed a good business situation, Jollibee Foods Corporations
primary objective is the expansion of their business.

Development of a Program

Financial and Operating Program - The financial program mainly focuses on

maintaining its financial ratio satisfactory and gaining profit as they expand their
business.

Marketing Program - The marketing program must deal with providing new
promotions and advertisements like use of in-store promotions, novelty
premium items and Kiddie Birthday packages for kids (1982) and The
Langhap-Sarap TV ad Campaign (1983).

Research and Development Program - The research and development program

must focus upon the process of developing new products like Palabok Fiesta
(1982), Champ hamburger (1984), and Breakfast Joys (1985).