Jollibee - Case Study Analysis

Category: Business Autor: andrew 08 March 2011 Words: 4956 | Pages: 20 Executive Summary The case gives an idea about how the competition influenced Jollibee's strategy, both domestic and international. Jollibee ,which was a Filipino chain of restaurants, was forced to change their strategy with the entry of McDonalds in Philippines, which later transformed the company into a global company .The company faced serious challenges with their international exposure. The challenges included the conflicts with franchisees/Joint venture and conflicts between divisions. Another issue that the company faced was the entry into Papa New Guinea, United States of America and expansion plans in Hong Kong. The company has to consider the financial instability it faces while considering their plans. In the analysis we have tried to cover the effectiveness of strategies adopted by Mr Tony Kitchner (Former International Division head). This case analysis report deals with, firstly the key management challenges faced by the company, followed by some supporting arguments. In the management issues, the report focuses into the conflicting areas or the need to establish a greater cooperation and coordination between the Domestic and International divisions. Then, the recommendations regarding what should the company do differently in each of its department like in Marketing, HR, Finance or Operations, to succeed in its plans of global expansion. Finally, the feasibility of the three decisions that the new management has taken is also discussed. We have also tried to analyse the dilemma faced by Mr. Tingzon regarding the opportunities of international expansions to Papa New Guinea, Hong Kong and USA. Jollibee Foods Corporation- International Expansion: Case Analysis a. Industry Analysis A fast food restaurant or Rapid Service Eatery (RSE) has the following 3 characteristics. 1. It is characterized by its fast food cuisine and nominal table service. 2. It offers limited menu, cooked in bulk in advance, kept hot, finished, packaged to order, and available to take-out, drive-thru, and dine-in.

3. It is usually a part of a chain or franchise operation, which supplies standardized ingredients and/or partially prepared foods and provisions to each restaurant through controlled supply channels. McDonald's is one of the most famous RSE in the world. McDonald's became No.1 in every country of more than 100 countries in the world except Philippines where JFC has been overwhelming strength against McDonald's. JFC was founded by Chinese-Filipino Mr. Tony Tan Caktiong (TTC) as the ice-cream parlor at Cubao City in 1975. Gradually, it grew up to a reasonably large fast food chain in Philippines. Further, JFC started scouting avenues for expansion internationally. Thus it opened its franchises in countries like U.S.A., Brunei, Hong Kong, Guam, Middle East, etc. Assuming, Mc Donald's was the chief competitor of JFC in Philippines we have made an analysis of the strategies adopted by both the organizations. In order to analyze the strategy, we have utilized the following two tools. a) Four-Tier Structure of Market b) Type of Glocalization A. FOUR-TIER STRUCTURE OF MARKET Khanna & Palepu (2006) introduced the Four-Tiered Structure of Market. They insisted that most product markets comprise four distinct tires: global, glocal, local, and regional. In Global segment, products of global quality with global features at global prices are offered. In Glocal segment, products of global quality with local features (and local soul) at less than global prices are offered. In local segment, local products with local features at local prices are offered. B. TYPE OF GLOCALIZATION As objectives of glocalization can be product/service and business model, there are two types of glocalization. Product/service glocalization Business model glocalization. The following charts give an overview of strategies adopted by JFC and Mc Donald's. a. Porter's competitive strategies Model b. Type of Glocalization (Products/Services vs. Business Model)

b. Firm Analysis SWOT ANALYSIS OF JFC: STRENGTHS WEAKNESSES a. Jollibee was a regional industry leader that had experienced professionals as chief executives of the organization. b. Proven past performance made dealings with prospective partners easier. c. Wide variety of products offered in diverse markets. a. Lacked more effective marketing skills as growth revenues decreased. b. Lack on in-depth planning and research in the expansion to foreign markets. c. Poor co-ordination between the national and international units. OPPORTUNITIES THREATS a. The promising nature of international markets and also the available potential due to the migration of Filipinos in certain countries. b. Being an agricultural country, full integration in sourcing raw materials could be done. c. For international markets, locating commissaries in the same country through joint ventures could be a potential source of success for the company. Jollibee could facilitate the technology provision while the partner could formulate the appropriate modus operandi to sell in the foreign market. d. For the local market, an increase in the number of commissaries could easily reduce the transportation costs and the duration of shipments. This would allow the company to concentrate on the quality of products. a. Competition from both international companies and other local eateries. b. Political instability in the country threatened JFC as it could hamper the opportunities to convince international investors and country leaders to allow a JFC entry in their country. c. Driving Forces Analysis of Tony Kitchner's Strategy

a. Marketing Perspective Jollibee was able to attain a competitive advantage in Philippines over McDonald's by doing following things: First mover advantage - Jollibee was the first to enter the market. Analysis of Tony Kitchner's Strategy In 1994 Tony Kitchner was hired to head the International Division. He was successful over his three years. He was successful in creating wealth and increasing the presence in countries that had less or no competition. During his time the total number of stores increased 65% to 205 from the end of 1993 to the end of 1996. Moreover the total sales increased over 94.5% over the same period These increases are dramatic. Very few companies can experience rapid growth like this. He always had the idea to be the first -mover into untapped markets as he believed that although you may incur losses in the initial years, which can be cross subsidized from Philippines operation, the company will be able to restrict the entry of its competitors. But these do not show the whole picture of his strategy implementation. There were instances of shutdown of stores due to mounting losses .The chaotic strategy of investments unsupported by proper research failed costly for the company. His strategy of targeting expats had the risk of targeting a narrow segment. The lifestyle, tastes and preferences of the expats was also not considered during international expansion. a. Marketing Perspective Jollibee was able to attain a competitive advantage in Philippines over McDonald's by doing following things: Jollibee was the first to enter the market. Retaining tight control over operations management, which Allowing it to price below its competitor. Having the flexibility to cater to the tastes of its local consumers. As Jollibee entered international markets, it faced new challenges. The fast food industry is highly competitive and price wars and marketing innovations are seen frequently. The rivalry is also centered on the key success factors of the industry, which are good food, good, service and reasonable pricing. Rivals are somewhat equal in capabilities and opportunities, thus making the competition stiffer. Internationally well-established players like KFC and McDonalds had high brand values that Jollibee found difficult to compete with. The threat of substitute products is considerable. Local street food and high-end restaurants form two ends of a range of substitutes. Potential entrants face entry barriers that will hinder them from entering the industry. These are the inability to gain access to technology and specialized know-how, brand preference and

customer loyalty, capital requirements, economies of scale, and strategically situated distribution channels. Tony Kitchner was hired to build the global Jollibee brand with the dual goals of positioning Jollibee as an attractive partner, while generating resources for expansion. In order to become one of the "top 10 fast food brands in the world," Kitchner implemented a two-part international strategy which comprised of "targeting expats" and "planting the flag." 1. TARGETING EXPATS Kitchner's idea of "targeting expats" allows the company to ease its transition into an unfamiliar market. Although there is the risk of targeting too narrow of a segment, Jollibee's success in the niche market would allow it generate momentum for the company's expansion. The concentrated marketing campaign allows the company to generate stable revenues that can be used to support Jollibee's entry into other segments, while the popularity amongst expats could generate publicity and attract walk-in traffic from non-Filipinos. Recommendation: "Targeting expats" will only lead Jollibee to become a global brand if: a. Jollibee correctly targets expats who have a need and want for the product and thus avoid repeating its mistake in the Middle East. b. The company continues to build its competitive advantage through learning and by appealing to a broader audience. 2. PLANT THE FLAG On the other hand, Kitchner's decision to "plant the flag" reflected a desire to build an empire under his leadership, rather than a strategically sound decision for the firm. Although Kitchner hoped to leverage Jollibee's competitive advantage by entering new geographic market, his rapid expansion strategy was unfocused and poorly executed. Kitchner also neglected to consider the large transaction costs associated with establishing markets in new countries. Kitchner's desire to be first-mover in a number of small, undeveloped markets would not have brought the prestige needed to win the firm better partners. "Planting the flag" only showed that Jollibee knew how to repeat its success. Recommendation Market research prior to entering new markets will help in avoiding the unprofitable ventures as in the Middle East. In order to compete on the level with multinationals, rather than just being a first mover, Jollibee would have to take its performance to the next step and prove that it could continue to build its competitive advantage.

b. Financial Management Perspective Jollibee's sales, net income, operating income, and royalties and franchise fees has been increasing rapidly for the period under study. The total number of stores increased 65% to 205 from the end of 1993 to the end of 1996. By 1996, sales had increased to 8.57 billion which translates to a market share of more than 50% among all hamburger fast food chains. Total assets increased over 230% in the same period. Moreover operating income increased about 114% while net income increased over 100% during the same period. These increases are dramatic. Significantly Inventory decreased from about 11.5% in 1992 to just 7.5% in 96. This implies that less of the current assets were tied up inventory. During the same period the trade accounts receivables has increased from 8.4% in 1992 to 12.7% in 1996. Jollibee was able to compensate for this increase by corresponding increase in sales and hence this need not be a cause of concern. On the other hand, all is not well with the financials of Jollibee. There was 28.9 million pesos of long-term debt outstanding at the end of year 1996. Cost of sales has increased each year with an increase of about 46% from the end of 95 to the end of 96. But during this same period, total sales only increased about 28.7%. This escalation in the cost of sales must be brought under control Accounts payable and accrued expenses increased by about 156% from 94 to 96. In addition, earnings per share decreased 19% to 0.68 pesos per share from 94 to 96. Jollibee has debt and some financial instability; however it is not something they can't overcome. They have 24 stores in foreign countries, which account for roughly $9 million in sales. This is an encouraging sign as far as Jollibee is concerned and they will be able to pay off their debts and loans. One thing they should consider doing is slowing down expansion. Jollibee should consider opening a store and giving it time to grow and turn a profit before it finances the opening of a new store. Opening new stores requires a lot of financing. They must study markets to determine a location, buy furniture, purchase kitchen appliances, and train new managers and employees. Opening multiple stores at the same time will hurt the bottom line and will increase debt. It took McDonald's 20 years for their international operations to account for 50% of total sales. Also, they must reduce cost of sales. During the period under study the cost of sales has increased at a faster pace than the sales increase, which is not acceptable. The company has good internal financial resources but a certain code should be maintained in the relationship with the franchisee. Also, the allocation of the financial resources needs to be done wisely and judiciously. This is where there has to be collaboration between the marketing and finance department. The feasibility (financial) of opening up a new store needs to be studied before going ahead with the decision. c. Operations Management Perspective From the very beginning Jollibee Foods Corporation had focused on delivering quality food and service at an affordable cost to the customers. This had been possible only due to excellent operational control.

They enjoyed a dominant position in the fast food market in Philippines until McDonalds entered the market. To take on McDonalds, they focused on their main asset, their knowledge of taste and preferences of the local population. This strategy paid off initially but slowly McDonalds caught up. To maintain their market share and counter the growing popularity of McDonalds Big Mac sandwich they came up with their USP, a large hamburger named Champ which contained a wide hamburger patty as against Big Mac which had two small patties. Once Jollibee Food Corporation was well established in Philippines, TTC's decision to expand overseas was a good bet. But due to their inexperience and wrong choice of partners they suffered losses in their initial foreign ventures. In Singapore there were too many partners thus hindering smooth operation. In Taiwan there were disputes over management of local operations. In a franchise arrangement standardisation of operations is the most essential factor. But in this case the local partner was objecting to the presence of company employees. ISSUES- HIRING OF AN OUTSIDER: Hiring a professional as Vice President of international operations was a wise decision. But he did not get adequate support from the company management to implement his ideas. Going in for franchising was a good decision because they lacked huge resources to open and run their own stores everywhere. Kitchner implemented a good strategy of assigning the responsibility of opening of new stores to a Franchise Service Manager. Thus FSM became the point of contact between the local partner and the company. This helped avoid disputes of management of local stores. FSM was also responsible to send the weekly data of store sale to the company. This helped them to monitor the performance of each of their stores. But as the international operations grew, disputes arose between the parent company and international operations on various issues such as varying the menu according to local taste, company logo etc. RECOMMENDATIONS: International operations should be completely separated from domestic ones. Strategy of varying the menu to local taste should be implemented. Smooth supply chain management system should be put in place to increase efficiency and productivity. In case of expanding the menu, economies of scale and operational efficiency should be kept in mind. Some items which increase inefficiency should be removed from the menu.

d. HR Perspective Regardless of location or culture, effective customer brand loyalty can be developed through human resource departments and the company's personnel. The most significant difference between domestic and international human resource management (HRM) seems to be that with domestic HRM there is a common standard practice that most companies are familiar with, whereas with international HRM, there are a variety of different laws and business practices that international companies have to consider. The similarities between these two types of HRM can be found on a more practical level of managing employees. Both serve to fulfil the goals, needs of employees, and to ensure that they have the necessary resources to successfully complete their duties. The first step to successful International HRM is an understanding of cultural differences and developing appropriate means of addressing these differences Jollibee ensures that it provides top-notch services in all its outlets. Jollibee's success can also be attributed to its organizational culture depicted through "fun and friendly environment". Through stringent recruitment and selection procedures, Jollibee ensures a service-oriented staff to man its outlets. Willing to pay above-average compensation, Jollibee ensures loyalty among its staff members and this translates into better service performance and dedication toward serving the customers. Training programs equip its staff with the necessary skills needed to better perform their tasks. By hiring professionals to devise strategies for its store operations, Jollibee is able to create a working environment that boosts high standards of professionalism and service excellence. However, there are other problems that Jollibee faces in the international expansion of its business. Thus we have analysed the case under the following heads: 1. Polycentrism at Jollibee 2. Tony Kitchner's Kafkaesque Desires 1. POLYCENTRISM AT JOLLIBEE The Jollibee Corporation follows the polycentric approach in partnerships. A polycentric approach recruits host country nationals to manage subsidiaries while parent country nationals occupy key positions at corporate headquarters. The Jollibee corp. has taken this a step further, and most of the key positions are held by family members. The cost of value creation could be greatly reduced using this method, and cultural imbalances can be reduced to a great extent. But this approach at Jollibee was perhaps not carried out effectively at Jollibee. The Joint Ventures at Singapore, Taiwan and Indonesia are case in point. The parent Filipino management at Jollibee was very keen on imposing themselves on the host management. Conflicts arose on day to day management issues. Jollibee could operate properly in Brunei as there was a silent partner. When going for Polycentric partnership as a strategy it is only imperative that a certain amount of flexibility and autonomy be provided to partners. Trust was lacking in the

relationships forged. The coordination required to transfer core competencies or to pursue experience curves and location economies was lacking. Instead of the formation of a transnational entity, what resulted was the formation of independent federations, trying to resist parental control. 2. TONY KITCHNER'S KAFKAESQUE DESIRES In Tony Kitchner's case, in his three years as head of the company's International Operations, his leadership manifested both sharp professionalism and abysmal international expansion efforts. Kitchner's institution of a dress code was apt, converting the company from one that looked like a neighbourhood chain to one with a multinational image. While his "planting flags" approach reflected an interest in giving the company greater reach within its region, Kitchner's egregious lack of planning and research made it a failure. He simply opened stores in various Asian cities on the assumption that Jollibee's success in the Philippines could be transplanted with little adaptation and these stores folded one after another as he discovered his error. In addition, his approach created strained relations between his Philippine staff and the International staff. Kitchner's three years could be summed up as a period of great ideas backed with too little research and foresight Although Tony Kitchner was hired to bring more structure to the International Division, he failed to build the rapport needed to push forward the division's initiatives. Kitchner began creating a "world-class company" by stealing employees from domestic operations a poor first impression that lasted the duration of his career at Jollibee. By setting the stage for competition, Kitchner ensured that his actions, even if they were beneficial for the company, would meet criticism from the domestic side. Kitchner should have recognized that the hostility coming from Domestic was underscored by a fear that their division would be eclipsed by International. Rather than cultivate this fear, Kitchner should have made it explicit that the International Division's success would have reflected on the company as a whole. By simply increasing communication, Kitchner could have enlisted Domestic's support in his endeavours. Under the company's early divisional structure, value-chain activities such as R&D and Finance were controlled by the Philippine operations. The failure to gain access to these resources hindered International's ability to modify the logo, store layout, and menu modifications, which were potentially beneficial for Jollibee. Kitchner fostered tension within the organization and it was ultimately this contribution that led to his dismissal. Kitchner never really understood the organizational culture at Jollibee. It would not be an exaggeration to opine that Kitchner was culturally challenged'. He failed to realize that a bulk of his interventions at Jollibee was paradigm shifts. Practices that were built over 16 years were shoved into oblivion in a matter of months. His performance during his three year stint is a marked reflection of inherent superiority complex that is usually associated with Western expatriates. He is a perfect example of the sea gull manager.' Recommendations

It is evident that Jollibee is following a transnational strategy. The recommendations from a HR perspective would be 1. A geocentric approach: Switch to a more flexible geocentric approach to staffing and partnerships. Seek the best people for key jobs throughout the organization regardless of nationality. Mr. Tony Kitchner was perhaps the first person who was chosen regardless of nationality, and the disaster that ensued was perhaps because of the overwhelming cultural myopia polycentricism imbibed. A geocentric approach is the best way to utilize Human Resources. A cadre of international executives who feel at home working in multiple cultures is the need of the hour if Jollibee has to expand. While the lower rungs of staffing can be citizens of the host country, the top level management should be people who have the expertise and the skill to push the operational effectiveness of Jollibee without having to compromise on organizational culture and effectiveness. 2. Management Development: International Business is increasingly using Management Development as a strategic tool. Jollibee needs a strong corporate culture, and informal management networks to assist in coordination and control. It also needs to understand local cultures before expansion. All this can be achieved through a proper emphasis on Management Development. An effective MDP can build a unifying corporate culture by socializing new managers and partners into the norms and value systems of the firm. Personal culture should be stripped; the company culture must be donned. Tony Kitchner was exhibiting his personal culture throughout. The organizational culture was forgotten. How else could friendliness, one of the pillars of the Jollibee brand be replaced by scathing competition, in the short three year period he was in charge? 3. Facilitate inter unit cooperation: The R&D wing of Jollibee was not forthcoming in its interactions with International. The creation of departmental silos' have often resulted the fall of Goliaths in business. Intra and inter unit communication cannot be ignored. Knowledge Management cannot occur in its absence. Various out bound and internal training exercises should be carried out in the Jollibee facility to iron out differences and inflict comradeship. The use of external corporate trainers in this regard would definitely be a plus. Small differences in management style and culture between the cooperating firms may become serious problems that make it difficult to create synergies, which ultimately lead to poor financial performance. Given the difficulty of identifying the organizational compatibility between two firms, it can be convenient to use some specific procedures to predict whether the relationship might work. Noli Tingzon A Fresh Look at Strategy The arrival of Noli Tingzon marks a critical juncture for Jollibee, where it will begin entering the US market. The key to Jollibee's success in Daly City will be its ability to find a local partner that can leverage its organizational advantage, while navigating the challenges of conducting business in the United States. Three Options for Expansion

 Papua New Guinea- Raising the Standard New Entrant into 3 store fast food chain Tingzon offered to put up all capital required Hong Kong- Expanding the Base 3 Store already established, possibility of a 4th one. High volume with Filipinos but not with residents (Chinese) 4th store location high traffic but few Filipinos California-Supporting the Settlers Success in Guam led them to believe US had potential Food Appealed to Filipinos and Americans Decided on Daly City-Large Filipino population Plans to appeal to Asian Americans and then Hispanic Americans

Recommendations PAPUA NEW GUINEA: There are five million people in Papua New Guinea with extremely limited fast food options. Jollibee can come in and set a high standard, attract many customers, and scare future investors away. However they would have to quickly add three to four stores to be competitive and cover costs. There was also question as to whether the area could handle 20 stores. Either they will get the first mover advantage or they will sustain huge loss. Since the benefits offered by the local partner are uncertain and profit potential is low, Jollibee should not seek to enter New Guinea at this time. HONG KONG: In Hong Kong, Jollibee are located near a very densely populated area, which has a very loyal Filipino customer base. These people gave them great business on the weekends, but sales fell off during the week because the local Hong Kong people rarely frequented the Jollibee establishment. Also, there were tremendous problems with the Chinese stores. All of the managers resigned and many employees quit because the Chinese like to work for Chinese. There was obvious friction between the Chinese and Filipino's. While the fourth store in Hong Kong represents a valuable learning opportunity, it will not generate the revenues needed to build a global empire. Catering to the local Chinese palette would allow Jollibee to build its competitive advantage by learning to balance flexibility in menu offerings with consistency

across the global brand. Additionally, a success in cosmopolitan Hong Kong could give Jollibee the brand exposure it needs to attract better partners. However, given the staffing issues and uncertainty involving the local Chinese customer, it would be better for Jollibee to improve its current operations, rather than to commit additional resources to a new store. CALIFORNIA: It will be a very good idea to target the Asian community living in U.S and California is the best place to start from. The intense competitive atmosphere of US fast food market will provide Jollibee tremendous opportunity of global learning. Furthermore, they also discovered that there were many elements of their restaurants that appealed to Americans. Similarly, there was great support from Filipino-Americans. Likewise, Jollibee was going to expand throughout California before it moved east. They were determined to gain recognition. Another helpful aspect is the diversification of America. In any given city a person can find Chinese, Italian, Greek, Spanish, Japanese, American, German, Polish, Indian, and other ethnic restaurants. Americans like to try food of different cultures and there is no reason to believe that we will not try Filipino food. There is very little reason to believe that Jollibee cannot successfully enter the fast food market in the United States. But on the other hand, United States is home to some of Jollibee's most formidable competitors. As a late-mover, it will be difficult for Jollibee to obtain access to the distribution channels, suppliers, and store locations which allowed it to become a cost leader in the Philippines. Additionally, aside from its experience in Guam, Jollibee does not have any real experience operating in a Western business environment. Conclusion: Implementation Plan a. New product-new market JFC could introduce new product develop targeting the foreign market. The new products that they had introduced in the Philippines could also be applicable to the international market. These stores should be particularly targeted towards the Filipinos working overseas. b. Increase depots in the domestic and other countries JFC could establish additional depot near Jollibee stores. Through this, they could be able to reduce logistics costs thus leading to cost efficiency. Such a measure will ensure the freshness and high quality of the products that they will deliver to the international stores. In addition, they could avoid high shifting cost from the Philippines to other countries. They can also enter into joint venture agreement with other country in establishing new depot abroad. That is for JFC to be able to have ready knowledge about the external factors governing the country. c. Maintaining market dominance To attain market dominance, Jollibee should concentrate on increasing the presence in international markets. The international market will only need a good communication plan like

tailor made ads, PR articles, good promotional plans in getting the newly introduced products known, and focusing on pushing products, getting it known, and creating loyal customers. Besides, the transfer of the local taste buds would not be that quick going to international markets. Also, the company should improve on its research and development from new markets, potential acquisitions and new products to be developed. For each of the other business units, JFC should communicate the company culture through company conventions to ensure that the company interests are achieved. Advertising campaigns though do not always have to be Jollibee sponsored. As a suggestion, the other business units should focus on environment publicity, compared to Jollibee's ads for humanity and youth As the macro environment changes, the company should be responding by aligning its strategy and structure according to these changes. The group feels that company should take baby steps rather than the aggressive steps as those taken by Kitchner, owing to the financial constraints .The company should try to ride on the learning curve and experience from different markets. The company should try to resolve the internal conflicts and should have a focused vision.

The Jollibee Phenomenon

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. The Yumburger store 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 fo r sustained expansion locally and beyond the Philippines.

Undisputed Leadership
As the countrys leading fast food chain, Jollibee has grown exponentially on all aspects on operation. From a handful of stores 32 years ago, Jollibee now boasts of more than 600 stores and over 50 international stores.

Expanding Market Coverage

To achieve its long-term goal to be the countrys food service leader, Jollibee acquired Greenwich Pizza in 1994. A year later, the company obtained the franchise of Delifrance, an international food company. These moves expanded Jollibees penetration in the pizza-pasta and French cafe-bakery segments. In 2000, the strategic acquisition of Chowking solidified the companys position as the dominant leader. The move gave it leadership in the Oriental quickservice restaurant segment.

Recipe for Success

Jollibees rapid growth is due to its superior menu line-up, creative marketing programs, and efficient manufacturing and logistics facilities. It is made possible by well-trained teams that work in a culture of integrity and humility, fun and family-like. As a corporate citizen, Jollibee is also committed to give back to its host communities through meaningful and lasting socio-civic projects. A Triumph for and of the Filipino Jollibee dedicated its continuous success to the Filipinos who have been there from the very start. Jollibee is so well-loved everytime a new store opens, especially overseas, Filipinos always form long lines to the store. It is more than home for them. It is a stronghold of heritage and monument of Filipino victory.

Investors
THE JOLLIBEE GROUP OF COMPANIES
JFC Sales Up 16.5%, Net Income Lower by 4% Metro Manila, Philippines, August 15, 2011 Jollibee Foods Corporation (PSE: JFC) Results for the quarter and six months ended June 30, 2011 The following are the highlights of JFCs results of operation for the quarter and six months ended June 30, 2011: Quarter 2 % Change 2011 2010 vs LY 20,463 17,571 16.5% 15,585 13,357 16.7% 996 980 1.6% 715 744 -4.0% 693 743 -6.8% YTD June 30 % Change 2011 2010 vs LY 39,206 33,910 15.6% 29,554 25,639 15.3% 1,853 1,836 0.9% 1,345 1,435 -6.3% 1,314 1,433 -8.3%

Financial Summary System Wide Retail Sales Revenues Net Operating Income Net Income Net Income Attributable to Equity Holders of the Parent

Earnings per Common Share Basic Earnings per Common Share Diluted

0.673 0.728 0.671 0.726

-7.6% -7.6%

1.277 1.403 1.269 1.395

-9.0% -9.0%

*Amounts in PhP Millions, except % change and Per Share Data Jollibee Foods Corporation, the countrys largest food service company disclosed today that its System Wide Sales, a measure of sales to cosumers, both from company-owned and franchised stores grew by 16.5% in the second quarter of 2011 compared to the same period last year. Revenues grew in line with system wide sales at 16.7%. Net operating income in the second quarter increased by 1.6% versus the same period last year, which was comparable to the flat growth achieved in the first quarter this year.

Officers and directors

Tony Tan Caktiong Chairman of the Board, President, Chief Executive Officer Ysmael V. Baysa Chief Finance Officer, Vice President for Corporate Finance, Compliance Officer, Corporate Information Officer Jose A. Minana President - Jollibee Philippines Joseph Tanbuntiong President - Red Ribbon Philippines Business Unit Ernesto Tanmantiong Treasurer, Chief Operating Officer, Executive Vice President, Director Daniel Rafael Ramon Gomez Vice President of Corporate Marketing John Victor R. Tence Vice President - Corporate Human Resources Agatha Olga S. De Jesus Corporate Legal Counsel, Corporate Information Officer Untiong Tan Corporate Secretary, Director Thomas B. Allin Country Managing Director - China and Indonesia

ollibee
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2011)

Jollibee

Type Industry Founded

Public (PSE: JFC) Restaurants 1978 in Quezon City, Philippines

5th Floor, Jollibee Plaza, Emerald Ave. Headquarters Ortigas Center, Pasig City, Metro Manila, Philippines Key people Products Revenue Net income Tony Tan Caktiong, Founder, President & CEO Fast food US$ 1.32 billion (2008) US$ 52.2 million (2008) Chowking Greenwich Pizza Red Ribbon Mang Inasal jollibee.com.ph

Subsidiaries

Website

Jollibee Foods Corporation/Leonardo Castillo Cuarteros (PSE: JFC) is the parent company of Jollibee, a fast-food restaurant chain based in the Philippines. Among JFC's popular brands

are Jollibee, Chowking, Greenwich, Red Ribbon, Caffe Ti-amo, Mang Inasal (70%) and Burger King (54%) .[1] Since its inception, Jollibee has become an increasingly profitable fast-food chain with 686 restaurants in the Philippines and 57 in other countries employing 29,216 workers.[2] Including all its brands, JFC has 1,804 stores worldwide and total sales of more than US$1 billion as of December 2008[citation needed]. In addition to its subsidiaries, JFC was the Philippine franchise holder of Dlifrance until late2010, when both companies severed their ties[citation needed]. All former Dlifrance branches now operate as CafeFrance, which is owned and operated by Euro-Med Laboratories Philippines, Inc.[3] To date, the first branch of Jollibee is still operating in Coronet, Cubao under the Jollibee Foods Corp.

Contents
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1 History o 1.1 Expansion and acquisitions 2 Products and locations 3 Mascot 4 Jollitown TV show 5 Awards 6 References 7 External links

[edit] History

Jollibee mascot

In 1975 Tony Tan Caktiong and his family opened a Magnolia Ice Cream parlor[4] in Cubao.[5] Sometime in 1978, Caktiong and his brothers and sisters engaged the services of a management consultant, Manuel C. Lumba. Lumba shifted the business focus from ice cream to burgers,[4] after his studies showed that a much larger market was waiting to be served. Lumba became Caktiong's first business and management mentor. The Jollibee mascot was inspired by local and foreign children's books. Lumba created the product names "Yumburger" and "ChickenJoy". He had the company incorporated and leased a house on Main St. in Cubao, Quezon City as the first headquarters. Lumba formulated a longterm marketing strategy: listing up a number of consumer promotions and traffic building schemes. Caktiong stressed that developing internal strengths was critical. The stores were redesigned, the service transformed into a full self-service, fast-food operation with drive-throughs. Not long after, Caktiong and Lumba went on an observation tour in the United States, attended food service and equipment conventions. Caktiong placed Lumba in charge of franchise development.[citation needed]

[edit] Expansion and acquisitions

A Jollibee restaurant at Central, Hong Kong

The company acquired 80% of Greenwich Pizza in 1994, enabling it to penetrate the pizza-pasta segment. From a 50-branch operation, Greenwich has established a strong presence in the food service industry. In early 2006, Jollibee Foods Corp. bought out the remaining shares of its partners in Greenwich Pizza Corp., equivalent to a 20% stake, for P384 million in cash.[6] In 2000, the company acquired Chowking, allowing Jollibee to be part of the Asian quick service restaurant segment.[7][8] In 2007, Jollibee acquired the Chinese fast-food chain Hongzhuangyuan.[9] Jollibee purchased 70% of Taipei restaurant Lao Dong in June and Chun Shui Tang tea house in 2006. In 2004, Jollibee acquired Chinese fast food chain Yonghe Dawang for $22.5 million. Jollibee entered into a joint-venture contract with US-based Chow Fun Holdings LLC, the developer and owner of Jinja Bar Bistro in New Mexico, in which Jollibee will have a 12% stake for $950,000.[10][11][12] On August 26, 2008, Jollibee formally signed a P2.5 billion ($55.5 million) deal with Beijingbased Hong Zhuang Yuan through its wholly owned subsidiary Jollibee Worldwide Pte. Ltd. The sale is subject to the approval of China's Ministry of Commerce. On October 19, 2010, Jollibee acquired 70% share of Mang Inasal, a Filipino food chain specializing in barbecued chicken, for P3 billion ($68.8 million).[13][14][15] The same month, Jollibee signed a deal to acquire 55 percent of China's Guangxi San Ping Wang Food and Beverage Management Co. Ltd., operators of the San Pin Wang beef noodle business for 30 million RMB.[16] On October 1, 2011, Jollibee acquired a 54% stake in BK Titans, Inc., the sole owner of the Burger King franchise in the Philippines.[17]

[edit] Products and locations

International presence of Jollibee stores

Jollibee is an American-style fast-food restaurant with Filipino-influenced dishes specializing in burgers, spaghetti, chicken and some local Filipino dishes.[18][19][20][21][22] In the Philippines, Jollibee serves Coca-Cola products for its beverages; in overseas markets, the chain serves Pepsi products. Currently the largest fast-food chain in the country, it also has locations in the United States, Saudi Arabia, Hong Kong, Vietnam, Indonesia, United Arab Emirates and Brunei.

Asia
o o o o o o o o o

Brunei Hong Kong Indonesia Philippines (main hub) Saudi Arabia Taiwan United Arab Emirates Vietnam Qatar

North America o United States

[edit] Mascot
Jollibee, the large bee mascot dressed in a blazer, shirt, and chef's hat introduced by the brand in 1980 is probably the most widely recognized character in the Philippines.[23]
Name Year introduced Represents Field Appearance

Jollibee 1980

Main franchise mascot

Mascot Appearance(Every Leader of Jollibee Weekends), Concerts, Jollitown, Jollibee Kids Party (discontinued) (discontinued)

Chickee Lady Moo Mico

1987 & 1993, discontinued 1993, discontinued 1985, discontinued

Chickenjoy

Milkshakes

(discontinued)

(discontinued)

Milkshakes Champ Premium hamburger Yumburger

(discontinued)

(discontinued)

Champ 1984

(discontinued)

(discontinued) Concerts, Jollitown, Jollibee Kids Party

Yum

1989

Hi-Technology

Twirlie 1988

Jolly Twirl , Sundae Concerts, Jollitown, Jollibee Kids Singing & Dancing and Jollibee Float Party Jolly Crispy Fries Games , Sports , and Jokes Cheerleader Concerts, Jollitown, Jollibee Kids Party Concerts, Jollitown, Jollibee Kids Party

Popo

1985

Hetty

1984

Jolly Spaghetti

[edit] Jollitown TV show

Main article: Jollitown

On April 13, 2008, a children's television program called Jollitown was launched by Jollibee and friends. The timing was chosen to highlight Jollibees 30th anniversary. Jollibee and his friends Yum the scientist, Twirlie the star performer, Hetty The chearleader and Popo the gym coach are the stars of the show, which airs Sundays, 9:30 a.m. or 8:00 on GMA Network.[24] The show left GMA on November 14, 2010. On July 17, 2011, Jollitown moved to ABS-CBN for its 4th season every Sunday at 9 am (every Sunday). The season's concept is based on Time traveling.

[edit] Awards

Jollibee has won many accolades. It has consistently been mentioned as one of the Philippines' and Asia's most admired companies in surveys conducted by publications such as Asian Business Magazine and The Asian Wall Street Journal and has received other plaudits from Euromoney and Asia Money. In 2008, it was also the recipient of the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Awards.[25][26][27]

HISTORY of JOLLIBEE
1975 First to become the Jollibee outlet was when Mr. Tony Tan and his family opened a Magnolia Ice cream parlor at Cubao. 1978 Birth of Jollibee Foods Corporation Jollibee Foods Corporation is incorporated as a 100% Filipino Company Bakery is established in Cubao Jollibee posts first year sales of P2 million 1979 Introduction of Spaghetti Special At Ronquillo Sta. Cruz, the first franchised owned store was opened 1980 First TV commercial was launched by Jollibee Chickenjoy and French Fries are launched by Jollibee. Introduction of Jollibee mascot debuts 1981 Jollibee Foods Corporation enters list of Top 1000 Corporations. There were ten Jollibee stores at the end of the year 1982 Jollibee pioneers the use of in-store promotions, novelty premium items and Kiddie Birthday packages for kids. Introduction of Jollibee Palabok Fiesta 1983 Launching of the Jollibee Langhap-Sarap TV ad Campaign Chickee and Lady Moo join the Jollibee mascots 1984 Launching of the Champ hamburger Jollibee believes market leadership in local fast food industry and enters list of Top 500 Corporations. Mascots Champ and Hetty joined the Jollibee family WEA gives Jollibee Gold record award for the outstanding sales of Jollibee songs.

1985 Jollibee becomes the market leader of the fastfood industry Introduction of Breakfast Joys Langhap-Sarap awarded most successful ad campaign in the food category during the 9th Philippine Advertising Congress 1986 In Barcelona,Spain, Jollibee wins the 9th International Foods Award from El Comestible Given by the Philippine Marketing Association, Tony Tan wins the Agora Award for entrepreneurship Jollibee Foods Corporation has been included to the Top 250 Corporation list First Jollibee international store in Taiwan has been opened Chunky Chicken Sandwich has been added to the Jollibee menu 1987 Second Taiwan Jollibeestore opens Sales of 570 million pushes Jollibee into the elite Top 100 Corporations Jollibee marks its entry into the global market as its opens its first fast food outlet in Brunei 1988 Successful launching of Jolly Twirls softserve Ffurther leading market share of 31% in the fast food industry and a dominant 57% share in the hamburger segment Jollibee system wide sales hit P921 million Celebration of Jollibee's 10th year anniversary Tony Tan is named one of the Ten Outstanding Manilans. Jollibee wins the Anvil Award for outstanding PR campaign in relation to the achievement of marketing objective with its Filipino Talents campaign. 1989 Second Jollibee Brunei store opens Balut and Ligaw TV commercials wins the Kidlat Award in the Service and Leisure Products category during the eleventh Philippine Ad Congress Ffirst fast food chain to surpass billion-peso sales mark since Jollibee sales hit P1.3 billion marks 1990 Coleslaw, Jolly Hotdog, Chickenjoy Take-Me-Out and Peach mango Pie to has been added to Jollibee's menu Jollibee post sales of P1.8 billion Tony Tan is awarded the Triple Award by AIM as Outstanding AIM Alumnus Jollibee receives the Excellence in Marketing Management Award from the Asian Institute of Management 1991 Jollibees 100th store opens in Davao City Jollibee opens a record high of 35 new stores

 Opens 1st store outside Luzon in Cagayan de Oro City Jollibee Pancakes and Jolly Meals has been launched Jollibee sales hit an enormous P2.65 billion The Lola TV commercial wins the Grand Araw Award and an award of excellence for the promotion of Filipino Values during the Philippine Ad Congress. Jollibee receives award for the outstanding Corporate Safety Consciousness Programs by the Safety Organization of the Philippines (SOP). 1992 Jollibee sales hit the P3.365 billion Started using frozen patties for its popular hamburgers Improved softserve ice cream line by offering fruit flavored ice cream Acquired 73% if the Hamburger segment Opened another store in Jakarta, totaling to 2 stores in Indonesia 112 Jollibee stores nationwide Maintained its advantage over its competitors by acquiring more than 50% share of the fast food industry 1993 July 13, JFC was listed in the Philippine Stocks Exchange with an initial offering of P9.00 per share October 1993, JFC share are being sold for P20.00, a windfall or more than 135% Improved softserve ice cream line by offering fruit flavored ice cream. Ffocusing on Jollibees loyal customers, Marketing launched its At Home Ako sa Jollibee ad campaign Kiddie Pack Promo has been introduced The new Main Office site has been moved to Jollibee Centre Building in Ortigas Center, Pasig 1994 By the end of the year, there has been already 148 Jollibee stores nationwide With the achievment of Greenwich Pizza Corporation Jollibee expands into the pizza-pasta segment By the Far Eastern Economic Review, Jollibee has been cited as one of the leading companies in Asia 1995 Jollibee acquires franchise of Delifrance 20 more stores opened in the Philippines, bringing the total to 168. Jollibee successfully opens stores abroad: Guam, Dubai, United Arab Emirates, Kuwait, and Jeddah, and Kingdom of Saudi Arabia. 1996 200th Jollibee store in Malolos, Bulacan has been opened By the Far Eastern Economic Review Jollibee has been cited again as one of the leading companies in Asia The company reengineers its visual identity system

 Jollibee system wide sales increased to P8.29 billion which translates to a market share of more than 50% among all hamburger fast food chains Jollibee had 208 stores nationwide Marys Chicken was born last July 10. It is a semi-self service restaurant and another Jollibee subsidiary. The company reengineers its visual identity system Launching of Jollibee's Amazing Aloha Hong Kong opens its first Jollibee store Jollibee launched various projects, such as Maaga ang Pasko sa Jollibee and Chikiting Patrol: at Home Ako Dito. These projects' main objective was to protect and contribute to the development of the Filipino children 1997 System wide sales increased to P11.17 billion Jollibee Xiamen located in the Peoples Republic of China has been opened Jollibee launched "Kaya mo Kid" project which aims to instill positive values, which helps children achieve their dreams and ambitions 1998 Jollibee opens in Daly City Jollibee's 20th year anniversary celebration Opened 62 stores nationwide, bringing the total to 300 stores. In Balagtas, Bulacan Jollibee opens its 300th store Jollibee receives the ISO 9002 Certification for its frozen patty line Jollibee wins the Employer of the Year Award 1999 Opened 50 stores nationwide which makes a total of 350 stores Cheezy Bacon Mushroom Burger has been introduced to its line of specialty burgers 2000 31 more Jollibee stores opened, bringing the total to 381 stores Jollibee obtains Chowking Foods Corporation Far Eastern Economic Review ranked Jollibee as the Philippines' leading company for the 3rd straight year Asian Business Magazine ranks Jollibee as the Most Admired Company in the Philippines and the 3rd over-all in Asia, surpassed only by global giants General Electric and Microsoft. Systemwide sales reach P20 billion. 2001 400th Jollibee store in Intramuros has been opened System wide sales rose to 18.8% to 24.11 billion. Income, before non-recurring charges, to P959 million. Network expanded to 800 restaurants. 2002 Revenues neared the P27-billion mark. Number of stores exceeded 900.

 Tony Tan made MAP "Management Man of the Year" 2003 Jollibee store count closed to 988 stores nationwide. For the sixth straight year, the Far Eastern Economic Review ranked JFC as the Philippines' Leading Company. 2004 Mr. Tony Tan Caktiong, the Chairman and Chief Executive Officer of the company, was named the Ernst and Youngs 2004 World Entrepreneur of the Year

A Short Introduction for Jollibee Food Corporation

Among all the fast food chains here in the Philippines, the Jollibee Food Corporation is considered to be the most popular choice among all the Filipinos. The Jollibee Food Corporation has been serving us with their delectable collection of fast food, but what do we really know about the Jollibee Food Corporation? Where did Jollibee Food Corporation come from? When did Jollibee Food Corporation start? Who founded the Jollibee Food Corporation? Well heres a little history behind the most popular fast food chain in the Philippines. The Jollibee Food Corporation was founded by Tony Tan Caktiong and his family. And did you know that the Jollibee Food Corporation wasnt selling fast food back in the days, instead they sell ice creams, and it was named as Jolibe. But after sometime, they decided on getting the services of a management consultant in the person of Manuel C. Lumba. Lumba suggested that to shift their business of ice cream parlor to hamburgers after his studies showed that a much larger market was waiting to get tapped.And sure enough, their hamburgers became a hit for a lot of Filipinos. After this success, Lumba next reformed the name Jolibe to Jolly Bee and made the two words form a single name Jollibee. Then Lumba next created the product name "Yumburger" for their hamburgers as well as the name "Chickenjoy" for theirah you what it is.Because of the fame of the Jollibee Food Corporation, they have decided on incorporating some expansions and acquisitions. On 2000, the Jollibee Food Corporation acquired Chowking, allowing Jollibee to be part of the oriental quick service restaurant segment. Similarly, Jollibee also acquired Red Ribbon Bakeshop on 2005, another popular fast-food restaurant in the Philippines. In 2006, Jollibee Food Corporation acquired the Dlifrance which further expanded its penetration in the food service industry particularly in the French cafe-bakery, a growing segment of the Philippine food market. So there you have it, a small introduction of the history of Jollibee Food Corporation. For more information about the Jollibee Food Corporation, then visit Jollibee Food Corporation. Read more: http://www.articlesbase.com/gifts-articles/a-short-introduction-for-jollibee-foodcorporation-292013.html#ixzz1dfpXG9JK Under Creative Commons License: Attribution No Derivatives

Who would have guessed that a giant cartoon bee character could become the national symbol for delicious, affordable and fast food in the Philippines? Well, thats what began in 1975 when Tony Tan Caktiong opened an ice cream shop in Cubao, Quezon City. The results of his efforts has been nothing short of phenomenal. Though Jollibee began as an ice cream parlor, it was the move to diversify to more types of food like hamburgers that really put them on the map. In every major area in the Philippines, one can count on multiple Jollibees being around, ready to serve you a Yumburger, ChickenJoy, or your own personal favorite. According the the official Jollibee website, in less than 10 years, in 1984, Jollibee reached the 500 million piso sales milestone. Another 5 years later in 1989, Jollibee accomplished another amazing feat - reaching the 1 billion piso sales mark - and being the first fast food chain in the Phlippines to do so. Other notable accomplishments include becoming part of the top 100 corporations in the Philippines in 1987, and becoming the first food service company to be listed in the Philippine Stock Exchange. The prestigious award of World Entreprenuer of the Year was given to founder Tony Tan Caktiong in 2004 for the inspiring work hes done. Additionally, the Far Eastern Economic Review has judged Jollibee as The Most Admired Company in the Philippines over the last 6 years. Whats the secret to the success of Jollibee? Is it the creative marketing and unique branding theyve pioneered in the the realm of fast food? Is it the focus on traditional Filipino culture and the fact that they try to still seem a local favorite despite the fact that theyre the nations most prevalent restaurant? Id say its a combination of all these things and more. Jollibee has indeed revolutionized the fast food industry in the Philippines. Today they satisfy the apetites of Filipinos everywhere with 600 stores in the Philippines and over 30 international stores.