Presentation By:

Darshan Shah Rupin Bhardwaj

Meetraj Singh Bindra

Sumit Pal Singh Sehgal Simranjit Singh Punia

Philippines Overview
Population: 105,720,644 (July 2013 est.)

Area: 300,000 sq. kilometers

GDP per capita: $4100 (2011 est.) Population Density: 318.11 per Sq. Km Currency: Philippine Peso GDP: $423.7 Billion (2012 est.) Major Cities: Manila (capital) 11.449 million; Davao 1.48 million; Cebu City 845,000; Zamboanga 827,000 (2009) Main Industries: electronics assembly, garments, footwear, pharmaceuticals, chemicals, wood products, food processing, petroleum refining, fishing

Jollibee Overview
Began in 1975 as an ice-cream Parlor Tony Tan Caktiong CEO Fast Food Industry - Started the hamburger business because of 1977 oil crisis Headquartered in Pasig City, Philippines Revenue raised by 15% over 2011: P 3.72Billion Employs 40,000 people worldwide

Philippines, Thailand, Singapore, Indonesia, Hong Kong, United States and China

Vision
We are the best tasting Quick Service Restaurant(QSR)
The most endearing brand that has ever been We will lead in product taste at all times We will provide excellent customer service in every encounter Happiness in every moment By year 2020, with over 4,000 stores worldwide, Jollibee is truly a GLOBAL BRAND (and the Philippines will be admired worldwide)

Jollibee Philosophy The Five Fs: Friendliness Flavorful Food Fun atmosphere Flexibility on catering to customer needs

Focus on Families

Growth

Growth

Growth 2012
- Best fast food chains in the world by

2011

Purchased Chowking stores -Purchased 54% share of BK Titans, Inc. (Philippines), - Obtained 50% of San Pin Wang in China * Over 750 stores in Philippines and 468 stores in foreign countries

New York based Magazine - Jollibee is the largest fast food chain in the Philippines, operating a nationwide network of more than 750 stores. -The company has also embarked on an aggressive international expansion plan, and currently has 79 stores outside the Philippines including USA, Vietnam, Brunei, Hong Kong, Qatar and Kuwait.

2013

Jollibee Mascot
Inspired from McDonalds clown character Ronald McDonald and local and foreign children books. A mascot or a Logo is a powerful intangible strategic device that represents the companys core identity. In case of Jollibee the human-like bee symbolises the sweetness of honey and lighthearted happy spirit of the Pilipino.

International Operations

Philippines, USA, Hong Kong, Vietnam, Saudi Arabia, UAE, Brunei

Role of Geography
Workforce - The Filipino workforce is one of the most compelling advantages the Philippines has over any other Asian country. Strategic business location - The Philippines is located right in the heart of Asia. Abundant resources - Philippines offers diverse natural resources, from land to marine to mineral resources. Low cost of doing business: Wages are typically less than a fifth of that in the United States. Local communication, electricity, and housing costs are also 50% lower compared to the US rates. Developing Infrastructure for global growth: A well-developed communication, transportation, business, and economic infrastructure links the three major islands -- Luzon, Visayas, and Mindanao

Role of Culture
Rice is the main diet of the Filipino's diet and Jollibee was successful to implement rice products such as Rice cakes in its menu. The Filipinos lifestyle is changing and they are moving towards fast food. Jollibee is a Filipino pride. Jollibee values Family Great tasting product and quality system

Expansion Strategy
High Fast Food Market International Expansion strategy Plant the flag Large Filipino Population

Target Expats

Swot Analysis
Strengths Responsiveness to competition (Market sensing capabilities). Advantage in local Philippine market. Strong financial resources. Well-developed operations management capability (ability to provide quality products at affordable prices). Diversity in product offering after the acquisition of Greenwich Pizza and joint venture with Deli France. Weakness Absence of proper protocol to select franchisees in target market (country). Too much dependence on Filipino expatriates and inability to cater to the needs of the local residents of other countries. Weak promotional campaigns in international markets to promote Jollibee as a global brand. Lack of communication within the organization during the formation of International Division which led to infighting amongst the two divisions. Bias towards friends and relatives while selecting local franchisee partners. Lack of cross cultural management.

Opportunities
Untapped locations with fewer or negligible competition from fast food chains. Widen product range to include more local food items. Make new acquisitions of profitable food chains in other countries. Create differentiation by cost advantage, customer experience etc.

Threats
Dining habits of local people e.g. more preference to dining than fast food. Shift of preferences of people to more health conscious items. High set up cost due to high standard of living. Rise in operational cost like cost of power, labor etc.

Jollibee Philippines
Employment Number one fast food company Exports contribute 30% of gross domestic product. That means the bulk of the Philippine economy is driven by consumer spending -- and a lot of its takes place in Jollibee's stores.

Competition

Competition Analysis
Jollibee is the giant when it comes to Fast food industry in Philipines, It gained advantage because of :
Entering the Market first

Retaining tight control over operation management which allowed it to offer low price to customers.
Having flexibility to cater to the local taste of customers.

Innovative products

Globalization - Challenges
Filipino companies have little exposure to competition with foreigners Expansion through M&A: Talent management and best practices difficult to streamline Higher labour costs, lower margins Competition from well established global firms with deep pockets Limited Markets with overseas Filipino communities Expansion into rapidly growing fast-food market: China, Indonesia, Vietnam, Middle-East Improve operational efficiency and adjust to local tastes Revenue split: International/Domestic Current Target 20:80 50:50

Management Issue
Cultural Difference- Cultural differences existed among teams working at domestic and at international centers.
Operational management : In Jollibee Inc., several disputes where rising in operational management due to improper co-ordination between the parent company and the international operations. Profitability issue: A stable and efficient financial management system is very essential for the success of any firm. Change in Management Tingzons entrance

Current Strategy

Over 750 stores in the Philippines Over 100 stores in the US (CA,NV,NY) 9 stores in Brunei 12 stores in Vietnam 3 store in Hong Kong

Current Strategy
Expansion into China Acquired Chinese restaurant food chain Hongzhuangyuan Bought 15% share of a Chinese style fast food Yonghe King Expansion in California

Jollibee allocates 1% of its net profits to foundations to fund its in all work ares : Community and leadership development Scholarship and feeding programs Relief aid during disaster Grand Gifting Bash Gifts to over 400 children's from metro Manila

SALAMAT