Jollibee: Fast-Food, the Filipino Way|Business Strategy|Case Study|Case Studies

Jollibee: Fast-Food, the Filipino Way

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Case Details:

Case Code : BSTR052
Case Length : 20 Pages
Period : 1985 - 2003
Organization : Jollibee
Pub Date : 2003
Teaching Note :Not Available
Countries : Philippines
Industry : Fast Food

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This case study was compiled from published sources, and is intended to be used as a basis for class discussion. It is not intended to illustrate either effective or ineffective handling of a management situation. Nor is it a primary information source.

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The Recipe for Success

Jollibee attributed its growth over the years to its efforts towards establishing a superior manufacturing and logistics framework; to the extra attention paid to the menu; to its marketing efforts; to Tony's strong leadership; and to its focused approach towards globalization. According to an article in the Asian Business Review, Jollibee also owed its success to its constant attention to three crucial issues: innovation, testing and piloting...

Operational Excellence

On the operational front, Jollibee's quest for excellence reflected right from the stage of construction of new outlets. The company used pre-fabricated material to construct stores, thus saving a substantial amount of time and money.

Jollibee had two commissaries located in Pasig City and Mandaue City. While the Pasig commissary catered to the Luzon area, the Mandaue commissary looked after the needs of the Visayas-Mindanao area. These two commissaries handled activities such as raw material and ingredient planning, warehousing, manufacturing of processed foods, distribution and logistics...

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Serving The Customers

At Jollibee, customer service was given a lot of importance. In fact, customer service was one of the key result areas (KRAs) on which employees were evaluated at the company. The importance given to this issue was also reflected in the company's corporate mission and vision statements (Refer Table I for Jollibee's values, mission and vision statements). The company advertised extensively through the print as well as the electronic media. While the national-level campaigns were handled centrally, local promotions were managed and implemented by individual stores...

Serving The Employees

At Jollibee, employees received extensive training so that they could learn the corporate values of integrity and humility. The company reportedly had a 'family-like' atmosphere at work, which gave the employees a sense of belonging and togetherness. Not surprisingly, Jollibee was ranked 16th in Asia and 1st in the Philippines in a 'best employers' survey conducted by Hewitt Associates, The Asian Wall Street Journal and FEER in September 2001. Claro F Certeza, Jollibee's Vice President (Corporate Affairs), said, "The high engagement scores garnered by Jollibee could well be a reflection of the symbolic relationship between management and employees where performance is seen as something that would ultimately rebound to everybody's growth and societal improvement..."

Serving The Franchises

Almost half of Jollibee's stores in the Philippines were franchised. The company gave special attention to the selection of franchising partners. According to company sources, all prospective partners were evaluated on their standing the community, their leadership and people-handling skills, their willingness to devote time to the management of the restaurant, and their successful completion of the training program [much before the outlets became operational, franchises were given training under a Basic Operations Training Program (BOTP)]. Jollibee's franchising partners had to invest between P15 and P30 million, depending on the size of the store and the facilities provided...

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