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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EXCERPTS Contd...

Serving The Country

Jollibee supported many social causes in the Philippines. It worked with various government agencies to provide services such as immunization and medicine distribution. It also took part in polio-eradication programs. In association with the country's Social Welfare Department, Jollibee employed many hearing-impaired youth at its stores. Jollibee conducted a toy and book collection drive named 'Ma-Aga ang Pasko sa Jollibee' to give gifts to underprivileged children across the Philippines...

Leadership

According to company watchers, Jollibee's success would not have been possible without a person like Tony at the helm. Not content with expanding the business from a strategic perspective, Tony involved himself in the business at the grassroots level, to the fullest extent possible.

For instance, he regularly participated in the weekly meetings held to test new products and product-variants. He also frequently visited various Jollibee stores, ensuring that decisions taken at the board-level were actually implemented at the store-level. This hands-on style laid the foundations of a confident, happy and fun-filled corporate culture at the company...

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Globalization

Jollibee's decision to expand globally seemed to have been necessitated partly by the economic recession plaguing South East Asian countries in the late 1990s. While McDonald's decided to 'slow down' within the Philippines, Jollibee seemed to have adopted a dual approach - continue expanding internally in a limited way while exploring the option of tapping new countries. Tony said, "In the light of the shifting competitive environment, we have taken a broader, more global view of our business. We are leveraging the preeminent position of the Jollibee concept and our mastery of food- service technologies to cater to more market segments..."

What's Cooking?

In January 2002, Jollibee acquired 90% equity of the California-based, Japanese fast-food restaurant Tokyo Teriyaki House (TTH) for P 19 million. This off-shore diversification was aimed at strengthening the company's overseas operations. Jollibee immediately began working towards expanding TTH, and by the end of the year it opened the second TTH outlet.

Company sources revealed that TTH might be extended to Philippines as well in future. For 2002, Jollibee outlets recorded a significant improvement in sales and profitability figures. The company posted a net income of P 1.05 billion on consolidated revenues of P 20.34 billion...

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Global Expansion - In The Soup?

Jollibee planned to open more stores in Nevada, Hawaii and New York during 2003-04. Commenting on the decision to continue expanding globally, Tony said, "An important source of growth for our corporation is the expansion of our international business."However, analysts were skeptical about the company's chances of success outside Asia...

Exhibits

Exhibit I: Jollibee - Store Network
Exhibit II: A Brief Note on the Fast-Food Business in Philippines
Exhibit III: Jollibee - Consolidated Statements of Income (1997-2001)
Exhibit IV: Jollibee - Consolidated Balance Sheets (1997-2001)
Exhibit V: Jollibee - Awards & Recognitions
Exhibit VI: Jollibee - Product Profile
Exhibit VII: A Typical Jollibee Outlet


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