Introduction a family oriented work environment, the brand’s values

Introduction
To Management

Strategic
Management Plan for Jollibee Foods Corporation

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Introduction

Jollibee is
the largest fast food chain in the Philippines, operating a nationwide network
of over 750 stores. A dominant market leader in the Philippines, Jollibee
enjoys the lion’s share of the local market that is more than all the other
multinational brands combined. The company has also embarked on an aggressive
international expansion plan in the USA, Vietnam, Hong Kong, Saudi Arabia,
Qatar and Brunei, firmly establishing itself as a growing international QSR
player.

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. At the heart of its success
is a family-oriented approach to personnel management, making Jollibee one of
the most admired employers in the region with an Employer of the Year Award
from the Personnel Management Association of the Philippines, Best Employer in
the Philippines Award from Hewitt Associated and a Top 20 Employer in Asia
citation from the Asian Wall Street Journal.

Aside from
promoting a family oriented work environment, the brand’s 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

PESTEL Analysis

 

POLITICAL

The operations of Jollibee are affected by the government
policies on the regulations of fast food operation. Currently government
are controlling the marketing of fast food restaurant because of health concern
such as cardiovascular and cholesterol issue and obesity among the young
and children in the country. Governments also control the license given for
open the fast food restaurant and other business regulation need to follow
such as for a franchise business. Good relationship with government in giving
mutual benefits such as employment and tax is a must for the company to
succeed in any foreign market. McDonalds should also protect its workers
by ensuring all the hiring, compensation, training or repatriation is
according to Philippines Labor Law as stipulated

 

ECONOMY

As a business entity, Jollibee need to face a lot of economic
variables outside its company or its macro environment. Dealing with
international sourcing for its material McDonalds should be aware on the global
supply and currencies exchange. Remember, McDonalds import most of its raw
material such as beef and potatoes due to local market cannot supply in
abundant to meet the demand of its product. Any upside of currencies especially
dollar will be impacting its cost of purchase. Working on the local country,
Jollibee must face government regulations on tax of profit where it gains from
the operation and other tax such as entertainment and restaurant service tax.
Each country may have different scale or types of tax available and Jollibee
should follow the regulation if it wants to continue the operation. As a
franchise, Jollibee should also pay certain percentage of the revenue to the
parent company in United States. The economic condition and growth of the
country also is an important indicator to the demand of products that Jollibee
offered. As the food priced slightly above normal foods, not many people will
have the income range to consume the products. Moreover if the economy is bad
and income per capita is affected, the demand of Jollibee product will
certainly going down. On the other hand the good economy also means disposable
income is more and people can spend more on more expensive food at fast food
restaurant

 

 

 

 

 

 

SOCIAL

While more people are able financially to eat at more
expensive outlet such as fast food restaurant, they have higher expectation.
They want to have quality in services and more conveniences that can
differentiate one restaurant from another. Young urban consumers want
technology in their life and facilities such as credit card payment, wireless
internet, cozy and relaxing ambient place, and other attraction for their
hangout and eating. All these needs should also be taken into consideration.
There is not much difference between cultural and the purchase of products in a
single country but for different countries cultural sensitivity should be
upheld. For example in India people (Hindu) do not take beef, Muslim countries
do not take pork, German like beers, Finnish like fish type of food menu,
Chinese like to associate food with something good (for example prosperity),
Asian like rice and Americans eat in big-sized menu. So far McDonalds has shown
good efforts in localization of its menu to suit local taste but it should
constantly survey and learn about local culture to better understand and design
the best product for them.Technological

TECHNOLOGY

For a fast food restaurant, technology does not
give a very high impact on thecompany and it is not a significant
macro environment variables. However Jollibeeshould be looking to competitors
innovation and improve itself in term ofintegrating technology in managing
its operation. For example in inventorysystem, supply chain management
system to manage its supply, easy paymentand ordering systems for its
customers and wireless internet technology.Implementation of technology
can make the management more effective andcost saving in the
long term. This will also make customer happy if cost savingsresults
in price reduction or promotional campaign discount which will benefitsthem
from time to time

 

 

 

 

 

 

 

 

 

 

 

Porter’s Five Forces

·     
Many alternatives and
substitutes available
·     
Price has a role
·     
Differentiated products
·     
Brand loyalty
·     
Convenience

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                       SWOT
ANALYSIS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

      
Recommendations

Short
Term Recommendations

The short term
recommendations for Jollibee revolve around Jollibee developing its full
potential to become the next global player in the fast food industry. While
Jollibee has had success in emerging economies such as the Philippines,
launching its brand in such an established economy, the United Kingdom, raises
concerns. The reception of Jollibee in the United Kingdom could very well
determine its fate in the entire international market. Jollibee needs to gain
insight into the culture of the UK through market research. Jollibee Foods
Corporation needs to understand the opportunities that exist in the UK market
segment as well as learn about how to adapt to this slow diffusion culture.

Long
Term Recommendation

The long term recommendations for
Jollibee concern the market entry strategy into the UK. In the past, Jollibee
has used franchising, acquisition, and joint ventures to expand globally. This
is evident through the franchising of Jollibee and Chow King stores throughout
Asia and the Middle East (Jollibee, 2014a). Jollibee acquired Greenwich Pizza
and has continued to grow that brand. Jollibee also has a joint venture with
Deli France which has continued success (Jollibee Foods Corporation, 2003). The
recommended strategy for entry into the UK would be through joint venture. A
joint venture could be possible with companies such as Burger King. Burger King
was hit hard by the recent horse meat scandal and has been struggling to pick
sales up ever since.

 

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