P O LY T E C H N I C U N I V E R S I T Y O F T H E P H I L I P P I N E S
Sa Jollibee, bida ang saya!
JOLLIBEE
MICRO AND MACRO ENVIRONMENTAL
ANALYSIS
Presented by:
DORADO, CHRISTINE QUEEN B.
BSBA-MM 1-1P
February 2021
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Background of the Company
Jollibee is a Filipino multinational chain of fast-food restaurants owned by Jollibee Foods
Corporation (JFC). It is operating a network of more than 1,400 stores and more than 270
international branches in the United States, Canada, Hong Kong, Macau, Brunei, Vietnam,
Singapore, Malaysia, Saudi Arabia, United Arab Emirates, Qatar, Oman, Kuwait, Bahrain, Italy,
and in the United Kingdom.
Its history roots way back in 1975, Tony Tan Caktiong and his family opened a Magnolia Ice
cream parlor in Cubao, Quezon City. The outlet later began offering hot meals and sandwiches
upon request from customers. When the food items became more popular than ice cream, the
family decided to convert the ice cream parlor into a fastfood restaurant which became the first
Jollibee outlet in 1978. Management consultant Manuel C. Lumba, advised the family on the
change in strategy. Initially Jollibee was named "Jolibe" but changed its name to "Jollibee".
The company that would be managing the chain of fast food, Jollibee Foods Corporation was
incorporated in January 1978. By the end of that year, there were seven branches in Metro
Manila. The first franchised outlet of Jollibee opened in Santa Cruz Manila in 1979.
In 1981 Jollibee Foods Corporation enters the list of Top 1000 Corporations in the Philippines
and ended the year with 10 stores. The following year, Jollibee pioneers the use of in-store
promotions, novelty premium items and Kiddie Birthday packages for kids. The chain also got
to introduce the Langhap-Sarap TV ad Campaign in 1983. They got more achievement year
after year and that is why year 1989, Jollibee sales hit the P1.3 billion mark, giving the brand
the distinction as the first fast food chain to surpass the billion-peso sales mark.
And that does not end there, through the years Jollibee gained billion of attention world-wide,
their sales are soaring up high as they grow more and more branches all over the country and
outside it.
Company Mission and Values
Mission
To serve great tasting food, bringing the joy of eating to everyone.
Values
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Customer Focus
Speed with Excellence
Humility to Listen and Learn
Spirit of Family and Fun
Integrity
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MICRO ENVIRONMENTAL ANALYSIS
Jollibee, known being the largest fast food chain brand in the Philippines
and in dominating the world, still has its micro environmental factors affect
its operations. The following SWOT analysis is what I’ve use to determine
the company’s strength as it conquers the line of the fast food chain in the
country, its weaknesses despite being on top, the opportunities it has given
and currently facing, and the threats that may affect them now and
in the future.
Strengths
Jollibee established a company that values family. At the heart of its success is a familyoriented 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 Quick Service
Restaurant player.
But of course, Jollibee do not just pave its way to the market nor to our hearts without its great
tasting products and quality systems. Jollibee’s growth is due to its delicious menu line-up –
like its superior-tasting Chickenjoy, mouth-watering Yumburger and Champ hamburger, and
deliciously satisfying Jollibee Spaghetti. And as it grows, there are more products and combos
it was able to introduce to the avid fans of Jollibee such as the mango pie, choco pie, coke
floats, and that burger steak that became famous as the best linamnam ulam Filipinos could
ever have. And all of these, it is made possible by well-trained teams that work in a culture of
integrity and humility, fun and family-like. Every Jollibee outlet welcomes customers with a
clean and warm in-store environment and friendly and efficient service.
Have you ever been through the dilemma of finding out a place to dine in and at the same time
satisfy your cravings, or do you always get the same answer from your children to the question
‘where do you want to go, baby?’ Yes, Jollibee is always the answer. It is because its image is
already a well-loved brand by all ages. A kid, a teen, a lady, a man, old couples, they all ended
up getting comforted and satisfied by this normal store that is ought for dining. It is because
Jollibee is not made for customer service but for customer satisfaction, as well for it has always
been key to Jollibee’s success. Never losing sight of its goals, that is how Jollibee has grown to
be one of the most recognized and highly preferred brands in the Philippines.
Their marketing strategy is what makes the company more loved too by the customers. They
choose the best endorsers like Anne Curtis, JoshLia, and Kris Aquino, they created the best
story in their TV commercials, and they have the live mascots do all the funny and witty
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interactions with the public. Have you ever gone through social media and saw these memes
and pictures?
Weakness
Health-related issues are the most faced criticism of the brand. Well, all fast foods are. Jollibee is
still a restaurant that offers not a bad quality of products, but they cannot be considered healthy
at all. And in relation to that fast-food is not preferred by all and it’s because many people always
fear that fast food causes obesity. Hence, the fact that the brand produces fast food would hinder
people to purchase from the store. And that what makes it a weak point for Jollibee to gain more
customers.
Opportunities
People has always been Jollibee’s opportunity. Because people are aware and people believe on
their products and services, they choose this brand of fast-food. No one can resist Jollibee
treats, especially children who is deeply in love with the thought of just going to the resto.
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Jollibee Foods Corporation has a first-mover advantage, so they should continue the search for
countries that has not been entered by the fast food industry or countries that has a few
competitors. It is a big opportunity for them because surely it will become profitable. As the
pioneer in that specific country in that line of industry, they can set the pace and standard based
on their advantage.
Threats
The brand sees a threat from many competitors and with the concept of healthy living being
adopted by many people. Competitors are given, and Jollibee is not just backing down with
these. They are established enough, and they are hard-working in the planning their marketing
strategies to overpower the competitors. The concept of diet related food and healthy living has
triggered people’s mind to switch over to a food that is prepared using less fat. That is why an
increase in healthy living among people are threatening to a fast-food chain like Jollibee as it
would see a decline in the customers.
MACRO ENVIRONMENTAL ANALYSIS
In this analysis, determining the Political, Economic, Social, and Technological factors is a best
tool to analyze the business externally.
Political Factors that Impact Jollibee Foods Corporation
Political Governance System and the Transition of Government and Changes in Policy affects
the operations of a company. As to Jollibee, some government policies would require them to
indicate nutritional factors for each meal they offer, it is due to the concern of improving the
health of the people or consumers. These protocols are inconsistent that make it hard not just
for Jollibee, but to other fast food chain in the country to make their operations flow easily.
Government policies like inconsistent taxation also greatly affects Jollibee Corp.
Economic Factors that Impact Jollibee Foods Corporation
Through the years, Philippines have been experiencing various economic changes that affected
many businesses and the local consumers. Jollibee is not excluded on the effect of high
inflation rate, unemployment rate, poverty that led to decreased level of household income, and
cost of business production. Because of these factors, it disabled many families to afford the
Jollibee products and they choose to eat and cook at home instead. And there has been a
decreased amount of potentially skilled employee to join the business operations.
Social Factors that Impact Jollibee Foods Corporation
Before establishing a new store in any region or country, Jollibee Corp carries out careful
analysis of the culture, religion, and social values of their new market. Jollibee is therefore
required to provide Halaal products in countries like KSA. Additional to that, the demographic
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trend seems to one key factors in demand forecasting of an economy. Jollibee Foods
Corporation, they needed to conduct thorough analysis first and consider the demographic
trends before launching new product developments and integrate features that cater to this
segment. The financial assistance, Jollibee provides to various welfare organizations through
helping the needy children of the Philippines impacted the good image and trust of the
customers to the brand.
Technological Factors that Impact Jollibee Foods Corporation
The technology is transforming every businesses like a force of nature. In order to make its
service more convenient and accessible on-line, especially now during pandemic crisis, Jollibee
build a centralized its express delivery service through the Globe Telecom. The hashtag project
is another factor that allows them to provide maximum customer benefit through the use of
technology innovation. With the vast changes in technological aspects, fast food industry, must
keep up on customers signing the credit bill through the use of smart phone’s app e.g., Gcash,
Paymaya, Bank transfer.
Conclusion and Recommendation
Jollibee, maintaining its good image in the eyes of the customers all over the country and
extending into various regions around the world, should always stick to their corporation’s
goals and embody their company’s tag line which says ‘Sa Jollibee, bida ang saya!’ They are
well-loved by the public and so they must always guarantee the satisfaction of their customers
first. Because without million of their customers, they would not get that billion of sales. They
should also strengthen their organizational development and expand their researches to be more
competitive and advance on the market and the market demands. But Jollibee, as though as
how they get on the top, they might face much bigger crisis than a pandemic, but I know the
company can sustain their competitive advantage for a very long time and still be the best
Langhap-Sarap and Bida ang Saya fastfood chain that we all love.
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References:
https://www.jollibee.com.ph/about-us/
https://en.wikipedia.org/wiki/Jollibee
https://embapro.com/frontpage/pestelcase/10981-caktiong-values
https://managementglossary.com/swot-analysis-of-jollibee/
https://freepestelanalysis.com/pestle-analysis-of-jollibee/
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