Risk Management Plan for Jollibee Foods Corporation's
European Expansion
Strategic Risk Management
for Jollibee European Expansion Launch Event 2025
In partial fulfillment of the course
BFINEL2X: Risk Management
Bachelor of Science in Business Administration Major in Financial Management
Prepared by:
Bon, C., Codecio, T. A., Francisco, H. S., Gelacio, K. A.,
Landicho, K., Rivera, W. I., Vidal, J. M.
Instructor:
Mr. Dwight D. Daquel
June 2024
Contents Page
1.0
2.0
3.0
4.0
5.0
6.0
7.0
Introduction and Context
1.1
Background/Event Scope
1.2
Organizational Details
Definitions
Stakeholders in Risk Management Plan
Risk Identification
4.1
Competitive Risk
4.2
Market Adaptation Risk
4.3
Operational Risk
4.4
Financial Risk
4.5
Regulatory Risk
4.6
Strategic Risk
Assessing Potential Risks
5.1
Likelihood of Risks
5.2
Consequences of Risks
5.3
Risk Matrix
5.4
Assessing Specific Risks
Evaluating and Treating Potential Risks
Risk Action Plan
1
1.0
Introduction and Context
Jollibee Foods Corporation is organizing the event/project titled Jollibee European Expansion
Launch Event which will take place on January 15, 2025.
The event's objective is to launch Jollibee's entry into the European market officially, establish a
brand presence, and create a positive first impression among European consumers. The event
aims to showcase Jollibee's unique menu offerings to emphasize its commitment to quality and
customer service and build momentum for the brand's growth in Europe.
The context within which this plan has been developed is the strategic expansion of Jollibee Foods
Corporation into the European market which addresses potential risks related to market competition
and internal operational challenges to ensure a successful and sustainable entry into this new
territory.
1.1
Background of the Event
Jollibee Food Corporation, a globally recognized fast-food chain originating from the Philippines,
has announced its strategic expansion into the European market. This move is part of the
company’s broader international growth strategy to increase its global footprint and tap into new
customer bases. The expansion is driven by the brand's success in other regions, including Asia,
North America, and the Middle East, and its goal to introduce its unique offerings, such as the iconic
Chickenjoy fried chicken and Filipino-inspired dishes, to European consumers, Inside Retail Asia.
Details of Activities
The expansion involves opening multiple Jollibee outlets across key European cities over
the next five years. Initial activities include market research, site selection, securing
necessary permits, and constructing and launching new stores. The brand will focus on
high-traffic areas to maximize visibility and customer engagement. In addition, marketing
campaigns tailored to European tastes and preferences will be rolled out to build brand
awareness and attract customers. Staff recruitment and training programs will ensure that
the new outlets maintain the high service standards associated with Jollibee,
MarketScreener.
Environment – Location & Layout
Jollibee's European expansion will primarily target major cities known for their vibrant food
cultures and high foot traffic. Initial locations include London, with a flagship store set to
open in Leicester Square, as well as other cities like Edinburgh, Cardiff, and Madrid,
MarketScreener. The layout of these stores will combine Jollibee's signature design
elements with localized features to resonate with the European market. This includes
spacious dining areas, contemporary interior designs, and customer-friendly layouts that
enhance the dining experience.
2
Activities Requiring Permits
Several activities in Jollibee's expansion plan will require permits and compliance with
local regulations. These include:
• Construction Permits which are necessary for building new store locations or
renovating existing spaces.
• Health and Safety Certifications to ensure that all food handling and preparation areas
meet stringent health and safety standards.
• Business Licenses that are required to legally operate the food service establishments
in each city.
• Signage Permits, for exterior signs and advertisements that comply with local zoning
laws and regulations.
• Environmental Permits to address waste management, energy use, and other
environmental considerations in line with European standards. Inside Retail Asia,
MarketScreener.
1.2
Organizational Details
Organization Coordinating the Event:
Individuals Responsible for the Event:
Contact Phone:
Email:
Name of Event:
Date of Event:
Setup Time:
Location of the Event:
2.0
Jollibee Foods Corporation
Event Manager/Coordinator, Marketing Manager
+63 2 8987 0700 Jollibee Foods Corporation
Headquarters
General Inquiries – info@jollibee.com.ph
Jollibee European Expansion Launch
2025
7:00 am – 4:00 pm
Leceister Square, London, United
Kingdom
Definitions
Risk
Risk Assessment
Risk Management
Risk Reduction
Risk Treatment
Risk Transfer
Risk Acceptance
The chance of something happening that will have an impact on objectives.
The overall process of risk identification, analysis, and evaluation.
The culture, processes, and structures directed towards realizing potential
opportunities, whilst managing adverse effects.
Actions taken to reduce the likelihood, negative consequences, or both,
associated with a risk.
The process of selection and implementation of measures to modify risk.
The process of selection and implementation of measures to modify risk.
Risk acceptance is the acknowledgment that there is a risk and of the
3
consequences that may result, which is accepted.
3.0
Stakeholder in Risk Management Plan
Investors and Shareholders
Interest: Maximizing return on investment, business growth, and profitability.
Risks: Financial losses if the expansion does not perform as expected, market volatility, and changes
in European economic conditions.
Mitigation: Regular updates on progress, clear communication of strategic plans, and robust financial
planning to ensure investor confidence.
Employees
Interest: Job security, career development, and workplace conditions.
Risks: Cultural integration challenges, job displacement due to market adaptation, and potential for
high turnover if local labor laws and practices are not well understood.
Mitigation: Comprehensive training programs, strong HR policies, and fostering a corporate culture
that respects local customs and practices.
Customers
Interest: High-quality food, consistent service, and positive brand experience.
Risks: Cultural differences affecting product acceptance, competition from local brands, and possible
negative publicity if expectations are not met.
Mitigation: Market research to understand local tastes, adapt the menu to local preferences, and
maintain high standards of customer service.
Suppliers and Partners
Interest: Stable business relationships, timely payments, and growth opportunities.
Risks: Supply chain disruptions, differences in business practices, and potential legal issues.
Mitigation: Establishing strong contracts, building reliable local supplier networks, and maintaining
transparent communication.
Regulatory Bodies
Interest: Compliance with local laws and regulations, including health and safety standards.
Risks: Non-compliance leading to fines, legal action, or shutdowns.
Mitigation: Staying informed on local regulations, employing local legal advisors, and ensuring all
operations meet regulatory standards.
Local Communities
Interest: Economic development, job creation, and positive social impact.
Risks: Resistance to foreign brands, environmental concerns, and social impact issues.
Mitigation: Engaging with the community through corporate social responsibility initiatives, creating
job opportunities, and contributing to local economic growth.
4
4.0
Risk Identification
Expanding Jollibee Food Corporation into Europe, particularly into countries like the UK, France, and
Italy, involves finding several strategic risks. These risks can be categorized based on the SWOT analysis of
Jollibee, highlighting its strengths, weaknesses, opportunities, and threats. Below are the key strategic risks
identified for Jollibee's expansion in Europe. Jollibee's expansion into Europe presents both opportunities
and substantial risks, addressing these strategic risks through careful planning, market research, and
adaptive strategies will be important for Jollibee's successful integration into the European market.
Leveraging its strengths, such as strong brand recognition and customer loyalty in other regions, while
mitigating its weaknesses and threats, will determine its long-term success in Europe.
4.1
Competitive Risk
The European fast-food market is highly competitive with established players like McDonald's, KFC, and
Burger King dominating the landscape. Jollibee must compete against these well-entrenched brands that
have strong brand recognition and customer loyalty. The competitive risk includes:
• Brand Recognition
Jollibee is relatively unknown in many European markets compared to its competitors. Building
brand awareness and loyalty will require substantial marketing efforts and financial investment.
• Price Competition
Competing with established brands that have optimized their cost structures might force Jollibee to
lower prices which potentially affects its profit margins.
4.2
Market Adaptation Risk
Adapting Jollibee's menu to suit European tastes while maintaining its iconic Filipino flavors is crucial. The
risk involves:
• Cultural Preferences
There is a risk that Jollibee's traditional menu items may not resonate with local tastes European
consumers have different dietary preferences and habits.
• Health Consciousness
There is an increasing demand for healthier food options in Europe so Jollibee's menu, which
heavily offers fried foods, might face resistance from health-conscious consumers.
4.3
Operational Risk
Operational risks pertain to the internal processes, supply chain, and human resources that are crucial for
successful expansion. These include:
• Supply Chain Management
Ensuring a consistent supply of high-quality ingredients can be challenging, especially with
potential import restrictions and tariffs in a post-Brexit Europe.
• Quality Control
Maintaining consistent food quality across all new locations is important previous quality control
issues could resurface and damage the brand’s reputation.
5
4.4
Financial Risk
Financial risks include the capital required for expansion and the potential return on investment. These risks
encompass:
• High Initial Investment
The cost of setting up new stores, marketing, and hiring staff in Europe can be substantial which
indicates that the return on this investment is uncertain and depends heavily on the brand's
acceptance in new markets.
• Economic Conditions
The economic environment in Europe, including factors like inflation, exchange rates, and
economic downturns, can impact Jollibee's profitability and operational costs.
4.5
Regulatory Risk
Navigating the regulatory environment in different European countries is a significant risk. This includes:
• Compliance with Local Laws
Different countries have varying regulations regarding food safety, labor laws, and business
operations which means that non-compliance can lead to fines, legal issues, and operational
disruptions.
• Protectionist Policies
Growing protectionism in some European countries could lead to higher tariffs and import
restrictions, affecting the cost of ingredients and overall profitability.
4.6
Strategic Risk
Strategic risks involve the broader business strategy and market positioning. These include:
• Brand Differentiation
Establishing a unique value proposition in a crowded market is crucial, so Jollibee must differentiate
itself through unique offerings and marketing strategies.
• Expansion Pace
Expanding too quickly without adequate market research and preparation can lead to operational
inefficiencies and financial losses.
6
5.0
Assessing Potential Risk
After identifying the potential strategic risks associated with Jollibee Food Corporation’s expansion into Europe, it is crucial to assess these risks to
understand their impact and likelihood. This assessment involves evaluating each risk on a two-dimensional matrix that considers the likelihood of the
event occurring and the scale of its possible consequences.
5.1
Likelihood of Risks
The likelihood of each identified risk is rated using the following scale:
Level
A
B
C
D
E
F
Descriptor
Almost certain
Likely
Moderate
Unlikely
Rare
Never
Description
Expected to occur in most circumstances
Will probably occur in most circumstances
Should occur at some time
Could occur at some time
May occur only in exceptional circumstances
It is not foreseeable that this will occur
5.2
Consequences of Risks
The consequences of each identified risk are rated using the following scale:
Level
1
2
3
4
Descriptor
Insignificant
Minor
Moderate
Major
5
Catastrophic
Description
No injuries, low financial loss
First aid treatment, medium financial loss, contained release
Medical treatment required, high financial loss, on-site release with assistance
Extensive injuries, major financial loss, off-site release with no detrimental effects,
loss of production capability
Death, huge financial loss, toxic release off-site
5.3
Risk Matrix
The risk matrix below combines the likelihood and consequences to produce a level of risk. This matrix helps visually represent the severity of each
risk and determine which risks need immediate attention and which can be managed with routine procedures.
7
Likelihood
A
B
C
D
E
Consequences
Almost certain
Likely
Moderate
Unlikely
Rare
1
S
M
L
L
L
2
S
S
M
L
L
3
H
S
S
M
M
4
H
H
H
S
S
5
H
H
H
H
S
Legend:
H
high risk, detailed research, and management planning are required at senior levels.
S
significant risk, senior management attention is needed.
M
moderate risk, management responsibility must be specified.
L
low risk, managed by routine procedures.
5.4
Assessing Specific Risk
The following table summarizes the assessment of specific risks identified for Jollibee Foods Corporation’s expansion, combining likelihood and
consequences to determine the overall risk level.
Risk
Competitive Risk
Market Adaptation Risk
Operational Risk
Financial Risk
Regulatory Risk
Strategic Risk
Legend:
H
S
M
L
-
Likelihood
B (likely)
C (possible)
B (likely)
C (possible)
D (unlikely)
C (possible)
Consequence
3 (moderate)
3 (moderate)
4 (major)
4 (major)
4 (major)
3 (moderate)
Risk Level
S
S
H
H
S
S
high risk, detailed research, and management planning required at senior levels.
significant risk, senior management attention needed.
moderate risk, management responsibility must be specified.
low risk, managed by routine procedures.
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Table 4:
Risk Register
Risk Treatment:
Reviewed by:
Function / Activity:
Compiled by:
Date:
Category
Existing Controls Consequence
Rating
Likelihood
Rating (1-5)
Level of Risk
Risk Priority
Competitive HR 3
policies, training,
and development
Hire local experts, 4
regular audits
4
High
High
3
Medium
High
Local
supplier 5
networks,
contingency plans
Product
3
Innovation, quality
control,
advertising
campaigns
Food
safety 4
protocols, training
and certification,
quality audits and
inspections
3
Medium
High
4
High
High
3
High
High
Operational
Regulatory
Operational
Risk
(what Consequences Likelihood
and how can it
(1-5)
happen)
Operations
Staff shortages, 3
high turnover
rates
Regulatory
Fines,
legal 3
Compliance
issues, delays
Issue
in operation
Supply Chain Stock shortage, 3
Disruptions
increased cost
Strategic
Brand
Differentiation
Operational
Quality Control
Brand dilution, 4
brand
equity
erosion, market
and advertising
costs
Reputational
3
damages, legal
liability,
employee
morale,
and
turnover
Date:
9
6.0
Evaluating and Treating Potential Risks
Table 5:
Compiled by:
Reviewed by:
Function / Activity:
Risk Treatment Schedule and Plan
Date:
Date:
Risk
Possible
Treatment
Options
Preferred
Options
Risk Rating
BEFORE
Treatment
Risk
Rating
AFTER
Treatment
Operations
Streamline
workflows,
automation, training
Diversify suppliers,
increase inventory
Automation
High
Medium
Diversify
suppliers
High
Policy updates, staff
training, compliance
software
Market research,
pilot programs, s
Regular
maintenance,
equipment
upgrades
Customer feedback,
agile
product
development
Compliance
software
Supply Chain
Disruptions
Regulatory
Compliance
Strategic
Operational
Market
Adaptation
Cost/Benefit
Analysis
A – Accept
B – Reject
A - High cost, high
benefit
Person
Responsible for
Implementation
Time – Table
How will it be
monitored?
HR Manager
Medium
A - Medium cost,
high benefit
Supply Chain Manager
Monthly
performance
reports
Quarterly supply
chain audits
Medium
Low
A - Medium cost,
high benefit
Training Manager
3-6 months
ahead
of
expansion
5-6
months
before market
entry
3 months before
launch
Pilot programs
High
Medium
Legal Team
Regular
maintenance
Medium
Low
A - high cost, high
benefit
Low-cost, highbenefit
Agile product
development
High
Medium
Medium cost, high
benefit
Marketing Manager
Manager
Before market
entry
2-3
months
before market
entry
Bi-annual
compliance
checks
Bi-monthly
strategy meetings
Weekly
maintenance
reports
2-3
months
before market
entry
Monthly customer
surveys
and
product reviews
10
7.0
Risk Action Plan
Once risks are categorized as High, Extreme, or deemed unacceptable, they must undergo a thorough evaluation, followed by the development of
tailored action plans to effectively mitigate, and manage these risks. Also, active changes to action plans are ensured by ongoing monitoring and
reviewing these high-risk regions regularly, upholding strong risk management techniques.
Table 6: Risk Action Plan Table
RISK ACTION PLAN
1
Item
Operations
Risk
Summary (recommended response & They must create and put-up particular plans to reduce risks associated with workforce problems that have been recognized. This
impact)
involves succession planning, training, recruitment, and retention programs that are designed to address possible issues.
Risk Handling Strategy
Proposed Actions
Resource Requirements
Responsibilities
Timing
Reporting/Monitoring
Risk Avoidance / Risk Reduction / Risk Transfer / Contingency Planning
Develop specific strategies and measures to reduce identified risks.
Plan for workforce needs in new locations or markets to ensure adequate staffing levels.
Provide comprehensive training programs for new and existing employees to ensure they are prepared for their roles in new
locations.
Implement performance management systems to monitor employee performance, provide feedback, and recognize achievements
during the expansion phase.
Workforce Planning and Recruitment
Training and Development
Human Resource Expertise
The HR department is tasked with executing workforce planning, ensuring local labor regulations are met, and implementing
comprehensive training programs tailored to European market requirements. Operations managers are responsible for maintaining
operational standards, fostering a safe work environment, and conducting regular assessments to mitigate workforce-related risks
during the expansion phase.
Conduct strategic workforce planning well in three (3) months ahead of expansion.
Conduct training sessions sufficiently for six to eight (6-8) months of store openings or operational launches to ensure employees
are fully prepared.
Review and complete contractual agreements related to employment, operational setup, and supplier contracts in accordance with
European legal standards.
Implement performance review processes to assess its workforce performance, adherence to its operational standards, and
alignment with Jollibee's policies and procedures.
Establish mechanisms to monitor employee satisfaction and engagement levels during the expansion phase. Conduct surveys,
focus groups, or one-on-one interviews to gather feedback on workplace culture, management practices, and overall satisfaction.
11
Item
Risk
Summary (recommended
response & impact)
Risk Handling Strategy
Proposed Actions
Resource Requirements
Responsibilities
Timing
Reporting/Monitoring
RISK ACTION PLAN
2
Supply Chain Disruption
To mitigate supply chain disruptions, Jollibee needs to diversify its suppliers, maintain safety stock, and establish
contingency plans for unexpected events. This will ensure its continuity of supply and minimize operational disruptions.
Avoid/Reduce/Share/Prevent
- Establish relationships with multiple suppliers.
- Maintain safety stock of critical inventory.
- Develop contingency plans for supply chain disruptions.
- Supply Chain Management
- Inventory Management Systems
- Logistics and Distribution Expertise
The Supply Chain department will manage supplier relationships, maintain safety stock levels, and develop contingency
plans, while the Operations department will handle logistics and distribution to prevent disruptions.
- Establish supplier relationships six (6) months before expansion.
- Maintain safety stock three (3) months before operational launches.
- Develop and test contingency plans three (3) months in advance.
- Monitor supplier performance and inventory levels monthly.
- Conduct quarterly reviews of the contingency plan.
- Communicate regularly with suppliers and logistics partners to address potential issues early.
RISK ACTION PLAN
Item
Risk
Summary (recommended
response & impact)
Risk Handling Strategy
Proposed Actions
Resource Requirements
3
Regulatory Compliance
To avoid legal and financial penalties, Jollibee needs to ensure its compliance with local and international regulations.
This includes monitoring its regulatory changes, conducting compliance audits, and providing training on regulatory
requirements.
Avoid/Reduce/Share/Prevent
- Monitor changes in regulations.
- Conduct regular compliance audits.
- Provide ongoing training for employees on regulatory requirements.
- Legal Expertise
- Compliance Auditors
- Training and Development Programs
12
Responsibilities
Timing
Reporting/Monitoring
Item
Risk
Summary (recommended
response & impact)
Risk Handling Strategy
Proposed Actions
Resource Requirements
Responsibilities
Timing
Reporting/Monitoring
The Legal department will monitor regulatory changes and guide compliance, while the Compliance department will
conduct audits and provide training to ensure adherence to regulations.
- Monitor regulatory changes continuously.
- Conduct compliance audits biannually.
- Provide regulatory training sessions quarterly.
-
Track regulatory changes and update compliance policies within one month of any changes.
Review audit findings and implement corrective actions within two months.
Annually evaluate training program effectiveness.
RISK ACTION PLAN
4
Brand Differentiation
To maintain a competitive edge, Jollibee needs to enhance its brand differentiation strategies. This includes focusing
on their unique marketing campaigns, consistent brand messaging, and innovative product offerings.
Avoid/Reduce/Share/Prevent
- Create unique marketing campaigns.
- Ensure consistent brand messaging.
- Develop innovative product offerings.
- Marketing Team
- Brand Management
- Product Development Team
The Marketing department will create and execute campaigns, while the Brand Management team will ensure
consistent messaging, and the Product Development team will focus on innovative offerings.
- Quarterly launch of new marketing campaigns.
- Monthly review and update brand messaging.
- Biannually develop and test new products.
- Monthly monitor marketing campaign effectiveness.
- Conduct biannual brand perception surveys.
- Quarterly evaluate new product success.
13
Item
Risk
Summary (recommended
response & impact)
Risk Handling Strategy
Proposed Actions
Resource Requirements
Responsibilities
Timing
Reporting/Monitoring
RISK ACTION PLAN
5
Quality Control
Jollibee needs to ensure rigorous quality control to maintain their product standards and customer satisfaction. This
includes their regular audits, staff training, and stringent supplier requirements.
Avoid/Reduce/Share/Prevent
- Conduct regular quality control audits.
- Provide training programs for staff on quality control procedures.
- Establish stringent quality requirements for suppliers.
- Quality Control Team
- Training Programs
- Supplier Management Systems
The Quality Control team will conduct audits and ensure standards, while the HR department will provide training, and
the Procurement team will manage supplier quality requirements.
- Monthly conduct quality control audits.
- Quarterly provide quality control training.
- Biannually evaluate supplier quality.
- Monthly monitor quality control audit results.
- Annually review training program effectiveness.
- Conduct biannual supplier evaluations.
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References:
Enerva, Kaycee. (2024, April 8). Jollibee to open hundreds of new stores in ambitious worldwide push. Inside
Retail. https://insideretail.asia/2024/04/08/jollibee-to-open-hundreds-of-new-stores-in-ambitious-worldwidepush/
MarketScreener. (2021, June 1). Jollibee Foods Corp. announces plans to expand in Europe.
MarketScreener.
https://www.marketscreener.com/quote/stock/JOLLIBEE-FOODS-CORPORATIO6494491/news/Jollibee-Foods-Corp-Announces-Plans-to-Expand-in-Europe-33447133/
Pereira, Daniel. (2023, May 9). Jollibee SWOT
https://businessmodelanalyst.com/jollibee-swot-analysis/
Analysis.
Business
Model
Analyst.
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