Case Study on Jolibee
BUS488: Strategy
Assignment 2 - Individual Assignment 1
July 2011 Presentation
PREPARED BY
Question 1
Analyzing Jollibee’s internal environment requires evaluating the firm’s portfolio of resources and capabilities. And these key factors lead to the development of Jollibee’s core competencies or its competitive advantage. To analyze its internal environment, I’ll be applying the RCCI (Resources, Capabilities, and Core Competencies) model as this model is the most suitable for this industry.
Tangible Resources:-
Financial Resources • Base on the data given from 1998-2004, Jollibee has shown profitability, its net income margin improve significantly from 1.3 billion pesos to 1.6 billion pesos in 2004. This is partly due to the introduction of more varieties to their existing menu and acquisitions of other fast-food chains which has contributed to the growth.
• To allow the firm to general more internal funds, Jollibee was listed on the Philippines Stock Exchange. This helps to lay the groundwork for internationalization as well as the expansion of chains domestically.
Organizational Resources • In order for the business to operate and coordinate more efficiently in the domestic network, Jollibee decentralize the organization into 4 regional business units (RBUs) according to major geographical markets. This structure allows timely decision making and ensured a more manageable business size and span of control.
• Employees to the firm also play a key role in contributing to the success of Jollibee and the management recognizes that maintaining high standards in the service industry underlie the key factor to success. Therefore, trainings programs were structured on the basis of the defined high standard requirements and all employees are required to attend the comprehensive training to meet the company standards. The trainings programs can result in several benefits. It equips the employees with better skills and knowledge as
Assignment 2 - Individual Assignment 1
July 2011 Presentation
PREPARED BY
Question 1
Analyzing Jollibee’s internal environment requires evaluating the firm’s portfolio of resources and capabilities. And these key factors lead to the development of Jollibee’s core competencies or its competitive advantage. To analyze its internal environment, I’ll be applying the RCCI (Resources, Capabilities, and Core Competencies) model as this model is the most suitable for this industry.
Tangible Resources:-
Financial Resources • Base on the data given from 1998-2004, Jollibee has shown profitability, its net income margin improve significantly from 1.3 billion pesos to 1.6 billion pesos in 2004. This is partly due to the introduction of more varieties to their existing menu and acquisitions of other fast-food chains which has contributed to the growth.
• To allow the firm to general more internal funds, Jollibee was listed on the Philippines Stock Exchange. This helps to lay the groundwork for internationalization as well as the expansion of chains domestically.
Organizational Resources • In order for the business to operate and coordinate more efficiently in the domestic network, Jollibee decentralize the organization into 4 regional business units (RBUs) according to major geographical markets. This structure allows timely decision making and ensured a more manageable business size and span of control.
• Employees to the firm also play a key role in contributing to the success of Jollibee and the management recognizes that maintaining high standards in the service industry underlie the key factor to success. Therefore, trainings programs were structured on the basis of the defined high standard requirements and all employees are required to attend the comprehensive training to meet the company standards. The trainings programs can result in several benefits. It equips the employees with better skills and knowledge as
References: 1. Business Strategy In Asia, A casebook by Kulwant Singh, Nitin Pangarkar, Loizos Heracleous – Third Edition – Case study on Jollibee Foods Corporation 2. http://www.docshare.com/doc/122235/Jollibee-Foods-Corporation-Strategic-Manageme 3. http://www.scribd.com/doc/36991796/1628 4. http://www.docstoc.com/docs/14423409/Jollibee [pic]