Jollibee Strama

History of Jollibee Foods Corporation
Jollibee is a phenomenal success story: when beganTony Tan Caktiong and his family opened a Magnolia Ice Cream parlor from Bankerohan, Davao City to Cubao in 1975 with Jolibee as the original name. Sometime in 1978, Caktiong and his brothers and sisters engaged the services of a management consultant, Manuel C. Lumba. Lumba shifted the business focus from ice cream to hamburgers, after his studies showed that a much larger market was waiting to be exploited. Lumba became Caktiong's first business and management mentor. Lumba next re-formed the name Jolibe to Jolly Bee and made the two words form a single name, Jollibee, changing the "y" to an "i". They also offering hot meals and sandwiches became incorporated in 1978 with seven outlets to explore the possibilities of a hamburger concept. Thus was born the company that revolutionized fast food in the Philippines.
The Jollibee mascot was inspired by local and foreign children's books. Lumba next created the product names "Yumburger" and "Chickenjoy". He had the company incorporated and leased a house on Main St. in Cubao, Quezon City as the first headquarters. Lumba formulated a long-term marketing strategy: listing up a number of consumer promotions and traffic building schemes. Caktiong stressed that developing internal strengths was critical. The stores were re-designed, the service transformed into a full self-service, fast-food operation with drive-through. Not long after, Caktiong and Lumba went on an observation tour in the United States, attended food service and equipment conventions. Caktiong placed Lumba in charge of franchise development

In 1984, Jollibee hit the P500 million sales mark, landing in the Top 500 Philippine Corporations. In 1987, barely 10 years in the business, Jollibee landed into the country’s Top 100 Corporations. It became the first Philippine fast food chain to break the P1 billion sales mark in 1989. In 1993, Jollibee became the first food service company to be listed in the Philippine Stock Exchange; thus broadening its capitalization and laying the groundwork fo r sustained expansion locally and beyond the Philippines.
As the country's leading fast food chain, Jollibee has grown exponentially on all aspects on operation. From a handful of stores 32 years ago, Jollibee now boasts of more than 600 stores and over 50 international stores. To achieve its long-term goal to be the country’s food service leader, Jollibee acquired Greenwich Pizza in 1994. A year later, the company obtained the franchise of Delifrance, an international food company. These moves expanded Jollibee’s penetration in the pizza-pasta and French café-bakery segments. In 2000, the strategic acquisition of Chowking solidified the company’s position as the dominant leader. The move gave it leadership in the Oriental quick-service restaurant segment.
Jollibee’s rapid growth is due to its superior menu line-up, creative marketing programs, and efficient manufacturing and logistics facilities. It is made possible by well-trained teams that work in a culture of integrity and humility, fun and family-like. As a corporate citizen, Jollibee is also committed to give back to its host communities through meaningful and lasting socio-civic projects.
Jollibee dedicated its continuous success to the Filipinos who have been there from the very start.
Jollibee is so well-loved every time a new store opens, especially overseas, Filipinos always form long lines to the store. It is more than home for them. It is a stronghold of heritage and monument of Filipino victory.
JOLLIBEE FOODS CORPORATION TIMELINE
1975
* Mr. Tony Tan and his family opens a Magnolia Ice cream parlor at Cubao. This is later to become the 1st Jollibee Outlet.
1978
* Bakery is established in Cubao. * Jollibee posts 1st year sales of P2 million * Jollibee incorporates as a 100% Filipino-owned company, with seven Jollibee fast- food restaurants within Metro Manila as initial network and the Yumburger as flagship product.
1979
* Spaghetti Special is introduced * 1st Franchise owned store opens at Ronquillo Sta. Cruz.
1980
* Jollibee launches its 1st TV commercial. * Jollibee Chickenjoy and French Fries are launched. * The well-loved Jollibee mascot is conceived to support brand awareness and identity efforts. Other mascots are later introduced. * Jollibee launches Chickenjoy, which becomes one of its best-selling menu items.
1981
* Jollibee Foods Corporation enters list of Top 1000 Corporations. * Jollibee ended the year with 10 stores
1982
* Jollibee pioneers the use of in-store promotions, novelty premium items and Kiddie Birthday packages for kids. * Palabok Fiesta is introduced.
1983
* The Langhap-Sarap TV ad Campaign is launched. * Chickee and Lady Moo join the Jollibee mascots
1984
* Champ hamburger is launched. * Jollibee enters list of Top 500 Corporations and assumes market leadership in local fast food industry. * Mascots Champ and Hetty join the Jollibee family * WEA gives Jollibee Gold record award for the outstanding sales of Jollibee songs.
1985
* Jollibee becomes the market leader of the fastfood industry * Breakfast Joys are introduced. * Langhap-Sarap awarded most effective ad campaign in the food category during the 9th Philippine Advertising Congress
1986
* Jollibee wins the 9th International Foods Award from El Comestible in Barcelona,Spain * Tony Tan wins the Agora Award for entrepreneurship given by the Philippine Marketing Association. * Top 250 Corporation list include Jollibee Foods Corporation * Jollibee opens its 1st international store in Taiwan * Jollibee adds Chunky Chicken Sandwich in its menu.
1987
* 2nd Taiwan store opens. * Sales of 570 million pushes Jollibee into the elite Top 100 Corporations * Jollibee opens 1st fast food outlet in Brunei, marking its entry into the global market.
1988
* Jolly Twirls softserve is successfully launched. * Jollibee system wide sales hit P921 million, further leading market share of 31% in the fast food industry and a dominant 57% share in the hamburger segment. * Jollibee celebrates 10th year anniversary. * Tony Tan is named one of the Ten Outstanding Manilans. * Jollibee wins the Anvil Award for outstanding PR campaign in relation to the achievement of marketing objective with its Filipino Talents campaign.
1989
* 2nd Brunei store opens. * Balut and Ligaw TV commercials wins the Kidlat Award in the Service and Leisure Products category during the 11th Philippine Ad Congress. * Jollibee sales hit P1.3 billion marks, first fast food chain to surpass billion-peso sales mark.
1990
* Jollibee adds coleslaw, Jolly Hotdog, Chickenjoy Take-Me-Out and Peach mango Pie to its ever-growing menu. * Jollibee post sales of P1.8 billion * Tony Tan is awarded the Triple Award by AIM as Outstanding AIM Alumnus. * Jollibee receives the Excellence in Marketing Management Award from the Asian Institute of Management.
1991
* Jollibee’s 100th store opens in Davao City * Jollibee opens a record high of 35 new stores * Opens 1st store outside Luzon in Cagayan de Oro City. * Jollibee launches its Pancakes and Jolly Meals. * Jollibee sales hit a whopping P2.65 billion. * The Lola TV commercial wins the Grand Araw Award and an award of excellence for the promotion of Filipino Values during the Philippine Ad Congress. * Jollibee receives award for the outstanding Corporate Safety Consciousness Programs by the Safety Organization of the Philippines (SOP).
1992
* Jollibee sales hit the P3.365 billion * Started using frozen patties for its popular hamburgers * Improved softserve ice cream line by offering fruit flavored ice cream. * Acquired 73% if the Hamburger segment * Opened another store in Jakarta, totaling to 2 stores in Indonesia. * Jollibee have 112 stores nationwide. * Maintained its advantage over its competitors by acquiring more than 50% share of the fast food industry.
1993
* July 13, JFC was listed in the Philippine Stocks Exchange with an initial offering of P9.00 per share * October 1993, JFC share are being sold for P20.00, a windfall or more than 135% * Improved softserve ice cream line by offering fruit flavored ice cream. * Marketing launched its At Home Ako sa Jollibee ad campaign, focusing on Jollibee’s loyal customers. * Introduced the Kiddie Pack Promo. * Moved to Jollibee Centre Building in Ortigas Center, Pasig, the new Main Office site.
1994
* 148 Jollibee stores nationwide by the year end * Jollibee expands into the pizza-pasta segment with the acquisition of Greenwich Pizza Corporation. * Jollibee is cited as on of the leading companies in Asia by the Far Eastern Economic Review
1995
* Jollibee acquires franchise of Delifrance * 20 more stores opened in the Philippines,bringing the total to 168. * Jollibee successfully opens stores abroad: Guam, Dubai, United Arab Emirates, Kuwait, and Jeddah, and Kingdom of Saudi Arabia.
1996
* Jollibee opens its 200th store in Malolos, Bulacan * Jollibee is cited again as on of the leading companies in Asia by the Far Eastern Economic Review * The company reengineers its visual identity system * Jollibee system wide sales increased to P8.29 billion which translates to a market share of more than 50% among all hamburger fast food chains. * Jollibee had 208 stores nationwide. * July 10: Mary’s Chicken was born; a semi-self service restaurant and another Jollibee subsidiary. * The company reengineers its visual identity system * Amazing Aloha was launched. * 1st Jollibee store in Hong Kong opens. * Jollibee launched various projects, such as Maaga ang Pasko sa Jollibee and Chikiting Patrol: at Home Ako Dito. These projects’ main objective was to protect and contribute to the development of the Filipino children.
1997
* System wide sales increased to P11.17 billion. * Jollibee International opened Jollibee Xiamen located in the People’s Republic of China. * Jollibee launched “Kaya mo Kid” project which aims to instill positive values, which helps children achieve their dreams and ambitions.
1998
* Jollibee opens in Daly City * The company celebrates its 20th year anniversary * Opened 62 stores nationwide, bringing the total to 300 stores. * Jollibee opens its 300th store in Balagtas, Bulacan * Jollibee receives the ISO 9002 Certification for its frozen patty line * Jollibee wins the Employer of the Year Award
1999
* Opened 50 stores nation-wide; total of 350 stores. * Introduced the Cheezy Bacon Mushroom Burger to its line of specialty burgers. * Far Eastern Economic Review cites Jollibee as the Philippines� leading business corporation.
2000
* 31 more Jollibee stores opened, bringing the total to 381 stores. * Jollibee acquires Chowking Foods Corporation * For the 3rd straight year, Far Eastern Economic Review ranked Jollibee as the Philippines’ leading company. * Asian Business Magazine ranks Jollibee as the Most Admired Company in the Philippines and the 3rd over-all in Asia, surpassed only by global giants General Electric and Microsoft. * Systemwide sales reach P20 billion.
2001
* Jollibee opens its 400th store in Intramuros * System wide sales rose to 18.8% to 24.11 billion. Income, before non-recurring charges, to P959 million. Network expanded to 800 restaurants.
2002
* Revenues neared the P27-billion mark. Number of stores exceeded 900. * Tony Tan made MAP “Management Man of the Year”
2003
* Jollibee store count closed to 988 stores nationwide. * For the sixth straight year, the Far Eastern Economic Review ranked JFC as the Philippines’ Leading Company. * Jollibee celebrates its 25th year
2004
* The Chairman and Chief Executive Officer of the company, Mr. Tony Tan Caktiong was named the Ernst and Young’s 2004 World Entrepreneur of the Year. * Jollibee opens its 500th store in Basilan * Jollibee inaugurates its biggest and most modern commissary in Camelray Industrial Park in Canlubang, Laguna with PGMA as guest of honor
2005
* TTC named World Entrepreneur of the Year by Ernst and Young.
2006
* ETM receives Corporate Citizen Award of the year from CNBC Asian Business Leaders Awards
2007
* Jollibee opens 600th store in Aparri, Cagayan Jollibee opens Las Vegas outlet
2008
* Jollibee launches Jollitown, the first children’s TV show in the country to be produced by a fastfood chain * TTC and ETM are featured by BBC and CNBC Managing Asia, respectively * JOLLIBEE marks 30th anniversary * JOLLIBEE bested some of Asia Pacific’s biggest multinationals as it bagged the FMCG and F & B Asia Pacific Supply Chain Excellence Award at the SCM Logistics Excellence Award held in Singapore * Zenith Foods Corporation, the commissary plant of JFC, was adjudged the National winner of Meat Processing Plant AAA category in the search for Best Meat Establishment of the National Meat Inspection Service. * Jollibee strengthens US network with the opening of three new stores * JOLLIBEE wins Award of Excellence in Philippine Quill Awards for Media Relations Program(30th anniversary campaign) * JOLLIBEE bags CMMA and three Araw Values Award * Jollibee stages first ever holiday musical special for children dubbed “A Magical Christmas at Jollitown” * Jollibee and the Jollibee Franchisees Association launched the 30th anniversary special novelty offering – Hug and Share Doll. Proceeds of the sales will all be donated to charity. * Biggest and grandest MaAga ang Pasko caps off Jollibee’s 30th anniversary. Total of more than 117,000 toys and books collected were the highest ever in the campaign’s 14-year history.

Mission and Vision Statement Fred David, in his book Strategic management; Concept and Cases enumerated key factors in making a mission statement. He recognized that a mission statement goes beyond being a statement, for it is a declaration of the company’s attitude and outlook. The mission statement of Jollibee Foods Corporation (JFC), although it meets the primary objective of a fast food chain, is too concise and gives sole emphasis to its current services. Thus, the space for improvement was narrowed down to simply food catering to the target market, taking for granted the other aspects of the business. According to David, a mission statement should be able to “allow for the generation and consideration of a range of feasible alternative objectives and strategies, because excessive specifity would limit the potential of creative growth for the organization. Also, a mission statement has to be broad to reconcile differences effectively among, and appeal to, an organization’s diverse stakeholders, the individuals and groups of individuals who have a special stake or claim on the company.”
Mission Statement of JFC
To serve great tasting food and bringing the joy of eating to everyone.
Vision Statement of JFC
We are the best tasting QSR...
The most endearing brand... that has ever been...
We will lead in product taste at all times...
We will provide FSC excellence in every encounter...
Happiness in every moment...
By year 2020, with over 4,000 stores worldwide,
Jollibee is truly a GLOBAL BRAND.
(And the Filipino will be admired worldwide)
Mission Statement Components (Based on the original Mission statement of JFC) Components | Original Mission Statement | Revised Mission Statement | Customers | everyone | everyone | Products or Services | Food | Food and services | Markets | None | Worldwide | Technology | None | Make use of the latest technological advancements for easier and more convenient delivery of fast food services. | Concern for Survival, growth, and profitability | None | To ensure that quality is not compromised with convenience. | Philosophy | Bring joy of eating to everyone. | Bring joy of eating to everyone. | Self-Concept | None | To add a dash of Filipino pride in every meal served, worldwide. | Concern for Public Image | None | To share its responsibility in looking after its fellowmen. | Concern for employees | None | To ensure that happiness begins where our services start. |

Final Revised Mission Statement To serve great tasting food and bring the joy of eating to everyone, worldwide by making use of the latest technological advancements for easier and more convenient delivery of fast food service, while ensuring that quality is never compromised; to add a dash of Filipino pride in every meal, as well as share corporate social responsibility in looking after its fellowmen, and finally; to ensure that happiness begins where our services start. The Final Revised Mission Statement has broadened the objective of JFC. It gave particular emphasis to each and every key component so as not to antagonize and leave behind other components that, in truth, play an equally important role in achieving the company’s objective.

External Audit Under the Industrial Organization approach to competitive advantage, external or industry factors are more important than internal factors in a firm achieving competitive advantage. There are key external factors that have to be considered in determining the surrounding opportunities and threats outside the control of the Company or business. Performing an external audit is vital to pinpoint the necessary threats to be avoided and the opportunities that have to be maximized. According to David, there are five broad categories when it comes to external factors.
Economic Forces Economic factors have a direct impact on the potential attractiveness of various strategies. In the Philippines, economic stability had been a primary issue when it comes to foreign and local markets. After a downward plunge back in 2007 and 2008, the Philippine economy had witnessed a reviving and struggling economic condition through the Business Process Outsourcing. The Philippine economy grew at its fastest pace in 2010 expanding 7.3% — this well surpassed the government’s target of 5.0% to 6.0% and jumped up from growth of just 0.9% in 2009, reported newspapers in the Philippines. The Philippines seeks to attract more foreign investment and enable the long underperforming economy to catch up with its fast-developing Asian neighbors, said analysts.

The Philippine Star on January 10, 2011, reported that investment is expected to hit P610.4 billion by 2014 (2010 posted a P505 billion investment) according to the Board of Investments (BOI)'s managing head Cristino L. Panlilio and the Philippine Economic Zone Authority (PEZA). The BOI said that they were hoping that investments from the public private partnership (PPP) will boost the figure.
In this graph, the trend on Gross Domestic Product will show a sharp fall between 2007-2008, when the country was experiencing political as well as economic instability. But even so, it was able to bounce back by 2010.

Under a new administration, promises of a more stable economy had been given, and several foreign critiques even lauded the country for being able to struggle despite a global economic downfall. In a study conducted by World Economic Forum (WEF), it was shown that the Philippines really did move several spots in global rankings. But despite the improvement, many small to medium scale business owners who were asked to be respondents of the WEF survey find problematic factors that are still thriving in the country. The top most problematic factors for doing business in the Philippines according to the report are: corruption, inefficient government bureaucracy, inadequate supply of infrastructure, policy instability and tax regulations. In addressing economic concerns, the administration laid down a six year plan with a focus on major economic developments. Aquino administration plans to double the Philippines’ infrastructure investments in the next six years by tapping the private sector, as well, according to the National Economic and Development Authority (NEDA). Based on the agency’s input to the State of the Nation Address of President Benigno Aquino 3rd, the new government will raise investments to a range of 25 percent to 28 percent of gross domestic product for the period 2011 to 2016, from the current 14 percent. To achieve this, NEDA said the government will increase spending on public infrastructure through greater private sector participation.

NEDA said the government aims to modernize the transportation sector and the logistics system for efficient movement of goods and people. The government plans to develop tourism infrastructure to provide access to major tourism destinations and spread economic development to other regions aside from Metro Manila.

To improve the Philippines’ competitiveness, the Aquino administration also aims to reduce the cost of electricity, thereby reducing manufacturing costs in the country.

NEDA also said that the government plans to enact a competition law and create a competition body to foster a culture of competition and enhance economic efficiency for job creation.

Other priorities for the next six years are promoting anti-corruption through legislative action, administrative measures and wider collaboration with the public; improving health services and social protection services and increasing exports through diversification and trade agreements.

The government also promised less credit dependent investments, and had put the credit standing of the economy from “stable” to “positive”. This standing became an advantage in the Philippine Stock Exchange, making it a vibrant market in terms of equities worldwide. In the international market, the export industry continued to thrive amidst the worsening global economic condition, and had a reported growth of 7.2%. In an Inquirer editorial, investors are eyeing the country especially with these notable growths in the market along with economic development plans under the present administration, including the Public-Private Ownership. The economic condition of the country has continuously developed since 2010. As of 2012, it was able to surpass media projection of 5.4% with a 1.7% margin, or a GDP growth of 7.1%. But in spite of reported economic growth, employment rate is still unstable and the country is still lagging compared to its neighboring Asian countries. As shown in this table, based on SWS surveys, unemployment rate and poverty related issues continue to be uncontrollable and in fact, is worsening.

Official unemployment rate as measured by the National Statistics Office (NSO) averaged 7% in 2011 and 2012 from 7.3% in 2010. We are supposed to be the second fastest growing economy in the region just behind China but the official jobless rates of our neighbors are much lower. Thailand’s is 0.7%; Singapore, 2.1%; Malaysia, 3%; South Korea, 3.8%; China, 4%; and Taiwan, 4.2 percent. To be sure, like in the Philippines, these official unemployment figures understate the true extent of domestic joblessness in the respective countries. But we cite them for the simple comparison of official data on the labor markets in the region. (Data on Asian countries are as of first quarter 2012 as compiled by the Bangko Sentral ng Pilipinas or BSP. During the same period, our official unemployment rate was 7.2 percent.)

And we have not even looked at the quality of available jobs. A quick peek at the NSO’s preliminary October 2012 Labor Force Survey shows that underemployed workers – those who are employed but are still looking for additional work – numbered 7.2 million; self-employed without any paid employee, 10.7 million; and unpaid family workers, 4.1 million. That’s easily 22 million out of the reported 37.7 million employed workers (more than 58%) with disputable quality of jobs.

Then for wage and salary workers, there’s the issue of extremely low pay amid a very high cost of living (made even worse by Aquino’s enforcement of the two-tier wage system which imposes a floor wage that is even lower than the minimum wage) as well as job insecurity amid widespread labor contractualization. The last time the National Wages and Productivity Commission (NWPC) issued its estimate of family living wage (which could approximate the amount needed by a regular family to live decently) it pegged it at ₱917 per day as of September 2008 in Metro Manila. More than four years later, Metro Manila’s daily minimum wage is still a measly ₱419-456.

To have an idea of how massive job scarcity in the Philippines could be, we may refer to the regular surveys of the Social Weather Stations(SWS). In 2010, 22.5% of Filipino workers said they were jobless which increased to 23.6% in 2011. This year, it ballooned to 30.1 percent. In absolute terms, there were about 9.5 million unemployed workers in 2010 and 2011; this year, it climbed to 12.1 million workers. In Aquino’s first three years in power, the number of workers who said that they were jobless increased by 2.6 million based on SWS surveys. (Results of SWS surveys cited in this article all refer to annual averages.)
With the economy not producing enough jobs and livelihood opportunities even as wages become even more depressed, poverty and consequently hunger have been at their worst. Again using the SWS surveys, 47.5% of Filipino families considered themselves poor in 2010. Since then, the percentage has steadily climbed to 49.3% in 2011 and 51% this year. There are now around 10.3 million families who consider themselves poor, up from 9.9 million in 2011 and 8.9 million two years ago. Thus, in the first half of Aquino’s term, the number of poor families ballooned by 1.4 million. This means that some 7 million Filipinos have been added to the number of poor in the past three years. Note that between 2009 and 2012, the budget for the controversial conditional cash transfer (CCT) program swelled from just ₱5 billion to ₱39.4 billion (a whopping 688% increase) but apparently failing to make a dent on poverty.
Hunger incidence, still as surveyed by the SWS, follows the same path. In 2010, the percentage of families who reported to have experienced hunger was at 19.1 percent. It climbed to 19.9% the next year and to 21.1% this year. In absolute figures, there were 3.6 million hungry families in 2010; 4 million in 2011; and 4.3 million in 2012. Under Aquino, the number of Filipino families who experience hunger has so far grown by 700,000 or about 3.5 million people as measured by the SWS. In sum, JFC can take advantage of government programs and investment related activities to further improve Jollibee (in particular). The positive feedback being received in the stock market is a go signal that equities are on the rise and capital should be maximized. The downside of the country’s economic condition however, is that it is not being felt by majority of JFC’s target market, as projected in the recent SWS survey. An increase in poverty-related issue poses an imminent threat in the purchasing power of the market and the consumers as a whole.