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Jollibee
- 1. BUS 475-01 | Team #2
- 3. Introduction: ● Jollibee Food Corporation ○ Publicly Traded since 1993 ● Filipino Multinational Company ○ Pasig, Philippines ● Subsidiaries/Acquisitions ○ Coffee Bean, Red Ribbon, Chowking, etc. ● Successful American Integration ● Penetration of Other Countries/Regions
- 4. Our Company
- 5. ● Jollibee Began As an Ice Cream Parlor in 1975 ● Founded 1978 in Manila, Philippines ● The Bee Logo = Hard Work and Sweet Life ● Business Model: B2C ● Jollibee Is Largest Fast-Food Chain In The Philippines ● International Expansion ○ JFC Has 5,800 Stores Across the Globe ○ Operating in 34 Countries Company History
- 6. “To serve great tasting food, bringing the joy of eating to everyone.” Mission Vision “To be one of the Top 5 Restaurant Companies in the World." Goal JFC wants to expand Jollibee by 300 locations across North America by 2024
- 7. The Coffee Bean & Tea Leaf 2019 Panda Express 2018 Smashburger 2018 Dunkin Donuts 2016 Fun Integrity Spirit of Family Customer Focus Speed With Excellence Humility To Listen and Learn MA&D Company Values
- 8. Management ● Board of Directors ○ Chairman and Founder - Tony Tan Caktiong ● Leadership Team ○ Officers, Regional Business Heads Organizational Leadership Skills ● Delivers Results ● Influences Others ● Builds Confidence
- 9. Brands
- 11. PESTLE Analysis Political Labor Cost Increase; U.K. Sugar/Salt Tax; Health Regulations Economics Inflation; GDP adjustments; increase in price of foods (Chicken) Social Diets (Plant-based); Shift towards nutrition/heath; Pandemic/Post Technological International Restrictions, AI/Robots, Apps, Self Ordering Kiosks Legal U.K. Food Restrictions; Safety Measures increased (U.S., China, etc) Environmental Animal Welfare, Sustainable Food Packaging
- 12. Threat of Entry Level: Moderate ● Low Switching Costs ● Variable Capital Cost ● High Variable Cost - Branding Buyer Power Level: High ● Lower Switching Cost ● Large Competition ● Large # of Substitutions Threat of Substitutes Level: High ● Large # Substitutions ● Low Switching Costs ● Competitive Industry Rivalry Level: High ● Competitive ● Low Switching Costs ● Copy Infringements Supplier Power Level: Low ● Large # of Suppliers ● High Competition ● Lack of Vertical Integration Porter’s 5 Forces + Technology Technology Level: High ● Efficiency ● Apps ● Other Companies
- 13. S W O T ● Large Market Presence ● Food Quality ● Product Variety ● Joint Ventures & Procurements ● 24 hour Customer Service ● Marketing ● Lack of Delivery ● Lack of Automation in Kitchen ● R & D ● Acquisitions ● Pandemic - increase in cravings & prepared meals ● Consumer trends ● Food Regulations ● Shortages ● Increase in Wages ● Copy Cats
- 15. Value Chain Analysis Vertical vs Horizontal Integration Retail Companies that sell the product to the final customer Final Product Companies that create products with its own brand Suppliers Companies that create basic components Raw Materials Companies that handles & create commodities Company New Product Competitor 1 Similar or Better Product Market Player Dominate Product Competitor 2 Hot Selling Product Domestic Market Horizontal Integration - Merger, Corporation, Procurement Backwards Vertical Integration Forward Vertical Integration
- 16. ● Typhoon weather ○ Agriculture Vulnerability in the PI ○ Product price increase ● JFC in 2009 ● JFC sourced directly from smallholder farmers ● Invested into partnership building & training ○ organize farmers into functioning cooperatives ● Buying directly from the farmers ○ one area of country producing lower yields ○ JFC can buy from a less affected region ● Product quality ○ assured & prices are more stable ○ negotiation relationship is directly between JFC and the farmers. ● JFC in 2015, Jollibee ○ helped over 900 farming families in 27 cooperatives ○ increase income of 200-500% ○ A quarter of all vegetable produce sourced by JFC now purchased directly from the farmer cooperatives. Value Chain: Vertical Integration
- 17. Business Strategy ● Differentiation in product with flavors ○ Special red sauce ● “Mcdonald’s of the Philippines” ○ Positioning strategy in high traffic areas for families ● Psychological Pricing ● General strategy in the U.S. is ○ Open in areas with denser Filipino- American populations ○ Give them a “familiar feeling of home” ■ “Nostalgic filipino taste”
- 19. Innovation/Industry Life Cycle Position Revenue By Geographical Segment - in billion Philippine pesos Jollibee is targeting a 30-30-30 division is sales between the Philippines, the United States and China, suggesting it has big growth and acquisition plans in the world’s top two economies, beyond the 5,800 outlets of its 16 various chains
- 21. Locations:
- 22. 1994 $7.3 million USD 80% of shares 2000 $16 million USD 2005 $34.2 million USD 2010 $68.8 million USD 70% of shares 2012 $69 million USD 54% of shares 2021 50/50 Joint-Venture 2018 50/50 Joint-Venture In the Philippines…
- 23. 2004 $22.5 million USD 2006 70% of shares 2007 $50.5 million USD 2010 $4.5 million USD 55% of shares 2016 50/50 Joint-Venture 2018 $34.2 million USD In Mainland China & Taiwan…
- 24. 2015 $335 million USD 40% of shares In the United States… 2018 $12.4 million USD 47% of shares 2019 $350 million USD
- 25. International Strategy ● Jollibee has a strong hold in several markets around the world, including the US, Canada, the UK, Saudi Arabia, and Vietnam. ● They have a 3 part internationalization strategy ○ Become popular in the Philippines ○ Become the largest fast food restaurant in Asia ○ Strive to become one of the top 5 restaurant companies in the world ● Efforts integrated with a 2 plan expansion strategy: ○ Brand acquisition ○ Brand expansion ● Loyal Filipino customers who live overseas help their success in international markets
- 26. Variations of Products and Services ● The core product remains the same across markets ○ Offer region-specific additions to its menu to better cater to local tastes, such as the Saigon Chili Chicken offering in Vietnam, and Chicken Burgers in the US. ○ In addition, portions change depending on the market ○ The Jollibee stores in the US have a lot of small $1 value meals like sliders in order to compete with other fast food restaurants. ● The services provided by the company include Jollibee express delivery service, Jollibee drive thru, Jollibee kids party and open 24 hours Hong Kong Breakfast Philippines Breakfast
- 27. Organizational Design, Corporate Governance, & Black Swan Events
- 28. Organizational Structure ● Jollibee has a flat organizational structure ○ Helps the company make decisions effectively and gives more trust to its employees
- 29. Power Distance Low ● Low power distance ● Flat organizational structure ● Balance between individualism and collectivism ● Promotes optimal performance Individualism vs Collectivism Organizational Culture Hofstede Model of Cultural Dimensions Masculinity vs Femininity ● Low masculinity score ● Job responsibilities in the organization overlap frequently between men and women Uncertainty Avoidance Long vs Short Term Orientation ● Long term orientation in strategy focus and development ● Short term orientation with execution Indulgence vs Restraint ● High indulgence score ● Culture focused on people’s gratification and needs ● Low uncertainty avoidance ● Relaxed environment
- 30. Board of Directors Tony Tan Caktiong (Chairman) Ernesto Tanmantiong William Tan Untiong Don Alexander C. Lim Ang Cho Sit Antonio Chua Poe Eng Ret. Chief Justice Artemio Panganiban Cesar V. Purisima Ee Rong Chong Kevin Goh
- 31. Corporate Officers Ernesto Tanmantiong Joseph C. Tanbuntiong William Tan Untiong Ysmael V. Baysa President & Chief Executive Officer Treasurer Corporate Secretary Chief Financial Officer Chief Marketing Officer Chief Human Resources Officer Daniel Rafael Ramon Z. Gomez IIII Arsenio M. Sabado
- 32. Jollibee & COVID-19 ● Aimed to expand stores during pandemic through expansion strategy utilizing low-cost properties ● Tried to open cloud kitchens and emphasize delivery options to move away from dine-in options ○ Partnership with DoorDash ● Net loss of P11.51 billion ($217.7 million) in 2020 ○ Deemed one of biggest losers in pandemic ○ Saved by aggressive expansions in North America ● Closed 255 company-owned stores and changed 95 to franchised outlets to minimize losses
- 33. Repositioning ● Skyrocketed in 2021 to a profit of P6.3 billion ($123 million), surpassing Bloomberg Market Consensus ○ Attributed to success of fourth quarter ○ Opened 398 new locations in 2021 ● Plans to open 500 new stores in 2022 attributing P17.8 billion ($339.3 million) to capital expenditures “We look forward to continuing strong recovery of the business in 2022 particularly if the restrictions in the Philippines are fully lifted”
- 37. Net Income, Gross Profit, & Free Cash Flows Jollibee Net Income 2018 7,411.70 2019 7,368.10 2020 (10,307.40) 2021 5,586.20 Jollibee Gross Profits 2018 28,742.20 2019 29,368.30 2020 13,586.70 2021 26,078.90 Jollibee Free Cash Flows 2018 3,275.90 2019 8,682.30 2020 (7,803.60) 2021 9,813.40
- 38. EBITDA and Total Debt Jollibee Total Debt 2018 66,895.10 2019 92,083.40 2020 102,846.40 2021 96,480.00 Jollibee EBITDA 2018 20,782.10 2019 20,066.10 2020 4,679.40 2021 19,426.60
- 39. Competitors Yum Brands ● Pizza Hut, KFC, Taco Bell, The Habit Restaurant Brands International ● Burger King, Tim Hortons, Popeyes, Firehouse subs
- 40. Jollibee Revenue & Comparables Jollibee Yum Restaurant Brands 2019 179,626,188 5,597,000,000 5,603,000,000 2020 129,313,002 5,652,000,000 4,968,000,000 2021 153,575,590 6,584,000,000 5,739,000,000
- 41. Total Sales & Sales Growth
- 42. Key Financial Ratios Jollibee Yum Restaurant Brands 2019 7.48 64.9 9.19 2020 -6.21 39.54 6.92 2021 5.4 55.59 9.51 Jollibee Yum Restaurant Brands 2019 3.57 72.63 9.08 2020 -7.58 32.26 7.53 2021 3.34 38.18 9.5 Jollibee Yum Restaurant Brands 2019 4.07 23.12 11.48 2020 -8.9 15.99 9.78 2021 3.89 23.92 14.6
- 43. Key Financial Ratios Jollibee Yum Restaurant Brands 2019 4.32 27.65 3.03 2020 -5.78 16.31 2.15 2021 2.84 26.65 3.64 JolliBee Yum Restaurant Brands 2019 0.68 0.99 1.29 2020 1.36 1.01 1.41 2021 1.43 0.97 0.97
- 44. Margin Ratios Jollibee Yum Restaurant Brands 2019 16.35 77.93 58 2020 10.51 73.35 56.96 2021 16.98 73.8 58.55 Jollibee Yum Restaurant Brands 2019 3.61 34.48 35.62 2020 -9.91 26.59 29.41 2021 4.09 32.49 32.81
- 45. Conclusion ● Continuing their International Expansion ● Great stance with branding ● Keep an eye on customer trends, regulations, & other giants (e.g. McDonalds) ● Keep creating loyal customers during expansion ● Retain success through M&A and their loyal corporate board ● Vertically integrated with their suppliers ● Targeting families in filipino dense areas, nostalgic base, international growth phase ● Steady recovery from Covid-19, continue to improve sales, revenue, and margins
- 46. Thank You!
Editor's Notes
- BUS 475-01: Team #2 Team Members: Mike Deats, Emily Layton, Madison Miranda, Antonio Murillo, Taylor Sell, & Nina Valdez Company: Jollibee Food Corporation Presentation Date: Thursday, May 5, 2022 (In Class; 8:30 AM) ________________________________________________________________________________________ Branding Kit: Font: Nunito (Bold) Colors (Hex code): Purple: #6b327e Orange: #cf7630 Red: #cf353e Black: #000000 White: #ffffff Photos: https://drive.google.com/drive/folders/1cIB8f4OOlmybX2Rnh1UTgL7hA_XgL-8K?usp=sharing Logos: https://drive.google.com/drive/folders/1qpAVlL7IigxsiVqplnB2UC0uPBsIzwOk?usp=sharing
- Intro Video - Jollibee Advertisement https://www.youtube.com/watch?v=lSBIk1KIxwc
- Presenter: Nina Topics: Reason for Selection
- Presenter: Taylor Topics: 2. A Brief History of the Company 3. Mission/Vision, and Strategic Goals (note any relevant MA &D changes) 4. Principal Business Model of the Firm (Product, B2B/C and/or Service) 5. Management Structure and Leadership skills
- Jollibee initially began as an ice cream parlor, but after adding savory foods to the menu Jollibee’s popularity grew and was officially founded in 1978 in Manila, Philippines. After converting the ice cream parlor to a restaurant, Jollibee determined their logo as a bee, which was chosen because it demonstrated hard work, while its association with honey demonstrated the sweet life Their business model is B2C as customers come to Jollibee to buy products from the company In its 44 years of existence, Jollibee has quickly become the largest fast food chain in the Philippines and has expanded across the globe to open up over 5,800 stores across all of their brands, which allows them to operate in 34 countries
- The mission of Jollibee is to serve great tasting food, bringing the joy of eating to everyone. And their vision is to be one of the top 5 restaurant companies in the world. And at this time, one of JFCs goals is to expand its flagship brand Jollibee in 300 locations across North America by 2024.
- Here on the left I included some brands that many of us know and love that Jollibee Food Corp is involved with so JFC did fully acquire The Coffee Bean & Tea Leaf in 2019, as well as Smashburger in 2018, And as for Panda Express and Dunkin’ Donuts, JFC had announced joint ventures with both companies to bring Panda Express to the Philippines and to bring 1,400 Dunkin’ Donuts stores to China over the next 20 years As JFC continues to expand their brands and locations, there are six values that they look to meet: fun, integrity, spirit of family, customer focus, speed with excellence and humility to listen and learn. Jollibee upholds these values by crafting their teams with highly engaged people that are trusted and well-loved of course alongside serving consistently great tasting food. Hfor $350 mil
- To introduce a little bit of JFCs management structure, we have the board of directors headed by chairman and founder, Tony Tan Caktiong, in addition to the leadership team which includes the officers and regional business heads. We will discuss this more later in the presentation, but moving on to the organizational leadership skills, first… Has continued to deliver results as they expand their brands and locations successfully, which leads me into my next point of influencing others JFC has received a ton of accolades since their existence but to highlight a few, in 2020 they received the Gallup Exceptional Workplace Award, making it the first-ever Philippine-based corporation to receive such distinction, additionally, Jollibee Group is 1 of 3 Philippine-based companies on Forbes’ List of World’s Best Employers And finally, the Jollibee Group has built confidence amongst their organization whether that be focusing on employee's strengths or coaching talents, but especially for women in their workplace as they are cited by Forbes as one of the World’s Top Female-Friendly Companies
- Here is a look at the 17 well loved brands JFC owns or is involved with, many of them you probably recognize and I am sure they will continue adding on to this list in the future. I will now pass it to Nina for our context and situational analysis
- Presenter: Nina Topics: 6. External Analysis (PESTEL Framework) 7. Describe Nature of Industry, and the competitive environment (Porter 5 Forces)
- Presenter: Nina PESTEL Analysis
- Presenter: Nina Porter’s 5 Forces + Tech
- Presenter: Nina SWOT Analysis *Extra Material, can cut out if we need to.
- Presenter: Emily Topics: 8. Describe the Value Chain Internal Analysis (Vertical and Horizontal Integration) 9. Business Strategy (cost leadership or differentiated products or services) and approach to the market 10. Approach to innovation and new product development. Industry / life cycle position
- Presenter: Emily Vertical: control over industry, growth through streamlining operations, acquiring vendor, supplier, Horizontal: control over market, purchasing relitaive businesses (Competitors)
- Presenter: Emily the agricultural sector in the Philippines is particularly vulnerable to such extreme weather events as typhoons, and when extreme weather reduces crop yields, the price of produce inevitably spikes – exacerbated by middlemen who hike prices exorbitantly. · To mitigate this supply chain risk, in 2009 Jollibee Foods Corporation began sourcing produce directly from smallholder farmers in addition to its traditional intermediary traders. JFC invested a significant amount into partnership building and training to organize the farmers into functioning cooperatives. Buying directly from the farmers has meant that when one area of the country is producing lower yields, JFC can buy from a less affected region. Product quality is assured and prices are more stable as the negotiation relationship is directly between JFC and the farmers. · By 2015, Jollibee had helped over 900 farming families in 27 cooperatives with an increase in income of 200-500%. One-fourth of all vegetable produce sourced by JFC is now purchased directly from the farmer cooperatives.
- Presenter: Emily The red sauce on the noodles is sweet, made from banana ketchup (a Filipino staple), and the concoction also has ground meat, hot dog slices and cheese, which add a tangy flavor
- Revenues changed with 29,20 and 2021 is making a comeback but nothing significant enough that the industry is still in the growth.It is in maturity phase philippines Growth phase internationally -record-setting, double-digit sales growth in 2017.
- Presenters: Antonio & Madison Topics: 11. Participation in M&A and D and Alliances | Antonio 12. International Strategy (variations of product and services by country/region) | Madison
- Presenter: Antonio
- Presenter: Antonio M&A Philippines
- Presenter: Antonio M&A Philippines
- Presenter: Antonio M&A Philippines
- Presenter: Madison
- Presenter: Madison
- Presenters: Madison & Antonio Topics: 13. Organization Design: Structure, Culture, and Control | Madison 14. Corporate Governance (Board membership, Press releases) | Antonio 15. Highlight any Black swan events (e.g. COVID-19 business strategy impact) and company repositioning | Antonio
- Presenter: Madison
- Presenter: Madison
- Presenter: Antonio Board of Directors Tony- founder and chairman, billionaire businessman Ernesto- worked from store manager to ceo Artemio Panganiban- former chief justice of Philippines
- Presenter: Antonio Corporate Officers
- Presenter: Antonio Corporate Officers
- Presenter: Antonio Corporate Officers
- Presenters: Mike Topics: 16. Financial Analysis (3-5-year review of Income Statement, Balance Sheet, Cash flow, Returns). A Financial Model will be provided.
- for $350 mil
- for $350 mil
- for $350 mil
- for $350 mil
- for $350 mil
- Presenter: TBD Topics: 17. Conclusion