Jollibee Essay Example For Students

Jollibee Essay ?Jollibee Foods Corporation: Case Background I have always believed that I can make my business a big business. Tony Tancaktiong In May 1975, Tony Tan and his girlfriend/future wife Grace decided to be the bosses of themselves and went into a franchise agreement with then popular Magnolia Ice Cream. The idea came when the bachelors from University of Santo Tomas found themselves unwilling to work for anybody after graduation. Though both were Chemical Engineering graduates, the two had a bulk of their lives being thought by their parents, also entrepreneurs, the basics of being a business person. Ice Cream is a fad in the Philippines during the time. However, to be a $650 million business as Jollibee is right now, ice cream is just not the thing that can carry you into the ladder of success. As time develops and competitors keep on coming, Tony Tan had to think like the big guns, his empires development was a series of new Product development, Advertising, Acquisition and Expansion campaigns. Today, the Jollibee Foods Corporation is a brand tagged to the Philippines, much like Roman Catholic is to Pope Benedict XVI. And it does not stop there. Tony admitted that having dominated the local market, it is time for the little bee to step out of its hive. His long-term dream of being world renown is about to be reality not quite. Tony admits that they are far from his dream, and it would take his third generation for this to happen. Still with his optimism, that has brought his to where he is today, Tony and Jollibee are not slowing down. An excerpt from the company website show just how dedicated the company is in further strengthening its hold of the food industry and the fulfillment of Tony and his familys dreams. Jollibee remains firm in its resolve to maintain its dominance in the fastfood industry. It will continue to push forward with its strategic programs and aggressively pursue further network expansion to ensure superior market coverage nationwide. Most importantly, it will continually apply itself to the paramount task of consistently delivering superior tasting products at the most affordable prices and services of the highest standards in a bright and clean store environment (www. jollibee. com. ph). Tony Tancaktiong Tony was born to a Chinese immigrant to the Philippines. His father was his mentor in everything food. His father was a cook in a Buddhist temple and also a chef in outside restaurants. Maybe that was the reason why I (Tony) have such a firm grasp of my taste buds. He finished Bachelor of Science in Chemical Engineering in a reputable school, as he always had a dream of going outside the country as a professional. Based from the Discovery channel feature on the rise of Jollibee, it is evident that the success cannot solely be attributed to Tony. Even then, his characteristics have pioneered the empire that he has today. Besides, it is a family business centered on uncle Tony. Since the start of his own business career, he has been optimistic until today. Tony has always admitted that his father thought him the best way to succeed in the food business is to have good food, good service, and a reasonable price. Though he keeps this in mind, he also developed additions to his fathers teachings. Tony has learned to take risks, be creative and listen to his customers. This was evident when the ice cream business started to fail. Then Jollibee was born. This was followed by numerous awards for Tony as he steered a business to the top of local fast-food chain industry. Exhibit: Management and Corporate Awards from years 2001-2003 2003 awards The Most Admired Corporation in the Philippines by the Far Eastern Economic Review for 6 consecutive years (1998-2003) The Asia Money Magazine adjudged JFC as the countrys Best Small Company based on market capitalization for 2 consecutive years (2002-2003) 2002 awards The Asia Money Magazine adjudged JFC as Best in Operational Efficiency based on the financial rations Management Man of the Year Tony Tan Caktiong by MAP 001 awards Recognized as one of the Top 20 Best Employers in Asia and the Number 1 in the Philippines by Hewitt Associated and the Asian Wall Street Journal Cited as Best Employer in the Phils. Ranked # 16- Best Employers in Asia Listed as Asias Most Admired Companies: No. 1 Philippine Company No. 1 Consumer Company in Asia No. 1 in Contribution to Society No. 1 Growth Potential Listed among Asias Top Ten (Quality of Products and services, Quality of Management and Honesty and Ethics) Top Philippine Company REVIEW 2000 (3rd straight year) Ranked #1 Innovative in Responding to Customer Needs Ranked #1 Company that Others try to Emulate Ranked #2 High Quality services / Products Ranked #3 Management has long Term Vision Ranked #5 Financial Soundness 2000 awards No. 3 Overall Ranking in Asia (surpassed only by General Electric and Microsoft) Asia Business Magazine 1999 Grand Anvil Award for Sabi ng Jollibee, Kaya Mo, Kid! Public Relations Society of the Phils. Award Excellence, Public Affairs Programs for Arts and Culture for Sabi ng Jollibee Kaya Mo, Kid! Values Advertising Award for Buhay Linggo TV campaign Phil. Association of National Advertisers Outstanding Fast-Food Chain Consumers Union of the Philippines (11th ANCA) Best TV Commercial Buhay Linggo TVC 45s/30s Catholic Mass Media Awards Best Print Ad Patawad Po Print Ad Araw Values Awards Licensee of the Year First FILSCAP Awards Outstanding Filipino Franchise of the Year (Hall of Fame Awardee) Philippine Franchise Association, Dept. of Trade industry The Philippine Chamber of Commerce Industry Jollibee Foods Corporation As the ice cream business starts to wane, Tony and then his partners, his family (this is a family business tried to listen to their customers. From then on they learned that there was a need by the customers, a need for something to eat. Not just a local ice cream parlor. Besides, ice cream is a dessert. At that time, Tony went back to his I wanna go to the US attitude. He learned that aside from ice cream, burgers were also a favorite in the US. Even though it is a junk food! And as the ice cream sales go down, and the oil crisis of 1977 continues, Tony decided to scrap the franchise and start his familys own business. In 1978 Jollibee Foods Corporation was born. How did it succeed? They sold burgers the Yumburger. Aside from the food, the store located in Cubao featured a family atmosphere. Centered on joy and the family spirit, just as Tony always envisions. On its first year of operations, the company earned 2 million pesos. Jollibees share of sales Of Jollibees P24. 1 billion in system wide sales in 2001, Jollibee accounted for P16. 88 billion or 70%; Chowking P3. 631 billion or 15%, Greenwich P2. 474 billion or 10. 3%, Delifrance P183 million or 0. 75%, and international P935 million or 3. 9%. Jollibee and Chowking are the fastest-growing segments of the business. Jollibee sales rose 42% between 1998 and 2001, from P11. 82 billion to P16. 88 billion, while Chowkings by 69%, from P2. 15 billion to P3. 631 billion in 2001. On the other hand, sales of Greenwich expanded 23. 8% during the same period, from P1. 999 billion to P2. 474 billion. Clearly, Jollibee remains the bread and butter of the whole business in terms of profits and revenues. Jollibees system wide sales expanded by a hefty 18. 8% in 2001 over 2000 which in turn showed a growth of 12. % over 1999. In 1999 over 1998, system wide revenues nudged up just 8. 3%, the slowest during the decade. Net income margin, which is peso profit divided by gross revenues, slid to 3% in 2001, a quarter of the hefty 11% margin during the boom years 1993 through 1995. It was 5% during the first nine months of 2002. In 1998, the first full year after the Asian Crisis struck system wide revenue growth was a frenetic 49%, a record. Sa les growth was a strong 30% in 1997, 25% in 1996, 31% in 1995, 29% in 1994, 20% in 1993, and 28% in 1992. It was a difficult year and challenging year for the Philippine fast-food industry and for your company, said JF Chairman, President and CEO Tony Tan of 1999. That year, the economy, as measured by the Gross Domestic Product (GDP) grew by just 4%, same as 2002s rate. We didnt see a broad-based turnaround and improvement in consumer spending, he related in 1999. Amid the slowing revenue growth, Jollibee must constantly tap new sources of revenue here and abroad, keep opening stores, cut cost, sharpen its focus, and improve efficiency and technology. Last year, on top of cost-cutting, the company even resorted to increasing prices (by about 4%) to keep its profit margins, an indication of brand strength; in other words, the Jollibee group must keep reinventing itself to stay ahead of competition and remain profitable. Today, the company is valued at $650M and has operations even outside the country. In places like China, United States, Saudi Arabia and even having 513 stores among the 7,107 islands of the country. Company Vision, Mission and Values Values Always customer first Excellence through teamwork Spirit of family and fun Frugality, Honesty and Integrity Humility to listen and learn Vision Become the most dominant and best-tasting QSR The most endearing brand that has ever been We will be within reach of every Filipino We will lead in product taste at all times We will provide FSC excellence in every encounter Happiness in every moment Mission We bring great taste and happiness to everyone Production Commissary: the su pply Chain Process The company uses a commissary system that ensures the quality of the products being sold in the local stores. It does not only guarantee quality of product, but also the speed of delivery. Jollibee commissaries are located in Pasig, Cebu and Laguna. These offices are liable for all value adding processes for the products of the company. Starting from raw materials to distribution and logistics, a well organization and communication of process should always be in focus for easier operations. A professionally staffed Technical Services Team supports the maintenance of an internationally accepted quality management system that further ensures the quality and safety of the commissary manufactured food products. High caliber teams from Engineering, Human Resources, Information Management, Finance and Accounting likewise provide support to the Manufacturing and Logistics operations of the Commissary. The key to handling the complex commissary operations is state-of-the-art automation, computerization and continuous improvement in manufacturing equipment and processes. Jollibees automated operations not only cut production time and ensure consistent quality from batch to batch but also ensures food safety by minimizing handling and maintaining the highest standards of cleanliness. Proof of Jollibees adherence to high quality standards is the various awards it garnered for the commissaries. With modern machineries and quality awards, the commissaries are fully geared to ensure that Jollibee will achieve its goal in making the company a truly global brand! Quality control: JFC standards (excerpt from the company website) What explains Jollibees phenomenal growth? Surely, it is Jollibee s strict adherence to high standards as symbolized by the acronym F. S. C, a byword in all of Jollibee. Every Food (F) item served to the public must meet the companys excellent standards or it will not be served at all; the Service (S) must be fast and courteous; and Cleanliness (C), from sidewalk to kitchen, from uniforms to utensils, must be maintained at all times. These high standards, of course, depend on the employees who are considered as the cream of the crop. Jollibee knows this and is proud of its employees commitment to FSC in everything that they do. Jollibee recognizes them by providing the highest compensation and benefits package in the fastfood industry. Apart from this, Jollibees people undergo modern and comprehensive training programs based on the companys high standards. Managers continuously learn the latest systems in store operations as well as other results and people-oriented management skills. Service crew get regular training on the various store stations and on other food-service innovations as well. Career pathing is also provided, allowing opportunities for qualified and exceptional crew members to pursue their food-service careers as managers. Store operations are ably supported by professionals who are experts in Marketing, Computer Management and Engineering. As a whole, Jollibees working environment is anchored on the highest standards of corporate professionalism and excellence. Honest, Hardworking, Jolly. The Jollibee people do their best and get the best in return. Franchising and Marketing strategy By 1980 with the entry of big competitors such as AW and KFC, Jollibee already had 21 franchises around the country. Adding to the Filipino taste, the company developed products that could compete with the new comers. Therefore launching the Chickenjoy and Jolly Spaghetti. Thats not all, with news of McDonalds coming to the country the following year; Jollibee had its first step to advertising and the mascot strategy. And as predicted, the biggest fast-food chain in the world is here, McDonalds. It would also follow that the little bee will soon loose its sting. True enough, the color, ambiance, service and food of McDo ate up a fair share of Jollibee sales. Tony Tan leaned on a friend to counter this problem, though it meaning that it is not a pure family controlled business anymore. Smith Lanning was a management consultant that Tony met in a convention. The two became close friends and later on helped each other. The business know-how of Smith Lanning taught Tony a basic strategy. Go into advertising, PINOY ADVERTISING. After spending a whole years profits on advertising, launching new products together with the Langhap-Sarap theme in commercials, Jollibee got back at McDo posting 500 million sales in 1984. By 1985, the company was the prime fast-food chain in the country getting the most of the market share. In 1987, after a series of hardships and controversies, Jollibee opened in Brunei and Taiwan, and the rest followed. Sales ballooned to 1. billion in 1989 just to show the amount of patronage the company experiences. And as usual, advertising is not solely for the original Yumburger, but there are already a wide product offering from Jollibee at the time. Going Public The 1987 advertising and expansion campaigns showed that the company needed money if sooner than later. Jollibee financial consultant Paul Rosenberg saw this and recommended to Tony that the company should go public to gain needed financing. After a long family debate, on the risks of diluting ownership, the company debuted in the local stocks exchange in 1993. Richard Wright's novel, Native Son, stirred up a r EssaySince both SBUs will be under the corporate umbrella, this should help to increase cooperation at a firm-wide level. HR Perspective Regardless of location or culture, effective customer brand loyalty can be developed through human resource departments and the company’s personnel. The most significant difference between domestic and international human resource management (HRM) seems to be that with domestic HRM there is a common standard practice that most companies are familiar with, whereas with international HRM, there are a variety of different laws and business practices that international companies have to consider. The similarities between these two types of HRM can be found on a more practical level of managing employees. Both serve to fulfill the goals, needs of employees, and to ensure that they have the necessary resources to successfully complete their duties. The first step to successful International HRM is an understanding of cultural differences and developing appropriate means of addressing these differences Jollibee ensures that it provides top-notch services in all its outlets. Jollibee’s success can also be attributed to its organizational culture depicted through â€Å"fun and friendly environment†. Through stringent recruitment and selection procedures, Jollibee ensures a service-oriented staff to man its outlets. Willing to pay above-average compensation, Jollibee ensures loyalty among its staff members and this translates into better service performance and dedication toward serving the customers. Training programs equip its staff with the necessary skills needed to better perform their tasks. By hiring professionals to devise strategies for its store operations, Jollibee is able to create a working environment that boosts high standards of professionalism and service excellence. However, there are other problems that Jollibee faces in the international expansion of its business SINGAPORE Problem- No trust between Jollibee and the local manager Before you start a revolution, it’s essential to fully understand the status quo. Working with individuals and ideas from cultures different from our own, is complex and filled with opportunities to misunderstand and offend everyone involved. It requires time to develop trust and understanding for all the players involved. It was important therefore on the part of Jollibee to take the time to learn how and why business is done in Singapore. Results cannot be judged based upon your culture and your country’s standards. Pushing procedures and business strategies into a new country will surely cause divisions, it can turn into an â€Å"us versus them† situation for employees and customers. The creation of hybrid strategies, using elements from cultures of both countries, will guarantee unification and understanding for everyone involved. TAIWAN Problem- Conflict due to lack of trust between partners Need for Organizational Compatibility as a Criterion for Partner Selection An essential requirement for the success of the cooperation scheme is that the participating companies have the internal capacities needed for the performance of the activity that is the object of the agreement. The future partners should also be compatible, from the point of view of the congruence of their objectives and motivations. Small differences in management style and culture between the cooperating firms may become serious problems that make it difficult to create synergies, which ultimately lead to poor financial performance. Given the difficulty of identifying the organizational compatibility between two firms, it can be convenient to use some specific procedures to predict whether the relationship might work. One might assess whether each companys personnel feel at ease in mutual discussions during the negotiation stage. With daily contact, each partners habits and trends can be discovered However, the appearance of cultural conflicts does not mean they cannot be solved. The process must start by trying to understand the partners way of thinking and behaving. Strained international- domestic relations Problem-Jealousy regarding pay and benefits The performance appraisal and reward system, particularly when an organization is created to develop the cooperative activity, should be the same for all individuals, no matter which firm they come from. Otherwise, problems of justice and equity can arise. To prevent each partner from favourably assessing executives coming from his or her own organization, it is advisable to create an appraisal committee formed by members of both firms. Stereotypes about personal behaviour must be prevented Recommendations Jollibee should continue to expand to areas with high Philippine concentration and gain a foothold in such areas first Communicate Impart a vision of customer service to its employees that includes clear and understandable long-term goals. â€Å"Once employees know the direction the organization plans to take, they are more likely to get behind the effort† Empower Encourage employees to exercise the flexibility and judgment that customers’ expect. Employees need to be able to answer a customer’s questions and to make routine decisions. Provide the resources the staffs require to succeed, including coaching and training. It is important to (1) define the working positions required to implement the strategy and (2) determine the needs of the human resources involved and the convenience of training or hiring them. A flair for negotiation: The talent to analyze differences in a creative way, to discover shared solutions. Flexibility: The ability to give different answers and approaches, depending on the situation involved. Humbleness: The ability to accept others as equally worthy of consideration. Acceptance of risk: Not being afraid to make mistakes. Ability to reconstruct: The ability to repair deteriorated personal relationships. Integrity: Natural honesty and reliability. Sensitivity: Finding it easy to listen and observe attentively, to capture subtle data from conversations and non-verbal communications, and to know when and how problems must be addressed. Patience: The ability to perform well in unforeseen and uncomfortable situations. Curiosity: A permanent interest in investigating and learning.