The Critical Factor Responsible For Jollibee Success In The Philippines


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The Critical Factor Responsible For Jollibee Success In The Philippines

Critical Success Factor- analysing the region in the procedure to attain the goals of the company

Competitors - the company or corporation in the same industry offering the same products and services.

Leadership - a role in the business which provide information, and coordinating each of the employee to attain the vision of the company.

Low Cost - offering low prices with the products and services to get profit.

Mission - it is something to be accomplish and it is the central emphasis of the company.

Reliability - an instrument use to measure to describe a test.

Shared Principles - this can be a beliefs that guide employees and management with their decision in the business.

Skills - it is the potential and competence of staff or staff in the business.

Staff - staff or workers which takes on an important role in the operation.

Supplier - the main one who source and distribute recycleables in the company.

System - a method or an operation to perform one's obligation.

SWOT Research - an research of interior and external factors in the company such as power, weakness, opportunities and risks.

Validity - refers to whether the test or research answer the theory of the test score.

Executive Summary

The research proposal is approximately the Jollibee Food Firm based in the Philippines. They extending and producing and has outlets locally and overseas. The main opponents are Mcdonalds, Kentucky Fried Fowl, and Burger King. The researcher will explore and review about the critical success factors in charge of the business's success. The researcher suggested to review if the low cost operating system establish by the business is the critical success factors or not and what impact them. The analysis include different strategy and theories which will be use to analyse the business competitive strategies like SWOT Evaluation, 7-S Framework by Mckinsey, Porter's five causes and PEST Analysis that are of help tools that will support the research study. The researcher also attract the research design, sampling techniques, data research and measuring and collecting data. The researcher discuss some moral implications by the end of the statement and properly appraised the foundation of materials through Harvard referencing. At the end of the record, the time range are talked about that outlines the viability of the study.


Fast food string in the Philippines refers to the meals that are being prepared and offered quickly to the customers. It is also known as an instant Service Restaurant. There are numerous chain of fast food in the Philippines. The Jollibee Food Organization which provides Hamburger, Fries, Spaghetti, Fowl, and Jolly Hotdog with local tastes. The biggest opponents are McDonalds, Kentucky Fried Hen, Burger Ruler, and Pizza Hut. Jollibee Food Company is the number one fast food chain in the Philippines and it also enters the global market. They may have outlets in United states, Guam, Kuwait, Brunei, Taiwan, Indonesia, Hongkong, China, Saudi Arabia, Dubai and United Arabs Emirates. The business were only available in the Philippines as an Ice cream parlor and later on develop and widened among the biggest junk food string in the Philippines rivalling Mcdonalds. They may have the same menu as Mcdonalds but Jollibee Food Corporation serve their products with local flavor unlike Mcdonalds which helped bring American tastes in the Philippine market. Jollibee Food Corporation introduced fun atmosphere, friendliness and customer emphasis and the happiness and spirit of family while eating in their restaurants.

Jollibee developed through franchising. It is active in TV advertisements, it improve acknowledgement through mascots and custom logo. It is very popular in the Philippines because it supports good family ties and family ideals which is the most adhering attributes of Filipino households. Jollibee also backed different charities in the Philippines and help various civil and non civil organizations.

As of 2009, Jollibee operated 686 stores in the Philippines, 355 are franchised and 331 are company had stores and 57 stores in international market.

Main Body A. Background Towards The Problem/Concern:

The research is about the success factor of Jollibee Food Organization, a local brand in the Philippines compare to American based fast food chain Mcdonalds, Pizza Hut, Burger King and Kentucky Fried Chicken(KFC). This research analyse the success factors of Jollibee Food Firm in the Philippines one which is the reduced cost procedure system of the company compare with their key rivals. The researcher will collect some data about the competitive strategies of Jollibee Food Firm and how they have the ability to enter to the very best against giant junk food string companies.

The researcher will analyse if the low cost procedure system of Jollibee Food Company is the critical factor which is accountable for the success of the company. It is important and relevant to examine the competitive strategy of the local company in the local market up against the American structured company that are proven globally. The purchase price rivalry usually makes the difference with the junk food chain that offers great quality food and service but different in price. Learning the critical success factor is very important for the organization in order to learn which areas they have to focus clearly to achieve their business perspectives and goals. Without analysing the areas of that they need to target to get success the business will likely didn't meet their goals and targets. The critical success factor drives the company's strategy to win over their competitors. It drives the business to access their performance and to attain their vision and mission. It is very interesting to study the Jollibee Food Corporation's CSF because they're number 1 in the Philippines, and incredibly successful in the market. For the business to survive available world, it is vital to find out their potentials and develop strategy to contend with their competition.

B. Research Questions And Objectives:

What will be the factor's responsible for Jollibee Food Corporation's success in the Philippines against Mcdonalds, KFC and Burger Ruler?

It is important to study the factor's responsible for the fantastic success of Jollibee in the Philippines. To know what are they competitive advantage against their rivals mainly Mcdonalds which is well known internationally and already set up their company around the globe.

2. May be the low cost operating system, accountable for the success of Jollibee Food Company?

It is important to explore and research if the low cost operating system of Jollibee is the one responsible for their success or any kind of other factors that are accountable for it. The researcher must established the partnership of low cost operation to organization's performance in the market.

3. What is the franchising concept of Jollibee Food Company? It offers something to do with their success factors?

The researcher needs to know the backdrop of the business, and its relationship with the franchisees and any support to the operation of the company. To evaluate the concept of franchising if it has something to do with their success in the market and overseas.

4. Who are the customers and the competitors of Jollibee Food Corporation?

In business procedure, it is vital to learn who are the competitors on the market. To develop the right strategy also to know their customers and the mark group in the market.

5. How is the junk food string market in the Philippines?

To study the problem of the junk food chain on the market in the Philippines. When there is any impact with the neighborhood and American centered fast food string.


The low priced procedure system of Jollibee Food Company is not responsible for the success of the company but there are a great many other factors donate to their success.


Examine the factors that are in charge of the success of Jollibee in the Philippines.

What are the competitive strategy of Jollibee Food Firm that other fast food chain company doesn't have?

Study the prospective group or the consumers of the business based in the Philippines.

Study what is the marketplace situation in the Philippines.

To determine what the customers value in Jollibee Food Corporation

Significance Of This Study

Improve the literature regarding the junk food string in the Philippines and it's critical success factor.

Fulfil MBA requirements.

Inform the business enterprise sector regarding the success factor of Jollibee Food corporation in the Philippines against big American based mostly food string.

Literature Review: The Ideas And Concepts In The Research.

1. The critical success factor analysis is a method of analysing the area that requires improvement. It is required to ensure the success of the business to achieve it's mission.

It is an integral area where adequate performance is required for the organization to accomplish it's goals. It is a means of discovering the jobs and requirements necessary for success. The critical succes factor method start with a quest vission statement. Develop goals and their success factors. (Austin, 2002)

2. Porter's five pushes- Michael Porter proposed that the organization is being affected by five pushes. They are rivalry, supplier ability, power of the customer, threat of admittance, and the risk of substitutes. (Hollensen 2003, 74-79). Understanding the five causes will provide the organization to develop strategy in order to take advantage to their competition. (Thurlby, 1998).

It is important to know your competitors in the business industry. To know what product and services they are providing to their customers and what competitive strategy they are doing in order to be successful available.

It is also important to know your supplier. The company needs some resources and materials in order to produce goods and products because of their consumers. There should be a good relationship between your buyer and the dealer.

The buyer should be given importance because the business depends on how many buyers the company have. They are the asset of the business and they give revenue to the organization. They are the one who establish the price of your product.

New competitors enter and exit the market. Some stay some goes. Some will be successful and some aren't. It is important to know what's going on to the market. If they're new competition that are getting into, it will have an effect on your company's revenue.

The threat of substitutes, this is important to really know what other companies are providing the consumers and discover what other to your product and services to make it successful.

Threats Of New Entrants

Small hen shop

Are growing


Jollibee Vs




Supplier Power

Strength of



Buyer Power

Product cost

Against other


Threat Of Substitute Product

Chicken shop are

More likely affordable

Fig. 1 Porter's 5 Makes Model of JFC

SWOT ANALYSIS it is just a techniques of analysing the company's strength, weaknesses, opportunities and threats. The aim of this is to recognize the inner and external factor that influences the company's goal. The inner factors will be the strength and weaknesses, and on the other palm the exterior factors will be the opportunities and hazards. (Marketing Educator)

Positive Negative Strength Low Cost Operation Local Taste First Comer's Advantage Weakness It Is Franchised Store So The Service Delivery Vary From Store To Store Opportunities Develop High Technology To Be Sure Of Good Quality Products. Threats Threat Of New Entrance- Small Fowl Shop High Rivalry With Mcdonalds Economic Turmoil- Customer Has Less Overall To Spend For His Or Her Meal

Fig. 2 SWOT Evaluation MODEL JFC

Jollibee Food Corporation's Power are the low cost operation system. They are selling their products in lower price compare to Mcdonalds and with local style. They

get the good thing about being the first comer, on the market. They enter the marketplace in the Philippines first in 1975, in otherhand Mcdonalds go into the marketplace in 1981.

The opportunities of Jollibee Food Corporation, should develop high technology in the procedure system to boost products and services they offer to their customers. Make more enhancements so that it will gain edge against it's competitors specially Mcdonalds that is American based company and also known worldwide.

The weakness of Jollibee is that it's a franchised store, so the service will vary from store to store. The quality of service will depend on the staff of the store and the franchisee.

The risk of Jollibee is the high competition against Mcdonalds, and the threat of new entrants, there are quantity of small rooster shop that are beginning in the Philippines that are cheaper than Jollibee and Mcdonalds. Due to economic turmoil in the Philippines, people have less money to invest on their foods.

7-S Construction of Mckinsey- a way of effectively organizing the business through seven factors.

Shared principles- it is the core of the business's goals and what they have confidence in.

Strategy- it is their method about how to reach their goals.

Structure- it is the way how each section in the business interact with one another.

System- technique and process that should be done

Staff- the staff, or the workers in the company

Skill- the attributes and competencies of every employee in the organization.

Style- how each leader of one company connect to their subordinate to determine leadership. (Value Structured Management)


Jollibee Food Corporation's strategy are providing cheaper products compare to Mcdonald's. The company provide products with local style. The company also offers alliances and purchased different fast food companies in the Philippines which can be, Greenwich (Pizza- pasta), Red Ribbon (Cakes), DeliFrance ( Sandwiches and beverages), and Chowking ( Chinese Food). (Jollibee The Official Website)


The JFC is a franchise company, with 686 shops in the Philippines and 57 stores in international market. The business are separate into different divisions. In the President of the company, Director, Corporate strategy division, Engineering, RECRUITING, Information Management, Procurement, PROPERTY, Audit and Commissioner.

(Jollibee The Official Website)

Shared Values

JFC value every Filipino family. It concentrate mainly in their customers and providing fun atmosphere for every group and family who are eating in their restaurants. They value every individual who choose to consume in their restaurants.


Jollibee provide training to their employees and appraisal every time they enhance their performance in the business. The company provide incentives and bonuses with their staff.


The franchise fee for Jollibee

P 15- 30 Million (local currency)

$ 266, 455- $532, 890 ( US Dollars)

(Set up Biz Hub)

5. Infestation- ANALYSIS- (STEEPLE) this is a method of analysing the political, economic, communal and technological aspect of one organization to be able to make a visible strategy. ( Value Based mostly Management)

Political factors- create a big impact in the business operation. It includes policies governing

tax, legal issues, and employment rules.

Economic factors- it includes a huge impact in business procedure if the customers afford to buy your product and the cost of business development, inflation rate and exchange rate.

Social factors- it has great impact in the operation, through the lifestyle that customers create in the contemporary society. It includes family, education and faith, age and job.

Technology- it includes something to do with the new creativity that has high impact available.


Political issues influence the economy in the Philippines, politics alliances and employment regulation have a great impact in the operation of junk food chain


Due to financial problems in the Philippines, some family cannot manage to buy their food in Jollibee.

There is a challenge with the inflation rate in the country


Jollibee has partnership with Department of Friendly Welfare aiding children in the Philippines. The company provide financial advice about different charities in the Philippines


JFC has a network of circulation facilities to provide to their stores countrywide.

Fig. 3 PEST ANALYSIS of Jollibee Food Corporation

Methodology: Research Design

The researcher will employ exploratory research design to gather information and knowledge about the company's backdrop, record and other useful information for the research. I will utilize the internet, and other shared materials such as published articles, magazine, and journals to gather further information.

The researcher will also use of most important research design like review questionnaire to gather quantitative data. The review will be divided into two parts. The first parts would be the questions about the objective of the study and the previous part will be an wide open ended questions regarding the demographics such as age, sex, location, job and income.

The researcher will also use qualitative research method in order to establish the partnership of one changing to some other and correlates with the ideas.

Sample Design

The researcher will employ non-probability sampling, quite simply the respondents aren't randomly determined. The sample will be about 150-200 respondents. The topic or respondents are those who are willing to take part in the research or even to answer the review questions. The target of the study will be the customer's of Jollibee Food Corporation in the Philippines. The researcher use the internet to gather information through uploading study questionnaires in Facebook, My space and Friendster websites.

Data Gathering

Data collection will be through online. Due to the location of the researcher and the location of the market in the Philippines internet surveys will be useful and can generate faster response. The respondents will be ask to fill out the survey questionnaires. The questionnaires will have five replies. (Highly disagree, disagree, neutral, recognize and strongly acknowledge. ) The first part of the survey will focus mainly on the objectives of the research. The past part will be an available ended questions and the respondents personal data

like get older, income, status, job and their location and competition. Review will be use as it is more cheap and adaptable to utilize for the study. Through paid survey the researcher can reach the Filipino respondents who value the Jollibee Food Firm. The researcher use flow charts and diagrams to present data.

Data Analysis

In order to measure the replies with the study, the responses for the study will be code

like (1) for firmly disagree, (2) for disagree, (3) for natural or neither concur or disagree, (4) for agree and (5) for highly agree. From then on the likert data will be analyse through descriptive figures. It is an ordinal level which measure the level of agree and disagree and it includes five reactions. Therefore we use the non parametric test. The researcher will summarize the responses and present it to charts and graphs. Through replies with the survey, the researcher use the code for every responses to measure the mode or quite simply the most frequent responses by the samples and the median as well to measure the central inclination.

After that, inferential statistics will be use to test the hypothesis. Kruskal Wallis Test will be use, it is one way analysis of variance by William Kruskal and W. Allen Wallis. (Wikipedia). Kruskal Wallis test works by substituting the info set. It'll then compute the sum and the H is determined as well. H is already given in the formulation representing the variance in an organization. The chance of getting the likelihood of a genuine null hypothesis, when H is uniformly allocated in chi square measure of regularity, the degree of liberty minus is calculated. (Handbook of Biological Information, 2009)

The method for Kruskal Wallis test:

H = 12 ( Tg)2

________ ( __________ ) __ 3 (N + 1)

N (N+1) ng

After using Kruskal Wallis Test, the researcher needs to measure the degree of agree and disagree reactions through chai rectangular test. The chi rectangular test method:

ef = row total x column total

over all total

Where ef = expected frequency

[ ( o - e ) - ]† x† ____________


Reliability And Validity

The survey questionnaire will be test by sample respondents to check the validity of the review. The questions will be scrutinize and enhance to clarify certain areas of matter. Through test run of the survey questionnaire, the researcher can find any mistakes that will impact the validity and dependability of the study questionnaire. The questionnaire will be enhanced and edited accordingly predicated on their feedback and suggestions of those who will take part in the test run.

Reliability defines as, if the effect is remains reliable, and if the result acquired with the result can be replicated under the same methods, it is therefore reliable. (Joppe, 2000). Test re test can be use and the same results can be obtain, it is therefore reliable. On other hand, validity define as if the research study really measure what it wishes to measure it is therefore valid. (Joppe, 2000). The research study is said to be valid if the way of measuring with the info gathered are accurate and accurate.

E. Reflections:

In keeping the integrity of the study, the researcher follow the rules and rules to observed moral regulations. All resources used for the research such as catalogs, journals, articles and other printed materials are properly recognized and referenced. The researcher use the Harvard referencing guide to avoid issues of plagiarism. The info that will gather in the review questionnaire such as private information of the respondents will never be disclose and will keep it confidential. The personal information on the respondents will be kept anonymous and confidential.

The researcher will avoid to be biased with the study results or responses. The reactions will be accumulated and summarize appropriately and avoiding wrong interpretations or reporting incorrect conclusion on conclusions.

The researcher create a survey questionnaire which will be published online in Facebook, Myspace and Friendster and all information that will accumulate with the study will be carefully examine and summarize the info that will be collected and test and measure the validity and consistency.

The researcher has a limited knowledge about reports, with the help of SPSS software downloaded from the internet, it will help me measure exactly the validity and consistency of the replies from the review and use different statistical solution to assess mean, median and setting and the typical deviation.

The method of gathering and collecting information is also limited because the positioning of the study will be in the Philippines. Only online survey will be use to get 150-200 respondents who are prepared to answer the survey questions online. Most of the respondents will be Filipino or those who are in the Philippines who value Jollibee Food Firm other than its rivals like Mcdonalds.

F. Time Level And Resources:

The researcher will continuously gather more information about the Jollibee Food Organization, the company account, backdrop, issues and make intensive research about the problems through further reading of publicized articles and journals and books related to this issue. The first and second week of March will spend on working out with gathering more info and knowledge about the research matter. Upon looking forward to the result of the grades for Research proposal, I'll spend the remaining weeks to go to British Library to access the related materials for my research subject. The review will be administered and published online on March 25, 2011 after the result of marks will release for the study method project to get some ideas and if they are corrections with the proposals written. If the survey questionnaire sample should be enhanced or edited before uploading it to the internet. Ahead of a test run will be conducted for the review questionnaire to test if it's effective and you will be comprehended by the respondents. After uploading the review to the internet, the researcher will continue to work on the review of the literature until the end of March 2011. The final collection of survey online will be on the 1st week of Apr. It'll then be analyse and summarize on a single week and gauge the validity and consistency using statistical methodology. The research should be completed prior to the 2nd week of April for the deadline of distribution of the final dissertation to complete my MBA degree.

Assignment was given (Research Proposal)

January 25, 2011

Deadline for Submission of Research Proposal

February 25, 2011

Visit British Collection to assemble Related Information about this issue.

March 5-12, 2011

Release of Marks for Research Methods Assignment

March 25, 2011

Survey Questionnaire will be Submitted Online

March 30, 2011

Final Collection of Survey

April 5, 2011

Complete Analysis of Data Collected

April 8, 2011

Complete Final Report

April 15, 2011

Deadline for Submission of Dissertation

To be Posted

Fig. 4 Time Scale of the Research


The fast food string market in the Philippines are continuously growing and growing. Competitors continue entering the marketplace providing the same service and products with Jollibee. But nonetheless Jollibee is the quantity food chain in the country. Technologies and technology are continue to provide quality products locally and abroad. The researcher suggest furthermore research about the company's competitive strategy and other factors impacting the business's success not only in the Philippines but still growing around the globe. The company continuously acquiring different corporation locally and in the international market. The researcher will continuously study about the other factors contributing to the success of local company up against the giant junk food chain that is well known internationally.


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Originally published Nov 13, 2018, updated Feb 25, 2021

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