Business Management and Strategic Analysis of Jollibee Report

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This report provides a comprehensive evaluation of Jollibee Food Corporation, analyzing its current market position and projecting its state in the next 10 years. It examines the internal and external factors impacting the company, including market forces and strategic plans. The report utilizes tools such as the BCG matrix and VRIO analysis to assess Jollibee's competitive advantages and weaknesses. It explores the company's supply chain value and CSR initiatives, highlighting their impact on brand recognition and customer loyalty. Furthermore, the report addresses the challenges faced by Jollibee, such as budget constraints and marketing issues, and proposes strategies to improve its marketing efforts and achieve growth. The report also discusses strategies such as diversification, product development, and competitive advantages. Finally, it highlights the importance of employee relations, market forces, and strategic planning for long-term success.
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BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT 1
BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT
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BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT 2
The main aim of this report is to give a full evaluation of Jollibee Food Corporation and
to estimate its state in 10 years given the market forces as well as internal factors. There are
several reasons and factors that have brought Jollibee Food Corporation to this position, both
internal and external forces that will affect the state of the company in the next 10 years. There
are a number of market forces and internal factors that need to be considered in order to ascertain
the problems facing the organization and also come up with a 10 year forecast of the corporation.
The company is currently the leading fast food company in the Philippines and is now aiming at
diversifying by venturing into new markets such as the Unites States. Before settling on the
decision to either continue as it is or to diversify, it is imperative that Jollibee analyzes its
techniques and strategies that it uses to develop strategic plans. One of the tools that could be
used in this case is the BCG matrix. The company should ensure that it holds its market share.
Contrary to this, the stars will become a Cash Cow.
Figure 1: Jollibee BCG matrix
chickenjoy burger steak
shangai jolly sphagetti
garlic pepper beef
palabok burger
peach mango pie
Stars question mark
dogscash cows
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BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT 3
The VRIO analysis of Jollibee company identified that the organization has to be rare, valuable,
perfectly non sustainable, and imperfectly imitable. These four attributes will enable Jollibee to
attain a competitive advantage in the market. This can be done by ensuring that the company
employs resources that will be very costly for competitors to imitate. In addition, the company
should also employ resources that are very rare and valuable in its operations. By doing this it
will achieve its goal of attain a competitive edge over its competitors.
In regard to Jollibee’s supply chain value, the company is the leading fast food company
in the Philippines. Based on its sales, the company could be said to be at the top of the supply
chain value race. The company also shares a value in CSR. It supports programs and projects
related to poverty, leadership development, education, and disaster response. Through Corporate
Social Responsibility, Jollibee Food Corporation will be able to achieve some benefits that are
well recognized through the potential brand recognition that the company creates. CSR creates a
positive perspective and reputation of the company which in most cases results to increases in
customer loyalty and the sales that the company makes (Cherney & Blair, 2015 p. 1417). CSR is
also a great tool for creating and attracting great talents in the society while at the same time the
company is able to retain the staff. Generally, CSR is advantageous due to easier access to
capital and also since it is a route to organizational growth.
Upon evaluation of the organization, the entity has been facing a number of issues in
regard to marketing due to a number of constraints. The organization has had budget constraints
that limit the amount set aside for marketing hence it has not had the chance to take advantage of
new market shares. It is due to this budget constraint that the organization has also failed to take
advantage of new technological trends to advertise and market its services such as online
platforms. The marketing efforts that the entity has been making in the past are yet another issue
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BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT 4
that it is facing. The entity is also facing stiff competition in its domestic market since they have
not made strong marketing efforts to achieve competitive advantage. In order to address these
main issues facing Jollibee Food Corporation, it is important that the organization invests in
more efficient marketing strategies such as online marketing. By so doing, the organization will
focus and be in a position to sell its products in new markets. This will help address the issue of
marketing that the organization has been facing.
Upon evaluation of CSR, BCG matrix and supply chain of the organization, there are a
number of strategies that Jollibee Food Corporation is currently implementing to resolve the
problems mentioned above. These strategies are fundamental as they will ensure that the
company is profitable and has a competitive edge in the market in 10 years (Saeidi et al., 2015).
To increase its service sales and efficiency in 10 years, the organization has implemented growth
strategies. This is important as it will help the entity take advantage of economic opportunities in
both domestic and international markets. In addition, the organization has ensured that they make
changes to its services by ensuring that they are affordable. This will ensure that the organization
gains a larger customer base within 10 years.
The main reason behind the proposed courses of action is because a number of
organizations that have been facing such issues have really benefited from implementing such
strategies. In addition, implementation of the strategies will ensure that the organizations benefit
in other diverse ways such as improved productivity and reliability other than just resolving
issues facing it. Other courses of action that the company has implemented and also aims at
putting in action in the near future include low costs and also offering discounts (Namada, 2018
p. 101). It should be noted that investing in new marketing strategies and growth strategies may
result in increased costs and expenses. However, this risk is worth taking since the
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BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT 5
implementation of the strategies will result in increased profitability (Bunger et al., 2017, p. 25).
The staff members that are responsible for implementing these strategies should ensure that they
begin by creating online platforms such as websites and Facebook accounts to advertise their
products.
Most of the changes in organizations fail due to not communicating the need for the
change to the strategies. Letting go and making concessions by the workers will be enhanced by
the nurses knowing why the change is essential. Through openness, honesty and transparency
from the management, the management of this entity will succeed in implementing the change in
10 years. Lewis model is not only essential in implementing change but it is also essential for
team building. It is a perfect way for enhancing changes since this change is a new challenge
responsible for motivating everyone but not a threat as viewed by many. Efficient and successful
implementation of the strategies will result in increased sales of the organization’s products,
increased profitability, and reliability in 10 years. Implementation of the strategies will also
result in costs reduction and increased productivity hence minimizing the impact that past
marketing crisis that has faced the entity over the past years. Jollibee Food Corporation’s
mission clearly specifies what the company needs to do specifically so as to become the leading
business in fast-food business while the vision has specifications to ensure that executives and
employees in the company support diversification of the global business. Implementation of the
mission and vision goals of the company has ensured the company is able to compete effectively
with other companies in the fast food fields.
Diversification and product development are also strategies that have been put in place by
the Jollibee food corporation to achieve its competitive advantage in the fast food market.
Despite the company focusing mainly on products concerning fast food, the company should also
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BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT 6
consider potential expansion and diversification. For instance, the company should consider
adding more product based division in its structure. Jollibee food corporation product-based
divisions include the following: The central fast food product services. Jollibee Food
Corporation should implement strategies to ensure that the business is able to maintain its
competitive advantage in the fast food industry based on the accessibility and efficiency on the
provision of its products. The approach that should be used by the company for business growth
is the porter’s model for generic competitive advantage. In this case, it is clear that this strategy
would ensure that there is growth and competitive advantage through the ease of access to
capture large share of the markets in order to address competition against other companies such
as Mc Donald. Jollibee Food Corporation also hopes to rebuild the competitive advantage of the
organization by implementing marketing strategies whereby it will invest mainly in design and
advertisements. In every initiative that a business takes, there are always some issues that should
be considered especially with the current changes in our social, environmental and economic
changes.
In conclusion, based on the CSR, BCG matrix and supply chain analysis of Jollibee Food
Corporation, long-term results will be realized in the next 10 years. upon addressing wages of its
employees, marketing strategies, customer liaisons, employee needs, and market forces. Besides,
upon evaluating the various strategies that the company has put ibn place, it is evident in the next
10 years it will have gained competitive advantage and become more profitable.
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BUSINESS MANAGEMENT AND STRATEGIC MANAGEMENT 7
References
Bunger, A.C., McBeath, B., Chuang, E. and Collins-Camargo, C., 2017. Institutional and market
pressures on interorganizational collaboration and competition among private human service
organizations. Human Service Organizations: Management, Leadership & Governance, 41(1),
pp.13-29.
Chernev, A. and Blair, S., 2015. Doing well by doing good: The benevolent halo of corporate
social responsibility. Journal of Consumer Research, 41(6), pp.1412-1425.
Namada, J.M., 2018. Organizational learning and competitive advantage. In Handbook of
Research on Knowledge Management for Contemporary Business Environments (pp. 86-104).
IGI Global.
Saeidi, S.P., Sofian, S., Saeidi, P., Saeidi, S.P. and Saaeidi, S.A., 2015. How does corporate
social responsibility contribute to firm financial performance? The mediating role of competitive
advantage, reputation, and customer satisfaction. Journal of business research, 68(2), pp.341-
350.
Tai, F.M. and Chuang, S.H., 2014. Corporate social responsibility. Ibusiness, 6(03), p.117.
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