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Magandang Umaga

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g g g

Organizational Culture

and

Strategic Fluidity

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Historical Background

1898 Spanish American War

1946 - Philippines Independence

Familiarity with US culture, foods,

etc.

Great mobility between countries onindividual and corporate level

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The Man Behind the Bee

1975 Tony Tan Cakitong sets up a

two-outlet ice cream parlour in Manila

His ambition a fast-food outlet chain

Striking out on his own

The US recce Why reinvent the

wheel?

1978 - The symbol of Filipino pride

Catering to the locals

1981 McDonalds comes to the

Philippines

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The bee hops around and produces sweet things in

life and is happy even though it is busy

1989-90 the failed military coup

JFC crosses the P 1 billion mark

Growth through acquisitions

1991 Jollibee s 100th outlet

Turning threats into opportunities

1998 Jollibee opens its 300th store

2001 Jollibee opens its 400th store

Only two operations have a wider

reach in th

ePhilippin

es th

egovernment and the Catholic Church

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Understanding Filipino tastes and

behavior

Customeras king adapting itself to

suit the customer

Customerservice a KRA

Marketing and advertising

Reaching out to children

Jollibees CSR activities

Jollibees success due strong values,

mission and vision

One More,One More! Serving the People,

Serving the Nation

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Values

Customer Focus

Excellence through teamwork

Respect for the individual

Spirit of Family and Fun

Humility to listen and learn

Honesty and Integrity

Frugality

Mission To serve great tasting food,

bringing the joy of eating toeveryone

Vision

The most endearing brand

We will lead in product tasteat all times

We will provide FSC (Food,Service and Cleanliness)excellence

Happiness in every moment

By year 2020, with over 4,000stores world wide

Jolibee is truly a GLOBAL

BRAND (and the Filipino willbe admired world wide

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Leadership

Tuned intomarket need

Innovative/creative

Constant focus

on the Vision

Understandingkey areas

Fluid open tochange

Inspirationfrom

competitors

Ability to facecompetition

Love and

attachment forthe country

Love and

attachment forthe Company

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Mr. Tans Focus

Responsibility

Delegation

Expansion of

business

Employment/

family

environment

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NATION ANDLEADERSHIP

CUSTOMERS

EMPLOYEES

VERTICALINTEGRATION/QUALITY

FRANCHISES

Organizational Culture

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Customers

Kids gifts ,toys,etc

television shows , and movies

associaton with children centricissues

Jolly Kiddie Meal

Family

provided various value meals

Jollibee Mobile

Jollibee Express Kiosk

Through the Vision and Mission statement it is clear that customers are given -

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Jollibee was ranked 16th in Asia and 1st in Philippines for best

employers and this was achieved by them through -

Employees

Familyatmosphereand sense ofbelonginess

Emblematicrelationship

Compensation andbenefitsGrowth

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Value Chain

ConstantAttention

Innovation Testing Piloting

Jollibees expedition for brilliance and superiority was mirrored from early stages

itself

Pre- fabricated materials were used to construct the stores which not only helped

in saving amount but also time

Both the outfits were mechanized and the company continuously incorporated

new technologies to improve manufacturing processes

Jollibees Proficiency in running fast-food business enhanced so rapidly that itdecided to outsource its IT support activities

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Pasig city

(Luzon area)

Raw materials andingrediant planning Cost control andEfficiency

warehousing

Mandaue City

(Visayas-Mindanaoarea)

Manufacturing ofprocessed foods

Disrribution andlogistics

EnsuringConsistency and

high quality

Vertical Integration

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Franchises

Virtually half of the Jollibees Stores were franchised in the Philippines -

Standing inthe

community

LeadershipSkills

Peoplehandling

skills

Willingness to devote

timeBOTP Selection

Market penetration and improvedproduct offerings

Financial and creative support

Frequent feedback

Store construction

Equipment/furniture/fixture selection

Overall design outlet

It gave special consideration

while selecting its partners and

treated them as family members

Apart from investing P15 and

P30 million ,they supported the

franchises by

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Acquisitions and Globalization

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Growth Through Acquisitions

1994

Greenwich Pizza

1995 - DeliFrance

2000 - Chowking

2002 Tokyo

Teriyaki House

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Globalization

China

PhilippinesBrunei

Vietnam

Indonesia

Hong Kong

Dubai

Saudi

Arabia

United

States

Strategic blueprint foroverseas expansion

Identified expatriate Filipino populations

1987 first overseas outlet in Brunei

Furtherexpansion into Indonesia and Hong

Kong

1997 Recession in South-East Asia Jollibee turns

crisis into opportunity by limiting growth in Philippines and

expanding overseas

1998 First Jollibee outlet opens in Daly City,California

Dubai

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The US Expansion

JFC team was in San Francisco for two years to examine the overallindustry dynamics

Altered outlet layouts and menu

Limited Filipino populations posed

difficulties in large scaleexpansion

Plans to create multi-brand outlets

Benefits such as lowerrents, obstacles

such as stringent labour rules and complexregulatory setup

Lack of American partners came to be seen as a mistake

JFC has a clearstrategic intent to enter the US market for the long

run

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Beyond the Case

Expansion from 2003 to the present

2004 JFC opens its 500th outlet in Basilan,

Philippines

2007 JFC opens its 600th outlet in Aparri, Philippines

2007 JFC opens its first outlet in Las Vegas, Nevada

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Beyond the Case

The Current Scenario

JFC currently operates the Philippines largest food service network with a total of

1578 outlets -

703 Jollibee

404 Chowking

218 - Greenwich23 DeliFrance

15 Manong Pepes

Overseas, JFC has 375 outlets

185 - Yonghe King

64 Jollibee (mainly in the United States)38 - Red Ribbon (all in the United States)

37 - Chowking (mainly in the United States)

51 Hong Zhuang Yuan

From its initial milestone of 100 outlets in 1991, JFC today operates a total of 1953

outlets worldwide well on its way to achieving its Vision of 4000 outlets by the year2020

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Beyond the Case

Financials and the Way Forward forthe Busy Bee!

17.2% increase in net income in financial year2009 compared to 2008

13% growth in sales in financial year2009 compared to 2008

Plans forfutureexpansion of Chinese and US markets as well as launching Jollibee inIndia

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Any Questions?