JOLLIBEE FOODS CORPORATION

Global Strategy

Overview: Emerging Market

High Growt

h

Financial Infrastruct

ure

High Risk

Market Inefficienc

ies

Uncertain Regulatio

n

Philippines

Export led economy Member of ASEAN High economic growth Large consumer market Privatization initiatives by government

Vision

We are the best tasting Quick Service Restaurant(QSR)

The most endearing brand…

that has ever been…

We will lead in product taste at all times…

We will provide excellent customer service in every encounter…

Happiness in every moment…

By year 2020, with over 4,000 stores worldwide, Jollibee is truly a GLOBAL BRAND

(and the Philippines will be admired worldwide)

Jollibee Foods Corporation

Began in 1975 as an ice-cream parlour Headquartered in Pasig City, Philippines Revenue in 2011: PHP 63 Billion (USD 1.47

Billion) Employs 40,000 people worldwide Philippines, Thailand, Singapore,

Indonesia, Hong Kong, United States and China

Growth

Growth

2011- Purchased Chowking stores-Purchased 54% share of BK Titans, Inc. (Philippines), - Obtained 50% of San Pin Wang in China* 2001 stores in Philippines and 468 stores in foreign countries

International Operations

Philippines, USA, Hong Kong, Vietnam, Saudi Arabia, UAE, Brunei

Financial Growth

200620072008200920102011PHP 0.00

PHP 10.00

PHP 20.00

PHP 30.00

PHP 40.00

PHP 50.00

PHP 60.00

PHP 70.00

Gross revenue

Year

PH

P (

Bil

lio

n)*

*1 US$ = 42.7 PHP(Philippine Peso)

• Revenue growth of 9%-18% between 2006 and 2011• Income growth of -3%-20% between 2006 and 2011

Global Expansion Strategy

Target

Expats

Plant the Flag

Initial International Strategy

Global Expansion Strategy

Large Filipino popula

tion

High growth

fast food

market

New International Strategy

Analysis of Strategy

Limited markets to target Retain non-Filipino customer base through

improving quality, consistency and standardization

Generic menu Emphasis on research to provide localized

food menu Avoid excessive localization

Stick to its segment of Quick Service Restaurants (QSR)

Globalization Challenges

Filipino companies have little exposure to competition with foreigners

Expansion through M&A: Talent management and best practices difficult to streamline

Higher labour costs, lower margins Competition from well established global

firms with deep pockets Limited Markets with overseas Filipino

communities

2012 and beyond

Expansion into rapidly growing fast-food market: China, Indonesia, Vietnam, Middle-East

Improve operational efficiency and adjust to local tastes

Revenue split: International/Domestic

Current 20:80

Target 50:50

2012 and beyondCountry

Factor Endowment

Related Industries

Demand Conditions

Strategy, Structure,

Rivalry

Saudi Arabia

High Foreign Labor Dependency, Duty Free

Anti-trust legislation, Low entry barrier

Needs for social spaces

Many global competitors are entering the market

Malaysia

Natural resources and good location to be attractive to foreign investors

Most companies are small scale

Still strong demand for local-oriented products

Most domestic firms operate within the country

Singapore

High quality inputs from outside i.e. HR, IT, Capital

Openness to foreign companies

Sophisticated consumers, diversity

Open and vigorous competition

Australia

Skilled work force in agriculture, Good Infrastructure

Agricultural business

Westernized taste

Fast food competition is high

India

High population, high growth rate

Global food chains and local food chains co-exist

Booming middle class, Tastes are still local

Many local food chains

Discussion

Let’s grab a

Chicken Joy!!