PESTLE and SWOT ANALYSIS of Jollibee Foods
Corporation
Operations Management (TQM)
CBM 0011-1 | 1st Sem
Submitted to:
Prof. Kevin M. Adolfo
Submitted by:
Group 8 | BSBA HRM 2-1
Acsay, Ashley J.
Carmona, Ryan France M.
Palacol, Princess Anne C.
Pantoja, Airalene S.
Group 8
BUSINESS/ PRODUCT: JOLLIBEE FOODS CORPORATION
PESTLE ANALYSIS
POLITICAL ECONOMICAL
● Government regulations on food ● Inflation Rate
safety and sanitation. ● Consumer Purchasing Power
● Governments take initiatives to ● Unemployment Rates and Labor
improve the health of the people Costs
by requiring restaurants such as
Jollibee to indicate nutritional
factors for each meal they offer.
● Policies regarding taxes
implemented by the government.
IMPACT: IMPACT:
● Jollibee must comply with strict safety ● Rising inflation can increase the cost of
standards, ensuring all food products meet ingredients, labor, and other operational
health guidelines. Failure to comply may expenses, leading to higher menu prices,
which may affect customer affordability
result in fines or temporary closure,
and demand.
increasing operational costs. ● How much money people have to spend
● Jollibee is required to display nutritional affects how often they eat at Jollibee.
information, encouraging transparency When the economy is struggling and
and influencing consumer choices. This people have less extra money, they might
could result in a shift towards healthier buy fast food less often. But when the
menu options, which may attract more economy is doing well( economic
growth), people may have more money to
health-conscious customers.
spend on dining out. Jollibee needs to
● Higher taxes can reduce profit margins adjust its prices and promotions
and may force Jollibee to adjust pricing depending on how much people can
strategies. This could affect affordability afford at the time.
for customers and impact overall sales ● High unemployment rates can provide
performance. Jollibee with more job applicants of
potential employees, which may help
reduce recruitment costs. However, low
unemployment rates or changes in labor
laws (such as minimum wage increases)
can drive up labor costs, affecting profit
margins. To remain competitive, Jollibee
needs to balance employee wages with
productivity and efficiency.
Group 8
SOCIAL TECHNOLOGICAL
● Cultural Preference ● Self-Service Kiosks
● Family-Oriented Values ● Food Delivery Platforms
● Changing Lifestyles ● Digital Payment Systems
● Health-Conscious Consumers
IMPACT: IMPACT:
● Jollibee’s menu features popular Filipino ● Self-service kiosks let customers
favorites like Chickenjoy and Jolly place their orders directly, reducing
Spaghetti, which resonate with local tastes the pressure on front-line staff. This
and help maintain a strong connection speeds up the ordering process,
with Filipino culture. This familiarity allowing the kitchen to receive and
makes Jollibee a favorite for both locals prepare orders faster, which helps
and Filipinos living abroad. Jollibee maintain high production
● Jollibee is seen as a family-friendly levels during peak times.
restaurant, making it a top choice for ● Jollibee’s food delivery service, along
families looking for a place to enjoy meals with partnerships with platforms like
together. Its focus on fun and creating GrabFood and Foodpanda, allows
memorable experiences attracts customers customers to enjoy their favorite
of all ages, reinforcing its brand identity meals at home, ensuring that they
as a place for family gatherings. consistently meet customer demand
● As lifestyles become busier, more and maintain quality.
customers seek fast, easy meal options. ● Digital payments make transactions
Jollibee’s quick service and affordable faster and more secure. This is super
prices meet these needs, making it a convenient for customers who prefer a
convenient choice for those on hectic cashless, hassle-free experience,
schedules. making them more likely to come
● There is also a growing demand for back.
healthier food options as more people
become health-conscious. Jollibee may
need to introduce more nutritious
alternatives, like plant-based or
low-calorie meals, to cater to this
emerging market.
Group 8
LEGAL ENVIRONMENTAL
● The Food Safety Act of 2013 ● Energy and water Reduction
● Presidential Decree No.856 or the Code ● Waste Management
on Sanitation of the Philippines ● Sustainability Initiatives
● FDA Act of 2009 ● Eco-Friendly Packaging
● Labor Code
● Intellectual Property Code
● Data Privacy Laws
IMPACT: IMPACT:
● Jollibee must ensure that all food products ● Energy reduction initiatives, such as
comply with safety standards to prevent adopting energy-efficient appliances, can
contamination, thereby protecting attract environmentally conscious
consumer health and enhancing customer consumers and reduce operational costs.
trust. This is especially important as consumer
● Strict hygiene and sanitation in all outlets awareness of climate change continues to
are essential for maintaining public health rise.
and avoiding penalties or closure. ● Water reduction strategies, like using
● The FDA Act regulates product water-efficient systems, can help Jollibee
ingredients and labeling, requiring lower costs and appeal to customers who
Jollibee to follow guidelines to avoid care about sustainability.
fines, protect consumer health, and ensure ● Effective waste management is important,
transparency in food production. especially considering Jollibee generates
● The Labor Code mandates fair wages and large amounts of food and packaging
working conditions for employees, waste. By reducing waste and improving
helping Jollibee build a reputation as an recycling, Jollibee can minimize its
ethical employer and reducing the risk of environmental impact and improve its
labor disputes. corporate social responsibility image.
● Intellectual property laws protect ● Implementing broader sustainability
Jollibee’s brand from infringement, initiatives, such as eco-friendly packaging
ensuring its competitive position and and reducing its carbon footprint, will
maintaining brand integrity. resonate with environmentally conscious
● Data privacy laws, particularly with the customers, strengthening its market
rise of digital payments and online position as a responsible brand.
delivery platforms, require Jollibee to
protect customer data and maintain secure
Group 8
transactions. Compliance with these laws
enhances customer trust and prevents
legal liabilities.
SWOT ANALYSIS
STRENGTHS WEAKNESSES
1. Strong market presence 1. High Operational Costs
2. High standards for food and service 2. Lack of Healthy Options
3. Iconic Filipino flavors 3. High Employee Turnover
4. Strong brand recognition 4. Quality Control Issues
5. Creative advertising 5. Competitive Pricing Pressure
OPPORTUNITIES THREATS
1. Expansion into new markets 1. Intense competition
2. Collaborations with P-pop artists 2. Regulatory challenges
3. Growing demand for delivery services 3. Changing consumer preferences
4. Sustainability initiatives 4. Labor shortages
5. Healthier menu options 5. Economic issues
Group 8
SWOT MATRIX
STRENGTHS WEAKNESSES
Can pursue opportunities by: Can overcome weaknesses by:
Leveraging its strong market Utilizing its market presence and
presence and high standards to standards to offset high operational
expand into new markets. costs.
Using iconic Filipino flavors and Introducing healthy menu options to
brand recognition for P-pop artist attract new customers.
collaborations.
OPPORTUNITIES Strengthening brand recognition to
Utilizing creative advertising to reduce employee turnover.
capitalize on the growing demand
for delivery services. Enhancing quality control through
innovative advertising.
Implementing sustainability
initiatives to enhance brand image Leveraging strong market presence
and attract eco-conscious to mitigate competitive pricing
consumers. pressure.
Can pursue opportunities by Defend by:
bridging the gaps by:
Focus on their strong market
Leveraging a strong market presence and innovative advertising
presence to stay competitive. to maintain customer loyalty and
attract new customers.
Using high standards to meet
regulatory requirements. Utilize their high standards for food
and service to consistently meet
Adapting iconic flavors to changing regulatory requirements.
tastes.
THREATS Adapt by introducing healthy menu
Drawing on brand recognition to options that align with evolving
address labor shortages. tastes, leveraging their iconic
Filipino flavors.
Applying creative advertising to
navigate economic challenges. Use creative advertising to maintain
competitive pricing without
sacrificing quality.
Optimizing operations by
leveraging their strong market
presence and efficient quality
control measures.
Group 8
