BANKING ACADEMY, HANOI

BTEC HND IN BUSINESS (FINANCE)

ASSIGNMENT COVER SHEET

NAME OF STUDENT Nguyen Thi Thanh Thuy _Smile_F01-D

REGISTRATION NO. ITP1133
UNIT TITLE Unit 7: Business Strategy
ASSIGNMENT TITLE Strategy Evaluation, Selection and Implementation
ASSIGNMENT NO 2 of 2
NAME OF ASSESSOR Mr. George Kencana
SUBMISSION DEADLINE April 19th, 2010

I, Nguyen Thi Thanh Thuy hereby confirm that this assignment is my own work and not copied or
plagiarized from any source. I have referenced the sources from which information is obtained by me
for this assignment.

________________________________ ______April 19th, 2010_______

Signature Date

----------------------------------------------------------------------------------------------------------------
FOR OFFICIAL USE (Course Administrator)
Assignment Received By: Date:

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Unit Outcomes
Evidence for Assessor’s Internal
Outcome the Feedback
decision Verification
criteria

Evaluate
possible
alternative
strategies –
a
Examine the substantive
approaches growth, limited
to strategy growth or
retrenchment
evaluation
and
selection

(3) Select an
appropriate
future strategy b
for a given
organisation

Compare the
roles and
responsibilities
for strategy a
implementation
in two different
organisations.

Analyse how Identify and

strategy evaluate
implementat resource
ion is requirements to
b
realised implement a
new strategy for
a given
(4)
organisation

Propose targets
and timescales
for achievement
in a given c
organisation to
monitor a given
strategy

Merit grades awarded M1 M2 M3

Distinction grades awarded D1 D2 D3

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 Evidence for Assessor’s Internal
Outcome the Feedback
decision Verification
criteria
Comments by Assessor - Common Skills
A B C D E F G

Assignment
( ) Well-structured; Reference is done properly / should be done (if any)

Overall, you’ve

Areas for improvement:

ASSESSOR SIGNATURE DATE / /

NAME:.........................................................................................
(Oral feedback was also provided)
STUDENT SIGNATURE DATE / /

NAME :..............................................................................
FOR INTERNAL USE ONLY
VERIFIED YES NO

DATE : ..........................................................................
VERIFIED BY : ...........................................................................
NAME : ...........................................................................

COMMON SKILLS & COMPETENCIES ASSESSED (indicated by X)

Table of content
A. MANAGING & DEVELOPING SELF D. MANAGING TASKS & SOLVING PROBLEMS
1. Managing own roles & responsibilities 12. Use information sources X
2. Manage own time in achieving objectives 13. Deal with a combination of routine & non-routine tasks
3. Undertakes personal and career development 14. Identify & solve routine & non-routine problems X
4. Transfer skills gained to new/changing situations & contexts
B. WORKING WITH & RELATING TO OTHERS E. APPLYING NUMERACY
5. Treat others beliefs and opinions with respect 15. Applying numerical skills and techniques
6. Relate & interact effectively with individuals & groups
7. Work effectively as a team member F. APPLYING TECHNOLOGY
C. COMMUNICATING 16. Use a range of technological equipment and systems
8. Receive and respond to a variety of information X G. APPLYING DESIGN AND CREATIVITY
9. Present information in a variety of visual forms X 17. Applying a range of skills and techniques to develop a
variety of ideas in the creation of new / modified products,
10. Communicate in writing X services or situations
11. Participate in oral & no-verbal communication 18. Use a range of thought processes

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 Pages

I. Executive summary 6

II. Introduction 7

III. Main body 8

1. Possible alternative strategies 8

2. Select the appropriate organizational and operational strategies for the company and

provide choice strategies 13

3. Compare the roles and responsibilities for strategy implementation for JFC 15

Identify and evaluate resource requirements to implementing new strategy 19

4. Annual target and specific activities with time scale for monitoring purposes 21

IV. Conclusion 26

V. References 27

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 Executive summary
My main job is to manage and outlines strategies for enterprise development in
Vietnam, I will prepare this report to audit and analyze plans to expand operations in the
country. As a starting point, a thorough analysis of the strategy can choose the best and
Jollibee, follow it about how to make this strategy work better in the future in Vietnam
market
In this report, it uses a number of strategies to analyze problems and make
suggestions:
In this evaluation strategy can be replaced - the growth and significantly limited, only
strategic or for an organization selected, we will evaluate it by measuring how the advantages
and disadvantages of strategies, based on which we can draw the measure of suitability,
feasibility and acceptability of the choice between my final plan is market penetration, market
development, diversification and related to the franchise.
According to explanations of strategies, we can draw the best strategy for the JFC.
Currently, my opinion is related to diversification, as it is consistent with the current location
of the JFC in the Vietnam market. To use a better diversification related JFC should prepare
resources, finance and investments using the method of franchising, strategies to penetrate
this market can support good for the market segment diversification in Hanoi.
In addition, the role and responsibilities of sales and marketing department should be
made clear to the diversification strategy to better support. In overall, the two departments are
responsible for market research and customer behavior to set prices in accordance with good
marketing campaign. They also have support roles associated with each other and
Administration of human resources.
However, when setting up plans and strategies, we always consider the resources it
needs to implement this strategy. For diversification, the need to prioritize the physical
resources, human resources, investment and information, new market segments. Finally, JFC
objectives and how they can monitor the implementation will be discussed. Observation,

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reporting, feedback is a good method for monitoring. Based on benchmarking with the best
companies, JFC will be easy to control how their implementation in the future.

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 Introduction
Jollibee Foods Corporation (JFC) (widely known as Jollibee) is a fast-food
restaurant chain based in the Philippines. The Group's principal activity is developing,
operating and franchising fast food stores under the trade name Jollibee. The Group also
operates fast food stores under the Chowking, Greenwich, Delifrance and Manong Pepe's
brands and a bakeshop under the Red Ribbon brands. It is over 30 year since Jollibee was
established in 1978 by Tony Tan. The Group owns over 600 stores nationwide, of these, over
320 are franchised and over 290 are company-owned. There are also 33 stores operating
overseas, including Vietnam, Hong Kong, Brunei, Dubai, Guam, Sampan and Jeddah. To
discuss more about JFC, this report will cover 4 tasks:
- Finding out the possible alternative strategies and selecting the most appropriate
future strategy
- Identifying and evaluating resource requirements in implementing said new strategy
that is proposed
- Proposing an annual target and specific activities with time scales for monitoring
purpose
- Comparing the roles and responsibilities in the strategy implementation for JFC with
the group’s business strategy implementation plan
Source of information:
This report uses the information base on scenario, history, finance and current
performance of Jollibee in Viet Nam. By using theory on book and on the internet, example
of business plan, we will apply it on Jollibee‘s case.
Limitation of Report:
Because of lacking information about the Jollibee in Viet Nam in official Jollibee’s
website, so this report can only apply theory and analysis base on information given on
newspaper and internet.

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Possible alternative strategies- substantive and limited growth, retrenchment strategies
for JFC

Evaluate strategy is very important. Base 3 critical: suitability, feasibility and

acceptability, manger of Jollibee can evaluate and choose the strategy which suitable with
Jollibee company

1.1 Substantive strategy

Suitability Feasibility Acceptability to

stakeholder

Horizontal Suitable for Jollibee Has enough financial Make a safeguard

integration because acquisitions with if Jollibee want to future supplies of raw
a Jollibee which supplies open other product and material, eliminate
with inputs of raw market which related competition then the
materials or serves as a fastfood cost as well price for
customer for JFC’ product would be
Has experience on
products (distributor or decreased, so it meets
acquiring other in the
assembler). the objective of
past its expansions
customer
through acquisition of
other popular Has some risk to
restaurants in present shareholder. Different
in the Philippines shareholders have
different attitudes to
risk. This strategy
which changed the
risk/return profile, for
whatever reason, may
not be acceptable

Vertical This strategy is

also Feasibility is able to -A secure supply of

integration satisfied exploit the achieve because components or

company strengths and Jollibee is today the materials, hence lower
distinctive competences, clear leader in three supplier bargaining
neutralize of deflect Philippine fast food power.
environmental threats.

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 -Suit the politics and market segments: - Such a policy is
corporate culture hamburger, pizza- fairly inflexible, more
pasta, and Oriental sensitive to
Food. It proves that instabilities and
Jollibee’s capacities increases Jollibee’s
are feasibility. dependence on a
particular aspect of
economic demand.
Jollibee fails to
benefit from any
economies of scale or
technical advances in
the industry into
which it has
diversified.

Conglomerate The old strategy. It is not Not have experience Impact profit, growth
diversification available because it only about management of of Jollibee. So,
is used when the current this strategy when shareholder can not
industry of the Jollibee is Jollibee want to invest satisfy with this
in decline period, and that different industry strategy
Jollibee has a large fund
to invest into the new
product (industry). Thus
it is not helpful to use this
strategy

1. 2. Limited growth strategy

Suitability Feasibility Acceptable to

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 stakeholder
Product Suitable with goals and Has got highly skilled -Low-medium risk so
development objectives: “To serve and creative product they ensure to meet
great tasting food, development team that the objective of bank
bringing the joy of eating is able to make the that is to guarantee
to everyone differentiation in the finance of
New opportunities for: product Jollibee and
geographical spread, The ability is very shareholder which is
entering new segments or good to deliver the that keeping
new uses for Jollibee. goods/services profitability at stable.
specified in this -Use different
strategy creative product from
-enough time to Jollibee to meet the
implement this demand of fast food
strategy in Vietnam due to
young tend to want
new experience
through new product
from product
development of
Jollibee
Market Suitable to be used to Enough money for this -Low-medium risk so
development present products to both strategy they ensure to meet
existing and new market -The ability is very the objective of bank
in the North and South of good to deliver the that is to guarantee
Vietnam goods/services the finance of
specified in this Jollibee and
strategy shareholder which is
-Enough time to that keeping
implement this profitability at stable.
strategy

Market Suitable because of its Strong sales team with -Risk is lower
penetration efficiency in the business the ability to -Stakeholder can

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 environment nowadays successfully satisfy with this
communicate the strategy because it
perceived strengths of has lower risk
the product
Do-nothing There is no suitability in Hardly compete in the This strategy does
alternative this strategy because some market using new and not receive
reasons: no exploit the more powerful acceptability to
company strengths and competitor on the stakeholders because:
distinctive competences, Vietnam market. It can Customers: there is
nothing in help the firm to bring risks of falling no changes in
seize opportunities, no are absolutely products and
generate/maintain happened. strategies which
competitive advantage causes the customers
do not accept

Financial
consideration:
customers are one of
main stakeholders
however, in this
strategy, customers
do not support. This
leads profits of
Jollibee decrease.
Innovation Satisfy the goals of the Feasibility is able to Jolibee want to use
company achieve because this strategy, they
Jollibee is today the need major capital
Exploit the company
clear leader in three investment to expand
strengths and distinctive
Philippine fast food the market. The
competences.
market segments: capital problem is not
Help the firm to seize hamburger, pizza- investments
opportunities pasta, and Oriental
Food. It proves that
Jollibee’s capacities

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 are feasibility.

1. 3. Divestment strategy
Retrenchment Strategy Turnaround strategies

Suitability Jollibee has got capability in finance. -This strategy is also satisfy some
On the other hand, the global requirements: Satisfy the goals of
financial crisis was overIMF the company
forecast the Vietnam GDP Growth -Exploit the company strengths and
will increase to 6.2 percent by 2010. distinctive competences.
Then the Retrenchment strategies are -Help the firm to seize

not suitable for Jollibee to working opportunities

in Vietnam market at this time.

Feasibility The JFC companies direct Feasibility is able to achieve

investment into Vietnam will take because Jollibee is today the clear
time and expense to learn and build leader in three Philippine fast food
distribution systems. They face market segments: hamburger,
unexpected obstacles in the pizza-pasta, and Oriental Food. It
regulations of Vietnam for the retail proves that Jollibee’s capacities are
unit of 100% foreign capital. feasibility.
Therefore company will take many
advantages from franchising in
Vietnam

Acceptability it makes Jollibee becoming go down This strategy can receive the
to stakeholder below the standard, the finance will acceptability to shareholders:
be fall, then it is not ensure to meet -Financial considerations: It is easy
the objective of bank that is to to control cash flow of Jollibee in
guarantee the finance of Jollibee and this strategy.
shareholder. The public is also not
-Risk: There is less risk in this
satisfied when the unemployment
strategy
increase by lack of working in
company. It is not acceptable for
stakeholders

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 All 3 strategy substantive strategy, limited strategy and retrenchment strategy have
disadvantages and disadvantages. So, choose and apply strategy in organization is very
difficult for manager. So, when manager has plan to use one of 3 strategy, they must evaluate
and choose the best suitable for their organization. Based on 3 main criteria; suitability,
feasibility and acceptability, Jollibee company can evaluate these strategies and decide what
should be their most appropriate future strategy
Based on the above analysis, choose the three possible strategies that JFC can use
when participating in the Vietnam market are Vertical integration, market penetration,
Product development.
2. Possible strategies for Jollibee
Based on the analysis above, the strategies can be suitable for Jollibee are product
development, vertical diversification, Market penetration. The scoring strategy table as
following is to identify the right one
Strategy Suitability Feasibility Acceptability Application in Jollibee
Vertical integration Yes No No Should not choose
Market penetration Yes No Yes Should not choose
Product development Yes Yes Yes Should choose
In this Jollibee’s situation, the company wants to expand in Vietnam’s market. So,
use suitable strategy which will help Jollibee can achieve objectives fast. Base all information
in above, I suggest Jollibee can apply product development. The reason why I chose the
product development strategy is because the product development can make company
achieve the purpose to expand their market. With product development, company knows
what company has to develop, what company has to focus, about product or market. How
company can attract customer.

In product development, products and services of Jollibee are very rick. But
development products and services is always priority in strategy of Jollibee. With mission
“serve great tasting food, bringing the joy of eating to everyone” Jollibee will make more
products and services which suitable everyone in the world. Besides, Product, service quality
always is strength of Jollibee. Jollibee have many kind of fast food in Vietnam market:
chicken joy, chicken barbecue, jolly hotdog, burger, ice crazy, noodles… All product of
Jollibee meet each of customer require. Beside good product, Jollibee have special service:
kids’ party looking for the best way to make your child's birthday extra special. Through a
Jollibee party, it will fun, enjoyable. At the present, Jollibee successfully launched 17 new
products such as spaghetti, which is one of the best sellers, tastes sweeter than the pasta

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offered by its rival. And some of new products of Jollibee take in market. The company
expanded our chicken-rice off erring with the new Crispy Chicken Burger and Crispy
Chicken Steak and boosted our breakfast line with the unique hand-held Pancake Sandwich
that features a sausage patty held between pancakes. We launched Bangus Sisig for Lent,
welcomed the rainy season with Molo Meatball Soup, and perked up our summer-cooler line
with Crema Ice Craze, Saba con Hielo and Jolly Frosty Blends, products that double up as
refreshing meal-enders (Jollibee, accessed 2010).

Addition, Jollibee can use the franchise to invest in Vietnam market. Franchising is a
method of expanding the business on less capital than would otherwise be possible.
According to economic experts, the reason to choose this form of business enterprise is able
to expand market. Products without consuming too much cost, capital investment for research
and marketing for most of the support from the franchisor. For JFC, it is an alternative
business strategy to raising extra capital for growth.

For suitable to business, it is an alternative business strategy to raising extra capital for
growth’ (Gary W., accessed 2010). This method has some suitability, feasibility and
acceptability below:

The first is suitability. For the franchisor, the franchise is an alternative to 'chain
stores' to distribute goods and avoid liability. A well run franchise would offer a turnkey
business. Second, feasibility, if the JFC companies direct investment into Vietnam will take
time and expense to learn and build distribution systems. In addition, they face unexpected
obstacles in the regulations of Vietnam for the retail unit of 100% foreign capital. Therefore
company will take many advantages from franchising in Vietnam. Final, Acceptability to
stakeholder, the experience of JFC’s franchising in Vietnam and the experience of JFC with
franchising make company easy to continue use franchising to develop.

In Vietnam, franchise is not strange and quite achievement but the big brand such as
KFC, Starbuckit, etc is franchised for foreign business operate in Vietnam, individual
Lotteria (South Vietnam), because the parent company investment and is not domestic
enterprises. Besides, domestic enterprises seem to be limited capacity and financial
management experience in the franchise industry, therefore, in Vietnam, the number of
domestic enterprises operate in franchise is low and weak. To franchise, in addition to
owning a brand name strong enough, the most important factor is not sufficient management
capacity. But this is one of the main stage businesses in the country. Therefore, even though

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that franchise is the most effective way to keep market share, but many supermarkets,
restaurants have not dared to boldly apply.

Besides, to sell a franchise, the parent company to "standardize" all processes. For
example, JFC, all stages from raw materials, dosage, how to cook, etc concrete furniture,
lighting, light, etc, are standardized to specific franchisees how to apply. Many domestic
companies have not done so; this is also an obstacle to business direction for the franchise.

Particularly JFC is a business has franchised for two companies. Mr. Jojo Subido,
general manager of JFC Vietnam said that they are continuing find new business to franchise
(SGGP.org.vn, accessed 2009). It means franchise with JFC is a way to them expand market
and enhance brand. It has efficient therefore; JFC wants to continue follow this method.

3. Compare the roles and responsibilities for strategy implementation in two

different organizations.

The roles and responsible of two difference department in Jollibee was shown in the table
below:

Department Sales &Marketing Finance

Roles -Attract and retain customers. Comprises the documentation and the
Prospecting individual buyers or controlling of incoming and outgoing
logical customers by investigating cash flows as well as the actual
and classifying them according to handling of the cash flows.
needs, occupations, fitness, -These two parts played and still play
financial standing, purchasing a significant role inside the
power, buying habits and department, however, due to the
locations. computer revolution it is mostly dealt
-Prospecting territories by with on computerized systems
investigating and preparing -Budgeting and performance
reports upon selected cities, evaluation. It could be seen as
counties, states, or regions, giving planning/forecasting and
the physical layout, transportation controlling/evaluating. Though
facilities, financial resources, budgeting is a traditional role its
population and general market importance has risen rapidly
possibilities especially as the companies have

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-To increase the sales volume grown to huge conglomerates where
considering a particular period of control is very complex and difficult.
time. For example, they have The purpose has moved from pure
function prepare the sales volume control to a more analytical meaning
for the special occasion like in (Cost-Return).
Christmas, many people go out for -Focusing primarily on regulatory
entertainment and they have reporting to most effectively
demand in fast food. providing the information that
-To give motivation by internal management needs to more
appropriate means to the sales effectively "run" the business.
persons and to give appropriate -Calculate to achieve these
training to them in carrying out objectives, accounting, finance, tax
the sales activities successfully and other financial areas are
-Analyze the demands of markets, developing data warehouses
they study the consumer's combined with advanced analytics to
psychology, study market serve the needs of the entire
fluctuations, prepare sale budgets, enterprise. We refer to this advanced
explore new markets and the decision support capability for
process begins again - attract and finance as financial analytics.
retain customers, etc. -Driven by investments in enterprise
-Preparing and furnishing resource planning (ERP), shared
equipment for salesmen in the services and changes in its reporting
way of samples, sample cases, role, most finance functions are
price lists, kits, portfolios, or becoming more efficient – requiring
whatever else may be necessary, fewer resources to manage them and
depending on the nature of the closely aligning with the company's
business and the product or business structure. This is especially
service sold true in the area of transaction
-Recruitment and training processing where improved
-Cooperating with the production automation of financial transactions
department in the matter of has enabled finance staff to expand
qualities, quantities, containers, their role and spend more time
packages, sizes and seasonal supporting decision-making

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 goods, and reporting their reaction processes, rather than just processing
on dealers and consumers. and reconciling transactions.
-Making investigations of the
products or offering to discover
new uses and new appeals to
consumer.
-Conducting, or arranging for,
special market surveys and
analyses of territories with a view
to discovering new markets for the
goods or new methods of
developing old markets.
-Making specific market surveys
and analyses, securing detailed
and authoritative information
regarding the quantities of certain
classes of goods sold in given
localities,
Responsibilities -updating a regular maintenance -The payment of bills, wages and
schedule for all division facilities salaries. This as well has been
and equipment computerised. Wages and bills are
-Reviewing marketing activities paid through electronic systems. Both
with all applicable management. transactions are outgoing cash flows.
These activities can include: sales On the other hand, payments for
call recap, market share report, goods or services sold will be
sales analysis and strategy review accounted for in this department.
reports, sales promotional efforts -Preparation of budget, appropriation
and upcoming promotional plans. of accounts, re-appropriations,
-Coordinating and assisting the surrender and savings.
department managers in -Control of expenditure and ways &
developing annual marketing means position.
plans. He or she will also -Responsible for the collection,
coordinate all advertising for the processing, and dissemination of
company and negotiate with print operating and capital budgetary

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 and other media representatives to information.
ensure efficient purchasing of
advertising.
-Recruiting and employing
salesmen and fixing their
compensation and respective
territories.
-Training knowledge of the goods
and in methods of services for
customer

Sales &marketing department and finance department are all have important roles and
responsible in Jollibee. With the particular of the types of product and services as fast food
industry, their product is purchase daily. Sale &marketing need to consider to the sales rate
and from that they will be measure the input need. For example, Jollibee can sells 1000 meals
of chicken fried per day, therefore, base on there, company can measure the volume of raw
material they need purchase and forecast the volume of customer for next day base on the
Sales rate. Moreover, it relates to the finance department in prepare the finance to payable.

Sales forecasts will also be an important part of the budgets produced by the finance
department, as well as the deployment of labor for the human resources department. A
research and development department will need to work very closely with the marketing
department to understand the needs of the customers and to test outputs of the R&D section.

4. Identify and evaluate resource requirements to implement the new strategy

Resource allocation is used to assign the available resources in an economic way. It is

part of resource management. It is the process by which an organization distributes its
resources to effectively and efficiently accomplish its mission. The chart below show four
method of allocating resources as Bargaining between departments or SBUs, competition
between units, formula and planners impose priorities.

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 From the analysis above, Jollibee are developing their product develop strategy and
they use the methods of business growth in market entry strategy. They applied innovation
business, joint ventures, organic growth and franchise to competition between units. In here,
negotiates is high and central of direction is low; therefore it is competition between units.

Second, market entries strategy, Jollibee use franchising strategy, but franchising
strategy for develop is also base on JFC Philippine’s decision. Therefore the change is high.
About central direction, the decision of this strategy is from top down, so the central direction
is high. Therefore the method for allocating of market entry strategy in this case is planners
impose priorities.

Besides, the strategy implement of Jollibee for each strategy will be depending on the
financial strategy of company. Because the negotiate of this strategy is high and the central
direction also high, too therefore it is imposing plan.

With all the resources which Jollibee has got, it is enough condition to Jollibee continues
implement their strategies. Besides, they need new more resource. With some new resource,
Jollibee needs to adjustment to it can be properly integrate with current resources. For
example, Jollibee focus on develop new product or expand market (develop market). It
requires more people and more machines, and extra resource might be need for training.
Component of resource plan

The resources plan might use the following tools:

Budgets are one of tools in component of resource plan. To successful, Jollibee need to
control the budgets and have right strategic management. In budgets, finance resource is a
part of it. The resources should be allocated according to the required outputs. Budgets
should be directed towards achieving CSFs. Within budget include capital budgets, working
capital, department budgets and consolidated budgets. Capital budgets reflect cash flows for

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different projects; capital rationing decisions, funding methods, and working capital include
stock, debtor and creditor levels. Departmental budgets will clearly implement the allocation
of financial resource between departments. Consolidate budgets enable planning of resource
use as a whole across the company.

In present, franchise is the way which Jollibee are using and they aim to continuing
franchise for two more company ( following the information has research in the assignment
1, Chau Hung, accessed 2010). In the initial step, Jollibee will be still following the franchise
to join in new market (new market target in Hanoi and Haiphong).

Human Resource: such as recruitment and selection and training. Employees are one
of the important in very strategy of Jollibee. In strategy which will open about 20 restaurants
in North of Vietnam, this is big restaurant so; Jollibee must recruitment about 500 employees.
The company should recruit people who have high responsibility, understand Vietnam
culture, and fastfood industry. Besides, training people is one of the most necessary of
Jollibee. It will make employees who effective in job and loyalty with Jollibee

Material Resource: This is important in expand market strategy of Jollibee. Find

supply who achieve all requirement of Jollibee are difficult. So, Jollibee should contract with
some suppliers and make them follow all quality about material of Jollibee. And Jollibee
should build a factory in Vietnam, the structure the same with factory in Philippine. Because
with this factory, company can take many advantages, reduce cost and price, make more
benefit and spend money to invest and expand market share

Financial Resource: Finance resource is also important element that decides the
expanding capacity of the company. Although Jollibee is the leader fast food in Philippine, it
also need more financial resource if it wants to apply market development strategy. The
investors (such as banks) will base on Jollibee’s performance well or not to justify if they
should borrow or not. Besides, JFC must find out the way to save production and service
costs to raise profit. The costs depend on inflation, financial crisis, and the power of
bargaining of suppliers, and so on.

In summary, Jollibee is able to control its financial resources therefore market

development has more opportunities to finish.

Technology: Technology is also one of resources which is important in market

development strategy for Jollibee. Aided by custom-made mechanized equipment, the

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 production lines are for the marinated Chicken Joy, frozen patties and pies, breads, sauces,
hotdogs and other meat products, and dry blended goods. ZFC can service over 800 Jollibee
and Greenwich store. The chicken marinating line can produce as many as 150,000 pieces a
day while about 480,000 hamburger patties a day is turned out by the frozen patty line. The
breadline is designed to match the volume output of patties, i.e. also about 480,000pieces a
day. The pie line can produce as much as 157,000 pocket pies in a 20-hour operating day.
Currently, pies are exported to Jollibee stores in Hong Kong, Guam, Saipan, and the USA.
Various sauce products are processed in the ZFC sauce line including those for the Jollibee
bestsellers, spaghetti and palabok. JFC uses IT in order to manage the information from
each store. For its growing chain, which now includes Jollibee, Greenwich, Chowking,
Delifrance and Yonghe (in China), the company has engaged XMG, one of the leading
vendor-neutral Information and Communication Technology research and advisory
companies, to conduct an IT value benchmarking project. Jollibee is taking pride that this
endeavor makes the first wholly-owned Filipino enterprise to do an IT benchmarking project
of this scale ever. The XMG report will determine the efficiency and effectiveness of the food
chain’s IT service (Jollibee.com.ph, accessed 2010). In conclusion, if Jollibee applies its
current technology for market development in Vietnam, it is surely the quality of Jollibee’s
product is very good.

The propose and time scale with each targets of Jollibee

The table bellow will show the details of JFC’s target with Proposal, time scale, KPI,
method of controlling performance and the method of monitoring performance.

Target Proposal Time KPI Method of Method of

scale controlling monitoring
performance performance
nd
Corporate Obtaining the 2 During Jollibee’s image Use the Use
>5 year position in fast 2015 (a bee) is controlling observation to
food industry in friendly system to check and
Vietnam (after everywhere and evaluate the evaluate
KFC) is adored by target.
almost of
Vietnamese

21
 children.
Open 20 stores During 20 stores are Use the Use
in HaNoi city 2015 opened and the controlling observation to
menu is covered system to check and
by all kinds of evaluate the evaluate
Jollibee’s target.
products from
Philippines.

Function Obtain 10% During Total sale of Use the Use

3-5 year market shares of 2014 JFC in all controlling observation to
fast food Vietnam about system to check and
industry in 75 billion VND evaluate the evaluate
Vietnamese target.
market

Increasing 3-5% During Total net Use the Use report

profit each year 2014 revenue is 3-5 controlling from staff to
times than last system to check and
year (each year) evaluate the evaluate
target.
Personal Have 5% market During Total sales of Use the Use
<3 year shares fast food 2012 JFC in all controlling operational
(2010 to in Vietnam. Vietnam is system to have produced
2012) about 30 billion evaluate the a number of
VND target. records and
documents,
such as
production
and sales
Open 4 new During All of 4 stores Use the charts,
stores in HaNoi 2010 are opened in controlling accounts,
2010. system to customer
evaluate the complain

22
 target.

Table 1: Setting target and its timescale of Jollibee

5.1 Year 2010
JFC's objectives this year is to expand markets, develop the distribution
network of their products. This means that Jollibee will open more stores in markets in Hanoi
and some small cities in the south of Vietnam. After the financial crisis, Jollibee will put two
teams to survey the market in Hanoi, if they give good results, the company will decide to
build two shops in Hanoi.
First, Jollibee should take the time to find a suitable location. Jollibee should choose
the location to meet three factors:
• Store in centre of market or shopping centre because it’s attract the family
when they shopping. In other hands, store may be near school because the taste meals of
Jollibee are sweet; this sweeter taste is especially formulated for the little kids who make up
the bulk of Jollibee customers.
• The new location have a convenient parking place because in Ha Noi always
have a traffic jam
• The new location can repair.
Secondly, recruiting and providing training for new employees. Jollibee should focus
on the application of eight steps as detailed planning of human resources identified,
forecasting labor sources, analysis of work (job description, person specification), identifying
open positions, the standard with the information and publish your ad, select applications for
interviews, interview and select the best person for the job and notify the applicant of the
results of the selection process.
Jollibee should ask two kinds of people in full time and part-time. The company
prepares job descriptions, specifications and advertising for the position requirements,
ensuring all information in the job description, the specification, and advertising is full and
clear. Candidates must be good because they are looking for as well as photos of Jollibee as
customers, talk often, mindful of the work, because they speak to customers what customers
want. Jollibee website should labor requirements such as vietnamworks.com,
thogtintuyendung.com. And media requirements such as Avatar, laodong
The selection process details: from advertising jobs, the best choice CV suitable
location, inviting candidates to interview and eventually signed a contract with the selected
candidate last.

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 With this request, Jollibee should use surveys to track this goal. Managers can
monitor performance by reviewing the work they perform, or fiduciary to oversee a trained
observer. Duties test - time specific tasks, signed when the work is given and when it is
repaid, record levels of the final result of the labor skills required of staff and training.
5.2 Year 2011
Setting advertising is targeted in 2011.
First, open two new stores in Hai Phong in April and June All requirements of the
new standard places in Hai Phong is similar in Hanoi.
Secondly, recruiting and providing training for employees. Collect surveys for quality
products and services in all Jollibee stores in Hai Phong and Hanoi. Jollibe should prepare
questions about product quality in the survey are very clear and there is a choice for our
customers to focus on points (0-2, 2-4, 4-6, 6-8, 8 -- 10). With this action, Jollibee should use
the report (survey) to monitor performance.
Thirdly, Jollibee should advertise on newspapers, magazines (especially the type of
family), facebook (young), radio and television. With this action, Jollibee also use the
observer (inspection).
5.3 Year 2012
In year 2012, Jollibee should create good relationship and image with Vietnamese
customers. Open 3 stores in Hanoi, and 2 stores in Hai Phong and recruit and provide training
courses for employees. Jollibee will need a large budget to do this action in the future. So,
Jollibee should prepare a strong financial.
On the other hands, Jollibee should issue membership cards for loyal customers or
volume point card. It help Jollibee can attract more customers and keep loyal customers.
Jollibe should discount on holiday like valentine days, Tet, Independent day… It helps to
attract and satisfy customers.
Further more, Jollibe should do charity for poor children and homeless. It helps
company built the image in Vietnamese. Jollibee should continue advertise on electronic
newspapers such as Vietnamnet, Dantri online, Vnexpress…on radio and television. With this
target, Jollibee also should use observer (Task inspection).
5.4 Year 2014
In 2014, Jollibee set two goals. Firstly, the new Jollibee store should open in Hue
City, this is a big market. Jolibee also need to recruit and provide training for employees. In
addition, they should prepare promotional plans, such as discounts on every Monday for
some meals, discounts for students on Thursday as well.

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 On the other hand, Jollibee continue to promote newspaper advertising, e-newspapers,
radio and television. In other words, Jollibee should finance the program for the children's
target market of Jollibee toward the customer group (family). Therefore, it will help
companies not only attract children and children also attract many parents' to Jollibee outlets.
Secondly is increased by more than 5% of profits. To achieve that, Jollibee should buy more
new machinery to improve the quality and quantity of the product. It can reduce turnover, and
some errors in the production process. Management should choose the new technology
research and information advantages of the new machine. Jollibee should also create a
number of events in the holidays like Valentine, New Year, 30 / 4, 2 / 9 (on independence),
etc.
5.5 Year 2015
Jollibee should regularly use surveys to collect the results and have a suitable solution
to increase the rate of satisfaction. Addition, Jollibee should development new products to
serve different tastes of customers. This helps the company can compete with new or existing
area competitors.
Goal is to become one of the doors leading famous brand in Vietnam in general and
Hanoi in particular food and fast food. Jollibee should open new stores in Hanoi and Ho Chi
Minh with the strict requirements of the selection process and the investment carefully. There
are off on Monday, discounts for students on Friday as well. Jollibee should do charity for the
poor and homeless, it is very important when Jollibee to build the image and make the
customer see Jollibee branch strength in Vietnam.
More, Jolibee should launch new products and typically collect comments and rate of
customer satisfaction. Addition, Jollibee should create new events: the reward for the lucky
first customer. With this action, Jollibee use surveys to track performance.

Conclusion
With so many large and small shops in Hanoi, Hai Phong and Hue market opened,
JFC should prepare new plans, new strategies to expand further. Between many of the
strategic review, JFC may choose to diversify in related priority for expansion plans. To use
diversification in the most effective possible, JFC also can use the franchise method to graph
Hanoi market, but they will be stuck in some trouble because of the threat them from
competitors such as KFC and Lotteria is very good. So make clear responsibility for each
section and using resources already as good as they could be their duty at this time.
However, information is a major contribution to the success; information system is the

25
foundation for conducting business today. In many industries, survival and even existence
without widespread use of IT is extraordinary, and IT plays an important role in increasing
productivity. Although information technology has become more than a commodity, in
combination with additional changes in the organization and management, it can provide the
foundation for new products, services, and how conduct business to provide companies with
a strategic advantage. In Vietnam, the JFC should participate XMG, one of the leading
vendors-neutral Information and Communication Technology research and consulting firm,
to conduct an IT project worth benchmarking. XMG of benchmarking performance and
evaluating the cost effectiveness of service delivery and quality of IT services respectively.
This Jollibee is why the need to update technology at high level as soon as possible because
overall technology in Vietnam is not too good when compared with the change of the trend of
IT in the world.

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