Jollibee foods corp. inrenational expansion

1. Phippine Christian University
1648 Taft Ave, Malate, Manila, 1000 Metro Manila
(02) 526 2261
Global Business Environment
Case Study
Jollibee Foods Corporation: International Expansion
Submitted by:
Baby Fayrudz N. Maing
Levi L. Eugenio
Submitted to:
Prof. Arthur C. Tria
August 20, 2015

2. 2
Contents
Executive Summary………………………………………………………………………………3
Company History…………………………………………………………………………………3
Problem Statement………………………………………………………………………………..5
Human Resources Issues……………………………………………………………………...5
Operating Management Issues………………………………………………………………...5
Financial Issues…………………………………………………………………………..........6
Marketing Issues………………………………………………………………………............6
Supporting Arguments……………………………………………………………………………7
Industries Analysis…………………………………………………………………………….7
Fast Food Industry…………………………………………………………………………7
Porter’s 5 forces model for JFC…………………………………………………………….....8
Firm Analysis………………………………………………………………………………….8
Alternatives Strategies…………………………………………………………………………...10
Choosing the Right Strategy…………………………………………………………….........10
Existing Strategy for Jollibee……………………………………………………………...….11
Recommendation for Decision making………………………………………………………… .11
Papua New Guinea………………………………………………………………………...…11
Hong Kong…………………………………………………………………………..……….11
California……………………………………………………………………………………. .11
Implementation Plan……………………………………………………………………………. 11
Human Resources Revamp plan………………………………………………………………12
Operations Revamp plan……………………………………………………………………....12
Financial Revamp Plan………………………………………………………………………..13
Marketing Revamp Plan………………………………………………………………………13
Appendix…………………………………………………………………………………………14
References………………………………………………………………………………………..15

3. 3
Executive Summary
Jollibee Food Corporation is a Filipino fast food retail chain that was started in 1975 and from then on
the company was on an expansion trend. It capitalised the changes in the political scenario in the
country and thrived the competition from global players like McDonalds. It went public in 1993 and
has been pursuing an aggressive global expansion strategy most of which backfired due to the
problems in strategies followed by the company.
The newly appointed International wing chief of the firm is facing the challenge of making a prudent
decision regarding three new opportunities that the firm has in the offing, namely expansion to Papua
New Guinea, Hong-Kong and California. But before making a move in this direction, the company
has to address all the issues that have been prevalent in the organization for a long time owing to lack
of long term vision and overall integration of the organization strategies. The firm has been
functioning like two parallel organizations with no co-operation and coordination between the
international wing and the domestic wing which has proved detrimental in various issues that the firm
has been facing.
The organization is operating in a highly competitive industry and has to develop an overall firm
strategy to attain sustainable competitive advantage. It is mainly thriving on Franchising and JVs and
needs to define the operating relationships with the global associates effectively in order to prevent
the disputes that have cramped the firm’s operations many a times.
For crafting out an efficient direction for the firm, the four strategy model for international expansion
was analysed and the firm was plugged in to the model and it turned out that the present strategy of
the firm is falling in a grey area between the international strategy and localization strategy. Our
suggestion is that the firm should adopt a fully fledged transnational strategy so that it can effectively
reap the benefits of cost saving as well as local adaptation and there by carving a global image for the
firm that has impeccable operations, financial and marketing strategy.
Also, we recommend the firm to go ahead and capture the opportunities in Papua New Guinea as well
as California and hold the fire for some time when it comes to the expansion plans for Hong-Kong
and look for expansion options in Hongkong only when the prevailing management issues in
Hongkong are sorted out. Also, the implementation plan for revamping the operations of various
functions have been suggested in the main body of report.
Business Landscape:
Company History;
1975 Jollibee started as an ice cream parlor owned and run by the Chinese-Filipino Tan Family.
1977 Jollibee had diversified into sandwiches after company President Tony Tan Caktiong realized
that events triggered by the oil crisis during this year, that would double the price of the ice cream.
August 1977 all of the Chinese managers had resigned leaving Jollibee with only Filipinos in Store-
level management positions. Shih was afraid this would further undermine Jollibee's ability to hire
crews, as Chinese preferred to work for Chinese.
1978 with five stores in Metropolitan Manila, the family incorporated as Jollibee Foods Corporation.

4. 4
1981 the company's first serious challenge arose, when McDonald's entered the Philippines.
Manolo P. "(NOLI)" Tingzon joined McDonald's as a management trainee and spent the next 10 years
in frustrating combat with Jollibee.
1983 McDonald's surpassed the per-store sales of Jollibee because of impressive performance of the
Big Mac, that led Jollibee to respond with a large hamburger of its own, called the CHAMP.
Political opposition leader Benigno Aquino returned from exile and was assassinated as he stepped off
his plane in Manila. The economic and political crisis that followed that led most foreign investors,
including McDonalds to slow their investment in the Philippines. But Jollibee pressed ahead,
employing nationalistic advertising to capitalize.
1984 the appeal of McDonald's foreign brand and its advantage in per-store sales were fading.
1985 Jollibee first venture abroad, when a friend of a Philippine Franchisee persuaded TTC to let him
open and manage Jollibee stores in Singapore.
1986 Corazon Aquino, took office as President, optimism returned to the country, encouraging
foreign companies to reinvest.
Jollibee revoked the franchise agreement and shut down the Singapore store. They lost each other's
trust.
1988 Jollibee decided to dissolve the partnership and pulled out of Taiwan, when the property market
in Taiwan took off and store rent increased dramatically.
1989 Jollibee opened its first store in Jakarta.
1992 Customizing for local taste- the flexibility aspect of Jollibee's Five F's corporate creed stood for
a willingness to accommodate differences in customers taste, managers in the International Division
believed that menus should be adjusted to local preferences.
When a manager was dispatched from Philippines to respond to Indonesia franchisee’s request to
create a fast food version of the local favorite nasi lemak 3 mixture of rice and coconut milk.
Kitchner's team created an international menu item called the Jollimeal. Although it accounted for
only 5% of international sales Kitchner saw Jollimeal as an important way to localize the Jollibee
image.
1993 Jollibee went public in an initial, public offering raised 216 million pesos (approximately U.S. 8
million.
with four successful stores in Brunei TTC identified a key difference in the Brunei entry strategy.
TTC decided that Jollibee's international operations required greater structure and more resources.
Because most of his management team was more interested in the fast growing domestic side of the
business.
1994 the conflict between the local partners and the managers they had hired paralyzed the operation
to a new franchisee.

5. 5
TTC decided to hire an experienced outsider as Vice President for international operations Tony
Kitchner, a native of Australia, who spent 14 years in Pizza Hut's Asia Pacific regional office in Hong
Kong.
Kitchner's choice of market rested on two main themes that he had formulated during planning
session in the fall 1994 targeting expats and planting the flag.
Manolo P. Tingzon took on the challenge to launch Texas Chicken another U.S. fast food chain, in its
Philippine entry.
The acquisition of Greenwich Pizza Corporation.
1995 formation of joint venture with Deli France.
1996 diversified the company's fast food offerings.
TTC realized that he could no longer support Kitchner as the expansion strategy was costing heavily
and they were losing a lot of money. In February 1997, Kitchner left Jollibee. After Kitchner, Manolo
P (Noli) Tingzon took over.
1997 Shih's Chinese managers had suggested serving tea the Hong Kong way -using tea dust rather
than tea bags and adding evaporated milk.
July 1997 Manolo P. Tingzon was intrigued by the opportunity offered by his old nemesis and joined
the company as General Manager International Division.
Problem Statement
The newly appointed head of International division Mr Manolo .P. Tingzon is pondering into three
key opportunities that the firm Jollibee Food Corporation is having for further global expansion
namely Papua New Guinea, Hong Kong and California. For taking the above decisions the
organisation has to address various issues mentioned below under the various functional heads:
Human Resource Issues
1. Strained International – Domestic Relationship: The international and domestic operations
of Jollibee Food corporation lacked cooperation and coordination among them. They had
several issues between them like recruitment, pay structure and issues of menu adaptation.
2. The organisational structure of Jollibee was not supporting it in the international business.
3. Cultural Differences:There were Cultural differences among teams working at domestic end
and at international end which led to disagreement on various opinions. For example the
suggestions from Chinese managers were not considered by management.
4. Management issues at Hongkong: There were many management issues at Hongkong
branches of Jollibee which were affecting its operations, quality and revenue collection. Some
of them are enlisted below:
a. Staffing Issues: Less Chinese staff members leading to reduction in Chinese customers
as Chinese customers were not very comfortable with Philippine and Nepalese staff.
b. Cultural incompatibility among staff i.e. between Chinese staff and Philippine staff
working at Hongkong stores.

6. 6
Operational management issues
In Jollibee Inc, several disputes where rising in operational management due to the following reasons,
Improper co ordination between the parent company and the international operations lead several
disputes in franchising, menu card (standardization) and absence of research and development centre
as such to scan the taste buds of localities of individual regions.
1. When Mr. Kitchner was as a change driver for international operations, he gave responsibility
of running day today activity of the store to an individual person for every store called FSM.
This lead to an incongruent strategy alignment between the parent company and franchises.
2. Menu card standardization was absent which essential in a global food chain to give customer
the same level of satisfaction no matter whichever store he steps in.
3. Research and development privilege was wholly vested with the parent company.
Financial issues
For the long term success of any firm, it is highly imperative to have a stable and prudent financial
management system. The focus should be on a strategy that takes the long term as well as shorter
objectives of the firm in tandem. As identified from the case, the following are the noteworthy
financial aspects of the firm:
1. Company’ revenues, net income, operating income, and royalties and franchise fees have
been increasing rapidly for the period under consideration.
2. Inventory turnover has improved showing an improvement in working capital management
over the years.
3. Based on the financials, Jollibee has a good cash position so it should use the cash to pay its
suppliers regularly which will build a long term relationship with the suppliers.
4. Cash on hand is continuously increasing which is very positive sign however EPS has
decreased 19% from 1994-96 largely on account of a bank loan. Therefore the cash at hand
should be put to better use and help ensure early repayment of loan.
The aforementioned aspects have put the company in a better stead. But, there are a few other facets
that create concerns:
1. Accounts receivable as a proportion of Sales has increased over the years.
2. Long term debt outstanding has increased dramatically and the servicing of the same has
put a pressure on the solvency position of the company.
3. Cost of sales has increased over the years. This is a natural fact, but the alarming part is
that the growth in cost of sales has been much higher than the sales itself, putting a
pressure on the margins of the company.
4. The global expansion of the company has been extra-rapid and made in haste to capture
the market as a part of the “plant the flag” strategy. As evinced by the statement made by
TTC in late 1996, this has put a serious pressure on the financials of the firm and the firm
did not have the financial muscle like global giants to go for the loss-leadership strategy.
Thus the budget allocation and management was in a grey area.
Marketing Issues
1. Choosing which international markets to target first and decide on an optimal strategy to enter
these markets.

7. 7
2. Identifying target segment in each country.
3. Choosing a core competency.
4. Deciding to what extent the standard menu can be modified to suit taste of local consumers.
Supporting Arguments
Industry Analysis
Fast food Industry
The fast food industry has a lot of unique characteristics:
1. Quality of food and time of service is of utmost importance
2. Each firm in the industry has a standard set of cuisine. The menu is limited and items are
cooked in bulk in advance,kept hot, finished, packaged to order, and available to take-out,
drive-thru, and dine-in.
3. Profitability is dependent on high consumer traffic, location of stores and tight operation
management.
4. Firms mostly operate through franchisees and expansions of critical mass is required to
achieve economies of scale
5. Highly capital intensive.
6. Chain wide consistency and reliability are major factors of success
7. Number of competitors is very high.
McDonald's is one of the most famous fast food joint in the world. McDonald's became No.1 in
every country of more than 100 countries in the world except Philippines where JFC has been
overwhelming strength against McDonald's. In 1981, JFC faced serious challenges from
McDonald’s when they entered Philippines which forced JFC to change their existing strategy of
targeting only the domestic market with a standard local fare.

8. 8
Porter’s 5 forces model for JFC
Firm Analysis
Strengths:
 Leadership in local Philippine market.
 Strong financial resources.
 Expertise in doing business in international markets.
 Well developed operations management capability (ability to provide quality products at
affordable prices).
 Diversity in product offering after the acquisition of Greenwich Pizza and joint venture with
Deli France.
 Speed and timeliness of deliveries because of the locations of the commissaries.
 Portfolio can serve various segments of the market and pass the winning culture of Jollibee on
the other business units.
 Highly motivated and well-trained personnel
 Good operations management
 High domestic market share
 Quality consistence in terms of taste and availability
 Responsiveness to competition
Rivalry among Competitors:
HIGH
Rivalry stems from Price
wars, marketing innovations,
good food, good service. Most
rivals are equal in capabilities
and opportunities which make
competition stiffer
Threat of Substitute
PRODUCTS-LOW TO
MODERATE. Products from
local street food is a threat but
Jollibee has advantages in
terms of brand name, superior
service and reasonable price
Threat of new entrants to
Industry- LOW
High entry barriers in the
form of brand preference of
consumers, technological
know how, access to strategic
locations and distribution
channels, capital, economies
of scale etc.
Bargaining powerof
suppliers: LOW
Strong relations with existing
suppliers, trade restrictions
for imported raw materials,
food standards etc. limit
power of suppliers
Bargaining Power of
Consumers: VERY HIGH
Consumer traffic and loyalty
determines profitability of
firm

9. 9
 Innovative receipies e.g. rice based meal
Weaknesses:
 The expansion of business in international markets based on the flawed strategy of ‘Planting
the Jollibee flag’.
 Absence of proper methods to select franchisees.
 Too much dependence on Filipino expatriates and inability to cater to the needs of the local
residents of other countries.
 Weak promotional campaigns in international markets to promote Jollibee as a global brand.
 Based on the graph: 1(Refer Appendix), it can be seen that the operating profit margin is very
low over the period from 1992 to 1996. Operating margin is around 11% to 13% over the
years which mean Jollibee could not improve its operational efficiency.
 Based on the graph: 3 (Refer Appendix) it can be seen that the inventory cycle of Jollibee is
around 25 to 30 days from 1992 to 1996 which is very high for a fast food business. It means
that company is taking longer time to sell its products.
 Based on the graph: 2 (Refer Appendix) it can been seen that Jollibee could not utilise its
assets productively as Return on assets had decreased from 28% in 1992 to 17% in 1996. It
means that the new stores abroad did not give the desirable results.
 As per the Graph: 4 (Refer Appendix) it can be seen that the average payable period had been
increased from 74 days in 1992 to 111 days in 1996 which means that they are delaying the
payment of suppliers. This can damage the long term relationship with the suppliers.
 Lack of communication within the organization during the formation of International Division
which led to infighting amongst the two divisions.
 Bias towards friends and relatives while selecting local franchisee partners.
• Lack on in-depth planning and research in the expansion to foreign markets.
• Rift between international division and Home division - no consensus could be reached
• Lack of global brand recognition
• Beuracratic structure.lengthy process for approvals to be sanctioned
• Over reliance on the Filipino market ( targeting the expat strategy)
External Analysis:
Opportunities:
 Untapped locations with fewer or negligible competition from fast food chains.
 Widen product range to include more local food items.
 Make new acquisitions of profitable food chains in other countries.
 Create differentiation by cost advantage, customer experience etc.
 Impart global culture by hiring non-phillipine managers
 Locating commissaries in the same country through joint ventures could be a potential source
of success for the company
Threats:
 Political Instability.
 Competition from local well established food chains.
 Dining habits of local people eg. More preference to dining than fast food.
 Shift of preferences of people to more health conscious items.
 Epidemics like Bird flu, Mad cow diseases that make procuring of raw material difficult.
 High set up cost due to high standard of living.
 Reduction in entry barriers like favourable policies, tax incentives etc lead to increase in
foreign competition.
 Downturn in economy.

10. 10
 Rise in operational cost like cost of power, labour etc.
 Tough competition from from both international companies and local small-hold SMEs in the
food industry.
 Rapid expansion plan may backfire
 Philippines division might slow their implementation
 Increase in transportation costs and the prices of transported materials and products.
Alternative Strategies
Choosing the right strategy
When analysing the case study it is clear that Jollibee Inc. has higher pressure to respond to local
wishes in Philippines due to the entry of global giants like McDonalds. This is due to the fact that
Jollibee had a strong presence in Philippines but at the same it should tackle the adaptation pressure
from McDonalds. This is also supported by the fact that Jollibee was franchising their brand to foreign
countries on very strict terms which do not allow any changes to the menu.
According to the grid below this would mean eliminating the international strategy and the global
strategy. Now analysing the strategies which require standardization (provides cost benefits) and
differentiation, the transnational strategy is applied by large firms such as car manufacturers, they
have to adopt the cars to local wishes or they will not sell. The Multidomestic strategy often involves
having very different lines of products, yet there is no real cost pressure. Both strategies perfectly
align to Jollibee’s business model, so the four grid model is used for evaluation in the sense that
Jollibee is correctly placed in the vertical axis of the model.
On the horizontal axis Jollibee has two distinctly different moments. During the expansion plans to
become a multi domestic the company enjoys low responsiveness pressure because the target
segments are expats and Hispanic population. Once it is established the company is in need to adopt
the local taste buds so there is an increase in the responsiveness consideration. Since Jollibee needs to
maximize return on investment after establishment, it has to follow a transnational strategy to keep the
competition at the bay and tackle the competitive pressure.

11. 11
The above diagram describes the four strategies which a firm needs to follow for international
expansion depending upon the market requirements, pressure from competitors, firm specific
motivation driven by firm’s core competencies. The proponents of the model have suggested that the
strategy of a firm should evolve over time among these four strategies to be in better stead in facing
global competition.
Existing strategy of Jollibee
Jollibee entering the markets without any clear cut idea, since Mr. Kitchner strongly believe in
gaining the first mover advantage, Jollibee is expanding into the markets where the competitors little
are no presence, to “plant the flag” without any long term perspectives. The company’s strategy can
be more identified with the international strategy where the locus of power lies with the parent
company in the Philippines. With much of happening in the international arena too. After Kitchners
got hired, he encouraged localization by separating international business completely from the
domestic ones.
Recommendations for Decisionmaking
Papua New Guinea
As evident from the data given in the case, it is quite evident that the company is having
immense opportunities in Papua New Guinea. As the market there is untapped and the only
competitor there is an unorganized and unprofessional local company, Jollibee can literally
get a first mover advantage. So the company should go for Papua New Guinea, but proper
background research about the prospective partner as well as assessment of the credibility of
the fundraising proposed needs to be carried out.
Hong Kong
Currently all the three stores established in Hongkong are facing lot of management issues as
mentioned in the problem statement hence it is required that first this management issues
must be sorted out rather than putting additional resources in expansion plans.
California
California expansion seems to be the good option for several reasons. United States is the
largest fast food market in the world. They discovered from their outlets in Guam that there
were many elements of their restaurants that appealed to Americans. They have a large and
diverse population who like experimenting food of different culture. They also had great
support from Filipino-Americans. So, the company has to start with focusing on both the
Filipinos as well as local people and design the menu that would help maintaining the brand
identity along with catering to the local interests. To put it simple and straight, Company
needs to adapt a trans-national strategy.
Implementation Plan
It is the very evident that transnationational is the only way forward for jollibee, When going for
multidomestic as a strategy only a certain amount of flexibility and autonomy be provided to partners.
This becomes more of an arms length dealing, trust was lacking in the relationships. A holistic co
ordination is required to transfer core competencies or to pursue experience curves and location

12. 12
economies. Which is possible only in a transnationational entity. This smooth transition can be
enabled by inter unit co operation, decentralizing the organizational structure and following a
geocentric approach. Also to implement this strategy and carry out expansions following schemes of
actions must be taken in various functional departments.
Human Resource revamp plan
 Balance between centralization and decentralization of power: Jollibee should allow
certain level of decentralization of power for its franchises in other countries for operating
decisions related to product, marketing and human resource management. Also certain
number of R&D centres could be opened in other countries to facilitate localization of
some products. At the same time decisions regarding overall firm strategy, financial
decisions and quality control must be taken care by headquarters in Philippines.
 Reforming Organisation Structure: Jollibee should adopt an organisation structure
which enables it to transfer its core competencies and global learning across the stores.
Also it should support value creation activities in the value chain for more efficient
operations. One of such kind of structure is flexible matrix structure which provides a
common vision and culture. This structure will enable the cooperation and coordination
among domestic and international operation units.
 Training: In order to facilitate cooperation among units the staff members who are
required to coordinate with other units must be given training on cultural differences and
adaptability in workshops. By adopting this practice Jollibee would support its staff to
understand the cultural diversity among nations and different market needs.
 Hongkong Management issues: Hongkong management issues can be sorted by
adopting above mentioned strategies. Certain level of decentralization of power will
enable the managers at Hongkong stores to take decisions on various aspects of product,
operations and marketing as per the local requirement. The staff members who are trained
in culture diversity workshops must only be sent from Philippines to Hongkong for
supporting the operations and training of locals. Also there must be recruitment drive to
hire local Chinese managers with attractive compensation. This will enable hiring of
Chinese crew members and hence increase in customer traffic. Also initiatives like team
work and cultural diversity workshops must be conducted to increase compatibility
among Philippine and Chinese workers. This plan would enable Jollibee to implement
operation, marketing and quality control mechanism effectively and enhance the market
share.
Operations revamp plan
 Polycentric establishment of research and development centre. The flag can be planted in
regions where people have similar taste buds as strategic business units (SBU). So that the
menu can be varied according to regional taste.
 Once the company starts to follow transnational strategy, location economies and operational
efficiency should be taken into consideration so as to reap the benefits of both cost structure
and differentiation.
 Lessons learned should be internalized, so that lack of operational efficiency problems as in
Singapore, transparency issues as in Taiwan can be avoided in the future international
expansion.

13. 13
Financial Revamp Plan
 Slow down the global expansion to sustainable levels. This means that the international wing
should slow down a bit and the domestic wing should buck up a bit so that the entire
organization can move ahead together. The financial management should be done effectively
so as to provide enough budgets for the R&D and associated activities that are needed for the
global expansion.
 Also sufficient funds should be made available for the marketing and positioning activities for
these are highly imperative in creating an identity for the firm and thereby helping in capture
the market.
 Opening multiple stores at the same time will hurt the bottom line and will increase debt.
Even for a global giant like McDonald’s, it took 20 years for their international operations to
account for 50% of total sales. Also, they must reduce cost of sales. This can be done by
devising a proper strategy of global expansion that can reduce cost and bring in economies of
scale.
 Also the relations with franchisees and other associates should be clearly defined and the
degree of control of the financials should be clearly defined to avoid future confusions. The
ramifications of poor relations are clear in the closing down of many franchisees abroad.
 There has been a year on year increase in cost of sales from 13% in 1992/93 to 46% in
1995/96, however sales during 1995/96 has only increased by 24%. Suitable ways must be
found in order to decrease cost of sales.
Year on Year Sales Cost Increase.
Year
Percentage Increase
1992/93 1993/94 1994/95 1995/96
46% 34% 28% 13%
 Jollibee has been expanding rapidly in the international market which is a good sign but the
company’s operations are not well managed as the inventory period is very high which means
inventory is kept idle so as to avoid it, company should improve its operating efficiency.
Marketing Revamp plan
 Jollibee had been following the first mover strategy under Mr. Kitchner and had concentrated
on “Planting the Flag” i.e. opening a lot stores in countries in a short span of time irrespective
of financial constraints. Jollibee should instead follow a differentiated strategy wherein it
should target those markets with high potential with an economy similar to that of Philippines
like Papua New Guinea and observe the first mover strategy to capture these markets first.
For established market with high potential such as USA, Europe, it should go for joint
ventures and acquisitions with established firms in these nations.
 The focus target segment in every country has been expats from Philippines which has been
largely successful. But it should not exclude the local populace of the host nation. Its
marketing initiatives should target the local populace and it should position itself as a global
fast food brand which offers “exotic Filipino cuisine” for everyone.
 Its core competency should be “authentic Filipino fast food with good service and quality”

14. 14
 The menu of Jollibee should have a mix of standard food items as well as items specific to a
host nation. To achieve this, they should set up R&D divisions in each country and come up
with new dishes to cater to local consumers like McDonald’s which came up with Mc Aloo
Tikki Burgers for India and which was a big hit.
Appendix
1992 1993 1994 1995 1996
Profit Margin
Operating profit 280 364 458 590 780
Net profit 201 292 403 538 602
Revenue 2296 2702 3606 4851 6904
Profit Margin 8.75% 10.81% 11.18% 11.09% 8.72%
Operating profit margin 12% 13% 13% 12% 11%
AssetUtilization
Operating profit 280 364 458 590 780
Total Assets 1013 1375 1926 2645 4537
Asset Utilization 28% 26% 24% 22% 17%
Inventory Turnover
Cost of sales 1469 1663 2133 2858 4180
Inventory 116 135 183 201 323
Inventory Turnover 12.66379 12.31852 11.65574 14.21891 12.94118
Days in Inventory 28.4275 29.22429 30.88608 25.3184 27.81818
Account payable Period
Cost of Sales 1469 1663 2133 2858 4180
Accounts payable 297 323 497 715 1274
Payable turnover 4.946128 5.148607 4.291751 3.997203 3.281005
Payment period 73.7951 70.89296 85.04688 91.31386 111.2464
Table: 1
0%
5%
10%
15%
1992 1993 1994 1995 1996
Operating profit
margin
Profit Margin

15. 15
Graph: 1
Graph: 2
Graph: 3
Graph: 4
References
 International Business, By Charles W L Hill and Arun K jain (McGraw Hill Companies), 6th
Edition
 Transnational Management, By C.A Bartlett and S Ghosal 3rd
edition
 Jollibee website
0%
10%
20%
30%
1992 1993 1994 1995 1996
Asset Utilisation
Asset Utilisation
0
10
20
30
40
1992 1993 1994 1995 1996
Days in Inventory
Days in Inventory
0
50
100
150
1992 1993 1994 1995 1996
Payment period
Payment period