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But things shifted slowly out of Jollibee’s control and competition became tougher and people preferred to dine at other fast food restaurants like McDonalds and KFC. Jollibee started to focus on increasing their profits by merging and purchasing other food companies to widen their market. Merging and acquisition have been an effective strategy for Jollibee because it increases revenue through decreased manufacturing and human labour costs.
QSR in the Philippines can be levelled close to a perfect competition especially between Jollibee, McDonald’s and KFC since they offered the same products and services to the same market. Whenever one qsr introduce new product in the market, it is also expected that others will follow and that is always the trend which making competition tougher. However, Jollibee is not also far from monopoly by acquiring and merging with other companies. Competition in the market is declining because of this strategy and this might drives up …show more content…
It generates billions of revenues. In gaining such revenues, the company’s cost of production and management is relatively high tantamount to its size. Jollibee significantly implements strategy of costs production regulating and monitoring fixed cost in relation to variable costs incurred during production and within the management as well ensuring that the company is optimizing and maximising these cost to generate revenue. The company as well minimize operating cost by creating an efficient production to increase its profitability. They adopt new technologies that can speed up the company's operation. Jollibee also patronises local suppliers which affect costs positively. Since fixed cost do not vary much to production and volume sales, the company’s variable costs change in an incline manner due to expansion, acquisition of common trade and increase of production to meet demands in the market.
III THE MACROECONOMIC ENVIRONMENT
Business is affected by the external environment as it is by the competitors. It is important that firms are aware of the changes in the external environment to be successful. Understanding the influence of Macroeconomic factors helps the firms to determine the current market conditions and how beneficial will they be for decision making for the success of their business. Various macroeconomic factors that influence business are political factors, economic factors, sociocultural factors, technological factors, environmental factors, and legal factors.
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QSR in the Philippines can be levelled close to a perfect competition especially between Jollibee, McDonald’s and KFC since they offered the same products and services to the same market. Whenever one qsr introduce new product in the market, it is also expected that others will follow and that is always the trend which making competition tougher. However, Jollibee is not also far from monopoly by acquiring and merging with other companies. Competition in the market is declining because of this strategy and this might drives up …show more content…
It generates billions of revenues. In gaining such revenues, the company’s cost of production and management is relatively high tantamount to its size. Jollibee significantly implements strategy of costs production regulating and monitoring fixed cost in relation to variable costs incurred during production and within the management as well ensuring that the company is optimizing and maximising these cost to generate revenue. The company as well minimize operating cost by creating an efficient production to increase its profitability. They adopt new technologies that can speed up the company's operation. Jollibee also patronises local suppliers which affect costs positively. Since fixed cost do not vary much to production and volume sales, the company’s variable costs change in an incline manner due to expansion, acquisition of common trade and increase of production to meet demands in the market.
III THE MACROECONOMIC ENVIRONMENT
Business is affected by the external environment as it is by the competitors. It is important that firms are aware of the changes in the external environment to be successful. Understanding the influence of Macroeconomic factors helps the firms to determine the current market conditions and how beneficial will they be for decision making for the success of their business. Various macroeconomic factors that influence business are political factors, economic factors, sociocultural factors, technological factors, environmental factors, and legal factors.
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