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Chapter - 2 Literature Review

Literature review is the type of process which makes available theoretical contribution to deal with a specific topic of the research. It is generally done with, searching of the various secondary sources. This is not a class of any unique experimental work; however it is done with the assistance of previously obtainable sources. It is prepared in a well structured manner through the insertion of personal insights in the several literary sources. The subsequent review is primarily conducted on the subject of business and cultural issues, faced by McDonalds while entering into the Indian market. Globalization is tremendously important in todays competitive market. It is done by the company in order to explore its services. The organization has to enter into different geographical areas if it wants to become a market leader. With the help of globalization, the business earns growth or success, as well as it successfully earns large market shares. Such companies also accounts for over 33 per cent of world output, and 66 per cent of world trade (Gray, 2000). The literature review is focusing on the barriers which McDonalds faced at the time of launching its operations in India as well as it will reveal us how the company has successfully adopted the Indian culture. All the data and facts discovered in the literature review are with the acquaintance of articles, textbooks and scholarly journal. Various articles and journals are prepared by authors who provide guidance to overcome with the business issues. According to the Youngblood coaching, there are seven steps through which business issue can positively handle i.e. firstly decide what the major challenge for the business. . After this, select the hero and imagine stepping into his shoes. In the next step, study about the story of that hero. Fourth step is to analyze how he has outcome with the challenges. Then build ways to handle the challenges, this may include what type of measures can be adopted in order to overcome with the situation. Last step is for action, start working on the things that was decided and planned earlier (7 Steps to Overcome Obstacle and Turn Them into Opportunities, n.d). Julie King has also suggested some problems which usually come in the way of business growth. These problems can be lack of capital, less management skills, lack of information, poor planning, poor actions, ignorance of risk and low focus (King, 2007). McDonalds is the world largest chain of quick service and fast food restaurants. The company has its branches in almost 119 countries, which serve around 68 million customers all over the world. In 1940, McDonalds started its operations and has it is headquartered in United

States. The company mainly operates its activities and functions by franchisee, associate or by the corporation itself. They earn revenue mostly from the royalties, rent, franchisee fees and sales. At present, there are 1200 restaurants of McDonalds in U.K and it employing 67000 people in this country (McDonalds Restaurants Limited UK - Total Talent Commitment, n.d). Currently it is one of the most successful consumer product companies around the globe with annual profits of more than $23 million. The firm always focuses on quality services and their ultimate mission is to become the worlds best quick service restaurants with the utmost quality, cleanliness and value to customers. This has also helped them to achieve competitive advantage and edge over the other firms in the market. McDonalds is the leader in both the domestic, local and international markets. For the company, product life cycle also plays a very important role. Since the needs and taste of the consumer changes with the change in time, the product also needs to be altered in order to cater to the requirement of the users. So there is a great significance of product Life Cycle in McDonalds. The company also adopts the strategies of innovation and delivering optimal excellence, to all its potential customers in each and every restaurant. MCD also faced many challenges while entering in the Indian market (Tariq, 2010). The above articles are showing several issues of business. In addition to this, one more challenge which creates great hurdle in the way of business expansion into diverse nation is cultural issues. It is the issue in which company little except the host countrys culture while following the original one also. This becomes very essential for the firm to adopt necessary changes in its existing culture. Every market likes and dislikes are totally base on its typical culture. Thus, if a company enters into the other country, it has to study values or customs pursued by the particular society. In the case of McDonalds, the organization faced many problems at its beginning period. At that time, community of India was rejected to accept the food offered by the firm, and because of this, organization was stop running its restaurants. After this it again came with new taste as well as a little bit of changes in its menu. So, acceptance of the culture and modifications accordingly is an important step, which must be taken by the firm in the business development process (Brown, 2011). There are three major ways through which the organization can make more markets i.e.: Mergers: It happens when one company combined with the other productive firm and together runs business (Cox, 2007).

Acquisition: It occurs at the time when the dominant firm of developed country purchases the business of a developing nation. Franchise: Through this, some giant firms explores their business by opening chains in several geographical areas (Franchise, n.d). In this project, the overall discussion is on about McDonalds growth in relation to Indian market. Further, this research is focusing on various business issues faced by the company, at the time it established over here. It was set up as a joint venture between McDonalds and Hardcastle Restaurants Private Limited for the Western India. Similarly, for the Northern India with Connaught Plaza Restaurants Private Limited. The first franchise was opened by the organization in Mumbai in the year 1996. Recently the company is having 160 restaurants in all over India. In all of these restaurants, it hires local employees. This is done for easy understanding the language of the people. It runs business majorly with the help of franchise. Only 15% of its restaurants are directly owned by the company. The remaining 85% is managed by franchise (McDonald's set the standard for Indian market entry, 2009). The fast food industry is growing rapidly in Indian markets. This is because most of the businessmen are likes to eat out for their leisure. Further, Indian population has huge adults; they are crazy for burgers and pizzas. Hence, they like to go McDonalds to have a party as well as outing at low prices. Thus, MCD is one of the several restaurants being operated in the nation, which is exploring its business successfully. The company is able to achieve success in this market as it contributes its growth portion to the community through reinvestment and municipal taxes (McDonalds Business Strategies in India, n.d).

McDonalds entering strategy


MCD is the western company where people like to eat beef, hamburgers as well as pork burgers. But it has re-engineered its menu when it came to the Indian market. It has continually adapted to the taste, preference, life styles, values, perception and language of its customers. Indians are mostly banned by their religions for not to consume pork as well as beef (McDonalds entering strategies, n.d). Thus, in order to survive here, it has to be more conscious about sensitivities of the Indians. So it came here with lamb, chicken along with fish burgers to suit this market locality. As the country is having huge vegetarian population, so to cater the demand of this customer segment, it came up with vegetarian items. The company has added

new vegetarian items with its standard menu i.e. McAlooTikki and McVeggie burger (McDonalds Business Strategies in India, n.d). In the earlier days, it has targeted to the Urban Upper class people and charged high prices. But, now days, it offers products at affordable rates as well as targeting in different ways.

Segmentation done by the company


If a customer goes to the fast food restaurant, it regularly visit there depends on the servicing, hygiene along with taste of the food. It is better for the company to bring loyalty in existing customers rather than searching new ones. Finding out new buyers is 17 times more expensive than keeping old clients. Youth MCD attracts adults of the country by charging low prices. This helps student to enjoy parties at affordable rates. It always provides several schemes, which pulls attraction of the youth generation. Children The Company is targeting its products through children also. It gives various smart gifts with happy meal menus. So the customers keep in touch with the restaurant. Young urban family MCD renders one most attractive facility to the urban families i.e. kids zone. This helps parents to enjoy their outing by leaving children in a kids zone safely.

Marketing mix used by McDonalds for entering in Indian market


After doing segmentation of the market, target customers and positioning itself, the company needs to take decisions regarding the marketing mix and how to come forward in a market place with an offer (Marketing mix and PESTEL analysis of McDonalds in India. n.d). The following 5 Ps adopted by McDonalds are as under: Product Product is the main offering of any company. It is the most significant thing which fulfills the needs and wants of the customers. If the product of any company fails then everything will fail. It is the features of the product that makes a distinction from the competitor. It is the physical product which involves packaging, guarantee, appearance etc. Both the tangibles and intangibles aspects are included in this. McDonalds has briefly studied the behavior and nature of the Indian customers and therefore, they have offered a different menu in comparison to that has been offered internationally. The product depth and width was very limited. Mutton, beef and ham burgers were not included in the menu (Vignali, 2011). The company has maintained the culture and

traditions of India and therefore, first time in their worldwide system developed an egg-less mayonnaise. Place The product should be available at a place which is convenient for the customers and easily accessible. It also includes the distribution channels. They are important so that the product can be made available to each and every consumer at a right place and right time. In U.S.A, around 50 % of the McDonalds outlet is within 3 minutes drive. The company offers a good and hygiene environment to its customers. Quality services are being provided and thus, happiness and fun is felt by everyone who dines at McDonalds. Many facilities are also given like internet, music by radio and play space for children. Price - The pricing of a product plays a very imperative role in shaping the growth and survival of the company (Oxenfeldt, 1982). Fixing a pricing for the product is not an easy job; many factors need to be considered while devising the best pricing strategies for the product. In todays scenario, each and every company is facing competitive and challenging conditions and the main purpose for the company is to continue to exist in the market and to have a competitive edge over other rivalry firms. McDonalds offer certain value pricing strategies like happy meal, family and combo meal etc. This strategy has helped the company to increase their volume of sales. As the firm enjoys the image of comfort and familiarity, it was often perceived as a costly brand. In order to expand and capture the market share in India they need to change this perception and provide affordable prices to the customers. So, keeping this in mind they introduced Happy price menu of Rs. 20. And this strategy bought many customers to them. Promotion Promotion is defined as the process which is used to advertise the product or services in the market (Promotion. n.d). In order to sustain in the market, the company need to spend more on the advertisement. There are several promotional tools available to the firm and by using them they can promote their product. Many promotional channels have been adopted by the McDonalds, so as to communicate the information of the product (Tools for promotion, n.d). These tools are personal selling, advertising, sales promotion, direct marketing and public relations.

McDonalds main purpose of advertisement is backed up with the three main objectives and these are to make the people aware about the product being offered, to have a positive response towards its offerings and reinforce in the minds of all the potential consumers. They started their promotion by television, bus shelters and hoardings. Some of the marketing campaigns of the company are you deserve a break today, so get up and get away- to McDonalds, Im loving it and many more. People The Company understands the value of its people and employees. If the employees are satisfied then they will better serve their customers, which in turn help the firm to retain its potential users of their product. McDonalds does internal marketing on a regular basis. Internal marketing may include training, hiring and motivating the potential employees.

Competitors of the company in Indian market


In India, the McDonalds are facing heavy competition from Nirulas, Pizza Hut and Dominos Pizza. Nirulas has a wide group of business hotels, family style restaurants, ice cream parlors, pastry shops, waiter service restaurants along with food processing plants in India. The group is having 60 outlets running in five states successfully (McDonalds business strategy in India. n.d). The company is offering its services to 50,000 customers on a daily basis. Pizza hut came to India in the year 1996. It offers special vegetarian pizzas, so able to attract local people. In addition to this, it also deals in garlic bread, salads, pastas and soups, which are the famous likings of Indians. Dominos established its business in India by opening its pizza store in New Delhi in the year 1996. The company has its chain in 30 cities. It has market leadership in terms of maintenance of service standards as well as continuous product innovation. With its unique service of home delivery in 30 minutes, the organization has achieved special identity within the market. In addition to this, MCD has strong competition from Papa Johns and KFC.

Challenges faced by the company


McDonalds entered in Indian market by joint ventures with the two Indian companies in 1996. These entities were the Hardcastle and Connaught plaza restaurants private limited. Joint venture is a type of business agreement or contract between two or more companies or parties to develop a new entity for a particular period of time (Murray, n.d). They share the profits, assets and expenses and have full control over the enterprise. The Company mainly operates its activities and functions by franchisee, associate or by the corporation itself (Franchising in India. 2010). They earn revenue mostly from the royalties, rent, franchisee fees and sales. The business structure of the McDonalds is based on the five geographic structures that is U.S.A, Europe, Asia pacific, Latin America and Canada (Organizational Structure of McDonald's. 2011). The company also adopts the same process for making food everywhere. Each and every location has same layout of kitchen but the firm need to change their menu and food preparation technique according to the local culture. While entering in the Indian market, McDonalds has faced many challenges and problems (Angelova and Zekiri, 2011). They have also suffered many business issues and some of them are as follows: 1. Political issues At its early stage, government posed many regulations on the company. MCD has paid various taxes, in order to enter as well as established into the Indian market. It is very difficult for an international company to operate its functions in any other country because the local and regional policies, rules and regulations pose a great influence on its working. McDonalds was being monitored by the authority of Hospitality industry in India (Political factors. n.d). These authorities ensure that the company can not deviate from any of the rules prescribed in the policies, such as no utilization of the harmful chemicals, proper processing of the raw-materials, quality of the material and many more. 2. The vegetarian customers In India most of the population is vegetarian. So, to cater with this issue, McDonalds has completely changed its line of offering and started a new line of vegetarian items. They started offering McVeggie and McAlooTikki burger. The company has also separated the vegetarian and non-vegetarian sections. 3. Re-engineering the menu In order to capture the market share in different countries and region, each and every company need to adapt their working system and offerings according the culture, language, value system, lifestyle, perception and value system of

that particular country. McDonalds has also survived in the Indian market because it has changed its offerings. The company was known for its ham burgers, beef and pork burgers, but in order to response to the sensitivity of the Indian customers they reengineered their menu. 4. Distribution McDonalds has faced many challenges while entering in the Indian market. They faced many distribution issues like social and geographical diversity, infrastructure is very poor, poor conditions of roads, power situations. The major among them is to maintain the standard of cold, clean and on-time delivery in India. 5. Cultural challenges The eating habits of Indian population has let the McDonald to make changes in its various policies. Majority of the population in India is vegetarian. Most of the Indians go for outing on special occasions and they prefer home cooked food. All these factors imposed a great challenge to the company in order to find a place in the Indian market. At the same time the Indian consumers are very price sensitive. 6. Legal issues All these issues is related with the legal environment of the company in which it is working. There are many laws and acts that have been passed by the various authorities and government which restrict the operation and working of McDonalds in India (Environmental factors affecting McDonalds management function. n.d). Act against the cruelty of animals, union and labor laws and promotion of corpulence by focusing on the kids. 7. Competition The major competition being faced by the company is from KFC. Although, McDonalds has a wide range of products starting from Rs.20, which is not matched by the offerings of the KFC. The other competitors are Nerulas, Pizza hut and Dominos pizza. But the company was able to achieve competitive edge by offering quality and innovation in their product and services.

Factors for success of McDonalds in India


McDonalds has faced many challenges and issues while entering in to the Indian market. They were successful in overcoming these problems by rendering and delivering quality of services and products. The company served their food in friendly environment and at reasonable prices. Many others factors were also responsible for the success of the McDonalds in India and some of them are as follows:

They have global support with local management In India, McDonalds is a joint venture company which is managed by the Indians. They run their business and activities with complete flexibility. It is the Indian team who bought the local knowledge to the firm. McDonalds Corporation has also helped the Indian management by providing them training sessions before initiating operation. They were given training related to cleanliness, quality and standardization of services. Investment in the development of food supply chain The Company has made huge investment on the development of infrastructure and supplier. In order to avoid wastage, the firm has established the cold chain. This has helped in maintaining the freshness and quality of food for a long period of time and operational wastage can also be minimized. It includes warehousing, transportation and transacting consumable food products. Customization of the product McDonalds has developed menu especially according to the needs of the Indian customers. They have included vegetarian selections which suits the taste and culture of the Indian customers. The company has re-engineered its menu and it does not contain beef and pork items. As Majority of the population in India is vegetarian, so the company has separated the vegetarian and non-vegetarian sections. Localization McDonalds has adopted localization of equipments and because of that they were able to reduce the fixed costs. They have also set their own manufacturing plant in India. The production was also being carried out according to the expectation and suitability of the Indian customers.

Cultural adaptation by the McDonald


Each and every aspect of life is affected by the Globalization in almost all the nations (McDonald's, globalization and culture. n.d). Because of the extensive exchange of goods and services from one country to another, various social, cultural and economic factors need to be considered. From all the factors discussed, cultural aspect is of great importance to those who formulate the policies for the company (Hofstede, n.d). Adapting according to the culture of different countries is not a difficult task for McDonalds, as they have opened branches in almost 120 countries with dissimilar and distinct cultural values. The company has entered in the Indian market by joint ventures with the two Indian companies, the Hardcastle and Connaught plaza restaurants private limited. These Indian based firms has guided and supported McDonalds to adapt easily with regards to the culture of India.

The companies local partner understand the customs, values, culture and norms of India as well as the taste and need of the Indian customers. This helped the company to serve better and to secure good brand image in the Indian market (McDonalds Ongoing Marketing Challenge: Social Perception in India. n.d). McDonalds uses the local architecture to construct its restaurant. It also analyzed the behavior of the customers and their offerings were based on the specification of the customers. The company has changed its various policies according to the eating habits of the Indian population. Majority of the population in India is vegetarian and Hindu. So, they also need to alter the menu. They started offering vegetarian line to the customers such as McVeggie, McAlooTikki and many more. Beef, pork and hamburgers were removed from the menu because it was considered sacred in Hindu religion. Vegetarian and non-vegetarian sections were separated so as to ensure purity and cleanliness. With respect to the Indian culture, they have also not included eggs in mayonnaise. So, in order to capture the Indian market, McDonalds has made many changes. All the aspects discussed above imposed a great challenge to the company in order to find a place in the Indian market. At the same time the Indian consumers are very price sensitive.

Summary of the Literature Review


This literature review was mainly performed in order to have familiarity with the Strategies and policies adopted by the McDonald to enter in to the Indian Market. The first part contains the background of the company and what strategies they have adopted in order to enter in to the Indian market. It also focused on the various issues and challenges and the cultural adaptation by the company to overcome the problems. In this research, the literature has also discussed about the entering strategies of the McDonalds. Since, it is the western company where people like to eat beef, hamburgers as well as pork burgers. The firm changed its menu according to the culture and values of the Indian customers. This literature has also explored the various challenges being faced by McDonalds while entering in the Indian market as well as the factors responsible for the growth and success of the company. Development of the food supply chain, customization of the product and support from the local management helped the firm to find a suitable place in the Indian Market. Some of the major challenges among them were the cultural differences and the vegetarian customers. This impelled the company to alter its whole menu. They started offering vegetarian menu for the

Indian customers and excluded many items from the menu such as beef, pork, hamburger and mutton etc. During its early stages, McDonalds also faced severe competition from the Dominos, KFC, Pizza hut and Nirulas, but still it was able to achieve competitive edge by offering quality and innovation in their product and services (Schumpeter, 2011). The final part of this literature review analyzes the cultural adaptation by the McDonalds. How the firm has changed its various policies and strategies to satisfy the needs as well as how they matched according to the specifications of the Indian customers is also being included this analysis.

Chapter - 3 Research Methodology Problem Statement


To analyze, the business issues faced by the McDonalds while entering into the Indian market as well as culture adaptation by the firm, in order to establish here.

Research Methodology
The search for knowledge can be called as research. It can also be defined as a systematic and scientific search for collecting information on the specific topic. It is also an art of scientifically exploration. According to Advanced Learners Dictionary, research is a kind of careful inquiry or investigation by searching new facts in any type of knowledge. Redman and Mory classify it as a systematic effort to get fresh knowledge. Research in the words of Clifford Woody is the process of defining as well as redefining problems; assembling, arranging and evaluating data; originating hypothesis or suggested resolutions; making inferences along with realizing conclusions and finally proper testing of the conclusion to determine whether it is fit to the formulating hypothesis (Research Methodology: An Introduction, n.d). M. Stephenson and D. Slesinger has define research in Social Science Encyclopedia, that it is the treatment of things, symbols as well as concepts for the reason of simplifying to correct, except or verify the knowledge, whether that particular knowledge aids into the creation of theory or in the performing of an art (Seligson, 2002). This research is undertaken to get knowledge about problems faced by McDonalds. The researcher has conducted this study systematically by following the proper structure. Various types of appropriate methods have been applied by the researcher to gather the productive informations.

Research Philosophy
All types of research are based on several assumptions about how the humanity is professed as well as how we can better arrive to recognize it. No one exactly knows the best way of understanding the world and the philosophers have given their perceptions, which can be taken as base for the research (Trochim, 2008). Research philosophy is basically of two types: positivist and interpretivist. In this Positivist move towards the social sciences and believes that things can be considered as hard

facts, equally relationship among these facts can be recognized as scientific laws. For positivist, these laws have the position of social as well as truth objects, which can be studied as same, as natural things (Research philosophy: towards an understanding, n.d). Through positivist philosophy actual or real datas can be collected. It includes those method which gathers true as well as valid information. Quantitative method can be applied for this like surveys on appropriate population could provide the best insights. In this research, the survey has been conducted on the regular customers of the company through questionnaire, to get informations regarding their likes or dislikes for the firm along with the changes they had seen in the services. The other one is interpretivist, it assumes that only through social structure such as consciousness, language along with the shared meanings, reality can access. This research does not initially define the dependent or independent variables, but centers on the full complication of human sense making as the condition appears (Philosophical Assumptions, n.d). According to this philosophy, human perceptions changes over time to time. Due to this reason, interview of departmental heads has been conducted in this research to ascertain the consumer attitude or behavior towards the company. It has been observed by many researchers that, no single method is best for whole research. The best way to improve the quality of research is using combinations of methods. At the same time, some authors also argued that productivity in work can develop by using and focusing on single method. Hence, research methods should be chosen by the researcher as per the needs or requirements. In this research both positivist as well as interpritivist methods has been used to collect datas. Moreover, according to the researcher opinion both methods will definitely provide best qualitative informations. Informations from the previous literatures as well as managers will be gathering and used to fulfill the principle of study. Along with this, it will also describe the existing conditions and required changes within the company.

Type of Research
Methods of research are the several schemes, procedures, algorithms, etc., which are used in the process of research. All types of methods used by researcher while undertaking research is said to be research methods. These methods are scientific, essentially planned and value neutral. They could be experimental studies, numerical schemes, theoretical procedures as well as

statistical approaches. The methods help in collecting datas, samples together with finding solutions of a problem. There are three broad categories of research approaches i.e. descriptive, exploratory and casual. Investigation realm of the researcher includes business issues of McDonalds as well as cultural adaptation in the context of India. For this kind of research, the exploratory research would be the best category. An exploratory research is quite informal, relying on secondary sources such as reviewing presented literatures as well as it is qualitative also which includes informal discussion with the customers, management or employees and more formal approaches by way of case studies, in-depth interviews (Exploratory Research, n.d). This approach would help the researcher in analyzing to what extent MCD is able to adopt Indian culture and handling its business issues in best possible manner.

Data Collection Method


Both primary and secondary datas are used in this research paper. Primary datas are collected by the researcher itself through interviews and questionnaires. These data are crude and collected for the first time by the investigator (Anand, n.d). The key point of datas is that, these are unique and until it is being published by the researcher, no one can have access to it. The primary data are gathering according to the requirements of study or investigation. There are several ways to collect these data, such as interviews, questionnaires, case studies, observations etc. For this research, interview method has been conducted on departmental heads (Primary Data Collection Methods, n.d). In the interview method a well designed questionnaire are used to get informations from various respondents regarding something. It is a qualitative method, which provides insights of the person that what they think about the particular matter. It familiarize with the attitude of the respondents. The researcher has collected informations or data from the interview of 10 managers. In addition to this, questionnaire is designed to be filling by 30 customers. The questionnaire is a quantitative method. The secondary sources are readily available datas. The main thing in this is, researcher have to select the relevant source according to the requirements of study. Various secondary sources are annual reports, census reports, Reports of Government Departments etc (Methods of data collection, 2001). In this report journal, articles as well as blogs are used by the investigator.

This method is cost or time effective; also it can provide both qualitative and quantitative informations (Secondary Data Collection, n.d).

Data Analysis
Data analysis is the process of cleaning, transforming, inspecting as well as modeling data with the aim of highlighting the most important information, suggesting finale results together with helping in decision making. Analysis of data has various approaches or facets, encircling diverse techniques within varied names, in dissimilar science, business and social science areas (Niles, 1995). In this particular research thematic data analysis is used for informations, which is being collected by interview method and questionnaire as, qualitative research generally uses themes for analysis rather than in physical linguistic components, such as sentences, paragraphs or words. Further, coding scheme has been developed to giving code to the text, for the reason to simplify specific outcomes. In order to establish high accuracy, rather than using this scheme on the complete text, it initially utilizes on sample of the text. After this coding, the conclusion from data is drawn.

Sampling
Sampling is the procedure of selecting people or organization from interested population. After studying the sample one can reasonably generalize the results of the population, which they have chosen (Sampling, 2008). Generally, the population is very huge for the researcher, so it is not possible to make survey of all its members. A small sample chosen with best care can represent the whole population in an appropriate manner. The sample reproduces the characteristics of the unit or population within which it is selected. There are two types of sampling such as, probability or nonprobability. Every member has a recognized non-zero possibility of being selected form the population, in the probability sampling. It includes systematic sampling, random sampling along with stratified sampling. In case of nonprobability sampling, constituents are being selected from unit on the basis of nonrandom manner. Several methods of this sampling are judgment sampling, quota sampling, convenience sampling together with snowball sampling (Survey Sampling Methods, n.d). In this dissertation, simple random sampling is used by the researcher. For this, investigator selects a group of sample from huge population. Each entity got equal chance of being integrated in the sample. On the basis of random sampling, first 10 customers for three

days will be selected for filling the questionnaire. By using this process, participants can be assured that research is conducted in an ethical manner. Further, there is no possibility of biasness to be presented in this method, as the researcher only select those who will come first in the restaurant. For gathering informations, the well set questionnaire will be simply given to fill up by the respondents (Sampling, n.d).

Validity and Reliability


All phase of the research paper is done with reliability as well as validity. The word validity could be defined as an essential key for effective research. If a single part of research is invalid, then it would be worthless (Cohen and et. al., 2007). The term validity can also be characterizes as how appropriately the study as well as its outcomes reflects the purpose under the investigation. When anyone does research, they want to be ensured about the validity and reliability of chosen measures. In this research, sample has been selected on random basis, so it can be said that this study could provide proper valid research (Shuttleworth, 2008). Reliability means repeatability or consistency of measurement. Consistency in relation to questionnaire can be possible, when it is clearly designed to be properly understood by the respondents. At the same time repeatability refers that, if the survey repeats than it should provide the same outcomes (Nkunda, 2010). An effective research should comprise valid criteria as well as content, which can increase reliability and validity of report results. One more way to create validity of study is minimization of biasness. Similarly, reliability can develop by considering accurate data or facts.

Research Limitations
o Although in research, the researcher uses techniques of sciences, but it is not an exact science. Thus, results or findings are not accurate. o Survey is done on human beings such as consumers, employees, etc. and humans have propensity to act unnaturally when they know that they are observing by someone. o Some amount of biasness may be presented in the research. Many times it happens that same class of respondents provide dissimilar results. o An untrained researcher can make wrong questions for data collection. o Time constraint is also faces by the researcher. Pre defined time line reduces the quality of research.

o Data collection as well as its processing is very costlier, this creates limitations in the effective research. o Research is carrying out in open market where several variables act on its settings (Limitations of Marketing Research, 2008). o Datas are also collected from different secondary sources, in which biasness of authors may present. o Small size sample. o In research various thoughts or views of different authors are present which might be clashing at times. o Methods used to collect data may not be proper in relation to particular research report. o Lack of availability of reliable as well as accurate data (Limitations of the Study, 2012). o Findings of the research are confined to specific territory.

Ethical considerations and issues


1. Seeking permission Prior to undertaking research, it is very necessary to obtain the approval from respondents for concerning them in the study. Permission has to be acquired by the investigator for utilizing any personal information. Many times respondents demands monetary benefits for giving response, in this case they have to be compensated accordingly. 2. Debriefing It refers to provide full information to the people about necessity as well as purpose of particular research. Respondents should be very much informing about the cause of reach as well as reason for their selection in providing response. Exception is possible in some cases, for example, at the time of focus group discussion participants may not aware about the topic of research, for the reason to get their spontaneous reactions. For eliminating this issue briefing session could be organize to provide whole knowledge regarding each elements of the investigation or survey. 3. Right to withdraw Researcher should inform to each respondent, that they can withdraw from the research at any time or any stage. This is because, they have right to quit form the research phase as well as can raise question related to utilization of his/her responses. 4. Confidentiality and anonymity It is related to guarantying the confidentiality of informations provided by various respondents. This is due to the reason that respondents

trust or believes on the investigator while giving them datas or facts. In the case of misuse or mistreatment of any information provided by individual as well as the organization, legal actions can be taken against the researcher.

Chapter 4 Findings and Analysis


Introduction Data collection provides support in measuring process health. By analyzing datas, the researcher can able to find out main characteristics which have to be measure as well as how will they measure. In addition to this, it also provides guidance related to the utilization of these collected datas or informations (Data Collection, n.d). Data collection is the procedure of measuring or gathering informations and facts on variables of concentration, in an well established proper fashion, which makes possible for one to answer stated test hypotheses, research questions as well as evaluate outcomes. The method of data collection is common for all fields including social and physical sciences, business, humanities etc. Although, methods fluctuate by discipline, the stress on ensuring honest or accurate collections always remains the same (Responsible Conduct in Data Management, n.d). In this research paper, datas has been collected through two techniques i.e. Primary and Secondary. For primary data gathering, the researcher has conducted survey on customers. This survey is undertaken by random sampling of first 10 customers of the restaurant for three days. Their responses from survey are collected in detailed data format. Further, thematic analysis of this informations is done by following these steps 1. Data preparation for analysis Record the overall responses of survey into transcript and format such document, so the margins can be utilized for analyzing individual bits of data. 2. Reading of text and noting significant items An inductive move toward thematic data analysis permits appearance of themes form the informations, more willingly than penetrating pre-defined themes. 3. Sorting of interested item into proto-themes At this point themes start on materializing into categories by arranging related items of similar topics. This is done by the researcher to make information simpler. 4. Examination of proto-themes and endeavor initial definition In this phase data examines that how informations was consigned to each proto-theme, for evaluation of its meaning. Further, flexible definition and provisional name should be formed for each rising theme.

5. Re-examination of text This involves taking all themes separately for re-examining of their original data. 6. Construction of final form The definition, name as well as supporting data are reexamined at this stage for final production of each theme. 7. Reporting of each theme This relates to finalizing name of all themes, writing its whole description and illustrates it through some quotations, which help in communicating its meaning to the reader (The process of thematic analysis, 2010). Theme 1

Chapter 5 Conclusion and Recommendation


McDonalds is an organization who is very much concerned about their customers needs. This enables management of the firm to look upon desires as well as wants of the local people of the country in which it operates. For the reason to make possible buyers fulfillment activities, the company maintains effective relationship with its stakeholders. These stakeholders include suppliers, employees, customers, franchisees along with the local communities surrounding it. There are strategies applied by McDonalds, which shows that it cares for its customers in all the ways. It has added more healthy foods to its menu as well as changed the process of food preparation and packaging. In addition to this, for achieving support of countrys political or economical institutions, McDonalds gives productive contribution in several charities and provides sponsorship in varied programs. Further, there is a tendency to adopt local culture together with its tastes or preferences and due to this it has achieved successful business growth in Indian market. Here, if we talk about local adaptation, than the researcher can take an example of McDonalds in Britain. Britain is the most challenging market in the world, but the fast food chain of McDonalds had reached to this market segment also. This has possible with the quality services as well as customer satisfaction provided by the company. The main reason behind this success is again the adaptation of British preference and taste. Thus, modifications in standard products or offerings are the base of success or growth of the business in international market (Mcdonalds Restaurants Fast Foods Management Essay, 2003). McDonalds has attained positive growth in global market due to the implementation of following strategies i.e. Local product expansion along with Local adaptation strategy. Through development of local products process in its business activities, the firm cerates several products to satisfy demands of local markets consumers. The same method has been adopted by the company for Indian markets, as in this particular nation, it offers vegetable burgers, salads, Aaloo Ticki burgers etc. This exactly matches with the desires of Indian people. By applying adaptation strategy, McDonalds modifies its products to fit local area tastes and to meet their needs. For example, in India it has been modified Big Mac into the Maharaja Mac. This also does not contain beef in it, caring local people diets (Clark, n.d).

The restaurant has developed competitiveadvantages in the industry of serving quality fast food at a low cost. In addition to thesedecisions, the development of the Golden Arches or Ronald McDonald has providedconsumers with memorable icons that are associated with quality, service, and value, just likethe McDonald brothers and Ray Kroc intended

McDonalds has been successful in operating within the food service industry through efficient strategies and quality standards which enables them to gain competitive advantage.

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Appendix Questionnaire for survey


Dear Participants This research paper is a part of academic course work. The particular research has been undertaken by the researcher to analyze business and cultural issues occurred while doing business globally. McDonalds is selected here for research setting. The researcher is also ensuring that informations provided by the respondents will be kept confidential and will be used in this study only. Name: ____________________

Location: ____________________ Date: ____________________

1. How many times you like to visit at McDonalds? o 0 o 15 o 5 10 o More than 10 2. From where did you come to know about the McDonalds? o By someones suggestions o Online o Through advertisement o Others 3. How did you like the food of McDonalds? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 4. How did you like the menu provided by the McDonalds in India?

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 5. Are you satisfied by the Quality of Services being provided at McDonalds? Support reasons to your answer. ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 6. How would you rate the services at McDonalds? o Bad o Average o Good o Excellent 7. Why do you like to visit this place again? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 8. Which is the least liked Menu at McDonalds? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 9. McDonalds has adopted the Culture and Taste of the Indian customers, so whats your opinion on that? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 10. Hows the management of McDonalds in handling the challenges while offering the services? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

11. Did you find value for money? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________ 12. According to your opinion, which areas need to be improved at McDonalds? ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

Thanks for your co-operation