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Globalization and Localization Strategies in McDonald's

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Added on  2020/11/23

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Thesis and Dissertation
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This assignment examines McDonald's implementation of globalization and localization strategies. It requires you to analyze the benefits and drawbacks of these approaches from both a business perspective (using questionnaires for managers) and a social impact viewpoint (questionnaires for social workers). The analysis should cover economic development, cultural influences, consumer behavior, societal effects, and the relationship between businesses and consumers.

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DISSERTATION
(Globalization and Localization)

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ABSTRACT
The paper deals with concept of globalisation and localisation. It describes both these
terms as well as their merits and demerits. Present study takes support of inductive approach and
qualitative strategy. This helps in conducting entire dissertation in a systematic manner. It
discusses the importance of globalisation and localisation strategies for business and for societies
as well. Furthermore, factors that influence the adoption of globalisation and localisation are
involved in research paper. Thesis highlights impact of these strategies on operations and success
of other small enterprise. It is found that globalisation is a great strategy that can support in the
development of business and it is beneficial for improving social condition as well.
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ACKNOWLEDGEMENT
I would like to thank my family members for their full support. This study would never
be completed without guidance of my professor so special thanks to Dr. S. John. I also want to
thank to my friends who were always with me and have developed my confidence.
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TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
Background of the study..............................................................................................................1
Aim and Objectives.....................................................................................................................2
Rationale......................................................................................................................................2
Significance.................................................................................................................................3
Research specification.................................................................................................................3
Dissertation structure...................................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................5
Importance of globalization and localization strategies..............................................................5
Factors that influence the adoption of globalisation and localisation..........................................6
Real examples of companies that operates globally....................................................................8
Impact of globalization and localization strategies on operations and success of other small
enterprises....................................................................................................................................9
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................11
Introduction................................................................................................................................11
Research Philosophy..................................................................................................................11
Research Design........................................................................................................................12
Research Approach....................................................................................................................12
Research Strategy......................................................................................................................13
Data collection...........................................................................................................................13
Sampling....................................................................................................................................14
Data analysis..............................................................................................................................15
Ethical consideration.................................................................................................................16
Research Limitations.................................................................................................................16
CHAPTER 4: DATA ANALYSIS................................................................................................18
Introduction................................................................................................................................18
Data Analysis.............................................................................................................................18
Conclusion.................................................................................................................................33
CHAPTER 5: DISCUSSION........................................................................................................34
CHAPTER 6: CONCLUSION AND RECOMMENDATIONS...................................................36
Conclusion.................................................................................................................................36
Recommendations......................................................................................................................37
Areas for future research...........................................................................................................37
REFERENCES..............................................................................................................................38
APPENDIX....................................................................................................................................41

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CHAPTER 1: INTRODUCTION
Background of the study
Globalisation can be defined as interaction between different economies around the world.
Development of technologies has connected people globally. This is considered as an effective
way to resolve deep-seated problems such as unemployment, poverty, etc. But it is also a fact
that social injustice is the result of globalisation. There are many companies which are
concentrating of making localisation strategies. This helps these firms in minimizing cultural
issues and boosting brand value in the same location. Localisation supports entities in order to
communicate effectively in local markets and eliminating sensitivities (Lasserre, 2017).
Globalisation is the strategy that supports many poor countries and aids in improving
their per capita income. Though it is unable to reduce national sovereignty, it helps in creating
benefits for government so that authorities can prepare effective economic policies for the
development of regions. Localisation strategies are unable to provide better educational
opportunities to the population but increase in globalisation has helped local people to move
across the border in order to acquire better education (Crane and Matten, 2016). This has helped
in the integration of cultures and now, it has become easy for people to understand culture of one
country and get adjusted into it.
There are many companies which are spending such a high amount in order to localise
their marketing activities. Many people feel comfortable to buy products from such website
which is in their local language. These localisation strategies are helpful in understanding the
needs of consumers and providing them satisfactory goods to them. This enhances their loyalty
and satisfaction towards the brand (Tarofder, Azam and Jalal, 2017). Increasing free trade
opportunities, advanced technologies, better education and improved health facilities are the
advantages of globalisation. Though to some extent, it increases wealth inequalities but it is the
key element for reducing poverty.
Present study is based on the globalisation and localisation. It will discuss the importance
of these strategies for business and for societies as well. Furthermore, it will analyse factors that
influence the adoption of globalisation and localisation (Hirst, Thompson and Bromley, 2015).
Research paper will highlight the impact of these strategies on operations and success of other
small enterprise.
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Aim and Objectives
Aim
To understand the concepts of Globalization and Localization of companies and analyse
benefits and disadvantages that come with adopting these strategies”
Objectives
To outline the importance of these strategies and role plays by globalisation and
localisation for companies operating in different sectors or fields
To analyse factors that influence the adoption of globalisation and localisation
To discuss the real examples of companies that are already globalized and made use of
localization strategies
To examine the impact of these strategies on operations and success of other small
enterprises To suggest the ways to improve productivity and profitability of business by
implementing Globalization and Localization strategies
Research Questions
Why Globalization and Localization strategies are important and what role it plays for
companies operating in different sectors or fields?
What are the main factors that influence adoption of globalisation and localisation?
What are the real examples of companies that are already globalized and made use of
localization strategies?
How has these strategies influenced operations and success of other small enterprises?
What are the ways to improve productivity and profitability of business by implementing
globalization and localization strategies?
Rationale
One of the main reasons of conducting this research is that this researcher has a huge
interest in such type of topic. Globalization and Localization strategies are the unique concepts
that have increased interest of scholar to work on it (Jenson and de Sousa Santos, 2018).
Furthermore, this topic has been provided by university and thus, scholar has to carry out entire
investigation on this topic. It is a semi structured topic and thus, this would be easy to conduct
research on subject. There are many researchers who have prepared their studies on globalisation
and many companies are working across the world. Thus, there is huge secondary data available
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on this topic that can support the investigator in developing their understanding and identifying
impact of these strategies on business units and other sectors as well (Yen and Abosag, 2016).
Significance
Globalization and Localization strategies are most commonly used by many companies.
There are many big organizations which are operating their business across the world. This study
will help these firms in identifying advantages and disadvantages of these strategies for their
business. Furthermore, it will be beneficial for small enterprises in order to find out ways
through which they can apply these tactics effectively at the workplace. This will help these
small scale entities in entering into global market and gaining competitive advantages
(Williamson, 2015). Furthermore, research will help many other scholars in getting brief idea
about importance of globalization and localization for different sectors and thus, they will be
able to conduct their study on the same topic for different sectors in the near future. This will be
beneficial for start-up firms which are planning to enter in a market. This will help in finding
ways through which they can get established in the market.
Research specification
Research methodology is the systematic plan of conducting an investigation on particular
topic and finding results. In the present study, scholar will apply interpretivism philosophy.
Individuals will involve theories and models in order to identify the facts about Globalization
and Localization strategies. Furthermore, inductive approach will be used that will help in
involving the most relevant theories and finding real examples of companies that have
implemented these strategies (Venkataraman and Pinto, 2017). Researcher will use primary and
secondary; both data collection sources. In addition to this, random sampling process will be
applied for selecting right respondents for the research who can give accurate answers of
research questions. In addition, study will use thematic analysis method that will help in
presenting the themes in effective manner and finding accurate results. Investigator will take care
of ethical aspects and will follow ethical guidelines in order to avoid the consequences.
Individuals will start this research after getting ethical permission from concerned authorities
(Telò, 2016).
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Dissertation structure
Chapter 1 Introduction: This chapter will give brief overview of topic Globalization and
Localization. It will explain the rationale of selecting this subject and significance of this topic.
Furthermore, it will frame the aim and objectives of conducting this study. In addition, brief
description will be the structure of entire dissertation (Knoke, 2018).
Chapter 2 Literature review: This would be the next part of this research. In this, literature of
other authors will be included and these will be reviewed. This will help in developing the
understanding of researcher about Globalization and Localization strategies.
Chapter 3 Research methodology: In this section, tools and techniques of carrying out an
investigation will be explained. This part will give description of suitable research methods for
present study with justification in this chapter (Uluskan, Joines and Godfrey, 2016).
Chapter 4 Data Analysis: In this chapter, data will be evaluated and interpreted.
Chapter 5 Conclusion and recommendations: This would be the last section in which entire
study will be summarised and results will be concluded. Furthermore, necessary
recommendations will be given to improve the productivity and profitability of business by
implementing Globalization and Localization strategies.
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CHAPTER 2: LITERATURE REVIEW
Importance of globalization and localization strategies
As per the views of Westjohn and et.al, (2016) entering into international market is the
critical task for business. It is essential for companies to make right strategy for global
expansion. Establishing effective localisation and globalisation strategy is the key factor that can
support entities in gaining success and making impressive interaction with consumers. One of the
major important elements of globalisation is that it supports entities in generating high revenues.
Lasserre, (2017) argued that globalisation and localisation; both the strategies are helpful and
important for economic growth of nation. There are many companies which are concentrating
more on their local markets. They have built a strong connection with the local public. This has
supported these entities in making consumers loyal and retaining them in the firm for longer
duration. This tax amount is utilised by authorities for the development of country.
According to Hirst, Thompson and Bromley, (2015) whenever organization plans to enter
in the global market then these firms have to face huge challenges such as language, culture,
religion and environmental problems. Localisation creates a positive image in the minds of
customers and they feel valued because products and services that are offered by business units
are specially made for local people. For example: in the year 2015, McDonalds was facing issue
of falling profit. In order to deal with this issue, company has implemented strategy of adding
local taste in its food items. This has attracted many people towards the brand and has helped in
increasing profit of entity. This localisation strategy has created impression of the brand on local
people. Venkataraman and Pinto, (2017) stated that localisation helps in reducing risk and cost of
business unit. Business has to invest such a huge amount for penetrating into new market. If
entity is unable to communicate well with consumers in the local market then it can put negative
impact on brand image of the firm. By implementing efficient localisation strategies,
organization can minimize their expenses and can have control over the local market.
Uluskan, Joines and Godfrey, (2016) declared that globalisation is very important for
promoting culture of one country to other nations. Entering into global market helps in making
other people aware with the cultural aspect of one country and understanding their ethical values.
On the other hand, Westjohn and et.al, (2016) argued that globalisation is important for business
growth but it adversely affects local market. Due to globalisation, local people fails to get
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products on time. This increases inequality among people of different classes. This concept is not
worthwhile for society because sometimes, it negatively impacts on social welfare aspects.
As per the views of Lasserre, (2017) localisation has become the most essential strategic
plan for entities because this supports brand in surviving in aboard for longer duration. By
localising the firm, it can build a bridge in between target consumers and brand. Localisation
strategy concentrates on implementing such activities that suit with the local culture and supports
firm in attracting people towards the brand. According to Tarofder, Azam and Jalal, (2017)
localisation is important for the organization in order to reduce risk and mange critical situation.
Investment in these strategies support in fulfilling short term and long term goals of business.
From the societal point of view, globalisation connects people of one country from other nation.
This helps in understanding different cultures and improving environmental condition. This
encourages in the outsourcing of talent. By this way, more people will get employment
opportunities that would help in raising value of economy to a great extent.
According to Yen and Abosag, (2016) companies play a significant role in the
development of nation and improving economic condition of countries. Entities try to implement
advanced technologies of developed nations so that they can improve the quality of products and
can offer extremely well services to consumers globally. Globalisation assists in making
connection with mass audience and spreading cultural value of region across the globe.
Factors that influence the adoption of globalisation and localisation
As per the views of Telò, (2016) there are various issues due to which companies get failed
to adopt globalisation and localisation strategies. One of the main factors that influences
adoption of these strategies is cultural difference. Each country has its own cultural values and
ethical aspects. When entity enters in the other region then it becomes difficult for these firms to
understand cultural values of particular place and offer products and services to consumers
accordingly. If organizations avoid cultural values of particular nation then it might create
difficulty for the business to sustain in this market for longer duration. Uluskan, Joines and
Godfrey, (2016) argued that there are various external factors that are needed to be considered by
business before adopting globalisation and localisation strategies. Social elements are the most
essential aspects in this respect. Social components are related with behaviour, taste, life style
and life pattern of population of particular place. It is essential for firms to look upon social
differences in between two regions and make strategy in such a manner that marketers can fill
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this gap. By considering religion and lifestyle patterns, entity can develop understanding about
the needs of consumers and can provide goods and services accordingly. For example:
McDonalds is the international brand that conducts its business across the world. Before entering
into the Indian market, company has conducted market research in order to understand cultural
aspect of population. It has been analysed that people like to eat vegetarian food rather than non-
vegetarian and thus; it has prepared menu as per their requirements. This cultural aspect plays a
significant role in the business unit. By considering this element, business can make effective
strategies for globalisation and can run its firm successfully in the new locations.
According to Yen and Abosag, (2016) rules and regulations of different countries are
different from each other. If company plans to enter in the international market then it becomes
essential for the business to follow legislation of such regions. Rules and regulations can
influence the adoption of globalisation and localisation strategies. For example: if entity has
planned to use marketing strategies to promote the brand in particular nation but marketing
content are against the law then in such condition, enterprise will get failed to implement these
strategies effectively. It is because; this will have to make changes in its strategies and will have
to make new plan to attract people towards the brand. Government of diverse nations have made
different policies for the new businesses which are planning to enter in country. Entities are
required to take licence and have to carry out their operations as per the legal guidelines of
authorities. This sometimes create difficulty for the organization and it gets failed to conduct
their operations smoothly.
Lasserre, (2017) stated that priorities and preferences of consumers influence the adoption
of globalisation and localisation. If people like to use more traditional products, entity will have
to provide them products accordingly. Incorrect translation and improper slogan create difficulty
for companies to establish their business and manage operations well. For example: initially KFC
has used “Finger- lickin good” slogan for the brand but it has been found that people are taking it
in a negative manner and they do not prefer to use products of KFC. In such condition, entity has
made modifications in its slogan and changed it into “We’ll eat your fingers off” for Chinese
market. According to Westjohn and et.al, (2016) political condition of the nation plays a
significant role in expansion and internalisation of business. It is essential for the firm to look at
the political situation before making localisation and globalisation strategies. This can support
firm in making correct strategies and taking right decision for the growth of organization. If
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company fails to address political conditions then it might impact negatively on the business unit
(What are the Disadvantages of Localisation, 2018). In such condition, firm will get failed to
manage its operations appropriately.
Wright, (2016) argued that societal values are the driving forces that influence
operational efficiency of business. This is the factor that influences ultimate desires of business.
By considering this element, entity can become able to make more profit in the organization.
Real examples of companies that operates globally
According to Mowforth and Munt, (2015), expansion of business in other international
and overseas nations is a step towards growth of the organisation. It implies to changes in the
world where companies are moving away from the self-regulated countries and toward a more
integrated world.
Some real examples of organisation which have expanded their business are mentioned as
below:
As per the views of Wright (2016), Apple Inc. is considered as the most successful global
brand in present scenario which deals in mobile phones and computer system software. When it
comes to its products, company has opted for one-size-fits-all strategy with iPhone design
identical regardless of region. Apple’s minimalist and intuitive approach has mainly resulted in
products with the global appeal. However, the brand also understand where this standardization
needs to an end. In contrast to this, Rupert and Smith, (2016), viewed that Apple is the major
brand which is not dependent upon other companies as these have a strong brand positioning and
supply of products in other countries.
Krugman (2017), provided another example that Ford Motors was the first brand to carry
out operations internationally as Ford Motor Co. of Canada. At present, company has its
worldwide operations for buying of activities and it is accomplished after considering the source
selection. However, geographical location and cultural proximity will achieve appropriate results
from globalisation (Advantages and Disadvantages of Localisation of Industries, 2018). At
initial stage, company developed its relationship with local manufacturing firms in overseas
nation for assembling vehicles so that they can directly sell their products in another countries.
Dependency of Ford on other companies for sales of products has provided major growth and
recognition to organisation as a globalized venture.
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Obstfeld (2015), stated that similar to McDonald, Domino's has also prioritized its menu
innovation as a means of business expansion, increasing international interest and awareness. In
globalisation of business, company has provided more emphasis on reducing its cost and
expenditure. For this, they have made decision to provide employment to individuals living in
the city in which company has its business outlets. However, it can be said that company is able
to deliver high quality and diverse enough to gain international attention. As per the views of
Asongu and De Moor, (2017), The successful organisations understand that consistent and
universally appealing messaging needs to be combined with an understanding of local culture
and tastes.
In contrast, Cohen (2018) viewed that When Airbnb was first introduced, the company
has faced serious issues in convincing people around the globe. However, under the supervision
of CMO Jonathan Mildenhall, organisation has mainly experienced remarkable global
appreciation and success. It is known to be listed in across 190 nations (What are the
Disadvantages of Localisation, 2018). The most important key to company's globalisation
strategy is considered as localisation. With dedicated localization, company is responsible for
developing site accessible across the globe and storytelling.
Sarti, (2016) stated that Coco Cola is the major example when it comes to globalisation
or expansion of business at global level. However, company needs to adapt changes for creating
a global brand and fulfilment of requirements of international customers. Coca -cola has mainly
introduced its “think local and act local marketing strategy” with the purpose of attracting local
customers. Jones and et.al., (2016), stated that Company has focused upon increasing capabilities
and qualities to attract customers in other countries. Objective of organisation behind
globalisation of business was to maximize profitability. It has achieved success and growth in
market by emphasizing on creating universal values such as sharing and happiness along with the
product and promoting localization.
Impact of globalization and localization strategies on operations and success of other small
enterprises
According to Potrafke (2015), a company can expand its business with an aim to
maximize its recognition and profitability across countries. Small business enterprise needs high
potential to expand its operations (Advantages and Disadvantages of Localisation of Industries,
2018). Huge financial resources are needed to set up their own ventures in other countries and
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selling of products & services. There are some important strategies of globalisation such as multi
domestic activities, global, transnational and joint venture, etc.
Jones and et.al., (2016) viewed that an organisation using multi domestic strategy also
sacrifices its efficiency to focus on the responsiveness of local needs within each of its markets.
In contrast, Pitts and Versluys (2014) argued that implementation of multi domestic strategy tend
to create financial burden on enterprise. Asongu and De Moor, (2017) stated that organisation is
using the “global strategy”, they do not concentrate on local consumers. Orbie (2016) view that
“global strategy” mainly emphasis on economic development of the firm. For example,
Microsoft also offers same software programs around the world but it adjusts the programs to
match the local communication languages (What are the Disadvantages of Localisation, 2018)...
As per the views of Telò, (2016), there are various important localization strategies which
can be used by organisation for regulation of business operations such as web marketing, cultural
norms and purchasing preference (Haynes and et.al., 2017). In some specific markets, consumers
prefer to use mobile browsing to desktop searching that will affect the web development
strategy. This aids the management to promote its products and services across local markets.
Haynes and et.al., (2017) stated that it is essential for organisation to meet cultural expectations
like the way to address customers correctly. In some countries, the use of cultural themes is
always expected like adding gender neutral Suffix “Sama” when interacting with the customers
in Japan. This cultural strategy will enable the organisation to get specific or target customers
from same culture (Advantages and Disadvantages of Localisation of Industries, 2018).
However, it can be said that implementation of location strategies provide positive influence on
the growth of organisation.
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CHAPTER 3: RESEARCH METHODOLOGY
Introduction
Research methodology is analysed as a specific procedure or techniques which are used
for identification, selection, process and analysis of information about the topic. In this, the
research methodology section allows users to evaluate a study's overall validity and reliability.
These methods usually vary by the sources from which the information has been obtained by
scholar. In this context, scholar has carried out research on understanding the concepts of
globalization and localization of companies and analysing benefits and disadvantages that come
with adopting these strategies” (Mackey and Gass, 2015). These methods will provide a direction
to scholar for testing assumption, hypothesis, collection and interpretation of results. Scholar
needs to take an appropriate recognition of different techniques which are involved in these
strategies in order to make research more relevant and appropriate. These important strategies are
mentioned as below:
Research Philosophy
It is considered as belief of scholar about ways through which data related to topic will
be collected, analysed and utilized. It deals with the source, nature and creation of knowledge. In
simple terms, idea of knowledge may appear to be profound, research is engaged in knowledge
creation as the part of completion of research. Scholar will collect secondary and primary data
and also engage in data analysis to answer the research questions and this results will create new
knowledge (Lewis, 2015). There are various kinds of research philosophy such as pragmatism,
positivism, realism and interpretivism. Positivism adheres to the fact that reliable information is
only achieve through observation. Role of researcher in this philosophy is limited to data
collection and interpretation in appropriate way. Interpretivism approach is based on the
naturalistic approach of data collection such as interviews, survey and observations. However,
secondary data research is also considered as popular in this philosophy.
In this research, scholar has carried out study on understanding the concepts of
Globalization and Localization of companies and analyse benefits and disadvantages that come
with adopting these strategies (Flick, 2015). As study in qualitative in nature, the scholar has
utilized interpretative research philosophy for completion of research as it helps in answering
research problems and completion of research. This philosophy has also provided support to
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scholar in achievement of aims and objectives as it is focused on collection of data secondary
articles.
Research Design
It is general plan about the activities performed by scholar for answering the research
questions (Vaioleti, 2016). Important elements of this research design involves the research
strategies and methods which are associated with data collection and analysis. It is an important
strategy that provide support in integration of different components of study in the coherent and
logical way, thereby ensuring that scholar will effectively address the research problems. It also
consists of blue print for the collection, measurement and analysis of data. Research design has
been classified in two main groups such as exploratory and conclusive.
In present context, scholar has undertaken study to analyse the concept of globalisation
and localisation and also analysing the benefits and drawbacks that comes after adopting these
strategies (Ledford and Gast, 2018). Qualitative research has been carried out by scholar on the
basis of theories and various important key literatures.
Research Approach
Research approach can be defined as procedure and plan that is adopted by scholar in order
to collect data and analysis these details in effective manner. Researcher has to select appropriate
approach so that individual can reach to final results effectively. Inductive and deductive are two
main methods that helps investigator in carrying out investigation in appropriate manner.
Inductive is the method that is generally applies in qualitative types of dissertation. This is
concerned with development of new theory by information into meaningful data. This technique
gathers data then look for patterns and develop new theory. It is the type of tool that always
emphasis on learning from experiences (Smith, 2015). It begins with detail observations and
moves towards generalisations. On other hand deductive approach is another type of technique
that is generally applies in quantitative type of dissertations in which scholar has to use
numerical data and statistical calculations. In this method researcher frame hypothesis and test
these hypothesis. Theories are being analysed through statistical calculations and it is proved by
researcher whether hypothesis is accepted or not. One of the main advantages of using this
deductive approach is that it develops casual relations between variables and concepts.
Furthermore, it is beneficial in generalising findings to certain extent (Guthrie, 2015).
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In the present dissertation on concepts of Globalization and Localization of companies and
analyse benefits and disadvantages that come with adopting these strategies scholar has applied
inductive research approach. One of the major reasons of selecting this technique in the current
study is that it has supported in developing scientific attitude. It is simple process and avoids
complex calculations (Worthington and Bodie, 2017). This technique has helped scholar in
organising information in appropriate manner and framing solutions for the research questions.
Research Strategy
It is responsibility of researcher that to make proper strategy so that entire study can be
done in effective manner. There are two main strategies that are used in different kinds of
studies: qualitative and quantitative. Quantitative research is the type of technique that helps in
developing deeper understanding about the topic. It always works to develop ideas by framing
hypothesis (Daniel, Kumar and Omar, 2018). It is related with discovering facts and answering
research questions by using statistical calculations. It is the type of method in which data are
being collected and analysed through numerical comparisons. Quantitative research strategy is
particularistic nature, it is objective in nature. On other hand qualitative is another research
strategy that involves theories and models in order to develop understanding about the topic. It is
holistic in nature and conduct investigation in subjective manner. Researcher involves human
being in the qualitative researches and tries to gather in-depth detail from these persons about
subject matter (Mackey and Gass, 2015).
In the present study on concepts of Globalization and Localization of companies and
analyse benefits and disadvantages that come with adopting these strategies scholar has taken
support of qualitative research strategy. This is more suitable for present study because in this
scholar does not have to look at globalisation and location from companies perspectives but also
individual has to look at the variables from society viewpoint as well (Lewis, 2015). Qualitative
research strategy is appropriate in understanding advantage and disadvantage of globalisation for
the business and its impact on society as well.
Data collection
Data collection is the method of gathering information about subject matter. There are two
main methods primary and secondary that are used to collect detail about topic. Primary data
collection sources are considered as most essential technique because these sources provide first
hand detail to the person and supports in identifying real situation. All this information has not
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being used by any other scholar in any study (Vaioleti, 2016). If scholar takes support of primary
data collection sources then it helps in getting more accurate results. Though, it is time
consuming process but it aids researcher in developing in-depth understanding about topic. On
other hand secondary data collection sources are another type of technique of gathering data in
which investigator has to use already available detail. Books, Journals, internet articles etc. are
many methods of gathering secondary information. Survey, questionnaire, interview etc. are
many methods for collecting primary data. Secondary data are less expensive and less time
consuming techniques (Ledford and Gast, 2018).
Primary goal of researcher is to collect high quality information so that researcher can
answers research questions easily. Advantages of applying primary sources are that accuracy of
these details are too high and these are current information. Primary data are more reliable as
compare to secondary. On other hand benefits of using secondary data is that it saves time and
money of the person who is conducting entire investigation (Guthrie, 2015). In the present study
research has taken support of primary data collection sources. Individual has applied
questionnaire technique. This was appropriate technique that has aided in gaining in-depth detail
about globalisation, localisation and its impact on companies and society as well. Researcher has
involved such respondents in the investigation those who can give answers of research questions.
That has helped investigator in developing understanding about subject matter and reaching to
end results (Worthington and Bodie, 2017).
Sampling
The research can be defined as systematic study on particular topic and finding relevant
facts about subject matter. All information is collection from respondents. Large number of
people exists in population and it is not possible for scholar to involve each person in
investigation. It is very difficult to manage large number of participants feasibly. Sampling is
the tool scholar has to involve such people in the investigation those who can give answers of
research questions effectively (Guthrie, 2015). People those who become part of investigation
called sample. It is responsibility of scholar that to take care of involving right numbers of
participants in investigation those who can give accurate answers of the research questions so
that individual can answer research questions.
There are two main types of sampling methods: probability and non probability sampling
techniques (Daniel, Kumar and Omar, 2018). Both these are used indifferent dissertations and
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research projects. Probability is the method in which each member has probability to be selected.
Random, stratified, clusters etc. are various probability sampling methods. On other hand non
probability is another technique in which all respondents do not have probability to be selected.
In qualitative studies probability method is used by researcher.
In the current dissertation on of Globalization and Localization of companies and analyse
benefits and disadvantages that come with adopting these strategies researcher has applied
random sampling method (Ledford and Gast, 2018). This is suitable for the current investigation
because by this way individual has become able to minimize biasness and has selected people
randomly those who were able to give answers of research questions related to globalisation and
localisation. Scholar has involved 25 managers of McDonald’s which is operating its business
globally. Apart from this researcher has involved 10 social workers as well those who can give
answers on impact of globalisation, localisation strategies on society. By involving both these
groups researcher can address impact of globalisation and localisation strategies on companies
and society both (Mackey and Gass, 2015).
Data analysis
Data analysis is most essential part of dissertation, it allows scholar in transforming data
and discovering useful information. It is multiple facets approach that evaluates data in order to
find out meaningful results. It is crucial task because researcher requires proficient knowledge
and capability to evaluate details. There are various methods to analysis details and these tools
are used in different studies (Ledford and Gast, 2018). Thematic analysis the technique that is
generally applies in qualitative type of studies. In this method scholar has to prepare themes and
have to arrange data in such manner so that results can be interpreted in appropriate manner. It is
the type of technique that uses graphs and charts in order represent information effectively. On
other hand secondary analysis technique is another tool in which researcher evaluate data on the
bases of secondary information. There are many authors those who have conducted their studies
on the same topic. Investigator can use this secondary thesis in order to find out results and
answers these research questions properly (Vaioleti, 2016). In quantitative type of dissertation
scholar has to use statistical analysis tool and have to performed calculations. SPSS is the
software that is generally uses by scholar in order to find out answers.
In the present study on concepts of Globalization and Localization of companies and
analyse benefits and disadvantages that come with adopting these strategies, researcher has
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applied thematic analysis technique (Worthington and Bodie, 2017). This is most effective
method because by applying this procedure investigator has become able to interpret data
significantly and reached to final results.
Ethical consideration
Ethical consideration is most essential aspect of research projects and dissertation. It is
responsibility of researcher that to follow these ethical guidelines properly and have to conduct
investigation according to its principles. Scholar has paid extra attention on respondents and they
have not being harmed during investigation. Scholar has given respect to all participants have not
hurt their emotions (Daniel, Kumar and Omar, 2018). They were allowed to quit any question if
they are not familiar with the question. Researcher has sent them consent form in which purpose
and their rights were clearly maintained. They have signed the consent form and have sent it
back to investigator .After getting their approval scholar has involved them in investigation.
Adequate level of confidentially has been maintained in the research. Investigator has not shared
any kind of data and personal information of participants with any third persons. Individual has
recorded these details in password protected computer and have not shared its password with
anyone (Smith, 2015).
All the details that have been given by respondents have been used in accurate
manner; scholar has not misled any data. In order to avoid discrimination and enhance equality in
research, investigator has prepared questionnaire in three different languages so that ever person
can understand the question properly and can answers these questions. This has supported the
researcher in avoiding complications and getting accurate answers. Investigator has maintained
high level of objectivity and avoided ethical issues (Mackey and Gass, 2015). Collection of data
and storing of information have been done in secure manner. Scholar has used software to store
data. Researcher has taken care of stress, physical discomfort and emotional aspects of
participants and individual has created such environment where all answerers can feel happy and
willingly they share their views on globalisation and localisation with researcher.
Research Limitations
Research limitations of present investigation are described as below:
Formation of aim and objective: It was the initial problem that is faced by scholar because
individual had to narrow the objectives so that actual meaning can be found out. But research
skills of scholar has supported in framing aim and objectives (Guthrie, 2015).
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Selection of sample size: Initially researcher was confused in selecting appropriate number of
participants those who can give answers on his topic. It was time taking process but guidance of
seniors have support person in involving right number of samples in investigation (Ledford and
Gast, 2018).
Limited time: It was another major problem; use of primary data collection sources is time
consuming process. Individual had to conduct investigation from business and social
perspectives both. Thus, it was taking too much time and such less time it was difficult to
complete entire dissertation within specified period of time. But scholar has schedule activities
and has systematically conducted entire research. This has supported in finishing research on
time (Flick, 2015).
Limited financial resources: It is another limitation of this study because scholar was having
limited money. But proper management has supported person in completing dissertation within
specified budget.
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CHAPTER 4: DATA ANALYSIS
Introduction
This chapter will analysis data by using thematic analysis technique. Managers of
McDonald’s and social workers will be part of this questionnaire.
Data Analysis
1350 each
Theme 1: Working length in organisation
Less than 1 year 2
Between 2-3 years 15
Between 3-5 years 5
More than 5 years 3
Interpretation: From the above data it is found that 15 out of 25 respondents have viewed that
they are working in McDonald’s from2-3 years. On other hand 5 out of 25 answerers have
replied that they are in the firm from 3-5 years. Whereas 3 out of 25 participants have viewed
that they are working in firm from more than 5 years. From the above detail it can be concluded
that there are many people those who are in the McDonald’s from 2-3 years. They have good
knowledge about working activities and planning strategy of the company.
Theme 2: Globalization is important for the organization
Yes 20
No 5
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Interpretation: From the above data it is found that 20 out of 25 answerers are here those have
replied that globalisation is the good strategy that can support the firm in expanding operations
across the world and raising profit of business unit. Whereas 5 out of 25 participants have said
that globalisation is not a good strategy because by entering into global market company fails to
make connection with its local consumers. This impacts negative on brand image of firm in local
market. From the above data it can be interpreted that globalisation is the essential part that
supports in growth of entity and helps ion sustaining in the market for longer duration.
Theme 3: Entity is required to adopt effective localization strategies
Strongly agree 5
Agree 13
Disagree 4
Strongly disagree 3
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Interpretation: From the above data it is identified that 13out of 25 answerers are here those
who have viewed that they are agreed that entity is required to adopt effective localisation
strategy. On other hand 5 out of 25 participants have viewed that they are strongly agreed with
the point that they are strongly agreed with the point that localisation supports in developing
brand image of business thus, it is essential for the business. From the above data it can be
concluded that McDonald’s definitely has to concentrate on making effective localisation
strategy so that it can offer products and services to consumers as per their requirements. This
will enhance brand image of business in local market and will help in making local consumers
loyal towards brand.
Theme 4: Benefit of globalization and localization strategies
Economic development 7
Improvement in standard 5
Development opportunities for local small size
business
9
Others 4
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Interpretation: From the above data it is found that 9 out of 25 answerers have replied that
globalisation and localisation strategies are helpful in development of small business. By this
way these small size business can contribute well in economic growth. On other hand 7 out of 25
participants have viewed that these strategies are beneficial in economic development of country.
5 Out of 25 respondents have replied that it aids in raising standards of business and society.
From the above data it can be interpreted that these strategies can help country and business as
well.
Theme 5: major facts that influence adoption of globalisation and localisation strategies in
McDonald’s
Cultural aspects 6
Preferences of consumers 7
Rules and regulation of particular country 10
Financial element of business 2
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Interpretation: From the above study it is identified that 10 out of 25 participants have replied
that if company enters into global market then it becomes essential for the firm to implements
rules of that country. This sometimes creates difficulty for the organisation to conduct its
operations in international market. On other hand 7 out of 25 answerers have replied that taste
and preferences of consumers are very from place to place. If entity is able to offer satisfactory
goods to clients as per their requirements then it would help business in making them loyal
towards brand. Whereas 6 out of 25 respondents have said that culture is considered as important
factor because choice of person gets influenced by their cultural background. From the above
data it can be interpreted that rules and regulations of nations impact on globalisation strategies
of firm. Entities are required to plan their operations according to this legislation so that
organisation can earn profit in global market.
Theme 6: Entity is required to make effective localisation strategies
Strongly agree 7
Agree 12
Disagree 5
Strongly disagree 1
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Interpretation: From the above data it is identified that 12 out of 25 answerers are agreed that
entity is required to make effective localisation strategy because this can help the business in
gaining trust of local buyers. This will help in performing well in the current market. On other
hand 7 out of 25 respondents are strongly agreed that firm definitely is required to make strong
localised strategies. It can be interpreted that localisation supports in conducting operations
successfully and contributing well in society as well.
Theme7: localized strategies are beneficial for the growth of business
To great extent 4
To some extent 15
Not important 6
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Interpretation: It is identified that 15 out of 25 respondents have replied that to some extent
localised strategies are beneficial in growth of the firm. On other hand 6 out of 25 answerers
have replied that it is not essential for business to make these strategies. From the above data it
can be interpreted that companies have to concentrate on establishing their position in local
market but globalisation can support these firms in raising profit and sustaining in market for
longer duration. Globalisation is best way as compare to localisation in order to gain competitive
advantage.
Theme 8: Negative impact of globalization for business
Decrease development of local business 8
Huge investment require 6
Decrease brand image in the local market 10
Enhance class inequality 1
Interpretation: It is analysed that 10 out of 25 respondents have viewed that globalisation
impacts negative on business because entity loses its brand image in local market. For expanding
operations in global market, organisations do not focus on local consumers. That affect
negatively on brand image of the business unit. Whereas 8 out of 25 participants have viewed
that it adversely affects development of local business because they do not get opportunity. 6 Out
of 25 answerers have replied that companies require huge investment before entering in
international market that many times impacts on its financial position.
Theme 9: benefits of localization strategy for business
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Promotes local culture 5
Development chances for small business 8
Reduce risk of failure 10
Enhance brand image in the local market 2
Interpretation: from the above data it is identified that 10 out of 25 respondents have viewed
that localisation strategies are helpful in minimizing risk of business. If organisation enters into
global market then it might be possible that it fails to run its operation in new market. Whereas 8
out of 25 answerers have replied that localisation supports local business to grow well. From the
above data it can be interpreted that localisation is good strategy that need to be adopted by
business by this way they will be able to fulfil their corporate responsibilities and will be able to
gain trust of local buyers.
Theme 10: benefits of globalization strategy for business
Enhance profitability 9
Develop global brand image 8
Implementation of advance technologies 7
Others 1
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Interpretation: From the above data it is identified that 9 out of 25 answerers have replied that
globalisation supports in raising profit of company. Whereas 8 out of 25 participants have said
that it aids in improving brand image of firm. On other hand 7 out of 25 respondents have
viewed that by entering into global market enterprise can get to know about latest technologies
and by implementing these technologies in workplace, these corporation can raise operational
efficiency of the business. From the above data it can be interpreted that globalisation is most
important and beneficial strategy for the organisations because this can help in increasing
profitability and attracting more customers towards the brand.
For social workers
Theme 1: Globalisation creates situation of rising consumerism and it impacts on society
Strongly agree 3
Agree 4
Disagree 1
Strongly disagree 2
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Interpretation: from the above data it is identified that 3 out of 10 respondents have viewed that
they are strongly agreed that globalisation creates situation of rising consumerism and it impacts
on society to great extent. On other hand 4 out of 10 participants have replied that they are
agreed that it can enhance consumerism. Whereas 2out of 10 answerers have said that they are
strongly disagree that globalisation does not impact on society. From the above data it can be
interpreted that maximum people have viewed that globalisation strategies of business raise
consumerism and it impacts on society as well. It sometimes increases inequalities due to which
society members do not get equal treatment. But it also impacts positive because it gives
opportunities to the local people to get more income sources and improve their standard of living
as well.
Theme 2: Globalisation’s impact on cultural aspects of society
Yes 8
No 2
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Interpretation: From the above data it is found that 8 out of 10 answerers have replied that
globalisation impacts on culture in society. On other hand 2 out of 10 participants have viewed
that it does not impact on culture. From the above data it can be interpreted that
internationalisation is the major strategy of many business. By entering into global market these
firms can raise their profitability and can enhance its brand image as well. But die to entering
into global market firms fail to protect their culture. There are many students those who go to
abroad for further studies. Though, they do not find opportunities in local market thus, they
always prefer to go outside so that they can gain quality knowledge and can make their career.
This sometimes impact negative on culture and individuals do not promote their culture globally.
Theme 3: localisation can support in raising standard of living of population
Strongly agree 2
Agree 6
Disagree 1
Strongly disagree 1
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Interpretation: From the above data it is identified that 6 out of 10 answerers have replied that
they are agreed that localisation supports in raising standard of living of population. On other
hand 2 out of 10 respondents have replied that they are strongly agreed with the fact that this
strategy helps in improving living standards of local people. Whereas 1 out of 10 participants
have replied that they are disagreed that it can raise standards of living of population. From the
above data it can be interpreted that localisation strategies are helpful in generating job
opportunities for the local people. This will give them ways to generate income by this way
population will be able to live a standard life.
Theme 4: globalisation impact of education system
True 8
False 2
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Interpretation: From the above data it is found that 8 out of 10 respondents have replied that
globalisation improves education system. On other hand 2 out of 10 answerers have replied it is
unable to improved educational aspect in country. From above data it can be interpreted that
globalisation is the great strategy that always enhance chances for the people to go to another
nations and get high quality education. This helps in gaining more career opportunities and living
their life happily.
Theme 5: localisation enhances relationship between consumers and business
Yes 7
No 2
Not sure 1
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Interpretation: from the above data it is identified that 7 out of 10 respondents have replied that
yes localisation is helpful in enhancing relationship between consumers and business. On other
hand 2 out of 10 participants have answered that it is not able to build healthy relationship with
consumers. From the above data it can be interpreted that localisation strategies are supportive in
order to develop healthy relationship with consumers. This can support in retaining loyal buyers
in the brand for longer duration. In the absence of effective localisation strategies company
cannot gain trust of local people which might impact on brand image in the local market.
Theme 6: Globalisation strategies increases inequalities between poor and rich persons
Strongly agree 2
Agree 4
Disagree 1
Strongly disagree 3
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Interpretation: From the above data it is identified that 4 out of 10 respondents have viewed
that they are agreed with the point that globalisation strategies increase inequality between poor
and rich people. On other hand 3 out of 1 answerers are strongly disagreed that this strategy can
enhance inequality. From the above data it can be interpreted that internationalisation in not good
for the development of society because it creates biasness and increases inequality in society.
Theme 7: Negative impact of localisation strategy of industries
Pollution 3
Regional imbalance 2
Economy recession 4
Industry disputes 1
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Interpretation: 3 out of 10 answerers have replied that localisation strategies impact negative
because it increases pollution in location. On other hand 4 out of 10 respondents have viewed
that it increases economy recession in country. Whereas 2 out of 10 participants have said that
localisation strategies is not good because it increases regional imbalances. From the above data
it can be interpreted that localisation strategies enhances pollution in atmosphere. It misuse
natural resources and spread pollution. Companies have to face declining demand of products
that reduces chances of entity to generate revenues which directly affect economic condition of
nation.
Conclusion
From the above analysis it can be concluded globalisation and localisation both strategies
have their own benefits and demerits. It is essential for the firm that to take support of
appropriate strategy so that it can grow well in market. Entity has to look upon cultural and
social aspect so that it can offer satisfactory services and products to consumers.
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CHAPTER 5: DISCUSSION
Globalisation is the strategy which is used by many business units often. It is the strategy
that allows firms to expand their operations across the world and provide goods and services to
international consumers. Localisation is most common concept in which companies always
prefer to provide products to the cultural linguistic market. Many of the enterprises now-a-days
are moving in the global market in order to raise its profitability and productivity. But
localisation is equally important because it can bring benefit to the government and industries as
well. Consumers find it easy to buy products if entity communicates with them in a local
language. Localisation strategies always adapt to graphic to target market.
Digital revolution has enhances opportunities for the business organisations to expand
their business across the world. Global strategies are considered as tool for the long term success
of company. One of the main advantages of globalisation strategy is that it supports entities to
reach to broader target market. It aids in generating more revenues and gaining competitive
advantage. There are many firms those which are operating in the same market but if enterprise
are able to offer high quality products and services to consumers then it will help in making them
loyal towards brand. Globalisation aids firms in enhance brand image globally and giving tough
competition to the other business. But sometimes this strategy increases chances of failure for
the organization. Enterprises are at great financial risk if they plan to expand their business to
other country. In effective strategies can create consequences to business and it may get failed to
sustain in the market for longer duration. If companies adopt globalisation strategies then it will
have to follow rules of new nation. These changing legislative aspects can affect sustainability of
business in new market. On other hand globalisation is fruitful strategy for society as well. It
enhances opportunities for the population to get employment and raise their income sources. This
helps in improving standard of living of the population. Apart from this, globalisation is
beneficial for the students because they can get chance to complete their higher education from
renowned universities in abroad. But global strategies also increase social inequalities. Both rich
and poor people are treated differently because of their income differences.
Localisation is another concept that explains selling of products and services in local
market. There are many companies those which operate their business in such manner so that
they can develop their brand image in existing market. These localisation strategies are beneficial
for the firms because it supports in raising market share of businesses. This is beneficial situation
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for business because it reduces expenditure of firm and enterprise became able to generate more
revenues. Localising website and communicating with products in local language helps in
gaining trust of buyers and making them positive towards the brand. There are more than 75%
those who like to buy goods and services from such website which is made in their own
language. Localisation improves ranking of firm and aids in understanding consumer’s
preferences effectively. By this way entity can deliver right products to the right customers.
Localisation strategies support society because it gives chance to get developed and run their
business smoothly. It is also helpful in avoiding cultural taboos. There are many firms those who
have entered into global market but fail to communicate properly with international customers.
This has created negative image in the mind of buyers and adversely affected cultural aspects of
local market. It is analysed that one of the major drawback of localisation strategies of industries
is that it increases pollution. There are many companies those which are manufacturing goods
and spreading harmful air in atmosphere, apart from this wastage are being spread in water. All
these activities affect environmental condition negatively. This impacts negative on social
condition and living style of people because it enhance chances of suffering from health issues.
Sometimes demand of products gets reduced in such condition entities may fail to generate
employment opportunities and this create recession situation in economy. Industry disputes,
social evils are common issues of localisation strategies of industries.
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CHAPTER 6: CONCLUSION AND RECOMMENDATIONS
Conclusion
From the above data it can be articulated that companies are required to adopt effective
globalisation strategies in order to grow well in the market. This is the best way to raise profit of
business. It supports entity in generating more revenues ad sustaining in the market for longer
duration. Globalisation allows brands to contribute well in economic development of nation.
Companies those which are operating their business in foreign countries are able to generate
good profit. They pay high tax to government and that amount is utilised for the development of
nation. Globalisation assists business in generating more employment opportunities and
improving standard of living of population. It is the great strategy that allows firms in gaining
competitive advantage. Though many entities take support of localisation strategies but creates
difficulty for business to enhance their revenues. These localised strategies are not able to raise
economy situation of enterprise.
But it is also fact that localisation creates a positive image in the minds of customers and
they feel valued because products and services that are offered by business units are specially
made for local people. Localisation helps in reducing risk and cost of business unit. Business has
to invest such a huge amount for penetrating into new market. If entity is unable to communicate
well with consumers in the local market then it can put negative impact on brand image of the
firm. It has become the most essential strategic plan for entities because this supports brand in
surviving in aboard for longer duration. By localising the firm, entity can build a bridge in
between target consumers and brand. Localisation strategy concentrates on implementing such
activities that suit with the local culture and supports firm in attracting people towards the brand.
Above study can be summarised as global strategies allows business to grow well and raise
employment opportunities. It is the beneficial tool that always works to minimize global poverty
and improving standard of living of population. There are various external factors that need to be
considered by business before adopting globalisation and localisation strategies. Social
components are related with behaviour, taste, life style, life pattern of population of particular
place. If entity offers products and services to consumers as per their requirement and social
behaviour then people will feel happy and they will buy products and services of business. This
can help the company in gaining competitive advantage and sustaining in the market for longer
duration. This cultural aspect plays significant role in the business unit. By considering this
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element business can make effective strategies for globalisation and can run its firm successfully
in the new locations.
Globalisation has improved household income of people and given them chance to grow
well. But companies always have to ensure that their strategies do not impact negative on society
and businesses well. Close monitoring and evaluation of strategies need to be done properly, this
cna support in minimising chances of errors.
Recommendations
Companies should take support of globalisation strategies, by this way these firms will be
able to contribute well in economic development of nation. This can assist in generating
employment opportunities for population and improving economy condition of nation as
well.
Implementation of franchise option and joint venture are great options. Both these tactics
can help firms in entering into new market and gaining attention of consumers.
Franchising is the strategy in which enterprise can give franchise to the company which is
already operating in that market. This can minimise risk of failure and enterprise can
utilise franchisor’s trade mark for attracting new buyers.
Areas for future research
In the present dissertation, researcher has concentrated on globalisation and localisation
strategies overall. But in the future other authors can use specific globalisation strategy with
reference to specific company and can conduct investigation on advantage and drawback of this
strategy. Researcher can conduct study on impact of localisation on social aspect. This would be
another interesting topic for further research.
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APPENDIX
Questionnaire for managers
Name
Age
Gender
Since how long you are working in McDonald’s?
Less than 1 year
Between 2-3 years
Between 3-5 years
More than 5 years
Do you think that globalisation is important for the organization?
Yes
No
Do you agree that entity is required to adopt effective localisation strategies?
Strongly agree
Agree
Disagree
Strongly disagree
What is the major benefit of globalisation and localisation strategies?
Economic development
Improvement in standard of lives of population
Development opportunities for local small size business
Others
What are the major facts that influence adoption of globalisation and localisation strategies in
McDonald’s?
Cultural aspects
Preferences of consumers
Rules and regulation of particular country
Financial element of business
MacDonald’s is working at the global level. Do you think that entity is required to make
localisation strategies?
31
1 out of 45
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