Research Proposal: Corporate Governance and Brand Value at McDonald's

This research proposal investigates the crucial relationship between corporate governance and brand value, using McDonald's as a case study. The study explores the impact of corporate governance on business expansion, evaluating the effectiveness of McDonald's Board of Directors' governance...Read More

RESEARCH
PROPOSAL

Table of Contents
RESEARCH PROPOSAL TITLE .................................................................................................1
1. INTRODUCTION.......................................................................................................................1
1.1. Background of the study..................................................................................................1
1.2 Purpose of study...............................................................................................................1
1.3 Statement of problem......................................................................................................1
1.4 Background of industry....................................................................................................1
1.5 Background of company...................................................................................................1
1.6 Research Questions..........................................................................................................1
1.7 Research aims and objectives...........................................................................................2
2. LITERATURE REVIEWS .........................................................................................................2
2.1 Definition of Dependent variable.....................................................................................2
2.2 Definition of Independent variable...................................................................................2
2.3 Impact of independent variable on dependent variable....................................................3
2.4 Theories, Models, Framework of DV and IV and challenges..........................................3
2.5 Summary of Literature Review........................................................................................3
3. RESEARCH METHOD...............................................................................................................4
3.1 Research Design...............................................................................................................4
3.2 Research Approach...........................................................................................................4
3.3. Ethical consideration.......................................................................................................4
3.4 Validity and reliable issues...............................................................................................5
3.5 Resource requirement.......................................................................................................5
3.6 Time Scale........................................................................................................................5
3.7 Questionnaire....................................................................................................................5
3.8 Limitations of research.....................................................................................................8
3.9 Scope of research..............................................................................................................8
CONCLUSION................................................................................................................................9

REFRENCES.................................................................................................................................10

RESEARCH PROPOSAL TITLE
“To analyze the importance of corporate governance and brand value for a company”.
A case study on McDonald's.
1. INTRODUCTION
1.1. Background of the study
Corporate governance defines as a system of rules, processes and practices under which a
company can direct and control its operations. It involves create balance among benefits of
stakeholders like shareholder, customers, investors, customers and more.
1.2 Purpose of study
The present research is going make an investigation about concept of corporate
governance and brand value of a company. This would help in building brand value of business
through which high competitive advantage can be gained.
1.3 Statement of problem
Present research helps an organisation in understanding the importance of corporate
governance. This would aid in building effective brand image as well as create value of business
also.
1.4 Background of industry
Today, business of companies dealing in beverage industry are concern more on
corporate governance, as it play an important role in enhancing brand value of business.
1.5 Background of company
For this purpose, McDonald's is taken that deals in food sector. It is considered as one of
the largest food restaurant of UK which serves products in almost all over the world (Aebi,
Sabato and Schmid, 2012). In context with McDonald's, its Board of Directors mainly focuses on
leadership and continuous improvement which making governance policies. They give
commitment to ensure integrity of business in all of its dealing with stakeholders (Chang, 2016).
1.6 Research Questions
Research Question
 How to evaluate the concept of corporate governance and brand value for McDonald's in
business expansion ?
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 What are ways to ascertain the effectiveness of corporate governance made by Board of
Directors of McDonald's?
 How to determine issues of corporate governance failure in McDonald's ?
 What are the different ways by which McDonald's can overcome from governance
failure?
1.7 Research aims and objectives
Research aims: “To analyze the importance of corporate governance and brand value for a
company”. A case study on McDonald's.
Research Objectives
 To evaluate the concept of corporate governance and brand value for McDonald's in
business expansion.
 To ascertain the effectiveness of corporate governance made by Board of Directors of
McDonald's.
 To determine issues of corporate governance failure in McDonald's.
 To identify methods by which McDonald's can overcome from governance failure.
2. LITERATURE REVIEWS
2.1 Definition of Dependent variable
Dependent variable can be defined as variable which affect by the presence of
independent variable. Here in present research, brand value is dependent variable which is
affected by corporate governance.
2.2 Definition of Independent variable
Independent variable refers to a variable which affects the value of depended variable. In
context with present report, corporate governance is considered as independent variable which
affects brand value of an organisation in both negative and positive manner. Corporate strategy
and governance refers to hierarchically strategic plan that defines present goals as well as way to
attain the same. It majorly focuses on balancing potentials of management, suppliers, investors
and all other stakeholders in an appropriate manner.
2.3 Impact of independent variable on dependent variable
Whenever a policy related to corporate governance changes then it would affect brand
value of a company aslo. As per views of Barnett and Salomon, (2012), it has ascertained that
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corporate governance seems to be a procedure for economic co-operation and development. It
helps in making policies and principles to run business activities in appropriate manner. In
context with McDonald's, its success is built on principles of personal and professional integrity.
From financial perceptive, business value is considered as important factor which directly affects
profitability. Therefore, both corporate governance and business value aid McDonald's in
expanding its corporation on global level.
2.4 Theories, Models, Framework of DV and IV and challenges
According to Du and et. al., (2013), Corporate Governance is one of the major theoretical
framework which includes agency theories, stakeholders and resource-dependence theories etc.
While brand value plays major role in terms of economical, social, sporting, culture and more. It
is considered as the most valuable assets for a company which includes the concept of brand
equity, awareness and image. In context with McDonald's, its entire policies and principles are
designed by its Board of Directors. They concern on benefits of each stakeholder while making
policies. They give support in enhancing brand value of this company at marketplace.
2.5 Summary of Literature Review
According to research carried out by Eccles, Ioannou and Serafeim, (2012), it has
evaluated that Board of Directors of McDonald's are entrusted with as well as responsible for
oversight of business in a fair and ethical manner. They have also believed that effective
corporate governance is considered as critical for fulfilling the obligation of company to
shareholders. Along with this, it has comprehended that there are various factors presence within
organization, which leads to corporate governance failure. But due to some factors as given
below, hamper adversely its brand value and performance. It includes Lack of planning, where
organizational planning covers long-term and short-term goals which specifies in what manner
activities have to be done. Therefore, failure to plan will destroy the effectiveness of corporate
governance as well as leads to completely break-down the structure as well. It has ascertained
from the views of Benn Edwards and Williams, (2014), that there are various methods present
through which Board of Directors of McDonald's can overcome from threat of corporate
governance failure. It includes Prioritize Risk Management, which refers to most crucial way by
which occurrence of corporate governance failure can be minimized. In this regard, managers of
McDonald's are required to establish a proper system at workplace which helps in minimizing
risks.
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3. RESEARCH METHOD
3.1 Research Design
It is a vital component of a research which shows in what manner data can be collected
and arranged for further processes. It also defines the type of study like descriptive case-study,
survey, observation and more), experimental and semi-experimental, etc. of a particular research.
By defining a framework, investigators can find answers of framed research questions more
appropriately.
3.2 Research Approach
It is also considered as most essential part which is used to attain the set aims and
objectives of research in given period of time. Mainly, it is classified into two main parts that
are- deductive and inductive approach. Here deductive approach is used to test the validity of
theories and hypothesis of a research. While, inductive method is contributed to emergence of
new assumptions and generalisations. In context with present research, investigators of
Mcdonald's have used inductive approach to make a discussion. This method doesn't include any
formulation of theories or hypothesis as well as it focuses more on achievement of aims and
objectives in given period. In addition to this, the data collected either by primary or secondary,
is used to identify a definite pattern under inductive approach which creates a conceptual
framework as well.
3.3. Ethical consideration
It also refers as main aspect of research which indicates in what manner how to carry a
research on a relevant topic. It assists investigators to follow ethic rules while conducting set
activities research. Along with this, ethical consideration states project makers to do not enclose
any kind of personal data of clients as well as keep it safe also. In this regard, some major
characteristics that researchers should have are transparency, delegations, effective and soft
communication etc. Such skills and abilities of investigators help in getting cooperation of team
members for achievement of goals and objectives.
3.4 Validity and reliable issues
This part concerns on reliability and validity of data gathered by investigators in a
research. Therefore, it is necessary for researchers to take data from authenticated sources only.
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3.5 Resource requirement
In order to carry out entire activities of resources, project managers of McDonald's are
required to introduce proper resources. It includes capital, proper time, training and development
programs etc. This would help in building confidence of team members and encourage them to
give their best for achievement of goals and objectives.
3.6 Time Scale
In order to conduct the entire research as per required objectives, project makers of
McDonald's will take approximate 4 to 5 months. In this process, they have used proper
techniques to complete each activity in predetermined period so that optimum utilisation of time
and resource can be obtained.
3.7 Questionnaire
Questionnaire
Q1. Are you familiar with the concept of corporate governance?
a) Yes
b) No
Q2. What are the main implication behind failure of corporate strategy governance?
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a) Ineffective Power Distribution
b) Conflict of Interest
c) Poor Documentation
Q3. What are the ways to overcome from corporate strategy governance failure?
a) Prioritize Risk Management
b) Increase Diversity
c) Appoint competent Board members
Data Analysis:
Theme 1:
Q1. Are you familiar with the concept of corporate governance? Frequency
a) Yes 22
b) No 8
Interpretation: It has interpreted from this graph that among 30 respondent, only 22 are familiar
with the concept of corporate strategy governance.
6
a) Yes b) No
0
5
10
15
20
25
Column B

Theme 2:
Q2. What are the main implication behind failure of corporate strategy
governance?
Frequency
a) Ineffective Power Distribution 10
b) Conflict of Interest 8
c) Poor Documentation 12
Interpretation: From this graph, it has interpreted that 12 users out of 10 have stated that poor
documentation leads to failure of corporate governance. While 10 respondents confirm
ineffective power distribution for the same and other 8 to conflict of interest.
Theme 3:
Q3. What are the ways to overcome from corporate strategy governance
failure?
Frequency
a) Prioritize Risk Management 10
7
a) Ineffective Power Distribution
b) Conflict of Interest
c) Poor Documentation
0
2
4
6
8
10
12
Column I

b) Increase Diversity 8
c) Appoint competent Board members 12
Interpretation: As per this graph, 10 users out of 30 suggest prioritize risk management to
overcome from failure of strategy governance. While 12 give support to appointment of board
members and 8 to increase diversity.
3.8 Limitations of research
Under this present research, it is most essential part to formulate aims and objectives in
narrow manner which enhance its scope. Secondly, the researchers do not have an extensive
experience related to primary data collection. Therefore, due to both reasons there is a huge
chance of nature of implementation of data to be flawed.
3.9 Scope of research
Understanding the concept of corporate governance aid McDonald's in running business
more appropriately. It includes adequate principles which carriers certain distribution of rights
and responsibilities of associated members- Board of Directors, Managers, Shareholder,
8
a) Prioritize Risk Management
b) Increase Diversity
c) Appoint competent Board members
0
2
4
6
8
10
12
Column B

Auditors, Creditors and more. This would aid to formulate a proper organisational structure
which helps in enhancing productivity of business.
CONCLUSION
It has concluded from this report that corporate governance is a most crucial factor,
which affects the brand value of a company in both negative and positive manner. In context
with McDonald's, employers of McDonald's good governance refers as a journey not a
destination. Therefore, its BOD has used to review its governance principles on annual manner
for continuous improvement. This company also give commitment to stakeholders and
shareholders to concern on their benefits while designing corporate strategy and governance.
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REFRENCES
Books and Journals
Aebi, V., Sabato, G. and Schmid, M., 2012. Risk management, corporate governance, and bank
performance in the financial crisis. Journal of Banking & Finance. 36(12). pp.3213-
3226.
Barnett, M. L. and Salomon, R. M., 2012. Does it pay to be really good? Addressing the shape of
the relationship between social and financial performance. Strategic Management
Journal. 33(11). pp.1304-1320.
Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate
sustainability. Routledge.
Chang, J. F., 2016. Business process management systems: strategy and implementation.
Auerbach Publications.
De Grosbois, D., 2012. Corporate social responsibility reporting by the global hotel industry:
Commitment, initiatives and performance. International Journal of Hospitality
Management. 31(3). pp.896-905.
Du, S. and et. al., 2013. The roles of leadership styles in corporate social responsibility. Journal
of business ethics. 114(1). pp.155-169.
Eccles, R.G., Ioannou, I. and Serafeim, G., 2012. The impact of a corporate culture of
sustainability on corporate behavior and performance (No. W17950). Cambridge, MA,
USA: National Bureau of Economic Research.
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