Impact of Global Business Environment on McDonald's Operations

This report analyzes the impact of the global business environment on McDonald's, a multinational fast-food corporation. It begins with an overview of the study, including the background of McDonald's, the aim, research questions, and objectives. The report then reviews the literature on global business environments, exploring different types and their impact on business operations. It examines the benefits and drawbacks of globalization for McDonald's, considering economic, technological, and sociological factors. The research methodology, including research philosophy, approach, choice, strategy, and time horizon, is discussed, highlighting the use of a qualitative approach and questionnaire strategy. The report aims to develop an understanding of the global business environment, identify its benefits and drawbacks for McDonald's, and analyze its impact on business success. The conclusion summarizes the key findings and provides recommendations for alternative research methodologies.

Research Project

Table of Contents
TITLE .............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
1.1 Overview of the study ..........................................................................................................1
1.2 Background of the McDonald's............................................................................................1
1.3 Aim of the study ...................................................................................................................2
1.4 Research questions................................................................................................................2
1.5 Research objectives: .............................................................................................................2
1.6 Rationale of the research ......................................................................................................2
LITERATURE REVIEW................................................................................................................3
RESEARCH METHODOLOGY.....................................................................................................6
DATA ANALYSIS AND INTERPRETATIONS...........................................................................9
RESEARCH OUTCOMES............................................................................................................19
Covered in PPT ........................................................................................................................19
REFLECTION & RECOMMENDATION FOR ALTERNATIVE RESEARCH
METHODOLOGY........................................................................................................................20
CONCLUSION..............................................................................................................................21
REFERENCES ...........................................................................................................................22
.......................................................................................................................................................23
APPENDIX ...................................................................................................................................24
Questionnaire............................................................................................................................24
Research Proposal Form...........................................................................................................25

TITLE
“To analyse the benefits and drawbacks of a global business environment upon business
functions of an organisation”. A study on McDonald's
INTRODUCTION
1.1 Overview of the study
Business environment introduces as the sun or collection of all external and internal
factors such as customers, employees expectations, requirements, supply and demand, clients,
management, owners, suppliers, innovation in technology, activities by government etc. All these
factors directly or indirectly affect the functions within an organisation. Business environment
assist in identifying opportunities, tapping valuable resources, helps in planning, and enhance the
overall profitability, growth and performance of the company (Noe and et. al., 2017). There are
different kinds of business environment such as macro and micro environment. Along with this,
global business environment can be defined as a type of environment in different sovereign
nations with different internal and external factors exogenous to the domestic environment of the
enterprise. It will directly influencing on decision making on resource use and capabilities. For
this project, McDonald's is a chosen fast food organisation in San Bernardino, California, United
States. Apart from this, there are different benefits and drawbacks of global business
environment which will directly impact on business functions within an organisation.
1.2 Background of the McDonald's
McDonald's is a chosen fast food organisation for this dissertation. It was founded in
1940 by Richard and Maurice McDonald and headquartered in Chicago, United State. Company
mainly specialise in selling of Hamburgers, Chicken, French Fries, soft drink, coffee, desserts,
breakfast, Wraps etc. All these products are currently available in its stores at affordable or
reasonable price. Company decide to globalise their business functions at international level
(Fraj, Matute and Melero, 2015). As there are various number of risks and benefits of global
business environment have been existed which will directly impact on business success and
growth of an organisation by decreasing cost of production, providing large number of
employment opportunities, improving infrastructure etc.
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1.3 Aim of the study
Main aim of this project is “To analyse the benefits and drawbacks of a global business
environment upon business functions of an organisation”. A case study on McDonald's.
1.4 Research questions
 What are the idea about concept of global businesses environment?
 What are benefits and drawbacks of global business environment for McDonald's?
 How global business environment has impacted on the success of the business?
1.5 Research objectives:
 To develop the understanding of the concept of global business environment.
 To identify benefits and drawbacks of global business environment for McDonald's?
 To analyse the impact of global business environment on the success of business.?
1.6 Rationale of the research
Main reason behind conducting this study is to investigate the different benefits and risks
of global business environment on business functions of McDonald's. Global business
environment is a biggest phenomena which will help a researcher in personal manner (Kirton and
Trebilcock, 2017). Through this topic, investigator can easily improve its literature review skill,
data collection and data interpretation skills. All these type of qualities will also support them to
do each activities or tasks of research in systematic manner as well as achieve better outcomes
within given time duration. Along with this, McDonald's is a multinational organisation which
will support a community by providing them employment opportunities also also help in
improvement of infrastructure within a specific country.
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LITERATURE REVIEW
A literature review refers as a systematic, and reproducible method which is used by
researcher for identifying and analysing detailed information about the topic. In this section,
different authors have been give their opinion about the study. Main purpose of literature review
is to identify conflicts in previous study (Mamic, 2017). Along with this, in this chapter all
objectives of research are address in systematic and effective manner.
The idea about concept of global businesses environment
According to Allison Tanner, (2018) Global business environment refers to the
interactions of company at international level that affects the operation of business. It proves to
be beneficial for a company and risky as well. Market have emerged global for most of the
products and services. World trade has increased more than 6% a year. It involve business
transaction which are performed outside the national borders. It consist of movement of goods,
services, technology and transaction in intellectual property right like patent, trademark, know
how etc at international level. Profit is a reason for company that make company to go globally
when there is less profit in domestic market. There are different types of business environment
such as Task environment, General environment etc. which makes huge impact on the business
operations of multinational organisations. Task environment affects the specific task related to
buying, selling and delivering the product and services. It is combined with suppliers, customers,
distributor and competitor's. General environment includes factors which is present in the
environment in which business operate and the factors are geographic location, technology,
culture and the global environment.
The impact of global business environment in business are studied by various factors
which are social factors which are concerned with changes in social structure. Another is legal
factor which affects business strategies according to the government rules and regulation
(Gillespie and Riddle, 2015). Economic factor which study the relation of demand with
economic situation and all these changes in economic condition is considered while forming
business strategies. Political factor which affect the operations of business due to changes in
government policies and these changes is considered at the time of forming business strategy. At
last but not least is technological factor which involves innovation of technology which is used
for reducing cost and developing new product.
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Benefits and drawbacks of global business environment for McDonald's
There are various Benefits and Drawback of global business environment of McDonald's which
are briefly mentioned below -
According to the Todd Anderson, (2019) McDonald's is a leading fast food maker
because it produces quality food, quick service, everyday value and many more. It posses unique
position in competitive world due to experienced management and advanced operation system.
The company posses 3000 restaurant in the world their success depends upon personal and
professional integrity. They have focused on building trust by providing good customer service.
The impact of global environment can be analysed in two ways that is positive and negative.
The positive impacts is dependent upon various factor that involve economical factors
which are growth rate, cost of living and interest rate. As where the economy grows, McDonald's
expand its business. When Indonesia GDP rate was high, McDonald's took the opportunity and
expanded which results in their increased brand reputation.
Another factor is Technological factor, as innovative technology has improved the
performance through providing better quality at low price whereas lack of knowledge and skills
of employees for utilising advanced technology increases the business cost of McDonald's.
Sociological factor are also important for growth purpose and the factors are population
growth rate, health, cultural norms and career attitudes as where population is high and people
are low health conscious, the McDonald's expands their business in that country. The negative
impact decreases the degree of competitiveness of a company (Epstein, 2018). For example,
McDonald's decide to expand its business at a region where there is less population eat beef will
create problem in attracting customers.
Economical factors can also impact in negative manner which involves rapid increment
in fast food restaurant all over the world so they faces the problem in attracting consumer who
will consume the healthy food product. The another factor is legal factor in which they have to
face religious laws to operate in Islamic countries as they posses different rules and laws which
involves specific standards for food (Herrera, 2015).
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The impact of global business environment on the success of business.
According to the Jim Woodruff, 2018, Global business environment helped McDonald's
in maximising the purchasing behaviour or power of its potential customers. Global business
environment positively impact on business growth and success of an organisation by increasing
its sales and market ratio. There are different benefits of global business environment such as it
boost the economic development of a nation, raise the standard of living and reduce poverty.
Expansion in global level will also support McDonald's to increase their sales. For example:
economics fall and rise, an an organisation that has better export market is an effective position.
Global business environment is also essential and effective for McDonald's by
maintaining its relation with international clients. It means growth and success of an enterprise at
global level is high which will further assist them by increasing its market share (Bendell, 2017).
As it will also important for fast food chain by maximising customer base and also motivating
employees. Effective business environment at global level will also support an enterprise to
retain employees for long time and accomplish better results and outputs for future success and
growth.
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RESEARCH METHODOLOGY
Researcher methodology refers as an useful and essential process which is applied by
researcher to gather appropriate data about the drawbacks and benefits of global business
environment for McDonald's. For this chapter, research onion framework introduces one of the
best model which have inner and outer layer (Evans and et. al., 2017). In these layers, different
number of methods and approaches also included which are determined as under:
Research philosophy: This is identified as an important part of research which is used
by researcher to collect, analyse and used information about the topic. It is basically classified
into two forms such as interpretivisim and positivism. In this study, interpretivisim research
philosophy has been applied by an investigator to accumulate relevant and valid data about the
study so that proper interpretation can be completed (Lasserre, 2017). On the other side,
positivism philosophy is not useful according to this topic because it take more time and cost of
an organisation or researcher.
Research Approach: This layer of research onion framework refers as a systematic plan
applied by researcher to do each activities of study in systematic manner. This section of
research methodology is basically divided into two parts which is inductive and deductive. In
this investigation, inductive approach has been used by investigator to identify research issues
and ways about how to overcome that problem (Charter and Polonsky, 2017). It is also essential
for a researcher by providing quality data about the topic. On the other hand, deductive approach
is not effective for this project because it provide information in form of hard facts.
Research Choice: Research refers as a sequential and useful process used by researcher
for collecting, analysing, interpreting and implicating results about the study. There are different
types of research such as quantitative, qualitative and empirical (Azimi Delarestaqi, Razavi and
Boroumand, 2017). All these are consider best method but according to the study, qualitative
research is used by researcher as it will support an investigator by giving quality and accurate
data about the impact of global business environment upon business functions within an
enterprise.
Research Strategy: There are different types of strategy in research such as observation,
case study, survey, questionnaire etc. All these are best type of research strategy but according to
the investigation, questionnaire has been applied by researcher (Gutierrez, Boukrami and
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Lumsden, 2015). As this strategy help them by providing accurate and reliable data about the
topic.
Time Horizon: Time is important and significant part for doing each activities or tasks of
investigation. For this, Gantt chart introduces as an essential bar chart followed by researcher to
analysis starting and ending time duration for completion of dissertation (Hair and et. al., 2015).
In this tool, different number of activities will be covered which are shown as under:
Sources of data: Primary and secondary are consider two types of data sources applied
by researcher to collect in-depth as well as reliable information regarding the influence of global
business environment on business functions. Under primary research, questionnaire will be
followed as at it will assist an investigator by giving valid information about the topic ( Sekaran
and Bougie, 2016). On the other hand, in case of secondary source, books, articles, magazines,
review of literature etc. sources has been applied to accumulate in-depth data which is related
with the impact of global business environment.
Data collection techniques, procedures and methods: For collecting accurate
information about the study, questionnaire introduces as an effective technique, method and
procedures which is applied by an investigator (Reyes‐Rodríguez, Ulhøi and Madsen, 2016).
Thus, it is an effective techniques for collecting appropriate data regarding to the impact of
global business environment on business performance of McDonald's.
Research sampling: It introduces as an important section of research onion framework in
which sample size have been selected by researcher. This part of investigation is divided into two
types which is probability and non-probability (Fernie and Sparks, 2018). According to the
study, probability sampling will be applied because it not require maximum time of an
organisation. Therefore, with the help of probabilistic sampling, 60 respondents have been taken
into consideration. On the other hand non-probability sampling is not useful for this project
because it take more time and not give accurate output for research.
Research Ethics: It is identified a an essential section while doing each activities of
study. As it includes different rules and regulations which are externally needed by researcher to
carry out dissertation in systematic manner (Birkin, Clarke and Clarke, 2017). Informed consent,
confidentiality and anonymity are consider main elements of research ethics which should be
followed by researcher. As following all these principles in properly better outcomes related to
the research automatically accomplish by the researcher.
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Research Limitation: For this investigation, time is consider major limitation which will
directly impact on researcher while collection of accurate amount of data. There are also
different number of limitation for researcher while doing study in systematic manner (Brannen,
Piekkari and Tietze, 2017). It includes, formulation of aims and objectives of investigation,
implementation of information accumulation method, selection of sample size, lack of past
research in the investigation etc.
Research reliability and validity: It refers as an important part of study which is based
on questionnaire. Along with this, validity and reliability of the study is basically depend on
questionnaire because it provide reliable and valid information regarding the impact of global
business environment on business functions and success of McDonald's at international level
(Wood, Wrigley and Coe, 2016).
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DATA ANALYSIS AND INTERPRETATIONS
Data analysis introduces as an effective process used by researcher to analysis accurate
and reliable information about the benefits and drawbacks of global business environment on
business functions within an enterprise (Fernie and Sparks, 2018). In order to analyse data, there
are basically four type of data analysis which is regression analysis, inductive analysis, deductive
analysis and thematic analysis. All these are consider best form of data analysis but according to
the study, thematic analysis is best suitable method used by researcher. As this method highly
assist an investigator to accumulate accurate and reliable data about the topic.
Q1) Are you have knowledge about the global business environment? Frequency
a) Yes 50
b) No 10
Q2) What are the different entry modes through which McDonald's can
globalised its business?
Frequency
a) Franchises 25
b) Merger & Acquisition 20
c) Partnership 15
Q3) What are the benefits of global business environment for
McDonald's?
Frequency
a) Raises Living Standards 10
b) Increase Sales 25
c) Create Jobs 14
d) Improved International Relations 11
Q4) What are the major drawbacks or risks of global business
environment on business functions of McDonald's?
Frequency
a) Changes in consumer demands 25
b) Declining employment growth 15
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c) Different culture 9
d) Environmental degradation 11
Q5) In what manner, global business environment is impact on business
success of McDonald's?
Frequency
a) Positive 40
b) Negative 15
c) Neutral 5
Q6) Which factor of global business environment highly impact on
business functions of McDonald's?
Frequency
a) Political 12
b) Economical 10
c) Social 11
d) Technological 8
e) Environmental 9
f) Legal 10
Q7) Does business environment of international market supports an
organisation in accomplishment of competitive benefits?
Frequency
a) Agree 50
b) Disagree 10
Q8) What are the challenges faced by McDonald's while globalised their
business functions at international market?
Frequency
a) Culture difference 20
b) Communication barriers 15
c) Government regulations 25
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