Impact of Multinational Organizations on Local Businesses in India

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MANAGING A SUCCESSFUL BUSINESS PROJECT

Contents
Introduction...........................................................................................................................................2
The aim and objective of the Project.................................................................................................2
Project management Plan.................................................................................................................4
Work Break Down structure and Milestone schedule.......................................................................5
Small Scale research by applying qualitative and quantitative research...........................................6
Analysis of research and data using appropriate tools and techniques.............................................7
Conclusion...........................................................................................................................................19
Referencing.........................................................................................................................................20

Introduction
The McDonald's expansion into the Asian countries started with its expansion into Japan in the
1970s. Soon in 1996, the company expanded its business into India. During its initial expansion, the
data showed that the company can only target around 8% of the Indian population. One of the key
reasons for the low customer base was that company focus was on the urban population and less
than 30% of the population lived in urban areas. Many local organizations believe that their profits
have reduced. McDonald's have a great impact on the country's society and culture, Therefore it can
be concluded that due to the presence of global companies have an impact on the competition and
due to this there is a reduction in profit for local business in host countries. The food habits and low
income of the country pose a lot of challenge to McDonald business in India. The study is conducted
to understand the globalization and its impact on the local business of the host nation, here India.
McDonald is taken as the organizational context.
The aim and objective of the Project
Aim:
Access the impact of Global organizations on business environment of host countries.
Objective:
 Access the impact of multinational companies on host country businesses.
 Access the difference in wage level of an employee of local business and multinational
organizations
 Access the impact of global organizations on the local culture, business environment and
consumer behaviour
 Access the differences in the upper and the lower level employees of companies host
country operations.
P 2 Project Management Plan
Definition:
The project is undertaken to study and analyse the impact of Multinational organization on the
business environment of the host country. The study will help in understanding the key challenges
that the company poses on the local business of host countries.
Statement:

The study is conducted to analyse and access the impact of multinational companies on the
employee wage and the difference with that of local business of the host country. The wage
structure, employment and income disparity are the main cause of the impact of multinational
companies on host nations.
Scope: The study is conducted for understanding the business impact McDonald on the host nations.
It will also help in finding the employment scenarios and wage structure of the company in the host
country. The project will help in evaluating the root cause and challenges. The study will be helpful in
devising policies and procedures through which businesses can remove key hurdle and challenges.
The study can be used by the business professional to make improvement in the international trade
and business environment.
Project Cost: The project cost analysis was performed by considering factors such as direct and
indirect cost. The cost of the project will include variable cost, fixed cost and cost incurred on the
project management process.
Project Activities Cost
Research equipment’s £300
Project Assistant £200
Project Running Cost £150
Overall Cost of Project £500
Total Economical Cost £1150
Project Time: The time required for the project will be 8 weeks. While accessing the project time
various factors were taken into consideration. Effective project management will involve a division of
task. For quick project execution, the managers must prioritize the work and assign the task
accordingly. The project time must include the overall available time, time
Project Quality: The project quality is analysed to make sure that the project is able to produce the
desired output. The project quality can be judged by identifying the data sources, making sure that
the collected data is correct and relevant to the study. Quality of data will depend on qualitative and
quantitative research. The qualitative research will provide information about customer’s behaviour,
what they think and how can the company meet their demand. The only access to the qualitative
data will not help the company. Access to numerical data is also important, therefore qualitative
research was performed (Silverman, 2016).

Communication: Communication between team leaders and team members is very important.
Effective communication will result in the timely sharing of data and information among the team.
The team leader must make sure important information about the project is available to teams. The
following communication will be used for effective team communication;
Project Progress Reporting: The team leaders are responsible for sharing the current status of the
project. The project reporting will be carried out on a weekly basis, the team leaders will take a
weekly meeting with other stakeholders. Project reporting is very important as it makes sure that all
project stakeholders are aware of the current situation of the project. If there are any challenges
that they can discuss and find a solution to the problems (Heagney, 2016).
Project Progress Analysis: The project analysis will involve team members and project managers.
The meeting will be carried out weekly and the main issues that will be included in the meeting will
be the current position of the project, challenges and possible solutions will be discussed. The
project progress analysis should include all the team members and the project manager.
Daily Project Monitoring: The daily project monitoring will make sure that the members are aware
of the progress of the project. Daily project monitoring will include the project coordinator and team
members and the team leaders (Mir and Pinnington, 2014). The project coordinator will take
information from the teams and give it to the project manager. The main aim of the daily meeting
will be to access daily work progress.
Risk Management: Every project has some amount of risk involved with it. The managers are
responsible for accessing the project risk. Risk management is a very important component of the
project execution process. Timely analysis of risk will result in saving huge cost and time wastage.
The main risk associated with the project is the correctness of the survey, amount of data, target
group, the authenticity of the research data, the technique of data collection, using relevant data for
conducting research.
Resources: The project research is done through a survey. The main resources that are required are
human capital for conducting the survey. The Survey will require a laptop. Communication
equipment such as a smartphone for communicating with the project manager and other team
members. Access to high-speed internet will help in conducting research.
Project management Plan
Phases of Project Management

Initiation: project initiation is the first phase of the project management lifecycle. In this stage, the
project value and feasibility are studied. There are two ways through which the managers can access
and decide if the particular project should be pursued or not. They can use a business case
document and feasibility study to make a decision about the project.
Planning: After the project initiation phase, the next stage of the project lifecycle is the project
planning phase. A properly researched planning help the project teams by providing direction and
guidance. The project planning helps the organization for producing quality products, risk
management and communicating with stakeholders and managing suppliers. The project plan is
helpful in understanding the obstacles that might arise during project execution (Burke, 2013).
Execution: The project execution phase is the most important phase that is associated with the
project management phase. The execution phase is concerned with the production of products that
can meet the need and demand of the customers. The team leaders are responsible for allocating
the resources and make sure that they are focussed on the assigned task.
Monitoring and control: project monitoring and control is an important phase of project
management. The managers should constantly access the progress of the project. The managers can
use the key performance tool for effective monitoring of the project (Kerzner, 2017).
Project Closure: this is the last stage of the project management life cycle. In this stage, the
managers can measure the failure and success of the project.
Work Break Down structure and Milestone schedule
Project Activities Actions Start Data Finish Data
Project Planning Create a project management plan 10/07/2019 12/07/2019
Aim and Objective Decide the main aim of conducting
the project
13/07/2019 18/07/2019
Data Collection
Method
Decide the data collection method
for conducting the research
19/07/2019 22/07/2019
Work Break down
structure
Work break down structure is
created
23/07/2019 28/07/2019
Primary research Obtain data through primary
research
29/07/2019 10/08/2019
Data Analysis Analysis of research data 11/08/2019 15/08/2019
Findings Finding key outcomes from
research
16/08/2019 20/08/2019

Research Assessment Accessing the effectiveness of the
Research
20/07/2019 25/08/2019
Gantt chart
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8
Project
Planning
Setting Aim
and
Objective
Decide
Data
Collection
Method
Creation of
Work
breakdown
structure
Primary
Research
Data
Analysis
Research
Findings
Research
Assessment
Small Scale research by applying qualitative and quantitative research
Qualitative Research – Literature Review

Globalization is the process through which the world previously disconnected due to technological
and physical distance. It involves sharing of new ideas, goods, products and services and promotes
interaction among people. Since the last 60 years, there is a huge increase in globalization. The
globalization has both positive and negative impact on the businesses of the host country. The local
companies are reducing the wage of an employee in order to become competitive with global
brands. According to Shankar et al., (2014), many people believe that globalization is a threat to the
local culture. Many countries worry about their culture being affected by these global brands. The
expansion of McDonald's business into India has created a lot of hurdles for local business. Global
companies like McDonald have a huge operational budget, while local companies do not get easy
access to capital. Global companies like McDonald create business challenges to local business in
host countries and what measures should be taken by local companies in order to give tough
competition to these brands. From the above discussion, it seems that globalization is a major
challenge, but research has shown that through globalisation host nation have greater income and
opportunity. The main aim of the research is to access the impact of the global organization on local
businesses of third world country. To understand the impact market research should be performed.
According to Hennink et al., (2010), generally there are two methods for conducting market research
the qualitative and quantitative methods. The qualitative research method is the process of
obtaining research data through conversational communication. The qualitative research does not
provide data and information that will have significant importance to research. For a proper analysis
of market access to numerical and statistical data is very important. According to Bhat (2019),
quantitative research can be defined as the process of finding data through numerical and statistical
analysis. Hennink et al., (2010), suggest that quantitative analysis can be performed through an
online survey, online polls and questionnaire.
Quantitative Research
The quantitative research was conducted using an online questionnaire. The survey contained 12
questions. The questions were developed by conducting a proper analysis of the aim and objective
of the research. The project manager is responsible for conducting a meeting with its team members
and decides the main objective of the research. Around 100 people participated in the research. The
organization must ensure that the research data is collected by involving a large number of
respondents (Taylor et al., 2015).
Analysis of research and data using appropriate tools and techniques
Q 1: What is the impact of multinationals companies into your business?
Options Number of Respondents

Increased Competition 35
Cultural and Social Impact 25
Environmental Impact 10
The decrease in Profit margin 30
Q 1: What is the impact of multinationals
companies into your business?
Increased Competition
Cultural and Social Impact
Environmental Impact
Decrease in Profit margin
Multinational organizations such as McDonald's poses a challenge to the local business of the host
country. According to the research data, around 35% of respondent believe that presence of global
organization has resulted in increased competition. Due to competition, local companies are losing
their market share to McDonald's.
Q 2: Do you consider McDonald’s has an impact on your business?
Options Number of Respondents
Agree 57
Not Agree 33
Not Sure 10

Q 2: Do you consider McDonald’s has an
impact on your business?
Agree
Not Agree
Not Sure
As discussed above that global organizations have an impact on the local business. This is clearly
visible from research data. Around 57% agree that McDonald's is a threat to local business. 33% does
not agree. 10% does not have any knowledge about McDonald’s impact on their business. Finally, it
can be said that McDonald's can cause an impact on businesses of the host nation.
Q3: What is your strategy for business growth, considering competition?
Options Number of Respondents
Diversification 10
Invest in Talent 15
Localized products 35
Cost Reduction 30

Q3: What is your strategy for business
growth, considering competition?
Diversification
Invest on Talent
Localized products
Cost Reduction
Analysis of research data shows that companies need to device effective business strategy in order
to compete with McDonald's business.20% of respondent believe that the diversification strategy
will help them in making a position in the market. Around 35% suggests that the best strategy will be
to offer localized products. Local companies should utilize their knowledge and experience of the
local business environment. A large number of respondent favoured cost reduction strategies will be
very effective.
Q4: What are the challenges your business might face from McDonald’s?
Options Number of Respondents
Reduced market share 20
Reduction in customer base 20
Reduction in profit margin 16
All of the above 44

Q4: What are the challenges your business
might face from McDonald’s?
Reduced market share
Reduction in customer base
Reduction in profit margin
All of the above
The main challenges that the local business will face due to McDonald’s business are reduced market
share, customer base and profit margin. Analysis of research data shows that 20% of respondents
believe that the global organization's impact on their business. Due to McDonald's, the local
businesses have lost significant market share this has resulted in a decrease in customer base.
Q5: Do you consider improving the quality of products and services to compete with McDonald's?
Options Number of Respondents
Yes 65
No 35