The Impact of Cross-Culture on Business Growth: McDonald's Case Study

This report investigates the impact of cross-culture on the business growth of McDonald's, focusing on the challenges and opportunities presented by international expansion. The research begins with an introduction to the concept of cross-culture and its importance in a globalized business environment. The methodology section details the research approach, including qualitative methods, interpretivism philosophy, and a descriptive research design. Data collection methods, specifically primary research using questionnaires with a random sampling technique, are outlined. The report aims to identify the concept of cross-culture, determine the barriers faced by McDonald's in expanding globally, and analyze ways to minimize the impact of these barriers. The study explores the rationale behind the research, the research questions, and the objectives. The report also covers data analysis techniques and ethical considerations, providing a comprehensive overview of the research process and findings.

Research Methodologies

Table of Contents
SUBMISSION 1: RESEARCH DESIGN PROPOSAL ......................................................1
Chapter 1: Introduction..................................................................................................1
Chapter 2: Research Methodology................................................................................3
Chapter 3: Data Analysis...............................................................................................7
Chapter 4: Ethics, Values, Referencing And Presentation ..........................................8
SUBMISSION 2: LITERATURE REVIEW.........................................................................9
Chapter 1: Literature Review Introduction.....................................................................9
Chapter 2: Literature Review Main Body.....................................................................10
Chapter 3: Literature Review Conclusion....................................................................12
REFERENCES................................................................................................................13

SUBMISSION 1: RESEARCH DESIGN PROPOSAL
TITLE: Impact of cross culture on business growth of company.
Chapter 1: Introduction
Overview of Research
Cross culture concept recognise differences between business people of various
backgrounds and nations. It is business environment where people from various regions
and countries are interact and also bring the various values. In business, cross culture
is related to efforts of an organisation to assure people interact in an effective manner
with the professionals background various from own (Cavusgil and et. al., 2014). It is
more important with globalisation of the businesses. Most of the organisations seek
towards expand market for goods which utilise resources to provide training to staff
members for communicate with the people which belongs to other culture. Under this,
culture is one of the most necessary factor and it impacts on business growth. When
company conduct its business in other country then it faces some cultural issues
because it is complex for firm to understand the other company culture easily,. It will
impact on development and growth of business.
Background of Research
In business, cross culture is explained as efforts of an organisation to enhance
ability of employees so that they can communicate with professional associates and
colleagues from various nationalities and backgrounds in an effective manner. In this
era, working with the people from various cultures is common occurrence in business.
McDonald's is fast food organisation and it was founded in year 1940 operated through
Richard and Maurice McDonald. This restaurant is serving more than 69 million
consumers on daily basis on more than 100 countries. The main goal of McDonald's is
to develop standardised goods in Spain, Singapore and South Africa, consumers will
taste similar flavour. McDonald's serve to people of different countries according to
culture (Cho, 2016). Under this, adaption consists several needs like local law, tastes
and preferences. This restaurant requires to adopt several religions, customers and
situations to expand business globally.
Rationale of Research

This present report is taken in to consideration on impact of the cross culture on
growth of business organisation. It provides the deep understanding about the cross
culture concept so that it will easy for learner to conduct this investigation. In this, there
are two reasons or contexts of a learner to conduct a research such as personal and
professional. Mainly, learner conduct an investigation for personal interest to gain
knowledge (Dheer, 2017). On the other hand, learner perform research in professional
context so that it will help in future or enhance career growth. Through this, learner can
know about the challenges faced during conduct research or ways to overcome from
them.
Research Aim
Aim of research is “To determine the impact of cross culture on business growth
of company. A case on McDonald's.”
Research Objectives
 To identify the concept of cross culture.
 To determine the barriers of cross culture faced by McDonald's while expanding
their business at global level.
 To analyse the ways through which impact of barriers related to cross culture can
be minimised for McDonald's.
Research Questions
 What is cross culture?
 What are different barriers of cross culture faced by McDonald's while expanding
their business at global level?
 What are various ways by which impact of barriers related to cross culture can be
minimised for McDonald's?

Chapter 2: Research Methodology
The research methodology explaining about conducting study. It consists values
and assumptions which serve rationale for an investigation and standards that
investigation uses for gathering, interpretation data and also reaching at the conclusion.
Research methodology identified factors to write the hypothesis and evidence which
requires to make effective decisions (Dongfeng, 2012). This is complete plan of the
attack on research issues, it gives overall structure for process that researcher follows,
data collection and analysis.
Type of investigation
Research methods are techniques and strategies which are mainly used in data
collection or an evidence for analysis to uncover new information for create the better
understanding regarding particular topic. Two different research methods are given
below:
Qualitative method- This is subjective in nature and consists examining on
minimum tangible aspects of specific subject. This provides the detailed information
regarding specific issue. The qualitative method gives an insight in to issues that
develop hypothesis for this. It is used to uncover the trends in opinions and thoughts in
to issue (Eijdenberg, Paas and Masurel, 2015).
Quantitative method- This method defined phenomenon through gathering the
numerical data that can be analysed through using the mathematically based methods.
It is related to gathering as well as analysing the numerical data. Its main concentration
is on measuring scale, frequency and range. It provides data that can be collated as
well as presented statistically in an easy manner. This method is systematic empirical
research of the observational phenomenon via computational and statistical techniques.
In this investigation, qualitative method of research will chosen because it gives
the in- depth information and data regarding particular area. It will help in provide
positive research outcomes within given time period (Eisenberg and et. al., 2013).
Research philosophy
It is belief about method in which the data regarding phenomenon should be
collected, analysed and then used. It is development of the knowledge in detailed
manner. Different research philosophies are given below:

Interpretivism philosophy- It is concerned with philosophical position of
idealism and it is based in the qualitative analysis. Its main focus on the meaning and
reflect on various aspects of problem.
Positivism philosophy- It is philosophical theory that stating certain knowledge
based on the natural phenomenon (Evert and et. al., 2016). Main role of investigator us
limited to data collection and also interpretation in objective manner.
In conduct this research, interpretivism philosophy will be used through an
investigator because it is based on qualitative methods and also analysis the viewpoints
of different authors.
Research Approaches
It is procedure that includes steps of the wider assumptions to the detailed data
collection method, analysis and also interpretation. It depends on nature of investigation
issue that is being to be addressed. Different research approaches mention below:
Inductive approach- It is mainly related with the qualitative investigation and
referred to in an investigation literature. This approach does not imply the disregarding
theories at the time of developing research objectives and questions in better manner.
In this, it works over particular area for generalise conditions on the basis of research
concepts. Inductive approach is flexible in nature because there is no need of pre-
determined theory for gather relevant information and data (Federico, Rabetino and
Kantis, 2012).
Deductive approach- It works from general to more specific. This approach
based on general idea to reach at particular consideration and also related with
positivism paradigm. This consists hypothesis in order to prove the assumptions. This
consists beginning with theory and also developing the hypothesis from that. It is related
with the quantitative investigation method.
Inductive research approach will be applied through researcher because it gives
the subjective reasoning through using different ways (Fernández-Serrano and et. al.,
2018).
Research Design
This is explained as framework of the techniques and methods which selected
through an investigator to combine different research components in a logical manner

so that research related issues can be handled in an effective way. It gives gives right
direction to conduct an investigation by using specific methodology. The research
design is blueprint that mainly developed to answer research related questions.
Exploratory, Descriptive and Explanatory are different research designs which given
below:
Descriptive design- It attempts to explain the situation, issues in a systematic
manner. This method consists observing and explaining behaviour of particular subject
area. This is designed to depict participants in accurate manner (Georgieva, Jandik and
Lee, 2012). This research design observes, explained and also document aspects of
situation that occurs naturally.
Explanatory design- This research design clarifies why and how relationship
among two or more than two different aspects of conditions. It allows an investigation to
test particular theories as well as make the amends to past theories.
Exploratory design- It is conducted for issue that was not researched before
and focus on defining aspects of study in detailed manner. This is flexible in nature and
also gives initial ground for future investigation.
There has been descriptive research design will used through researcher
because it helps in explain situation systematically (Kelsall, 2013).
Data Collection
It is explained as procedure of collecting and analysing information and data on
the variable interest in systematic manner. It helps in gather information from relevant
sources to search answer of research questions. Data collection is related with accurate
acquisition of the data that based on area. Its main aim is to capture the quality data
that cab translate in to data analysis in an easy manner. Data collection in an accurate
manner is necessary to assure research integrity. Primary and secondary are two
different kinds of data collection methods:
Primary method- This is first handed data that gathered through an investigator
for first time. Results of this research are accurate when data and information is
gathered through researcher directly. Data collection from this source is expensive and
needs resources such as manpower and investment. Different sources to gather the
primary data are books, articles, journals, observation etc.

Secondary method- It implies the second- hand information that gathered and
also recorded already through one person for specific purpose. In this method,
information is easily available and this saves time as well as cost. Sources to gather the
data and information in secondary method are books, articles, journals, internet and
many others. With the help of using these methods, researcher can able to find
accurate and reliable information for getting positive outcomes in an effective manner.
In this present investigation, questionnaire will be developed in primary research
method because through this investigator can able to collect the information from large
number population within less period of time (Kim and Gao, 2013).
Sampling
The sample is subset of people that being studied. This represents large number
of population and draw inferences regarding that population. It is statistical process that
is related with selection of individual observation. It aids in make the statistical
inferences related to population. Sampling is concerned with choosing units from
interested population for gathering the accurate information. Different sampling methods
are mention below:
Probability method- It is used some form of the random selection. In this
sampling technique, sample from the large population are selected through using
method that based on probability theory. It is sampling technique where samples are
collected in process that provides equal chance to all people which being chosen.
Non- probability method- In this sampling method, samples are collected in
process that does not provide all people in population the equal chances of selection.
Researcher chooses samples which based on subjective judgement of an investigator
rather than the random selection. It is based on the expertise of an investigator and
carried out through the observation methods (Kuada, 2014).
In conducting this information, there are 40 respondents selected through
researcher by using random sampling in probability method. Reason for using the
random sampling is that it provides the equal chances to all respondents to participate
in questionnaire. The target population is management of McDonald company because
they it has the deep understanding about conducting business at global level and the
issues they face.

Chapter 3: Data Analysis
It is explained as process of applying the logical or statistical technique to
analyse data in better manner. It is a process that is mainly used through investigator
for minimizing the data to interpretation. Data analysis aids in minimising large data in to
small. There is a need to an investigator to assure that assumptions concerned to
technique are to be satisfied (Minola, Criaco and Obschonka, 2016). In this, data will be
collected through developing questionnaire related to cross culture. So, for analysis of
data, researcher will use thematic analysis and make interpretation of data for getting
the positive outcomes effectively. Under this, graphs will be developed which shows the
frequency of answers of respondents.

Chapter 4: Ethics, Values, Referencing And Presentation
To conduct an investigation, there is a need to consider ethical issues. It is a
responsibility of researcher to follow all the ethical considerations to conduct research in
a better manner. Inform consent, confidentiality and anonymity are different principles of
ethics. Researcher should keep the data of respondents confidential so that they can
give their participants in research in a better manner (Noe and et. al., 2017). On the
other hand, informed consent, researcher provide data with enquiry objectives to every
candidate that will properly guide and draw valid conclusion. Anonymity is related with
primary investigation and regarding detailed information related with specific area.

SUBMISSION 2: LITERATURE REVIEW
Chapter 1: Literature Review Introduction
It is text written through someone that need to include important points of the
current knowledge. The literature review is one of the most necessary step in research
process. Its main purpose to convey readers regarding work that has been done already
concerned with specific topic. This part of research is wider, in-depth and systematic
review of the literature. This analyse literature body in context to classify through using
themes and discuss with the other. In order to collect the information, different sources
researcher can be used for an instance articles websites, internet sources, books and
many others (Obeidat and et. al., 2012). On the other hand, researcher consider the
opinions and viewpoints of different authors to get accurate information in systematic
manner. The literature review is more than summary of sources and also symbolise
ideas as well as arguments of the others. In addition to this, literature review analyse
information that collected through determining the gaps in to current knowledge. It
shows readers that have in- depth grasp of subject.
The scope of literature review is that it may be selective or comprehensive but
should examine principle works. This helps in analyse the relationship as well as
connections between various works. On the other hand, literature review aids to neglect
redundancy in investigation and also determine new issue. It permits researcher to
enter in ongoing conversation with some other researchers and scholars (Ward, 2016).

Chapter 2: Literature Review Main Body
Concept of cross culture
As per opinion of CAROL KOPP (2019), Culture is way of the thinking and set up
values, beliefs and norms which reinforces and taught through other group members, it
is set of assumptions as well as solutions to issue that shared system and assure
survival. Cross culture concept recognises differences between people of business of
various ethnicities, nations and backgrounds. In this, the cross culture extend to
physical contact, perception and body language of personal space. The people come
across different nations for specific work. In context to business, when a staff member
of international firm transfer to other country then they require master cross culture.
They should learn languages and adopt social norms (Özer, 2012). There is a need to
company to provide training to employees so that they can easily understand culture of
other country and also do not face any kind of issue in a better manner. On the other
hand, cross culture is an issue in international business as success of the international
global base on interaction of staff members from various regions an cultures. Some of
consideration consists concerned regarding differences which are caused through law,
languages and culture.
Under this, cross cultural management plays a necessary role and consists
managing the work of teams in a manner that includes differences in customer
preferences, cultures and practices in global business context. The culture impact how
staff members are managed in better manner based on priorities and values. It impacts
on functional areas of distribution marketing and sales. It also effect on analysis and
decisions of firm to enter in to new market. Businesses which are looking for operate at
international level require to aware about language barrier, body language and tone. In
the cross culture, communication plays a necessary role (Rauch and et. al., 2013). It is
process of developing as well as sharing the meaning between people from various
cultural backgrounds. Better communication is necessary for the international business
as there is more risk in getting the loss in to translation. It is necessary for organisations
due to development of global business, internet and technology. This kind of
communication consists understanding how the people from various culture can
communicate and speak. Cross cultural communication is necessary to organisations

due to development of business at global level. This is essential for an organisation too
diverse the workforce on conduct an investigation at global level. This kinds of
communication consists understanding about people from various culture.
Barriers of cross culture faced by McDonald's while expanding their business at
global level
According to Luo 2016 , businesses which deals at global platform face many
kind of issues due to cultural diversity. In this aspect , it is essential for business entities
to manage this diversity without impacting on profitability. The McDonald's company
have its branches all around the world but during expanding the business , they faced a
vital range of issues because of cross culture. Such as expanding business in Asian
countries was a biggest challenge for them due to language difference , various food
culture and many more. In addition , McDonald's company faced the problem of
preference of customers. Like in Asian countries , people are fond of traditional food
and due to this fast food was ignored in starting time period.
According to Klitmoller and Jonsen 2015 , In the starting phase of expansion of
business at global level McDonald's major issue was difference of culture. It is so
because the origin country of company is USA and culture of this country is different
from rest of other countries at world level. Herein , below some types of cultural barriers
faced by McDonald's company are as follows:
Communication issue – This is one of the critical issue faced by McDonald's
because in starting time period , they had not local staff who can communicate with
people easily of other countries. Due to it , their staff faced the issue of understanding
the need of customers (Shi, and Franklin, 2014).
Difference in perception of people – As well as in different nations , people has
different perceptions towards a particular company and its products. In the context of
McDonald's company, their products failed to attract customers in new countries
because people's perception was different towards their products (Stuetzer and et. al.,
2018).
McDonald company is one of the biggest brand in the aspect of fast food selling.
They have a vital range of branches across the nation but to reach at this level company
faced different kind of barriers and cultural issues are one of them. Eventually , this

company's major products are fast food which are popular in all countries but in starting
phase of business expansion , their brand image was zero and people ignored their
products which leaded to loss. Apart from it , in their staff members there were both
female and male employees that are not liked in some countries like UAE , Dubai and
many more. In addition , dress code of staff members was also an another barrier for
them because in some nations traditional dress is preferred at work place.
Analyse the ways through which impact of barriers related to cross culture can
be minimised for McDonald's.
According to Kathy Ireland (2016) , this is important for companies to overcome
from cultural barriers as soon as possible so that brand image can be created in new
countries. In the aspect of McDonald company , they faced various kind of cultural
barriers in process of expanding business at global level. Their barriers can be sort out
many different ways like consideration of time zone of nations. It is so because in some
countries late night culture is followed by people , hence in this situation they should
focus to open their cafe in night. On the other hand , in some countries people like to go
cafe and restaurants in day time. So overall , they should manage their time zone as
accordance of countries' culture not as per own suitability.
McDonald company can sort out their cultural barriers by making some changes
in their plans and policies. Such as they are needed to make their daily schedule in
advance as per the consideration of holidays and festivals of a particular country (Ting
and Ying, 2013). It is essential because if they will not coordinate as accordance of
country's rules and regulation regarding to holidays. Like in some countries , people use
to go in cafe at the end of week then it is necessary for them to keep restaurant open on
those days. As well as they can celebrate festivals of nations in which they operate such
as in Asian countries festivals are different from USA then they can give some discounts
and offer in their festival time period. In addition to this, by learning some phrases and
gestures can also help them in managing the cultural diversity. For example , leading
the customers by using some key words like hello , welcome , please etc. As well as
presenting some gestures towards customers who visits such as shaking of hands ,
bow and many more. By making all these efforts can be helpful for them in order to
overcome from cultural issues.

There are various kind of ways to solve the issues and barriers that raises due to
difference in culture of nations. In the context of McDonald company , they faced
various kind of issues that can be solve by making some changes as per cultural need.
For example setting a particular special day for all staff members in order to share their
cultural experience with newly hired employees so that they can adopt required
changes (Xiangyang, Hai and Rauch, 2012). As well as they can focus to hire local
employees of a region so that they can guide employers about changes. Apart from it ,
they should try to learn about client 's culture closely so that they can satisfy their
needs. Like in the Islamic countries , their tradition and culture is totally different and in
this situation they should focus to spend time about their culture and try to communicate
information with rest of members. As well as , they can try out some new things as
accordance of country's culture and their religion. By doing so their customers will be
attracted towards their services and issue of cultural diversity can be sort out.

Chapter 3: Literature Review Conclusion
Literature review has been considered as the most important part of research. It
explained concepts related to the cross culture in detailed manner. This part provides
the in- depth information about the particular concept. There has been more discussion
conducted on cross cultural related area. Data has been collected through using
different sources and analysis opinion of different authors. There has been discussed
about the cross culture and issues which faced through McDonald's at the time of
expanding business at global level. Different ways by which issues concerned with the
cross culture can be reduced for McDonald's has been studied here.

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