The Impact of Louis Vuitton on the Romanian Market

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Research Project
The impact of LOUIS VUITTON on Romanian market place and role of franchising in
accelerating business profitability

Table of Contents
Introduction................................................................................................................. 3
Literature review..........................................................................................................4
Methodology................................................................................................................5
Reference list.............................................................................................................. 6

Introduction
Project background
In this era of globalisation, business expansion has become a trend and most of the
ventures are showing their interest in expanding the existing business to new
markets at both domestic and international level (Krugman, 2017). The key aim of
expansion of business venture in new location is capturing new customer base and
accelerating the profitability. Being one of the most popular French fast fashion retail
companies across the globe, LOUIS VUITTON must expand their existing business
to international market to increase their market shares and global presence across
the globe. Using the franchise technique to enter into the Romanian market place is
good business idea and franchise technique can provide a range of benefits to
business organizations like LOUIS VUITTON. This project has been conducted to
assess the impact of globalisation over business operations of LOUIS VUITTON and
the how franchise technique improves business performance and profitability
simultaneously for the company.
The study is about globalisation that has captured the modern business industry and
influenced ventures functioning internationally. Globalisation assists business
organizations to bring positive changes within firm (Bond and O'Byrne, 2014).
However, apart from this, globalisation affects business operations. For an example,
high market competition, decreased local business market performance is the major
affects of globalisation on business. This study will outline all the positive and
negative sides of globalisation as well as franchising as an international market entry
method so that business organizations like LOUIS VUITTON can use these to
improve their performance and profitability. Through this study, businesses can get
an overall idea of the globalisation and franchising market entry method along with
its benefits and challenges.
In modern business scenario, globalisation has become a trend that is influencing
business ventures to conduct business operations at international level. Franchise is
one of the effective international market entre methods that is associated with
several benefits and challenges that impact over business performance (Cavusgil et
al., 2014). In order to understand the significance of globalisation and franchising as

an international market entry method, the researcher has conducted this research
project.
Project aim
The key aim of this project is to determine the impacts of globalisation and the role of
franchise technique in increasing the business profitability of LOUIS VUITTON.
Objectives
For successful and effective completion of research projects, setting appropriate
research objectives is such necessary. The key objectives of this project are as
follows:
 To assess the influence of globalisation in improving business performance of
LOUIS VUITTON
 To evaluate the benefits that can be achieved by LOUIS VUITTON for using
franchise technique in Romanian market place
 To assess negative sides of franchising
 To recommend effective ways to mitigate those negative sides
Research questions
Research questions of this project are as follows:
 How does globalisation influence LOUIS VUITTON to improve business
performance and profitability simultaneously?
 What are the benefits of franchise technique, availed to LOUIS VUITTON in
Romanian market place?
 What are the negative sides of franchise as an international market entre
method?
 What are the mitigation methods can be used by LOUIS VUITTON to reduce
the negative sides of franchise technique at Romanian market place?

Literature review
Impact of globalisation in improving business performance
Globalisation is considered as a leading concept that has become the key factor in
business life during last few decades. As per the consideration of Crane and Matten
(2016), it is the boon to business, customers and economy as a whole. Modern
business scenario is highly competitive and ventures are competing with each other
in order to achieve completive advantage in marketplace. Globalisation has provided
multiple benefits to business organizations and influenced on economic, social and
ethical aspects of business organization. .
Internationalisation of business
Globalisation has influenced business organizations to expand their existing
business to new locations, especially at international level. In modern business
scenario, companies are showing their interest in functioning internationally (Dachs
et al., 2014). Globalisation has influenced business organizations to shift their
business internationally.
New customer base and increased profitability
In new marketplace, due to globalisation, business ventures get a new customer
base so that ventures have the opportunity of meeting their sales target by capturing
the customer base and meeting their expectations effectively (Irvine et al.,2015).
Alternatively, it allows business organizations generating more amounts of profits in
business.
Increased FDI flow
Foreign direct investment is an important business factor that influences over
business profitability. Due to globalisation, the rate of foreign direct investment has
been increased. Hence, companies can better conduct
Benefits of Franchising
Franchising is a form of business through which the owner or franchiser of goods or
services obtains distributions by affiliated distributions. Franchising is considered as

one of the most effective internationalisation methods that are being used by multiple
business ventures. According to Hoy and Stanworth (2014), franchising is associated
with several benefits that influences business growth and profitability are as follows:
Cultural adaption
Franchises offer the business owner with wide range of support services. It proves
helpful, while this comes to adapting to the methods of a foreign nation. Organization
can assist
Reduced operational cost
Through making appropriate use of franchising methods, business ventures can
reduce their business operational cost effectively. Franchises conduct all the
business operations by themselves and then they share profits of the company with
the franchiser or owner. Hence, the franchiser has not to spend money on training
their employees or maintaining business operations (Méndez et al., 2014).
Franchises are responsible for conducting business operations, which reduces the
operational cost of franchiser.
Increased profitability
It is undeniable that franchising is effective in accelerating the business growth and
profitability simultaneously. Not only franchising helps to reduce the operational cost
of the franchiser but also supports and infancies to accelerate the profitability amount
as well. Due to trained employees of franchises, franchiser enjoys high sales
revenue of the company.
Franchising risks and measure technique
Apart from the positive sides, Franchising is also associated with multiple risks that
are as follows:
Conflicts between franchiser and franchises
One of the major risks in franchising is conflict between franchiser and franchises.
During conducting different business operations, conflicts may arise between the
owner and franchises (Salar and Salar, 2014). Due to this kind of risk, the entire
performance of the company may decrease as well as led towards blunder.

Unclear business goal
Many times, business goals may not be cleared to employees that affects over
business performance and results in less profitability of the company.
Limited freedom of franchises
Another major problem in franchising method is that franchiser provides limited
freedom to franchises. In generally, franchises make agreement with franchiser,
where franchises have limited freedom in terms of business aspect. This can also
bring negative impact on organization as well.
Mitigation of risks
 In order to mitigate the probability of conflicts between franchiser and
franchises, arranging meeting is necessity, where franchises will state their
opinions and requirements for continuing the business without any sort of
conflicts.
 Franchiser must arrange seminars to inform their franchises and exhaustive
workforce unit regarding their business goals and targets. After consideration
of the business goals, franchises and workforce unit can better perform
towards accomplishing the organizational targets.
 Franchiser must provide freedom to franchises so that they can make their
decisions, strategies and plans for betterment of business activities.
Literature gap
Apart from the positive sides, there are multiple negative sides are also associated
with globalisation. In the above literature review, the negative impacts of
globalisation and the ways of mitigating those negative impacts have not been
included. It must be considered as literature gap.

Methodology
Introduction
In this portion of the study, different methods will be evaluated that will be used to
complete this project effectively.
Research methodology is referred to a set of methods that will be used for
compaction of this project. It includes multiple vital elements such as research
philosophy, research approach, research design, data collection method, data
analysis method, sampling technique, sampling size and others. In simple words,
research methodology is the map that directs ways of accomplishing the research
project in an effective manner.
Research philosophy
Research philosophy is considered as a belief regarding the method in which data
and information about an experience should be collected, analysed and utilised.
There are several types of research philosophies such as positivism, interpretivism
and realism (Saunders et al., 2015). In order to complete this research project
effectively, the research will use the both positivism and interpretivisim philosophy
together. Positivism philosophy will assist the researcher to explain, where
interpretivism philosophy will assist to understand different aspects of research.

Figure 1: Research onion
(Source: Saunders and Thornhill, 2012)
Research approach:
In this project, the research has decided to use the deductive approach instead of
inductive approach to complete this project successfully. Deductive approach will
assist the researcher to explain casual relationship between different concepts and
variables. Additionally, deductive approach will assist to measure concepts
qualitatively. Through using the deductive approach, the researcher will be able to
evaluate different aspects of project effectively.
Research design:
Research design is regarded as the set of multiple methods as well as procedures
utilised for collecting and analysing measures of different variables expalined across
the research problem (Tetnowski, 2015). In this study, the researcher will use both
exploratory and explanatory research design to better assess the information and
produce a satisfying conclusion of the project. Exploratory research design will be
used for clarifying the research issues and hypothesis as well as for establishing

research priorities. Additionally, explanatory research design will assist the
researcher to understand the problems of the research project, which will lead
towards better solution of the problems.
Data collection method
Data collection method is separated in two different and effective methods; primary
data collection method and secondary data collection method (Cheng and Phillips,
2014). For collection of authentic data, the researcher will use both primary and
secondary data collection methods in this project. Additionally, the researcher will
use quantitative method as a primary data collection method, where 50 customers of
the specified company will be invited for survey program. However, the survey
questionnaire will be sent to customers via email. By using online platform, the
researcher will complete the survey program. On the other hand, in secondary data
collection method, multiple journals and articles of different scholars will be used.
Data analysis method
Data analysis is considered as the process of systematically analysing the collected
data by using the appropriate methods to prepare an authentic and justified
conclusion of the project. Apart from this, it is the technique of presenting data and
information in graphical formats. There are several tools such as Python, SAS,
Apache Spark, Excel and others can be used for analysing the collected data. In this
project, the researcher will use Microsoft Excel to analyse the collected data and to
present in graphical formats.
Sample size
In order to complete the data collection process, setting the sample size of the
survey program is necessity. The researcher has selected sample size of 50
customers of the specified company.
Sampling technique
The researcher will use the simple random sampling method for authentic
completion of the project.
Ethical consideration

In order to complete this research project ethically, the researcher will conduct all the
activities ethically. The researcher will not force respondents to take part in the
survey. Additionally, the researcher will follow the Data Protection Act 2018 for
safeguarding the data and personal information of the respondents.
Limitations
Paid journals contain more authentic data and information compared to ordinary
journals and articles. The researcher will not be able to use those paid journals and
articles due to lack of proper funds.
Work breakdown structure
Activities Start Date
Duratio
n End Date
selection of the research topic 29-04-19 3 02-05-2019
Aim and objective setting
02-05-
2019 2 04-05-2019
Reviewing literatures
04-05-
2019 7 11-05-2019
Preparation for data collection
11-05-
2019 6 17-05-2019
Primary data collection
17-05-
2019 5 22-05-2019
Secondary data collection
22-05-
2019 8 30-05-2019
Data analysis
30-05-
2019 4 03-06-2019
Making conclusion and
recommendation
03-06-
2019 3 06-06-2019
Submission of project
06-06-
2019 1 07-06-2019
Table 1: Work Breakdown Structure
(Source: Created by learner)

Gantt chart
selection of the resaerch topic
Aim and objective setting
Reviewing literatures
Preparation for data collection
Primary data colelction
Secondary data collection
Data analysis
Making conclusion and
recommendation
Submission of project
29.4.19 4.5.19 9.5.19 14.5.19 19.5.19 24.5.19 29.5.19 3.6.19 8.6.19 13.6.19
Figure 2: Gantt Chart
(Source: Created by learner)
Conclusion
Research methodology is the portion that includes multiple methods and techniques
to complete the research project effectively. Different elements of research
methodology have been detailed in above portion.