Effectiveness of Market Entry Strategies: McDonald's Case Study

This research project examines the market entry strategies employed by McDonald's to expand its business globally. The report begins with an executive summary and research proposal, outlining the background, aims, objectives, and research questions. A literature review explores various market entry strategies, such as direct exporting, franchising, and partnerships, along with their benefits and challenges. The study uses a survey of 20 managers to analyze the effectiveness of these strategies, focusing on factors influencing market entry decisions, the company's global operations, and the use of franchising. Data analysis includes interpretations of findings related to the company's longevity in the market, key decision-making factors, and the perceived effectiveness of franchising. The report concludes with a discussion of the research findings, recommendations, and reflections, providing a comprehensive overview of McDonald's approach to entering new markets and its implications for business expansion.

RESEARCH
PROJECT
(GLOBALISATION)

EXECUTIVE SUMMERY
this research includes the different strategies for entering in the new market
.it includes the signification and Rationale of the research and it also include the
Data analysis of the research with the help of the 20 managers and take the
research from the view which they are give to us. it also incudes the methodology
for the research. this reporting also included the Discussion of the research and
also include the result and finding of the research.

Table of Contents
EXECUTIVE SUMMERY..............................................................................................................2
RESEARCH PROPOSAL...............................................................................................................1
RESEARCH PROJECT...................................................................................................................4
RESEARCH METHODOLOGY.....................................................................................................4
DISCUSSION................................................................................................................................21
CONCLUSION AND RECOMMENDATIONS..........................................................................23
REFLECTION...............................................................................................................................24
REFERENCES..............................................................................................................................26
APPENDIX....................................................................................................................................27

RESEARCH PROPOSAL
Background of research:
the present study based on the Macdonald's company. the topic is to identify the
effectiveness of different strategies employee by the business to enter in the new market.
Macdonald's is fast food restaurant chain of the united states of America which is founded by
Richard and Maurice Macdonald in 1940 and now they have chain in the all over the world it is
very important for the organisation to create some strategies to enter in the new market and also
promote the business at the global level(Banerjee, 2017). When an organisation need to enter in
the new country for expand the business they need to take care the some strategies which help
them in the new start the business in a effective way and also help then to grow in the new
market and attract the consumer's and also improve the business at the global level. So. this
research will use various strategies for entering in the new market which help the company to
enter in the new market with the easy way and without taking the risk or minimize the
risk(Grant, 2016).
Aim:
“To identify effectiveness of different strategies employed by business to enter into new market:
A study on McDonald's”
Objectives:
 To understand conceptual framework of globalization
 To describe benefit for companies to enter into new market
 To identify issues faced by business in implementing various market entry strategies
 To examine various market entry strategies that can be employed by McDonald's
Research questions:
 What is the conceptual framework of globalisation?
 What are the benefits for the companies to enter into new market?
 What are issues faced by business in implementing various market entry strategies?
 What is the various market entry strategies that can be employed by McDonald's?
Literature review:
As per the view of Einav, Farronato, and Levin, (2016) benefit of the enter in the new
market help the company to grow the business at the global level. it help the organisation to
introduce the product in the new market which help them to gain the new customer and also help
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to grow the business in the new market. When company enter in the new market it have the
benefits of the increase the life cycle of the product and also improve the customer range of the
product. Company has also benefits of the boost the value of the business by entering in the new
market. On other hand Banerjee, (2017) argued that entering into new market create tough
situation for business because there ae high chances of failure. As firm is unfamiliar with
Newmarket hence there are high chaces of getting failed in this market.
According to Cortimigli, Ghezzi and Frank, (2016) Direct exporting known as the selling
directly to the market. In this strategy company sell their there product in other country with the
help of agents. Company export their product to the agent and then agent sell there product in the
market. Franchising is the other strategy which is used by the organisation to enter in the new
market. In this strategy company gives the franchise to the local person of the country and they
use the name of the company and start the business. It help the company to start and grow the
business in new market without taking the risk. Partnership is also a strategy for entering in the
new market. In this strategy company make the partnership with the local company of the market
which help them to sell the product with the trust of the partner company. This is the best way to
enter in the new market it help them to take less risk and also help to grow fast in the new
market. Asper the view of Banerjee, (2017) joint venture is the great strategy because it supports
business sin entering into new market easily and know more about local market. This will
increase chancs of success for business unit. But before entering into new market through joint
venture entity has to ensure the potential of the firm with whom it want joint venture
Significance :
by using this strategies company has the benefits for entering in the new market and also
help to enter in the global market with out taking the risk and maximize the chances of the profits
and growth of the company (Chaffey and Ellis-Chadwick, 2019). When companies not apply
these strategies for entering in the new market then then faces the issue
collaboration ,transportation etc. which impact on the growth of the company in the new market
and increase the chances of the failure of the company in the global market. Market entry
strategies help the company to avoid or create less chance of the failure in the new market.
Rationale:
the main reason of choosing this topic, strategies for company to entering in the new
market is a interesting topic and there is good availability of the data in regarding this topic
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which is help to conduct the research in this topic and also this is topic is more popular in the
present time. Each and every company trying to expand their business in the global level and
also applying the strategies to enter in the new market and help the companies to enter in the new
market with the help of strategies . That's we chosen this topic for the research.
Time plan:
W1 W2 W3 W4 W5 W6 W7 W8 W9 W10 W11 W12 W13 W14 W15 W16 W1718181918 19 20
Selection
of topic
Framing
aim
Framing
objectives
Developing
understanding
about
topic
Gathering
literature
on
same topic
Framing
questionnaire
Data
collection
Framing
graph
Interpretation of
data
Framing
conclusion
Drawing
recommendations
RESEARCH SPECIFICATION
For conducting this research there are several methods and philosophies used. The
research philosophy used to conduct this research was Interpretivism philosophy which helped to
conduct this research. The approach used in this research was inductive approach which is based
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on actual facts and figures that helps in determining the actual consumer behaviour for entering
into the new market. For conducting a research it needs to be use a research design, in this
research disruptive research is being used. For data collection of this research. Researcher has
used both the methods of primary method and secondary method of collecting the data, and
random sampling method is being used for the questionnaire and 20 samples are being taken for
this research. For analysing the data of the present research thematic analysis method is being
used by the researcher. Lastly this research have the declaration that this research is being done
originally and it does not involve any copied data from anywhere else.
RESEARCH PROJECT
RESEARCH METHODOLOGY
It can be referred as the process which is being used to collect the data and information
for the purpose of making decisions in a business. Research methodology can be defined as it is a
significant plan for the purpose of conducting research. Researchers draw a wide variety of
qualitative and quantitative methods of research which includes participant observations, survey
research, experiments and secondary data (Research Methodology, 2019). Qualitative method is
being used with the aim to complete, detailed description of the observations that consist of the
context of circumstances and events(Ørngreen and Levinsen, 2017).
Research method includes majorly three types that are the experiments, survey research
and participant observation. An experiment is a research method for the purpose of investigating
cause and effects under conditions which are highly controlled. For conducting an experiment,
researchers usually test a hypothesis. A survey research is a research which is being carried out
by a survey being conducted by the researcher by taking samples and observing their point of
view by conducting a survey research. Participant observation is also a kind of research method
in which researcher spend some period of time with the people in order to observe the routine
activities which are being done by the people(Cope, 2015).
There are different tools and techniques which are being used to carry out the research
that includes research philosophy, sampling, research approach, research design, data collection,
data analysis and ethical consideration.
 Research Philosophy: Research philosophy refers to the belief about the way in which the
data about the phenomenon can be gathered, used and analysed. It can be known as the
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methods and modes which are being used for the purpose of collecting information by a
researcher. The research philosophies can be classified majorly into four categories which
includes Pragmatism, Realism, Interpretivism and Positivism. Pragmatism is a research
philosophy in which questions are the most important determinant of research
philosophy. It can combine both the approaches that are Interpretivism and positivism
positions within the scope of a single research as per the nature of the research questions.
Realism research philosophy focuses on the idea of independence reality from the human
mind. It is based on the assumption of the scientific approach for the development of
knowledge. Positivism is a philosophical theory where knowledge is based on natural
phenomena with their properties and relations(Antwi and Hamza, 2015). It focuses on
hypothesis formulation for the researching of the topic. Interpretivism philosophy focuses
on qualitative aspects which involves implementation of theories and models. It is a
method which is being used for accumulation of facts and figures which are relating to
human tendency helping in carrying out actual facts and figures. In order to conduct
present report Interpretivism is being used for carrying out the research for entering into
new market by gaining the knowledge and requirement of the products in the new
market.
 Research Methods: Their are majorly two types of research methods which includes
qualitative method and quantitative method. Qualitative research is used to uncover
trends in the thoughts and opinions by diving deeper into the problems. It is method
which uses individual interview, participation and interviews of samples that are being
collected by researcher, which is based on actual facts and figures(Gombert and et.al.,
2017). Whereas Quantitative data is used to quantify the issues by generating numerical
data or the data which can be transformed into usable statistics. In the present research,
qualitative method is being used to conduct the research.
 Research design: There are basically three types of research designs which includes
casual research, exploratory research and descriptive research which are involved in
research designs from which researches are being conducted. Disruptive research is a
research which is being conducted with the studies of characteristics of the populations
that involves several techniques which consist of observation method, case study and
survey analysis rather than formulation of hypothesis. Casual research can be known as
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the investigation of cause and effect relationship, there are basically two methods to
carry out casual research which are experimentation and statistical research. Exploratory
research can be determined as the research which is aiming to provide insights into an
understanding of the problems that are being faced by the researcher. In order to design
this research, researcher has used disruptive research as it is based on actual facts and
figures and prevent hypothesis(Gabriel, 2015).
 Research Approach: It is necessary for an organisation to determine the correct approach
in which research has to be conducted. Research approach can be classified basically into
two approaches that are inductive approach and deductive approach. Deductive approach
can be referred to a technique where researcher has used hypothesis for conducting the
research which is being implemented on such reports which are being involved with the
theory of positivism. Whereas inductive approach is a approach which is involved in
implementation of models rather than use of hypothesis for conducting the research. This
is being used when interpretive philosophy is involved as both are based on actual facts
and figures. Here, the researcher has involved in actual facts and figures rather than
creating hypothesis, which shows that present research involves inductive approach for
conducting the research and determining the strategies to enter into new
market(Abdallah, Lusiani and Langley, 2019).
 Sampling: It refers to the process in which samples are being taken for conducting the
research from the population can be known as sampling. It must be done by researcher in
a precise manner for the purpose of analysing correct conclusions and findings. There are
several sampling methods which are used to conduct a research which includes
systematic sampling, clustered sampling, quota sampling, snowball sampling and random
sampling. In the present research random sampling method is being used to conduct the
research where this method includes involvement of samples which are taken randomly
which prevents chance of bias and it doesn't have any criteria for the samples that can be
chosen randomly for conducting the research. In the present research there are 20 samples
which are being used for conducting the research. This will help in determining the best
strategies to enter into a new market(Basias and Pollalis, 2018).
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 Data Collection: It is the major part of research and play a vital role in conducting the
research. While conducting a research, a researcher must consider those facts and figures
which are relevant for carrying out the research and formulate proper conclusions and
findings. The data which is collected by the researcher must be relevant and meaningful
so that research can be conducted easily and conclusions and objectives or the research
are relevant(Ørngreen and Levinsen, 2017). There are majorly two sources for collecting
the data that can be classified as primary method and secondary method. Primary method
of data collection consist of all the relevant data that is being generated by the researcher
himself ,which makes the data more relevant and actual as it involved interaction with the
sample consumers that are being selected by the researcher. For the collection of primary
data there are few methods that are used which includes interview, questionnaire, etc.
Whereas secondary method of data collection where the study of the data is being done
which is already existing and analysed by someone else in past. This data is already being
researched before and that data is being researched which is already being determined
earlier and which is relevant for the research. It consist of data which can be determined
by the researcher from books, journals and websites that are relevant for the research. For
the present research, researcher has used both the methods for conducting the research as
both the methods are helping for gathering the relevant data for the research(Cope, 2015).
 Data Analysis: After collecting all the relevant data, researcher has the responsibility to
analyse the data which is being collected by primary and secondary methods of data
collection. It is the major part for conducting a research as for the perfect conclusion of
the research, a researcher has to interpret and analyse the data carefully in such a manner
that the research can be concluded relevantly. There are several techniques for analysing
the data where researcher has used thematic analysis method for making the research
presentation in a more effective manner. Thematic analysis is a method which includes
the formulation of different themes for the purpose of analysing information which
collected, by breaking down into different parts for building up tables and charts for
interpretation that facilitates in forming conclusions and recommendations. This helped
the researcher in concluding the right strategies which can be used by an organisation in
order to enter into a new market(Antwi and Hamza, 2015).
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 Ethical consideration: It is the most crucial element for carrying out the present research
by which the impact can be determined about the entry in new markets by analysing the
consumer behaviour in the targeted markets by an organisation. It also involves a
declaration which consist of the researcher has not forced the samples to speak on a
particular topic or has not forced to prioritize any one factor over any other. Lastly it have
the declaration that the research is being done originally and it doesn't involve any copied
data from anywhere else(Gombert and et.al., 2017).
DATA ANALYSES
Theme 1: working length of company of operating in market
OPTIONS FREQUENCY PERCENTAGE
0-5 year 1 5.00%
6-10 Year 1 5.00%
More than 15 year 18 90.00%
5.00%
5.00%
90.00%
0-5 year
6-10 year
More than 15 year
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Interpretation: from the above table it is identified that 18 out of 20 or 90% respondents have
viewed that company is operating in market from more than 15 years. That shows that company
working in the market with the good strategies which help them to maintain in the market with
long time of period and also providing the same quality product at the regular basis which help
them to maintain the market value for the long time . Company check their all service at the
regular basis which help them to maintain in the market for the long time period. They also
thinks that company take the feedback at the regular basis and also check the quality of product
on the time and provide the existing offers in regular basis which help them to stay in market.
This help the company to stay in the market from more than 15 years.
Theme 2: major factor that influence decision of entering into new market
OPTIONS FREQUENCY PERCENTAGE
Sources of supply 3 15.00%
Availability of capital 5 25.00%
Production cost 10 50.00%
Government regulation 2 10.00%
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