Business Project: McDonald's Impact on New Restaurant Setups

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MANAGING A SUCCESSFUL BUSINESS PROJECT
An analysis to identify the impact of McDonald's on new restaurant setup in local community

Table of Contents
INTRODUCTION............................................................................................................................. 2
ACTIVITY 1- RESEARCH PROJECT MANAGEMENT PLAN.................................................................3
LO1.................................................................................................................................................3
Project Title................................................................................................................................3
Project Statement......................................................................................................................3
Project Aim and Objectives........................................................................................................3
The rationale of the research.....................................................................................................4
LITERATURE REVIEW......................................................................................................................5
Cost Objectives.......................................................................................................................... 7
Project Scope............................................................................................................................. 7
Included Scope...........................................................................................................................7
Excluded Scope.......................................................................................................................... 8
Timeframe and time management............................................................................................8
Quality Control...........................................................................................................................8
Communication Plan..................................................................................................................8
Risk Management...................................................................................................................... 9
Access........................................................................................................................................ 9
Resource Requirements.............................................................................................................9
Gantt chart (Time Schedule)....................................................................................................10
Work Breakdown Structure..................................................................................................... 11
REFERENCES.................................................................................................................................12
1

INTRODUCTION
Globalisation led organizations to expand and grow their business is not an only domestic
country but also in other countries as well. This has enabled the companies to become
multinational as it operates in different countries. Multinational companies invest their capital,
money, products and services on more than one country. These companies affect the local
community, regions destination and people in a different manner (Santangelo, 2018).
Multinational organizations can be advantageous for the host countries as it positively
influences the balance of payment, employment opportunities, sources of tax revenue,
technological transfer and improves the host countries' reputation while it can be
disadvantageous for the host countries in a certain manner such as it may have a negative
influence on environment, increases uncertainty, increase competition and create low skilled
employment, risks health and safety of locals, increases political pressure, and exports profit
and last influences social and cultures (Wiig and Kolstad, 2010).
This research project is based on a scenario in which a trainee business consultant from a
business consultancy firm is approached by a client that aims to open a new restaurant in a
local area. However, the client is required to identify the impact of McDonald's on its business
activities (Park and Ghauri, 2011). McDonald's is the largest fast-food corporation around the
world that serves a close to 68 million customers in more than 119 countries every day. It is the
most popular fast food chain that is available in almost every country around that world. The
business operations of McDonald's impact on the business activities of the local and traditional
business. Hence small scale research is carried out using both primary and secondary research
to understand the impact of McDonald's on the new restaurant set up in the local community.
2

ACTIVITY 1- RESEARCH PROJECT MANAGEMENT PLAN
LO1
Project Title
“An analysis to identify the impact of McDonald's on new restaurant set up in the local
community"
Project Statement
Globalisation ensured the growth and success of the business organizations but also at the
same time increased the competition and exploitation of the labour and environment of the
host countries. The entrance and business activities of the multinational companies affect the
local businesses of host countries in a negative and positive manner (Park and Ghauri, 2011). It
has become essential for local organizations to understand the impact of multinational
organizations on their business and operational activities. This research is conducted to
understand the impact of McDonald's on new restaurant set up in the local community.
Project Aim and Objectives
The research aims to identify the impact of McDonald's on new restaurant set up in the local
community. The research objectives are:
1. To identify the link between the role of McDonald's and new restaurant set up in the
local community
2. To ascertain the positive impact of McDonald's on new restaurant set up in the local
community
3. To explore the negative impact of McDonald's on new restaurant set up in the local
community
4. To recommend to the client regarding their setup of the new restaurant in the local
community
3

The rationale of the research
Due to globalisation, there is an increase in the expansion and growth of organizations from
one country to another. In today's time, the organizations have focused on expanding and
operating in different countries so as to be benefitted by the low cost of labour, materials and
so on. This entrance and operations of multinational organizations have affected the local
businesses and organization of host countries in both positive and negative manner (Meyer et
al., 2011). The presence of McDonald's in any organization affects different businesses of the
local community in a positive and negative manner. This makes it essential for the client to
carry out business research in order to identify the impact of McDonald's on new restaurant set
up in the local community.
4

LITERATURE REVIEW
This literature review was focused on collecting information and general understandings on the
impact of multinational corporations such as McDonald's on local business firms such as new
restaurant set up in a local community. This section is focused on collecting secondary data in
order to meet the research aim an objectives by reaching out to reliable outcome and
conclusion. Avarmaa et al (2011) conducted research with the aim to identify a systematic
difference in the capital structure formation of subsidiaries of multinational companies and of
local companies that operated in the Baltic States considering the time period between 2000
and 2008.
It revealed that the local companies are more leveraged by the use of intragroup equity
financing, higher profit retention and lower investment intensity than Multinational companies
whereas MNCs have better access to external financing than local companies resulting in
competitive advantage. It appeared that during the years of economic boom, local companies
have started to enhance their leverage under relaxed credit constraints which demonstrated its
greater susceptibility to hostile cyclic effects. Another study by Monge-González et al (2015)
was focused on the evaluation of policies as well as activities in relevant to dynamics of
information plus communications technology sector.
It considers the interaction between foreign multinational corporations as well as domestic ICT
firms in Costa Rica. The result represented a low level of linkage among the MNCs and domestic
companies in the information and communication technology sector. This linkage ultimately
results in few benefits. Little input is provided by domestic firms to MNCs. Public policies should
be defined by undertaking efforts and promote the linkages with ICT multinationals along with
other operating sectors such as aeronautics and medical accessories since they are also
important contributors to the Costa Rica economy.
Chang et al (2013) conducted a study to compare the performance of the local firms acquired
by the multinational organisations as well as continuing local entities. It helps in identifying the
foreign ownership effects. Difference-in-differences approach and propensity score matching
method were employed in this study to control for the inherence of the endogeneity problem
5

in the acquisition decisions of multinational firms. It was strongly evident that local firms were
comparably outperformed by local firms acquired by foreign multinational companies in China,
specifically when local target firms that have the higher absorptive capacity or has modernised
ownership structure, is acquired by a foreign firm.
Also, Mariotti et al (2015) analysed the role of spatial proximity in productivity spillovers from
foreign multinational companies to local manufacturing organizations. The database of foreign
affiliates that were located in Italy between 1999 and 2005 represented that the presences of
multinational enterprises benefit the local firms through backward as well as forward linkage. It
was revealed that there is a strong association of spillover effects with MNEs in knowledge-
intensive business services as well as utilities. Also, productivity spillovers are positively affected
by co-locations.
Technology and knowledge transfer (T&K transfer) can be channelized by multinational
corporations and other foreign firms. There are various pieces of researches that are focused
on Technology and knowledge transfer through FDI. Also, these researches are drawn from Asia
and not Sub-Saharan Africa despite the increasing receipt of foreign investment. This article
empirically focuses on Ghanaian Construction industry to explore the potential of Technology
and knowledge transfer. A significant weakness in T&K transfer across the subsectors of the
industry as well as among the foreign and local firms was revealed in the findings.
Hence from the literature review of secondary data and sources, it can be summarised that
there is a strong relationship between the local and foreign firms. Both are highly impacted by
the operations and activities of each other.
6

Cost Objectives
The costs and expenses incurred by the researcher while carrying out the research project are
determined in this section. Earned value management technique is used to compare projected
expenses as well as actual expenses incurred in this project (Cuervo Cazurra, 2011).‐
Particulars Predicted costs (in £) Actual costs (in
£)
Payments to assistance
staff
£90 £100
Refreshments to
assistance staff
£60 £73
Travel and maintenance £80 £91
Stationery materials £70 £74
Secondary research
materials
£35 £22
IT networks, hardware
components and software
£190 £214
Vouchers to participants £50 £100
Other administrative
costs
£50 £56
Total £625 £730
Project Scope
Included Scope
The included scope of the research is to determine the impact of McDonald's on a new
restaurant to be set within the local community in an analytical and unbiased manner. This
research project comprises both qualitative as well as quantitative research methods. It
includes both primary and secondary research to discover the possible impacts of McDonald's
on the new business set up in the local community (Osabutey et al., 2014). A questionnaire
7

survey will be conducted within the focused group to draw a suitable conclusion for the
research project. It compares the new local restaurant set up with the already setup highly
popular McDonald's restaurant.
Excluded Scope
It does not include any other fast food company other than McDonald's. also, it does not
include any specific geographical location. It excludes the focus on any particular operational
activity within McDonald's or new restaurant setup. The reliability, as well as validity, is for a
limited time period as the responses and views of the participants may change at any given
point of time (Osabutey et al., 2014). It excludes the cultural and social factor in the research
project. The research project cannot be used for commercial purpose.
Timeframe and time management
The progress and growth of the research project was maintained and controlled by a Gantt
chart, work breakdown structure (Kumar, 2019). It requires 9 weeks of the time period to carry
the research starting from 21st January 2019 and ending on 31st March 2019.
Quality Control
Primary as well as secondary research will be included to identify the possible impact of
McDonald's on new restaurant set up in the local community. The quality and progress of each
activity of research were assured by the guidance and assistance of the project supervisor
(Neuman and Robson, 2014). Qualitative and quantitative research methods were included to
quantify the views and opinions of the participants from focused groups through a
questionnaire survey. It also considers the ethical considerations to perform research lawfully
and with no biasness.
Communication Plan
Regular liaison with project supervisor was maintained for their guidance as well as assistance
to meet the aims and objective of the research by generating reliable outcome as well as a
conclusion. Effective performance of primary research will be ensured by proper and clear
8

communication with the IT professionals and research experts (Palinkas et al., 2011). The
participants, general consumers who prefer to visit any eatery, were included, interacted and
explained the research details and ensured their privacy and also resolved their queries.
Risk Management
The unwillingness of the participants was the most critical risk faced during the process of the
research. The interest level of the participants was maintained by offering vouchers to them. A
questionnaire survey, as well as tables and charts from Ms-Excel, were some of the economic
and cost-effective tools used to maintain a projected budget. In order to maintain and manage
the time, Gantt chart and work breakdown structure is prepared and maintained to remain set
within guidelines and does not fall short of time (Neuman and Robson, 2014). Any unfamiliar or
unrelated tools and techniques or any research methodology will not be used in this research in
order to avoid any high-risk situation and impact the time and budget management resulting in
overspending or delay in research.
Access
The privacy and confidentiality will be maintained for every participant and also ensure that
their responses are saved and stored in a password-protected computer. The data can only be
accessed by the research or project supervisor (Neuman and Robson, 2014). Also, the research
project is strictly limited to academic purpose only.
Resource Requirements
The activities of the research can only be accomplished through human, financial and physical
resources. The budget for the research is projected by including costs and expenses required to
be incurred to successfully accomplish the research outcome (Kumar, 2019). Physical resources
comprise stationery materials, IT networks, hardware components and other technical
resources to collect as well as analyse primary data for the eligible outcome. Human resources
include the assistance staff, IT professionals and research experts to seek their support and
guidance in effectively performing the research. The project supervisor was asked for their
guidance and support to perform each activity of the research in an effective manner.
9

Gantt chart (Time Schedule)
devising aims and objectives of the research
forumlating a comprehensive project management plan
performing a small scale research
gathering and analysing the data
findings and discussion for the research
conclusion and recommendatiosn for the research
evaluation of performance and document project report
21-Jan 4-Feb 18-Feb 4-Mar 18-Mar 1-Apr 15-Apr
10

Work Breakdown Structure
Project
Name:
An analysis to identify the impact of McDonald's on new restaurant set up in the
local community
Project
Manager
:
<John Doe>
Date: [mm/dd/yyyy]
11
Deliverable Based
Example WBS
New Restaurant
(1) Research And
Devlopment
(1.1) Research
(1.1.1) Market
Reseach
(1.1.2) Vendor
Acquisition
(1.1.3) Site
Proposal Plan
(2) Procurement
(2.1) Purchase
(2.1.1) Location
Acquisition And
Business Registry
(2.1.2) Kitchen
Equipment
(3) Renovation
(3.1) Demolition
(3.2) Construction
And Repair
(3.3) Equipment
Installation
(4) Marketing
(4.1) Website
(4.2) Advertisement
(4.2.1) Radio, TV,
Newspaper
(5) Human
Resources
(5.1) Personnel
Acquisition
(5.2) Employee
Training Materials
(5.2.1) Employee
Training And Work
Scheduling