McDonald's Global Expansion in Emerging Markets: The Case of Zimbabwe

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RESEARCH PROPOSAL

TABLE OF CONTENTS
Research proposal............................................................................................................................1
Research introduction and title....................................................................................................1
Aim and objectives of the research..............................................................................................1
Research Questions......................................................................................................................2
Research Rationale......................................................................................................................2
Literature review..........................................................................................................................3
Research Methods........................................................................................................................5
References........................................................................................................................................7

Research proposal
Research introduction and title
The whole study is based on identifying the impact of globalisation in the business expansion of
the brand in an emerging market. The research proposal is connected with the globalisation
impact on the entity of business in respect of the labour mitigation, production increase, raise in
trade, expansion of brands in the global market and direct investment. The research will focus on
business expansion with globalisation along with the benefits and challenges faced by the
multinational brand when they plan to expand their business in an emerging market (Reijonen et
al., 2015). The current research proposal will discuss the business expansion of McDonald’s new
outlet in the emerging market like- Zimbabwe.
Aim and objectives of the research
Research aim: The research aim is related to analyse the globalisation impact and implications
faced by the McDonald’s when they expand their fast food outlet in Zimbabwe as an emerging
market.
Research objectives: The objectives of the research are based on the set research aim so that
deep study must be conducted as per the objectives:
 The objective is to analyze the implications of globalisation on the free trade to any
another country.
 The objective is also to examine the implications of globalisation on the McDonald’s by
involving different types of factors.
 The objective of research is also related to identify the benefits achieved by McDonald’s
when they expand their new fast food outlet in Zimbabwe.
 The research objective is also to deeply review some globalisation challenges and the
market entry which is faced by McDonald’s and its use within the emerging market.
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Research Questions
The research questions are based on the research topic so that proper analysis on the
globalisation impact will be analyzed. Following are the research questions:
1. What type of benefits and challenges and faced by McDonald’s when they expand their
business in the emerging market by globalisation policies?
2. Why the new entry strategy is required when multinational brand want to entry in the
emerging market like- Zimbabwe because of the globalisation?
3. Discuss some main factors related to the globalisation which need to be considered by
McDonald’s while expanding their brand in the market?
4. What is the pressure faced by McDonald’s due to globalisation for reducing the prices of
product while capturing any new place in the emerging market?
Research Rationale
The topic of the study is related to understand the benefits along with challenges faced by the
organisation while entering into the new emerging market due to the globalisation period. The
globalisation covers various opportunities that are attained by multinational organisations,
countries, customers, stakeholders and employees (Bereznoi, 2015). The globalisation concept is
very important so that expectations of the customers can be meet by expanding the business in a
new market. The globalisation impact also supports McDonald’s for their new fast food outlet
expansion when they enter in the new market of Zimbabwe, and for this, they need to use some
new strategies which satisfy the customers of Zimbabwe. Some of the business approaches and
models will also be discussed in the research as per the needs of the emerging market.
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Literature review
Globalisation
As per Colander (2017), globalisation is considered as the procedure related to the
communication and integration between the organizations, government and individual. The
globalisation also helped the business at the global level for their business expansion through
new strategies like- partnerships, joint venture and sharing assets. The globalisation factors also
supported the business such as- McDonald’s to increase their worldwide economic standard. The
globalization factors are- the international level of brand emergence, the free structure of trade
experience, the result of direct investment in foreign, offshoring production enhancement and
easiness in labour recruitment. By considering these factors, the McDonald’s multinational
organisation can make their business expansion plan so that they can overcome the challenges
which are involved in their business strategies and model of McDonald’s.
Newmarket entry strategy
As per Michie (2017), different types of strategies can be used by the multinational organizations
while entering in the new market such as- contract manufacturing, exporting, mergers &
acquisitions, joint venture, countertrade, franchising, exporting and manufacturing facilities. For
McDonald’s business expansion it is important for the organization to use joint venture or
mergers & acquisitions strategy while entering in the Zimbabwe new emerging market. These
strategies will help the organization to achieve various benefits in respect of shared resources and
strategies to overcome the risk. With the help of the high brand power, it becomes easy for the
multinational brands to get proper and effective support from the government and their
customers in the international market.
Impact of globalisation on the multinational organization
As per Westerlund et al., (2017), the increasing globalisation has created major impacts on the
international market due to the trade activities because of the government policies modifications
within the emerging market like- Zimbabwe. The government also reduced some international
barriers for promoting their products and services free trades worldwide. The globalisation also
created a new direction for the organizations along with the new opportunities through which
they can attract customers through their effective advertisement, production and marketing
department. Due to the globalisation, the competition in the market also increases and because of
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this almost every multinational organization wants to explore the international market in
Zimbabwe.
Apart from this, increase in the McDonald’s activities in Zimbabwe is also beneficial for the
organization because they will get labour on low cost as compared to other countries which help
McDonald’s to manage their economic scale. According to Bereznoi (2015), due to the business
expansion not only McDonald’s will achieve high growth but also provide high employment
opportunities to the Zimbabwe local people. The connectivity of market share and profit with the
globalisation also cover requirement of funds for investment so that they can achieve expected
growth. FDI help plays an important role in the global business as it supports the new technology
use in the emerging market. The role of government within the emerging market of the host
country helps to support the training and development opportunities of the fresh people which
increase the technological factor within Zimbabwe.
Globalisation challenges in the emerging market
As per Verhoef (2018), globalisation period help in the sharing of resources and culture of every
country by applying free policies of trade. Sometimes it becomes critical for the organization to
adopt the culture and resources of the emerging market and it creates challenges for the
organization to establish their position in the host countries. It is also challenging for
McDonald’s to understand the taste and preferences of the Zimbabwe local people to meet their
needs. Understanding of Zimbabwe local language also become a barrier for McDonald’s for
expanding their business.
To overcome this type of challenge, it becomes essential for McDonald’s to improve their
communication channel with the Zimbabwe local people. According to Morrison (2015), during
business expansion of the multinational brand within emerging market also place some negative
influence on employment level, and that creates labour mitigation issues. To reduce such type of
challenges and barriers, it becomes essential for McDonald’s to conduct market research and
understand the taste and preferences of the Zimbabwe people. This will help them to meet their
expectations and achieve high growth and reputation in the new market.
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Research Methods
Research type: Quantitative research will be used by the researcher which gives practical and
numerical information in respect of the research topic. The type of research collects fresh
information in which they avoid the biased nature (Lewis, 2015). Qualitative research can also be
used by collecting information from books and journals.
Research approach: Deductive approach will be used for this research as it helps to achieve a
better understanding of the globalisation topic.
Sampling technique: Simply random sampling technique can be used by the researcher to select
the sample size. 50 size of the sample is selected for this research in which their prior permission
will also be taken from the e-mails. This technique is selected because this will provide an
accurate result and avoid the biased issues (Etikan et al., 2016).
Data collection method: Primary and secondary are the two data collection methods, but for this
research, the primary method is selected to get fresh information. The questionnaire survey is
prepared to get a quantitative result with primary data.
Data analysis method: Data analysis method provides information through a questionnaire that
is collected from the selected respondents. Graphical presentation will be provided by using MS
Excel to analyze the data (Schabenberger and Gotway, 2017).
Resource and cost planning: For this research project the budget is also estimated such as-
$25000 in which all the essential resources are covered. The major resources required to carry
out this research are- researcher hiring, computer system, internet, tools and techniques and
software.
Research design: The methodologies set is accumulated which can be used to collect the data
from the variable measures. For this research, the exploratory design is used to meet the aims and
objectives effectively (Flick, 2015).
Ethical issues: It is essential for the researcher to maintain their polite attitude with their
respondents while communicating with them and do not force them to give the answer and avoid
the hurtful questions.
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Time scale:
Research
activities/weeks
1 2 3 4 5 6 7 8
Develop research
topic
Set research
questions
Collect primary
data
Conduct data
analysis by using
quantitative
approach
Conduct research
findings and
interpretation
Analyze final
result
Review and Data
assessment
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References
Books and Journals
 Bereznoi, A., 2015. Business model innovation in corporate competitive
strategy. Problems of Economic Transition, 57(8), pp.14-33.
 Colander, D., 2017. Globalisation and Economics. In Economics of Globalisation (pp.
75-84). Routledge.
 Etikan, I., Musa, S.A. and Alkassim, R.S., 2016. Comparison of convenience sampling
and purposive sampling. American Journal of Theoretical and Applied Statistics, 5(1),
pp.1-4.
 Flick, U., 2015. Introducing research methodology: A beginner's guide to doing a
research project. Sage.
 Iweka, H., Babajide, A.A. and Olokoyo, F.O., 2016. Dynamics of Small Business in an
Emerging Market: Challenges and Opportunities.
 Lewis, S., 2015. Qualitative inquiry and research design: Choosing among five
approaches. Health promotion practice, 16(4), pp.473-475.
 Michie, J., 2017. Advanced introduction to Globalisation. Edward Elgar Publishing.
 Morrison, J., 2015. Business ethics: New challenges in a globalised world. Macmillan
International Higher Education.
 Reijonen, H., Hirvonen, S., Nagy, G., Laukkanen, T. and Gabrielsson, M., 2015. The
impact of entrepreneurial orientation on B2B branding and business growth in emerging
markets. Industrial Marketing Management, 51, pp.35-46.
 Schabenberger, O. and Gotway, C.A., 2017. Statistical methods for spatial data analysis.
CRC press.
 Verhoef, G., 2018. Latecomer challenge: African Multinationals from the periphery.
In Globalization. IntechOpen.
 Westerlund, M., Isabelle, D.A., Rajala, R. and Leminen, S., 2017. Networks, business
models, and competitiveness in small Finnish firms. International Journal of Business
and Globalisation, 18(1), pp.9-26.
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