Impact of MNCs on Local Businesses in Emerging Markets Research

This research project investigates the impact of multinational companies (MNCs) on the survival and growth of local businesses in emerging markets, specifically focusing on the food and beverage industry in India. The study employs a qualitative research methodology, including interviews with 30 managers from local restaurants. The report explores the research methodology, including research type, approach, philosophies, design, sampling, data collection (using questionnaires), and data analysis techniques. The findings reveal that the emergence of global brands has significantly impacted the survival and growth of local businesses, with competition intensifying due to globalization. Key themes include the adoption of market penetration and diversification strategies, the perception of government support for MNCs as a threat, and the attraction of customers to MNCs. The research concludes with recommendations for local businesses to compete effectively, emphasizing the need for strategic adaptation and innovation in the face of global competition.

RESEARCH
PROJECT
(PART 2)

EXECUTIVE SUMMARY
This present research work is based on the impact of Multinational Companies on the survival
and growth of local businesses in merging market. The research has been conducted for
analysing the impact of MNC on local market and companies in emerging market as the MNC
holds higher variety and greater offers which attracts the customer in large and somewhere affect
the growth if the local market business.
Market penetration is one of the strategy which helps local companies in surviving in the
market for long which means focusing on selling the existing product into existing market by
adopting different ways to promote the products and gaining a higher share of the market. It has
been concluded that local businesses in emerging market is influenced by the emergence of
global brands of multinational corporations. Multinational corporation are providing goods and
services at low cost by which they are gaining the attention of huge audience that is affecting the
profit of local businesses in negative way.

TABLE OF CONTENTS
EXECUTIVE SUMMARY ............................................................................................................2
TOPIC:.............................................................................................................................................4
RESEARCH METHODOLOGY ....................................................................................................4
Introduction:................................................................................................................................4
Research Type:............................................................................................................................4
Research Approach:....................................................................................................................4
Research Philosophies.................................................................................................................5
Research Design:.........................................................................................................................5
Sampling:....................................................................................................................................6
Data Collection:..........................................................................................................................6
Data Analysis:.............................................................................................................................6
FINDINGS.......................................................................................................................................6
DISCUSSION................................................................................................................................16
CONCLUSION..............................................................................................................................20
RECOMMENDATIONS...............................................................................................................20
REFLECTION...............................................................................................................................21
REFERENCES..............................................................................................................................23

TOPIC:
Competing with multinational companies and survival strategies for local companies in
emerging markets.
RESEARCH METHODOLOGY
Introduction:
This is one of the most important chapter of the research project as it is not possible to
complete the research study without selecting research methods. It is the process that is used to
collect information and data for the purpose of making business decision (Kumar, 2019). The
methodology may include interview, publication research, survey and other research techniques.
This present research is completely based on qualitative methods. Researcher has evaluated each
and every methods of research methodologies before selecting and has used most suitable
technique for evaluation.
Research Type:
This is the fundamental part of the research as researcher has to select the type or
methods of research that is used in entire research study. Research is the careful consideration of
study regarding a particular concern. However, research are classified into two types which are
qualitative and quantitative. The data or information that takes the form of language words,
images, feeling or any non-numerical figures are called as qualitative methods. Qualitative
research supports in-depth understanding of situation, knowledge and because of time constraints
it is basically includes small sample size of respondents. Apart from this, the data or information
that takes the form of numeric or statical figures are called as quantitative methods. Basically the
sample size is very large in quantitative methods (Mackey and Gass, 2015). In this present
research, scholar has opted qualitative methods to determine the impact of Multinational
Companies on the survival and growth of local businesses in emerging market. The reason for
selecting qualitative methods because of study is based on small sample.
Research Approach:
This is another most important element of research methodology. Research approach is
the plan and process which includes the steps of wide assumption in order to detailed methods of
data collection, analysis and interpretation. However, there are mainly two approaches which are
Inductive and Deductive. The methods which are used to analyse the phenomenon that is
observed are called as Inductive approach. This approach is mainly suitable for the qualitative

research. Apart from this, the method which are used to verify the phenomenon that is observed
are called as deductive approach. This approach is mainly suitable for quantitative research. In
this present research, scholar has opted inductive research approach to determine the impact of
Multinational Companies on the survival and growth of local businesses in emerging market
(Taylor, Bogdan and DeVault, 2015). The reason fr selecting inductive approach is that
inductive approach is associated wit the qualitative research.
Research Philosophies
Research Philosophy is a belief about the way in which data about a phenomenon must
be gathered, analyse and used. However, there are mainly two types of research philosophies
which are positivism and Interpretivism. Positivism believes that reality is stable and the
information derives sensory experience which in interpreted through reason and logic. It is
philosophy is mainly associated with quantitative research. Apart from this, the type of
philosophy that incudes interest of human into the study is called as Interpretivism philology
(Flick, 2015). This philosophy is mainly associated with qualitative research and it studies small
sample. In this present research, scholar has opted Interpretivism philology to determine the
impact of Multinational Companies on the survival and growth of local businesses in emerging
market. The reason for choosing Interpretivism philology is that it is best and suitable for the
research which is based on qualitative methods.
Research Design:
This is also one of the most important element of the study because it is the best way to
integrate several components of the study in a logical and consistent way. Further, it also makes
sure that the research questions are addresses in a effective manner. However, research designs
are classified in tow types, which are experimental and descriptive. The scientific approach is
called as experimental research in which some variables are kept on constant scale whereas other
variables are being evaluated. It is completely associated with the quantitative research. Apart
from this, descriptive research design is the method that involves observing as well as describing
the action of a subject without influencing it any way (Alvesson and Sköldberg, 2017). In this
preset research, scholar has opted descriptive research design to determine the impact of
Multinational Companies on the survival and growth of local businesses in emerging market.
The reason for choosing this topic is that descriptive methods is the best suitable design in
qualitative research.

Sampling:
Sampling is very essential for any piece of research especially when research study is
qualitative. Sampling is the small part of population. It is essential for researcher to select the
size of sampling because of lack of resources, time and money. Probabilistic and Non-
probabilistic are tow main classification of sampling. Technique in which representatives have
known chances of being chosen in the sample is called as probabilistic sampling. Whereas, in
non-probabilistic it is opposite of probabilistic sampling (Fletcher, 2017). Researcher has
decided to collect information about the impact of multinational Companies on the survival and
growth of local restaurant from 30 managers of different local restaurants in emerging market
(India). Researcher has selected 30 managers of different restaurants, so that they can identify the
actual impact by taking there views.
Data Collection:
Once the type and size of sample is selected, scholar has to look over for data collection.
The process or technique used to collect information or data is called as data collection Primary
and Secondary are two main techniques of data collection (Smith, 2015). In this present research,
researcher has collected data from primary sources via questionnaire. It is because, information
collected from primary information is much more reliable, valid and fresh than compare to
secondary sources (government publication, journals, books etc.).
Data Analysis:
Data Analysis plays a critical role in order to reach end conclusion of the research. It is
the techniques applied for cleaning, transforming and moulding of data into meaningful
information because the data collected by researcher is unprocessed or raw. Qualitative and
Quantitative methods are two main classification of data analysis (Wiek and Lang, 2016). The
data which is analysed by using SPSS tools, software and spread sheet is called quantitative
analysis whereas the information which is analysed by observed phenomenon or thematic
methods are called as qualitative analysis. In this present research, scholar has opted qualitative
analysis and has presented the data via graph, tables and chats.

FINDINGS
QUESTIONNAIRE
Type of Respondents: 30 managers of different local restaurants.
Name of Respondents:
Age:
Gender:
1. For how long you are running the businesses in the market?
 3 to 5 years
 5 to 8 years
 8 to 10 years
 10 years and above
2. What is the concept of your restaurant?
 Fast Casuals
 Family style
 Fine Dining
 Fast Food
 Others
3. Did you think with the emergence of global brands of MNC's, the survival and growth of
your business is affected?
 Yes
 May Be
 No
4. Do you feel that with the rise of globalisation you have brought lots of changes in process,
techniques and structure of firm?
 Highly Agree
 Agree
 Neutral
 Highly Disagree
 Disagree
5. What are the changes you have to brought with the rise of globalisation?

 Technological Change
 Change in workforce
 Change in internal procedures
 Others
6. Did you think competition is highly increases after the globalisation?
 Highly Agree
 Agree
 Neutral
 Highly Disagree
 Disagree
7. What are the growth strategies you adopt for overcoming the negative impact of MNC?
Market Penetration
Market Development
Product Development
Diversification
8. Accordion to you opinion, do you think the support of government to MNC's is creating
threat for local business?
 Yes
 No
 Not Sure
9. How MNC's are hindering the growth and survival of local businesses?
 Use of High-technologies
 Advance Products
 Offer better wages to labour
 All the above
10. Do you feel customers are highly attracting to products and services offered by MNC's.
 Yes
 No
 May be
11. According to you who are the biggest rivalry for the local businesses in food and beverage
industry ?

 McDonald
 KFC
 Pizza Heart
 Starbucks
Recommendations if any...
Theme 1: Maximum managers are involved in food and beverages business in the market for
last 5 to 8 years.
PARTICULARS MANAGERS
3 to 5 years 9
5 to 8 years 13
8 to 10 years 3
10 years and above 5
Theme 2: The large number of food concept are fast food restaurants.
PARTICULARS MANAGERS
Fast Casuals 5
3 to 5 years
5 to 8 years
8 to 10 years
10 years and above
0
2
4
6
8
10
12
14
MANAGERS

Family style 6
Fine Dining 7
Fast Food 10
Others 2
Theme 3: Yes, emergence of global brands of MNC's, the survival and growth of your
business is affected.
PARTICULARS MANAGERS
Yes 18
May Be 7
No 5
Fast CasualsFamily style Fine Dining Fast Food Others
0
1
2
3
4
5
6
7
8
9
10
MANAGERS

Theme 4: With the rise of globalisation you have brought lots of changes in process,
techniques and structure of firm.
PARTICULARS MANAGERS
Highly Agree 9
Agree 7
Neutral 3
Highly Disagree 6
Disagree 5
Yes
May Be
No

Theme 5: With the rise of globalisation, local businesses have to bring technological changes.
PARTICULARS MANAGERS
Technological Change 11
Change in workforce 5
Change in internal procedures 8
Others 6
Highly Agree
Agree
Neutral
Highly Disagree
Disagree