Multinational Companies Impact on Host Country Business Environments

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Unit 6 Managing a Successful Business
Project
“How do multinational companies impact the business environment of the host
destination a county, region and city?”
Student Name:
Student ID:
1

Table of Contents
LO2 Conduct small-scale research, data collection to generate knowledge (P5, M2)..............3
LO3 Present the project and communicate appropriate recommendations based on meaningful
conclusions drawn from the evidence findings and/or analysis. (P5, P6, M3)........................11
LO4 Reflect on the value gained from conducting the project and its usefulness to support
sustainable organisational performance (P7, M4)....................................................................22
Reference List..........................................................................................................................25
Appendices...............................................................................................................................26
Appendix 1...........................................................................................................................26
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LO2 Conduct small-scale research, data collection to generate knowledge
Secondary Research
The process of collecting data from the journals, articles or reports that have been published
before is known as secondary research.
Globalisation
The process that has aided people, organisations and governments all over the world to
interact as well as integrate with each other is known as globalisation. Globalisation is of
three kinds, namely, political globalisation, social globalisation and economic globalisation.
Globalisation is the result of a decrease in the rates of transportation of goods and
commodities across international borders (Wright, 2016). Globalisation has proved to be of
huge importance with respect to the foster of trade all over the world, transfer of technology
has boosted, industries have been restructured, innovation in the field of technology are
taking place, and the rate of growth of international companies have been stimulated
(Krugman, 2017).
Effect of globalisation on multinational companies
The advent of globalisation has to lead to the emergence of multinational organisations as it
has facilitated their access to fresh markets and the availability of labour at cheap rates.
Globalisation has aided the multination corporations to involve in partnership and improve
the quality of goods and services they provide by minimising the cost. It has resulted in
organisations to make investments in foreign countries by reducing the rates of tax. However,
globalisation has also lead to the emergence of issues with respect to the coordination among
its various activities (Alonso and Manuel, 2017). Globalisation has aided the organisations
not only to explore labours at cheap rates but also raw materials at cheap rates from various
nations. This has affected the revenue generation of the organisations favourably as the
operation cost of the organisations has reduced (McCann and Acs, 2015).
Effect of multinational countries on the business environment of a country
The multinational organisations aid the nations in which they are located in several ways as it
provides employment to the people of the country and assists to enhance the economic
infrastructure. Globalisation has aided the nations as it has improved the balance of
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payments, generated opportunities of employment, emerged to be a part of the revenue
generated by the government thus aiding the country to develop and grow (Gugler, 2017).
Globalisation has aided the nations to transfer technology, thereby enhancing the productivity
of not only the organisation but the country and its people as well. The multinational
organisations have also resulted in the enhancement of the reputation of the nations where
they are located; however; it has increased the uncertainty of those countries (Hobdari et al.,
2017).
Primary Data Research
Quantitative Data Collection
The process of collecting data that can be calculated by conducting surveys is termed as
quantitative data collection. This method of data collection involves the development of
close-ended questions. In order to gather measurable data, 100 customers of McDonald's
were surveyed such that the impact of the organisation on local restaurants can be figured out.
Q1. Which fast-food restaurant do you visit on a frequent basis?
Options Percentage of
responses
Number of
responses
Total number of
responses
Burger King 20 20 100
McDonald's 23 23 100
Dominos 20 20 100
Pizza Hut 15 15 100
KFC 10 10 100
Others 12 12 100
Table 1: Response obtained
Q2. What is your most preferable time for eating at McDonald's?
Options Percentage of
responses
Number of
responses
Total number of
responses
Breakfast 05 05 100
Lunch 23 23 100
Dinner 37 37 100
Snacks 15 15 100
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Desserts 20 20 100
Table 2: Response obtained
Q3. According to you, which promotional technique used by McDonald's is the most
effective?
Options Percentage of
responses
Number of
responses
Total number of
responses
Happy Meal 40 40 100
Lunch McValue 30 30 100
Set Meal 20 20 100
Desserts 10 10 100
Table 3: Response obtained
Q4. Which form of advertisement used by McDonald's attracted you to visit the
restaurant?
Options Percentage of
responses
Number of
responses
Total number of
responses
TV 30 30 100
Billboards 05 05 100
Internet 40 40 100
Posters 12 12 100
Magazines 04 04 100
Newspaper 08 08 100
Others 01 01 100
Table 4: Response obtained
Q5. On what basis do you choose McDonald's to have food?
Options Percentage of
responses
Number of
responses
Total number of
responses
Gifts 23 23 100
Reasonable rate 25 25 100
Good ambience 22 22 100
Delicious cuisine 20 20 100
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Wi-Fi 02 02 100
Location 08 08 100
Table 5: Response obtained
Q6. Which factor influences you to choose McDonald's?
Options Percentage of
responses
Number of
responses
Total number of
responses
Quick service 20 20 100
Good taste 10 10 100
Good advertising 40 40 100
Good packaging 30 30 100
Table 6: Response obtained
Q7. On what factor do you choose a restaurant?
Options Percentage of
responses
Number of
responses
Total number of
responses
Quality of food 20 20 100
Nutrition 10 10 100
Price 30 30 100
Product variety 15 15 100
Quick service 20 20 100
Location 05 05 100
Table 7: Response obtained
Q8. What is the level of satisfaction you derived the last time you visited McDonald's?
Options Percentage of
responses
Number of
responses
Total number of
responses
Very poor 07 07 100
Poor 23 23 100
Good 52 52 100
Very Good 13 13 100
Excellent 05 05 100
Table 8: Response obtained
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Qualitative Data Collection
The process of collection data by scheduling interviews is a primary research method.
However, the data gathered through this means cannot be calculated; thus, it is known as a
qualitative method of data collection. In order to collect qualitative data collection, open-
ended questions are developed. Two managers of McDonald's were interviewed to gain
further information.
Q1. What are your plans with respect to the enhancement of services offered by
McDonald's in future?
Q2. Which factors do you consider to serve the customers in a better way?
Reliability and validity
The data so obtained from the investigation is valid and reliable only with respect to the
country in the Barking, England. The data is not applicable to other countries; hence, it
cannot be used for investigating and concluding the effectiveness of McDonald's in places
other than the Barking, England.
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LO3 Present the project and communicate appropriate recommendations based on
meaningful conclusions drawn from the evidence findings and/or analysis. (P5, P6, M3)
Q1. Which fast-food restaurant do you visit on a frequent basis?
Burger King McDonalds Dominos Pizza Hut KFC Others
20
23
20
15
10
12
Percentage of responses
Figure 1: Response obtained
Analysis
The response obtained signifies that most of the customers prefer to visit McDonald's in the
first place with Burger King and Dominos in the second place. Fifteen percent of the
candidates like to visit Pizza Hut, and only 12% of the participants prefer to visit other fast-
food restaurants. Thus, it can be stated that in order to be successful as a fast-food restaurant
in the Barking, England the organisation has to face a tough competition from the fast-food
organisations that has a brand name in the market.
Q2. What is your most preferable time for eating at McDonald's?
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Breakfast Lunch Dinner Snacks Desserts
5
23
37
15
20
Percentage of responses
Figure 2: Response obtained
Analysis
The graph signifies that the customers like to have dinner in the organisation McDonald's as
37% of the respondents voted for it and only 5% of the respondents opted for breakfast,
therefore, it is required that the restaurant in its initial phase must try to attract more
customers for breakfast by offering quality and tasty food at reasonable prices. This will aid
the organisation to increase its customer base slowly, thereby slowly trying other schemes to
attract more customers for lunch, snacks, dinner and desserts.
Q3. According to you, which promotional technique used by McDonald's is the most
effective?
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40%
30%
20%
10%
Percentage of responses
Happy Meal Lunch McValue Set Meal Desserts
Figure 3: Response obtained
Analysis
The response obtained signifies that Happy Meal is the best promotional technique used by
the organisation McDonalds as 40% of the participants voted for the same. Thirty percent of
the candidates voted for Lunch McValue to be the technique of promotion that attracted
them. Therefore, it is required that the restaurant that will be established needs to adopt such
promotional techniques so that it can increase its customer base.
Q4. Which form of advertisement used by McDonald's attracted you to visit the
restaurant?
10

TV
Billboards
Internet
Posters
Magazines
Newspaper
Others
30
5
40
12
4
8
1
Percentage of responses
Figure 4: Response obtained
Analysis
The response obtained signifies that the internet was the most prominent mode of
advertisement that attracted the customers towards McDonald's as 40% of the participants
voted for it. The TV was voted by 30% of the participants; thus, it could be ranked in the
second number. It can be stated that the restaurant that will be established must use the
internet in order to advertise and promote its products and services and increase its customer
base.
Q5. On what basis do you choose McDonald's to have food?
11

Gifts
Reasonable rate
Good ambience
Delicious cuisine
Wi-Fi
Location
23
25
22
20
2
8
Percentage of responses
Figure 5: Response obtained
Analysis
The response so obtained signifies that the customers choose McDonald's because the
restaurant charges reasonable prices from its customers for the food it offers. Twenty-five
percent of the participants voted for a reasonable rate, 22% of the respondents voted for good
ambience, 23% of the participants voted for gifts while 20% of the respondents voted for
delicious cuisine. Only 8% of people voted for location, and 2% of them voted for its
location. Thus, it can be stated that the restaurant to be established needs to charge a
reasonable rate for its food and needs to innovate something like loyalty cards or discounts
instead of gifts so that it can flourish in the same way as McDonald's and make a strong
position in the market.
Q6. Which factor influences you to choose McDonald's?
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