Research Project: Impact of Franchising on Tesco's Business in Romania

This research project investigates the impact of franchising on Tesco's business performance in Romania. The report begins with an introduction to globalization and its effect on the retail sector, highlighting the opportunities and challenges faced by companies like Tesco. It then outlines the research aims, objectives, and questions, focusing on how franchising influences business performance, the barriers to implementation, and alternative market entry strategies. A literature review explores the impact of globalization on Tesco's performance, the influence of franchising on business outcomes, and alternative strategies like joint ventures and innovation. The research methodology section details the research type (qualitative), design (descriptive), approach (inductive), philosophy (interpretivism), and data collection methods (primary and secondary). The report will analyze data using qualitative techniques and present findings using charts and graphs. The project aims to analyze the impact of franchising on business performance while operating business in Romania, and also suggests other strategies which can be adopted by TESCO to enter into market in Romania.

Research Project

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
LO 1 ................................................................................................................................................3
P1 Research proposal .................................................................................................................3
P2. Appropriate research methods for research Projects............................................................8
LO 2...............................................................................................................................................11
P3 Project management Plan ....................................................................................................11
P4. Appropriate tools for analysing the findings and data........................................................12
LO 3...............................................................................................................................................16
P5 communicating research outcome in appropriate manner for intended audience................16
LO 4 ..............................................................................................................................................24
P 6 Reflection ...........................................................................................................................24
P 7. Alternative research methodologies and lesson learnt ......................................................25
RECOMMENDATIONS...............................................................................................................26
REFERENCES..............................................................................................................................28

INTRODUCTION
Globalisation can be defined as the dispersion of the activities performed by companies. ,
It includes free movement of products or services, transfer of capital across nation. It has brought
drastic improvement in business environment. Rapid increase in the globalisation has given rise
to various concern issues. There are many opportunities for organisations operating business in
retail sector. Many of the firms in retail sector have adopted the globalisation strategy for
expanding their business. But by implementing the global expansion strategy many of the
companies in retail sector is facing issues in maintaining their performance in domestic market.
Few opportunities which has evolved includes flow of investment, increase in market share, sales
and profitability. Many companies are out of market, as they have failed to sustain business in
highly competitive business environment which is result of globalisation.
Franchising have taken place in the retail sector in order to provide an appropriate
response to the issues which has emerged due to globalisation. It has direct as well as significant
effect on the business plans and strategies of multinational companies. The present report also
provide the impact of franchising on TESCO and also provide deep information for using
Franchising as mode of market entry.
The research report focuses on analysing the effect of franchising market entering
strategy on the business performance of company in retail sector in context of TESCO. It is
basically a British multinational company. Study will highlight the business issues faced by
enterprise due to adopting the Franchising as a method of market entry. Assignment will
emphasize on analysing the implication of Franchising in context of business.
LO 1
P1 Research proposal
Aims and objectives :
Aim : To analyse the impact of franchising on business performance while operating business In
Romania – A case study of TESCO.
Objectives :
 To identify the impact of globalisation on the performance of TESCO in Romania.
 To examine the influence of franchising on business performance.
 To develop the understanding about barriers in the implementation of franchising in
Romania.

 To suggest other strategies which can be adopted by TESCO to enter into market in
Romania..
Research questions
 What is the impact globalisation on the performance of TESCO in Romania?
 How franchising influence the business performance?
 What are the barriers while implementing franchising in Romania.?
 What are the other issue which can be adopted by TESCO ?
Rationale of selecting the topic
As TESCO operate its business at global level and globalisation has led to the drastic
changes in business practices worldwide. As there are various mode through which the company
may enter into another country and major reason of the selecting this topic is, scholar wants to
identify the different mode of entry which help a business to operates at global level. Apart from
this, researcher also have interest to collect more information about this which helps to enhance
their knowledge. Scholar want to assist management in measuring the effectiveness of their
decision related to use of Franchising strategy for expanding business in Romania.
Literature review
Theme 1 Impact of globalisation on the performance of TESCO In Romania.
According to the view of Michael Geringer and DaCosta, (2014), globalisation has acted
as the driving factors which has forced firm to change their way of doing business.
Internationalisation has forced multinational companies to change their business policies,
strategies as well as plans. The author states that the there has been increase in the competition,
market certainty which has negative effect on the performance of organisation.
According to the perception of Dunning, (2016), globalisation has bough drastic change
in business environment which is effecting the business performance of global firm. In addition
to this, many of multinational enterprises in retail sector have to adopt new business model in
order to provide an appropriate response to the changes in business environment which has taken
place due to globalisation. The author perceives that due to continuous amendments of laws
business entity is facing issue in complying with norms because of which they have to face legal
issues. There has been continuous changes in trends which has been foster by globalisation due
to which global enterprises in retail sector is facing difficulty in maintaining the balance between
demand and supply.

Theme 2: Influence of franchising on business performance In Romania.
As per the thinking of Knight, Koed Madsen and Servais, (2014), Franchising has direct
as well as significant effect on the marketing performance of multi national company. There has
been continuous fluctuations in prices of goods and services due to which global enterprise is
facing difficulty in maintaining the profitability. The author has also stated that due to
continuous change in trends there has been decline in the demands for products or services
offered by multinational company. Crane and Matten, (2016) states that using franchising as
mode of entry method will be helpful to minimize the chances of risk in the company which is
one of the most important advantage of using the franchising option for TESCO. It has been
analysed that using Franchising mode of the entry method will be help to establish a market
share and firm also used already recognised brand name into the market.
Apart from this, Falahat, Knight and Alon, (2018) stated that choosing to franchise is the
best mode of entry mode for TESCO because a franchisor gives a support which is also includes
training and also help to setting up the business in more effect Romania
As per the perception of Dunning, (2014) Franchising has given rise to the political issues
in the nations due to which multinational companies is facing different issues in continuing
business in smooth as well as systematic way. The financial risk is the biggest threat associated
with the implementation of franchising. The author has also stated that reduction in the level of
credit by financial institutions can have adverse consequences for business. Lack of availability
of funds or credit can have negative impact on the potential of the companies to make
investment, due to which firms might have to face more difficulty in expansion of business.
As per the research conducted by author Doh, (2018), sometimes franchising has given
rise to the diverse culture in multinational organisations which has resulted into increase in
number of conflicts among employees which has negative effect on firm performance. In
addition to this, it has provided business entities an opportunity to expand business across
different countries and provide the choices of suppliers but at the same time it has made supply
chain more complex. Knight, (2014), critics that due to higher level of competition, global
companies might not have direct control on the routine business operations. The author has also
stated that due to continuous fluctuation in exchange rate which is another barrier of franchising
that also have adverse effect on the financial performance of multinational enterprises.

The author argues that de Onzoño and Ichijo, (2018), global challenges as Well as
opportunities facing global organisation is completely depended on the business model of firm.
Business entities those who have adopted the customer oriented approach are facing difficulty as
well as issues in catering the needs of domestic business while maintaining consistent global
procedures. Because of high competition in market, many international enterprises in retail sector
is facing difficulty in being domestically flexible. As per the investigation executed by the author
Kafouros, Wang and Katsikeas, (2018), majority of business entities in retail sector is facing
challenge in developing as well as deploying talent in the emerging market. Due to increase in
the cost of productions as well as other business operations is considered to be as the biggest
issues faced by multinational corporations. The author has stated that different mode of entry
has given rise to the stiff competition due to which multinational corporations are facing issue in
maintaining their concentration on main business functions.
Theme 4: Suggest other strategies which can be adopted by TESCO for entering into
market of Romania
According to the perception of van Zanten and Van Tulder, (2018), joint venture, mergers
and strategic alliance are considered top be as an effective strategy which can be adopted by
retailer in order to enter into another market. It is required by multinational firm to conduct risk
before entering into new market, as this will aid business entities in reducing the risk of failure.
The author states that it is required by manager in multinational companies is required to provide
training to employees, as this will enable employees in developing the skills which are required
for managing the complex situations. According to the view of Muzio and Saks, (2018),
innovation is considered to be as an effective strategy will help business entities in managing the
effect of globalisation. The author has also stated that innovation strategy will assist
multinational firm in maintaining its position as well as performance on global environment. It
will support multinational organisation in gaining the competitive advantage in the international
market.
Marketing manager in global companies should conduct research as this will assist them
in addressing the factors which can have effect on the business performance. This tactic will also
support management in development of effective plans or strategies for entering intro new
market.
RESEARCH SPECIFICATION

Selection of appropriate method for research is very much crucial in order to accomplish
desired results. Choice of suitable method is also very much crucial in order to execute
investigation process in systematic process. These are as mentioned below:
Research type: The selection type of research is completed based on the nature of subject matter
on which study has to be conducted. There are two type of research these are qualitative and
quantitative. In present research, investigator will conduct qualitative research because it will
assist scholar in gathering the in detail information related to the topic of research.
Research design: It includes making arrangement for executing different activities such as data
collection, analysis and interpretation of information during the investigation process. It is of
many types such as exploratory, experimental, explanatory and descriptive. Scholar will use
descriptive research design in present research because it will assist researcher in developing the
in depth knowledge about the topic.
Research approach :Research approach can be categorised into two these are inductive and
deductive approach. Investigator has planned to use inductive approach for investigation because
it will help scholar in developing new theory or hypothesis using the facts collected from both
primary and secondary sources.
Research philosophy: It mainly deals with the development of knowledge. The two most
commonly used research philosophies are interprevitism and positivism. Researcher will utilise
interprevitism research philosophy in present study because it will provide scholar an ease in
interpretation of results.
Data collection : There are basically two sources from where researcher can collect data related
to the topic. In present study, scholar has planned to use both primary and secondary source in
order to accumulating the information from both the sources. Primary data consist of interview
and questionnaire while secondary information will accumulate using books, journals, company's
annual reports, magazines, online articles etc.
Sampling: It is the procedure which includes choosing few people as a participant in
investigation procedure. In present study, among various sampling techniques investigator will
use probability sampling. Researcher will select thirty employees randomly.
Data analysis: Qualitative technique will be utilised by researcher in present study for analysing
the information. Chart, tables and Graph will be used for presenting the facts and figures.

P2. Appropriate research methods for research Projects
Research methodology can be referred to as the different methods, techniques and
approaches which are used for conducting investigation process. Selection of the best research
approach for the study is very much important in order to accomplish desired outcome.
Researcher methodology used in the investigation process enables reader to evaluate the
reliability as well as validity of information. The different methods or techniques are utilised in
the research for solving problem in systematic manner. Various approaches, techniques,
philosophy utilised in present study are :
Research type: The selection of the study is based on the purpose of the study. Type of research
selected for the study assist researcher in developing the understanding about the topic. Choice
of the research type is also based on the problem faced by the company or an individual. There
are different types of research these are qualitative, quantitative etc. Among the different
research type, scholar has used the qualitative research type for conducting investigation process.
The rationale for selecting the qualitative research type is that it will assist scholar in
accumulating detailed information related to the topic.
Research design: It is considered to be as a strategy which is implemented by the scholar for
integrating the various elements of the study in logical manner. It is very much important for
researcher to select the best research design, as this will provide them an ease in addressing the
problem. Research design can be considered to be as road map which provides scholar direction
Ill
ustration 1: Gantt Chart

related to the collection and analysis of information. The research design can be categorised as
experimental, descriptive, exploratory, explanatory etc. In present study, researcher has utilised
the descriptive research design. Rationale for selecting the descriptive research design is that
descriptive research design allows researcher to fuse both qualitative and quantitative data. It
also helps investigator in describing the events. Descriptive research design also enables
researcher to gathered detail information about the topic. It also provides scholar in addressing
the problems as well as identifying the techniques which can be implemented in order to resolve
specific issue.
Research approach :In research various assumptions are made by the researcher at different
stage of investigation procedure. Choice of the research approach is based on the nature of the
problem identified during the investigation. Research approach helps researcher in executing the
investigation systematic manner. It also helps investigator in reaching to the conclusion.
Research approach consists of detailed methods which can be used for collection, analysis and
interpretation of data. There are basically the two most commonly used research approach are
inductive and deductive. In present study, researcher have used inductive approach in
investigation. The inductive approach has been used as it has assisted scholar in development of
questionnaire for collection of the information related top the topic.
Research philosophy : It is basically beliefs about the techniques which can be utilised for
conducting different activities during the investigation. Selecting an appropriate research
philosophy is considered to be as very much crucial in research. It enables scholar to develop the
knowledge about the topic. The two most commonly used research philosophy includes
positivism and interpretivism. Scholar has utilised interpretivism research philosophy. The
reason for using interpretivism research philosophy is that it provide investigator an ease in in
interpreting the information. In addition to this, Interpretivist approach is based on naturalistic
approach of data collection.
Data collection : It is the most crucial activity in investigation process without the facts there is
no use of research. Quality, reliability, completeness and validity are the main factors which to
be considered while gathering the information related to the topic of research. Selection of the
appropriate source of gathering the facts relevant to the topic is very much important. There are
basically two sources from where the information related to topic can be accumulated these are
primary and secondary. In present study, scholar have focus on collecting mostly the first hand

data, as this will help them in eliminating the chances of plagiarism which is considered to be as
the biggest ethical issue in research.
There are different techniques which can be used for accumulating primary facts or
figures related to topic these are survey, interview, questionnaire etc. The scholar has collected
the primary data using interview and questionnaire technique. Questionnaire has been created by
researcher himself and form consists of close ended questions. The reason for designing the close
ended questions is that researcher perceives that this technique will help them in gathering
relevant facts and figures. Investigator has gathered secondary information from the books,
journals, magazines, articles etc. In addition to this, financial report of an organisation has been
used for collecting the information about the performance of company.
Sampling : This research activity involves choosing the few people from the wide population as
a participant in investigation process. The two most commonly used sampling methods are
probability and non-probability. In present study the scholar has used probability sampling
method. Rationale for selecting the probability sampling is that this method provides an
individual a chance to be a part of investigation process. In addition to this among the different
techniques, researcher has utilised random sampling technique. Reason for selecting the random
sampling technique is that it aids investigator in eliminating the biasses. Investigator has taken
support from experts in order to ensure that they have selected the right sample from the
population. Researcher has selected thirty participants those are employees working in TESco.
Workers working in different department of Tesco has been selected as scholars think that they
are the people who can provide detailed information about the effect of globalisation on the
performance of organisation.
Data analysis:This research activity includes refining of information in order to make
information easily understandable. Data analysis is very much crucial as it helps researcher in
reaching to the conclusion and assist them in making appropriate decisions. Scholar in present
study has used qualitative analysis. In addition to this, thematic analysis has also been done. The
different themes are designed by scholar considering the questions as well as answers provided
by the respondents. The reason of using the thematic analysis, graphs and charts is to make the
research report presentable and understandable to reader.

LO 2
P3 Project management Plan
Project management plan is referred to as the document which is designed for executing
the project in systematic manner. It provides researcher an ease in managing the implementation
procedure in systematic manner. Project management plan consists of detail about the way
different activities during the project will be conducted, monitored and will be controlled. An
effective project management plan assist investigator in identifying the issues, risks or challenges
which might occur in facilitating the investigation procedure. It also supports researcher in
determining the cost which might incur in conducting the research. Project management plan
also helps scholar in identifying the resources which are required for conducting the study.
Some essential components of project management plan are :
Cost : The lots of resources are required for executing the research. Among different resources
funds are very much important in order to implement the project in successful manner. The
major cost in research project is associated with collection of data. As scholar needs to make the
arrangements for gathering the facts or figures related to the topic. In present investigation few
costs associated with execution of investigation procedure includes salaries of workers,
stationery, travelling expenses, printing and communication cost etc.
Access : The researcher in present investigation has used primary source for data collection as it
was easily accessible. In addition to this, management in Tesco has been asked to provide
annual reports which then has been used by the scholar for analysing the performance of
company. A systematic procedure has been followed by investigator while accumulating facts
and figures.
Ethical issues : It is very much necessary for researcher to considered these issues while making
the project management plan as these problems can have negative effect on their image as well
as performance. In present investigation the following strategies are adopted by scholar in order
to avoid both ethical and legal issues. Researcher has informed the participants about the
purpose of investigation. Investigator has taken the written permission from management in
Tesco before using the company information. No participants were forced to share the data
which they do not want to provide. In addition to this, special soft wares has been utilised for
storing the data in order to maintain confidentiality of information. Researcher in present

investigation has collected maximum amount of information from the primary source as this has
helped them in eliminating the chances of plagiarism.
P4. Appropriate tools for analysing the findings and data
Questionnaire
Name :
Department:
Position:
Ques 1. What type of effect globalisation have on the performance of your company in
Romania?
 Positive
 Negative
 Both
Ques 2. Does company faces any barrier regarding implementation of franchising strategy in
Romania ?
 Political issue
 Increase in trade across borders
 Expansion of foreign direct investment
Ques 3. Are you agree with the statement that Franchising has given rise to major business
issues in Romania.?
 Completely agree
 Partially agree
 Disagree
Ques 4. Is franchising is good strategy for entering into market of Romania ?
 Yes
 No
 Might be
Ques 5. What is the main issue faced by your company due to Franchising ?
 Employing as well as deploying human resource
 Financial management