Sample Admission Essay on McDonald Franchising in the UK

Abstract

Franchising is one of the ways through which McDonalds Company has been able to penetrate the highly competitive fast food industry in the UK. This research was directed towards assessing the ability of the franchisees to deviate from the normal operations of the franchisor and the effects of such deviations on the image of the company. The use of a deductive approach to study and collect quantitative data through a questionnaire provided information of the performance of McDonald franchises in the UK. From the study it was possible to assert that McDonald franchises in the UK have been active in terms of delivering quality products and services to the target customers in the UK. One way by which McDonalds can ensure that its franchisees do not deviate from the expected operations is by training the employees and advertising its products through the best promotional platforms to increase customer awareness on its products.

McDonald Franchising in the UK

Introduction

Since its establishment, McDonalds currently operates more than 30, 000 fast food restaurants in about 119 countries. The ability of the company to expand its services on the international platform is based on the desire by the management to expand and establish major outlets that will improve on its competitive advantage. Franchising acts as one of the ways through which the company has been able to realize its expansionist ideology. This has made it possible for the company to establish itself as a more profitable and highly reputable fast food restaurant on the international platform.

Background

In the UK, franchising is one of the most popular business ventures. This is attributable to the desire by startup companies, the franchisees, to acquire links with highly performing companies in the domestic market and on the international platform (Antia et al, 2013). This connection makes it possible for the franchisee to engage in promotional activities and sales of the franchisors products (Alon, 2012). The franchisees have also been able to boost their reputation by upholding the standards and operating in accordance with the expectations as established by the franchisor.

The desire and the decision by McDonald to engage in franchising business in the fast food market within the UK can be attributed to the need to expand operations, improve on the company’s profit margins and establish a competitive advantage at relatively lower cost (Batik & Edwards, 2012). The company has however faced competition from other fats food companies such as Burger King. Poor marketing was considered as one of the contributors to McDonald’s poor performance in the competitive market (Mendelsohn, 2004). An improvement of the sales and marketing techniques coupled with the establishment of a standardized operating procedure in its UK franchises was considered as one of the best alternatives to secure a high position in the market (Pride et al, 2014). In addition, it was through these promotional strategies that the company was able to ensure that it act in accordance with the demands and the desires of the customers in the production process.

The purchase of McDonalds brand by the franchisees is considered beneficial because they provide customers with products from well-established and recognized brands that have in the past provided quality products that satisfy the needs of the consumers. The franchiser also benefits by buying into well developed and tested systems of production (Alon, 2012).

Objectives

  • To investigate on the benefits of McDonald franchisees in establishing a competitive advantage in the UK
  • To assess the possibility of franchises deviating from the expected operations of the franchisor and the effects on the latter’s operations
  • To assess the initiatives that McDonalds must conduct to limit the possibility of franchisees deviating from expected operations.

Findings: Data Collection and Analysis

The following section will presents details on data analysis and the interpretation of the data in relation to eh suggested assumptions of the study considering McDonald franchising. Data was collected through a questionnaire that was administered on an online platform. The data was acquired from employees in different McDonald franchises within the UK.

 

 

Data analysis

The main objective of this study was to assess the ability of McDonald franchising business in the UK to ensure tha the company maintains a high competitive advantage in the UK. The questionnaire that was developed for the study was structured with both open emended and closed questions. About 92% of those sampled were interviewed. this is an indication that the percentage turnout for the study was sufficint in the development of genralizations based on the possible findings. Decriptive statictics was the approach used in data analyisis. This approach was considered essential in this study considering the assumption that it is usable in the development of summaries in relation tote emerging patterns (Wimmer et al, 2011). Through this data analysis approach it was also easier for the data generated in the study to provide a technique of simplifying complex data through graphical representation of the information gathered (Gulati 2009).

Competitive advantage and McDonald franchises

Category Affirmative (%) Denial
The company has a comprehensive sales and marketing department 80 20
Professional production, customer relations and customer satisfaction 75 25
Production, customer relations and sales force training are major growth factors in Mc Donald franchises 82 18

Table 1.0: Factors affecting the competitive fast food market in the UK

From the data gathered, about 80% of those interviewed held the thought that it is important for the success of McDonald in the UK was based on high level of expertise of its sales and marketing departments while 20% believed that the sales and marketing department were relatively weak. Professional production, customer relations and sales, in the view of 75% of those interviewed was an effective technique through which the company was able to establish a competitive advantage while 25% disagreed. About 82% of these interviewed held the assumption that quality production, effective customer relations and sales force training were essential determinant in the ability of the company to grow its franchises while 18% were in disagreement.

For the company to be able to establish a competitive advantage in the franchising industry within the UK, it was important to assess the relationship between the company and its customers. The data collected was as in the table below

Category Affirmative Denied
The company conduct customer relations appraisals 65 35
Practice customer relations ethics 78 22
Expose unethical staff 50 50
Customers Are satisfied with the services 65 35
Company conducts adequate customer surveys 70 30
Production of quality products by franchises essential in company growth 90 10
Promotion of products by franchises essential for McDonald growth 88 12

Table 2.0: The relationship between the company and its customers

Competitive advantage in any market can be developed effectively through the ability of a company to ensure tha t its parodists and services are affordable to the target customers. Other factors that were considered integral for the success of the company were as in the table below

Factor Agree (%)  Disagree (%)
Affordability of McDonald products 80 20
Government polices 98 2

Table 3.0 factors affecting success of McDonald franchising in the UK

The franchise business within the UK is currently considered as one of the ways by which McDonald has been able to establish itself as a highly competitive company in the fast food industry. The following variables were investigated to explain the contributing factors to the current state of franchises in the UK.

Description Approval (%)
Relatively inexperienced employees/ management 15
Lack of timely interventions by the government 20
Insufficient focus on the franchisor 50
Too much focus on the top-line customers for growth 15

Table 4.0: Contributing to the current state of franchises in the UK.

Questions have been raised on the ability of McDonald to ensure that its products are in accordance with expectations of the customers. The question in the questionnaire focused on whether products by McDonald were American and unable to meet the interest of the UK customers. About 20% of the respondents were in agreements while 80% denied this assumption. An additional aspect integral in boosting a company’s competitive advantage was repackaging. 75% of those interviewed acknowledge that it was important for McDonald to repack its products accordingly while 25% argued that the company could realize its goals by maintaining its traditional packaging approach.

The table below provides responses on the possible game changer for McDonalds in shaping its franchising business in the UK within the next 5 years.

Sources of growth Response (%)
Awareness to the public on McDonald’s franchises, the products and  
Benefits 5
Innovation 10
Product packaging with various benefits 5
Professionalism in franchises and by sales persons 5
Image and Reputation of the public towards the food 5
Industry  
Customer Service 10
Technology 10
Change of distribution channels 10
Government Regulatory changes i.e. increase tax relief as 15
an incentive  
Expanding coverage (decentralization of outlets) 10
Affordable Pricing 10

Table 5.0: factors that could shape McDonald’s franchising

The above table provides responses of those interviewed on matters related to the franchising business by McDonald in the future. These factors were not considered in isolation but in collaboration with other factors that affect the performance of the company’s franchise business within the UK.

Discussion

The decision by McDonald to establish itself in UK through franchising was based on among other factors the desire to maintain a high competitive advantage, improve on its market share, customer base and profit margins (Antia et al, 2013). One way by which the company has been able to ensure that its products are relevant and highly attractive to the target customers is through the establishment of strong and dynamic marketing and sales departments as evidenced by the assertions of 80% of those interviewed. High levels of effectiveness and efficiency of these departments often provide the company with the best marketing strategies that can help in penetrating and establishing itself as a brand in the highly competitive UK fast food industry (Batik & Edwards, 2012).  Through such strategies it becomes relatively easier for the company to understand the best production methods, the best ways to ensure quality customer services and the type of training to be provided to its employees (Ruddick, 2014).

Chart 1.0 Comprehencive marketing andsalesdepartmdnt ontributing to competitive advantage

The relationship between the company and its employees plays an essential role in defining the type and the level of competitive advantage that McDonalds’ can develop in its franchising business (Sherman, 2004). This is an indication that the success of the franchising business is highly dependent on the ability of the company to establish a symbiotic relationship with its customers. Incorporating customer insights in its production can be used in the determination of the type of products and the quality of services that the company can provide (Solis‐Rodriguez & Gonzalez, 2012). The objective of a company in the process of expanding its production or target is to improve on the ability of the target customers to purchase products. McDonald franchising has been a major player in the fast food industry in different locations within the UK. the decision by the company to franchise is because of the already established brand name that is highly recognized due to existing reputation tha the company has been able to build in relation to its operations (Sidhpuria, 2009).

About 65% of those interviewed argue that one way by which the company has been able to establish effective customer relations is by ensuring that the conduct of its employees and the franchisees is based on the marketing strategies and the vision of the franchisor (Thompson, 2010). This is because the company is popular for its ability to provide quality products. Therefore, for the customers to appreciate products from the franchisees, it is important that they abide by the production strategy of the franchisor (Bailey, 2011). Customer relations ethics and the exposure of unethical staff has been used by company to use as a guarantee to the customers that it si dedicated towards the delivery of high quality services (Beckmann & Zeyen, 2014).

Chart 2.0: Factors affecting franching and competitive advantage

Customer feedback and the ability of the company to respond to these feedbacks is a demonstration that McDonalds through its franchises is focused on the development of a customer-oriented organization (Winsor et al, 2012). Other than the establishment of good customer relations services, McDonald’s while franchising ensures that the location and the capacity of the franchises will guarantee overall growth of the company. Production of quality products that are in accordance with the desires of the customers and the objectives of the franchisor are produced.

Price has often been considered as a major determinant of the ability of a company to maintain a competitive advantage. The company has been able to ensure tha tits products are relatively affordable by conducting research on the prevailing prices in the target market and ensuring that the set price for any product is in agreements with the required and the existing pricing strategies. This explains why from the study 80% of those interviewed agree that the affordability of the company’s products is essential in determining the success of the franchises. Government regulations play an important role in the determination of the type of business and the nature laws that franchising businesses must adhere to in relation to their association with the franchisee.

The UK government policies on regulation consider franchising as a way of encouraging successful multinational corporations to invest in the country (Cumberland & Githens, 2014). In addition, the UK government considers these types of businesses as important in building on the experiences of startup companies considering the requirement of training and the introduction of expertise to act as mentors to the franchisees. This explains why about 98% of those interviewed argue that government polices are definitive of the success of the franchising business in the UK.

Figure 1.0: Factors affecting the success of McDonald franchises in the UK

Among the factors that affect the operations of McDonald as a franchisor in the UK fast food industry, limited focus on the franchisor qualifies as the greatest factors. This is because about 50% of those interviewed argue that laxity by the government to ensure tha the franchisor does not fully exploit the franchisees may affect the nature and the success of the business within the UK (Combs et al, 2011).  Too much focus on the top-line customers and the existence of relatively inexperienced employees least affect the success of McDonalds as only 15% of those interviewed on each criterion argued that they were influenced. The best explanation for this is that when introducing franchising, the franchisor often trains the franchisees and merges its operations with experts to ensure that all those involved in the production process and in customer relations are highly qualified and experienced in executing their (Cumberland & Githens, 2014).

Failure by the government to ensure timely interventions when dealing with franchisors can been cited as one of the contributing factors to the unpredictable condition of the fast food market in the UK. From the study it is possible to note that more about 20% of those interviewed argue that failure by the government to intervene in problematic, especially legal, situations that affect the franchising industry can be cited as a contributing factor to the prevailing situation in the (Corporate Info, 2014).

Chart 2.0 Contributing factors to the current state of franchising in the UK

McDonald is a multinational fast food company with its headquarters in the US. Inasmuch as the company is American it would be irrational to argue that it provides American products (Corporate Info, 2014). This is as demonstrated by the finding s of the study which indicates that about 80% of those interviewed disagree with the assumption that McDonald sells American products. One way by which the company’s franchising strategy has been able to realize its potential within the UK market is through the incorporation of cultural and prevailing societal conditions in the determination of the best products to provide to customers (Méndez et al, 2014). The company operates ion an understanding that different societies are defined by different cultures. The diversity experienced in the customers requires the company to manipulate its products in ways that are in line with the expectations of the customers (Hodge et al, 2013).

In terms of the game changing initiatives the company can introduce to ensure that it remains competitive in the food industry market within the UK, it would be important to adhere by government regulations and improve on customer service (Coade, 2001). in addition, it will also be important for the company to ensure that it embraces technology and innovation in its operations while at the same time redefining its distribution channels to ensure tha the resulting strategy developed for distribution protect the company and the franchises from unnecessary competition (Dent, 2011).

Figure 2.0: Game changing initiatives for McDonalds in the UK

The relationship between the findings of the study and theoretical connotations

It is possible to understand the findings and the interpretations of the study from the plural organization theory. This theory supports franchising as one way through which a company can penetrate a highly competitive market to ensure that it establishes a competitive advantage (Diaz-Bernado, 2012). When this theory is assessed in relation to McDonald and its relationship with the franchises, it is possible to argue that the company has been able to establish itself in the European market. This is due to its ability to identify strategically positioned business enterprises, most often startups, to assume the brand name and activities and ensure that their operations are in accordance with the desires of the company (Evanschitzky et al, 2015). This has not only enabled McDonald to gain popularity as one of the leading fast food companies, the company has also been able to improve on its market share and customer base (Garg et al, 2013).

Furthermore, it is through franchising that the company has been able to pol more resources from different sources with the objective of  developing elaborate and extensive marketing strategies that can ensure the company improves in terms of its marketing objectives and ability to ensure that  it realizes its objectives to its customers (Meiseberg & Dant, 2015). When understood from the perspective of the plural theory, it is possible to argue that McDonalds has been facing challenges in its franchising business (Gerhardt et al, 2013). This is because there have been instances where the franchisees have attempted to deviate from the expected practices of the company. Despite these situations, the company has also been able to ensure that it sees the plurality and the diversity of organizational structures in these franchises in boosting its presence in within the UK (Evanschitzky et al, 2015).

The main objective of this study was to assess whether franchises deviate from the main business of the franchisor and the possible effects of such deviations in affecting the reputation of the company. This study was to be conducted in relation to the franchising operations of McDonalds in the UK. According to this study, there have been limited instances of such deviations. This is because of the strict policies that define the franchising operations of the company in foreign countries. In addition, the ability to respect and abide by the prevailing laws by the government has enabled the company to ensure that its relationship with the franchisees is defined by the requirement of the law and the objectives of the franchisor (Love, 2008).

The hypothesis of the study states: McDonald’s franchising increases the possibility of the company gaining a competitive advantage on the international platform. The study affirmed that the decision by McDonalds to franchise its operations within the UK has been productive in terms of boosting the company’s competitive advantage.

Conclusion

McDonalds is one of the leading companies in the fast food industry within the UK and on the international platform. The success of the company can be attributed to among other factors the ability of the company to franchise its operations in highly competitive market (Jenner and Stephen, 2000). Through such franchising the company has been able to improve in terms of its target market and its ability to attract more customers in ways that will ensure that it improves on its profit margins. One way by which the company’s franchising strategy has been able to realize its potential within the UK market is through the incorporation of cultural and prevailing societal conditions in the determination of the best products to provide to customers.

The company has also been able to establish itself in the highly competitive market by operating as a customer focused organization.  It has been able to realize by ensuring that it integrates its operations with the desires of the customers (Williamson, 2010). The company is maintaining high customer service relations by its ability to ensure that it responds in a timely manner to customer demands. This approach towards customer relations has been successful in the sense that it limits the ability of the franchises to deviate from McDonald’s oriented services (Price, 2011). Furthermore, it is through franchising that the company has been able to ensure that the franchises do not deviate from the expected operations (Frazer et al, 2012). Franchising for McDonalds generates mutual benefits to both the franchisees and the franchisor. This is because the company has been able to ensure that it benefits by expanding on its supply chain and market share (Bowman & Gatignon, 2010). For the franchisees, they have been able to benefit by gaining training on different aspects related to company operations, for example, it is through franchising that the franchisees have learned more about business management, customer relations and the relevance of quality products and services in maintaining the relationship between a business and its customers (Frazer et al, 2012).

Recommendations

There is need for the government of the UK to ensure that it law based regulations are flexible enough to accommodate more companies with the desire of franchising within the country (Davies, 2010). This is because franchising is a form of foreign investments that allows local businesses and startup companies to merge their operations with those of already established companies on the international platform (Kerr, 2012). It is through such cooperation’s that the UK based companies can acquire training on the best business practices (Gerhardt et al, 2013).

There is need for the company to consider more training of its employees in the franchises on the expectations and the defining polices of the franchising business (Richter, 2012). This is important to both the franchisor and the franchisees because it is one way of ensuring that every party to the franchising agreement understands their roles and responsibilities in materializing the objectives of the agreement (Gaily, 2007). Furthermore, it is through such trainings that McDonalds can ensure that it limits the possibility that the franchises will deviate from the expectations of the franchisor (Smith, 2011). Such deviations may affect the reputation of the company in terms of the quality and the types of products that are made available to the customers (Høyrup, 2012).

There is need for the company to improve on its promotional strategies. This is because through such marketing it will be possible for the company to develop the best possible techniques that can provide more information to the target customers on the products and the locations of its outlets (Leipziger, 2010). This is because it is through such outlets that the company can market its products and provide its target customer with the intended products. Promotional strategies are also ways by which the company has been able to ensure that it establishes itself as a highly competitive player in the fast food industry (Strand, 2013) (Moulton & Lapsley, 2001).

The company has the ability of engaging in diversification of its products. This is based on the understanding that it is through this approach to the fast food industry that McDonalds can ensure that its franchises are operating in accordance with the expectations of the company (Nordberg, 2011). In addition, different customers in different locations are attracted towards varieties of products (Tourani, 2010). Their desires are often influenced by religious beliefs of the prevailing societal conditions (Schweyer, 2011). Satisfying customers in accordance with their desires guarantees the company a competitive advantage in the dynamic fast food industry (Ireland et al, 2008).

 

 

 

 

Reference

Alon, I. (2012). Global Franchising Operations Management: Cases in International and Emerging Markets Operations. FT Press,

Antia, K. D., Zheng, X., & Frazier, G. L. (2013). Conflict management and outcomes in franchise relationships: the role of regulation. Journal of Marketing Research, 50(5), 577-589. [Accessed: 22/4/2015]. http://journals.ama.org/doi/abs/10.1509/jmr.11.0144

Bailey, M. (2011). Internet marketing: An hour a day. Indianapolis, Ind: Wiley Pub.

Batik, K., & Edwards, J. (2012). Controlling the Personal Habits of Franchisees Within and Outside the Franchise Environment,”. Franchise Law Journal, 32, 15-20. [Accessed: 22/4/2015]. http://heinonline.org/HOL/LandingPage?handle=hein.journals/fchlj32&div=6&id=&page=

Beckmann, M., & Zeyen, A. (2014) Franchising as a Strategy for Combining Small and Large Group Advantages (Logics) in Social Entrepreneurship A Hayekian Perspective. Nonprofit and Voluntary Sector Quarterly, 43(3), 502-522. [Accessed: 22/4/2015]. http://nvs.sagepub.com/content/43/3/502.short

Bowman, D., & Gatignon, H. (2010). Market response and marketing mix models: Trends and

research opportunities. Boston: now.

Coade, Neil. (2001). Capitalizing on Success. London: Thomson Business. Print.

Corporate Info (2014) :: McDonalds.com. [ONLINE] Accessed: 22/4/2015. http://www.mcdonalds.com/us/en/our_story/Corporate_Info.html.

Cumberland, D. M., & Githens, R. P. (2014). Organization Development Through Franchise Advisory Boards A Model for Governance Relationships. Human Resource Development Review, 13(4), 437-461, [Accessed: 22/4/2015]. http://hrd.sagepub.com/content/13/4/437.short

Combs, J. G., Ketchen, D. J., Shook, C. L., & Short, J. C. (2011). Antecedents and consequences of franchising: Past accomplishments and future challenges. Journal of Management, 37(1), 99-126. [Accessed: 22/4/2015]. http://jom.sagepub.com/content/37/1/99.short

Davies, Adrian. (2010). A strategic approach to corporate governance. Aldershot [u.a.]:

Gower.

Dent, Julian. (2011). Distribution Channels: Understanding and Managing Channels to Market. London: Kogan Page. Internet resource.

Diaz-Bernado, Ramon. 2012.  “An Analysis Of Three Confronting Theories To Explain

Franchising Supply.” Journal of Business & Economics Research – March 2012, Vol. 10. No. 3

Evanschitzky, H., Caemmerer, B., & Backhaus, C. (2015). The Franchise Dilemma: Entrepreneurial Characteristics, Relational Contracting, and Opportunism in Hybrid Governance. Journal of Small Business Management. [Accessed: 22/4/2015]. http://onlinelibrary.wiley.com/doi/10.1111/jsbm.12145/abstract?deniedAccessCustomisedMessage=&userIsAuthenticated=false

Frazer, L., Weaven, S., Giddings, J., & Grace, D. (2012). What went wrong? Franchisors and franchisees disclose the causes of conflict in franchising. Qualitative Market Research: An International Journal, 15(1), 87-103. [Accessed: 22/4/2015]. http://www.emeraldinsight.com/doi/abs/10.1108/13522751211192017

Gaily, B. (2007). Developing Innovative Organizations: A Roadmap to Boost Your Innovation

Potential. Basingstoke: Palgrave Macmillan

Garg, V. K., Priem, R. L., & Rasheed, A. A. (2013). A theoretical explanation of the cost advantages of multi-unit franchising. Journal of Marketing Channels, 20(1-2), 52-72,

Gerhardt, S., Dudley, D., & Hazen, S. (2012). Franchising and the Impact of McDonald’s. Journal of Management and Marketing Research, 1-10., [Accessed: 22/4/2015]. http://jupapadoc.startlogic.com/manuscripts/11910.pdf

Gulati, P. M, (2009), Research Management: Fundamental and Applied Research, Global India

Publications

Hodge, C., Oppewal, H., & Terawatanavong, C. (2013).Determinants of franchise conversion: a franchisee perspective. European Journal of Marketing, 47(10), 1554-1575, [Accessed: 22/4/2015].  http://www.emeraldinsight.com/doi/abs/10.1108/EJM-10-2010-0540

Høyrup, S. (2012). Employee-driven innovation: A new approach. New York, NY: Palgrave

Macmillan.

Ireland, R. Duane, Robert E. Hoskisson, and Michael A. Hitt. (2008). Understanding

business strategy: concepts and cases. Mason, OH.: South-Western Cengage Learning

Jenner, Shirley, and Stephen Taylor. (2000). Recruiting, developing and retaining graduate talent.

London: Financial Times/Prentice Hall.

Kerr, J. (2012). The best practices enterprise : A guide to achieving sustainable world-class

performance. New York Universtiy Press: New York

Leipziger, Deborah. (2010) The Corporate Responsibility Code Book. Sheffield, U.K.: Greenleaf Pub,

Love, John. (2008). Mcdonald’s: Behind the Arches. Paw Prints,. Print.

Meiseberg, B., & Dant, R. P. (2015). A Cross-National Comparison of the Role of Habit in Linkages between Customer Satisfaction and Firm Reputation and Their Effects on Firm-Level Outcomes in Franchising. In Interfirm Networks (pp. 99-124) Springer International Publishing,2015

Méndez, M. T., Galindo, M. A., & Sastre, M. A. (2014). Franchise, innovation and entrepreneurship. The Service Industries Journal, 34(9-10), 843-855. 2014 [Accessed: 22/4/2015]. http://www.tandfonline.com/doi/abs/10.1080/02642069.2014.905926#.VTebxfAwjIU

Mendelsohn, Martin. (2004). The Guide to Franchising. London: Thomson, 2004. Print.

Moulton, K. S., & Lapsley, J. T. (2001). Successful wine marketing. Gaithersburg, Md: Aspen

Publishers.

Nordberg, D. (2011). Corporate governance: principles and issues. Los Angeles:

SAGE

Price, A. (2011). Human resource management in a business context. London: Thomson.

Pride, William M, Robert J. Hughes, and Jack R. Kapoor. (2014). Business. Boston: Houghton Mifflin Company, 2008. Print.

Richter, T. (2012). International marketing mix management: Theoretical framework,

contingency factors and empirical findings from world-markets. Berlin: Logos.

Ruddick, Graham. (2014). How McDonald’s Has Turned Around in the UK. http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/11234229/How-McDonalds-was-turned-around-in-the-UK.html

Schweyer, Allan. (2011). Talent management systems best practices in technology solutions for r

ecruitment, retention, and workforce planning. [Toronto, Ont.]: Wiley. http://www.123library.org/book_details/?id=7405.

Sherman, A. Franchising & licensing two powerful ways to grow your business in any economy (3rd ed.). New York: AMACOM. 2004

Sidhpuria, Manish V (2009). Retail Franchising. New Delhi: Tata McGraw-Hill Education, Print.

Smith, J. (2011). Training needs analysis – what you need to know: definitions, best practices,

benefits and practical solutions. Dayboro: Emero.

Solis‐Rodriguez, V., & Gonzalez‐Diaz, M (2012). How to design franchise contracts: The role of contractual hazards and experience. Journal of Small Business Management, 50(4), 652-677.. [Accessed: 22/4/2015]. http://onlinelibrary.wiley.com/doi/10.1111/j.1540-627X.2012.00370.x/abstract?deniedAccessCustomisedMessage=&userIsAuthenticated=false

Strand, R. (2013) “The chief officer of corporate social responsibility: A study of its presence in

top management teams.” Journal of Business Ethics 112, no. 4: 721-734

Thompson, John L, and Frank Martin (2010). Strategic Management. Andover: Cengage Learning,. Print.

Tourani Rad, A. (2010). Handbook on emerging issues in corporate governance.

Singapore: World Scientific.

Williamson, Michael. (2010). Training needs analysis. London: Library Association Pub

Wimmer, Roger D., and Joseph R. Dominick. 2011. Mass media research: an introduction.

Boston, Mass: Cengage- Wadsworth.

Winsor, R. D., Manolis, C., Kaufmann, P. J., & Kashyap, V (2012). Manifest Conflict and Conflict Aftermath in Franchise Systems: A 10‐Year Examination*. Journal of Small Business Management, 50(4), 621-651. [Accessed: 22/4/2015]. http://onlinelibrary.wiley.com/doi/10.1111/j.1540-627X.2012.00369.x/abstract?deniedAccessCustomisedMessage=&userIsAuthenticated=false

 

 

 

Appendix

Questionnaire

 

Dear respondent,

 

This research is meant for academic purpose. You are kindly requested to provide answers to these questions as honestly and precisely as possible. Responses to these questions will be treated as confidential. Please tick where appropriate or fill in the required information on the spaces provided. The research aims at collecting data on the relationship between franchising and the development of an effective competitive advantage by McDonald Company in the UK

SECTION A: Socio – Demographic Characteristics

 

Please put a tick {√} in the box where the question requires you to do so.

 

Name (optional) …………………………………………………………

 

           
No. Questionnaire     Response
         
1 Gender   1 = Male  
           
      2 = Female  
       
2 Respondent organizational responsibility category 1 = Management  
           
      2 = Non – Management  
       
     

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     

 

SECTION B: Competitive Advantage and McDonald Franchises

 

No. Questionnaire   Response  
1 In   your   opinion   does   the   company   have   a 1 = Yes    
  Comprehensive sales and marketing department? 2 = No    
       
    3 = No Idea    
2 How  do  you  rate  your  company  in  undertaking 1 = Very Satisfactory    
  Professional production, customer relations and sales staff training? 2 = Satisfactory    
       
    3 = Undecided    
    4 = Not Satisfactory    
    5 = Highly Not Satisfactory    
3 To   what   extent   is   production, customer relations and sales   force   training   and 1 = Very much    
  development  a  major  factor  in  the  growth  and 2 = Much    
  Marketing of McDonald’s franchises?    
  3 = Not much    
       
    4 = Not affected at all    
    5 = Do not know    

 

 

4)  In the table below, put a tick {} in the appropriate box.

 

  Does your company: YES NO
i) Carry out customer relations appraisals on their dealings with McDonald’s    
  customers?    
ii) Practice good ethics in their dealings with McDonald’s customers?    
iii) Expose staffs that are unethical?    

 

 

 

No. Questionnaire   Response  
5 How  do  you  rate  your  company  in  getting  the 1 = Very Satisfactory    
  customers satisfied with your services? 2 = Satisfactory    
       
    3 = Undecided    
    4 = Not Satisfactory    
    5 = Highly Not Satisfactory    
6 Does your company carry out adequate customer 1 = Yes    
  surveys? 2 = No    
       
    3 = No Idea    

 

No. Questionnaire       Response  
7   1 = Most Likely    
   

Do you view the production of quality products by franchisees as a factor that affects growth of McDonald’s

  2 = Likely    
       
    3 = Less Likely    
               
            4 = Not Likely at all    
            5 = No Idea    
8   1 = Most Likely    
          2 = Likely    
   

Do you view sales promotion of McDonald’s products by the franchisor as a factor that affects the growth of McDonald’s Franchisees?

     
    3 Less Likely    
               
            4 = Not Likely at all    
            5 = No Idea    
9 How does your company promote its services?   1 = Advertising    
            2 = PR and Publicity    
            3 = Through Agency    
            4 = Personal Selling    
            5 = Sales Promotion    
            6 = No idea    

 

 

10) How do you view affordability of McDonald’s products as a factor affecting the marketing and growth of the Franchises?

1 = Most Likely

 

2 = Likely

 

3 = Less Likely

 

 

4 = Not likely at all

 

5 = No Idea

 

 

  • To what extent do you think government regulation policies in the UK affect the marketing and growth of McDonald franchises?

1 = Strongly Agree

 

2 = Agree

 

3 = Neutral

 

 

4 = Disagree

 

5   = Strongly Disagree

 

Please explain

 

 

 

 

  • What do you think is the single most important reason for the current state of of the franchises in the UK?
Description Response

 

Relatively inexperienced employees / management

Lack of timely intervention by the government

Lack of focus by franchisor (‘lets do everything’, ‘lets do what the competitor does’)

Too much focus on top – line customers for growth / monthly new business volumes

None of the above (‘it is not all that bad’)

Other (Please specify)

 

 

 

13) To what extent do you think the McDonald’s franchisees should increase the penetration

 

 

of the company’s products by targeting the low – end market (low income population)?

 

1 = Strongly Disagree

2 = Disagree

3 = Neutral

 

4 = Agree

5 = Strongly Agree

 

 

14) Do you think most of the McDonald’s products are American and do not address the Modern needs of the public leading to low penetration of the franchises?

1 = Yes

 

2 = No

 

 

 

15) In your opinion do you think McDonald’s products should be repackaged to include various benefits and address the modern needs of the public?

1 = Strongly Disagree

 

2 = Disagree

 

3 = Neutral

 

 

4 = Agree

 

5 = Strongly Agree

 

 

16) In scales of 1 – 5 with 1 representing the lowest priority and 5 representing the highest priority, which two or three factors will in your opinion be “game changers” and can shape franchisor business by McDonald’s in the UK over the next five years?

Key

 

 

1 = Strongly Disagree, 2 = Disagree, 3 = Neutral,  4 = Agree, 5 = Strongly Agree

 

 

Sources of growth 1 2 3 4 5
Awareness to the public on McDonald’s franchises, the products and          
Benefits          
Innovation          
Product packaging with various benefits          
Professionalism in franchises and by sales persons          
Image and Reputation of the public towards the food          
Industry          
Customer Service          
Technology          
Change of distribution channels          
Government Regulatory changes i.e. increase tax relief as          
an incentive          
Expanding coverage (decentralisation of outlets)          
Affordable Pricing          
Other (Please specify)          

 

 

17) Any other comment?

 

 

 

 

 

 

 

 

 

 

 

THANK YOU VERY MUCH FOR YOUR PARTICIPATION.