[TYPE THE COMPANY NAME]

The Impact of Cultural Change in

Localization of McDonalds Products
(Study on McDonald Pakistan)
[Type the document subtitle]
amir
[Pick the date]

Contents
Chapter 1

Introduction .............................................................................................................................. 5

1.1 Background ............................................................................................................................................. 7

1.2 Rational for the study ............................................................................................................................. 7
1.3 Research Aims ......................................................................................................................................... 9
1.4 Objectives ............................................................................................................................................... 9
1.5 Research questions ................................................................................................................................. 9
1.6 Hypothesis .............................................................................................................................................. 9
Chapter 2

Literature Review .................................................................................................................... 10

2.1 External environmental forces ............................................................................................................. 11

2.2 Adaptation vs. Standardization............................................................................................................. 12
2.3 Culture and Cultural Adaptation ........................................................................................................... 12
2.4 Culture in marketing ............................................................................................................................. 13
2.5 Cultural Impact on shopping for behavior ............................................................................................ 15
2.6 Impulse shopping for and shopper selections ...................................................................................... 15
2.7 Effective medium of communication ................................................................................................... 15
2.8 Summary ............................................................................................................................................... 16
Chapter 3

Research methodology: .......................................................................................................... 17

3.1 Research purpose: ................................................................................................................................ 17

3.2 Research Philosophy ............................................................................................................................. 18
3.3 Research Strategy ................................................................................................................................. 19
3.4 Research approach: .............................................................................................................................. 20
3.4.1 Inductive research approach: ............................................................................................................ 20
3.4.2 Deductive research approach: ........................................................................................................... 21
3.4.3 Selected research approach: ............................................................................................................. 21
3.5 Data collection: ..................................................................................................................................... 22
3.5.1 Primary data: ..................................................................................................................................... 22
3.5.2 Secondary data: ................................................................................................................................. 22
3.5.3 Selected method: ............................................................................................................................... 23
3.6 Data analysis: ........................................................................................................................................ 23
3.6.1 Quantitative data Analysis: ................................................................................................................ 24
3.6.2 Qualitative data analysis: ................................................................................................................... 24
2

3.6.3 Selected method of analysis: ............................................................................................................. 24

3.7 Limitations: ........................................................................................................................................... 25
Chapter 4
4.1

Results & Analysis ................................................................................................................... 26

Results ......................................................................................................................................... 26

Analysis and discussion ............................................................................................................................... 34

Chapter 5

Conclusions and Recommendations ....................................................................................... 38

5.1 Conclusions ........................................................................................................................................... 38

5.2 Recommendations ................................................................................................................................ 38
References .................................................................................................................................................. 41

Table of figures
How culture influence consumer behavior? (Source: Kotler et al., 1996) Figure 1................................... 13
The 7Ps components of the marketing mix (Source: promoting Management P. Kotler, 2009 P.
17Figure 2 ............................................................................................................................................... 14
Research process Figure 3 .......................................................................................................................... 18
(Babbie, The Practice of Social Research, 2012) Figure 4 ........................................................................... 20
(Tavakoli, A Dictionary of Research Methodology and Statistics, 2013) Figure 5 ...................................... 21
(Hartas, 2010) Figure 6 ............................................................................................................................... 21
(Hartas, 2010) Figure 7 ............................................................................................................................... 21
Pakistan facts and figures (RAUF, 2014) Figure 8 ....................................................................................... 27

Executive Summary
For the Pakistan there is difference of social and cultural backgrounds than other countries around
the world. Pakistan is having a strong impact of social, religious and cultural factors on the
products. There is a need to study these factors that impacts the organizations. While development
of the product McDonalds will have to study these factors so that they may face this challenge
properly. For this particular research McDonald branch located in Peoples colony Faisalabad
Pakistan will be focused. After the completion of the research work researcher will be able to
analyze the social cultural factors and their impact on the McDonalds product development. This
study will be helpful for the researcher to complete the course and will help the researcher in
professional career. As we know there is expanding pattern in fast food industry and individuals in
Pakistan are more aware about their health. Thus McDonald worldwide ought to open as
numerous branches in different urban areas of Pakistan like Multan, Gujranwala, Hyderabad, and
different urban areas like these. In the said urban areas there is a great deal of potential for the
hard interest in the fast food industry as the culture is changing very fast. The locals of Pakistan are
more concerned with the taste of the items as opposed to alternate things, so McDonalds should
consider the progressions in the client mind about its items and management. As there is a mixed
culture in Pakistan and the people are aware with the changes in the fast food industry and
improvements in the FMCG sector. McDonalds should open new restaurants in different urban
communities too. McDonald needs to run from key organizations together with different firms
working in all different nations. This will improve the cooperation of the people with McDonalds
and also their interest in the items of the company.

Chapter 1 Introduction
Various cultures have their impact on the strategies of the business organization and the
multinational companies. For international organizations, the process of localization needs to
consider the cultural variances and the impact of cultural change in the localization. Multinational
companies are in operations in more than one country. (Bruno Dyck, 2010). Multinational
companies are playing vital role in the development of the country. Multinational companies are
contributing in the economic development and growth of the economy as a whole. Multination
companies are facing different challenges in the external environment. These challenges are like
the international political environment, overall economic situation, socio-cultural variances, and
the technological changes.
All these factors are creating complexity in the business of multinational companies. Cultural
difference is a main challenge for the western multinational countries when they are starting their
business in the eastern countries like Pakistan and other Muslim countries. Pakistan has a specific
culture with religious background and Islamic norms. There are limitations in lives and businesses
and even in all the aspects. For this study McDonald is the selected multinational company from
FMCG industry. The researcher has focused on the impact of cultural change in localization of
McDonalds products.
Organizations cultural adaptation measures did contribute to this study by adding reliable
materials. As another piece of the previous relevant works, Yu and Zhang (2009) elite
Organizations as two samples to review the role of cultural variations in international promoting.
Therefore on hold on the study, they interviewed several promoting managers of Organizations to
urge information of their marketing ways that, once that they theatrical a conclusion that culture
variations influenced the 4P marketing ways that in every the companies in many ways that during
which. Being fully totally different from their perspective from the companies facet, the authors of
this thesis are willing to explore the variations of cultural adaptation measures through customers
eyes, and a lot of study are reaching to be carried on to hunt out the foremost significantly adapted
promoting factor(s) poignant consumer different. Consumer buying behavior is the sum total of a
consumer's attitudes, preferences, intentions and decisions regarding the consumer's behavior in
the marketplace when purchasing a product or service. (Consumer buying behaivor, 2014). In
addition, the analytical tool throughout this thesis is 7Ps rather than 4Ps, since the authors believe
6

the 7Ps promoting mix for trade may even be plenty of precise in this case. The focus of the
analysis space is developed in 2 main phases of discussions. The primary part deals with the ideas
of the modern era and therefore the second contemplate the weather or tools of selling method.
Two distinct concepts of culture are in useterritorial and Trans local, inward and outward
lookingwhich produce divergent views on cultural relations (Pieterse, 2009)

1.1 Background
With over 35,000 locations in 119 countries, McDonalds has the largest fast food restaurants
chain in the world (McDonalds, 2014). McDonalds focused on raising their sales at existing
locations and removing their stores, increasing menu options and extending store hours. There are
two main strategies that are adopted by McDonalds. According to the cultural values, customer
preferences, demographics and spending patterns, McDonald's was introduced new items in their
menu. They are also focused more on increasing their sales at their current restaurants instead of
opening new ones. To do so, McDonald's need redesigned many of their restaurants, and focusing
on the impact of the cultural change in the localizations of McDonalds products.
McDonald's was well-established in Europe, the Middle East, Asia/Pacific Islands, and Africa. Its
enlargement in Europe was dominated mainly by Germany, France and the UK. In Asia, the general
management has indicated that there was important potential in the China market. Below is a list
of McDonalds International Revenues. McDonalds had some main advantages like: They had a
strategy of uniform menu offerings that can be accumulation produced and lowering costs of
production, bargaining power with the suppliers reduced input costs with improved margins at
McDonalds and big costs for advertising make lots of exposure towards domestic level and
international markets

1.2 Rational for the study

Multinational companies (MNCs) are the organizations that are operational in more than one
country. (Bruno Dyck, 2010) These are the organizations that play a vital role in the development of
the country. These organizations contribute a huge effort in the economic development of the
country and region. When these companies start operating the businesses, they face different
challenges in shape of different impacting factors. These factors raise an issue in development of
the products. Major factors that impact the product are the external marketing environmental
7

factors. Two countries having different cultures are offered with product with same ingredients,
packaging and branding due to which MNCs faces problems and resistance in adoption. These
factors are known as political, social, economic, technological, environmental and legal. (Shaikh,
2010)
What is the research issue?
For the Pakistan there is difference of social and cultural backgrounds than other countries around
the world. Pakistan is having a strong impact of social, religious and cultural factors on the
products. There is a need to study these factors that impacts the organizations. While development
of the product McDonalds will have to study these factors so that they may face this challenge
properly. For this particular research McDonald branch located in Peoples colony Faisalabad
Pakistan will be focused. After the completion of the research work researcher will be able to
analyze the social cultural factors and their impact on the McDonalds product development. This
study will be helpful for the researcher to complete the course and will help the researcher in
professional career.
Why is it an issue?
The cultural difference is an issue because of the religious affiliation, people in Pakistan are strongly
agreed to eat the non-alcoholic foods. They are preventing from any type of processed fast foods
which are making by the use of any doubted item like: they are often investigating about Halal
meet of chicken. On the other side there is a specific family culture in Pakistan even when they are
going to eat outside their homes. They need a specific environment where they can enjoy with the
families without interfering others. They are having religious background so there is a difference in
the western and Islamic way of serving the people.
Why is it an issue now?
It is becoming an issue now because McDonalds Pakistan is trying to expend their business in
Pakistan. To do so, they need to make their customers satisfy with their strategies and the services
provided to the people in Pakistan. At this stage McDonald Pakistan need to show keen interest in
the social and cultural values of the people in Pakistan.

What could this research shed light on? (Benefits/implications)

This research will focus on the lives of the people in Pakistan, their ideology and norms and their
way of life. This includes the consumer behavior in Pakistan and cultural impact on the business of
multinational companies. Specifically McDonalds Pakistan will consider for this particular research
work to find the way of minimizing the differences among the people in Pakistan and McDonalds
Pakistan.

1.3 Research Aims

The major aim of this research is to focus the cultural changes in Pakistan and impact of culture on
the localization of McDonalds Pakistan.

1.4 Objectives
This research work has some particular objective that is as under:
1.

To identify the factors affecting new product development of McDonalds

2.

To identify the factors affecting the buying behavior changes of customers

3.

To measure the relationship between the new product development and consumer buying

behavior in cultural context.

4.

To recommend a recommendation for the product development of McDonalds

1.5 Research questions

Q1: What are the different social factors in Pakistan that impact the product of McDonalds?
Q2: What are the different political factors in Pakistan that impact the product of McDonalds?
Q3.What is the business opportunities and threats for McDonalds Pakistan?

1.6 Hypothesis
The hypothesis statement is as under:
There is a positive impact of the cultural changes in localization of McDonalds Products. There is
a possibility that this hypothesis has accepted or rejected but it can finalize after analysis of the
research questions.
9

Chapter 2 Literature Review

This chapter has a detail of the literature about the impact of cultural changes in localization
process in the multinational companies. Multinational companies are in operations in more than
one country. (Bruno Dyck, 2010). These are the organizations that play a vital role in the
development of the country. These organizations contribute a huge effort in the economic
development of the country and region. When these companies stared operating the businesses,
they face different challenges in shape of different impacting factors. These factors raise an issue in
development of the products. Major factors that impact the product are the external marketing
environmental factors. Two countries having different cultures are offered with product with same
ingredients, packaging and branding due to which MNCs faces problems and resistance in
adoption. These factors are known as political, social, economic, technological, environmental and
legal. (Shaikh, 2010)
The review critically evaluates the fashionable promoting views and tries to signify the
connectedness of together with cultural aspects within the promoting campaign. Its probable that
cultural approach can increase the marketability of the merchandise. The body of information
among the literature has been taken to border a booming analysis model. Areas of discussions
embody shopping for behavior, whole loyalty, impulse shopping for and medium of
communication. In this view, the negotiated culture of the organization is a dynamic amalgam of
various cultural spheres of influence, including but not limited to national cultures of origin
(Brannen, 2009).
Organizations cultural adaptation measures did contribute to this study by adding reliable
materials. As another piece of the previous relevant works, Yu and Zhang (2009) elite
Organizations as two samples to review the role of cultural variations in international promoting.
Therefore on hold on the study, they interviewed several promoting managers of Organizations to
urge information of their marketing ways that, once that they thespian a conclusion that culture
variations influenced the 4P marketing ways that in every the companies in many ways that during
which. Being fully totally different from their perspective from the companies facet, the authors of
this thesis are willing to explore the variations of cultural adaptation measures through customers
eyes, and a lot of study are reaching to be carried on to hunt out the foremost significantly adapted
promoting factor(s) poignant consumer different. Consumer buying behavior is the sum total of a
10

consumer's attitudes, preferences, intentions and decisions regarding the consumer's behavior in
the marketplace when purchasing a product or service. (Consumer buying behaivor, 2014). In
addition, the analytical tool throughout this thesis is 7Ps rather than 4Ps, since the authors believe
the 7Ps promoting mix for trade may even be plenty of precise in this case. The focus of the
analysis space is developed in 2 main phases of discussions. The primary part deals with the ideas
of the fashionable era and therefore the second contemplate the weather or tools of selling
method. Two distinct concepts of culture are in useterritorial and Trans local, inward and
outward lookingwhich produce divergent views on cultural relations (Pieterse, 2009)

2.1 External environmental forces

Organizations that are having business in different countries and regions face different problems
and challenges. These factors impact the organization externally and may not be controllable by
the organizations. (Mike Morgan, 2010) That is why they are counted in external environmental
factors. Sometime these factors are also known and called as PEST or PESTLE analysis. These factors
are not controllable by the organization. Products development is the process in which products
are designed for the customers to be offered against the value in return. This process involves the
different steps by which organizations are able to develop the product and satisfy the needs of the
customers. These steps are; Idea generation, Concept development, Business opportunity, Product
development, Market validation, and Launching the product (IL Sandvik, 2011).
Demographics - Demographics are the characteristics of the target market that includes the age,
sex, region and income level etc. These demographics analysis are very helpful to study the
different aspects of customers and market. By this analysis organizations can design and select the
target market.
Mobility of market - To examine the causal relationship between homeownership and mobility we
need to consider an appropriate control group for homeowners (Winkler, 2010). Population size
and mobility of the target market are also one of the social factors. In factor the mobility and
trends of the market are analyzed. By this the real market demands are analyzed. Standard
economic theory holds that geographic mobility plays a key role in the functioning of
the market mechanism by ensuring a smooth transfer of labor out of contracting locations and into
expanding ones (Rainer, 2009).

11

Culture and traditions - Cultures and traditions are the areas that impact the organization and
strategies of the organizations. These strategies also include the development of the product as
well. Cultures can change over time, but they tend to be very persistent (Stam, 2010)
Religious back grounds - Cultural values also include some religious aspects as well. In many third
world countries there are many types of cultures and religions live together. If the products are not
according to their religious beliefs it will impact negative. For example Hindu religion doesnt like to
eat meat of cow. (MJ Gelfand, 2011)

2.2 Adaptation vs. Standardization

When a private or a company initial enters a replacement atmosphere with varied culture, it's
generally accepted that the society communication will manufacture stress for them. Facing such
pressure, some choose to keep their own characteristics (standardization), but others prefer to be
a vicinity of the new environment with their own choices (adaptation). The question of whether or
not or to not adaptor to standardize global markets has received nice attention throughout the last
four decades (Wolf, 2011).
Many critics, however, have argued that standardization is not potential or fascinating attributable
to variations in the legal, cultural, and environmental condition environments .Even beneath widespread adoption of mass customization techniques, the issue of adaptation still should be taken
into thought. Modification in choices or product to satisfy local consumer needs is usually a
requirement for coming back into foreign markets (Marchant, 2010).

2.3 Culture and Cultural Adaptation

In terms of the definition of culture, Hofstede (1984) accustomed define an awfully common but
inaccurate set of models: Culture is that the collective programming of the human mind that
distinguishes the members of one human cluster from those of another (Van, 2011). Culture
throughout this sense is also a system of conjointly management values. In the book of Culture
and International Business (Becker, 2005), the author offered an easy but updated definition to
make it easy to understand: Culture is everything that people have, think, and do as members of
their society, that demonstrating that culture is made from (1) material objects; (2) ideas, values,
attitudes and beliefs; and (3) mounted, or expected behavior. When get right down to a narrower
thought of cultural adaptation in some specific market, it area unit usually thought-about as a form
12

of activity adaptation of the current organization as a legal person. For example, contemporary
American culture offers a number of practices designed to achieve the overarching culture
(Kitayama, 2011)

2.4 Culture in marketing

Culture is the arts and other manifestations of human intellectual achievement regarded
collectively (Oxford Distionaries, 2014). According to Kotler et al. (1996), Culture is that the
foremost elementary reason for a persons wishes and behavior (Aiello, 2014). Herrmann and
Hetman (2006) put together claimed that after developing with merchandising ways in which cross
borders, it is important for multinationals to accept cultural variations, for they result in wholly
completely different consumer responses. Kotler put together explained in his book but culture
influence consumer behavior through social, personal and psychological factors. At intervals the
meanwhile, the cultural, social and personal factors are all respectively influencing the client
behavior at intervals the market. By looking for and understanding the consumer behaviors, firms
area unit able to reach their final decision of merchandising mix. This model is presented as below:

How culture influence consumer behavior? (Source: Kotler et al., 1996) Figure 1

Compared with the new model, the quality merchandising mix model is useful for tangible product.
While the 7Ps model is further useful for services industries and can even be applied to the
knowledge-intensive environment (Aaker, 2009). Booms and Bitner enlarged the merchandising
mix by adding the next 3 additional P's: People, Process and Physical Evidence. The complete ideas
of 7Ps are usually seen inside the graph below:

13

The 7Ps components of the marketing mix (Source: promoting Management P. Kotler, 2009 P. 17Figure 2

However, several criticisms are developed against the selling mixture of the 4Ps or 7Ps, by
distinction of opinion that their lack of strategic content created it unfitted as a planning
instrument; there are two main limitations of the selling mix as management tool, common
altogether examined domains, namely the model's internal orientation and lack of personalization
(Thomas, 2012). There are also some experts criticize that the selling mixture of 7Ps focuses plenty
of on the short term market transactions than associate degree interactive methodology of
relationship building. Facing these criticisms, the authors still elite the 7Ps promoting mix as a
result of the analytical basis for the study, first as a results of the tool of commerce mix is wide
accepted and used globally by scholars and companies to review markets and promoting strategies;
Second, since this study is carried on within the realm of consumer food service, 7Ps are usually
plenty of applicable than 4Ps for the additional 3 things (physical proof, people and process) are
still worth thought for his or her importance and promoting impact in condition industries (Buttle
1986; Brown et al. 1991). The 7Ps promoting mix, notably its components is reaching to be used as
framework inside the design of kind scales that is in a position to be further explained well in
chapter four (Shilbury, 2014).

14

2.5 Cultural Impact on shopping for behavior

Consumer buyer behavior is considered to be an inseparable part of marketing and Kotler and
Keller (2011) state that consumer buying behavior is the study of the ways of buying and disposing
of goods, services, ideas or experiences by the individuals, groups and organizations in order to
satisfy their needs and wants. (ResearchMethodology, 2014). Within the literature, several
researchers claim that consumer's attitudes predict their buying behavior. However, some authors
believe that behavior ought to be evaluated so as to predict shopping for behavior. Behavior is
decided, in whole or half by internal process of data, or the action of mental traits. A vendor is
often termed as booming in his job, once the merchandise data communicated to the target
audiences forms an area of their thinking method.

2.6 Impulse shopping for and shopper selections

Impulse shopping is the buying of retail merchandise promoted by a whim on seeing the product
displayed (impulse buyer, 2014). This role supports an abstract link between epicurean searching
motivation and impulse shopping for behavior. Impulse buying is The buying of goods without
planning to do so in advance, as a result of a sudden whim or impulse (Oxford Dictionaries, 2014).
Previous studies are on impulse shopping for centered on process variations between impulse and
non-impulse shopping for behavior (Cobb and Hoyer, 1986; Piron, 1991). Several researchers have
provided theoretical frameworks for examining impulse shopping for associated with psychological
variables (e.g. temperament, self-regulation), epicurean experiences (e.g. searching enjoyment,
emotion, and mood) and situational variables (e.g. offered time, money) during a searching
context.

2.7 Effective medium of communication

To be effective, communication requires the creation of a common understanding of ideas
(LiveStrong, 2014). Considering individual perspective, purchase is aroused by media to a superb
extent in assortment of data. Before the consumption of product or service a consumer will
validate the information and take a glance at to match up with the utility and personnel satisfaction
that the merchandise offers. To effectively communicate a message, you must understand how a
receiver will process your message. (ehow, 2014)

15

Finding a line where your prospects square measure doable to buy for is that the key to success in
any business. Media bobbing up with, consequently, centers upon the purchasers for the
merchandise or service and their media habits. Most media usage analysis is conducted to identify
the media habits of specific demographic audiences since, for advertising functions, media usage
equates with chance of advertising exposure. Selecting the medium for promotion is that the most
house of study demand for the in marketing of a product.

2.8 Summary
To sum up, throughout this section the theoretical foundations of the thesis are elaborated in
terms of connected things, theories and relationships among them. Firstly, the arguing of
adaptation or standardization is introduced, and important arguments from either side are
compared, planning to supply theoretical supports for the standardization/ adaptation different of
Organizations. Secondly, the authors presented the assorted academic definitions of culture and
cultural adaptation, that's key to the subsequent investigation, narrowing down the discussion of
adaptation strategy to cultural adaptation.
Furthermore, the affiliation between culture and promoting was explained, and so the conception
of commerce variables is introduced. While turning out with the shape, the 7Ps promoting mix was
applied as a result of the scientific foundation and steering, so inside the third 0.5, the 7Ps mix
theory is in addition shortly introduced as a clarification of explanation behind the shape vogue. It
should be planned that each channel of communication is extremely necessary but the localization
of message will grab plenty of interest and it'll have plenty of impact on the customer angle. It will
presumptively satisfy the assumption that the plenty of the merchandise image incarnated then
plenty of area unit aiming to be the response from the purchasers. Preference given to the native
languages in advertisements could also be shown as proof throughout this respect.

16

Chapter 3 Research methodology:

Research methodology is the section of the research work in which methods are discussed in
details. These methods are used by the writer in order to conduct the research and complete the
research work with some conclusions. This research methodology chapter helps the researcher in
understanding better about the research as well as it helps the reader of the dissertation to get
knowledge about the methods by which research work is been carried out (Christopher J. L.
Cunningham, 2013). In this chapter different methods will be discussed that includes, research
design, research approach, research type, data collection methods, data analysis methods, data
reliability, data validity and limitations of the research work.

3.1 Research purpose:

Researcher designs may be of different types that are adopted after the analysis of the research
(Louis Cohen, 2013). For this research work researcher has designed descriptive research design. In
this research design data is collected and interpreted to analyze and find out the findings. These
findings lead the research work towards the conclusions and results. Research questions are
designed and they are answered in the light of data analysis and findings. The researcher will adopt
the primary data collection method. In this method questionnaire, interviews, focus group and
observation are the key major tools by which data is collected. Researcher will use a survey
questionnaire as the data collection tool by which data will be collected. This questionnaire will be
consisted of number of questions that may be open ended or close ended. Secondly the researcher
will conduct interview of the concerned people. Mostly interviews are used to wide our knowledge
about individuals thoughts, behaviors, feelings, meanings and interpretations. One of the best
methods is the detailed collection of the individuals information for some specific purpose.
Projective techniques are indirect form of questioning. It allows the respondent to project their
beliefs, opinions, feelings, attitudes and emotions on an issue of concern. This interview is the way
of conversation for the objective. A large amount of data need to collected for the experience of
the others by asking them the questions of the relevant topic. Some research questions are easy to
answer as these are in mode. Often conduct interviews with semi-structure because these
interview questions are more flexible and can easy to respond by the customers and they are
feeling a sense of suggestion taking form them.

17

3.2 Research Philosophy

What research philosophy can be adopted in this research work? The diagram below is the detailed
presentation of the process of research. There are certain requirements of the research that must
focus during the process of data collection and data analysis. Various techniques can use to collect
that data with primary sources and the secondary sources. Primary data is obtained from the
organization or institution that originally collected the information. (E.Burt, 2009). There can be a
qualitative data analysis and quantitative data analysis methods to conclude the results. Managing
the time and resources are necessary to get some specified outcomes. Time management is a way
to develop and use processes and tools for maximum efficiency, effectiveness and productivity.
(Forsyth, 2008).

Research process Figure 3

There are three types of research philosophies which are commonly uses in research and sets out
direction, i.e. the Positivism, Realism and Interpretivisim. Interpretivisim philosophy is normally
used in the zone of management research. The priority is given to the values, views and beliefs. The
subjective substance possesses high priority to the rules and regulations (Bryman, 2001).

18

3.2.1 Positivism
Positivism contains objective practice. The main emphasis of the researcher is to structure the
exploration of the social domain by utilizing the ideology awareness of subjectivity (Cooper and
Schindler, 2006). This style is a quite rigid one, the researcher needs to dedicated on the gathered
evidences irrespective of the own theories. Facts and figures with numerical data are calculating.
In the organization various flows of information handling and encoding are implied. The decision
flow is from top to down if there is a centralized structure. Centralized structures may demonstrate
indifference or hostility to changes that are driven from the 'bottom up'. (Dixon, 2012).
3.2.2 Realism
There are some actual beliefs and theories are called realism (Sankey, 2012). There are two main
types of realism called the critical realism and the direct realism. Directing thinking of the people is
called the direct realism while the critical realism means the explanation of influences of people
according to the understanding.
3.2.3 Interpretivisim
Interpretivisim philosophy style is the normally use in the zone of the management research. The
priority is given to the values, views and beliefs. The subjective substance possesses high priority to
the rules and regulations (Bryman, 2001). This suits best to the corporate situations where views
are greater than the tight rules.

3.3 Research Strategy

Research strategy is the process through which the researcher conducts the research to find out
the results and findings (Mazzola, 2010). Strategy is a study design and it also involves different
data collection methods and analytical tools by which findings will be derived. These findings
further lead the researcher towards conclusions and recommendations. In this research work,
different research techniques will be discussed that we will adopt in order to conduct the research.
This part also tells the reader about the methods that will be adopted to conduct the research. So
we can say that research strategies provide us ways for conducting the research successfully in
order to achieve the pre-set objectives.

19

3.4 Research approach:

In research work, there are different types of research approaches available for the researcher to
conduct the research. These research approaches are adopted by the researcher rafter the analysis
of the subject area (Mark Easterby-Smith, 2012). There are two different research approaches
available for the researchers under which the research work is carries out. These research
approaches are; (Wilson, Essentials of Business Research, 2010)
1.

Inductive research approach

2.

Deductive research approach

3.4.1 Inductive research approach:

Inductive research approach is a research approach that starts from the observation, lead the
research work towards the patterns and ultimately a theory is formulated. So we can say that it is
an approach that begins with a topic and move towards generalization. (Mark N.K. Saunders, 2011)
As it starts from the observation and end on the result of the observation in shape of the theory so
there are normally no hypothesis involved. There would be no theories involved in these methods
from the start of the research. That is why this theory is also known as the specific to generalization
approach. It is also clear from the diagram below;

(Babbie, The Practice of Social Research, 2012) Figure 4

Is also referred as the bottom to up approach as it moves upward, in which an observation is lead
towards the theory formulation. It is also explained in the image below;

20

(Tavakoli, A Dictionary of Research Methodology and Statistics, 2013) Figure 5

3.4.2 Deductive research approach:
While on the other hand, talking about the deductive research approach, it is concerned with
designing of the hypothesis and a strategy to test that hypothesis. Further explaining the deductive
research approach, by the means of hypotheses, which can be derived from the propositions of the
theory? So we can say that deductive approach is basically the deducting conclusion from the
hypothesis testing and theory. It is also known as the research approach that is from general to
specific as it starts from the theory and after the theory testing observation is formed. When a
deductive research approach is set up a list of hypothesis is formulated that are further tested by
different tools and methods. After those testing of hypothesis it is results are gained and theories
are formulated. It is also been shown in the image below;

(Hartas, 2010) Figure 6

Deductive research approach explores a known theory or phenomenon and tests if that theory is
valid in a given circumstances. The deductive approach follows the path of logic most closely. The
reasoning starts with a theory and leads to a new hypothesis. This hypothesis is put to the test by
confronting it with observations that either lead to a confirmation or a rejection of the hypothesis

(Hartas, 2010) Figure 7

3.4.3 Selected research approach:
In this research work the researcher is not formulating a new theory, but only providing
justifications on the selected method. Deductive approach is the selected approach for this
21

research work. In this research major focus will be on the secondary sources and articles, journals
and other published materials.

3.5 Data collection:

For the research work the most important task is the collection of the data from different sources.
These sources lead the researcher to collect the data that is further analyzed to find out the
findings and results. An effective data collection helps the research to find out the findings that are
more relevant and accurate. A right source of data collection leads the researcher and research
work to generate a good quality research work. Normally data is collected from two different
sources, that are listed as under; (Wegner, 2010)
1.

Primary data collection

2.

Secondary data collection

3.5.1 Primary data:

First time data collected by the researcher is known as the primary data collection in which
researcher himself collects the data. In this type of data collection there are no previous data
collection efforts been made neither there are any type of analytical tools been applied. (K, 2010)
Normally researchers apply this type of collection method and adopt these sources when there are
feedbacks from the respondents or the results are gathered from different samples. In primary
data collection method, there are different tools and techniques that are adopted. These
techniques and tools are questionnaires, interviews, focus group discussion observation and
surveys. As the data is collected first time by the researcher so there may be a high cost of data
collection bear by the researcher. This cost of data collection is high because all of the data is fresh
collected.
3.5.2 Secondary data:
This is the data collection method that is used when researcher needs the data that are already
been collected by other researchers or sources. So researcher adopts and collects the data as it is
relevant to his own research work. As the data collection is been made from the other sources on
which data is already available so this method is relatively less expensive for the researcher.
(Vartanian, 2010) In this data collection method, data is collected normally from the internet

22

sources, articles, journals, books, academic material that is already been published. It is important
for the researcher to collect the secondary data from the sources that are more relevant, accurate
and reliable. Validity of the research must be kept in mind by the researchers during data
collection.
3.5.3 Selected method:
For this research work as the topic area is based on the McDonalds and impacts of the cultural
factors on the McDonalds so researcher has adopted the secondary data collection techniques. In
this technique secondary data will be collected from the articles, journals and other academic
sources on which cultural impacts on the organizations like McDonalds are been researched. This
secondary source of data collection is more relevant to the research questions as the research
questions are based on the impacts of the cultural factors on McDonalds Pakistan. For the market
of Pakistan it may not be possible for the researcher to study whole Pakistan through primary data
collection. So, Secondary data collection can be helpful to study the subject area effectively.
As we look for the research questions and research objectives there are a number of research
questions and research objectives that are based on the study on the cultural factors that are
impacting the McDonalds. To study these factors it may not be possible to conduct the primary
data collection through questionnaires, interviews or other sources. So most feasible way to collect
the data is by means of secondary data collection.

3.6 Data analysis:

After the collection of the data from different sources, next area of the research work is data
analysis. In the data analysis portion there are different ways and techniques that are available for
the researchers. But mainly there are two types of data analysis methods that are adopted by the
researchers. Researchers adopt these techniques after the careful analysis of the data collected
and subject area of the research. If the data analysis technique is properly adopted and relevancy
of the analysis technique is more closer to the collected data, results will be more reliable and
accurate. Analysis of the data can be made by two different ways listed as under; (Larry Dwyer,
2012)
1.

Quantitative analysis

2.

Qualitative analysis
23

3.6.1 Quantitative data Analysis:

Quantitative analysis is the analysis in which data is analyzed by the means of quantitative
measures. These quantitative measures include the analysis of the data by application of the
different formulas, statistical measures and other quantitative measures. These measures involve
the analysis of the data by means of statistical tools, techniques that normally used by the
researcher when the data is of numerical form. To analyze the data in terms of quantitative
measures, data is transformed into numeric form first, and then different tools like mean, median,
mode, regression, correlations and sampling are implicated by the researcher. In the quantitative
research different software are also used. (Wetcher-Hendricks, 2014) This software includes MS
applications like Excel and other third party SPSS software for the application of the different tests
like T-Test, U-test etc. When the data is in shape of the response of the respondents then data is
analyzed by the quantitative methods. Surveys, questionnaires and other feedback forms are some
of the examples to collect the data for the quantitative analysis.
3.6.2 Qualitative data analysis:
For the data that is not quantifiable, or they are not considered to be analyzed in terms of
statistical measures, qualitative data analysis is implied. This type of the analysis is normally
conducted by the help of discussions, interpreting the data and comparison of the different
discussions and facts collected by the researcher. (Friese, 2014) Normally it is considered that this
type of data analysis is difficult for the researcher as they have to bring out the results with out of
any help of the software and other third party tools. Researchers have to complete the research
analysis by the help of discussion, interpreting the data and comparison of the data collected.
3.6.3 Selected method of analysis:
For this research work as the data collection method is based on the articles, journals, case studies
and other academic materials that may be analyzed by the help of qualitative data analysis. In this
research work quantitative methods used to conduct the analysis, because the researcher is using
only the secondary data. It will improve the validity of your research. The analysis section of the
research should be more value adding since the researcher is using only the secondary sources to
collect data. Quantitative data by definition are pieces of information that fit into certain
categories, which in most cases have been previously defined. It includes the aggregate of facts and
figures, affected to a market extent by multiplicity of cases, enumerated or estimated, according to
24

the reasonable standard of accuracy for a predetermined purpose and placed in relation to each
other. For the quantitative data analysis huge numbers of numerical facts and figures are using.
During the process of surveys and the collection of the facts different statistical techniques are
using. And then rearrange the data for some specific purpose and analyze with the different
statistical techniques. For example: Measures of central tendency, measures of dispersion,
Measures of skewers, Probability, Binomial and Normal distributions, Sampling distribution, Index
numbers etc. At the end present the results in the numeric form.

3.7 Limitations:
Secondary research is considered as the most widely used method for the data collection. In this
process the already gathered information is accessed, it may be gathered either from the originator
or the distributer of primary research. The third party source such as the sales and accounting
records, magazine articles company websites and the marketing research reports contribute as a
source of information in the process of secondary research. Any previously gathered information
used by the marketer from any internal or external source is included. There are some limitations
of the secondary data collection i.e. the quality of the research may be compromised, the data
obtained may not be according to the researchers need and expectations, and there may be
incomplete information obtained.

25

Chapter 4 Results & Analysis

4.1

Results

Culture is basically represents the human ideas, actions and norms of living. In Pakistan there are
rich traditions and culture found on the basis of Islam. In this culture there is impact of
globalization at the business level. This also makes changes in the lives of the people in Pakistan.
Pakistani culture has the following features:

Islamic norms and values

National and regional languages
Mixed culture
Rich literature

Here are some facts and figures about Pakistan

Official name

Islamic Republic of Pakistan

Area

796,095 sq km

Population

147,663,430 (2002 estimate)

Population growth

2.06 percent (2002 estimate)

Urban/rural distribution
Share urban

37 percent (2000 estimate)

Share rural
Linguistic and Ethnic groups

63 percent (2000 estimate)

Punjabi

48 percent

Pashtun

13 percent

Sindhi

12 percent

Saraiki

10 percent

Urdu

8 percent

Other
Religious affiliations

9 percent

Sunni Muslim

77 percent

Shia Muslim

20 percent

Christian, Hindu, and other

Literacy rate

3 percent

Total

65 percent (2001 estimate)

26

Female
Male

51.5 percent (2001 estimate)

77.7 percent (2001 estimate)

Pakistan facts and figures (RAUF, 2014) Figure 8

The fast food industry in Pakistan is experiencing a raised flare. Regardless of furious competition,
this industry has figured out how to produce gainfulness and is generally welcomed by the
neighborhood masses too. Late facts have uncovered that fast food industry is the second biggest
in Pakistan, with pretty nearly 169 million buyers (Rummel, 2011). An industry with such motion
has an incredible likelihood of remarkable development in future also.
The reactions confirmed that a bigger extent of females is going to fast food chains than their male
partners. The results demonstrated that KFC and Pizza Hut have developed as the most expended
fast food chains among both the genders orientations furthermore, crosswise over both the age
bunch. An alternate fascinating key finding was that McDonalds was more prevalent in females
than in guys. Purportedly, 42 percent females expend McDonalds as contrast with just 33 percent
of guys (Danko, 2010).
As far as inclination of fast food among the two distinctive ages gathers, an interesting revelation
was uncovered. The review results exhibited that the normal recurrence of going by Fast Food
chains is practically once for every week for both the age bunches. Despite the fact that, young
people are more inclined to visit all the more, still develop grown-ups have showed a higher liking
towards fast food utilization. But Dominos' and Chicken Cottage, the various fast food chains are
more main stream among the experienced division.
At city level, the accompanying conclusions might be concentrated from the study discoveries;

The most conspicuous and expended fast food chains in Islamabad/Rawalpindi are; KFC,
McDonalds, Domino's Pizza and Chicken Cottage
In the event of Karachi, Pizza Hut, Bar B Q Tonight, Nando's and Arizona Grill are
performing route better than in other two urban areas.
Hardee's is performing somewhat preferred in Faisalabad over other two urban areas, in
like manner; Subway is performing hardly well in Karachi.

Analyzing competitors - KFC (Kentucky Fried Chicken)

Kentucky Fried Chicken, otherwise called KFC, is the biggest chicken restaurant network worldwide
with very nearly 10,000 outlets placed in well in excess of 70 nations. Headed by CEO, David

27

Rodgers, it is some piece of the Artal Group, which is a huge multibillion-dollar nourishment
combination. Said to be the second most acclaimed and biggest fast food establishment on the
planet is No. 1 brand in Asia with business initiative in Japan, China, Malaysia, Indonesia and Korea.
Authentic Background of KFC
In1952 Pete Harman in Salt Lake City turns into the first Kentucky Fried Chicken franchisee. In 1982
KFC turns into a subsidiary of R. j. Reynolds Industries when Heublein Inc. is obtained by RJR (now
RJR Nabisco, Inc.). 1986 KFC turns into a subsidiary of PepsiCo, Inc. for $840 million. 1993 KFC
includes non-broiled chicken to menus in the U.S. also Australia. 1994 KFC authoritatively opens its
9,000th restaurant on the planet in Shanghai, China- and proclaims a $200 million venture
throughout the following four years for 200 restaurants in 48 Chinese urban communities (Delios,
2012).
KFC Arrives in Pakistan
In 1998, KFC entered the business sector under the flag of Artal, and European nourishment
combination that has put intensely in the sustenance part in Pakistan. This extraordinary step was
taken out of unique sympathy toward center and lower-working class wage bunches who had so
far being ignored by brand name establishments in their territories.
Passage of KFC in sustenance industry has brought about various positive improvements in
different regions. Each KFC restaurant utilizes about 50 neighborhood individuals, which would
aggregate to around 500 immediate workers in all taking in every one of the 10 restaurants in
Pakistan (M, 2012).
Feasible arrangements
Artal's arrangement including opening an aggregate of 20 outlets before one year from now's over,
which is required to increment to 30 by the year 1999, 45 outlets by the year 2000 and 65 outlets
by the year 2001 and an alternate 40 outlets by 2003. The principal of these outlets was opened in
Karachi amid its first month pulled in a normal of 5,000 buyers for every day, while the second
outlet was opened in the biggest carnival of the city in the month of April. The third one was
opened in Lahore amidst the year.

28

Pakistan is an area where different societies exist together and this uniqueness is reflected in the
dietary patterns of the overall public also. As of late, wonderful change has happened in
nourishment utilization of the Pakistani stacks. Fast food utilization has expanded greatly. This
emotional movement towards fast food utilization is principally on the grounds that individuals
incline toward accommodation and great taste. Due to the developing business sector drift in this
specific industry, the easy taste among the masses is currently congregating.

Restaurants visited by gender (The Dynamics, 2014)

The changing shopper inclination, moving ways of life and vicinity of multinational chains have
further encouraged and activated fast food utilization in Pakistan. The previously stated overview
comes about likewise show the predominance of multinationals, this is on account of these anchors
have depended on business sector headed methodologies and changed their menus so as to fulfill
purchaser needs.
Allegedly, fast food industry in Pakistan is still in its 'early stages', as cited by McDonalds Pakistan's
Country Director. Besides, late detail additionally exhibit that development in fast food in
increasing 20% yearly, which intimates that this is one the quickest developing organizations in
Pakistan. Likewise, this implies a strong undiscovered business which might be misused by
neighborhood and in addition worldwide brands.

29

Social and cultural environment of Pakistan

The interest for remote sustenance things is expanding at quicker rate in Pakistan on the grounds
that now individuals are more cognizant about their health particularly upper center and white
collar class; they maintain a strategic distance from nearby nourishments loaded with fats.

Restaurants visited by age group (The Dynamics, 2014)

McDonald nourishment is offered by USA and individuals have the recognition about their brands
as unadulterated and hygienic. At the same time then again the greater part of the individuals
abhors America due to religious grounds and different components like the hamburger utilized
within McDonald sustenance. So McDonald brings to the table those things that are as indicated by
the Islamic society.

30

Restaurants visited by cities (The Dynamics, 2014)

Political and legal environment of Pakistan
In Pakistan political shakiness is exceptionally basic and it is an excessive amount of in light of the
fact that off and on again the Govt. changes over a night, new manages and regulations, the new
Govt. presents strategies and procedures. It makes troublesome for the remote and additionally
neighborhood financial specialists to run their operations viably. Once in a while it prompts poor
interest in this industry and existing financial specialists attempt to withdraw all their speculation.
Thusly the monetary development of the nation decays, on the grounds that the financial
movement is decreased. An alternate reason for the poor law and political circumstance likewise is
the consequence of terrorism in Karachi. So this part obliges a great deal of Govt. backing to run its
operations as needed by the financial specialists.
Competitors of McDonalds Pakistan
As the McDonald has caught expansive market as far as fast food things it is because of its huge
number of franchisees and better quality items and management to its potential clients. At the
same time the competitors are additionally expanding their operations in whichever way
provincially or joint wander with the remote and nearby speculators. Nearby speculators are
additionally putting weight on McDonald and they are likewise expanding their extensions by
31

offering ease items to the clients and that is the reason they are drawing in the extensive number
of clients and it will prompt high rivalry in the business sector and each one will be contending on
the minimal effort of advertising. In this dynamic and unverifiable environment McDonald need to
support its operations.
Target business segment of McDonalds Pakistan
McDonalds needs to pull in the same number of clients as it can. Yet the primary focuses of the
activities by McDonalds are after gatherings:

Children

Youth

High income groups or people

Families

Comprehensively talking, McDonalds need's to pull in the entire business. McDonalds was
focusing on the high income social class until now, however now McDonalds is acquainting some
new item's with penetrate into low pay groups e.g. McDonalds cone for Rs. 15/ - is an exertion to
draw in center wage class and lower income class too.
Right now, market of McDonalds is nearby market of Faisalabad. So we can say that McDonalds is
included in neighborhood advertising i.e. its advertising projects are constantly custom-made to
the needs and needs of neighborhood clients bunches.
SWOT Analysis of McDonalds Pakistan
On the premise of natural dissection of McDonalds, the structural investigation of fast food
industry, and the evaluation of inside assets of the organization, strengths, weaknesses,
opportunities and threats are there for McDonalds:
Strengths
McDonalds in Pakistan is inherited by a ton of qualities which incorporates:

No trade off on nature of items.

Self-administration criteria spare a ton of expense.
Different motivations and bundles for kids.
32

Quality crude material (fixings) in all the items.

McDonalds solid monetary position, developing money stream, strong worldwide vicinity
makes McDonalds one of the buyer items with a high development rate.
Working environment in McDonalds is amicable and all the workers of the organization are
dealt with as parts of McDonalds crew.
McDonalds has menu, which has more broadness and profundity than some other fast
food franchisee in Pakistan.
Well recorded reasonable and strict criteria for recruitment of workers.
Updated preparing projects of workers.
Flexible workforce, which can chip away at more than one employment at once.
Skied and inspired workforce.
Sufficient trusts to put resources into advertising endeavors.
Excellent relations between administration representatives.
Secured occupations.
Good meeting expectations conditions.
Career opportunities for representatives.
Care for the contemplations and temperaments of clients.
Celebrations of principle occasions e.g. autonomy day and so on.

Weaknesses

Alongside a ton of qualities there are a few shortcomings additionally by which McDonalds
endures:
Management of McDonalds does not consider other fast-food chains or outlets in
Faisalabad as its rival e.g. KFC Pizza Hut & neighborhood burger market which are their
rivals in genuine sense.
With the progression of time the costs of McDonalds are expanding. The reason is the
huge piece of altered expenses e.g. altered overheads & settled compensations of every
last one of workers, which increments specifically with the reduction in "generation."
McDonalds fundamental target business sector is a youngster. In any case McDonalds
need to likewise consider the way that conception rate in Pakistan has been diminished
from around 2.3% to 2. % p. a. As such the number of inhabitants in kids is diminishing step
by step so McDonalds need to additionally draw in the individuals who fit in with matured
class.
Dominant class in Pakistan is center pay class for which it is hard to bear the cost of the
menu things of McDonalds or at any rate white collar class can't appreciate McDonalds
item all the more regularly.
McDonalds has item portfolio (menu) of more noteworthy width and profundity; this
expansive cluster of items permits assaults from corner players.
Some of the results of the organization are not intensely evaluated.

33

All the crude materials are foreign from diverse nations; this builds their expense of
creation.

Opportunities

The sublime development in number of stores outlets everywhere throughout the world in
the aftereffect of extraordinary open doors conceded to McDonalds.
Concerning as McDonalds-Faisalabad is concerned it has after circumstances:
McDonalds is the single universal quality- burger chain working in Pakistan, so it has more
benefit potential in Pakistan until now.
By Increasing awareness about low greasy sustenance which are, no doubt gave
McDonalds
Increasing disposable wage in upper and upper-center social classes of urban territories,
which are target business of McDonalds
By reinforcing the promoting deliberations, organization can have more deals as contrasted
with existing deals.

Threats

Threat of new contestants is likewise living up to expectations there in light of the fact that
industry is developing at a fast speed and a great deal of fascination is there for newcomers. Section boundaries are likewise low in Pakistan so this risk truly meets
expectations for McDonalds.
Danger of substitutes is additionally meeting expectations there for McDonalds. Substitutes
for results of McDonalds KFC, Pizza Hut items. A huge residential business sector can
likewise break in any event a little piece of the overall industry of McDonalds.
Double digit expansion overarching in the nation, which thusly builds the expense of
creation.
Continuous degrading of rupee that has expanded the import bill of crude materials.
Imposition of substantial charges on fast food industry including Sales Tax and
Entertainment Tax.

Analysis and discussion

This research work is to analyze the factors that are influencing development of McDonalds
product in Pakistan. To do this McDonalds Faisalabad is focused in this research. The second main
objective is to make understand the relationship among the development of new products and the
behavior of the customers having their specific culture in Pakistan.
In an assorted and complex nation like Pakistan, its hard to grant nonexclusive conclusions that
could be utilized by those needing to work together here. Regionalism, religion, dialect and
34

standing are all variables that need to be considered while working together in India. Conduct,
manners and methodology are all changed relying upon whom you are tending to and the
connection in which they are constantly tended to. Not at all like western social orders, in Pakistan
religion, resignation and communalism are all parts of day by day life and they have to be regarded
for sound and effective business connections. There is a solid feeling of custom tied into day by day
business hones. Regardless of what the business is, outside organizations ought to expect some
level of contrasts all hands on deck standards in Pakistan. Do use titles to address your Pakistani
partners, for example, "Educator" or "Specialist". Do hold up for a female business associate to
start a welcome whether it is verbal or physical. Pakistani men don't for the most part shake hands
with ladies out of admiration. Aside from contrasts like these, there might be inconspicuous
contrasts too. For instance, on the grounds that Pakistan is transcendently Muslim, there can little
things that could influence the transaction. Consuming pork or drinking liquor before Pakistani
moderators may be seen as hostile.
McDonalds fundamental concern is to offer in volume and keep up it on long haul premise. They
are charging a cost, which they think is a reasonable worth to the client, and not on the premise of
rivalry. McDonalds have Mac index, and they don't expand costs even in emergency. McDonalds
worldwide has the same idea of giving nutrition of high quality at low costs. In England, the costs of
their suppers are the same throughout the previous five years. It's basic Economics that when cost
is consistent, the interest develops and when the interest develops, their info value descends and
when data value descends, they can bear to keep up the cost as the volume develops. Indeed the
aggregate expense may develop, however the volume is so much that the prices remain stable. So
offering on shoddy cost has a substantial avocation.
McDonalds Pakistan has a strict strategy of offering at the same cost to whomever buys and
whatever amount he purchases, and they simply don't give any sort of rebate. The first restaurant
of Mcdonald's begun its operations in Main Boulevard, Faisalabad on September 19, 1998 thus in
the accompanying week, the second restaurant began in North Nazimabad, Karachi on September
26, 1998. The arrangement is to have 20 restaurants in the nation out of which seven will be in
Faisalabad and rest in Karachi. In Faisalabad, the development arrangement incorporated the limbs
at Jail Road, Fortress Stadium, and Defense and at LDA Plaza.

35

Ghous Akbar said, "Faisalabad all in all is a family city and Gulberg is a focal range and Main
Boulevard is the absolute most conduit of Faisalabad which is open to individuals of all pay levels.
We additionally have clients who originate from Faisalabad, Gujranwala, Sialkot, and so on. It is
three thousand square yard. So the side corners are likewise included. It's slantingly opposite to
Home Economics College and other scholarly organizations additionally encompass it. We had
30,000 clients a day before all else." It was a wisely chosen area as it is placed close to business
locales, elegant strip malls and the number of inhabitants in Gulberg, itself, is a great business for
fast food.
On the other hand, Amin Lakhani, CEO McDonalds, Karachi excessively has solid reasons and
contentions about selecting the site of North Nazimabad. "It is a solid, instruction and family
situated white collar class range. The greater part of the families living here have joint family
framework. I have not seen such a large number of families sticking around as I did in North
Nazimabad at the dispatch of Mcdonald's. The territory is repressed by a few million peaceful
individuals who need to take their youngsters out, however there aren't such a large number of
spots for the reason. We are cleaning the region and the individuals out there are extremely
cheerful and the administration functionaries are helpful with us."
McDonalds does not offer home conveyance as they are really cognizant about the freshness of
their burgers. Without further excitement, Drive-Thru office is accessible just at the Main
Boulevard Gulberg Branch, Faisalabad; however both GAM and Size gatherings have in their
arrangements to have this office in their new extensions, which are going to open in future.
McDonalds Main Boulevard Gulberg Branch began its operations on September 19, 1998, however
quarter-page promotion about its opening begun showing up in distinctive daily papers in the
second a week ago of August. But the true quality of advancement of Mcdonald's was seen on its
opening day when it utilized practically all the media to tell individuals that Mcdonald's was there
with them to sit tight. On its introduction day, full page promotions showed up in The News, The
Dawn, proclaiming its opening. On that day, Mcdonald's additionally ran a fabulous system of
twelve hours "Mcdonald's Fun Day" on FM-100.
On that day, a live street show was additionally directed at the restaurant, in which the main
Pakistani artists and gatherings took part. This show was gone to by countless. Additionally a
generally decorated float convey musical band, hundred youngsters and Ronald McDonald, the
36

authority representative to kids, ran all the day on the streets of the city. Major medium utilized by
Mcdonald's is boards, which are made by MMT to push their brand. It will be a matter of pride for
Lahories that they have the greatest "M" sign in their city. This "M" is foreign made from Singapore
and is made up of Pylone.
McDonald around the globe put much stress on Television ads, they have created exceptionally
costly TV ad with such brilliant stars of Broadway and games as Naomi Campbell and Ben Johnson.
In any case instantly in Pakistan, Mcdonald's is not utilizing TV medium, as they don't have
sufficient data about TV viewers, likewise the expense of TV advertisements is restrictive in utilizing
this medium.
The publicizing organization working for Mcdonald's in Pakistan is Manhattan Communications
(Pvt.) Ltd., which is a subsidiary of Manhattan Leo Burnnet, USA. This organization handles the
advancement of Mcdonald's in every one of those nations where its extensions, subsidiaries or
organizations are available.

37

Chapter 5 Conclusions and Recommendations

5.1 Conclusions
It is concluded that McDonalds has built a delightful wellspring at in Pakistan with a huge business
enterprise. So also the organization has used enormous whole of cash in revamping open spots,
building green walls and putting dustbins to keep environment attractive, solid and clean.
McDonalds has "Expansive Target" and it needs to attain focused system embraced by McDonalds
is "Separation" i.e. Mc Donald's needs to a make its items interesting and very separated.
McDonalds is evenly incorporating itself by expanding the quantity of outlets. At current timing
there are nine outlets working just at Faisalabad and they have Twenty one outlets in all over
Pakistan. They are likewise arranging firstly to go into the Metro Areas like Islamabad and
Rawalpindi and after that they need to look to Multan.
McDonalds is solidly dedicated to offer once again to the group where we work. We are upbeat to
wind up included on the grounds that we perceive that associations have a part to play in helping
groups to work effectively.
To make social awareness and welfare for the people of Pakistan, McDonalds is earnestly included
in the welfare of the group, wherever it is working. As a piece of RMCCS (Ronald McDonalds
Children Charities), they have arrangements to present low maintenance employments idea on
consistent schedule and for summer occasions.
Ronald McDonald House Charities gives "homes-far from home" for groups of genuinely sick
youngsters being dealt with at adjacent healing facilities. The main Ronald McDonald House was
built in Philadelphia in 1974. Today, the system has almost 200 Ronald McDonald Houses in 16
nations. More than two million families have stayed at a Ronald McDonald House with almost
100,000 families every year

5.2 Recommendations
The third main objective of their research work was to make recommendation on the strategy of
product development by considering the cultural variations. Below are the recommendations by
focusing the cultural variations for McDonalds in Pakistan.
38

Market development
As we know there is expanding pattern in fast food industry and individuals in Pakistan are more
aware about their health. Thus McDonald worldwide ought to open as numerous branches in
different urban areas of Pakistan like Multan, Gujranwala, Hyderabad, and different urban areas
like these. In the said urban areas there is a great deal of potential for the hard interest in the fast
food industry as the culture is changing very fast. So it ought to create the business sector for its
items, just along these lines it can keep up it advantage over its rivals like KFC and Pizza Hut.
Business Enhancement
To make batter relationship with the people in Pakistan McDonald need to give business to the
small owners of different categories for example McDonald ought to let it all out's own particular
steers cultivate in Pakistan so it will diminish its enter expense and it will prompt lower business
sector cost of its items as contrasted with its rivals. So the offers of McDonald might be expanded
by no less than half of current deals volume. By this kind of enhancement McDonalds can likewise
spare now is the right time and different energies that could be better used in client
administration.
By doing this retrogressive settlement McDonalds can maintain a strategic space from the issues
like Govt. substantial obligations on inputs foreign from different nations and comparably it can
avoid the issues of nonstop depreciation and conversion standard and so on.
Product development
The locals of Pakistan are more concerned with the taste of the items as opposed to alternate
things, so McDonalds should consider the progressions in the client mind about its items and
management. So it is very crucial for the McDonald Pakistan to contemplate it and serve as the
progressions are occurring in the client minds. It is urgent for McDonalds, it ought to present all
the time new items that make it separated and it must maintain it so that no other competitor can
duplicate their items and there ought to be lesser possibilities of item impression. So we suggest
that McDonald ought to apply the product development at all times.
Market development
As there is a mixed culture in Pakistan and the people are aware with the changes in the fast food
industry and improvements in the FMCG sector. McDonalds should open new restaurants in
39

different urban communities too. There is potential in different urban communities like Hyderabad,
Rawalpindi and Islamabad. It will be of significance to say that KFC wants to open its extensions in
Hyderabad and Islamabad.
Key indicators
McDonald needs to run from key organizations together with different firms working in all different
nations. This will improve the cooperation of the people with McDonalds and also their interest in
the items of the company. They need to create collusions with the petrol pumps holders. It will
empower the clients to get their autos loaded with petrol alongside the buy of lunch boxes and
other eating and supper offices to the group. We imagine that it needs to create unions with the
petrol pumps on our Motor Way. As McDonalds is doing this in different nations. Moreover the
other McDonalds franchisees in Pakistan must do this with a specific end goal to make additional
uniqueness; so it can make focused edge over its competitors and the cultural difference can
eliminate.
Limitations for further research
A major problem that can be found in the near future is the lack of online data related to the
McDonalds Faisalabad activities to enhance the business. This is because there are still no sufficient
data facts & figures available on the WEB. Due to this, people are not well aware about the
activities of the McDonalds Faisalabad. For further research, it is necessary that authentic data
should make available on the WEB.

40

References
Aiello, L. (2014). In Handbook of Research on Management of Cultural Products (p. 227).
Babbie, E. (2012). In The Practice of Social Research (p. 50). CengageBrain.
Babbie, E. (2012). In Social Research Counts (p. 38). CengageBrain.com.
Brannen, M. (2009). Merging without alienating: interventions promoting cross-cultural
organizational integration and their limitations. Journal of International , 468-489.
Bruno Dyck, . N. (2010). In Management: Current Practices and New Directions (p. 101). Cengage
Learning.
CA Bartlett, S. G. (2000). Going global: lessons from late movers. Harvard business review .
Christopher . . Cunningham, . L. (2013). In Understanding and Conducting Research (p. 21). John
Wiley & Sons.
Collins, H. (2010). In Creative Research; The theory and the practice of the research (p. 42).
Consumer buying behaivor. (2014). Retrieved 2014, from http://education-portal.com/:
http://education-portal.com/academy/lesson/what-is-consumer-buying-behavior-definition-typesquiz.html#lesson
CSS Forum. (2014). Retrieved 2014, from http://www.cssforum.com.pk/:
http://www.cssforum.com.pk/css-optional-subjects/group-b/sociology/72071-media-influencepakistani-culture-identity.html
Danko, W. D. (2010). In The Millionaire Next Door: The Surprising Secrets of ... (p. 14).
David Crowther, . L. (2012). In Research Methods (p. 30). Routledge.
Delios, A. (2012). In International Business: An Asia Pacific Perspective (p. 14).
Dixon, R. (2012). In The Management Task (p. 111).
E.Burt, J. (2009). In Elementary Statistics for Geographers (p. 18).
ehow. (2014). Retrieved 2014, from www.ehow.com:
http://www.ehow.com/facts_5459110_definition-effective-communication-skills.html
Ellen Pastorino, . D.-P. (2012). In Cengage Advantage Books (p. 252). CengageBrain.com.
F, D. (2010). In Managing with Dual Strategies (p. 107).
(2008). In L. J. Forsyth, Time Management Training (p. 1).
Friese, S. (2014). In Qualitative Data Analysis. SAGE.
41

H. Russell Bernard, . W. (2010). In Analyzing Qualitative Data (p. 266). SAGE.

Hartas, D. (2010). In Educational Research and Inquiry (p. 19). A&C Black.
IL Sandvik, D. A. (2011). The Effects of New Product Development Proficiency on Product
Advantage and Tourism Business Performance Evidence from the Norwegian Hotel Industry.
Journal of Travel Research .
impulse buyer. (2014). Retrieved 2014, from dictionary.reference.com:
http://dictionary.reference.com/browse/impulse+buyer
ohn Williams, . C. (2008). In Marketing Management in Practice (p. 231). Routledge.
K, M. N. (2010). In Marketing Research: An Applied Orientation, 6/E (p. 198). Pearson Education
India.
Kitayama, S. (2011). Culture, mind, and the brain: Current evidence and future directions. Annual
review of psychology , 419-449.
arry Dwyer, . G. (2012). In Handbook of Research Methods. Edward Elgar Publishing.
LiveStrong. (2014). Retrieved 2014, from www.livestrong.com:
http://www.livestrong.com/article/67317-definition-effective-communication-skills/
ouis Cohen, . M. (2013). In Research Methods in Education (p. 25). Routledge.
M, . (2012). In Introduction to Cities: How Place and Space Shape Human (p. 377).
Marchant, G. E. (2010). In Thwarting Consumer Choice: The Case against Mandatory (p. 13).
Mark Easterby-Smith, . T. (2012). In Management Research (p. 111). SAGE.
Mark .K. Saunders, . S. (2011). In Research Methods For Business Students, 5/e (p. 126). Pearson
Education India.
Mazzola, P. (2010). In Handbook of Research on Strategy Process (p. 10).
McDonalds. (2014). Retrieved 2014, from http://www.aboutmcdonalds.com/:
http://www.aboutmcdonalds.com/mcd/our_company.html
Mike Morgan, . R. (2010). In Marketing in Travel and Tourism (p. 142). Routledge.
MJ Gelfand, J. R. (2011). Differences between tight and loose cultures: A 33-nation study. Science .
OECD. (2008). In OECD Glossary of Statistical terms (p. 439).
Oxford Dictionaries. (2014). Retrieved 2014, from www.oxforddictionaries.com:
http://www.oxforddictionaries.com/definition/english/impulse-buying
42

Oxford Distionaries. (2014). Retrieved 2014, from www.oxforddictionaries.com:

http://www.oxforddictionaries.com/definition/english/culture
Pieterse, J. (2009). In Globalization and culture: Global mlange (p. 10).
Rainer, H. (2009). O brother, where art thou? The effects of having a sibling on geographic mobility
and labour market outcomes. Economica , 528-556.
RAUF. (2014). Retrieved 2014, from http://www.rauf.com/Facts_figures.html:
http://www.rauf.com/Facts_figures.html
Research Methodology. (2014). Retrieved 2014, from http://research-methodology.net/:
http://research-methodology.net/research-methodology/research-approach/deductive-approach2/
ResearchMethodology. (2014). Retrieved 2014, from research-methodology.net: http://researchmethodology.net/consumer-buyer-behaviour-definition/
Routledge. (2012). In Planning research in hospitality & tourism (p. 42).
Rummel, R. J. (2011). In Death by Government (p. 10).
S. K. MA A , . M. (2013). In RESEARCH METHODOLOGY IN BEHAVIOURAL SCIENCE (p. 70). PHI
Learning Pvt. Ltd.
Sankey, H. (2012). In Scientific Realism and the Rationality of Science (p. 16).
Shaikh, S. (2010). In Business Environment, 2/E (p. 3). Pearson Education India.
Shankar, V. (2012). In Handbook of Marketing Strategy (p. 24).
Shilbury, D. (2014). In Strategic Sport Marketing (p. 10).
Stam, E. (2010). In Entrepreneurship, evolution and geography (p. 139).
Tavakoli, H. (2013). In A Dictionary of Research Methodology and Statistics (p. 273). Rahnama Press.
Tavakoli, H. (2013). In A Dictionary of Research Methodology and Statistics in Applied Linguistics (p.
273). Amazon.com.
The Dynamics. (2014). Retrieved 2014, from http://www.thedynamics.biz/:
http://www.thedynamics.biz/?q=node/19
Thomas. (2012). In Sales Management: Analysis and Decision Making (p. 70).
an, . (2011). In Managing Cultural Diversity (p. 243).
Vartanian, T. P. (2010). In Secondary Data Analysis. Oxford University Press.
43

Wegner, T. (2010). In Applied Business Statistics (p. 27). Juta and Company Ltd.
Wetcher-Hendricks, D. (2014). In Analyzing Quantitative Data. Wiley.
Wilson, J. (2010). In Essentials of Business Research (p. 7). SAGE.
Wilson, J. (2010). In Essentials of Business Research (p. 7). SAGE.
Winkler, H. (2010). The effect of homeownership on geographic mobility and labor market
outcomes. economicdynamics.org , 1-10.
Wolf, C. (2011). In Standardisation Vs. Adaptation - International Marketing (p. 10).
ysursa. (2014). Retrieved 2014, from http://www.ysursa.com/:
http://www.ysursa.com/history/Reference%20pages/Balanced-history.htm

44