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INDEX
1.0 Executive Summary...........................................................................................................3
2.0 Topic....................................................................................................................................3
2.1 Problem statement..................................................................................................3
2.2 Problem significance and background.................................................................3
2.3 The questions which arise are...............................................................................4
3.0 Case study for referring the topic.....................................................................................4
4.0 Literature review................................................................................................................5
5.0 Theoretical framework......................................................................................................7
5.1
Variables.......................................................................................................................7
5.2 The study setting...........................................................................................................8
5.3 Data collection..............................................................................................................8
5.4 Statistical analysis........................................................................................................9
6.0 Conclusion.........................................................................................................................12
7.0 Recommendations............................................................................................................12
8.0 Reference...........................................................................................................................13
9.0 Appendix...........................................................................................................................15
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2.0 Topic:
How the local food chains can be competitively beneficial than the international food
chains?
2.1 Problem statement:
What affects when a worlds popular food chain will enter then local region and what the
choices are taken by the local people from foreign and local food chain and the threat to the
local food chain business?
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what local food chain will do to retain in the business and to attract the customers who are
diverting to the new trends of food by foreign companies. And how can it work with this new
trends and varieties of foods offered by the competitors.
Now well see what kind of the problems are faced with some examples. In many parts of
India Taj Restaurants are providing the fast-food facility and it is working as a local food
chain in India. Until the arrival of KFC, Pizza Hut and Mc Donalds, Taj has been the top
restaurant. It was the best option for the fast-food lovers, and it maintained as a successful
business legend till 1990, but people started to search for new varieties of restaurants. But
even though Taj Restaurants still survive its economical growth is not improving.
2.3 The questions which arise are:
The questions arise are who is the owner of the Taj Restaurants and which country does it
belongs to and who will operate the international food chains in India? What are the affects
when a international food chain enters India and what will be the Indian economy and local
food chain economy due to foreign food chains?
The answers will be: Taj Restaurants belongs to India and owner is an Indian. And the
international food chains are owned and operated by biggest companies in USA like KFC,
McDonalds and Pizza Hut.
The drawbacks of local food chain business to fail are because of the Indian food chain like
Taj Restaurants, Kamat hotels etc and also of the Indian government where they are corrupted
or dont work properly. Hence the problems are:
1) How to give business and job opportunities to the local people?
2) How to help the local food chain business?
3) How to improve the Indian economy by neglecting the rivals with the competitors of
international companies?
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good quality food. He also motivated workers in a planned way and now these twp
restaurants started making profits. Now he planned to open his own brand restaurants under
Kazi Food Corp. With more than 5000 employees working in 250 restaurants Mr. Kazi get
profit of 80 million US Dollars per annum.
Any person can taste a specific food for only one time and never tries to eat daily or
continuously for few days. People always like changes in the tastes and finds new foods. No
one can eat Chicken burger for ten days daily? Is that possible, usually no one tries. So to find
a variety in tastes is a positive thing and not lead any negative effect. If this is tried by Taj
Restaurants then in future if a person finds Taj Restaurant and Mc Donalds, Pizza hut or
KFC he may choose Taj to find new tastes offered.
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have to focus a lot to motivate the employees to work on the process of internationalization,
and this may help the firm to move again with controversy firms again in the global firms.
This makes the new agenda for HR professionals and new demands on the HR activities.
(DENNIS R. BRISCOE, Ph.D.)
As (Chris Scanlan said) There is a culture in the Foods system that is very hands-on and
customer-oriented; that leadership starts at the top. (Susan Sunderland, 2007)
As (Steve Johnson, said),It's hard to get people to apply. It's real, real tough and very
competitive. We're doing this to just give a little added bump to have people come out and
give us a try. (Taj Staff, 2006)
The fast-food restaurants need essential ingredients to maintain high quality, taste. They
should check whether the supply is continuous or not. The basic ingredients include fish
fillets, chicken patties, beef, orange juice and French fries, and they will be the compulsory
menu in the fast-food restaurants. The restaurant chain will supply these products and
distribute to warehouses and then the restaurant will make them into finished food products.
Apart from this Western-trend of fast-food the restaurants are now including Chinese food
which was taken on the customer demand and importance.
As (Juan Mujica, said), Kazi Foods appreciates its employees for their service, since Kazi
acquired the local KFC franchise earlier this year, for their years of service with the KFC
family, and for providing great service and food to the Virgin Islands community. (Tom
Bolt, 2006)
As (Steve Johnson said), Consumers have been asking for it for years, and more people are
health-conscious, he adds. This is good for us, and its good for our core customers who
visit us regularly. This will bring us new customers as well. (Sacha Mendelsohn, 2002)
In the Chinese market also KFC became famous along with the three major markets like
Guangzhou, Beijing and Shanghai, and also in the main cities like Liaoning, Jiangsu,
Zhejiang, Sichuan, Fujian and Guangdong.
The local fast-food restaurants in China are getting ready to face these new and powerful
entries like KFC.
As (Steve Johnson said),Over the next few years, Kazi Foods will invest millions of dollars
in renovations and construction of new locations in Hawaii for its KFC and Burger King
operations. This work will include increases to customer capacity and updates to restaurant
ambiance. (Taj Staff, 2003)
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5.1 Variables
Independent Variable:
The foreign competitors coming into a particular place in the local fast-food business market
is considered as independent variable. Here we interested about the foreign competitors
influence on the local market and their capacity to divert the customers to their side in a given
particular area only when, the foreign franchises enter that area.
Dependant Variable:
The dependent variable will be the influenced by the independent variable, the complete
report analysis will explain how the foreign fast-food businesses will influence the local fastfood businesses from the changing behaviour of the customers to divert from local fast-food
to foreign fast-food in a considered local place.
Intervening Variable:
The foreign competitors will target on the local customers and their behaviour. So the foreign
businesses will focus on the shares, they try to increase their shares by attracting the local
buyers to their new offers from the local fast-food. By this the foreign businesses shares are
increased and local businesses will reduce a lot, and thus the foreigners will win race of the
market share. Hence they can acquire strong roots in the said market.
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* How can local fast-food chains competitive advantageous than the international fast-food
chains?
The international fast-food chains focused on the urban people and their interest to fast-food.
After knowing their fascination towards fast-food the foreign companies like Mc Donald s,
Pizza Hut and KFC opened their outlets in India.
* What kind of factors does the local fast-food chains take care of?
If am coming home from a night shift job and feeling dam hungry and passing through the
road where Taj Restaurant is there so to fill my appetite it will be easy to go, instead of
waiting till home comes and cooking late night after totally exhausted due to job. If India
provides mid-night meals, increasing the number of fast-food restaurants which are open till
late night, and 24 hour service and late night dinner restaurants than the early-closing food
chains. Now a days people are attracted to restaurants which are comfort and easy accessible.
* And what is the final decision to improve the local chains?
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I have noticed by seeing many countries that all of them are operating the same process in
their cities like malls, restaurants, clothing stores etc. So the people and government should
think about these local food chains and help these businesses to live in the market and also
should encourage and support them to operate better.
The local food chain in India is Taj Restaurants and it should enlarge their business by
maintaining best quality of food with reasonable price. It should also able to compete by
facilitating varieties of food.
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Q4. The main reason why the maximum people prefer these fast-food chains on scale of 1-6
ANALYSIS RESULT:
Most of them preferring other fast-food chains than Taj Restaurants are due to the varieties of
taste offered, and the next reason will be the quality which plays an important role to attract
the customers to their fast-food chains side rather than Taj Restaurants. Customers are mainly
interested about the menu, service and price where all are equally preferred, but not about the
external environment which is preferred by very few people.
Q5. The fast food chains preferred on the basis location of the stores?
ANALYSIS RESULT:
The survey which is conducted on the random selected sample shows that fast-food chains
are preferred if they are available through out the city. 73% people are preferring if the fastfood are convenient and have near by stores, and 27% people said no to the preference of the
fast-food chain location.
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Q8. Finding the Taj Restaurants performance based on the following criteria.
ANALYSIS RESULT:
From the survey analysis on 30 samples size on Taj Restaurants customers, many of them
said that its the service offered is not good and because of this fact there is decrease in sales.
And maximum people agree that it provides quality, neatness, and variety and the only one
defect is that there are not good at service and maintenance of the restaurant.
Q10. What is your opinion on loosing popularity of Taj Restaurants and the main factors
influencing it on the scale of 1-7.
ANALYSIS RESULT:
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From the 30 sample size survey 83% believe that Taj restaurants lost its popularity due to the
entry of the international competitors. Maximum of them think that quality and service of the
global food chains are causing to loose its popularity. One more factor is to enhance the
service than the global businesses.
6.0 Conclusion
On the survey report we can declare that the international food chains are attracting factors in
the local market, and this is done from its entrance into the local market. There are lot of
probability to regain local restaurants customers back and also can retain its lost popularity.
The local markets are affected a lot especially we can see decline in the local operator Taj
Restaurants due to the entry of the international businesses into Indian market, the global
markets done this by maintaining its standards. The foreign chains became successful in the
global market it can become successful in our local markets also easily with improved
methods. Thus the local restaurants are failing in the market, and Taj Restaurants are the best
example which it faced loses both in business and economy.
The foreign companies operated unique marketing strategies and local markets were unable
to imitate and moved away from the market and the customers also changed their options.
This situation is still continuing without any change and from our survey analysis many
consumers suggested Taj Restaurants to modify the defects very fast. A very big drawback to
the Taj Restaurants is that 63% of consumers havent tasted its food, and this is a serious
issue to discuss since it has been in the market since long time in its local town. There is huge
decrease in the profits of it because of its service and accessibility.
By adopting good methods and new innovations Taj Restaurants can regain its consumers
back and also the profits can be improved extremely. By considering the good methods taken
up by the Taj Restaurants as competitively advantageous and compete then it can grow
quickly, and it can also able to find the threats and face them confidently.
7.0 Recommendations
From our survey many respondents recommended Taj Restaurants to improve and become
competitively advantageous over the foreign fast-food markets.
After the entry of foreign markets since ten years in local markets they played many tricks to
catch the customer with innovative thinking. So due to such fascinating tricks and new
attracting offers the consumers diverted easily from Taj Restaurants to these foreign entries.
Taj Restaurants should think again in its advertising strategy and promoting campaigns. To
convince the customers easily in less time the most adopted method used in this media
generation is advertising in the media channels. So Taj Restaurants should use this number of
mediums available to advertise like radio ads, personalised advertising, hoardings and
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billboards, print media and the most important and useful of all mediums is electronic video
media i.e., television advertisements.
The pricing is the next main factor for customers to change Taj Restaurants position in the
market. Basically it is a locally operated chain of market consumers may expect the prices are
comparatively low than the foreign food chains, due to the societal mindset there are always
conflicts when the local and foreign chains are discussed. By reducing the price of the Taj
Restaurants products will become advantageous than foreign food chains to improve profits.
Another important factor is location of the branches in many parts of city. From survey report
conducted on the Taj Restaurant consumers many said that they can easily find the Taj
Restaurant stores in their location and can also convenient to reach the location. Even though
few of them suggested open new branches in some places.
8.0 REFERENCES
Business Publications Staff Feb 13, 1998,KFC franchisee spreading company wings
http://findarticles.com/p/articles/mi_qa5295/is_199802/ai_n24333597; Accessed on 9th May,
2011
DENNIS
R.
BRISCOE,
Ph.D.,
Learning
to
Thrive
http://www.globalhrnews.com/story.asp?sid=68; Accessed on 9th May, 2011
on
Chaos
Kak Anjana, December 1, 2002, Sustainable Competitive Advantage with Core Competence
http://www.highbeam.com/doc/1P3-682851121.htm; Accessed on 9th May, 2011
Marr,
Jack,Hatfield,
Alcinda,
Tuesday,
July
1
1997,
AgExporter,
http://www.allbusiness.com/agriculture-forestry-fishing-hunting/629536-1.html; Accessed on
4th May, 2011
Sacha Mendelsohn, Friday, July 5, 2002, US Foods acquires Hawaii Burger Kings,
http://www.bizjournals.com/pacific/stories/2002/07/01/daily61.html; Accessed on 4th May,
2011
Susan Sunderland, Wednesday - March 28, 2007 Something To Crow About
http://www.midweek.com/content/story/midweek_coverstory/something_to_crow_about/P1/;
Accessed on 9th May, 2011
Tom Bolt, November 1, 2006, Kazi Foods Closes Buccaneer Mall Restuarant,
http://lawblog.vilaw.com/2006/11/articles/labor-employment/kazi-foods-closes-buccaneermall-restuarant/; Accessed on 10th May, 2011
Torres Kitamura, August 1, 2004, A whopper of a tale.(Kazi Foods)(Kazi Foods Hawaii),
http://www.highbeam.com/doc/1G1-120350663.html; Accessed on 9th May, 2011
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Equitymaster (2009, July 10). Country analysis of India according to Hotel Industry.
Retrieved 10th May, 2011 from, Web site:
http://www.equitymaster.com/research-it/sector-info/hotels/
http://www.hospitalityebusiness.com/?chebs=hebs_ppc&s_kwcid=TC|14432|hotel
%20marketing%20strategies||S|b|2599870157
Professor Khan, R (2010). Taj Hotel Resort and Palace. Retrieved 10th May, 2011 from,
Web site:
http://www.slideshare.net/mukesh_24pandey/taj-hotel
Scribd (n.d.). Indian Hotel Industry. Retrieved 10th May, 2011 from, Web site:
http://www.scribd.com/doc/26045770/indian-hotel-industry-analysis
Slideshare (n.d.). Analysis of Hospitality sector of India. 6th May, 2011 from,
Web site:
http://www.slideshare.net/ashwin891/project-on-taj-hotels
http://www.startupbizhub.com/swot-analysis-of-hotel-
Tajhotels (n.d.). Company information of Taj Group of Hotel. Retrieved 10th May, 2011
from, Web site:
http://www.tajhotels.com/abouttaj/companyinformation/default.htm
Tajhotels (n.d.). History of Taj Group Hotel. Retrieved 9th May, 2011from, Web site:
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http://www.tajhotels.com/abouttaj/companyinformation/HistoryOfTaj.htm
Tata (2011). Taj Hotel Marketing Plan. Retrieved 10th May, 2011 from, Web site:
http://www.tata.com/company/Articles/inside.aspx?artid=dFw8+5jIA6A=
9.0: Appendix
Questionnaire
------------------------------------------------Top of Form
------------------------------------------------This survey intension is to find the affect of foreign fast-food chains over local fast-food
chains. It will explain how the buyers are diverting away from local food chains to foreign
food chains, and what efforts kept by these local food chains to bring back its old consumers.
Age: _____
Gender:
Female
Occupation: Student
Male
Other__________
Once
Twice
Thrice
Yes
No
Pizza Hut
Mc Donalds
Any other preferred one______________
4. Can u reason why you what attracted in this given fast-food chain?
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Menu
Price
Service
Restaurant environment
Quality
________
________
________
________
________
5. Are the preferred fast-food chains stores located conveniently to the people all over the
city?
Yes
No
6. Can u elaborate your preferred fast-food chain from the following criteria? (Tick the
chosen number)
| Strongly Agree
Somewhat Disagree |
| Neutral
| Somewhat Agree
| Strongly Disagree
|1
|2
|3
|4
|5
|2
|3
|4
|5
|1
|2
|3
|4
|5
|2
|3
|4
|5
|1
|2
|3
|4
|2
|3
|4
|5
1|2
|3
|4
|5
|1
|2
|3
|4
|5
|1
|2
|3
|4
|5
|1
|1
|1
|5
Very Satisfied
Very unsatisfied
3
Unsatisfied
4
Neutral
5
8. How much most likely to recommend the preferred fast-food chain to others like
colleagues or friends?
Unlikely
Very unlikely
Very likely
Likely
Neutral
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9. Do you at least eat Taj Restaurant food once? (If no then omit the next three questions)
Yes
No
10. Can you rate Taj Restaurants on the following criteria? ( more than one option can be
selected)
Menu
Service
Quality
Restaurant environment
Price
________
________
________
________
________
| Neutral
| Somewhat Agree
| Strongly Disagree
|1
|2
|3
|4
|5
|2
|3
|4
|5
|1
|2
|3
|4
|5
|2
|3
|4
|5
|1
|2
|3
|4
|2
|3
|4
|5
1|
2|
3| 4
|5
|1
|2
|3
|4
|5
|1
|2
|3
|4
|5
|1
|1
|1
|5
12. Are the Taj Restaurants stores located conveniently to all the people in the city?
Yes
No
13. From the entry of the foreign fast-food restaurants like Pizza Hut, Mc Donalds and KFC
in India how the Taj Restaurants popularity affected?
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(If you choose it has lost popularity then please omit the next question)
14. In your opinion can you rate the main probable factors of Taj Restaurants popularity
lose?
15. What can you suggest that Taj Restaurants to do to get back its consumers back freom the
foreign fast-food chain competitors?
____________________________________________________________
__________________
____________________________________________________________
__________________
____________________________________________________________
__________________
16. Our questionnaire was:
Excellent
Good
Interesting
Bad
Boring
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