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1.1 Introduction
The dissertation aims to compare and critically investigate the entry modes available for fast food chain across different countries and critically compare them with the entry modes available to similar restaurants in Nigeria and Ghana.International Market Entry Strategies: The Nigerian Fastfood Market.
Firstly, the chapter discusses the background of the research and highlights the problems that will be answered by this research. Then the chapter discusses the motivation of the research, research aims and objectives and research questions to highlight the areas which will be covered in the dissertation.
The chapter also discusses the importance of the research and the significance of the research to highlight the significance of research to different participants in the society. Moreover, the chapter also highlights the outline of all other chapters of the dissertation and then the summary of chapter is provided.
1.2 Background of the Study
In the view of Erramilli and Rao (1990), the consideration of entry modes is very important for any type of business which opts to expand in another country or territory. Different types of entry modes are broadly divided in two categories known as equity entry modes and non-equity entry modes.International Market Entry Strategies: The Nigerian Fastfood Market.
Another common type of entry mode currently employed by business for international expansions is the agreement for sell or import / export. According to Malhotra, Agarwal and Ulgado (2003), the entry modes further consist of different types under each classification; most commonly employed entry modes include licensing, franchising, strategic alliances, joint ventures and formation of subsidiaries in a new country.
Out of these five, first two are non – equity based modes of entry and other three are equity – based modes of entry. There are other modes of entry such as indirect exporting, directing selling through a local distributor etc. but those are not feasible for the expansion of a fast food chain.
Above discussion highlights the commonly used entry modes around the globe; it must be noted that the application of entry modes varies around the different parts of the world. If a company is expanding in Europe then it may employ different entry modes as compared to expansion in African countries such as Nigeria and Ghana.
The companies do consider the geography and economic conditions of the country while opting to expand their business (Malhotra, Agarwal and Ulgado, 2003). In accordance with Ekeledo and Sivakumar (2004), the entry mode selection also varies with the nature of business; it has been found that it is better to use non – equity based modes for the restaurants including fast food chains.
It has also been discussed that the fast food chains most commonly employ the franchising or licensing approach to expand into other countries.
This highlights that it is important to analyze the entry modes for the fast food chains in a particular country as the entry modes vary from industry to industry and country to country.
1.3Statement of the Problem
The research study revolves around the selection of appropriate entry mode for fast food chains in Nigeria and Ghana. The problem to be solved by the research is as follows:
“What are the appropriate entry modes for the major fast food chains in Nigeria and Ghana?”
1.4 Research Questions
Every research aims to answer few questions which help the researcher achieve the aims and objectives of the research. The research questions for this research are as follows:
- What are different categories of entry modes as per their classification and how are they applied?
- What are the appropriate entry modes for major fast food chains in Nigerian and Ghanaian markets?
1.5 Outline of the Chapters
The dissertation comprises of five chapters which are interlinked with each other. The five chapters are named introduction, literature review, methodology, analysis and discussion and conclusion and recommendation.
The chapter one introduces the research, its aims and objectives and explains what the research aims to find out. The chapter two discusses the literature related to the research in detail both specifically and generally; the literature review will be analyzed to discuss the findings of previous researchers who conducted research related to the topics.
The chapter three discusses the methodology of the research in detail and highlights how the research will be conducted. The chapter four will analyze the data collected during the research and will help the researcher reach at the findings of the research. Lastly, chapter five will conclude the research and provide the recommendations for the target audience and future researchers.
Chapter # 2 (Context)
2.1 Motivation of the Study
The main purpose of the research is to analyze the entry modes for fast food chains in Nigeria and Ghana. The motivation behind conducting research on this topic is that the importance of entry modes has been increasing over the last few years and the companies including restaurants have started considering it as one of the important aspects while expanding into a new market.
Considering the rising importance and the role of entry modes in the success of a business, it is important to analyze different types of entry modes in emerging economies like Nigeria and Ghana as the selection of appropriate entry modes is more critical in emerging economies.
2.2 Significance of the Study
The research has great significance for various participants because the consideration for entry modes has been increasing..
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