In order to have full access of this Article, please email us on thedocumentco@hotmail.co.uk

Chapter # 1 (Introduction)

Introduction

The dissertation by our Dissertation Writing Service 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. 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, the 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 the chapter is provided.

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 into two categories known as equity entry modes and non-equity entry modes. 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.
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.
Statement 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?”
Research Aim and Objectives
The research aims to critically analyze the entry modes for fast food chains in Nigerian and Ghanaian markets. Following objectives are set to achieve the aims of the research:

• To find out the total size of the fast food market.
• To determine the share or percentage of casual restaurants in the fast food market.
• To find out leading customer attraction strategies being adopted by the fast food chains with special reference to the unconventional time brackets or non-rush hours.
• To understand different categories of entry modes and their application.
• To find out most appropriate entry mode for the restaurants in general.
• To analyze the appropriate entry modes for big fast food chains.
• To find out the appropriate entry modes for Nigerian and Ghanaian markets.
• To critically analyze the entry modes for major fast food chains in Nigerian and Ghanaian markets.
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 is the total size of the fast food market?
• What is the share or percentage of casual restaurants in the fast food market?
• What are the leading customer attraction strategies being adopted by the fast food chains with special reference to the

unconventional time brackets or non-rush hours?
• What are different categories of entry modes as per their classification and how are they applied?
• What type of entry mode is most appropriate for the restaurants?
• How the selection of entry mode varies for the big fast food chains?
• How the selection of entry modes varies for economies like Nigeria and Ghana?
• What are the appropriate entry modes for major fast food chains in Nigerian and Ghanaian markets?

Significance of the Study
Further, Academic Writing Services has come up with a factual conclusion that research has great significance for various participants because the consideration for entry modes has been increasing over the years. Firstly, the research findings will be benefit the researcher himself as it will be a great addition to my knowledge. Secondly, the research findings will benefit the major fast food chains and other restaurants in Nigeria and Ghana or the fast food chains aiming to expand in Nigerian and Ghanaian markets as the research will provide them appropriate entry modes for the expansion in other countries. The research is also beneficial for the government institution to design the entry modes in an industry according to the need of the industry and requirement of the time.

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 Summary
This chapter revolves around the introductory part of the research; all the important information has been discussed and scrutinized by our Proofreading Services. The chapter has set five research objectives and research questions for the proposed research and the background of the research has been discussed to highlight the rationale of the research. The chapter also discusses the motivation of the study and states the problem to be solved by the research. Lastly, the chapter has discussed the significance of the study and provides outline of the chapters.

Chapter # 2 (Literature Review)
Introduction to Chapter
The chapter of the dissertation aims to analyze the literature and previous researches done by other researchers on the same or related topic. The purpose of this literature review is to analyze the context and findings of past researches and discuss all the views from past researches. The chapter starts with the introduction to different entry modes and discusses all the entry modes in detail including both equity based and non-equity based entry modes.

After that the application of both equity based and non-equity based entry modes is also discussed. The chapter also discusses the commonly employed entry modes by businesses, restaurants and big fast food chains specifically. Lastly, the chapter highlights the entry modes employed in Nigerian and Ghanaian markets in general and for big fast food chains in Nigeria and Ghana in specific.

Introduction to Different Categories of Equity Modes
According to Pan and Tse (2000), it is important for every business to select appropriate entry mode before starting its operations in a new country. The selection of appropriate entry mode depends on the country in which the business is currently operating and the country where it wants to open the operations. Apart from the difference in the nature of economies, the selection of entry mode also depends on the nature of business.

In the view of Gilligan and Hird (2012), the appropriate entry mode for a service business moving to Ghana or any other country may be entirely different than the manufacturing business moving to the same country because the business dynamics are totally different. Franchising is very common in services business for internationalization but it has not proved that worthy for the manufacturing companies. Other than that financial resources available to the company is another factor; the choice between equity and non-equity based mode varies due to the resources available. Therefore,

it can be stated that there are different factors that impact the selection of appropriate entry mode for a business expanding in a new country.
The entry modes to enter any new market are divided in two main categories which are equity based entry modes and non-equity based entry modes. As the name implies, equity based entry modes require new equity for the expansion of the business; whereas non-equity based entry modes do not require any additional equity (Malhotra,

Agarwal and Ulgado, 2003). In the view of Root (2004), the non-equity modes of entry are more popular when the business wants to retain more management and investment in home country. On the other hand, equity based modes of entry are more popular when the business wants to keep more management and investment of new business in the host country so the selection between equity and non-equity modes of entry mainly depends upon the business strategy as well.

As discussed earlier, the selection of appropriate entry modes depends on the nature of business and economy it is expanding in. There are some entry modes which are commonly employed by different businesses around the globe for expansion. In the view of Blomstermo, Deo Sharma and Sallis (2006),

the common entry mode for service companies is franchising; this is the most commonly used entry mode among service companies including restaurants. However, service companies also go for equity based entry modes such as joint venture and strategic alliances. On the other hand, manufacturing companies employ different entry modes as per their need; they mostly go for indirect exporting or subsidiary based entry mode.

The franchising is not common in the manufacturing industry around the globe as it is in the service industry (Brouthers and Brouthers, 2003). The commonly employed entry mode in developed countries varies from those of developing countries; businesses in developed countries may employ direct exporting instead of indirect exporting which is famous in developing societies due to various reasons (Kogut and Singh, 1988). This shows that the non-equity based entry modes are more commonly employed than equity based entry modes because they do not disperse ownership rights and management control.

Importance of Selection of Appropriate Entry Mode
It is often argued by the researchers that the success of an expansion by business heavily depends on the selection of appropriate entry mode. It is important to select the optimal entry mode considering the nature of business and economies because the entry modes not only incur the initial cost but they contribute in the operational costs as well. For example: If a company selects franchising as an entry mode for their service business then they will have to pay the loyalty fee and some commission to the franchiser. Likewise, there are some costs associated with each entry mode including both non-equity based and equity based entry modes (Czinkota and Ronkainen, 2012).

In the view of Hill, Hwang and Kim (1990), there is no one entry mode which is applicable in every case; the selection of appropriate entry mode varies from case to case. They believe that companies must analyse their scenario in detail before selection of the entry mode because there have been many cases in the past when companies have failed solely due to the selection of inappropriate entry modes.

It has also been argued that the national culture plays a vital role for proving the selection of an entry mode right or wrong so it is important that the selection of entry mode must be made in a way that it is supported by national culture. Therefore, the selection of entry mode is an important decision while expanding the business in new territory or country which can play a vital role in the success of business (Kogut and Singh, 1988).
Equity Based Entry Modes

In the view of Pan and Tse (2000), there are different types of equity based entry modes which can be employed by a company while expanding its operations. For common types of equity based entry modes are discussed below:
1. Wholly Owned Subsidiaries: When a company decides to go for wholly owned subsidiary, it has 100% equity ownership in the business being established in a foreign country.

This strategy is often used when companies acquire a currently running company in that country or build a new plant in a foreign country. This entry mode is employed by both service and manufacturing companies which have capital available to expand the business. The disadvantage associated with this strategy is that 100% losses are borne by the parent company as they have total control over the new unit and they are the only owners (Pan and Tse, 2000).

2. Joint Venture: A joint venture refers to a business entity formed by the alliance of an international company and local owners of the country. It can also be formed by the alliance of two international companies operating in same industry most likely. Joint venture results in lower control for the management of international company as compared to wholly owned subsidiaries because the equity is not fully owned by a single party.

The joint venture is often used when the company believes that the outcome of the project is volatile. The disadvantages of joint venture mainly include loss of control over the subsidiary and shared profits for the international company (Tse, Pan and Au, 1997). According to Pan and Tse (2000), the international company can lose control over the newly established subsidiary if it is not able to maintain the 51% shares with itself. In this case, the decision making will be done by the local investors and can distort the interest of the country.
3. Strategic Alliances: In the view of Whipple and Frankel (2000), a strategic alliance often refers to the equity based

partnership between the international company and its competitors, customers or suppliers. There are many scenarios when the strategic alliance is the appropriate entry mode as it allows the companies to access new products and markets, provides faster entry to new markets and often results in lower costs as the capital costs are shared. The strategic alliance is sometimes also referred to as joint venture as the equity is contributed by two different groups.

The strategic alliances are common in both service and manufacturing businesses. The strategic alliances exist in short run but those businesses are taken over by one partner after some years. The failure rate of strategic alliances is also high because two companies often employ different strategies so there is a conflict of interest and decision making in strategic alliances (Tse, Pan and Au, 1997).

4. Mergers and Acquisitions: The international companies often consider merger with a big company or acquisition of a small company to expand their business in new country because the other company may have better knowledge of the economy where the business is being expanded. The merger also has some disadvantages associated with it because the strategies of two companies might be contradicting and it may be difficult for management of two companies to merge (Doole and Lowe, 2012).

Though the acquisition is an attractive mode of entry for any business but it also involves higher risk because usually acquisition involves a company which is struggling to thrive in the market so it may not be possible for company to get that business running and make it successful. There may be already negative image of that company or products of that company in the market (Doole and Lowe, 2012).
Non – Equity Based Entry Modes

There are various types of non-equity based entry modes which can be employed by the firms while expanding to the foreign markets. Different types of non-equity based entry modes are discussed below:
1. Exporting: According to Erramilli, Agarwal and Dev (2002), the exporting is a mode of non – equity based entry mode as businesses export their goods to other countries for sale. They do not start operations in the target country specifically, rather they tap the market by exporting the goods and services to that country.

Two different types of exporting as an entry mode include the indirect exporting and direct exporting. Further, in the view of Erramilli, Agarwal and Dev (2002), indirect exporting refers to exporting the goods through home based exporters; one main advantage of indirect exporting is that it is easier and quicker than the direct exporting by every mean and the disadvantage includes the higher costs incurred by the company as compared to the direct exporting.

Direct exporting refers to the export of goods by some department or entity operating within the producing firm. Since the cost of trial has been lowered due to the e-commerce business model so the companies can try direct exporting before moving to indirect exporting (Hill, Hwang and Kim, 1990).

2. Licensing: Second type of non-equity based entry mode for foreign expansion is licensing. Licensing refers to a contractual agreement by which another person or company can use the patent, trademarks or products produced by the company. Usually licensor is compensated for this contract by a licensing fixed fee and based on sales usually 2% – 5% of total sales of licensee (Hill, Hwang and Kim, 1990). According to Erramilli,

Agarwal and Dev (2002), licensing has gained attractiveness over the years because the regulatory authorities have started protecting the patents and trademarks actively around the world. Patent holders have also started suing the violators of their patents as the awareness has increased as a whole. The most common type of licensing agreement is franchising; it is an agreement in which one international company allows another company to operate a business with the name of international company. The franchisee gets a well-established name,

procedures to be followed and carefully managed marketing strategy to be followed. The franchisee expects support in other areas from the franchisor as well; those areas include operations, supply chain, marketing etc. Franchising is very common for service companies in general and restaurants in specific. Many big fast food chains have also been established by the franchising model around the world; the example of these fast food chains include McDonalds and KFC. Both of these firms expanded on the basis of franchising model (Doole and Lowe, 2012).

3. Contract Manufacturing: This refers to a management contract in which a company provides another firm the responsibility to produce on its behalf; the product specification are provided to the other company and main company assumes responsibility for marketing only (Root, 1994). The potential problem of this entry mode is that the quality of products can be deteriorated as the production is outsourced and it can lead to lost customers or dissatisfied customers but this entry mode is often employed by manufacturing firms when they cannot expand their production facilities in an efficient way (Erramilli, Agarwal and Dev, 2002).

These are non-equity based modes which are more often employed by the companies when they do not want to invest directly in another economy. International companies use both equity based and non-equity based entry modes depending on their need and condition of the economy or industry specifically.
Commonly Employed Entry Modes by Businesses

The focal managerial exchange off between different methods of business entry is highlighted as the terminology in the middle of control and risk. From one perspective, low authoritative methods of entry minimize hazard. In this way, contracting with a wholesaler obliges no external investment in the market such as work places, circulation offices, dealing staff or campaigns. Under the typical course of action, the merchandiser takes title to the merchandise (i.e., purchases them) as the facility of production is left by the global organization (Pan and Tse, 2000).

These transactions do not even include the credit risk, accepting that the bank of wholesaler has issued a letter of credit. This plan additionally minimizes control; in any case, following the global organization will have practically zero contribution in many components of the plans of marketing, including the amount to spend on advertising, dispersion of goods and services and the standards of services (Harzing, 2002). Specifically,

it ought to be determined that viable control over the operations of marketing is unimaginable without convenient and precise business sector data, for example, behavior of customer, potential market share, value levels, etc. As a rule, less intensity methods of business investment remove the global firm, since outsider merchants or operators desirously watch the character and purchasing behavior of their clients because of a suspicious fear of disintermediation (Johnson, Scholes and Whittington, 2008). Such control must be acquired by means of greater intensity methods of business sector investment, including investments in advertising,

distribution and executives projects in the local region. This is really a trade off as the organizations does not have the ability to have it all, yet must discover trade off arrangements. The truth of the matter is that control just originates from contribution, and association just originates from venture (Wild, Wild and Han, 2014).

Another imperative qualification highlights the differences between marketing and financial risk. Financial risk is generally the significant consideration at the purpose of entering the market and financial risk is the terminology that has been minimized by lower intensity methods of business sector investment (Christmann, Day and Yip, 2000). Then again, this risk takes a stab at the cost of less control over marketing system, so that actually market risk is boosted, with a nearby accomplice settling on all the imperative decision of marketing. It is the longing for more prominent control over the business, such as to reduce the risk of marketing that clarifies the typical developmental methodology of expanding

responsibility and commitment (Dow and Larimo, 2009).
Harzing (2003) presented the different methods of entry can subsequently be recognized by the decrease in the trade off of risk control (see Figure blow). Also, there are various focuses that ought to be borne at the top of the priority list about each.

Figure 1: Different methods of entry
(Source: Harzing, 2003)
Other than the method analyzing above, there are various other methods that are a mode of entry in a market. These methods include the exports and imports, the trading companies analyze the volume so that the profitability can be evaluated while entering into the business (Kwok and Tadesse, 2006).

Other method is piggybacking, albeit such courses of action are infrequently highlighted in the context of global business, numerous organizations start their internationalization deftly through various selection of plans that may be portrayed as piggybacking, in light of the fact that they all include exploiting a channel to a worldwide market as opposed to selecting the market of nation in a more routine way (Slangen and Van Tulder, 2009).

Meyer (2004) elaborated the most well-known type of piggybacking is to internationalize by offering a client who is more universal than the seller firm. Hence, a client asks for a request, conveyance, or administration in more than one nation and the supplier begins offering globally with a specific end goal to hold the client and builds its entrance of the account. Franchising is an under investigated entry mode in global markets, however it has been broadly utilized as a fast strategy for extension inside of main developed markets in Western Europe and North America, most quite by fast food chains, buyer service organizations,

for example, inn or auto rental, and business administrations. On the most fundamental level, franchising is suitable for replication of a plan of action or organization, for example, a fast-food retail configuration and menu (Moon, 2002).
The Size of Global Fast Food Market and Trends

The fast food market around the world grew very rapidly over last few decades when people realized value of their time and wanted fast food to save their time but the growth has slowed down over last few years mainly due to the consideration of hygienic food around the globe. Now people are more conscious about the hygienic food rather than saving their time (Urban, Robers, Fierstein, Gary and Lichtenstein, 2014). The total size of global fast food market in terms of revenue is $191.03 billion with approximately 232,000 fast food chains established around the world.

McDonalds is the biggest fast food chain around the world with the revenue of $90.3 billion in the year 2013. The revenue of fast food industry is expected to exceed $218 billion by the end of year 2018. This shows that the growth is expected to further slowdown; another reason behind decline in growth is the maturity stage of the industry as the industry has already achieved its potential. The average number of employees per fast food store is 15 employees and the total wages of the industry cost around $47 billion (Urban et al., 2014).

Leading strategies employed by fast food chains to attract consumers in non-rush hours
In the view of Gerhardt, Hazen and Lewis (2014), there are different strategies employed by fast food chains to attract consumers in non-rush hours such as the evening time. Many fast food chains have started providing breakfast services; such chains include McDonalds as it has started providing breakfast services around the globe.

McDonalds has also started providing happy hours meal in which they provide heavy discounts to their customers visiting them in non-rush hours mainly the evening hours. Other international fast food chains also provide significant discounts in non-rush hours because in these hours, their capacity is usually underutilized so they aim to utilize it even at lower profit margins. This has turned out to be common strategy by big fast food chains now as they aim to compete with each other and attract the consumers towards them (Gerhardt, Hazen and Lewis, 2014).

Most Important and Common Entry Mode for big fast food chains
According to Ballou (2007), the fast food industry has a tendency to internationalize quick. This imploding example of internationalization is predominant on the grounds that these different eateries plan to expand their different outlets and enhance their market share than that of their rivals. The restaurants have the capacity to control the tremendous support of business exercises through the stiff and strict measures of quality control over different franchisees that maintain the organizations. The entry mode of franchising is predominant in the industry of fast food on the grounds that

it encourages the ease worldwide development of the eateries without incredible risk to the franchiser. The franchisee manages the regular running of the business operations and the franchiser controls the operations through principles (Alon, 2000).

Guthman (2003) expressed that the predominant adjustment of local menu instead of institutionalization in the fast food industry is because of diverse taste and inclinations of clients everywhere throughout the world. For instance, McDonald’s in India produced a menu which is completely free of meat and is developed to costume the vegan inclination of the Indian residents.

As indicated by Toivanen and Waterson (2001), the advantages that accumulate to firm that participate in franchising as a method of entry into international market incorporates:
• Reduced expense and monetary risk related in entering an international business market
• Facilitates as a decent motivation to assemble beneficial operation speedier
• It offers vital cooperation which helps the franchisee to profit by economies of scale and permits the franchisor the authoritarian adaptability of a small organization

Erramilli et al (1990), in his study distinguished that the service business services makes utilization of Franchising as a method of entry. This is especially so on the grounds that Fast food restaurants offer delicate administration and the thoughts regarding delicate administration restaurants are in light of the way that such restaurants cannot send out their item on the grounds that sending out essentially oblige a detachment of maker and purchaser and along these lines they need to depend on contractual system i.e. franchising/permitting with a specific end goal to extend their business.

Hollensen (2007) distinguished that franchising is the most proper for repetition of a plan of action or arrangement, for example, a fast-food retail organization and menu. The researcher recognized that the fast food is not bound as per culture in which advertising learning; such as the item or administration particular information included in marketing. This specific offering in any event is as vital as nearby market information; including the learning needed to work effectively in a specific region. It is likewise critical to determine that in such organizations, the local administration faculties are an essential separating element, and these will clearly still be nearby in introduction regardless of the possibility that they work inside of

a globally steady business group (Alon, 2000).
Another thought proposed via analysts is in view of Governments in numerous developing nations are getting to be mindful of the financial advantages that franchising can bring, and are encouraging the entry of outside franchisors in their businesses sector (Albaum, Albaum and Duerr, 2008). Doherty (2007) proposed that franchising appears to be proper for firms who need to hold control that will be connected with lessened risk. Dawson (2011) recognized that organizations in this industry lean towards embracing franchising as a method of entry,

fundamentally for organization seeking different markets. This can be recognized to fit as per the eclectic theory. This is taking into account the possession element where firms exchange their proprietorship particular advantages for consolidate with the most positive arrangements of customarily settled components in the worldwide economy. This is fundamental so as to keep up control which demonstrates that Franchising is the proper methodology for firms in this industry.

In spite of the advantage that typically collect to firms that utilization franchising as a method of mode, Koh , Lee and Boo (2009) distinguished a detriment that is strange to the Fast food and nourishment industry. The research raised the sentiment that quality control dependably endures. This is on the grounds that the land separation of the firm from its outside franchisees can make low quality hard to distinguish.
Entry Modes employed in Nigerian and Ghanaian Markets

Porter, Blaufuss and Owusu Acheampong (2007) illustrated to look for the most astounding return for capital; financial specialist has a tendency to support the free stream of capital crosswise over countries borders. It is against this foundation that multinational organizations look for interest in international nations with sensible risk. Nigeria is accepted to be a high hazard market for speculation on account of components, for example, terrible administration, precarious macroeconomic approaches. Since the enthronement of democracy based system in 1999,

the Nigerian government has taken various measures important to charm international financial specialists into the nation. This measure incorporates the nullification of laws that are hostile to international venture (Ibeh and Young, 2001). For the most part, strategies and methods of Nigerian government towards international venture were reshaped by two main destinations of the craving for monetary autonomy and financial advancement. Increasing speed of the economy through international sources of trust (international speculation and specialized aptitude) has been an exit plan to the issues of interest in Nigeria. FDI is consequently expected to serve as method for Nigerian’s residential assets keeping in mind the end goal to adequately do our advancement program and raise the way of life of the individuals (Acquaah, 2003).

The target of the Strategy is to focus all the conceivable entry modes and measure the productivity connected with each of them. There are twelve entry systems are recorded, six of them have a few variations, while the measurements of the technique laid out are in light of the accompanying issues: (1) where creation is found; (2) whether generation is possessed by the contestant; (3) whether appropriation is claimed by the participant; (4) whether possession is by and large or shared however a JV; and (5) whether proprietorship is acquired through green field speculation or securing (Hatch, Becker and van Zyl, 2011).

One of the contributing firm particular variables for EC mode, is the MNC’ information reliance. Zahra, Ireland and Hitt (2000) contends that this perspective can be clarified by both the Resource Dependence Theory and the RBV: the first considers the firm confronting an intricate arrangement of asset conditions, consequently, by and large terms, MNCs would pick a green field method of entry to keep away from organization concerns and expenses originating from accomplice connections. RBV rather (assets are supreme and defectively substitutable),

considers a green field venture as best in light of the fact that it ensures such assets, permitting a more productive information transmission in the middle of guardian and auxiliary. Differentiated organizations could lean toward acquisitions rather than green fields, thusly getting all the preferences originating from such method of mode, and abusing their modern administration works on, minimizing exchange costs (Bhaumik and Gelb, 2005).

Regardless of the possibility that exact studies have delivered equivocal results when managing this angle, in the majority of them is affirmed the inclination toward securing mode methodologies concerning enhanced organizations. Another particular determinant for organizations is the past experience and learning of the nation. A starting method of entry involvement in the host nation may influence speculation choice (way reliance). On the off chance that the way reliance is in light of a past business relationship of the MNC,

it is likely that the picked method of entry will be an obtaining. The fundamental contention is that lower exchange expenses are normal with past business relationship in the nation (Doherty, 2009).
Social separation is a broadly utilized determinant to expound entry methodologies for MNCs (Estrin and Meyer, 2004).

Nonetheless, Bryceson (2002) incorporate it with TCT: as social separation (or divergence) builds, interest in non-redeploy abilities subject resources in the EC get to be more hazardous. In this way, we may entrance higher productivity levels of a green field venture, following solid contrasts in the host nation connections could make concerns in the administration practices, in the middle of MNCs and accomplices. Undoubtedly, a higher social separation encourages organizations (JV or acquisitions), with a specific end goal to stay away from absence of environment/business learning (Kropp, Lindsay and Shoham, 2006). At last,

it can be contended that there is a relationship between the measure of the guardian firm and the entry modes. The more noteworthy is the extent of the guardian association, the more noteworthy the probability of a green field entry (Bryceson, 2002). Researchers have additionally supported the inverse contention: since bigger firms have administrative assets and capacities to encourage mix and exchange costs, they may have a tendency to lean toward acquisitions (Meyer, Estrin, Bhaumik and Peng, 2009).

Entry Modes employed by big fast food chains in Nigerian and Ghanaian Market
According to Olutayo and Akanle (2009), the way to achievement in Nigerian and Ghanaian market is the capacity to concentrate on particular opportunity territories and differentiation strategy, pertinent offers that address significant, unmet needs. The size and differing qualities of the landmass’ populace makes it troublesome for organizations to utilize the methods they have effectively connected in different parts of the world.

The primary step is figuring out where in Nigerian and Ghanaian market the best opportunities lie. The examination demonstrates that nine nations in African continent represent about 75% of aggregate purchaser spending in Africa by 2020. These nations are Ethiopia, Kenya and Uganda in the eastern of the mainland; Zambia, Angola and South Africa in the south; and Ghana, Senegal and Nigeria in the west. Inside of these appealing purchaser advertises there are an extensive variety of buyers for which organizations must tailor alluring, separated offers (Hoskisson, Wright, Filatotchev and Peng, 2013).

An organization’s business entry arrangement must be unequivocal about the part Africa will play in its more extensive corporate procedure, on which African nations it bodes well to enter, and in what succession and with what timing they ought to be entered. The business sector entry arranges likewise ought to light up the organization’s particular objectives for business sector section and the courses in which advance against those objectives will be measured (Ajetomba, 2014). Notwithstanding the business sectors or portions on which an organization decides to center, organizations need to consider a straightforward structure that can help most successfully execute an entry method. As indicated in figure below, the structure incorporates the full lifecycle of working together in Africa nations, from picking up bits of knowledge on the greatest chances to conveying successful advertising crusades that bolster the organization’s offerings (Senauer and Venturini, 2005).

Figure 2: Full Lifecycle of Working
(Source: Senauer and Venturini, 2005)
Porter, Blaufuss and Owusu Acheampong (2007) illustrated despite the fact that African nations has demonstrated enormous change as a purchaser market as of late, numerous hindrances to entry, running from defilement, to an absence of framework and nearby ability, to organization remain. To pick the right procedure for beating these obstacles, organizations must survey risk and after that choose whether to set up a stand-alone business, enter through an obtaining, look for associations or joint ventures, or permit its items and administrations to another organization (Meyer, Estrin, Bhaumik and Peng, 2009). Every methodology has its advantages and disadvantages: Entering by means of a Green field (i.e. going only it) venture can bring about the greatest result if section is effective,

additionally is the most risky decision for organizations that need nearby market learning, access to dissemination channels or political associations (Berg, Bercher-Hiss, Fell, Hobinka, Müller and Prakash, 2006). On the other hand, entering Africa by means of a securing can be costly and time intensive, however can give quick access to existing systems and dissemination channels and the chance to increase profound business experiences that can be scaled. Joining forces gives a speedier method for getting entrance to nearby market learning

and conveyance channels, yet selecting the right accomplice requires cautious examination of possession, control, estimating and local accomplice abilities (Bryceson, 2002). Authorizing offers the minimum unsafe and most reduced expense alternative to extend business reach however conveys a high brand hazard and limits the possibility to adventure potential business sector opportunities. Eventually, the right system must mirror the organization’s objectives and needs, the condition of nearby market improvement and regulation, and the particular way of the entry obstructions to be succeeded.
Dawson (2011) recognized another key to accomplishment in Africa is adding to a steady, financially effective production network that empowers an organization to address local issues

and overcome nearby difficulties whilst looking after productivity. This is no little deed: Importing crude materials and in addition completed merchandise into Africa is hampered by a large portion of the same difficulties that make market section troublesome, including debasement, complex regulations, high assessments and significant import expenses. Nonetheless, Bryceson (2002) explained that the organizations must pick sourcing accomplices that have solid connections with the group and an abnormal state of insight on local inclinations and difficulties. Organizations must put resources into the limit and capacities of these accomplices, building up preparing and motivation programs that empower them to satisfy the organization’s image guarantee.
As indicated by Toivanen and Waterson (2001), the African landmass is presently open for business. The business environment is enhancing, base is being fortified yet gradually, and developing quantities of purchasers are acquiring more and buying items and administrations that backing their yearnings. As the African opportunity turns out to be more appealing, organizations are concocting innovative approaches to

accumulate imperative business experiences with a specific end goal to art convincing buyer recommendations that address the issues of African buyers whilst producing vigorous income and benefits. Center and order are critical to this objective (Ibeh and Young, 2001). Organizations must focus on the right customer sections, from Basic Survivors to Rising Strivers to the Affluent, and after that apply an organized way to deal with comprehension purchasers and how to work with them Kwok and Tadesse, 2006). It is likewise discriminating to move rapidly.

Organizations that enter early, and even make new item classifications, stand to pick up a noteworthy point of preference over contenders that hold up until the African business is more develop, when loyalties have as of now been shaped and focused weights are more exceptional. By concentrating on the unmistakable needs, practices, and inclinations of the customer sections portrayed in this perspective, and by applying a deliberate way to deal with business sector entry and continuous achievement, organizations can take advantage of the African opportunity in ways that ensure their edges and develop their income consequently quickening the quest for superior (Moon, 2002).
Chapter Summary

The chapter introduces the different categories of equity modes as the entry modes to enter any new market are divided in two main categories which are equity based entry modes and non-equity based entry modes. The selection of appropriate entry mode varies from case to case, there is not one appropriate entry mode for all companies operating in different areas of the world. It is often argued that it is important to select the optimal entry mode considering the nature of business and economies because the entry modes not only incur the initial cost but they contribute in the operational costs as well. As the name implies, equity based entry modes require new equity for the expansion of the business;

whereas non-equity based entry modes do not require any additional equity. The examples of equity based entry modes include the wholly owned subsidiaries and joint venture. Whereas, the examples of non-equity based entry modes include the indirect exporting, licensing and contract manufacturing. The common entry mode for service companies is franchising; this is the most commonly used entry mode among service companies including restaurants.

On the other hand, manufacturing companies employ different entry modes as per their need; they mostly go for indirect exporting or subsidiary based entry mode. The total size of global fast food market in terms of revenue is $191.03 billion with approximately 232,000 fast food chains established around the world. McDonalds is the biggest fast food chain around the world with the revenue of $90.3 billion in the year 2013. The revenue of fast food industry is expected to exceed $218 billion by the end of year 2018. For the entry modes in Nigeria, for the most part,

strategies and methods of Nigerian government towards international venture were reshaped by two main destinations of the craving for monetary autonomy and financial advancement. Increasing speed of the economy through international sources of trust (international speculation and specialized aptitude) has been an exit plan to the issues of interest in Nigeria. The way to achievement in Nigerian and Ghanaian market is the capacity to concentrate on particular opportunity territories and differentiation strategy, pertinent offers that address significant, unmet needs. The size and differing qualities of the landmass’ populace makes it troublesome for organizations to utilize the methods they have effectively connected in different parts of the world.

Chapter # 3 (Methodology)
Introduction
The main objective of the research is to analyze the entry barriers for major fast food chains in Nigeria and Ghana. The chapter discusses the methodology of the dissertation; which highlights the tools and techniques to be used during the course of the research. The chapter starts with the research design, research approach and research strategy of the research to highlight the methodology as a whole. After that the chapter will also discuss the research philosophy, sampling, collection of data, data analysis tools and techniques. Lastly, the ethical consideration of the study and limitations of the study are also discussed in the chapter.
Research Design

The research design of a research highlights how the research will be carried out to achieve its objectives and how the research problem will be solved. The research design of a research highlights the methods which will be used to achieve research aims and objectives. There are different types of research design been employed by the different researchers for different purposes of research; those types include the exploratory research, explanatory research and descriptive research

(Mitchell and Jolley, 2012).
The current research focuses on analyzing the entry barriers for major fast food chains in Nigeria and Ghana. It is clear that the research is exploratory in nature as it will explore the appropriate entry modes for major fast food chains. The research design is appropriate because the research aims to explore the entry modes in a specific country which has not been done earlier.

Research Approach
In the view of Maxwell (2012), selection of appropriate research approach is very important for any research. The research approach is selected in order to form the strategies for the research. There are two commonly used types of the research approach known as the deductive approach and inductive approach. The deductive approach refers to the approach when the researcher aims to test a hypothesis; whereas an inductive approach refers to a research approach in which the researcher aims to find something entirely new and has not set any hypothesis for the research.
Since the research is exploratory and aims to reach at some new findings so hypothesis cannot be formed to test for the purpose of this research. Therefore, inductive research approach will be used for the purpose of this research and the researcher will try to find out the appropriate entry modes for the major fast food chains in Nigeria and Ghana.

Research Strategy
The research strategy refers to the plan regarding the collection of data and other steps of research to achieve the aims and objectives of the research. There are different strategies used to collect the data for the purpose of the research; those strategies include the observations, survey, interviews and practical experiments (Robson, 2011). The survey technique will be used for data collection for the purpose of this research; the survey questionnaires will be distributed to the experts and managers in the fast food industry to obtain their responses. The survey will consist of 50 respondents including the experts and managers from fast food industry; the managers will be selected randomly among those working for major fast food chains.

Research Philosophy
In the view of Gratton and Jones (2010), the research philosophy refers to the methodology that how the data will be collected, interpreted and analyzed. Two types of research philosophies are commonly used by the researchers during the course of the research; those are known as positivism and interprevism. The positivism philosophy related to the researches based on reality, whereas interprevism is used to analyze the social processes.
The positivism philosophy will be used for this research as the research aims to explore a reality related to the entry modes in a specific country; the research aims to find out the appropriate entry modes for the major fast food chains in Nigeria and Ghana.

Sampling, Data and Selection of Sample
Sampling has been performed for the survey for this research because the population is very large and it is not possible to study the whole population in a research. Random sampling helps the researchers find the required variables from sample and generalize it to the population but for that purpose sample must be representative of the population. A questionnaire will be designed to collect the data from 50 respondents; the data will be collected from 50 managers in major fast food chains or the experts in the industry. The respondents will be selected on the basis of simple random sampling which means that every manager or expert has the equal chance of selection for participation in the survey. Once the sample has been selected, the data will be collected from sample through questionnaires to generalize the data to population i.e. all the major fast food chains in Nigeria and Ghana.

Data Analysis Tools and Data Collection Techniques
There are different data collection techniques which include both primary and secondary sources of data. For the purpose of this research, data will be collected through both the primary and secondary sources of data. Questionnaire will be used for primary data collection and secondary data sources will include online journals, articles and online books. The secondary data will be used for literature review mainly; the findings of the research will be based on primary data collected by the questionnaire. Once the data has been collected,

it is necessary to interpret / analyze the data by appropriate data analysis tools such as MS Excel and SPSS. Different statistical tools are applied to the data collected to bring it in a presentable format and analyze it properly to reach at the findings. Since the research involves data collection through the questionnaire so SPSS will be used for analyzing the data of this research; it will be used to apply different statistical tests to reach at a certain conclusion.
Ethical Consideration of the Study

It is important for the researchers to consider ethical obligations while conducting any primary or secondary research. As this research involves primary data collection so the first ethical consideration for the research is to consider the rights of respondents; there are three commonly discussed rights of the respondents. Those include the anonymity, autonomy and confidentiality of the respondents and data provided by them.

It is also important for every researcher to attach a consent form with every questionnaire to inform the respondents about the purpose of the research and ensure their rights. The autonomy refers to the freedom of the respondents to respond whatever they want; the anonymity refers to non – disclosure of the respondents without permission and confidentiality refers to the privacy of data provided by them. Another ethical consideration to be considered by the researcher is that there must be no plagiarism in the research; all the ideas of other researchers must be credited properly through the citation and references. It must be noted that plagiarism is a big crime as per international academic law so it must be avoided to save oneself from severe consequences. Lastly,

it must be ensured that the data provided by respondents is not manipulated and there is not any sort of bias in the sample selection or analysis of the data. It is important to collect and analyze the data neutrally to reach at genuine findings. These ethical consideration must be considered while conducting the research for this research and any other research.
Limitations of the Research

The research limitations refer to the problems / issues faced by the researcher while conducting the research or the limitations of the results provided by the research. First limitation of this research is that the sample size selected for the survey questionnaire is only 50 and the population is very large so the sample size itself is a limitation of the research. Second limitation of the research is that the research is based on two economies i.e. Nigeria and Ghana and the data will be collected from those two countries only so it must be noted that the findings of the research will be applicable to those two economies only and cannot be generalized to other countries.

Third limitation is the time constraint of the researcher as every researcher can devote limited time to the research. This is also one of the reasons behind selection of small sample size. The researcher must consider these limitations of the research while conducting the research or reporting the findings of the research..