External Environment And Entrepreneurial Strategy Play Vital Roles Commerce Essay

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One method of development has been synonymous with the growth of fast food since world war-II : Franchising. There is several type of franchising in business format. Like KFC, subway, Mc Donald's in Fast Food, Primark, M&S, etc in Fashion retail chain, ASDA, Sainsbury, Tesco for supermarket.. Franchising business is very popular but it's very hard to maintain because as per report 38,291 franchising was ruined within their 5 year, and nearly 1% franchising discontinue for any reason.(Euro monitor International: Country sector Briefing, 2009) The economic downturn has proved to be a boon for some area of franchising business in UK. Because of the economic crisis all business makes losses but fast food business growing 1% in 2009, with total industry value at 13.3 billion. It is show that fast food business is show powerful in UK. Franchising has crossed boundaries and reached worldwide, and it has a tremendous potential for further international development. Franchising is best ways for all organization and a individuals to expand business overseas make big brand name with its products and services.(Khan, 1999) Franchising business not increases only in UK but it's also develop in another country . Mexico has more than over 100 foreign franchises, with 3200 outlets employing more than nearly 50000 workers. Half way around the globe, Australia has found itself inundated with over 30500 new franchise outlets in the last few years (Euro monitor International 2009,). As per the report restaurant industries become the one of the largest sector in the UK in term as of business profit and Employment increase. Table -1 Show the how the fast food business in increase in UK.

Franchising business is symbol of success in business field for franchisor and franchisee. Franchising is business for entrepreneurial activity. The main activities in this business is development of new restaurant concepts, expand franchisee in overseas, innovative system development , competitive marketing approach, and provide wide range of product.(H.Sul & M.Khan,2006) . However, many franchisers facing big lose in their restaurants chain business because of global attack leading to hug financial crisis.(D. White, 1998).financial crisis create serious question in all organization like which style of strategy creation works best in franchising setting? How do environment pressures impact on the entire strategy-making process? Does misunderstanding about environmental information between franchisor and franchisees generate any problem for strategic creation?

Statement of the Problem

Developing entrepreneurial strategy for new products and service is the job of the franchisor, and that why franchisees pay royalty for their skill. Entrepreneurial strategy teach franchisor that how to win in the business area. So the ultimate dependent variable in strategy research is increase performance of franchisees .Entrepreneurial strategy and performance is an experimental question. Here main study purpose of this is found out the relationship between entrepreneurial strategy and performance is important issue in all. (R.Harrington & K.Kendall , 2006) Entrepreneurial Strategy is essentials for organization to perform but entrepreneurial strategy produce competitive environment with other organization because of that it is vital for firm success. Research on entrepreneurial strategy and financial performance is look like incomplete analysis because it's not show clear result of study and to get better result this analysis need important element directly and indirectly affecting strategy, performance and relationship between both each other. ( H Sul & M.Khan,2006).

Some early researcher reports show that external Environments have negative influence on franchisors financial performance and entrepreneurial strategy is perceived lead to financial performance. Franchisees compete with other restaurant in different local market and distribution network of franchisees unit located close to their customer. So it is very scary and costly to get enough information regarding environment in local area. in this study , important to find that Why environment make negative impact?

This interrelated concept is described here by theoretical view. Entrepreneurial Strategy and financial performance is moderated by external environment. This is study represents the principal of environment, entrepreneurial Strategy and financial Performance in hospitality Research.

Study Framework

In this study, the main thing described about franchisees and franchisor relationship where franchisor always doing entrepreneurial activity to develop their franchisees chin and create progressive thinking for their organization. This study is based on franchisees for franchisors entrepreneurial activities and so there are two main reasons for this study approach.

In this study is limited in three main construct : A) The External Environment B) Entrepreneurial Strategy 3) Financial Performance

A relation between among the selected three construct is theoretically efficient and is an economical picture in explaining the entrepreneurial Strategy process in restaurant franchising firm. These three factors are similarly important as the central foci of the empirical testing and development of relationship model in this study. In this study contribution to theory is how much the finding of previous studies on the relationship of concepts from point of view of company-owning executive are different from those from the point of view of restaurant franchisees.

As per described framework, to process the research there is theoretical framework proposed in figure 1.1 illustrates the stage of forerunner, strategic process and effect of entrepreneurial strategy in franchising organization. The process beginner is external Environment and then entrepreneurial strategy was discussed in detail with their key factor. Financial performance is selected as the result of entrepreneurial Strategy.

Figure 1.1 Fremwork of Theorotical Process

Business format franchising is recently commonly successful used method and have

Played a fundamental and significant role in facilitating the rapid expansion of franchising business both nationally and internationally. Franchising develop from franchisor in various level start from name to product, service, management, training, etc. And Franchisees return a percentage of total revenue to franchisor as reward of provides this all service. The relation between franchisor and franchisees is highly dynamic and interactive and has integrated system in decentralized market (M Khan 2006) and communication line is beneficial for both franchisor and franchisees. These facts show that franchisor's entrepreneurial activity must be continuous by franchisees in UK franchising restaurants. So In this study, Using of case study on chicken cottage like to describe the relationship between franchiser and franchisees.

Aim and Objective

Business field is very broad and to get success in its most difficult thing if you not follow the rules and regulation of business. One of the biggest rules of business is bring new idea and aggressive competitive attitude to compete with your competitor. Franchising business is one of the most successful business formats but many researches recently acknowledge that there are many franchisees chain shouting down because of improper strategy and struggling with competitive environment. Many researchers also described that entrepreneurial Strategy and External environment make difference in franchisees business so The main Aim and objective of this study is found out the relationship between entrepreneurial strategy, external environment and financial performance of restaurant franchisor from the viewpoint of franchisees. Find out that what most important factor to improve the franchisees performance is

Research Question

Research question means a question which describe the main important of whole study and what information needs to give justify to the problem works. The main question will answered in this study is.

External environment and entrepreneurial Strategy play vital role for franchisees performance survey report in UK

This Question intends to answer by used qualitative data along with primary research.



Literature review is the man body part of the all research project. It is give brief idea about particular subject and describe an interesting theoretical based for this study. In this literature review the main focusable thing are relationships between three pillars of any business, external environment, entrepreneurial strategy and financial performance. These literature reviews gave deep information about three factors in detail and also provide the foundation for the hypotheses that guide the study.

External Environment

First of all we have understood what is different between internal and external environment. Internal environment as including the interpersonal relation of member and their interactions with each other and other side external environment means other individuals, groups, and institutions (R. Ducan 1972).

The design of the entrepreneurship model ,including variable began with an investigation of the rapid changing business environment (Wortman 1986).since organization are in constant exchange with their environment .In the past researcher is failed to conceptualize organization environment and the element comprising it. Researcher focused on organizations origin and history, ownership and control, size and location that mean they only looked the organization outward but in present analysis environment is totality physical and social factor that are taken directly into consideration in the decision making behaviour of individuals in the organization(Duncan, 1972)." Environmental variable have been defined ans assessed in variety of ways , one relatively consistent centralization of environmental un certainty is that it is described as a higher order construct of two lower level environment construct : dynamism and complexity."(R. Harrington & K. Kendall, 2006) The environmental context within which they must be analyzed are so complex, socio-cultural and political phenomena, involving interactions among human being and social institutions are difficult to analyze in precise quantitative term (P. Sethi, 1979). Hambrick (1982) argued that the aim of environment attribute is less important than the supposed environment. Environment demand similar in same industries but it is apparent differently from individual to individual. Perceptions of the environment are suitable for estimating the psychological state knowledge of decision-maker, indicating the degree of management toward environment perceptions toward environment uncertainty.

External Environment defined as a "various phenomena out of the control of the organization, which comprise a set of resources and actor that affect its form, behaviour, and fate" (Duncan, 1972).A design of any privet enterprise model, include the autonomous variable, start with investigate of the often changing business environment. It is prove that successful franchisees are more fit with their environment compare to the unsuccessful franchisees (Naman & slevin, 1993). The environment is a major driving force that influences the organization .In current situation, business environment changing faster than ever in two major dimensions one is complexity and turbulence.

Complexity is defined as the measure of heterogeneity or diversity in environment in easy word such as customers, socio-politics and technology. Complexity is measurement of difficulty if complexity is increase, the ability to understand and use information to plan and predicts become more difficult.(R. Maosn, 2007). "Industry technological sophistication is the degree of technology advancement and complexity in the core product and operation processes of industries." (Selvin & Covin ,1997)

Turbulence is defined as dynamism in environment, unexpected changes in environment sub-dimensions (conner, 1998).Dynamism comes from changes in such key operating concern as market and industry condition. Dynamism refers to the perceived insatiability of a franchisees market because of constant changes. When social, political, technological changes bring new development and at that time opportunity emerge from the dynamism.(J. Ferreira, 2002) Internal factor is very important for rapid grow the CE( Corporate Entrepreneurship) but one significant external factor on the CE-performance relationship is Hostility. Hostility is a widely known dimension of the external environment. Hostility is considered by high level of competitive intensity, opportunity, and product -related uncertainties. (S. Zehra & J.Covin, 1995). A hostile environment creates pressure to franchisees operation, through increasing competition and gets bad review for franchisees products and services.(J. Ferreira, 2002)

"A many research document show that individual manager must competing demands from stockholders, debt-holders and other stakeholders groups while maintaining a degree of control over the firm's ability to respond to environmental demand."(R. Simerly & Mingfang, 2000).Under the strategic direction, environment and its relation to strategy and performance developed. And it is major involvement to research on small firm performance and growth.

Entrepreneurial Strategy

"Strategic entrepreneurship is entrepreneurial action with a strategic perspective."Entrepreneurial means examine number of new strategy that new franchisees adopt. To make more clear Schumpeter described entrepreneurship is process of create new thing that means destroy old product and method and replaces new product and method. Entrepreneurial is a silent strategy-making in organization.( Bargelman, 1984, Scumpeter, 1936,1950) .corporate entrepreneurship is an evolving era of researcher , today there is no universally acceptable definition of corporate entrepreneurship (. J. Ferreira, (2002). Some research argue that an entrepreneurial means a struggled large organization restore them self by carrying out new combinations of resources that alter the relationships between entrepreneurial ship and their environments.(Baumol, 1986)

Entrepreneurial process creates five critical questions.

Where is the opportunity?

How do I capitalize on it?

What resources I Need?

How do I control over them?

What structure is best?(M.Hitt, 2002)

Strategy management contributes to entrepreneurship theory significantly. It is very important to understand what is strategy is, Entrepreneurial strategy tech to franchisor that how to win in franchising business.(H. Sul & M.Khan, 2006).It is conform that entrepreneurial strategy is play very important role for financial growth in the franchisees business. An entrepreneurial strategy is defined as the frequent and constant effort to establish competitive advantage through innovation. However, it is problematic to investigate the total variance of financial performance in relation to another single construct or to an entrepreneurial strategy, which must be a broad representation of many aspects. Any attempt to examine an individual relationship between entrepreneurial strategy and financial performance in isolation would lead to an incomplete picture (H. Sul & M.Khan (2006).

As per past researcher explain entrepreneurial orientation is connected with number of different strategies. Like aggressive pursuit opportunity, the capacity for renewal and changes through flexibility and adaptation, advertise of new innovation and creation and risk taking (C. Falbe, T. Dandridge & A. Kumar, 1998). Colvin , Dess and lumpkin also describe 11 strategy making-process like adoptiveness, analysis, expertise, integrates , innovation and risk taking. Fredrickson (1986) give one more dimension for entrepreneurial strategy is Proactiveness. .

As per different research suggested this all dimension is hang together but at the same time some other article show that the dimension is autonomously .Lumpkin and Dess ,(1997) describe that Proactiveness is defined as seeking new opportunities and it's not confirm that it's must related with the current business style. Innovation dimension found very difficult and critical by many researcher and manager for compete effectively in any business. Hamel (2000) believed that innovation is the most important factor for origination strategy. Other research said that successful innovation provide right track for evolution of a franchisees. As per previous survey by Hamel(2000) that 500 CEOs who largely agreed that their industry had been changed in the last 10 year by newcomers, not incumbents and that they had done so by changing the rules. He also argued that innovation is a power of 'I' .Drucker(1985) explain that Innovation is first stage of entrepreneurship .The entrepreneurship and innovation literature discusses the importance of both reward and special organization devices (C. Falbe , D. Thomas & Ajith Kumar, 1998). Innovation reflected in new product, manufacturing process and management techniques .Product Innovation important for effectiveness and firm performance. F Mavondo(1999)

Many research found similarity between Proactiveness and aggressiveness but Covin and slevien's show important differences between this to important factor. Proactiveness emphasizes the importance of first mover advantage is the best market opportunity for new business firm to cover all opportunity. That means attempts are made to be first introducing new product, service and technology instead of simply make competition with competitor. (G. Lumpkin and G. Dess, 1997) Proactiveness suggests a forward -looking perspective feature of a marketplace leader that has the foresight to act in expectation of future demand. In contrast, competitive aggressiveness refers to the greatness of a firm's hard work to do better than industry competitor. It is considered by a strong offensive posture directed at overcoming competitors and may be quite reactive as when a firm aggressively enters a market that a rival has identified. Example If firm reduces its profit margin or spent more money than competitor behind marketing and also improves product and service quality very fast.(MacMillan 1982) In present business market, traditional method of competing is very old and use new method for competing and this thing came from competitive aggressiveness.

Lunpkin(1997) suggested that if firm want to be success full , firm must need to utilize proactive and competitively aggressive .The level to which competitive aggressiveness is related to performance will be independent of the amount to which Proactiveness is related to performance. So this damnation differentially related to performance and its make big effect of firm performance if firm take advantage of this factor properly.

Miller (1983) explain that if any organization gave preference to high risk project its more profitable and the ratio of return is much higher than low-risk project. The concept of risk can be considered by way of the possible losses and gains that can be derived from an action. (R. Morgan & C. Strong, 1998).There is acknowledgment that positive risk taking is an important factor in simulating the entrepreneurialism implicit in market opportunity-seeking behaviour.(Miller, 1987).

"A danger of restricting marketing attention to existing customer and competitors results in the tyranny of the server market where efforts are too narrowly focused on the expressed needs of the customer at expense of neglecting the talent needs of both existing and potential customer. (R. Morgan & C. Strong, 1998) "Therefore the right direction of business direction maintains a balance between existing and potation customer which should encourage an enough motivation to take risks. Risk-taking is not always successful, some time franchisor have ready for accept the possible failures. There were three type of risk in the context strategy 1. "Venturing into the unknown" 2. "Committing a relatively large portion of assets ", and 3. "Borrowing heavily"

Financial Performance

The main propose of this research is to find out the performance of the firm. Performance, means the outlook of planned management, is considered to be a subset of the broader concept of organization effectiveness. But the important question is ,how to define firm performance?

Firm's performance was devise in five different questions captures relatively. This question asked to manager to identify their performance relative to close competitors based on after tax- return on total assets, after-tax return on total sales, total sales growth, overall performance and success. There were many different ways to approach measuring a organization performance. Organization performance measuring in capability-base like stakeholders group, customers, employers, etc...(Vells, 1997), in the business field profitability is count as a critical issue in a competitive environment. Grant (1998) suggests that strategic management is the best way to find profitability of organization." Previous research has inconsistently used one or only few measure of assess financial performance like earring per share, return to investor, and return of equity. Financial measures have been shorted into one of six categories , Profitability (11 measures), assets utilization (7 measures), growth (13 measures), liquidity (6 measures) , risk-market measures (12 measures), and other (20 measures). So there are 80 different measure of corporate financial performance. Table -2" J Griffin & J.Mahon (1997).

Profitability and growth are the commonly use in hospitality strategy to evaluate performance of firm.



This research study working on some specific hypotheses and to get better result this hypothesis tested in this study. This hypothesis developed on based on literature review to find out the relation between external Environment, entrepreunial Strategy and financial Performance. This hypothesis arranged by relationship of pairs of constructs among the two investigated in this study.

The External Environment - Entrepreneurial Strategy

In this developing world market environment changing frequently and it's create uncertainty rends and because of that old product and services may be not successful. In this type of situation if franchisees want to get success they have find new product and services (Hoon-Ku Sul and Mahmood A. Khan,2006). Strategy is one of the system that direct environmental arrangement and provide integration for internal operation .the effectiveness of a strategic orientation is contingent upon the external environment.(Olsen & Roper, 1998)

Organization promote new products and it's increase competition in market and firm commercial activities and because of that dynamic environment encourages entrepreneurial firm behaviour (Cacilia , Thomas , Ajith kumar ,1998). 'Strategy making in more dynamic and competitive environments tends to imitate advanced degree of proactive, innovative, and risk-taking strategies to avoid old-fashioned products and services' (Hoon-Ku Sul and Mahmood A. Khan, 2006). Franchisees whose executives recognize him as a used more dynamic and uncertain environment strategy is more successful and well know compare to other firm whose environment is stable and unchanged.

Miller and friesen (1982) , survey on 52 firm insisted that environmental show positive related with franchisees entrepreneurial posture and innovation. Miller (1983) again reported that environmental dynamism and hostility positively related with the risk-taking and Innovation. In the same ways so many other studies reported that technologically sophisticated environment have positive with strategy. Organization which competed in aggressive environment and adopt an entrepreneurial attitude enjoyed greater performance (G. Dess & L. Covin, 1997).

Hypothesis 1: Restaurant franchisors' external environment will have a positive effect on the franchisors' entrepreneurial strategy from the perspective of franchisees

3.2 Entrepreneurial Strategy -Financial Performance

As per different research done entrepreneurial strategy and financial performance relation is measure by practical work. Entrepreneurial strategy and financial performance have positive and negative effect on franchisees business. Schollhammer (1982) and Lumpkin and Dess(2001).Miller (1983,1992) clarify that a organization who contend in aggressive of environment and adopt an entrepreneurial strategy, make positive result for that organization . An entrepreneurial approach to strategy-making may be vital for organizational. Morrison (2000) success indicates that entrepreneurial activities can affect financial performance in hospitality franchising..

"Franchisees local knowledge and profit motive place then in strong position to create value by increasing adaption and generating innovations."(Gills & Combs ,2009)

Other Author has claimed that entrepreneurial approach to strategy making will detract from performance (Dess, lumpkin, covin 1997). Hart (1992) argues that directive and entrepreneurial firms operating in a command mode and those with autonomous and entrepreneur organization members operating in a generative mode are likely to be low performers relative to firms using other approaches. The financial performance of the franchise system is intrinsically linked, individually and collectively, to the capabilities and behaviours of the franchisor. If franchisor match their franchising strategy to the strategic resources which best support operation. When franchising strategy match with resources that allow it to reach full prospective, the franchisees performance should be greater (W Gills & J. Comb)

Even if some of the studies indicate that entrepreneurial strategy is associated with poor performance, there is strong evidence of a positive relationship between entrepreneurial strategy and firm performance (Lumpkin & Dess, 2001). Therefore, the hypothesized relationship between entrepreneurial strategy and firm performance is the following:

Hypothesis 2: Restaurant franchisors' entrepreneurial strategy will have a positive effect on the franchisors' financial performance from the perspective of franchisees.


In this chapter, Entrepreneurial strategy has relation with external environment and financial performance. This indicated a number of conceptually but systematically they working separately in organization. There two main possibility so after result come.

H1- External Environment Entrepreneurial Strategy

H2- Entrepreneurial Strategy Financial Performance



In this chapter the research strategy and approach for collecting data will be shown. Any research cannot be perfect without method therefore in this research Schendel and Hofer 's (1979) rigorous research methodology is not only useful for solve hypothesis and research topic but it is also create under stable theory than now exists. Good science cannot work without good measures. In the order to get good result and achieve objective, the most appropriate method used to collect data, through primary data.

What is research?

Research means search for the knowledge and systematic investigation to establish facts. For make research on particular subject there were need to collect data, record and analysis that data. Research is the over-arching term relating to the development of knowledge and the nature of that knowledge (Saunderes et al., 2009, pp.107).there are two type of research method available 1.Objective, 2.Subjective. This resembled the objective style in examination of relationship among the external environment, entrepreneurial strategy and financial performance of restaurant franchisor.

This research is also important because of development if knowledge boundaries through testing hypotheses and acceptability.

Research Design

Research design provide a structure for the data collocation and how to analysis that data.(Bryman and bell,2007). In the research project there were five type different design find for all project. Like experimental design, cross-sectional design, longitudinal design, case study design and comparative design. This research aim and objective are concerned with, franchisees financial performance based on environment and strategy, so case study give best result for this type of research. To get a good result in research, it is important to use different type of method for data collection as Saunders et al 2009 mentions. Primary data is more reliable to understand these research objectives on standard level.

Primary Research

Survey research comprises a cross sectional design in relation to which data is collected predominantly by questionnaire or by structured interview on more than one case and at a single point in time in order to collect body of quantitative or quantifiable data in connection with two or more variables, which are then examined to detect patterns of association."(Bryman, A and Bell, E 2003). A data that collected specially for research project and should therefore be used for the first time in the study This research adopted a questionnaire that is sent to franchisees managers to face to face or emails in London .After all, completed questionnaire were sent back to the researcher's email given in the questionnaire content or collected by the research on location.

Research Strategy

Bryman and Bell suggest two main research strategies in their book research method 1. Qualitative 2.Quantitative. Quantitative strategy normally worked quantification in the collocation and analysis of the data and other side qualitative strategy usually emphasizes words rather than qualification in the collection and analysis data. Qualitative and quantitative research represents different type of strategy based on role of theory, research issue and ontological concerns. In this research project is explore a model that examines the relationship among the external environment and entrepreneurial strategy and financial performance of restaurant franchisor from the prospective of franchisees. To process this research, processed deduction will used for that.

( Deduction Method (Bryman and Bell, 2007)



Data Collection


Hypotheses Confirmed or Rejected

Revision of Theory

Questionnaire design

Questionnaire is a one of the successful way to get primary data collection. The multidimensional personality questionnaire (MPQ) was constructed in an exploratory manner. It is not for the make lengthy report but gives proper concentration on all part of the research and gets batter result. To fulfil the aim and objective, questionnaire is relevant method to achieve target. The questionnaire was made on the basic of previously established scales to measure the study constructs. Each scale in the study was selected to the consistent demonstration of a high Cranach's alpha coefficient. The questionnaire is checked by supervisor and the average time is less than 20 minute to fill all questions.


In this questionnaire, there are four sections, Section- 1.External environment, Section- 2 .Entrepreneurial Strategy, Section- 3.Financial performance, Section- 4.Demographic. In this research there are three dimension used for survey instead of eight because eight environment segment similar to these element and also indentified by khandwalls(1977) and Jauch , Osborn and Guleck (1980) were examined.The four dimention is dynamism, hostility ,Technological sophistication. .Eleven question were devised using a 5-point scales to measure environment Hostility, Dynamism and Technological Sophistication.

The scale of is question is 1 to 5 are strongly agree, agree, no answer, disagree, strongly disagree in section 1 and 2. In the 3rd section answer is based on percentage Lower 20% to Top 20%.

In this research, Analysis process was done by quantitative method of data analysis which will be explained greater detail.

The Sample

The sampling frame for this study includes restaurant franchisees in the business format franchising system in United Kingdom.

Sample for this research chose based on restaurant franchisees in the business format franchise in UK. The primary data collecting method is to send 100 questionnaires in different registered franchises. And for analysis 100 response need for proper data analysis.

The franchisees chose based on two different factors. First is different type of restaurant franchisees like (Mc Donald's for Burger, KFC for chicken, and Pizza hut for pizza). Organization's commercial activities play very important role for business prospective. Different type of franchises has different entrepreneurial activities. Franchise increasing of number of unit is beneficial to the franchisor because its revenue depend on royalty from units in the system.

Second is franchisees controlled size: Size variable is completely related with the franchisees financial performance. That means if one franchisees have more unit so it performance better than a less franchisees unit but mixing of franchisees size crest confuse in analysis so controlled size variable give good result that mixed .

There are two different type famous fast food franchisees for my primary research. 1 is chicken cottage and second is KFC. In these research main purposes to compare this two brand franchisees. Sam's v/s Chicken Cottage.

Context of study

This research is based on franchisees business in UK .

Method of Data Analysis:

As this research is only one data collocation method, a quantitative method for collection data from the questionnaires was used.

Saunders et al (2009) mention that 'quantitative analysis method assist to create simple tables or diagrams that show the frequency of occurrence through establishing statistical relationship between variable to complex statistical modeling'. In primary data the case studies are analyzed by matching the patterns between them and then each pattern is analyzed to identify the causes of such patterns. The comparisons and contrasts are observed to test the hypothesis. Statistical Package for social Science (SPSS) software program was used for analysis and synthesizing the collected data from questionnaire. The major aim for this research is to focus on the technique "the fit of the model" which helpful to find out connection between the specified relationships and those indicated by the data.(H.Sul., M. Khan., 2006)

Research Ethics

Ethics play an important role since from the beginning of research, from striving access to organizations and employees, collecting data, analysis and reporting. (Saunders, M. et al., 2003) Ethics are maintained throughout the procedure of research by making sure that while collecting primary data like case study and interviews from the franchisees, permission from the human resource and managing director had been taken. Interviewee's prior consent was also taken to take interviews and the aims and objectives were briefly explained to each interviewee separately. The participants were never pressurized to answer the questions.

Limitation of Research

In this project there were number of limitation find which discussed below.

Primary data collection are very time consuming and need more confident to encourage person and secondary data has problem with reliability and validity

To collect data through questionnaire is quite hack ting because it's very hard to find person on location present.


In methodology was discussed about how the data was collected from manager in chicken cottage and KFC in UK. Collected data was test by SPSS software and then analysis that data in next chapter in detail and find out the main result of the research project.

Chapter 4- Analysis and Findings