Title:
Chapter 1: Introduction
Introduction
Business integration is the strategy used by the business organisations to exert
complete control of their operations (Rothaermel, 2015). Business integration refers
to…………. The strategy of integration is adopted by the business organisations for
the purpose of simplifying their business processes and achieve a higher rate of
productivity and financial gains. The business organisations consider the
implementation of backward integration strategy on their business for the purpose of
reducing the cost incurred due to the employees and reducing the dependence of the
firm on the staffs for the purpose of achieving better financial outcomes. The topic of
the study revolves around the evaluation of the manner in which integration strategies
affect the performance of fast food businesses.
This study has taken the reference of small and medium-sized fast food outlets based
in Glasgow, Scotland, United Kingfom for the purpose of evaluating the manner in
which they can use backward integration to their advantage for the purpose of
enhancing their performance. This chapter presents the background of the study
stating the context for the requirement of integration in business which sets the base
for the progress of the study. The rationale of the research has been provided for
signifying the importance of conducting this study. This chapter also presents the aims
and objectives of the study to provide an understanding of the manner in which
integration strategies could benefit the SMEs operating in the fast food industry of the
United Kingdom.
Background of the research
The strategy of integration in business revolves around the concept of cross-training
of the management and the employees for the purpose of enhancing their
performance and reducing any instance of ineffective communication which affects
performance (Chang, 2016). The SMEs operating in the fast-food industry of the UK
are required to implement integration into their business for the purpose of
streamlining their operations by using technology to align with the organisational
culture and achieve the objectives. Backward integration strategy becomes feasible
for the small and medium fast food outlets for the purpose of acquiring or merging with
their suppliers which could result in lesser dependence (Madsen & Walker, 2015). This
strategy enables the businesses to significantly curtail the cost of suppliers in the long
term and ease the pressure regarding the suppliers joining the competitors for higher
prices.
The restaurant industry of the UK is ever expanding with the rise in consumerism in
the country and the integration of customer expenditure on food joints and eateries.
The approach of casual dining of the consumers of the country has changed as the
time period of four years between 2013 and 2017 has witnessed the inaugural of more
than 4,000 small and medium-sized restaurants across the nation (Theguardian,
2018). The companies operating in the restaurant business of the generated a revenue
of 34.9 billion GBP in 2016, and the customers spent a total of 85 billion GBP in
restaurants in 2017 (Statista, 2018). However, the small and medium restaurants of
the UK have endured the consequences of the rise in the cost of operations post the
implementation of BREXIT.
Research Rationale
The process of integration in business also provides scope for merging with or
acquiring operators in the supply chain of a restaurant, and this could lead to providing
greater control over the resources for the company. More control of the resources of
the company would mean that the SME resultant is able to have total control over their
food preparation activities and serve the customers without any hindrance (Whittle &
Myrick, 2016). SMEs are defined as small and medium scale companies which have
less number of employees working for them and are independent and non-subsidiary
in nature (Darcy, et al., 2014). Backward integration ensures that the restaurant with
integrated business strategies is able to serve the customers without being reliant on
its suppliers for the supply of raw materials and ingredients. This way, the fast food
outlet solely relies upon the sales and distribution of food on delivery agencies like
Deliveroo and Uber Eats to reach out to the customers and achieve better financial
productivity through increased sales and profits. Having control of the immediate
resources required for the production of food streamlines the business as the
management of the firm does not have to worry about the steady flow of resources
and keep on serving the customers.
Importance of the study
The topic of the research revolves around the subject of the effect of implementing
integration strategies on the performance of a fast food business. The process of
integration in business signifies the reduction of overhead expenditure of an
organisation and cost of employees (Schaltegger & Wagner, 2017). This is because
the business integration strategies curtail the requirement for additional staff in a
restaurant or any similar firm and hence also eliminate the additional resources used
by the staff. The event of BREXIT has spurred the operating cost of the restaurants
across the UK, and the SMEs are operating in the restaurant business have been
poorly effected (Theguardian, 2018). The topic of the study is justified as the
implementation of business integration strategies would emphasise on the training of
the management and staff for improving their efficiency and hence eliminate the
requirement for extra staff. The topic of the study is justified as it would evaluate the
manner in which the implementation of backward integration strategies could enhance
the performance of a fast food business by means of taking control of their production
activities.
Research Aim
The aim of the research is to analyse the impact of integration strategies on firms’
financial performance in South Asian Family Businesses in Scotland.
Research Objectives
The objectives of the research are as followed:

To understand the nature of integration strategies applied by SMEs.

To understand the business integration strategies among fast-food sector in
Scotland.

To analyse the impact of integration strategies on a firm’s financial
performance.
Research Questions
The research questions are as follows:

Does the presence of a firm in more than one country affect its performance?

Does the implantation of business integration strategies contribute to the
reduction of employee cost and dependence?

What strategies do the SMEs require to implement for business integration?

What are the effects implementing integration strategies on the financial
performance of fast food business?
Two broad questions:
1. What is the extent of business integration strategies among ethnic fast food
SMEs in Scotland?
2. How do ethnic fast food SMEs in Scotland implement BI strategies
3. How effective are ethnic fast food SMEs in this implemention?
Chapter 2: Literature Review
Introduction
Integration in business is a strategic management process which aims to reduce the
cost of operations by training the employees, improving communication and curtail the
cost of suppliers (Hill, et al., 2014).The fast-food companies of the UK have initiated
the strategy of integration in their business to have greater control over the operations
and integrate processes to save money and time of the firm. The restaurants of the
UK, specifically Scotland have been featured in this literature review chapter to signify
the integration strategies adopted by them in reference to their financial performance.
This chapter presents a conceptual framework which related the variables of the study
and establishes the base for the research. The concepts related to the adoption of
integration strategies in business has been presented in this chapter along with the
background of the fast food industry of the UK. The influence of adopting integration
strategies in business has been presented in relation to the financial performance of
the company. Lastly, the advantages and disadvantages of integration in business
have also been provided.
Conceptual framework
• Cross training of
employees and
managers.
• Promote effective
communication.
Financial
performance
• Reduces the cost of
operations.
• Cuts supplier costs.
• Procurement of raw
materials.
• Training the staff to
enhance efficiency.
Integration
strategies
Fast food
busienss
Figure 1: Conceptual framework. Source: Author.
This study emphasises on the financial performance of the fast food businesses of
Scotland as a result of adopting integration strategies. The variables of this study are
fast food business, integration strategies and financial performance. The integration
strategies are undertaken by the businesses in the fast food sector of the UK are taken
by training the management and staff to enhance their performance. This enables
them to deliver more quantity of services to the consumers to improve financial
performance. The conceptual framework has been further detailed in the subsequent
sections of the study.
Business integration strategy
According to Chang (2016), the businesses houses seek to apply integration
strategies into their firm to better manage the operations and control the suppliers,
distributors and competitors with ease. The motive behind adopting business
integration strategies as a means of strategic management is to widen the scope of
the business as well as reduce the cost of operations. The financial performance of
the business is enhanced as a result of implementing integration as they are able to
enhance their productivity and reduce operating cost at the same time (Schaltegger &
Wagner, 2017). The strategy of vertical integration is implemented by the
organisations to enhance their competitive advantage and gain full control of their
supply chain. This strategy further alleviates the dependence of the business on its
suppliers, distributors and not require any extra charges for intermediaries. According
to Schaltegger & Wagner (2017), integration streamlines the business operations and
reduces the personnel cost and overhead. This is because the requirement for
additional staff is eliminated due to integration in the business along with a reduction
in the resources used by them. Vertical integration is further divided into forwarding
and backward integration.
Forward integration in an organisation is the process of expansion of the business
activities to initiate control over the direct distribution channels for the products and
services. The firms are adopting the strategy of forwarding integration in the business
often move down the supply chain. According to Madsen & Walker (2015), backward
integration is a type of vertical integration wherein the companies procure the raw
materials directly by acquiring the supplier. Such a measure is also taken by setting
up one’s own facilities so that they are able to generate supplies in accordance to their
needs in a cost-effective manner. Horizontal integration in the business is a means of
expansion wherein a firm acquire another firm with similar operations to enhance their
competitive advantage. This enables the businesses to gain more market share and
increase its size along with an opportunity to diversify the products and services
offered to the customers. Horizontal integration in business facilitates the firms to
reduce competition and gain wider access to new markets previously held by the
acquired company along with achieving economies of scale.
Nature of integration strategies used in SMEs
According to Whittle & Myrick (2016), the small and medium companies operating
across all the sectors are required to assess their organisation and the business
operations thoroughly to identify the areas which require improvement. This lays the
foundation for implementation of integration strategies into the business as the
enterprises identify their sources of value and evaluate whether they have the
resource and capability of integrating their business. The firms contemplating vertical
integration are required to assess the advantages of self-production and distribution
in comparison to relying on third parties before finalising on the decision to integrate
(Hill, et al., 2014). The management of the SMEs is required to execute the strategy
of integration and inform the employees in prior along with making them understand
the importance of the decision to the firm and themselves to ensure success. In case
of horizontal integration, the process of merging with another company operating in
the same industry is done by preserving the values of both the enterprises so that the
customers are about to relate themselves to the new endeavour.
The process of integration in business requires competent leadership and organisation
skills so as to ensure that the widened business functions initiated by the business are
executed properly from a strategic management point of view. According to Chang
(2016), the management of the firms along with the employees are required to be
involved in the process prior to finalisation. This ensures effective communication and
balances the focus of the strategy on implementation of the measure to gain greater
efficiency in performance. This facilitates decision making in a quick an easy manner
in the business and enables the SMEs to bar the positive results of integration.
Personnel integration in business creates a base for grooming the personnel with an
adequate train for skill and performance enhancement along with communication
management by providing the staff with dedicated phones for communication amongst
themselves. This creates the possibility of providing appraisals to them and
encouraging them to perform better. Personnel integration also creates the scope of
recruiting more employees with proven and competent skills that enhance the overall
performance of the organisation and enabled them to accomplish the organisational
goals (Madsen & Walker, 2015). This further reduces the dependency of the business
on the employees as they create a good profile for themselves. The redundant
positions in the business are also eliminated as a result of integration.
Fast food industry of UK/Scotland
In the UK, the fast food industry is dominated by a large number of international
brands. The convenience that is provided by the international brands in terms of menu
and pricing of the product protects the international brand to dominate its sales in the
United Kingdom. The United Kingdom is highest in consuming fast food in the world
with different cultures and tastes and making it a global success in the fast food
industry. According to Janssen, et al., (2018), the cost related to fast food outlets is
lesser than that of the restaurants as their major expenses is related to staffing cost.
Staffing cost is generally low in case of the fast food industry with less skilled people
required in the fast food industry, and with the technology mechanism, the requirement
of the staff in the food industry has been decreased. The UK market is on a growth
stage, and the major players in the fast food sector of the United Kingdom are
Domino’s Pizza, KFC, McDonald's, Subway and Burger King. In the UK, the fast food
industry is strictly regulated as in every food product the sellers of the fast-food chain
must label its products as genetically modified is GM ingredients are used. The fastfood industry of the UK has been highly affected by the GST which increased the price
of the food items.
According to Shareck, et al.,( 2018), the fast food industry is growing because to set
a fast food the capital cost requirement is less and which make the sellers enter the
market easily. Franchising is one of the major factors which operates in the fast food
industry of the UK and because of franchising there has been an increasing number
of international brands in the fast food industry of United Kingdom. In the times of
recession, the fast food industry generally performs better than the other restaurants
because at the time of recession people generally don’t have more money in their
hands. United Kingdom lifestyle of the people is a busy lifestyle, and the fast food
outlets provide fast services to match the busy lifestyle of the United Kingdom. One of
the major problems that the fast food industry of the UK is facing is that people now
days have become health conscious and fast food sells food of high calories which
impacts its sales of fast food items (Hitt & Duane Ireland, 2017). The fast-food industry
is also experiencing technological advancement, and the fast food chains have
installed electronic transfer of funds in the point of sale and in which customer can use
debit and credit card to purchase fast food items. The fast-food industry of United
Kingdom is dependent on the animals, and if disease takes place in the animals such
as bird flu and swine flu, the fast food industry will be highly affected with the decrease
in sales of the fast food. The fast-food industry of the United Kingdom has to follow
safety and health measures related to the food they are supplying to the customers.
There is an agency known as the Food Standard Agency who is responsible for taking
care of the health of the people in relation to the food which is consumed by the people
in the United Kingdom. According to Donnenfeld, et al., (2015), the fast food chains of
the United Kingdom are bound to follow the regulations of the Food Standard Agency
(FSA). The regulations that explained that the food that is to be eaten by the consumer
must be safe and it doesn’t be injurious to health and unfit for human consumption.
There must be traceability of the food that is being produced with the help of the
animals, and the fast food outlet must have a record of the food substance that the
outlet is using in making the fast food.
Influence of business integration in the financial position of a company
Business integration is done by the company to increase its competitive position with
the help of the vertical and horizontal integration (Chang, 2015). In the vertical
integration, there is backward and forward integration of the production process and
the horizontal integration it takes place with the Mergers and acquisition with the same
level of the company. Backward integration is generally done by the company to gain
control over the suppliers and for gaining competitive advantage from its competitors.
According to Huang,( 2016), the competitive advantage which the organisation will get
due to the backward integration will improve the financial position as it will provide the
greater value of its products to the customers and with that, the customer base will
grow. An increase in customer base will increase the sales and influence the
profitability of the South Asian business in Scotland. The financial position will improve
as there is always a markup cost which is added when products are sold between the
parties. The markup cost is increased because of the intermediaries which are
distributors and wholesalers and by directly purchasing from the farmers with the
establishment of the full control of farmers. There will less competition and which will
lead the fast food to have low efficiency and it will affect the financial performance of
the South Asian business in Scotland. The variety of food items will be reduced in case
of the vertical integration as everything is done in-house and which will have a negative
influence on the financial position of the firm. Huge investments are required in case
of the integration and which will influence the financial position of the South Asian
business as it will add an extra burden to the organisation’s balance sheet. The
flexibility of the company is reduced in case of the vertical integration and which
influences the financial position of the South Asian Business.
Integration will improve the financial position as there will be no mark-up cost or the
transportation cost involved in case vertical integration (Lin & Swaminathan, 2014).
With the help of the backward integration, the better efficiency can be expected in case
of the food company as they have the control on the production of ingredients that are
required in making fast food items (Pronk & Veraar, 2015). As the efficiency is
improved, the fast food will waste fewer ingredients and for which the cost will be
saved which will improve the financial position of the organisation. In the case of the
backward integration, cost will be less required as with the usage of the advanced
technology the cost to manufacture the raw material is reduced (Norman, 2014). The
organisation with the help of the backward integration can be able to differentiate its
food items from the competitors as it will able to make high quality of food items with
the integration with the farmers and raw material supplier as now the production is
done on the basis of the specification provided by the supplier. With the supply of highquality food items, the financial position of the organisation will be improved as a
customer of the UK are very much health conscious and prefer good quality food
items. The fast-food industry with the help of the forward integration through franchisee
and which will reduce the cost of investment and with that there will be an improvement
in the financial position of the company (Doz, 2017). A fast-food chain will deliver its
food directly to the customer with its own logistics which will ensure timely arrival of
the food products to the customer and reduction in the cost as no third party is involved
in delivering the products to the customers. This timely arrival of the products will
automatically bring loyalty among the customers and for which sales will increase, and
the financial position of the organisation will improve. The organisation to have a
competitive advantage will do horizontal integration which will improve its share in the
market, and this type of integration is generally done as each firm does not have excel
in all the foods products. Merging as a part of horizontal integration will increase the
financial position of both the organisation. The influence of integration of the financial
performance is explained with the help of the graphs below:
Degree of Vertical integration and it effect
on net profit
Net Profit as a % of sales
14
12
12
10
10
8
6
8
8
Under 40%
40-50%
8
4
2
0
50-60%
60-70%
Vertical Integration
Figure 2: Vertical Integration and its effect on net profit
Over 70%
DEGREE OF VERTICAL INTEGRATION
Vertical Integration and the effect of net profit
as a percentage of ROI
Over 70%
24
60-70%
22
50-60%
20
40-50%
22
Under 40%
25
0
5
10
15
20
25
30
NET PROFIT AS A % OF ROI
Figure 3: Vertical Integration and the effect of net profit as a percentage of ROI
Net profit as a % of ROI is higher in the upper end and lower end of vertical integration.
Average ROI
Average ROI based on the market
share
35%
30%
25%
20%
15%
10%
5%
0%
33%
30%
28%
26%
22%
20%
14%
14%
9%
Under 50%
50-65%
Over 65%
Horizontal Integration
5% Average ROI
5-10% Average ROI
Over 10% Average ROI
Figure 4: Average ROI based on the market share
In the case of the horizontal integration, it is seen that the market share of outlet of
10% market share will have the highest average return on investment
Advantages and disadvantages of integration strategies in the fast food industry
Fast food industry has advantage and disadvantage in case of the horizontal
integration. Horizontal integration generally takes place with the help of merging of the
firms. The efficiency of the products is achieved in case of the horizontal integration
and for which the cost will also require less in case of the fast food industry as they
will be producing a product which requires efficiency (Zhou, et al., 2015). The
advantage of the horizontal integration is that the customer base will also increase as
both the company will be merging and they will able to cater the larger customer base
and which will increase the sales of the organisation who are into horizontal
diversification. The production cost will be reduced in case of the horizontal integration
as the products are manufactured with the improved technology. There will be synergy
in case of the horizontal integration as there is a merger and it is generally done for
making a profit (Martín‐Herrán, et al., 2014).
Economies of scale can be obtained in case of the horizontal mergers as large no of
the same type of food items are cooked and which will reduce the cost of the products.
The major disadvantage that the organisation will be facing is they have to comply with
the legal laws if the organisations do horizontal integration. Mergers can also take
place to narrow down the competitive environment and so the company are required
to follow antitrust laws in case of the horizontal mergers (Littler, 2015). As the
horizontal integration grows the enterprise the flexibility in the organisation is reduced
as there is are large no of personnel in the new organisation and handling such a large
number of staffs.
Value is always destroyed in case of the horizontal integration as the materialization
of synergy usually takes place, and the huge cost is involved in case of horizontal
integration (Mattli, 2018). The advantage in the case of the forward integration in case
of the fast food industry is that there will be lower of transaction cost as the food
products will be directly delivered to the customers. The advantage of the forward
integration is that the organisation will have better opportunities for the growth and
they will have strategic independence as they will deliver the products directly to the
customers (Bárcena-Ruiz & Garzón, 2018). Forward integration will lead to an
increase in the cost of the products if the management of the activity is not done
properly. As the competition is decreased in case of the forward integration, there will
be a rise in the monopoly, and the food quality will be decreased in case of the forward
integration (Reisinger & Tarantino, 2015).
Due to the forward integration, there will be rigid organisational structure, and the food
chain will be unable to provide variation in the products as large no of products will not
be available as they have to manage the whole process due to the forward integration
and they have less time in focussing for product variation. In case of the backward
integration there will be an advantage as there will be increased control on the farmers,
a supplier of raw material and for which there will be cost-cutting, and there will
increase efficiency in the manufacturing process of the food production (Brahm &
Tarziján, 2016). With the backward integration, there will be a competitive advantage,
and the organisation can provide the difference in products to the customers (Hunold
& Stahl, 2016). Huge investment is involved in case of the backward integration and
quality of the product is decreased in case backward integration ass the competition
will get reduced in case of the backward integration. There are advantages and
disadvantages in case of the food industry of the integration strategies.
Research gap
The research gap that has been indicated in the food industry of the United Kingdom
is that the effect of integration strategy on the performance of the fast food industry
has not been clearly indicated as most of the information was received from the
secondary analysis. Secondary analysis has been used, and authentic information
was difficult to find in the case of the advantages and disadvantages of the integration
strategies of the food industry. Secondary research has been conducted of the fast
food industry of the UK, and the information is authentic or not is defined as there
remains a research gap in the study. Secondary research has been done, and
because of the limited scope of viewing of journal and articles, there is a research gap
with remains in doing the study of the food industry of the United Kingdom.
Summary
Integration of business is done by the organisation which aim is to reduce the cost by
training, curtailing the supplies and improvement of the communication. The
conceptual framework of the integration had explained with the reduction in the cost
of the operations and reduced supplier cost. The fast-food industry is also
experiencing technological advancement, and the fast food chains have installed
electronic transfer of funds for selling of the food items to the consumers. There is
forward integration, backward integration and horizontal integration that takes place in
case of the food industry. Vertical integration advantage is that it will make the
transportation cost lower and timely delivery of the products to the customer.
Horizontal integration of the firms are there, and it increases the market share for both
the companies. Integration has an effect on the fast food industry of the UK, and it is
not that integration is always good for the industry.
Chapter 3: Research Methodology
Introduction
The research focuses on the impacts of integration strategies on fast food businesses
in Scotland and the UK in the financial performances. The Fast food industry in the
United Kingdom has faced a revolution in the latest years, and according to a research,
more than 5.5 million visits were done in the fast-food chain, and around 11 billion
meals were consumed outside home- generally in a pub (Telegraph, 2019). This
chapter of research methodology contains the details of the purpose, philosophy,
design, approach and strategy of the research topic. Data collection methods,
sampling technique used, methods of techniques for the research is also summarised
into this research methodology.
Research purpose
The purpose of research contains the objective and goals of the study (Mackey &
Gass, 2015). It is necessary for the searcher to comprehend the significance of
conducting the study as it
The impacts of integration strategies on the financial
aspects of the fast food industries of the UK is made properly in an effective manner
and all the objectives of the study are met. The objectives of this research are as
follows:

To understand the nature of integration strategies applied by SMEs.

To understand the fast-food sector in Scotland/ UK.

To analyse the impact of integration strategies on a firm’s financial
performance.
Research philosophy
Research philosophy is very crucial for the ongoing process of research as it contains
the ways using which data can be collected and analysed (Edson, et al., 2016).
Generally, there are four basic types of research philosophy- positivism, realism,
interpretivism and pragmatism (Alvesson & Sköldberg, 2017). In the research
philosophy of pragmatism, data collection methods are mixed and multiple, and both
qualitative and quantitative techniques of data collection are used (Baker &
Schaltegger, 2015). Highly structured and huge samples of data are taken in
positivism approach for quantitative analysis. In realism, methods are selected
according to the subject of the research, and both qualitative and quantitative
approaches are used (Hunt, 2016). Small samples of data are taken, and qualitative
methods of data analysis are used in interpretivism research philosophy. For this
study, the philosophy of positivism is used which is effective for meeting the objective
of the research which is impact of integration in business on the financial status of UK
based fast food centres. This philosophy enables the research to be carried on with
the factual data regarding the financial aspects of integration strategy in fast food
business of the UK. Here, a large sample of data is taken for analysis, so the approach
of interpretivism is avoided as it deals with small samples. As in this research work,
both qualitative and quantitative techniques of data analysis are used which eliminates
the possibility of taking realism approach is avoided as it deals with only one type of
data approach-either qualitative or quantitative. Pragmatism philosophy emphasises
on the beliefs from personal experience, and the data analytics are sometimes based
on absurd data, so it is avoided for completing this research as here only the actual
data about effects on financial economy about the impacts of integration in the UK
based food centres are taken.
Research approach
In general, research approach consists of the detailed plan and procedure which helps
in deciding the progress of the study and can be guided in the proper direction (Stage
& Manning, 2015). Research approach can be divided into two types- inductive and
deductive. In deductive approach, hypothesis is developed which are being tested
during the process of the research (Singh, 2015). Hypothesis is not formed in case of
inductive approach, and it begins with the research questions and objectives which
are targeted research period (Daugherty, et al., 2016). Inductive approach is adopted
for this research as there is no pre-established relationship between the variables of
the study which is integration strategies, financial performances and fast food
business.
Research questions and objectives are developed based on financial
impacts due to integration of business strategies on the fast food shops of the United
Kingdom. Inductive approach helps in developing relationship between the variables
so the research can be completed in an effective manner. Deductive approach is not
valid for this research as no pre-established relationship between the variables is
found for this study which is necessary for this approach. Established hypothesis is
also required for deductive approach of the research and absence of it eliminates the
possibility of taking deductive approach.
Research design
Research design is referred as the agenda of methods and techniques used in
research for the purpose of arranging all the parts of research in an efficient manner
so that the objectives of the research gets fulfilled (Kratochwill, 2015). The three types
of research design that have been sorted by research onion are descriptive,
explanatory and exploratory (Mackey & Gass, 2015). In case of exploratory research
design, the features of research areas are highlighted but the final and brief analysis
of the solutions to the questions of the research is not provided (Wohlin & Aurum,
2015). Descriptive design is used for getting specific answers to the objective of the
study — explanatory research design targets at presenting the gathered data in such
a manner so that the researcher can get the concept easily and effectively. In this
study, exploratory design is chosen as the aspects of integration strategy and its
impacts on the financial status of the fast food business in the United Kingdom can be
properly evaluated using this method. Exploratory design helps in exploring the
research topic which is the financial impact of integration of business among the fast
food industry of United Kingdom in depth. It helps in determining the research methods
for evaluation of financial impacts in fast food industry along with the appropriate data
collection method.
Research strategy
Research strategy is defined as the planning of actions for giving direction to the efforts
so that the research gets completed in a systematic manner and it generates
appropriate results within a limited time (Saleh, et al., 2015). For this study, the
research strategy deals with the ways to find the impact of financial aspects on the
fast food business of the United Kingdom due to integration strategy based on the
purpose, approach, philosophy and design of the study. A mixed strategy is
considered in this research as both primary and secondary sources are used for the
purpose of accomplishing this study. Face to face interview is done between the
managers of fast food stores of the United Kingdom and Scotland to get correct details
about the financial impacts due to integration of business. This can be considered as
the primary method of collection of data, and in case of secondary way of gathering
data literature review is consulted, and information from journals and authentic
websites are also taken (Palinkas, et al., 2015).
Data collection method
For the purpose of collection of data, there are two methods, one is primary, and
another one is secondary (Blumenberg & Barros, 2018). Both the primary and
secondary data are considered for carrying out this study so that the aims and
objectives get fulfilled in an effective manner. In order to get primary data, the
managers of the fast food centres of Glasgow are interviewed, and the questions
consist of the hypothesis such as impacts they have faced due to integration, change
in the financial capability due to integration of business and etc. The questions are
also sent to the personal emails of the managers and their reviews about the
integration are also collected. The questions that were asked to the managers did not
include confidential parts, and the dignity of the personals are maintained (Quinlan, et
al., 2019). For gathering secondary data, journals, articles and books were taken
which contains actual information about the topics such as integration of business, fast
food market of Glasgow and etc. (Silverman, 2016). Knowledge from the websites are
also effective in completion of the study, and the websites were chosen carefully, and
only the sources of data from authentic websites are used.
Sampling
In research methodology, sampling refers to the selection of pre-determined
observations from a large population data so that the characteristics of whole
population can be determined (Wildemuth, 2016). Random sampling method is used
in this study where the selection of members is made in a random way from the large
population, and each member has the equal chance of getting included in (Efthymiou
& Hayes, 2018). From total 260 fast food take away from the area of Glasgow, a
sample of 70 fast food outlets is selected. The sampling is done on a criterion that are
only the managers of the firm chosen for the interview who are having less than 19
employees. The managers selected are now put in the interview panel where they
express their views about the impacts of integration of business in their food outlets in
Glasgow. The method of random sampling is selected in order to ensure that each
participant have an equal probability for being selected in the sample and it also
eliminates the chance of biasing.
Data analysis
With the help of the collected qualitative primary data from the mangers of fast food
takeaways based in Glasgow, the analysis was conducted on the primary data.
Analysis of the primary data refers to the method of using the data in such a way so
that the solutions to the research objectives can be evaluated (Tramontana & Ichii,
2015). In this study, the primary data is analysed through interpretation where the
determination of conclusions and significance of the data are found through the
information collected (Cox, 2018). The secondary data of the research which are
collected from the research journals and academic books and they are evaluated using
analytical and logical reasoning.
Reliability, validity
The data which has been collected and analysed in this research are considered to
be reliable as the method of random sampling is chosen for it. Random sampling
ensures that the analysis done on the sample is valid enough as also it is free from
any kind of bias. The managers of the fast food shops have provided with valid
information which proved to be very helpful in completion of the study. The secondary
sources of data are journals and websites which are selected carefully, and only the
information’s from journals having a date of issue and the authentic websites are
included in the study.
Ethical Standards
The objectives of the research were accomplished following proper ethical
considerations. The managers in the interview were not asked any confidential and
personal questions thus maintaining the dignity and respect of the individuals. The
participants were informed much before the face-to-face interview procedure so that
they can arrange a time for without hampering their important tasks. Freedom is also
offered to the participants, and they have the right to leave the interview at any time
on their wish.
Limitation of the research
As only a lesser sample of data are taken for the analysis of the impacts on financial
aspects of the fast food business in the parts of Glasgow due to integration,
information can be found less in conducting the research on a large scale. Another
limitation is only the fast food industry is chosen for evaluation of the impact on their
financial aspects due to integration of business, and the significance of this impact on
other industry is remaining unknown.
Summary
This chapter of research methodology consists of the methods for finding the impacts
of integration of business on the financial aspect of fast food industry based in
Glasgow. The research philosophy of positivism is selected for this study is done on
the actual data about the integration strategies and its impacts on the financial
prospect of the fast food centres. Inductive approach is used as no pre-established
relationship is found between the variables such as integration and etc. Exploratory
designs helped in featuring the key areas of study like the financial aspects. Interviews
are done between the managers for gathering information and act as the primary
source whereas the facts are taken from journals and books which is the secondary
source. A sample of 70 is identified on a random basis, and the whole analysis of the
financial impacts on the fast food centres in Glasgow is done on their reviews.
Candidates were not asked personal questions during their interview, and they have
the right to leave the interview at any time.
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