Research Question To explore whether a common global strategy is to be followed by MNCs when penetrating markets of developing / under developed

countries.

Research Approach

This research is Quantitative in Nature. It rests on a base of theoretical study which will lead to the formulation of Hypotheses. These hypotheses will then be tested through empirical means. The Quantitative method has been chosen since it is based on precise measurements, statistical analysis, study of specific variables as also the fact that it is objective. In addition its findings can be generalized to include all MNCs seeking to enter virgin markets of developing / underdeveloped countries.

Both the Deductive and Inductive approaches will be used in the Quantitative Method used in this study.

Deductive Methodologies start with a general concept / rule also known as a hypothesis or postulate which is then applied to particular situations. The data used for arriving at the hypothesis or postulate is based on evidence that already exists. This method is a logical process of moving from the general to the particular.

Inductive Methodologies are experimental / empirical in nature. They move from the particular to the general. These methodologies use experimental techniques to examine individual cases from which a broad principle can be arrived at.

Types of Data Used Both Primary and Secondary data will be used in this research. Primary data is the outcome of inductive research. It is new, freshly discovered and unique. It is used to test postulates and hypothesis. Secondary data is data that already exists. It is not fresh or unique to the particular research at hand but is used to formulate hypothesis which is then to be either accept or reject postulates using inductive methodologies.

Deductive Approach Determination of Hypotheses In this phase of research, existing literature pertaining to multinational companies and their global strategies will be studied. Case studies of whether adopting a global strategy to penetrate new markets has succeeded or not will be examined. Sources of data include scientific journals, the internet, books, research articles and magazines. This phase will be used to attain detailed knowledge of the subject. These studies will form the foundation on which Hypothesis are based. This data is secondary data since it is based on existing research. From the theoretical studies conducted the following hypotheses may be constructed. A strategy of Localization rather than a Common Globalization Strategy will succeed in penetrating new markets of developing / under developed countries. It may be noted here that this is only a postulate. It is yet to be accepted or rejected. However it forms the base on which to construct and conduct empirical studies.

The Inductive Approach The main purpose of the inductive approach is to empirically verify the key determinants of a successful internationalization strategy. The main research tools to be used are: Data Collection Tools: Questionnaire Phone Interview Data Collation and Analysis Tools Microsoft Excel Descriptive Statistics Tool of Excel

Data Collection Tools

The main purpose of these tools will be to collect and gather a primary data set which can then later be subject to analysis. Questionnaire The essential form of inductive research is to ask questions and to measure the response obtained (Hague, 1994). Thus the primary data collection tool will be a questionnaire. In this research purposive sampling method will be used to identify the correct respondents for the questionnaire.

Purposive Sampling refers to the methods by which those MNCs are selected who are most relevant to the research at hand. This method was chosen as obviously it is impossible to send the questionnaire to all MNCs in the target country.

Thus four MNCS were selected in four developing countries, India, Brazil, Mexico and China based on their success in penetrating local markets. A mail was sent to the Head HR of each MNC explaining the nature of the research and permission was sought to interview a strategy manager from the company. Once the strategy manager (the respondent) was identified, an online questionnaire was administered to him / her. Before the questionnaire is sent, a preliminary email will be sent to each respondent explaining the purpose / nature of the research and seeking their permission to participate in it. It is only after obtaining their consent, will the questionnaire be administered to them.

The questionnaire will be 20 questions long and consist of a mixture of both close ended and descriptive questions. While close ended questions will yield answers that lend themselves to statistical analysis, descriptive questions will yield answers that can be used to corroborate the findings of the LR in more detail. The questionnaire will be a mixture of both close ended and descriptive questions. While close ended questions will yield answers that lend themselves to statistical analysis, descriptive questions will yield answers that can be used to corroborate the findings of the LR in

more detail. Participants can answer based on the Liker Scale. The answers will then be collected for analysis. According to Hague (1994), the advantages of using a questionnaire are given below: A questionnaire is the quickest, most economical and practical way of collecting data If scheduled at a particular time, they can be answered at the respondents convenience They can be answered under conditions of anonymity and confidence thereby eliciting more candid responses. Telephone Interview

While a personal interview would have been invaluable in gaining firsthand information due to the geographical restrictions, this method will be restricted to interview through a telephone. It will consist of contacting the identified managers at Amazon through telephone primarily to clarify doubts / data etc. which are not completely clear from either the questionnaire or the content analysis stages. Getting information through telephone is quick, flexible, allows for making notes and recordings as also obtain more frank feedback from the respondents

Data Collation and Analysis Tools Microsoft Excel

The answers against each question from each respondent were entered into an Interview Summary Form in Excel as shown below.

Fig. 3A. Interview Summary Form

The advantage of using an Interview Summary form is that it provides a comprehensive tool for data collection. Once collated this data can then be subject to analysis using the descriptive statistics tool of excel. Descriptive Statistics Tool of Excel Univariate analysis or Frequency Count is the simplest form of Descriptive Statistics Analysis. It summarizes individual variables in a given data set. (Hague, 1994) Given that the questionnaire method of data collection was employed, it was thought fit to use the Univariate method of analysis. The Descriptive Statistics Tool occurs in the Data Analysis section of Excel and is used to analyze Univariate data and summarize it against various parameters. Hence this tool will be utilized to analyze the data collected in the summary form.

Fig. 3B. Descriptive Statistics Tool The summarized data will appear in the form below:

Mean

Median and Mode

Fig. 3C. Result of Descriptive Statistics Tool

For the purpose of analysis, we will consider Mean, Median and Mode. While Mean is the average value, mode is used to deduce which number occurs most in the distribution. Median is the mid highest value in the chart.

Risk Mitigation The main risks identified during conducting the research and the mitigation mechanisms put in place are given below: Questionnaire The main difficulties of using a questionnaire are: Not all respondents are expected to reply completely. To prevent this, the questions will be as objective and exhaustive as possible. The answers may not be as objective or descriptive as required. Hence descriptive site documents will also be studied in this research While the persons to whom the questionnaire has been administered to are recommendation from the Head HR, there is always a possibility that they may not have the competencies to adequately answer the questionnaire. This will be ameliorated by choosing only the Head in charge of the respective units who are expected to possess the knowledge and expertise of their area of operations.
This method is time consuming as it involves preparing the questionnaire, calling up

personally and noting down the answers and then entering the answers into the database and analysing them. However given the geographical constraints, this method was considered the most economical and for the purpose of detailed data collection.

Telephone Interviews The main disadvantages of telephone interviews are the high costs, non intensive answers, and shortness of conversations, which prevents in-depth probes. These risks were mitigated by using this method only for clarification of doubts and ambiguities. The gathering of data, conducting of research and interpretation of results is dependent on the skill of the author. To that extent the findings of the research may be subjective in nature. Moreover due to constraints of time, space this research will limit itself to only four MNCs in Four Developing Countries. Hence the authors belief that the findings of this small sample set could be applied to all MNCs may be presumptuous.

Ethical Issues Utmost care will be taken to abide by the rules, regulations and practices of the University and to not manipulate any of the sources of data by any means. The author realizes that objectivity is a necessary criterion for credible research. Hence as far as possible, personal biases, prejudices and preferences will not be allowed to colour the conduct of the research or the interpretation of results thereof. Care will be taken to see that only genuine, valid and reliable data will be considered for the research study. Before administering the questionnaire, prior consent of the respondents will be sought. The nature of the research together with its aims and objectives will be explained to them beforehand. No attempt will be made to contact the employees through non official channels or to elicit information from them through any other method apart from the questionnaire and telephone interview. The author will not make any effort to tamper with company policy or internal records and will respect the company condition that the identities of respondents be kept confidential.

Expected Findings From the literature review it was identified that a common global strategy will not be effective in penetrating markets in developing / underdeveloped countries. A process of localization is a must if strategies are to succeed. This is particularly so in countries like India and China were target customers are still deeply rooted in their traditional cultures, traditional and conventional lifestyles. However whether this aspect has actually been followed by MNCs in their penetration strategies has not been adequately studied. This research will serve to bridge this gap. If it is found that localization is necessary, then the hypotheses identified through theoretical study stands validated. Else it will be rejected.