Research Proposal on McDonald


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To analyze the importance of corporate governance and brand value for a company”. A case study on McDonald's.


The present research is going to investigate the concept of corporate governance and the brand value of a company. For this purpose, McDonald's is taken that deals in the food sector. It is considered one of the largest food restaurants in the UK which serves products from almost all over the world (Aebi, Sabato and Schmid, 2012). Corporate strategy and governance refers to a hierarchically strategic plan that defines present goals as well as ways to attain the same. It majorly focuses on balancing the potentials of management, suppliers, investors and all other stakeholders in an appropriate manner. This would help in building the brand value of the business through which a high competitive advantage can be gained.

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Corporate governance is defined as a system of rules, processes and practices under which a company can direct and control its operations. It involves creating balance among the benefits of stakeholders like shareholders, customers, investors, customers and more. In context with McDonald's, its Board of Directors mainly focuses on leadership and continuous improvement which makes governance policies. They are committed to ensuring the integrity of business in all of its dealings with stakeholders (Chang, 2016). The present research, therefore, helps this company in understanding the importance of corporate governance. This would aid in building an effective brand image as well as create value for the business.

Research Objectives

  • To evaluate the concept of corporate governance and brand value for McDonald's in business expansion.
  • To ascertain the effectiveness of corporate governance made by the Board of Directors of McDonald's.
  • To determine issues of corporate governance failure in McDonald's.
  • To identify methods by which McDonald's can overcome governance failure.

Research Question

  • How to Evaluate the concept of corporate governance and brand value for McDonald's in Business Expansion?
  • What are ways to ascertain the effectiveness of corporate governance made by the Board of Directors of McDonald's?
  • How to determine issues of corporate governance failure in McDonald's?
  • What are the different ways by which McDonald's can overcome governance failure?

Literature Reviews

Concept of Corporate Governance and Brand Value for McDonald's in Business Expansion

As per views of Barnett and Salomon, (2012), it has ascertained that corporate governance seems to be a procedure for economic cooperation and development. It helps in making policies and principles to run business activities in an appropriate manner. In context with McDonald's, its success is built on principles of personal and professional integrity. From financial perceptive, business value is considered an important factor which directly affects profitability. Therefore, both corporate governance and business value aid McDonald's in expanding its corporation on a global level.

Effectiveness of Corporate Governance

According to research carried out by Eccles, Ioannou and Serafeim, (2012), it has evaluated the Board of Directors of McDonald's is entrusted with as well as responsible for oversight of business in a fair and ethical manner. They have also believed that effective corporate governance is considered critical for fulfilling the obligation of the company to shareholders. Along with this, employers of McDonald's good governance refer as a journey, not a destination. Therefore, its BOD has been used to review its governance principles in an annual manner for continuous improvement. This company also give a commitment to stakeholders and shareholders concerned about their benefits while designing corporate strategy and governance.

Issues Behind Failure of Corporate Governance

According to Du and et. al., (2013), it has been comprehended that there are various factors present within the organization, which lead to corporate governance failure. In context with McDonald's, its entire policies and principles are designed by its Board of Directors. They are concerned with the benefits of each stakeholder while making policies. But some factors as given below, hamper adversely its brand value and performance.

  • Lack of planning: Organizational planning covers long-term and short-term goals which specify in what manner activities have to be done. Therefore, failure to plan will destroy the effectiveness of corporate governance as well as lead to the complete breaking down of the structure.
  • Conflict of interest: Since Board of Directors of McDonald's is concerned with each stakeholder's interest while formulating corporate strategies. Therefore, it creates various complexities under this process because of conflicts of interest. It leads to unethical practices also where workers adopt wrong techniques to accomplish their personal goals and objectives.

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Methods to Overcome Corporate Governance Failure

It has been ascertained from the views of Benn Edwards and Williams, (2014)that there are various methods present through which the Board of Directors of McDonald's can overcome the threat of corporate governance failure. It includes:

  • Prioritize Risk Management: It refers to the most crucial way by which the occurrence of corporate governance failure can be minimized. In this regard, managers of McDonald's are required to establish a proper system at the workplace which helps in minimizing risks.
  • Ensure Timely Information: By giving timely information to stakeholders, the BOD of McDonald's can make appropriate decisions about corporate governance (De Grosbois, 2012). This would help in getting the cooperation of each stakeholder in running a business successfully.

Research Method

Research Design: It is a vital component of research which shows in what manner data can be collected and arranged for further processes. It also defines the type of study like descriptive case study, survey, observation and more), experimental and semi-experimental, etc. of a particular research. By defining a framework, investigators can find answers to framed research questions more appropriately.

Data collection: This method of research provides sources through which investigators can collect desired information about a particular. In this regard, primary and secondary sources are considered as the most beneficial research of data collection. Procedures of these methods can be described in the following manner:-

  • Primary Source: It is considered as a most beneficial method of research which helps in collecting reliable data rather than believing in a collection of previous data. Primary research is used to collect data from respondents in a direct manner. It includes interviews, online and offline surveys, questionnaires etc. The major advantage of this method is to collect accurate data and information in a sufficient manner. It concludes the main problems and reduces the unwanted usage of data as well. This method also helps in saving time to gather relevant information rather than waste time to search data from other sources. Apart from this, one of the main disadvantages of primary research is the time-consuming process of getting information. It is more expensive to conduct interviews face-to-face.
  • Secondary Source: It is another method of data collection where investigators can extract relevant information from other published sources. Secondary research provides methods like books and journals, internet websites, newspapers and more, from where various authors and writers have given their viewpoints on the same topic. These type of research methods seems less expensive as well as time effective. Here the informations are readily available which aids investigators in getting information more easily. However, information that is acquired by secondary research methods sometimes does not give reliable information either. This leads to show the major drawback of this technique of data collection.

Ethical Consideration: It also refers to the main aspect of research which indicates in what manner how to carry a research on a relevant topic. It assists investigators to follow ethical rules while conducting set activities research. Along with this, ethical consideration states project makers to not enclose any kind of personal data of clients as well as keep it safe. In this regard, some major characteristics that researchers should have are transparency, delegations, effective and soft communication etc. Such skills and abilities of investigators help in getting the cooperation of team members for the achievement of goals and objectives.

Validity and Reliable Issues: This part concerns on reliability and validity of data gathered by investigators in a research. Therefore, it is necessary for researchers to take data from authenticated sources only.

Resource requirement: In order to carry out entire activities of resources, project managers of McDonald's are required to introduce proper resources. It includes capital, proper time, training and development programs etc. This would help in building confidence of team members and encourage them to give their best for the achievement of goals and objectives.

Time Scale: In order to conduct the entire research as per the required objectives, the project makers of McDonald's will take approximately 4 to 5 months. In this process, they have used proper techniques to complete each activity in a predetermined period so that optimum utilisation of time and resources can be obtained.

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Books and Journals

  • Aebi, V., Sabato, G. and Schmid, M., 2012. Risk management, corporate governance, and bank performance in the financial crisis. Journal of Banking & Finance. 36(12). pp.3213-3226.
  • Barnett, M. L. and Salomon, R. M., 2012. Does it pay to be really good? Addressing the shape of the relationship between social and financial performance. Strategic Management Journal. 33(11). pp.1304-1320.
  • Benn, S., Edwards, M. and Williams, T., 2014. Organizational change for corporate sustainability. Routledge.
  • Chang, J. F., 2016. Business process management systems: strategy and implementation. Auerbach Publications.
  • De Grosbois, D., 2012. Corporate social responsibility reporting by the global hotel industry: Commitment, initiatives and performance. International Journal of Hospitality Management. 31(3). pp.896-905.
  • Du, S. and et. al., 2013. The roles of leadership styles in corporate social responsibility. Journal of business ethics. 114(1). pp.155-169.
  • Eccles, R.G., Ioannou, I. and Serafeim, G., 2012. The impact of a corporate culture of sustainability on corporate behaviour and performance (No. W17950). Cambridge, MA, USA: National Bureau of Economic Research.
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