My ARM research paper

2012

Hamza Shahid

(122758) Institute of management

sciences, Lahore11/5/2012

BUSINESS OPPURTUNITY IN FAST FOOD INDUSTRY

Table of Contents

Abstract

Introduction to the research topic

Observation

Problem definition

Preliminary data gathering

Literature review

Interviews

Theoretical framework

Nature and direction

Logical statements

Methodology

Findings and conclusion

Business opportunity in fast food industry Page 1

Hamza Shahid

(122758) Institute of management

sciences, Lahore11/5/2012

Abstract

The study has been conducted to find out the

business opportunity in fast food industry and the

factors associated with its expansion at such a

rapid face. The study has revealed such valuable

factors associated with the fast food consumption

and fast food business which provide us with

significant proof to invest in the fast food

business. The study is exploratory in nature. This

is an applied research which has given positive

sign for the investment in the fast food business.


.

Introduction

Today in the 21st century the life is so fast paced thatpeople even do not have the time for making themselves propermeals at homes. This has also taken people away from healthy foodand hygienic food consumption. This fast paced life style haslead people towards adapting new ways of eating. It has alsochanged the culture of the country; people are significantlyindulged in consumption of fast food. People are tilted towardsconsuming fast food because it involves less hustle and is easyto get. This is the point where fast food industry has grown andmany large brands like Hardies, McDonalds, KFC and many otherlocal brands have entered the industry in Pakistan. With theintervention of these fast food companies entering in the marketit has turned fast food business into a golden opportunity forinvestment and to earn more and more profit.


This research work is carried to identify the factors that arepivotal towards the growth in fast food industry in Pakistan. Thefocus of the study is to find out the most important factors thatare associated with success of fast food industry in Pakistan.The research will also identify the factors that has made thisbusiness such a great success mantra in the country.

Observation

“New restaurants in Lahore”

Problem definition

“Is there a business opportunity in food industry”

Preliminary Data Gathering

The tools that have been used over here are as follows:

Literature review Interviews

Literature review :

The first step towards the data gathering was the literaturereview. The literature review showed that there is a significantchange in the culture of the citizens of Lahore. The literatureshowed that female induction into the society has played a greatrole in changing the eating habits of the people. The researchwork done previously by the students of Pak Aims 081 batch“Hunter and Kd.” The research report served as the base for thisresearch work. It helped to identify that there is a growingbusiness opportunity. It also showed that there were some factorsdiscussed that were playing a pivotal role in the fast growingfast food business.


Secondly the literature showed that significant level of increasein the restaurants in Lahore city. The number of increasedrestaurants in Lahore is a clear signal towards the change.

Interviews :

As mentioned above there was no significant literature availableabout the fast food industry of Pakistan. In order to get theright results and to get unbiased answers informal interviewswere conducted so that grave factors associated with this fastgrowing business can be identified. Informal interviews leadtowards the factors that were part of decision making of thepeople and enabled to determine the situations in which theypreferred to consume fast food rather than regular meals. Theseinformal interviews with the people at random places likecafeteria, parking areas class rooms etc. provided with suchfactors that were highly associated with the purchase preference.

Theoretical framework

The theoretical framework consists of the following: Identification of variables Prioritizing the variables Thematic diagram Nature and direction Logical statement

Identification of variables:

Gender Cost of food Brand Market structure Variety in fast food Quality of food Ease of access Aesthetics Retail environment Bundle offers


SALES

Economic conditions Consumer buying power Time Social gathering

Prioritizing the variables:

Here we have covered both perspectives:

Consumer side: Bundle offers and Cost of foodSeller side: Brand name and Ease of access

Thematic diagram

Nature and direction

A sale of fast food is directly related to bundle offerswith quality playing a mediating role.


Buyer

Ease of

access

Cost of

Seller

Bundle

Brand Name

Variety, Quality

Economy

Time

Sales and cost of fast food are inversely related with eachwith market structure playing a mediating role.

Sales and brand name are directly and positive relationswith each other.

Sales and ease of access have positive and direct relation.

Logical statements

If the bundle offers will increase then the sales willincrease.

If the cost of food will decrease then sales will increase. If the brand name is catchy than sales will increase. If ease of access increase then sales will increase.

Methodology

Purpose of Study:

It is an exploratory research

Type of Investigation:

It’s correlational because it is about exploring the key factor associated with business growth or opportunity in fast food business in Pakistan.

Extent of Interference:

To make sure that there was no biasness in the research it wascarefully monitored that there was no personal influence on the


research. The research work has no personal ideas that are sharedover here.

Sampling Plan:

Data collection has been done through the questionnaire

Quota sampling Methods used to calculate the statistics was mean, median

and mode.

Unit of analysis:

In order to get accurate results it was important to have theviews from the fast food business managers. Secondly it helped togain deeper insight of success mantra of this business inPakistan. So quota sampling was opted and further the unit ofanalysis chosen was dyads. Dyads means two groups were selectedfor the research both were interrelated to the research. Ithelped to study the pattern of the society, facts behind thisfast adaption to fast food culture and business practices thatare involved in making it grow in such fast pace in Pakistan.

Study setting:

The study was conducted in natural setting as the research was tobe unbiased and pure. The reason behind it was to capture thefirst hand experience of the people so that it enumerates theexact situation of the business.

Time Horizon:


It is longitudinal because the study is related to aparticular time period. The research work has been conducted forthe year 2012. The research is valid for the current time period.

Variables Questionnaires resultsFrequency Percentage

Cost 1625.80645161

Ease of access 1829.03225806

Bundle offers 1829.03225806

Brand 1016.12903226

62100


Findings :

The results have shown that the cultural changes that havebeen observed are serving as a strong factor towards the strongshift of the people towards the fast food. The bundle offers thatprovide the luxury of having extra food have its role to play forthis. These bundle offers attract the people towards them. Thepeople in the working arenas also prefer fast food, so in shortcultural change has led to the change of pupil frame of mind.The other fact was this that due to increased number of femaleworkers and students in society has led towards increasedconsumption of fast food, the reason is it provides goodsocializing event.The second thing is the cost of the fast food over theconventional food of has made it more adaptive and it’s becomemodern fad. The low cost of food and bundle offers that fast foodhas to offer to the people makes it lighter on pocket and peoplecan enjoy the food in social gatherings. The low cost of fastfood makes its more all the rage and a source of enjoyment.The Pakistani’s love to be associated with the brand names.Especially the youth is very keen to be associated with catchybrand names. The people prefer to have branded food and looktrendy in the society.


Another fact that has proved its importance towards the successof the fast food business in Pakistan is the lack of time by thepeople for cooking. As the research was conducted in offices sothat accurate result could be yielded people responses showedthat they don’t have enough time to cook food at home. They saidthat fast food is easy to get and they can have it any time ofthe day even during their work. People working in the officesclaimed that it saves them from hustle (especially females.) ofcooking of food at home and bringing in to the offices.

Conclusion:

The conclusion from the research work is that the main reasons behind the success of fast food business are the culturalchanges in Pakistan. The fast food culture has enrooted itself deep into the youth and corporate people. The ease of access and low cost of food has led towards quick adaption of the people towards the fast food. Hence it provides sufficient proof that investing in fast food business will lead towards good fortunes.

References:

Impact of Fast Food Consumption on Health http://education.lokoi.com/impact-of-fast-food-consumption-

on-health

Abdullah & Kd. Ahmad, Women are more into consumption offast food then men, RMT, IMS


http://education.lokoi.com/impact-of-fast-food-consumption-on-health



Ayesha Baig,Scholars, Management Sciences Department

Riphah International University, Islamabad, Pakistanhttp://www.eurojournals.com/EJEFAS.htm

A Research Report on“Consumer Involvement level of fast food industry

http://www.scribd.com/doc/26246123/%E2%80%9CConsumer-Involvement-level-

of-fast- food-industry-in-Lahore-Pakistan


http://www.scribd.com/doc/26246123/%E2%80%9CConsumer-Involvement-level-of-fast-

http://www.scribd.com/doc/26246123/%E2%80%9CConsumer-Involvement-level-of-fast-

http://www.eurojournals.com/EJEFAS.htm

My ARM research paper

Documents

Transcript of My ARM research paper