Hence, multinational firms are eager to operate in the market. But due to political uncertainties, they fear for losses (Desai, 2009) and have adopted business strategies such as purchasing of licenses or franchising. Hence, the global firm’s leases out their trading licenses at the company inception. However, during that period, they monitor the business situation and understand the market more as they prepare for a takeover.
Qatar comprises of many culture that majorly originate from the Middle East. Hence, the global firms that wish to operate in the market are more suitable to apply the franchising way rather than the trade licenses. The essential component of any business is to influence customers. Hence, by use of franchising, they use the local persons who understand the environment better (Schwab & Martin, 2011). Hence, they can implement strategies that influence persons making the business to grow faster.
The global firms like MacDonald’s are majorly operating in food staffs. Hence, they need to study the locals’ culture first and see where to improve.