Evaluation Stage
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Group Award Graded Unit 3 (HND
1 Planning Stage
Introduction: The aim of this section is to make the plan to write this thesis. It mainly
covers five parts including what companies I choose and their basic information, the
methodologies that I utilize to choose the companies and the advantages and
disadvantage of the methodologies, the reasons why I choose the four companies, the
time schedule to write this thesis, and the resources of the information.
1.1 Company Selected for Project
In this part, I will introduce some basic information of the four companies.
I intend to invest four companies’ shares as follow:
Sector CN Code Prices EPS P/E DPS MC
(in millions)
Banks Barclays BARC 133.90p-353.50p 30.40p 8.60 5.50p £ 22,168.17
Standard Chartered STAN 1,141.50 - 1,947.50 180.00¢ 15.60 70.00¢ £ 33,616.57
Mining BHP Billiton BLT 1,624.50p-3,344.05p 394.00¢ 10.10 101.00¢ £ 42,600.49
Rio Tinto RIO 2,636.50p - 6,951.16p 713.00¢ 10.10 108.00¢ £ 51,834.43
(Note: CN is short for Company Name. EPS is short for Earning per Share. DPS is
short for Dividend per Share. MC is short for Market Capitalization. The four
corporations all belong to FTSE 100. The data of BARC, STAN, and RIO is 2010 and
the data of BLT is 2011. The price is the price of the previous year.)
Barclays PLC was founded in 1896 and is headquartered in London, the United
Kingdom. It has operations in over 50 countries and territories across Africa, Asia,
European, North American and South American and around 48 million customers. It
offers retail and commercial banking, credit cards, investment banking, wealth
management, and investment management services. In addition, Barclays has been Group Award Graded Unit 3 (HND
2 recognized all over the world for its achievements: from innovative products and
exemplary people to charity work and sustainability initiatives.
Standard Chartered PLC was founded in 1853 and is headquartered in London, the
United Kingdom with operations in more than seventy countries. It operates a
network of over 1,700 branches and outlets and employs around 75,000 people. Its
main products include Credit cards, Consumer banking, corporate banking, finance
and insurance, investment banking, mortgage loans, private banking, and wealth
management. Above all, it is trusted worldwide for upholding high standards of
corporate governance, social responsibility, environmental protection and employee
diversity.
BHP Billiton is a global mining, oil and gas company headquartered in Melbourne,
Australia and with a major management office in London, United Kingdom. It
operates primarily in Australia, the United Kingdom, rest of Europe, China, Japan,
other Asian countries, North America, South America, and southern Africa. It engages
in the exploration, development, production, and marketing of oil and gas properties.
Additionally, it focus on investing in high-quality, expandable resource basins where
large mineralization deposits create significant growth options.
The Rio Tinto Group is a diversified, British-Australian, multinational mining and
resources group with headquarters in London and Melbourne. The company has
operations on six continents but is mainly concentrated in Australia and Canada.
Although primarily focused on extraction of minerals, Rio Tinto also has significant
operations in refining, particularly for refining bauxite and iron ore. Furthermore, the
company is seeking to become a major producer of nickel, with exploration projects
currently underway in the United States and Indonesia.
Group Award Graded Unit 3 (HND
3 1.2 Approach to the Project
In this thesis, I am going to utilize six methodologies, which includes primary
research, secondary research, fundamental analysis, technical analysis, horizontal
analysis, and time analysis.
For primary and secondary research, they belong to the method of data collection.
Primary research consists in research to collect original data and achieve special
purpose. This can be through numerous forms, including questionnaires, direct
observation and telephone interviews amongst others. While, Secondary research
involves the summary, collation or synthesis of existing research rather than primary
research, where data are collected from, for example research subjects or experiments
(). The strengths and weaknesses of the two marketing researches are
in existence as follow:
Advantages Disadvantages
Primary
Research 1. It can address specific research issues as the
researcher controls the search design to fit their
needs
2. It enables the researcher to have a higher
control over how the information is collected.
3. Compared with secondary research, it can give
more details to the researchers and the data are
reliable.
1. It may be very expensive in
preparing and carrying out the