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