Research Proposal: Macroeconomic Indicators and UK Stock Exchange Risk

This research proposal examines the influence of macroeconomic indicators on market risk within the UK stock exchange, with a focus on Tesco PLC. The study aims to analyze the concept of market risk, evaluate its positive and negative impacts on retail organizations, and recommend effective risk management strategies. The literature review covers market risk concepts and the effects of various factors such as economic changes, foreign exchange, political instability, and cultural aspects. The methodology section outlines the use of qualitative research techniques, interpretivism as a research philosophy, and a descriptive research design. Data collection will involve primary data through questionnaires and secondary data from books and journals. A simple random sampling method will be used, targeting employees of Tesco PLC. The collected data will be analyzed to assess the relationship between macroeconomic indicators and market risk, providing insights into stock market performance and risk management practices.

Research Proposal
1

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Overview and Rational of Study..................................................................................................3
Research Aim and Objectives......................................................................................................3
Research Questions......................................................................................................................4
LITERATURE REVIEW................................................................................................................4
Concept of market risk.................................................................................................................4
Positive and negative influence of risk management on organisation performance....................6
Ways to improve effectiveness of risk management process......................................................7
RESEARCH METHODOLOGY.....................................................................................................7
Research technique......................................................................................................................7
Research Philosophy....................................................................................................................8
Research design...........................................................................................................................8
Data Collection............................................................................................................................8
Sampling Method.........................................................................................................................9
Analysing The Data.....................................................................................................................9
Ethical Issues.............................................................................................................................10
Research limitation....................................................................................................................10
ACTION PLAN.............................................................................................................................10
REFERENCES..............................................................................................................................12

Topic: “Macroeconomic Indicators which Directly or Indirectly Affect the Market Risk of UK
Stock Exchange”
INTRODUCTION
Overview and Rational of Study
A well-established stock market is continually giving the chance to reserve funds and ventures.
The key target of a securities exchange is to encourage the savers and the borrowers, as it gathers
the funds from various pools and give the stage to change over them into productive venture. A
securities exchange is likewise useful for reallocation of assets in various areas of the economy.
The macroeconomic variables have essential worries in picking the stocks accessible in
securities exchange. The speculators dependably need to think about the variables that have
critical effect on the future comes back to deal with their portfolios. The strategy, producers
ought to pay consideration on the financial variables in the association of stock returns that
should lead pointer for forecast of the monetary exercises.
The accident in any securities exchange demonstrates poor monetary conditions and pushes the
financial exercises of its nation to back steps. Karachi Stock Exchange (KSE) is built up in 1947
and KSE 100 record was propelled in 1991 comprises of main 100 organizations which are
singled out the premise of capitalization. The macroeconomic variables have much impact on a
securities exchange. There are numerous worldwide occasions and arrangements, trailed by the
creating nations alongside their household variables cause the negative impact on business
sector. In later past, the industry and KSE changed quickly and henceforth, influenced the
monetary states of Pakistan. The created nations money related business sector are seen to be
more disclosed when contrasted with the creating nations, so more research is required keeping
in mind the end goal to enhance speculation choice by amplifying the normal estimation of stock
returns in creating nations. The nearness of a relationship, if any has allured numerous
scrutinizes to observationally settled models to anticipate stock costs.
In addition to this, it has been identified that the market risk is the possibility for an investor to
experience losses due to factors that affect the overall performance of the financial markets

(Esteves, 2010). Due to uncertainties in various factors the businesses faces issues in the market
so with an assistance of risk assessment process the organisations can overcome it in appropriate
manner.
Research Aim and Objectives
Aim
The main aim behind carrying out the present study will be to analyse how
macroeconomic indicators influence the execution of securities exchanges by utilizing the UK
Stock Exchange as a contextual analysis. The absolute commitment of this study is its
accentuation on macroeconomic variables and securities exchange execution in a little nation,
since most studies have focused on securities exchanges and monetary development in cutting
edge economies and “To assess the impact of market risk on overall performance of
organisation”. In this regard, the Tesco PLC will be considered as organisation.
Objectives
 To study the concept of market risk am Macroeconomic.
 To evaluate positive and negative influence of market risk on retail organisation
 To recommend ways through which market risk can be carried out in effective manner.
Research Questions
 What is the effect of macroeconomic indicators on stock market risk?
 What is the relationship between macroeconomic variables and market risk premium?
 To what extent each variable can explain the changes in risk premium.
 How Market risk impacts organisation performance?
 What are key ways that can improve market risk process?

LITERATURE REVIEW
Concept of market risk
As per the view of Gallati (2015), there are number of market risk that businesses may
face while operating business in international market. In other aspect, international business
involve large number of market risk and uncertainties that can be reason for the downfall of
company. It has been identified that the risk within business can be related to different aspects
such as political, economic, legal, social, etc (Groth and Muntermann, 2011). It is necessary for
organisations to have effective evaluation of diverse market risks that may influence
performance and create barriers in decision making process. However, companies can also
overcome these risk through mitigation process. Hull (2012) has said that the market risk is
considered as uncertainty that is related with the future aspects of business. It also refers
unfavourable changes in price of raw materials and other factors so management must ensure
about it in appropriate manner. In this regard, rapid increase competition in international trade
and frequent modifications in market conditions which makes difficult for business to compete
and execute various functions (Hull, 2012). It is necessary for business firm to make sure that the
activities are designed in appropriate manner so that market risk can be reduced. It is also
significant for organisations to focus on integrated work style so that market can be stimulate and
diversified risk that influence market scenario can be overcome in order to expand business.
Christoffersen (2012) has also contended that there are number of market risks that need
to be consider by business firms in order to ensure about sustainable development. Classification
of risk factors can be as market risk due to credits, economic changes creates market risk, foreign
exchange also influence market conditions, political instability impacts market conditions and
cultural aspects related to market risk (Christoffersen, 2012).
Rejda (2011) has critically stated that the changes in economic aspects also creates a
market risk for the businesses. It is because the rapid changes in economic conditions influences
the overall performance and forces management to have modification in pricing or policies as per
economic factors. If business are not having changes as per market conditions then company
may face critical failure issues (Rejda, 2011).
In this respect, the Kaplan (2012) has said that the exchange of currency is also referred
as critical risk in regard to market for the companies and it may influence overall business in
diverse manner. In this regard, it is possible that the exchange rates may be high in international

market as compared to domestic one. It increases the overall expenditure which may create issue
for business while operating business in global market (Kaplan, 2012). Other than this, Groth,
(2011) has also stated that the political and cultural risk within market also need to be consider as
critical aspect for the companies because it influences overall operational activities in diverse
manner. It may be possible that government has transformed policies in regard to trade of retail
products. It impacts the overall development of firm and may create negative influence on
business. Market conditions will also change in diverse manner which will impact business in
different aspects (Kresta, 2012). In other aspect, the uncertainties in political aspects promotes
market risk that may influence overall market conditions. It means organisations needs to ensure
about it in appropriate manner for sustainable development. For example, changes in trade
policies forces management to bring modifications in overall operations so that company can
sustain effectively in the market. It may influences the employee's perception and may create
other issues that may lead business to failure conditions.
Concept of macroeconomic
(Still need 450 words talk about macroeconomic?)
RESEARCH METHODOLOGY
Research technique
As per the detailed study, it is also necessary for researcher to have effective selection of
the research technique. Qualitative researches means the study which is based on analysing the
actions, behaviours and nature of any particular subject matter. It also helps in effective
gathering of information and ensure that the concept of market risk can be analysed in
appropriate manner (Bak, 2011). Using of qualitative data in the study gives more comprehend
and detail information to interpret about the topic of the study. In addition to this, the qualitative
research also provides an assistance in descriptive study of the subject. It means the qualitative
study will be more suitable for the study as compared to qualitative. In present study, the

researcher will have accomplishment of goals and objectives on the basis of qualitative
technique.
Research Philosophy
There are different types of philosophies that can be accessed by the researcher in order
to have effective development of methodology for completion of research. Classification of
philosophies can be as interpretivisim and positivism. In respect to the interpretivism the
activities are performed according to the belief. It also focuses on the reason and purpose behind
final result (Saunders, Lyon and Möllering, 2012). On the other side, the positivism demands a
specific evidence evaluation that may be one of barrier for the researcher. Current investigation
will be based on intepretivism and it suits the nature of study. It is most suitable philosophy for
qualitative research and provides effective accomplishment of investigation goals and objectives.
Research design
The term research design explains about the framework on the basis of which entire
information which is collected for the research is examined and detailed. In addition to this, with
an assistance of descriptive research design the researcher will easily analyse the content in
detailed manner. In other aspect, the topic can be investigated in detailed for better
accomplishment of the goals and objectives (Creswell, 2013). It will also facilitate in gaining
appropriate knowledge about subject. Information about particular issue will be evaluated
effectively so that market risk and macroeconomic can be understand in desired form. Current
descriptive research will use Pragmatism (mixed methods) provide effective involvement of
actions that can easily provide optimistic outcome.
Data Collection
There are two key approaches of data collection that can be used by the investigator in
order to meet the goals and objectives. It has been identified that the primary and secondary data
collection both are critical aspect. For current research primary and secondary method will be
adopted by the investigator. In primary investigation the assistance of questionnaire will be
considered so that information can be gathered in appropriate manner. Questions will be
designed in open ended and close form so that better outcome can be attained from the study
(Merriam, 2009). On the other side, in regard to the secondary research the investigator will
access number of secondary sources. Classification of secondary aspects can be as books,

journals, online links, etc. It will help in effective understanding of the market risk concept and
analyse the impact on organisation performance.
Sampling Method
Sampling method also plays a vital role in effective gathering of information, it means
the researcher to focus it on appropriate manner. In addition to this, method of sampling is used
to gather the appropriate amount of information from the selected samples. For current research,
the investigator will have focus on method of simple random sampling. It is considered as a
section of sampling that provide a probability of the outcome. In present research, investigator
will select the random sampling from the employees of Tesco PLC, UK stock market. The
information will be gotten to by reaching the participants through email. In other aspect, the
workforce of Tesco PLC will be the participants or they are the primary mode of data collection
(Saunders, Lyon and Möllering, 2012). Responses will be gathered from 20 employees in order
to evaluate positive and negative influence of market risk on retail organisation. In this regard,
the technique of random sampling will be selected because responses will be selected on random
basis. According to topic and nature of investigation the selected sample size is appropriate to
understand the concept of market risk.
Analysing The Data
It is necessary for researcher to have effective selection of data analysis method because
it plays key role in evaluation of data gathering and provides final outcome. Data analysis
method also need to be selected according to nature of the research so that information can be
evaluated in appropriate manner (Bell, 2010). Current research will be accomplished as per the
consideration of the thematic data analysis method. In this different themes will be designed on
the basis of primary data and then interpret the conclusion according to the graphs and responses.
In present research, it will be analysed by the researcher that how risk factors impacts
work performance. Information about different ways can be gathered in order to overcome risk
and lead business to impressive level of success (Coram, 2011). It will also provide learning in
regard to positive and negative impact of risk process on the macroeconomic. It is also expected
that from the learning to identify ways through which market risk can be carried out in effective
manner.

Ethical Issues
In order to have effective accomplishment of the research, it is also necessary for
researcher to ensure about ethical aspects in appropriate manner. In this respect, the investigator
will also evaluate ethical values while conducting the research. Investigator will make sure that
the information about subject and nature of research is provided to all participants in suitable
manner. Plagiarism factor will also be referred in order to make sure that the ethical standards
are properly maintained in order to accomplish goals and objectives of the research. Moreover,
the personal information of participants will not be accessed without any permission of
respondents (Creswell, 2009). It will also be ensured that the information used in the research
have prior permission of the respondents and all authorities so that ethics values can be rendered
in appropriate way. Responses will also be gathered according to standards of ethical values so
that research objectives can be accomplished.
Research limitation
Current study also consist of various factors that limits the outcome, so it is necessary for
researcher to ensure about these factors in appropriate manner. It might be possible that the lack
availability of literature documents on the topic can be barrier for the study. It may influence the
overall outcome of the investigation in negative manner (Chui, 2007). Moreover, it has also been
identified that individuals does not ready to provide responses in easy manner. It means it can be
one of critical task for the organisation so researcher needs to ensure about it in appropriate
manner.
ACTION PLAN
Key Activities
Octob
er
Novem
ber
Dece
mber
Janua
ry
Febru
ary
Marc
h
Abril Ma
y
Preparing for
Introduction
Literature Review
Collecting secondary
information

Examining of
collected Data
Research Design
Research
Methodology
Obtaining Primary
Data
Analysis of primary
and secondary data
Conclusions and
Recommendations
Completion of
remaining work
Revise and draft
Final Submission

REFERENCES
Books and Journals
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Bell, J., 2010. Doing Your Research Project. 5th ed. McGraw-Hill International.
Chapman, R.J., 2011. Simple tools and techniques for enterprise risk management. John Wiley
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Christoffersen, P.F., 2012. Elements of financial risk management. Academic Press.
Chui, W., 2007. Research Methods. Edinburgh University Press.
Coram, S., 2011. Rethinking Indigenous Research Approval - The Perspective of a ‘Stranger’.
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Publications, Inc.
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Kaplan, G., 2012. Moving back home: Insurance against labor market risk. Journal of Political
Economy. 120(3). pp.446-512.

Kresta, A., 2012. International Equity Portfolio Risk Modeling: The Case of the NIG Model and
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