Solution Design: Research Design, Methodology and Evaluation

This report presents a comprehensive solution design for a research project, focusing on the research methodology adopted. It begins with an introduction and proceeds to discuss the research philosophy (pragmatism), approach (abductive), and design (explanatory) chosen for the study. The report outlines the types of research, data collection methods (primary and secondary), sampling strategy (50 companies from the FTSE 350 Index), and data analysis techniques. It emphasizes the importance of validity and reliability, as well as ethical considerations such as restricted access and proper citation. The report also acknowledges research limitations, including time constraints and insufficient secondary information. Furthermore, the report addresses the negative impact of the global financial crisis, particularly on shareholder value and corporate governance, advocating for strategic decision-making and risk assessment to mitigate future financial instability. The document highlights the importance of understanding the impact of financial crises on investor behavior and firm performance, emphasizing the need for robust corporate strategies and effective leadership.

Solution Design (Research
Design and Methodology)

Table of Contents
CHAPTER 4: SOLUTION DESIGN..............................................................................................2
4.1 Introduction............................................................................................................................2
4.2 Research philosophy..............................................................................................................2
4.3 Research approach.................................................................................................................2
4.4 Research design.....................................................................................................................2
4.5 Type of research....................................................................................................................3
4.6 Data collection.......................................................................................................................3
4.7 Sampling................................................................................................................................4
4.8 Data analysis..........................................................................................................................4
4.9 Validity and reliability...........................................................................................................4
4.10 Ethical considerations..........................................................................................................5
4.11Research limitations..............................................................................................................5
Probable solution to the issues.....................................................................................................5
CHAPTER 5: SOLUTION EVALUATION.................................................................................19
CHAPTER SIX: CONCLUSION..................................................................................................35
Conclusion.................................................................................................................................35
Implication for both practice and future research......................................................................42
REFERENCES..............................................................................................................................44
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CHAPTER 4: SOLUTION DESIGN
4.1 Introduction
After literature review, solution design is considered to be the most important chapter of
whole dissertation, where, the researcher is able to frame methodology which will be taken into
consideration. It helps in ensuring that appropriate set of design has been used in a manner that
best possible outcomes can be derived out of it. The chapter is responsible for explaining that
how the overall research will be carried out using appropriate methodologies (Neuman, 2013).
4.2 Research philosophy
There are various types of research philosophies that can be use by the researcher. These
are, positivism, interpretivism and realism. Positivism research philosophy helps in providing
adequate justification to the researchers as well as readers. However, in case of interpretivism
philosophy, it is responsible for interpreting various elements of the investigation(Lewis, 2015).
Another type of research philosophy is realism which generally rely on the idea
ofindependence of reality from human mind. There is a greater assumption of scientific approach
for core development of knowledge (Brinkmann, 2014). Hence, in the present research,
pragmatism type of research philosophy has been taken into consideration which has helped in
generating specific picture of overall research. This is most suitable method because this has
supported in focusing on actual research area and finding more practical problems in the
Corinthia group. It has also been able to draw effective conclusion, in broader sense, out of the
research that has been initiated. Realism approach has helped in finding out the reasons of
financial crisis and also its impact on functioning of various other companies.
4.3 Research approach
There are basically two types of research approach. These are, inductive and deductive.
Inductive type of research approach helps in finding out new theory and initiate the content from
specific to generalaspects (Vaioleti, 2016). However, in case of deductive approach, the content
moves from generalto specific aspects. In the present study abductive approach has been used.
This method has supported in combining qualitative and quantitative data in effective manner.
This is significantly able to meet with the entire research objective and finding positive results.
Innovation and sustainability in themethods adopted at the time of financial crisis and after it can
be found out which could have improvedoverall condition of entities. Inductive approach can be
quite helpful in this scenario.
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4.4 Research design
Research design helps in collecting, measuring and analysing data. There are various types
of research designs, such as, descriptive, exploratory and explanatory (Flick, 2015). Descriptive
research refers to describing the characteristics of population based on the phenomenon that has
been studied in subject matter. In exploratory type of research design, study is generally
conducted for a problem which has not been clearly studied in the past research or any addition
in the concept have developed the requirements of researching the concept or subject matter
more. Another type of research design is explanatory research design, where, the ideas are
attempted to be connected in such a manner thatcause and effect relationship of the same can be
studies in order to explain overall crux of the study (BNS and HV, 2013). In the present research
explanatory type of research design will be taken into consideration so as to develop a
relationship between existing as well as new knowledge aspects.
4.5 Type of research
There are basically three types of research. These are,qualitative, quantitative and case
study. Qualitative type of research helps in exploring the issue in a well-defined manner. It also
helps in answering various questions after analysis has been performed and develop sense from
an unstructured data. Hence, it can be stated that, this type of study is suitable in conducting in
depth studies related to subject matter(Panneerselvam, 2014). Quantitative research helps in
calculation of specific results and finding out the outcomes in most systematic manner. Another
type of research is case study, where, case of a particular organization is taken into consideration.
It helps in generation of multi-facetedunderstanding of a particular complex issue which is
present in a real-life context.
In the present research,case study approach will be taken into consideration.
4.6 Data collection
It is considered to be one of the most important aspects of the research which is related to
collection of data in such a manner that overall specific outcomes can be generated out of the
research. There are basically two types of data collection methods that can be used in the
research. These are primary as well as secondary type of research. Primary type of data
collection method helps in collecting first hand data, which has not been adopted by any other
researcher earlier (Smith, 2015).However, in case of secondary type of data collection method,
data that has already been collected by the other researcher is taken into consideration.
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In the present research, both primary as well as secondary type of data collection method
will be used so as to reach to the specific research. It will also be helpful in development of new
theory which may not be derived by the other researchers. To collect secondary data books,
research papers, periodicals, journals, conference papers, directories, research reports, has been
taken into consideration (Gale and et.al., 2013). Also,secondary data has also been collected with
respect to global financial crisis with the help of books and journals.
4.7 Sampling
A sample is a subset of overall population. It is not possible for the research to conduct
research on whole of the population. In this scenario, a sample, as a representation of whole
population, is chosen so as to generate specific results which can thereby be generalised all over
again. In the present research of analysis of factors related to shareholders, a sample of 50
companies will be chosen so as to carry out the research. These companies are listed on FTSE
350 Index which has inclusion of UK’s largest companies. The entities will be selected
randomly.
4.8 Data analysis
Data analysis is one of the most important aspect of the research which helps in preparing
an assessment of what type of data analysis method will be taken into consideration on data that
has been collected for the present research(Reynolds and et.al, 2014).There are basically two
types of data analysis method which can be adopted by the researcher in the present research.
These methods are, qualitative type of data analysis and quantitative type of data analysis.
Qualitative concerns towards obtainingin-depthinsights with respect to the chosen subject matter.
It helps in exploring various aspects of the research which assist in reaching to specific
conclusion as well. However, incomparison to this, quantitative approach helps in drawing out
results by using various statistical tests
4.9 Validity and reliability
When any type of study is initiated, it is important from the part of researcher
thatappropriate types of tools and techniques are taken into consideration. Hence, in this
scenario, it becomes important to consider the concept of validity and reliability aspects while
preparing research. Validity helps in indicating how flawless the overall research has been
conducted. Data collection is the true reflection of validity where it can be ascertained that
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whether the particular data is true reflection of validity phenomenon or not(Nieswiadomy and
Bailey, 2017).
Reliability is another important aspect that is important to be present in the research. It is
an important aspect to measure the overall quality of conducted investigation.The current study
focuses on stakeholders where data will be gathered through authenticated sources only so as to
produce effective results. It has been ensured by the researcher that there is engagement of
minimum biasness and manipulation in the research being conducted by him (Karanikolos,
Mackenbach and McKee, 2013).
4.10 Ethical considerations
In the present research, the researcher hasconsidered the following aspects that are related
to ethics. These factors are mentioned below: Restricted access:The work required to refer certainwebsitesso as to gather information
which is secondary in nature. Some of them do not have access to use them directly. In this
scenario, prior permission has been taken by authors and then only information is collected
from those websites (Vera and Fabian, 2016). Citing work:In certain cases, work of previous scholars has also been included who must
have conducted research on similar topic. Proper citing of work has been done based on
information that has been gathered through various sources.
4.11Research limitations
There are certain limitations that acts a hinderance in providing specific results to the
readers. In the present research as well, there are certain challenges that are faced by the
researcher in presenting the dissertation. Some of the limitations that are linked to it are as
follows: Time consuming process:Conducting a research is a prolonged process as data collection
and analysis taken longer time and thenanalysis aspect is also time taking scenario (The case
study approach, 2011). However, it has been ensured by researcher of present investigation
that all the important aspects of research are properly taken care of and adequate time is
given to each and every aspect of the research. Insufficient secondary information:The present research is based on factors related to
shareholders. The other limitation that has been faced by the researcher is that, all the
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important information related to subject matter is not specifically available to the researcher
which has led to create restrictions on overall results of the research.
Probable solution to the issues
Negative impact of global financial crisis
Global financialcrisis has been able to have long term sustainability impact of
companies.It not only resulted inineffective functioning of companies but had greater impact on
overall shareholder’s value. Entities experienced economic and financialbreakdown in the
company which has affectedoverallgeneration of revenue and even its stability in the market
(Shiller, 2012).The corporations, which used to be high value risk taking companies, have now
become performance concerned. It is detrimental to focus on only profits without analysing
ongoing conditions of share market. It has become important for the management to focus on
various factors that has led to financial crisis and the methods that can be adopted if it tends to
occur again in the financial market. In that scenario, it will be informed risk which can
effectively be managed by the management of company.
A stronger impact of financial crisis has also been propounded on investing behaviour of
investors due to external shock and sudden down experiencedby the market in the year 2008.
Hence, investors tend to take all their decision wiselyand ensure that whether they want to make
investment in a particular company or not. It basically helps in identifying their risk-
takingbehaviourand if the market is at riskor not (Peters and et.al., 2012). A strong relationship
has been developed since then between, actual performanceof the firm and value creation. It
becomes difficult for the management of the company to manage shareholders and performance
of the organizationwith declining returns. It generates the requirement of establishment of
corporate strategy that helps inidentification of risk, it is takes place in near future. So as to
perform this function, it is important to prepare an assessment of condition so thatreason of
global financial crisis can be explored. Effectiveness of leadership and strategic decision making
can help in exploration of the same. It is important for the organization to ensure that the
decision making must be focused and of sustained value for both long as well as short term
(Erkens, Hung and Matos, 2012).
The main aim of strategic managers is to ensure that adequate outcomes have been
achieved without hampering core activities of the business. Financial crisis has led to increase
focus on corporate governance and strategic alignments of the company so that desired outcomes
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can be attained. It was the main reason due to which various companies, such as Enron, failed to
come out successfully from the crisis of 2008 (Taylor, 2013). Ability of companies to have high
level of accountabilityand transparency can also help in ensuring that appropriate strategies of
research have been prepared by the managers.
Another proposed solution for the situation of financial crisis is optimum utilization and
allocation of available resources so that it can be preserved for future requirements. It helps in
ensuring that whenever financial crisis will occur in the market, the company will be able to cope
up with it with the help of accumulated resources. Plan may include, reduction of debt, increase
in number of shareholders, aiding development or expansion plan, etc. It is important to regularly
analyse the performance of business in such a manner that better corrective actions can be taken
by the team incase of sudden crisis (Fratzscher, 2012). Strive to achieve the target, being framed,
as to all the resources and functions can move towards the same direction.Developing
communication with customers and suppliers is the other aspect that must positively be
considered by the team while handling financial crisis in the company. Crisis communication
plan must be prepared beforehand, by the management so that solution can be achieved by
communicating with other stakeholders of the company as well.
The year 2008, case up with various economic experiences for the companies, where they
faced major downturn experienced by America, whose impact was also born by other countries
aswell. Credit melt down led to worldwide reduction in overall spending of
corporations.Common unfavourable aspects of financial crisis are, rise in inflation,
unemployment, negative or very low growth rate, falling prices of assets, reduction in overall
spending of the consumers (Aebi, Sabato and Schmid, 2012). It is not only unfavourable position
for business practices but it is also not effective for conducting business operations. It is difficult
to maintain favourable economic environment all the time, especially when crisis strikes, it can
challenge the well being of company. It is the time, when it is required to taker appropriate
actions that can help or save the organization from sinking. One of the important aspect at that
time is to have positive behaviour andinitiate new ideas among employees which can help in
coping up with the issue the organization must be facing due to economical crisis. Financial
turmoil in the organization may affect overall sales revenue and profits which ultimately affect
overallfunctioning of the company. Cost cutting can improve the performance of the company
(Chodorow-Reich, 2013). However,new and effective set of employees and retrenching the
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ineffective one is another solution that can be available in front of management of company, at
the time of financial crisis. It helps in ensuring smooth operations. However, company may also
face issue related to decrease in overall demand of the products and services, where slowing
down of spending can help in combating the difference.
When there is constant decline in revenues of the company, the same is also reflected in
the entity’s earning reports as well.It ultimately leads to decline in company’s stock prices also.
Dividend may experience sudden fall and can also reach to zero, if condition of crisis is worse.
Shareholders attempt the sell the stock, hold by them, with the fear of loosing money in near
future. It can also have large impact on volatility of stockDemirguc‐Kunt,Detragiache and
Merrouche, 2013 (). Due to sharp fall in stock prices, the company may face financial crisis as
well, ultimately affecting overall investment aspects in various areas as well. Investor mayalso to
hold the stock and may plan to reinvest the same in other company as well. This can further
depress brand image of the company as well.
Impact of financial crisis on firm’s performance and value creation aspect is also quite
common aspect to be experienced by the entity, which is required to eb considered at the time of
decision making as well. Corporate strategies play an important role in it, where, organization
must focus on corporate governance and strategic aspects of the company so that their strategies
can then be aligned to overall positive performance outcomes of the company (Frankeland
Saravelos, 2012). This aspect of the company is generally controlled by themanagers. Corporate
governance strategies ofthe company may help in development of risk assessment and mitigation
outcomes. Having proper planning and team for the same can help in better dealing with risk and
financial crisis that come up in the environment.
Economic context
Corinthia group have been facing lower revenues and profitability aspects due to ongoing
stagnation in the countries where it primarily focusses on. It has led to bring sharp decline I
productivity and thereby revenues and profitability aspects of the entity as well. It also leads to
bring negative impact on investment aspects of the company (Deaton, 2012). It not only
complicate existence of the company but can contribute in losses and ineffective growth of
organization as well. It is the time when it is required for management of the company to bring
changes in its working aspects so that better management strategies can be adopted to generate
adequate amount of profits, at least to pay out the expenses.
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It is important for Corinthia group to focus on functioning of team so that innovative
steps can be undertaken for better results. Increasing roles and responsibilities of every team
member with the aim of generation of high outcomes can twist the approach of
stagnation.Further, development of new goals and objectives in such a manner that expansioncan
be proclaimed without investment activities canhelp in generation of profits. Spending more time
on profitable clients and planning them in better way can prove to be an effective approach at the
time of stagnation. It helps in generation of high revenues for the company (Covitz, Liang and
Suarez, 2013).
Refocusing on products portfolio and planning to focus upon new industries can help in
bringing necessary increase in overall profitability aspects of the company without bringing any
change in pool of resources and adding new experts to the team. It alsohelps in proving more
profitability in the products as it shows that altogether new set of customers will be targeted
based on current resource base of the company. Slight change in team structure andrefocussing
on product portfolio can help in generating adequate revenues for the organization which may
not be possible in the new industry.
Investing in upgraded technology is another option thatis available in front of the
company in order to deal with the condition of stagnation. Skills training can help in ensuring
that all the requirements of thecustomers are fulfilled without delay or failure (Hunter, Kaufman
and Krueger, 2012). Further, providing extra ordinary services to consumers always tend to
attract large amount of profits, even in the situation of stagnation. Allocating budget for
upgrading technology in a manner that essential version of the same can be arranged so that
revenues can be generated. Applying the same on Corinthia group can help in dealing with
stagnation aspect. When the growth is stagnant in one aspect, it becomes important to invest in
the other, so that, better profitability and revenue can be developed by the team for effective
output.
Bringing constant change in the environment and providing the best to the customers
motivate themto purchase goods and services that are actually offered by the organization.
Constantly holding internal brainstorming sessions and creating and collaborating with new and
innovative ideas helps in speeding up efficiency of the business. Analysing, prioritizing and
taking better actions for the management and consumers can help in better productivity. Its
immediate impact on functioning can also be borne by the management so that benefits of the
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same can be realised for longer period. Continuouslychallenging team to bring new ideas with
respect to it can result in measurable growth. It is quite challenging for the company to enhance
its business in the situation of stagnation (Huang, Zhou and Zhu, 2012). Limited opportunities
and low productivity can intensify the operations, resulting in ineffective generation of profit and
revenue. Integration of risk management aspects in day to day operations and creating situation
of risk assessment and mitigation technique can help in creating situation of comfort for the
company.
Stagnation means availability of less amount of money in the hands of customer, which
ultimately decreases their overall personal disposable income make it challenging and emerge
stressful situation for company that whether they will be able to generate adequate profits or not,
without reaching to vulnerable future crisis. The net result can be decreased shareholders value
and capacity of organization toimprove its functioning aspects. In this scenario, it becomes
important for management to clearly identify various internal and external risks involved in
functioning whose risk assessment and mitigation plan can be prepared for better functioning. A
high amount of cash holding is also a positive activity that can be initiated by the enterprise for
growing and positive results.
Due to changes in political aspects of the country have also prove to be quite ineffective
for the company. It has generated the requirement of changing policies due to constant change in
potential laws that are actually being followed by the company currently. Due to constant risk in
political functions, it has generated the requirement of bringing changes in rules and regulations
of the company so that its functions and output can adequately be improved.Bringing stability in
business functions in such a manner that its operations cangenerate high profits can considered to
be one of the important aspect that can bring organizational functions and its profitability under
control. Economic risks in the functions and managing current environment bring changes in the
business functions as well (Haas and Lelyveld, 2014). The only political risk that is involved in
UK is related to “Brexit”, where country is planning to withdraw from European Union. Reforms
and institutional change can help in ensuring that its negative impact can be attracted to the
minimum. The challenge’s and potential risk involved in it is that Corinthia may lose its market
which may be situated outside UK. Impact on political economy can be obstructed with the help
of implementation of effectivelaws, rules and regulations. Further, planning expansion in product
portfolio and entering into new market of UK can prove to be quite useful for the company
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where foregone profits can be managed. Reforming operations and entire environment of the
company canhelp in adequate generation of profits as well revenue. Although, it can have
potential impact on operations of the company,but application of better and effective policy and
brining changes in operations can prove to be quite effective. On the other hand, it can alsolimit
overall value creation of the company as well.
Issues related to organizational context
Role of governance have been on increasing phase in modernorganizations.It is not that
company is only responsible for maximization of shareholder’s value, but its stronger impact can
alsobe ascertained on meeting the requirements of customers at the time of increasing demands.
Applicability of modern governance helps in making the development aspects more effective
where practices tend to become more reliant which can help in generating effective returns.
Although global crisis has led to bring changes in definition of competitive market due to
opportunistic aspects present in the most unethical manner. It is due to ineffective as well as
unethical business practices adopted by the organization, which made them drown at the time of
global financial crisis (Demirguc‐Kunt,Detragiache and Merrouche, 2013). The scandal initiated
byWorldCom and Enron was related to unethical presentation of their financial statements which
showed their profitability. However, the companies were actually running into losses. It is not
only linked to enhancement in value creation aspects of shareholder. But, its actions must also
fulfil ethicalrequirements as well.It is important to adhere to the modern expectations of
stakeholders, that is adequate expansion and generation of profitability and revenue aspects.
Hence, it is advised to Corinthia group as well, that it must avoid all the unethical practices and
legal actions that are attached inpursuit of shareholder’s value.
Another major issue, in organizational context, can be faced by Corinthia groupis to
maintainits solvency for uncountable period. It is considered to be most vitalaspect of the
organization. Corinthia group is involved in constant investment of operating and developing
hotels and resorts. It mikes challenging for the organization to have adequate amount of liquidity
which can backfire at the time of crisis. Since, it is difficult to gather liquid money in the form of
banks and insurer. It is also not the proactive state which helps in defining liquidity and solvency
of the company. It is quite important for the organization to remain financially viable so that all
the core functions canbe performed. In this scenario, constant analysis of solvency and liquidity
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