Background of the study
Discuss about the Study on the Financial Performance of HSBC Bank in Oman.
Introduction about the selected organization
HSBC has been established in Oman and has been in operation since 1948 and was one of the only banks that were operating the country for the next 20 years after its establishment. The company also assisted in introducing the Omani currency in the market during the 1970s. The bank was the first in opening the ATM services in Oman along with the provision of withdrawals from the international ATM as well (Al-Musali and Ismail 2014). It also introduced the online system for the banking services so that the customers can use the service in an efficient way. The bank was also responsible in establishing the electronic banking system on a commercial scale through the Hexagon product. In the recent market, the bank is responsible for providing a wide range of services to the retail as well as the corporate customers located in Oman (Malik and Nadeem 2014).
The bank is run by Sir Sherard Cowper-Coles who is the Chairman of the branch located in Oman along with Waleed Omar Al Zawawi who is the Deputy Chairman of the bank. The bank provides many opportunities to the customers by introducing many facilities so that it can help them in transacting in a proper manner.
The banking history dates to the 14th century during the renaissance period that took place in Italy. The main objective of the banks was to serve as a link between the customers who have lesser amount of capital and the customers who have an increased wealth in the market. The principles of the banks were to provide innovative products so that it can help in fulfilling the demands of the customers along with coping to the changes during the period of globalization (Ongore and Kusa 2013).
HSBC is one of the largest financial institutions in the world and their strategy is to become the international leader in the financial sector on a global scale. The financial performance of the banks can be understood through the needs that the bank caters for the customers. The banking ratios have to be positive so that it can gain a higher rate of capital in the market along with the financial gains. The bank also needs to take in to consideration the future prospects of the customers so that it can help in retaining them towards the institution. The provision of superior services will result by increasing the promotional and the marketing activities. This will result in increasing the level of branding of the bank as well (Mallin, Farag and Ow-Yong 2014).
Key terms used
Failure of proper financial performances will affect the capital, as it will lead to a loss in the market. This needs to be taken in to consideration by the bank so that they can maintain a better level of operation in the market. The use of the latest technologies will help the banks in gaining a competitive advantage in the market, as more number of customers will trust them in keeping the money in safe hands (Ongore and Kusa 2013).
HSBC Bank, Financial Performance, Oman, Business ratio, Descriptive, Positivism, Survey.
The objective of the study would be as follows:
- To analyse the financial performance of HSBC Bank in Oman for the past 10 years
- To understand the level of impact that the bank creates on the customers in Oman
- To recommend strategies to the bank so that it can help in increasing the financial performances in the region
The research will be based on the following questions:
- How has the bank performed financially in the past 10 years in Oman?
- What level of impact did it create on the customers through the services?
- What are the strategies that can be taken up by the bank in the future so that it can increase its level of financial performance in the Oman market?
The research that will be conducted for the company will help them in analysing the financial performance in the market so that it can be able to understand the level of competitive advantage it will have in the market. This will allow the company in attracting more number of customers so that the level of investment can increase to a greater level. It will also help in providing better suggestion to the bank so that the performance of the financial matrix can be increased as well.
The research will be based on the following hypothesis:
H0– The financial performance of the HSBC Bank does not create an impact on their operations in the Omani market.
H1– The financial performance of the HSBC Bank create an impact on their operations in the Omani market.
There are three types of research that can be taken up by the researcher in completing the study in a proper manner. They are known as descriptive, exploratory and explanatory. The exploratory type of research will result in the hypothesis test, which has been taken up in the process of research with the aims and objectives that are present in the research. The use of various concepts and theories will be done by the researcher so that it can result in testing the hypothesis in a proper manner (Mackey and Gass 2015). It will also allow the researcher in collecting necessary information regarding the topic so that the research can be done in an effective manner. The explanatory type of the research will result in describing the incidences that are taking place during the research is being conducted. It will allow the researcher in providing justification regarding the events that are taking place so that the process can be efficient. The descriptive type of research is a combination of the other types, which allows the researcher in testing the hypothesis and provide explanation for the incidences that are happening in the process of the research (Taylor, Bogdan and DeVault 2015).
Objectives of the research
This research will be based on the descriptive type, as the researcher will be testing the hypothesis that has been taken up for the process along with the objectives that has been framed. This will allow the research to be carried out in a proper manner.
The research will be based on certain philosophies and the most common type of philosophies that are used in the research process are known as pragmatism, positivism and interpretivism. The interpretivsim philosophy considers the various opportunities that are present to the researcher so that the different opinions and point-of-views of the people can be considered with respect to the topic that has been taken up. It is also based on the various opinions that are provided by the people and proper justification is also provided (Glesne 2015). The philosophy known as positivism is based on observations that are quantifiable in nature so that the scientific approach can be taken up by the researcher. This philosophy allows the researcher in validating and verifying the tests before they are conducted so that the process can be efficient. The pragmatic philosophy is based on the combination of the above philosophies, which allows the researcher in making the observations quantifiable and meaningful as well (Brinkmann 2014).
This research will be based on the positivism philosophy, which will allow the researcher in understanding the objectives and the aims that has been taken up for the research process, as the research will be based on the facts that will be collected and tested in a scientific manner.
The research will be based on survey that will be conducted among the employees of HSBC Bank located in Oman. This is due to the fact that the employees will have a better knowledge regarding the performance of the bank in the Omani market. This will also result in assessing the financial performance by comparing the figures of the past 10 years with the present year.
The survey will be based on simple random probability technique where the participants will have an equal opportunity to be included in the process of the survey. This will result in removing the biasness of the researcher towards any respondent (Flick 2015). The size of the sample will be kept to 100 employees so that the research can be conducted in an authentic manner. This will also allow the researcher in conducting the process of research in a limited period so that the time of the process can be saved (Silverman 2016).
Research questions
The researcher has to limit the study to a certain level, as the level of cost does not increase. The main limitation of the researcher will be the factor of cost, as the researcher has a limited amount of source and the project will not be funded by the university. This will also hamper the study, as the source of fund available to the researcher will have helped in gaining necessary information for the websites that cannot be accessed (Smith 2015).
Another major limitation for the researcher will be the time constraint. The limitation of time will hamper the study of the research, as it will not help in conducting the survey for a long period of time. If the time would have been more for the researcher, it would have resulted in surveying more number of employees so that the process of research can be conducted in an authentic manner (Panneerselvam 2014).
The research will be based on primary and secondary methods, as the secondary sources will help in conducting the review of literature in a proper manner. It will help in getting more insights regarding the factors that affect the financial performance of the banks. The primary sources will be the survey that will be conducted. This will help the researcher in recording the responses from the employees so that its analysis can be done properly. The primary data that will be collected will be analysed in a statistical manner so that it can make the research look authentic (Neuman and Robson 2014).
The data that will be collected will be analysed using bar graphs that will be done through MS-Excel so that the representation of the data can be done through statistics. It will then be interpreted by the researcher so that the findings can be stated according to the analysis that was done (Gast and Ledford 2014).
The researcher has to abide by certain rules and regulations, which will help in carrying out the research process properly. The researcher will not apply pressure on the respondents to take part in the survey process. The survey that will be conducted will not be used for any commercial purposes and will be destroyed after the research has been conducted successfully (Toarone, Gass and Cohen 2013).
Reference List
Al-Musali, M.A.K. and Ismail, K.N.I.K., 2014. Intellectual capital and its effect on financial performance of banks: Evidence from Saudi Arabia. Procedia-Social and Behavioral Sciences, 164, pp.201-207.
Brinkmann, S. 2014. Interview. In Encyclopedia of Critical Psychology (pp. 1008-1010). Springer New York.
Flick, U. 2015. Introducing research methodology: A beginner’s guide to doing a research project. Sage.
Gast, D. L., and Ledford, J. R. (Eds.). 2014. Single case research methodology: Applications in special education and behavioral sciences. Routledge.
Glesne, C. 2015. Becoming qualitative researchers: An introduction. Pearson.
Mackey, A., and Gass, S. M. 2015. Second language research: Methodology and design. Routledge.
Malik, M.S. and Nadeem, M., 2014. Impact of corporate social responsibility on the financial performance of banks in Pakistan. International Letters of Social and Humanistic Sciences, 10(1), pp.9-19.
Mallin, C., Farag, H. and Ow-Yong, K., 2014. Corporate social responsibility and financial performance in Islamic banks. Journal of Economic Behavior & Organization, 103, pp.S21-S38.
Neuman, W. L., and Robson, K. 2014. Basics of social research. Pearson Canada.
Ongore, V.O. and Kusa, G.B., 2013. Determinants of financial performance of commercial banks in Kenya. International Journal of Economics and Financial Issues, 3(1), p.237.
Panneerselvam, R. 2014. Research methodology. PHI Learning Pvt. Ltd..
Silverman, D. (Ed.). 2016. Qualitative research. Sage.
Smith, J. A. (Ed.). 2015. Qualitative psychology: A practical guide to research methods. Sage.
Tarone, E. E., Gass, S. M., and Cohen, A. D. (Eds.). 2013. Research methodology in second-language acquisition. Routledge.
Taylor, S. J., Bogdan, R., and DeVault, M. 2015. Introduction to qualitative research methods: A guidebook and resource. John Wiley and Sons.
Vaioleti, T. M. 2016. Talanoa research methodology: A developing position on Pacific research. Waikato Journal of Education, 12(1).
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