Increasing The Competitiveness Of Russian Banking Industry - Free Essay Example

Sample details Pages: 12 Words: 3667 Downloads: 7 Date added: 2017/06/26 Category Economics Essay Type Research paper Did you like this example? 1 Introduction 1.1 Purpose The purpose of this research is to develop a strategy or strategies allowing Russian government and banking institutions to increase the competiveness of domestic banking industry through processes of mergers and acquisitions (MA). The initial research will cover following: banks, financial and banking sectors of economy. 2 Aim The research aims to elaborate theoretical and methodological recommendations and system of practical ways to stimulate and increase number of MA within the domestic banking industry; leading to the increased concentration of capital within the Russian banking industry and its competitiveness based on the analysis of current conditions, specifics and progress trends of these processes in Russia, in contrast with the experience of developed countries. Don’t waste time! Our writers will create an original "Increasing The Competitiveness Of Russian Banking Industry" essay for you Create order 3 Chronology The research will look closer at the processes related to banking industry in Russia and the world in the period of 90s until nowadays. The dissertation will consider further ways of development of the Russian banking industry in context of the globalization. 4 Objectives This is a general description of the objectives of the research: To compare the conceptual methods used within the context of MA in Russian and global experience, legislation and scientific literature; theoretically analyse terms à ¢Ã¢â€š ¬Ã…“mergerà ¢Ã¢â€š ¬? and à ¢Ã¢â€š ¬Ã…“acquisitionà ¢Ã¢â€š ¬?, ground the classification connected with MA; To systematically analyse the causes why banks choose to merge and acquire, define the key players in the global market; expose the reasons typical for MA in Russia, its specifics, evaluate and forecast progress trends; To define general features and elements of MA for Russian banks, to prepare recommendation for each stage; To state and ground the development trends of future MA according to new economic and political issues; To critically analyse the current conditions of governmental policies and regulations aimed at stimulating the processes of MA of banks in Russia and develop recommendations in order to improve t he concentration and efficiency of banking capital; To classify the influence of foreign banks in Russia and ground the beginning of new developing stage of the banking industry, where issues of capital will be critically discussed; To produce a system of particular ways to stimulate and effectively use processes of MA within the banking industry. 5 Context 5.1 Introduction The project will be based on one research area, on processes of MA within the banking industry in Russia. Subsequently these processes and its relevance to the competitiveness of the banking institutions will be discussed. Moreover an industry profile including brief overview will be drawn. The information on the industry ought to explain the current situation and relevance of the processes. 5.2 Area of research One of the most problems the Russian banking industry is facing today is the capitalisation (Ashurkova, 2007). Operating within the global market banking institutions are unable to compete with major players effectively influenced by the processes of globalisation and high competition. Domestic banks are essential part of economic processes within the state, thus its condition and competitiveness are significant characteristics of the efficient economy (Gorelaja, 2008). In this context, the progress trends of banking industry acquire a special meaning not only in the case of the domestic economy but global market too. 5.3 Industry overview New economical and political issues, such as expansion of large Russian corporations to international markets, strengthened by the activity of foreign banks in Russia, the necessity to supply credits and investments directed at the steady growth of national economy and welfare, negotiation concerning joining the World Trade Organisation (WTO), increased risks and political tensions, etc, increased the importance of the domestic competiveness, especially within the banking industry (Gorelaja, 2008). In order to achieve success in the competitive rivalry within the domestic and global markets, where corporations will face competition of major foreign banks, it is necessary to significantly raise the capitalization and stability of the whole banking industry (Zoznobin, 2007). The most optimal ways to achieve it are MA, as the number of credit organisation organisations in Russia exceeds 1,200 (Uglovskaja, 2007). The process of consolidation within the banking industry should strengthe n existing institutions delivering financial gearing and diversification (Porter, 1985). However the negative side of these processes are linked with raising systemic risks (Brukov, 2004). Expansion of à ¢Ã¢â€š ¬Ã…“westà ¢Ã¢â€š ¬? banks to Russia has worsen the situation of developing economy and especially of the domestic banking industry and forced banks to search for new ways of development, market niches, and slowly moving away from the corporate clients (Ioncev, 2004). Under these conditions major financial institutions favour regional development and further expansion to low competitive markets. Most of the regions in Russian, except Moscow and St. Petersburg, are considerably underdeveloped (Kaurov, 2006). The importance of these processes for the modern Russian economy and especially for financial market should not be underestimated. It is recognised by the Russian government and confirmed by the increasing number of such processes (Baranova, 2005). Banking industr y has experienced two stages of development: from 1991 until the crisis in 1998, this is the initial forming stage of domestic banks, accumulation of capital and establishment of first financial groups; from 1999 until today is the post-crisis period of recovery, restructuring of the whole industry and formation of new financial groups (Gorelaja, 2008). 5.4 The relevance of the chosen topic MA in the financial sector of Russian economic were not studied in details and do not possess with a solid methodological foundation. However, today, in the context of diversification and intensification of production, banking industry is facing following objectives: to satisfy the increasing consumer needs, i.e. credits, investments and other banking services; to survive and successfully compete with foreign banks and its branches. On the other hand, it is necessary to secure the domestic market from the monopoly in the banking industry. In essence, the banking industry is facing a start of a new stage in its development, including further liberalization of financial flows within the countries and outside of its boundaries. Moreover it is necessary to remember that functioning of banking industry at this stage is also requiring the formation of new type of banks, stable and efficient in a time of financial crisis, as well as creation of holdings and banking groups and further attr action of investments. The processes of MA are developing very quickly in Russia and the whole world. Meanwhile the scarce efficiency of a large number of deals, in both developed and developing countries, illustrates the inability of corporations and banks to recognise and evaluate effectively all the advantages and disadvantages of concrete offers, risks related to it and its reasonability. Under these circumstances the investigation of MA in Russia in contrast with the world experience acquires special relevance. 6 Literature review 6.1 Introduction The objective of the literature review was targeted at the specifics of the processes of MA within the Russian banking industry. Main sources of information are Aston university library, Moscow Government University library, the online libraries and Google scholar. In order to evaluate the current conditions of banking industry and process of MA within that industry the literature provide a broad variety of theories, concepts and models. 6.2 Definitions and concepts Mergers and acquisitions (MA) are forms of corporate restructuring taking a large part in the corporate finance world. Every day, banks attract investment to arrange MA transactions, which aimed at bringing separate business entities together to form a larger one (Arzac, 2008). The key idea behind these processes is to create a shareholder value exciding the sum value of two companies (Gole and Hilger, 2008). In other words the main idea behind MA stating that two companies together are more valuable than two separate business entities. Although it should be understood that these two words are not synonymous, the meaning of terms merger and acquisition is slightly different. When one company takes over another, it is establishing itself as the new owner (Bruner et al., 2004). In this case the purchase is called an acquisition. In contrast, a merger happens when two firms, often of about the same size, come to the agreement to continue operating as a single new company seeking for benefits rather than remaining separately owned and operated. This action is accurately referred to as a merger of equals (Frankel, 2005). However, in practice, actual à ¢Ã¢â€š ¬Ã…“mergers of equalsà ¢Ã¢â€š ¬? happen very rarely (Gaughan, 2005). Moreover these processes possess with certain specifics which will be further discussed in the final project. The à ¢Ã¢â€š ¬Ã…“domesticà ¢Ã¢â€š ¬? (Russian) and à ¢Ã¢â€š ¬Ã…“foreignà ¢Ã¢â€š ¬? literature has studied this topic in-depth. However, literature does not provide with deep analysis of MA, considering its correlation with the overall economic growth and growth of the banking industry; evaluating those in combination with changes in the social and economical development of Russia. It is necessary not only to examine the current conditions, but progress trends too, in order to contrast those with world trends and draw up a proper conclusion including future development strategies and policies for banking industry a nd overall economy. In the Russian-language literature such topic, considering the specific consolidation of capital within Russia, occurs rarely. However, other literature possess with deeper understanding and analysis of MA, which has no theoretical and practical experience under circumstances similar to those in Russia. 6.3 Foundation Theoretical and methodological foundation for the project is the work of foreign and Russian scientist-economists and financiers in the credit and investment activities, economical policies of Russia: Arzac, Ashkenas, Ashurkova, Baranova, Brukov, Bruner, Frankel, Gole, Gorelaja, Harding, Ioncev, Kaurov, Kulik, Orlova, Potochnig, Reed-Lajoux, Rykova, Seredin, Uglovskaja, Weston, Zoznobin, etc. The work of experts in MA: Copeland, Gaughan, etc. Other sources of secondary data, i.e. analytical and statistical information, are the information provided by the websites of Bank of Russia, Ministry of Economic Development and Trade, Federal State Statistics Service, World Bank, Federal Financial Markets Service, journal à ¢Ã¢â€š ¬Ã…“The Bankerà ¢Ã¢â€š ¬?, à ¢Ã¢â€š ¬Ã…“Financial Timesà ¢Ã¢â€š ¬?, data and information of consulting agencies Bloomberg, Interfax, Reuters, and Thomson Financial. The work will also use the information provided by the Russian banks, i.e. annual reports ; and analytical materials and reviews provided by international consulting organisations: PriceWaterhouseCoopers, KPMG, etc. Legal base for the research are legislative acts of Russian Federation of the banking industry, investments, equity market and antimonopoly law. 7 Methodology 7.1 Introduction In order to develop an approach based on the experience of Russian banks and its major rivals the theory and practise will be put together through the multi-method approach of: case study, exemplified by many researchers (e.g. Kaplan and Duchon, 1988), and field work à ¢Ã¢â€š ¬Ã¢â‚¬Å" face to face interviews with senior managers of the major banks in the UK and Russia. The multi-method approach is likely to help gaining the comprehensive knowledge together rather than use of only one method (Robson, 2002). The whole research will last for maximum eight months, starting at January 2010. 7.2 Desk research Due to the specific nature of the chosen topic use of secondary data will be preferable. According to Gummerson (2000) secondary data is the pre-existing data or information gathered by the third parties (e.g. research study, survey, interview, etc) for a certain purpose not directly linked to the purpose of the initial research. Yin (2003, p.13) stated that a case study is suitable when à ¢Ã¢â€š ¬Ã…“a contemporary phenomenon within its real-life contextà ¢Ã¢â€š ¬? is analysed. Secondary data can be easily obtained and used in the research at the current moment (Saunders et al., 2007). Based on Hair et al. (2007) main advantages of the secondary data are resource implications, much easier to gather than primary data; low cost, as already collected; longitudinal study may be possible; quality and permanence of data (e.g. government surveys, official statistic). However, main challenges of the secondary data are linked to the fact that information was gathered for the purpose of another research (Gummerson, 2000). Thus, it is most likely to be out of date, not full, not directly linked to the current research and unreliable. It is appropriate to start a research from looking at the secondary data and when it is exhausted or its usefulness is decreasing considerably, this is a moment to start gathering primary data (Hair et al., 2007). Primary data Secondary data Purpose The purpose of the current research Not gathered for purposes of the current research Use Difficult to analyse Fairly easy and quick Cost High Relatively low Time-consumption Long Short Based on: Gummerson (2000) and Hair et al. (2007) 7.3 Semi-structure interviews Field work Deep understanding cannot be achieved through use of secondary data only. Thus use of a primary data is an advantage to gather unique knowledge and answers to the questions. Semi-structured in-depth face to face interview on one-to-one basis as one of the methods allowing gathering qualitative data is a significant part of a research process (Saunders et al., 2007). Journals, books and academic publications allow observing of basic information where interview is the next step delivering deep understanding of the topic. Semi-structured interview à ¢Ã¢â€š ¬Ã…“are particularly useful if you already have a clear theoretical appreciation of your topicà ¢Ã¢â€š ¬? (Lee and Lings, 2008, p. 218). In this particular case interview will allow to draw up a conclusion and further recommendations for Russian banking industry based on the world experience (in this case experience of UK banking industry). Main advantages of the interviews are: considered to be helpful to obtain detailed inf ormation about personal opinion, experience and perception; possess with high response rate; useful in gathering specific information as open questions can be asked, moreover vague answers can be fulfilled (Jesson, 2006). However, there are some disadvantages too: interviews are time consuming (e.g. interviewing, analysing, reporting, etc); costly and sometimes difficult to analyse (Hair et al., 2007). The research will include up to ten interviews of senior managers within the banking industry in the UK and Russia, 30 minutes long each (in total 600 minutes, 2030). The time limit for the interview will not exceed two months. Each interview will be analysed on a thematic basis using the methodology proposed by Easterby-Smith et al. (1991). Many people are not used to giving interview, and probably would not like the fact of losing their free time (Gill, Johnson, 2002). Interviews will include group of people of senior working within the banking industry directly or indirectly related to the processes of MA. These are the people possessing with the significant information research is interested in. Interview will be taken in the lunch time in the informal environment, which is an advantage (Stjernberg, 2006). Interviews will start from general questions further moving to specifics. Successful interview should start from neutral questions such as question related to the industry as a whole (Lee and Lings, 2008). This helps to enjoy the favour of the interviewee in the discussion. Important questions are à ¢Ã¢â€š ¬Ã…“how long you are working for the businessà ¢Ã¢â€š ¬?, à ¢Ã¢â€š ¬Ã…“what are the main responsibilitiesà ¢Ã¢â€š ¬?, à ¢Ã¢â€š ¬Ã…“what is the experience the person possesses withà ¢Ã¢â€š ¬?, etc (Saunders et al., 2007). 8 Ethics According to the research ethics guide of Aston Business School (Evans, 2004) the research has to to fulfil following principles: Beneficence Non-malfeasance Informed consent Confidentiality In order to ensure that guidelines are strictly followed interviewees will be fully informed of the issues concerning the aim and purpose of the initial research before the prior interview. Moreover such issues as anonymity, confidentiality, potential benefits and risks related to the interview and everything concerning the collected data, information and records will be emphasised by the researcher. The participation in the interview should be voluntary. Furthermore confidentiality should be documented for the benefit of the interviewee. 9 Novelty The novelty of the dissertational research and its topic is following: Based on the theoretical knowledge and analysis of economic literature it is possible to define terms: MA, which will allow adequately to evaluate these processes with particular attention to its dependence on the corporate control; To create a scientific classification of reasons leading to MA in banking industry, and analyse in details its role in the context of the global financial market; Based on the results of comparative analysis of Russian and global markets of MA reveal the specific causes of these processes dominated in Russia and major factors influencing the progress trends for this market in Russia. Retrospectively classify the Russian market of MA and define its historical and future trends; Based on the theoretical studies and world experience (McKinsey Company organisation) in the market of MA critically evaluate these process and create recommendation for the banking industry with p articular references to the specific nature of domestic banks; To develop a system of measures stimulating future development of required processes within Russian banking industry, aimed at gaining a competitive advantage of the whole banking industry and concentration of capital; To define and critically evaluate the presence and functioning of foreign capital in the banking industry; analyse those in the context of future development, progress trends of MA. 10 Practical meaning and approval The practical meaning of this work will reveal the results leading to a positive outcome. On micro level, banks face many challenges within the banking industry, thus they have to develop and plan MA more carefully taking in account the specifics of Russian market, its economic and political issues, and whereas using the experience of à ¢Ã¢â€š ¬Ã…“westà ¢Ã¢â€š ¬? countries can be advantageous. Perhaps this will increase the effectiveness and bring down the costs. Organisations should consider better use of synergic effect and recommendations, keeping in mind the difference of each single process. This will likely to ease the integration of consolidating structures. On macro level, there is a necessity to change the legislative and regulatory rights, and policies in the whole banking industry, methods of regulations and supervision, as well as particular regulations in the governmental developing policies of the banking industry. This will accelerate the development of the ba nking industry and its competitiveness in a global market. The Bank of Russia is facing the necessity to develop a complex policies dedicated to the problem of future development of MA based on the high differentiation of services provided by commercial organisations, and recommend these organisations terms and conditions only of those processes leading to economical and social efficiency. 11 Structure The structure of the dissertation is based on the aims and tasks of the dissertational research and will include three chapters, conclusion, bibliography and appendices. The work should not exceed the length of 15,000 words. Introduction Chapter I. Theoretical foundation of mergers and acquisition within the banking industry 1.1. Terms à ¢Ã¢â€š ¬Ã…“mergerà ¢Ã¢â€š ¬? andà ¢Ã¢â€š ¬Ã…“acquisitionà ¢Ã¢â€š ¬? 1.2. Why do organisations tend to merger and acquire? 1.3. Reasons and causes in Russia and its specifics 1.4. Systemic analysis of mergers and acquisitions Chapter II The evaluation and comparative analysis of experience and progress trends f mergers and acquisitions within the banking industry in Russia and the world 2.1. Practice and trends of mergers and acquisitions in Europe and USA 2.2. Evaluation of experience and progress trends as an optimal way to attract investments within the banking industry in Russia, and its specifics according to the world experience Chapter III. Development perspectives of mergers and acquisitions, consolidation of banks in Russia and its influence over the capital 3.1. Mergers and acquisitions within the Russian banking industry as a significant factor in competitiveness and attraction of financial flows 3.2. Governmental policies and regulation of mergers and acquisition in Russia and the potential use world experience 3.3. The influence of foreign investments over future development of Russian banking industry 3.4. The place of mergers and acquisitions in the future development policies Conclusion Bibliography Appendices 12 Task list Task Difficulties Solutions Desk research Obtain literature on mergers and acquisition within the banking industry, banking industry conditions, progress trends Literature is not available through university library, limited due to specifics of the topic Textbooks, Journals, Newspapers, Business Magazines, Online sources, reserve of required items online, order books via internet-library loan, use of non-academic literature if appropriate Review literature, identify relevant and reliable sources Possibly large number of sources, analysis can be limited by time Efficient time management, scheduling, assistance of tutor and critical analysis Semi-structured face to face interviews Identify the interviewees for semi-structured interview, sample size 4-6 candidates May not identify the correct people Use of personal contacts to identify interviewees Conduct three pilot surveys to test interview agenda Responses may not be relevant Amend interview agenda Contact most appropriate candidates to arrange interview Candidate refusals to participate Reserve candidates Design interview agenda Ensuring appropriate focus on relevant questions Prepare interview thoroughly, send emails providing information about the interview, question, topic, etc, provide interview guide Conduct survey Insufficient, irrelevant or obsolete gathered information Vary question according to the interview flow, open vs. closed, neutral vs. specific Transcribe interview Time limitation, focus on relevant and reliable information Use of appropriate guidelines (Secondary data) Code and analyse the transcripts Information overload Use of appropriate guidelines (Secondary data) Report related Collate report based on objectives Write up dissertation, draw conclusion and recommendations Use of appropriate guidelines (Secondary data) Presentation and thank you letters to senior interviewees Week No. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Task Literature search Literature review Idetify interviwees Pilot test interview Contact interview candidates Design interview agenda Conduct survey Transcribe interviews Code and analyse interviews Collate report, conclusion Write up report Presentation/Thank you 13 Time Plan Gantt Chart 14 Literature Search Framework Strategy Key Words Theory, concepts, mergers and acquisitions, banking industry, Russia, Bank of Russia, World Bank, experience, consulting, reports, analitical materials, review Online database Host/System Used Data Searched Key Words Fields Searched Years Searched Hits Relevant Proquest 24.12.09 Merger, acquisitions Bank, Russia, mergers acquisitions Russia banks Mergers acquisitions banking industry MA, strategy, development, future All fields All fields All fields All fields All fields 1990-2009 1990-2009 1990-2009 1990-2009 1990-2009 12 2 29 16 19 2 0 5 3 4 Aston E-Library Merger, acquisitions Bank, Russia, mergers acquisitions Russia banks Mergers acquisitions, banking industry, theory MA, strategy, development, future All fields All fields All fields All fields All fields 1990-2009 1990-2009 1990-2009 1990-2009 1990-2009 142 124 110 78 87 12 15 9 7 6 MSU E-Library Merger, acquisitions Bank, Russia, mergers acquisitions Russia banks Mergers acquisitions, banking industry, theory MA, strategy, development, future All fields All fields All fields All fields A ll fields 1990-2009 1990-2009 1990-2009 1990-2009 1990-2009 178 154 113 98 129 21 23 12 13 37 Web sites www.bankir.ru www.bo.bdc.ru Journals Government Other

Factors Affecting The Development Of Anxiety Disorders

Research Outcome: ‘To what extent do familial factors contribute to the development of anxiety disorders?’ 1.0 Introduction Anxiety disorders are forms of psychiatric illnesses that result from consistent and excessive anxiety, marked by an individual’s emotional and/or physical anguish. Familial factors can heavily contribute to the development of an individual’s anxiety disorder/s, when their genealogy possess a history of traumatic experiences such as childhood abuse. Studies of behavioural epigenetics have shown that when ancestors experience trauma, epigenetic changes capable of causing anxiety disorders, are passed on to their descendants. Additionally, research shows that when individuals experience childhood abuse, they acquire serotonin deficiency and epigenetic changes also capable of causing anxiety disorder/s. 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Effects of Visual Merchandising in Woolworths †Free Samples

Question: Discuss about the Effects of Visual Merchandising in Woolworths. Answer: Effects of Visual Merchandising in Woolworths Limited Visual merchandising is a technology used by many business people to attract customers to buy their products or to use their services by just creating a good impression to them through that technology. This method of merchandising has been adopted by many companies so as to create an impression to many customers and hence increase profits. The visual merchandising has a direct impact on the sales of goods and hence retailers who use this method have a high chance of selling their goods more than those who use other methods (Simondi et al. 2014). This method dates back in 1900 when a company called marshall shifted its business from wholesale to retail (Riecken et al. 2016). After the shift from wholesale to retail, this company saw it necessary to display their products in a manner which could attract many customers. They put the display on the windows or on the wall outside the business sites to attract customers. From that time, many businesses attracted the method and hence started using it to promote their businesses. Due to the development of this method of creating awareness to customers, this study will focus on looking for the effects of the method either negative or positive. The study will be done at Woolworths limited company. It will be based on customers so as to get the best results and make good recommendations which are reliable. Project objectives The main objective of this study is to evaluate the effects of visual merchandising for products. The following are the other objectives of the study. To evaluate the attitude of customers towards merchandising of products To discuss the rate of growth of retails which use visual merchandising To evaluate the role of visual merchandising in retails To estimate customers who basically buy products due to merchandising Research questions What is the effect of visual merchandising for products? What is the attitude of customers towards merchandising of products? What is the rate of growth of retails which use visual merchandising for their products? What is the role of visual merchandising in retails? What is the percentage of customers who basically buy products due to visual merchandising? Project scope This study will be carried out at Woolworths limited. This company has been chosen because it is one of the leading retails in Australia and has also extended to New Zealand. Since this company is a leading company and covers greater geographical area in Australia, it will be the best company to base the study on since during data collection the researcher will encounter different customers from different parts of the world. The researcher will also be able to interact with the employees of the company hence know how they carry out visual merchandising so as to attract many customers. This will lay a foundation for further research and reliable recommendations. Literature review Visual merchandising refers to anything which can be seen by the customers either inside a store or outside the store and which creates an impression about the products which are in the store (Valiulis et al. 2015). The display affects the attitude of the customer either positively or negatively and it is the one which makes the customer make a decision whether to buy a given product or not to buy it. One consumer can be affected negatively by a certain display while another can be affected positively by the same display hence it depends on the perspective of the customer towards the display. Factors to consider while carrying out visual merchandising There are many factors which should be considered while carrying out visual merchandising. The following discussion will summarize some of the factors to consider. Colors Colors are one of the main factors which should consider while carrying out visual merchandising. Different people have a different feeling towards different colors. One person can see red color as pleasant hence making him or her purchase a product which is advertised in that color. Another person can decline to buy the same product due to the color used to advertise it. There is a need for the retailers to carry out a research so as to know which colors attract customers more hence use them to carry out the display of the products so as to attract those many customers. The color also depends on the type of product which is being displayed and also its purpose and the targeted consumers. Simplicity The display should be kept simple and clear for the customers to see well. Dim displays make customers have negative impressions about the product (Kurmar and Mishra 2016). The retailers should make sure that the visual display is not dim and does not have pictures which create a bad impression about the product. Grouping The products to be displayed should be grouped in an organized manner. The retailers should not display items which are not related as they will not create a good impression to the consumers. The products should be shown and not talked about (Banol et al. 2016). Items which are similar should be put in the same place so as to show how they will look like if a customer purchases them. Be specific During the display, one should be specific and direct to the product and its benefits to the consumers (Shagal et al. 21016). The display should be designed in a way which shows both the benefit and the cost associated with the product. This helps in creating an impression to the customers since they are able to directly know how they will benefit from the product. Tag price The price of the product should be tagged on the product to make sure all the customers are able to see it. This will make them feel free to ask why it is sold at that price unlike when the customers need to be told the price. Price displayed is more appealing than the price which customers have to be told (Zentes et al. 2017). Challenges of visual merchandising The main challenge which is faced in visual merchandising is the main components of implementation. The following discussion will highlight some of those components and how they pose a challenge to the retailers. Attention-grabbing displays are one of the components which pose a challenge to the retailers during visual merchandising. To come up with displays which attract the attention of the customers is not an easy task. This is because the display can be appealing to some customers and at the same time it can create a bad impression to another customer. This makes the decision of how to make the displays a great challenge. Costs associated with the visual merchandising are another challenge for the process. The retailers can pay a lot of money for specialized people to come up with a good display which will attract people only to end up getting a display which does not impress the customers. Proper research should be done to make sure that the colors used for the display are appealing to the customers. Priorities given to visual merchandising is also another challenge for retailers. They have many issues to deal with like how to maintain profits in their industries and how they can handle employees to get the best out of them. In that process, they end up forgetting visual merchandising which is very important in attracting customers hence the retails may not have significant growth. Retailers also dont value the impact of visual merchandising hence the customers may not be able to know the products which are in the market. This may lead to low sales which will contribute to low profits. Research gaps There are many research gaps related to visual merchandising. The following discussion will highlight some of those gaps. The discussion will lay a base for areas which need further research. Time allocation Many scholars have suggested different times which should be spent on carrying out visual Merchandising. However, they dont give out the reasons for the suggested time and hence there is need to carry out an extensive research which will outline the main reasons for different timelines. Colors Displays of visual merchandising create different impacts to different people. Researchers have commented that some colors may lead to customers failing to buy a certain product. However, there are no reasons why those colors create either positive impacts to certain people and create negative impacts to other people. Why do people love colors and they are just paints also remains unknown. The reasons why products which are associated with certain religion also remain un researched. Effects of visual merchandising Extensive research has not also been done regarding the effects of visual merchandising. The already existing research has only be based on the impressions which visual merchandising has towards customers but not the level of impacts either positive or negative towards the consumers. Proper research should be done to know the level and this research is based on all those gaps so as to give out recommendations which will make it more valid. Research design and methodology Research methodology is a well-defined procedure which is scientific based and uses statistical methods to carry out an investigation about a problem or a claim (Wiek and Lang 2016). The research design is a conceptual frame work within a research is conducted. It gives a blueprint for data collection and analysis. This section will explain how the study will be carried out. Type of research This research will be a quantitative research. Quantitative research is an empirical process of investigation which is based on numerical data and is carried out using statistical methods (Mackey and Gass 2015). There are twelve parts of quantitative research. The following section will discuss the twelve sections. The first step of quantitative research is the formulation of the research problem. In this step, the researcher comes up with the problem which he or she wants to do research on. The problem should be researchable and should be able for one to collect empirical data (Mc Millan and Schumarcher 2014). The second step of this study is a formulation of the objectives of the study. The researcher comes up with objectives which will guide the research and should be met at the end of the study. Those objectives should be in line with the literature review gaps and they also rhyme with the research questions and the topic under study (Neuman and Robson 2014). The next step is the scope of the project whereby the researcher gives out the specific area where the study will be carried on and give justification why he chose the specified area and not any other place. The next step is literature review where the researcher reviews the already existing literature on the topic under study. This gives the researcher a solid background about the topic and also makes him or her be able to know the research gaps in the topic under study (Claydon 2015). The next step is research methodology where the researcher comes up with the formula which will be used to carry out the study. The research methodology should be scientific and should use statistical and mathematical methods. The next step is whereby the researcher explains the kind of the research he or she will carry out. There are two types of study either quantitative or qualitative. The researcher explains the type of research and why he or she will carry out that type of research. The next step is the method of data collection where the researcher explains the kind of data he or she will collect based on the type of the study (Yegidis et al. 2017). There follows the step of data analysis. In this step the researcher transforms the collected data into information. The next step is the step of communicating the findings of the research whereby the researcher gives out the details of the research findings after data analysis. The last step, is the step of recommendation whereby the researcher makes recommendations based on the analyzed data. Target population This research will be carried on Woolworths limited. The researcher will seek permission from the administration to carry out the study. The target population will be the customers who will be coming to the retail. The researcher will give a designed questionnaire for them to fill. Sampling and sample size The researcher will not use any sampling method to select the sample size of the study. This is because customers do not come at the retail all at once hence it will be hard to use sampling procedures. However, the researcher will collect data from 300 consumers who will be coming to the retail for a period of one week. The participants will be given a questionnaire to fill and once the sample size is reached the researcher will stop the process of data collection. Instrumentation Questionnaires will be the main tool for data collection. A questionnaire is well-structured document which contains questions about a given topic under study and whose main work is to collect data for that specified topic (Barnham 2015). There are many advantages associated with using questioners for data collection. One of the advantages is that it saves time as many participants can fill it at once hence saving time. Also, questioners have specific questions which are directly related to the topic under study hence the data collected is reliable and not biased. Due to these advantages, the researcher has decided to use questionnaires as the main tool for data collection. Research limitations This research has some limitations associated with it. One of the main limitations of this study that the customers may not be willing to participate hence some important data may be left out. Also, the time to carry out the study very limited hence the researcher may not have humble time to comprehensively carry out the study. The study will only access impacts visual merchandising and will not discuss how different retails have solved some challenges concerning the visual merchandising hence it is limited in scope. Time schedule This study will be carried out for a period of two months. the following table will summarize the time schedule of the study. First month first week 1. Evaluation of the theoretical part of the study 2. Understanding the theory related to the study second week 1. Designing the questioners Third week 1. Data collection fourth week 1. Evaluating the data collected second month first week 1. Data analysis second week 1. Data analysis third week 1. Communication of the findings fourth week 1. Recommendations Conclusion This research will be focus on the impacts of visual merchandising. The discussion of the attitudes of customers based on the level of visual merchandising will also be discussed. This will lay a base for other researchers to know how they should carry out the process of visual merchandising. Also, the growth rate of retails which use visual merchandising will be discussed to evaluate if they have a high growth rate than those who dont use or it is vice versa. This will give other retails to make a decision on whether to use the method or not to use. The role of visual merchandising will also be discussed so as to make sure all the retails have a solid background about the method. This discussion will create insights on the and hence lead good decisions of those people who use this method as a way of attracting customers. It will also give out recommendations of what should be done to improve the level of visual merchandising. 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