Topic: ‘A comparative study between SCB and HSBC about its business strategy towards Small and medium entprise in
My hypothesis would be “whether profitable company as shown on financial statement would be more attractive borrower”
and I will test the followings: Mgt background, cashflow as shown on bank statement, product features, market, price-sensitivity, etc”
Your (ii) will appear in the chapter of “Data Finding”, which is used to support your chapter of “Hypothesis”, potentially your (i) below. But in your (i), there are 4 hypotheses. So you’ll need 3 more (ii) to support your (i). For a 6,000-word dissertation, 1-2 hypothesis is already enough. I don’t mind you have 4.
Please advise:-
(i) Delinquency would be quantified by days whereas strength of financial statement would be quantified by gross and net margin (%), current ratio and sales volume
(ii) I will compare the pricing to the customers with high sales volume against those with low sales volume, bar chart would be produced based on each 1million T/O against interest rate (Prime rate) on each 0.25%
Your (i) below can be a hypothesis, though still too vague (please define “strength of financial statement”, each factor should be one hypothesis), (ii) is unclear (what is pricing relationship? how to quantify or measure?) and (iii) should be in recommendation chapter.
Your cashflow is still too vague. Are you referring to Quick Ratio, Current Ratio, Net Cash Flow, or…?
Good borrower would be interpreted as low delinquency in terms of days and willing to offer higher yield in terms of interest income
– Background would be quantified by years of management experience in engaged industry
– Cashflow is the money flow shown on the bank statement; Since a company can have insufficient cashflow even its financial statement showing that it is profitable, cash flow seems to be a more meaningful indicator to cater early symptom of financial crisis happening in a company
– Product feature would be categorized by product types, whether it is garment, electronic, textile (raw material) or food, etc
– Market can be determined by geography, income, etc
– Price-sensitivity would be the price range that the customers accept
Since the customers without a beautiful financial statement are more likely to have difficulty to ask for financing, they are less price-sensitive and vice versa.
In the model, I am thinking to find a short list of clients and analyze their financial status and their pricing package in order to find out (i) relationship in between Delinquency and strength of financial statement (ii) pricing relationship among the customers with different pricing (iii) ho w the two banks’ view in this regard
Credit:ivythesis.typepad.com
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