3.1 Philosophy
A research philosophy is a belief about the way in which data about a phenomenon should be gathered, analyzed and used. It facilitates as a roadmap to conduct the business research.
Research philosophy provides an insight for the motive in order to conduct the research. It also includes data collection process and interpretation processes. Research philosophy is of two types – positivism and phenomenology.
Positivists believe that reality is stable and can be observed and described from an objective viewpoint (Levin, 1988), i.e. without interfering with the phenomena being studied. They contend that phenomena should be isolated and that observations should be repeatable. Positivism acts as a guide for conducting the business research. It adheres to the view that only “factual” knowledge gained through observation (the senses), including measurement, is trustworthy. In positivism studies the role of the researcher is limited to data collection and interpretation through objective approach and full faith will be bestowed on the collected data and statistical results (Easterby-Smith, et al., 2008).

In case of phenomenology, it is generally observed that respondents may provide their irrational decision-making and cognitive biases while providing data (Bryman, 2012). Under the phenomenological philosophy, help from the social scientists is often required (Cassell and Symon, 2012).
The research will follow a positivism philosophy as the research interpretation would only depend on only factual data available on annual reports.
3.2 Method
Research method is a systematic plan for conducting a research focusing on a decision to use either qualitative, quantitative or a mix of both for the research.
Qualitative research is exploratory, and it is used when it is not known what to expect, how to define a problem or how to develop an approach to the problem. Whereas quantitative research is expected to conclude the purpose as it quantifies a problem. Hence, quantitative method will be used for conducting the research.
3.3 Approach
Two of the most used research methods are: inductive and deductive. Deductive reasoning works from the more general to the more specific. Also known as “top-down” approach.
Inductive reasoning works the other way round, moving from specific observations to broader generalizations and theories where researcher begin with specific observations and measures, begin to detect patterns and regularities, formulate some tentative hypotheses that can be explored. Inductive reasoning is more open-ended and exploratory, whereas, deductive reasoning is narrower in nature and concerned with testing or confirming hypothesis. As hypothesis testing is being conducted in this research with all numeric analysis, therefore, deductive reasoning approach shall be used in this research.

3.4 Data Collection
Data can be collected in two ways, Primary and Secondary.
For primary data, questionnaire, face to face interview, over the phone interview, mailing, focus group discussion is used. For secondary data, information from various sources and previous conducted research relevant to the topic is used.
In this research, data from annual reports will be used which would therefore be a secondary data collection method.

3.5 Sampling
The purpose of sampling is to estimate an unknown characteristic of a population. Sample is subset of larger population. Sample will be selected from all the enlisted organizations in Dhaka Stock Exchange (DSE). Researches done earlier will be used as a guide to select organizations from various sectors. Stratified sampling will be used in the research and data of organizations from different sectors will be analyzed to conduct the research.
In total, 99 enlisted organizations are selected for data collection among which are: 29 commercial banks, 20 non-banking financial institutions, 22 chemical & pharmaceutical organizations and 28 textile organizations.

Chapter 4: Research Methodology
4.1 Idea
Research is conducted to investigate and evaluate the effect of ownership structure on financial performance of an organization.
4.2 Questions
1. Does change in directorial ownership affect financial performance of an organization?
2. Does government ownership affects organization’s financial performance?
3. Does institutional ownership affects organization’s financial performance?
4. Does foreign ownership have any effect on financial performance?
5. Does public ownership affect organization’s financial performance?

4.3 Objective
To understand how directorial ownership affects financial performance of an organization.
To determine relationship between institutional finance to the organization with the financial performance of the organization.
To understand how government ownership affects organization’s financial performance.
To estimate effect of financing from foreign owners on financial performance of an organization.
To determine the relationship between finance obtained from publicly issued shares and organization’s financial performance.

4.4 Hypothesis
Hypothesis linked with directorial ownership affecting financial performance of an organization.
H0: Directorial ownership has no significant impact on financial performance
Ha: Directorial ownership has significant impact on financial performance

Hypothesis linked with government ownership affecting organization’s financial performance.
H0: Government ownership has no significant effect on financial performance
-Ha: Government ownership has significant effect on financial performance

Hypothesis linked with institutional ownership affecting organization’s financial performance.
H0: Institutional ownership does not affect financial performance
Ha: Institutional ownership affects financial performance

Hypothesis linked with finance from foreign owners on financial performance
H0: Foreign ownership has no significant relationship with financial performance
Ha: Foreign ownership has significant relationship with financial performance

Hypothesis linked with finance obtained from publicly issued shares and organization’s financial performance
H0: Public ownership does not affect financial performance
Ha: Public ownership affects financial performance

4.5 Theoretical framework
Corporate governance has become one of the most important aspects affecting financial performance of an organization. Ownership structure is one of the main dimensions of corporate governance and also influences it as conflicts of interest arises with change in structure of ownership which affects financial performance of the organization negatively.

Corporate governance is defined by Shleifer and Vishny (1997) in ways which entities/individuals financing the corporations are assured to get a return on their investment. On the contrary, Tirole (2001) states that the definition of traditional shareholder approach for measuring corporate governance is inadequate. In Tirole’s view, all stakeholders must be considered in designing of a corporate governance system who are affected by the firm’s decision rather than just the financiers. Shleifer and Vishny’s (1997) perspective is used in the research and also enhanced with definition from Eckbo (2006) who argued that an organization’s corporate governance incorporates all internal and external constraints which results in affecting financial performance of the organization.

3.1 Philosophy
A research philosophy is a belief about the way in which data about a phenomenon should be gathered, analyzed and used. It facilitates as a roadmap to conduct the business research.
Research philosophy provides an insight for the motive in order to conduct the research. It also includes data collection process and interpretation processes. Research philosophy is of two types – positivism and phenomenology.
Positivists believe that reality is stable and can be observed and described from an objective viewpoint (Levin, 1988), i.e. without interfering with the phenomena being studied. They contend that phenomena should be isolated and that observations should be repeatable. Positivism acts as a guide for conducting the business research. It adheres to the view that only “factual” knowledge gained through observation (the senses), including measurement, is trustworthy. In positivism studies the role of the researcher is limited to data collection and interpretation through objective approach and full faith will be bestowed on the collected data and statistical results (Easterby-Smith, et al., 2008).

In case of phenomenology, it is generally observed that respondents may provide their irrational decision-making and cognitive biases while providing data (Bryman, 2012). Under the phenomenological philosophy, help from the social scientists is often required (Cassell and Symon, 2012).
The research will follow a positivism philosophy as the research interpretation would only depend on only factual data available on annual reports.
3.2 Method
Research method is a systematic plan for conducting a research focusing on a decision to use either qualitative, quantitative or a mix of both for the research.
Qualitative research is exploratory, and it is used when it is not known what to expect, how to define a problem or how to develop an approach to the problem. Whereas quantitative research is expected to conclude the purpose as it quantifies a problem. Hence, quantitative method will be used for conducting the research.
3.3 Approach
Two of the most used research methods are: inductive and deductive. Deductive reasoning works from the more general to the more specific. Also known as “top-down” approach.
Inductive reasoning works the other way round, moving from specific observations to broader generalizations and theories where researcher begin with specific observations and measures, begin to detect patterns and regularities, formulate some tentative hypotheses that can be explored. Inductive reasoning is more open-ended and exploratory, whereas, deductive reasoning is narrower in nature and concerned with testing or confirming hypothesis. As hypothesis testing is being conducted in this research with all numeric analysis, therefore, deductive reasoning approach shall be used in this research.

3.4 Data Collection
Data can be collected in two ways, Primary and Secondary.
For primary data, questionnaire, face to face interview, over the phone interview, mailing, focus group discussion is used. For secondary data, information from various sources and previous conducted research relevant to the topic is used.
In this research, data from annual reports will be used which would therefore be a secondary data collection method.

3.5 Sampling
The purpose of sampling is to estimate an unknown characteristic of a population. Sample is subset of larger population. Sample will be selected from all the enlisted organizations in Dhaka Stock Exchange (DSE). Researches done earlier will be used as a guide to select organizations from various sectors. Stratified sampling will be used in the research and data of organizations from different sectors will be analyzed to conduct the research.
In total, 99 enlisted organizations are selected for data collection among which are: 29 commercial banks, 20 non-banking financial institutions, 22 chemical & pharmaceutical organizations and 28 textile organizations.

Chapter 4: Research Methodology
4.1 Idea
Research is conducted to investigate and evaluate the effect of ownership structure on financial performance of an organization.
4.2 Questions
1. Does change in directorial ownership affect financial performance of an organization?
2. Does government ownership affects organization’s financial performance?
3. Does institutional ownership affects organization’s financial performance?
4. Does foreign ownership have any effect on financial performance?
5. Does public ownership affect organization’s financial performance?

4.3 Objective
To understand how directorial ownership affects financial performance of an organization.
To determine relationship between institutional finance to the organization with the financial performance of the organization.
To understand how government ownership affects organization’s financial performance.
To estimate effect of financing from foreign owners on financial performance of an organization.
To determine the relationship between finance obtained from publicly issued shares and organization’s financial performance.

4.4 Hypothesis
Hypothesis linked with directorial ownership affecting financial performance of an organization.
H0: Directorial ownership has no significant impact on financial performance
Ha: Directorial ownership has significant impact on financial performance

Hypothesis linked with government ownership affecting organization’s financial performance.
H0: Government ownership has no significant effect on financial performance
-Ha: Government ownership has significant effect on financial performance

Hypothesis linked with institutional ownership affecting organization’s financial performance.
H0: Institutional ownership does not affect financial performance
Ha: Institutional ownership affects financial performance

Hypothesis linked with finance from foreign owners on financial performance
H0: Foreign ownership has no significant relationship with financial performance
Ha: Foreign ownership has significant relationship with financial performance

Hypothesis linked with finance obtained from publicly issued shares and organization’s financial performance
H0: Public ownership does not affect financial performance
Ha: Public ownership affects financial performance

4.5 Theoretical framework
Corporate governance has become one of the most important aspects affecting financial performance of an organization. Ownership structure is one of the main dimensions of corporate governance and also influences it as conflicts of interest arises with change in structure of ownership which affects financial performance of the organization negatively.

Corporate governance is defined by Shleifer and Vishny (1997) in ways which entities/individuals financing the corporations are assured to get a return on their investment. On the contrary, Tirole (2001) states that the definition of traditional shareholder approach for measuring corporate governance is inadequate. In Tirole’s view, all stakeholders must be considered in designing of a corporate governance system who are affected by the firm’s decision rather than just the financiers. Shleifer and Vishny’s (1997) perspective is used in the research and also enhanced with definition from Eckbo (2006) who argued that an organization’s corporate governance incorporates all internal and external constraints which results in affecting financial performance of the organization.

3. Experimentation and Innovation
Starbucks is a disciplined innovator and good management of the company in its innovation timeline is one of the primary reasons behind the Company’s success in generating consistently high levels of same store sales. The Company’s ability to roll out new initiatives and products relatively quickly is a considerable competitive strength.
4. Command of Premium Brand
The customers are willing to pay higher prices for Starbucks’ coffee as they are not only buying a beverage, but also making a social statement at the same time (Hayes, 1999). They also are buying an experience, a lifestyle and an attitude for a good living life. Whilst these intangibles can be extremely difficult to measure, Starbuck’s customers are making the job easier by swarming in their thousands.

5. Financial Resources
Starbucks is the world’s number one specialty coffee retailer across the globe and as such it has a greater financial reach than practically all of it of market opportunities, investments and expansion activities that are not available to smaller firms with a reduced capital. Starbucks also use joint-venture, wholly-owned, and foreign direct investment instead of licensing and franchising to gain their profits for better financial of the company.

3. Experimentation and Innovation
Starbucks is a disciplined innovator and good management of the company in its innovation timeline is one of the primary reasons behind the Company’s success in generating consistently high levels of same store sales. The Company’s ability to roll out new initiatives and products relatively quickly is a considerable competitive strength.
4. Command of Premium Brand
The customers are willing to pay higher prices for Starbucks’ coffee as they are not only buying a beverage, but also making a social statement at the same time (Hayes, 1999). They also are buying an experience, a lifestyle and an attitude for a good living life. Whilst these intangibles can be extremely difficult to measure, Starbuck’s customers are making the job easier by swarming in their thousands.

5. Financial Resources
Starbucks is the world’s number one specialty coffee retailer across the globe and as such it has a greater financial reach than practically all of it of market opportunities, investments and expansion activities that are not available to smaller firms with a reduced capital. Starbucks also use joint-venture, wholly-owned, and foreign direct investment instead of licensing and franchising to gain their profits for better financial of the company.

3.2 Porter’s Competitive Forces ; Generic Response Strategies
For years, corporations have taken an in depth look into their own success and ways to remain successful amidst the competition. This type of analysis is helpful in determining current and potential threats that may affect the success of their business with the ever-changing market. A common tool used when surveying a competitive industry is the use of Porter’s Five Forces Model. This competitive analysis tool, which uses five categories, allows a company to identify the potential for success of a business based on other companies within the same industry. The five factors include: Intensity of rivalry, threat of new entrants, the threat of substitute products or services, bargaining power of buyers, and the bargaining power of suppliers. (Martin, 2018).
Intensity of Rivalry
By examining the intensity of rivals within the market, this force looks at the number of and products or services produced by the competition. (Martin, 2018). Proctor & Gamble, Avon, Estee Lauder, Coty, Shiseido, and L’Oréal are all strong competitors within the beauty and skin care industry, many of which offer similar products. The saturation of the market has led to a competitive rivalry within the beauty and skin care market. (insert info on beauty trends)
Threat of New Entrants
The threat of new entrants examines the ease of which a company can jump into the industry as a viable competitor. This force is determined by barriers to entry, which include a scaleable economy, the capital needed for production, brand recognition, and government regulation and policies. (Kasi, 2017). The threat of new entrants increases with an increase in ease to enter a market. Within the beauty and skin care market there, is a medium to high
Threat of Substitute Products
The ability of a consumer to substitute a product with an offering from its competitor is an important piece to Porter’s Competitive Model. This force allows a corporation to examine how easy it is for a consumer to begin use of a competitor’s product of service. The threat for substitute products analyzes the number of competitors within the market, as well as their product price, product quality, and business profits. This information allows a company to determine a competitor’s ability to lower their prices. The threat for substitutes is directly related to switching costs and a buyer’s ability to choose an alternative. (Martin, 2018).
Bargaining Power of the Buyer
The bargaining power of buyers observes the buyer’s ability to control the quality and price of products that a company produces. Customers experience higher bargaining power when there are low switching costs and when there isn’t much variability between the product offerings between companies. (Martin, 2018). L’Oréal’s product offerings are similar to that of other corporations. For example, customers shopping for mascara have a plethora of corporations to purchase from, some of which could include Estee Lauder or Revlon. If a customer purchases from a company other than L’Oréal due to price or quality, they will not incur switching costs. If this happens enough, Loreal could see a dip in profits. This shows that the buyer has power to influence the product quality and price that L’Oréal charges for its products.
Bargaining Power of the Suppliers
Looking at the bargaining power of a supplier, we are able to determine the ability of a supplier to control the price of its goods. This force also looks at the number of suppliers available to a corporation. If a supplier can effectively raise their price, that would negatively affect L’Oréal’s profits. (Martin, 2018). But as we see in the case of L’Oréal, their suppliers experience low bargaining power. This is because L’Oréal has many suppliers that are producing their products. If a supplier decides to raise their price, L’Oréal can simply choose another supplier to produce materials needed for their products. (UK Essay, 2013).
Combating These Forces
The industry of beauty and skin care is constantly evolving. Two of the trends that have jumped in recent years are online sales, natural skin care, and the “doll look”. Stefano Curti, global president of Markwins Beauty Brands reported that growth in the beauty injury is 50% in stores and 50% online. For a corporation to remain successful, they must recognize these trends and create paths to meet the demands of the consumer. During 2018, Loreal has been involved in the acquisition of 6 companies to enable them to meet the demands of consumers as well as remain successful in a competitive market. The acquisitions included companies with all-natural skin care products, products to target skin dermatological diseases, designer fragrances, Korean makeup and fashion, professional hair color, in addition to augmented reality technologies. ( Loreal ). These latest deals allow loreal to grow and sustain their firm hold as a successful corporate giant in the beauty and skin care industry.