Stock Exchange

INTRODUCTION:

The stock exchange is a kind of capital market which helps to companies to raise funds not to make profit from it. Stock exchange is having its own identity worldwide. It gives a platform for giant companies as well as small enterprises to extend their power in the international market. The exchange also provides a highly active and efficient market for dealing in wide range of securities for e.g. debts, equities, exchange traded funds, contracts for differences, depository receipts. Each country is having its own stock markets which inspires the countries economy and helps each other for extending their strength through shares, bonds, equities etc.   Mainly the research is focused on the Alternative investment market of London. AIM, Alternative Investment Market is another concept of stock market which was introduced in the 19th century. The Alternative Investment Market (AIM) has established itself as the world's leading stock market for young growing companies in UK affecting the global connection between different markets. As it is the growing market it affects the international dealings. As per the research we have to mull over of Indian stock market and London Stock exchange. They are as follows:

• London Stock Exchange
• Alternative Investment Market ( London)
• Bombay Stock Exchange
• National Stock Exchange

The comparison of these markets will help to understand the role of these markets in the world economy. This will also give focus on research aim.  

RESEARCH TOPIC:

The research topic for the dissertation is

‘EMERGENCE OF ALTERNATIVE INVESTMENT MARKET (AIM) IN INDIA.

This topic will help to understand and extend the knowledge of stock market. Also give idea of the London stock exchange and Indian stock exchange which will defiantly helps out in the future.  

RESEARCH PURPOSE

The main purpose of this research is to find out whether AIM can create good opportunity for new budding Indian companies to expand more and whether it can help to raise funds for such expansions. Also it gives a brief scenario of AIM London and the working of Indian stock market. Research study will also help us to understand the reason behind the growing Alternative Investment Market of London.   The Research proposal is divided to understand the research topic clearly in different chapters. These chapters are as follows:  

CHAPTERS:

 

LITERATURE REVIEW:

In this chapter there is deep study of all the stock markets in London and in India i.e. London stock exchange, Alternative investment market London, Bombay stock exchange, national stock exchange. The different views given by different authors will help to explain the all stock markets understandable. Also it will consist of SWOT analysis for AIM to understand the growth of that market. The brief explanation of these markets is as follows:  

BSE - Bombay Stock Exchange:

Three centuries in its 133 years of continuation and now popularly known as BSE. It was established as "The Native Share & Stock Brokers' Association" in 1875. BSE is the first stock exchange in India which obtained permanent recognition (in 1956) from the Government of India under the Securities Contracts (Regulation) Act 1956. BSE's pivotal and pre-eminent role in the development of the Indian capital market is widely recognized. It migrated from the open outcry system to an online screen-based order driven trading system in 1995. Earlier an Association of Persons (AOP), BSE is now a corporatized and demutualised entity incorporated under the provisions of the Companies Act, 1956, pursuant to the BSE (Corporatization and Demutualization) Scheme, 2005 notified by the Securities and Exchange Board of India (SEBI). With demutualization, BSE is having two of world's best exchanges, Deutsche Borse and Singapore Exchange, as its strategic partners. By providing it with an efficient access to resources, BSE has facilitated the growth of the Indian corporate sector. BSE is the strongest stock market in India that shows the dominance on corporate sector which needs to raise the capital with the support of these market.   Today, BSE is the world's number 1 exchange in terms of the number of listed companies and the world's 5th in transaction numbers. The market capitalization as on December 31, 2007 stood at USD 1.79 trillion. An investor can choose from more than 4,700 listed companies, which for easy reference, are classified into A, B, S, T and Z groups.   BSE provides an efficient and transparent market for trading in equity, debt instruments and derivatives. It has a nation-wide reach with a presence in more than 359 cities and towns of India. BSE has always been at par with the international standards. The systems and processes are designed to safeguard market integrity and enhance transparency in operations.  

NSE - National Stock Exchange:

The National Stock Exchange of India Limited has genesis in the report of the High Powered Study Group on Establishment of New Stock Exchanges, which recommended promotion of a National Stock Exchange by financial institutions (FIs) to provide access to investors from all across the country on an equal footing. Based on the recommendations, NSE was promoted by leading Financial Institutions at the behest of the Government of India and was incorporated in November 1992 as a tax-paying company unlike other stock exchanges in the country.   On its recognition as a stock exchange under the Securities Contracts (Regulation) Act, 1956 in April 1993, NSE commenced operations in the Wholesale Debt Market (WDM) segment in June 1994. The Capital Market (Equities) segment commenced operations in November 1994 and operations in Derivatives segment commenced in June 2000.Currently, NSE has the following major segments of the capital market:

• Equity
• Futures and Options
• Retail Debt Market
• Wholesale Debt Market
• Currency futures

 

LSE - London Stock Exchange:

The London Stock Exchange is one of the world's oldest stock exchanges and can trace its history back more than 300 years. Starting life in the coffee houses of 17th century London, the Exchange quickly grew to become the City's most important financial institution. Over the centuries following, the Exchange has consistently led the way in developing a strong, well-regulated stock market and today lies at the heart of the global financial community.   The London Stock Exchange was founded in Sweeting's Alley in London in 1801. It moved to Capel Court the following year.   In 1972 the Exchange moved to a new purpose-built building and trading floor in Threadneedle Street. Deregulation, sometimes known as "big bang", came in 1986 and external ownership of member firms was allowed for the first time. In 1995 the Alternative Investment Market was launched and in 2004 the Exchange moved again, this time to Paternoster Square.   Nasdaq built up a stake of over 30% in the Exchange in 2007 in a failed attempt to acquire it. It has since sold its investment.   In 2007 the Exchange acquired the Milan-based Borsa Italiana for 1.6bn euros (£1.1bn; $2bn) to form the London Stock Exchange Group plc. The combination was intended to diversify the LSE's product offering and customer base. The all-share deal diluted the stakes of existing LSE shareholders, with Borsa Italiana shareholders receiving new shares representing 28 per cent of the enlarged register.  

AIM- Alternative Investment Market:

AIM is the Exchange's international market for smaller growing companies. On AIM you will find a wide range of businesses ranging from young, venture capital-backed start-ups to well-established, mature organizations looking to expand.  Since its launch in 1995, over 2,500 companies have joined AIM ? raising more than £60bn in the process, both through initial public offerings (IPOs) and further capital raisings. This capital has helped AIM-quoted companies of all kinds to fund their development and pursue their ambitions.   The AIM communities of companies, advisers and investor have been attracted to the market by its outstanding reputation and high standards of regulation. These qualities have established AIM as the international growth market of choice for companies and investors. In 2007, 284 companies joined AIM, raising a total of £16.1 billion. AIM companies come from 38 sectors and 92 sub-sectors representing 32 countries.   International companies increasingly recognize the unparalleled access to the global investment community and capital-raising possibilities that come from having their securities quoted and traded in London. AIM has over 500 companies operating outside the United Kingdom, and the number is continuing to rise all the time. This international interest reflects the fact that AIM presents an ideal environment for young international companies wishing to use the public markets to fund further expansion and raise their global profile.  

Genuine investor interest

AIM, and the companies on it, benefit from a high public profile and strong interest among a growing and increasingly sophisticated investor base. Investors ranging from private individuals to global institutions regard AIM as an excellent place to find investment opportunities in young, fresh, entrepreneurial and growth-orientated businesses from all over the world ? in short, the 'companies of the future'.  

Regulation

The London Stock Exchange is committed to sustaining AIM's success by ensuring it remains the international growth market of choice for smaller companies. AIM's unique regulatory framework was strengthened by its becoming an Exchange Regulated Market in October 2004. Like the Main Market, AIM enjoys a reputation for effective regulation: the London markets are world-renowned for the fair, firm and responsive way in which they are policed. AIM reflects these qualities to the full, offering a secure yet flexible trading environment for both companies and investors.  

Reasons for admission

The majority of companies coming to AIM are attracted by its offer of a flexible way of entry to life on a public market. As a result, AIM continues to welcome a steady stream of both UK and international companies.  

International companies

The Exchange is a global marketplace. Around 350 companies from over 50 different countries use a London listing to gain the profile and access to capital they need to grow into truly global companies. They are drawn by the quality of our markets, their depth of liquidity and the sophistication and long-term approach of the institutional investor community in London. AIM offers smaller growing companies all the benefits of being traded on a world-class public market, within a regulatory environment that has been designed specifically to meet their needs. These are some of the reasons why companies join AIM: “AIM has developed to meet the needs of smaller companies. A flexible approach to regulation and a streamlined admission process make AIM the ideal market for smaller growing companies seeking to develop their business in a supportive environment" Phillip Secrett, Corporate Finance Partner, Grant Thornton.  

Enhanced accessibility

AIM is a flexible market that does not stipulate minimum requirements for:

• company size
• track record
• the number of shares in public hands
• market capitalization

 

Simple admission process

AIM's unique approach to company admission through the role of the Nomad ensures that the process is simple, relevant and timely. Nomads are specialists with a deep understanding of the needs and aspirations of companies looking to come to AIM, and are highly experienced in helping them every step of the way to their AIM quotation.  

Appropriate regulation for smaller companies

AIM is renowned worldwide for having a regulatory framework and approach uniquely suited to smaller companies. The AIM Rules do not contain legal or technical jargon, and are designed to be as flexible and comprehensible as possible. The Exchange operates a consultative approach to any changes in the rules governing AIM, and always engages and consults with market participants before putting any modifications into effect.  

INDIAN COMPANIES LISTED IN LSE

The number of Indian companies listed on the London Stock Exchange is expected to jump by 20 per cent, Grant Thornton, a leading business and financial adviser, has predicted. At present 30 Indian companies are listed on the LSE and Grant Thornton is preparing to welcome another six Indian firms to the market, a sign that current economic difficultly in the UK is not dissuading Indian business leaders from raising fund in London.   The firm's quarterly 'India Watch', launched in conjunction with the LSE, monitors the UK-India business relationship through both cross border mergers and acquisitions between India and the UK and the performance of Indian firms listed on the LSE, with a tracker that focuses on the performance of the Main Market and AIM versus listed Indian firms since January 1 2007.   The index reveals Indian companies listed on the LSE are now collectively outperforming both the FTSE 100 and the AIM 100 by a wide margin, with the India Index up 34 per cent since January 1 2007, while the FTSE 100 is down 15 per cent and AIM 100 is down 13 per cent. The prospective listings come from a variety of sectors including bio-engineering, mining and several media companies.   These firms, expected to raise between 10 million pounds and 250 million pounds each, will take the present number of Indian companies with full London listings from 30 to 36, a jump of 20 per cent through Grant Thornton alone, with further interest expected to boost this number before the end of the calendar year. Indian companies listed on LSE's Alternative Investment Market (AIM) launch initial public offerings in London because it offers them a wide pool of investors and makes it easier to raise finance for acquisitions in the UK and Europe.   Anuj Chande, head of Grant Thornton's South Asia Group, said that since the listing of Indian energy and mining major Vedanta Resources in December 2003, there had been a steady stream of Indian IPOs with a total of 30 firms now listed on both the Main Market (five firms) and the AIM market (25 firms).   He said, "India is vying to be both the most prolific and most successful nation on the LSE and all indicators point to this soon becoming a reality. A sustained economic boom within the subcontinent and the many perceived benefits for Indian firms that come with a London listing are key drivers in this process."   Chande pointed to poor domestic markets, access to a greater and wider investor base, international focus, the prestige of a London listing and the profile raising that comes with it as driving the number of Indian firms exploring a London IPO. Listing overseas is getting popular with Indian companies. Around 30 Indian companies are considering raising money from public markets abroad. About half of them belong to real estate sector interestingly.   Apparently most of these companies are restructuring themselves to go to overseas markets directly. There is a rule in India that an Indian company has to list in India first before going abroad. So it's likely that the companies would incorporate themselves abroad for this. Most of the companies are looking at approaching London-based Alternative Investment Market (AIM) where the average size of a listed company is $70 million against a billion dollar-plus in other exchanges.   When it was founded ten years ago, Aim was supposed to be the place where young, entrepreneurial British firms, lacking the required qualifications for the London Stock Exchange's (LSE) main market, could hook up with bold investors happy to take a little extra risk. In recognition of this useful contribution to the domestic economy, nice tax breaks were, and still are, available for investors.   But firms from all over the world are flocking to London. Over 220 of Aim's 1,426 quoted firms are from countries such as China, Australia, South Africa, Russia, Germany, Israel, Bangladesh - and now the Americans are arriving too.  

Investing in Aim: internationalisation

Recent debutantes include Noida Toll Bridge, formed to construct and operate a toll bridge connecting Noida to South Delhi in India; Kalahari Mining, with a portfolio of mineral projects in Namibia; Sinosoft Technology, an IT provider to the Chinese government; Amur Minerals, whose principal asset is a licence to explore for nickel and copper in the far east of the Russian Federation; Elitel, a fixed-line Italian telecoms group; and Legacy Distribution, a wholesaler of candy, cigarettes, and groceries in Arizona, USA.   This internationalisation of Aim - which provides juicy fees for financial advisers but little payback to the domestic economy for those attractive tax breaks - has three causes:  

Investing in Aim: the aftermath of Enron

The Sarbanes-Oxley Act (2002) is meant to tighten up US corporate governance after the scandals at Enron, WorldCom and Tyco. CEOs and chief financial officers of American-listed firms must now sign statements attesting to the accuracy of their company's accounts.   But this is time consuming and expensive, especially for small firms. At $2m, the cost of compliance is at least double that of an Aim listing, which is why the number of small firms applying for a listing on US markets has halved.  

Investing in Aim: the lure of London

Overseas investors are wary of their domestic markets. Hong Kong has suffered from low-quality Chinese share issues, Singapore's market suffers from poor liquidity, but when the dotcom bubble burst, few fell from grace as spectacularly as Germany's Neuer Market.   Founded in 1997 as Germany's answer to the Nasdaq, at its peak it boasted a market capitalisation of $300bn, before losing 96% of its value and eventually closing in 2003.   German investors still bear the scars. There is no appetite for new issues in the German market, which saw only nine initial public offerings (IPOs) last year. Instead, German firms are coming to London.   London offers a trusted legal and regulatory framework, it boasts a huge pool of capital and expertise, and offers a certain cachet: firms from all around the world believe an LSE listing confers credibility. Keen to capitalise on this opportunity, officials from the LSE and UK financial advisers are racking up the air miles, hosting conferences in foreign cities and selling the Aim story.   The stream of foreign listings threatens to turn into a flood. “I could get 100 Chinese or Indian companies tomorrow,” says Martin Graham, head of Aim. “But that wouldn't necessarily be the right thing to do. We have to be very careful that as we internationalise, we actually increase the quality of the market.”   While Aim has generated huge fees for the City, it has been much less of a success story for investors. In the ten years of its existence, the index has gained just 2% and has been far outpaced by the FTSE Small Cap index, which includes more mature and generally UK-centric firms.   While only 3% of Aim-listed firms have failed altogether, the index has been hampered by the generally poor early performance of newly floated companies, which have struggled to live up to the promises contained in their glossy prospectuses.   UK private investors have historically found it difficult and expensive to invest overseas, especially in small firms, so the arrival of foreign firms on Aim gives them a cheap, accessible way of investing in overseas economies and into business opportunities that don't exist at home. But they should be aware of the pitfalls. Here are the three most important ones:  

Investing in Aim: lack of transparency

Aim investors need to be diligent. Many Aim firms are all but invisible. Some are happy to be low profile and don't even have their share price quoted in the newspapers. But for many firms, an Aim listing is a way of raising their profile.   This is especially true for foreign companies, who often appoint PR advisers to broadcast their presence. But the number of small firms is rising faster than both the number of journalists who write about them and the capacity of investors to follow the news.   So the investor must be prepared to trawl the internet via free sites such as Investigate.com, Digitallook.com, or Armshare.com, before looking at the chosen company's own website.  

Investing in Aim: lack of liquidity

Trading liquidity is a huge issue for many Aim companies. Of the index's 1,424 quoted firms, 866 have a total market value of less than £25m. The ‘free float' (the shares you can actually buy) is smaller less than this and most holders of the free float will have taken shares in the initial placing and have no intention of selling.   In the Budget, Gordon Brown reduced the maximum size of firms eligible for venture capital trusts (VCTs) from £15m to £7m and increased the length of time investors must hold VCTs from three to five years if they are to qualify for tax relief. This is likely further to tie up VCT money in shares of the smallest companies, increasingly reducing trading liquidity.   Institutions are also put off buying shares in the secondary market  because they fear they will be unable to sell them. In the opinion of Charles Breese, founder of Armshare.com, the LSE is too intent on simply recruiting new Aim entrants and is not doing enough to stimulate the secondary market.  

Investing in Aim: uncertain prospects

Hopes are high when a firm floats on Aim. It looks forward to a rising share price, to issuing further equity to pursue its growth plans and to encouraging its executives with share options. But it can soon become disillusioned if the share price goes the wrong way.   Many Aim-listed UK companies privately complain that they are not getting value for the £50,000 that they pay to their financial advisers to promote their shares. This problem is worse for overseas firms. First City was the first UK public relations adviser to spot the Chinese opportunity. It now has a Hong Kong office with Mandarin-speaking staff, and is in regular contact with its clients. But others are all too happy to take the fee for the Aim listing and then offer little else besides.   So investors should be cautious. They must be prepared to do their own research and make up their own minds. Short-term traders should rule Aim out altogether. But for those prepared to stay the course, the influx of foreign companies provides some highly attractive investment opportunities.  

Tax breaks on Aim

• • Capital gains tax (CGT): After holding Aim shares for one year, the investor is only charged on 50% of the gain. After two years, this drops to 25%.

 

• • Inheritance tax (IHT): Shares in qualifying Aim trading firms can attract 100% relief from inheritance tax, provided they have been held for two years.

 

• • Enterprise Investment Schemes (EIS): EIS investors can invest up to £400,000 per year. They receive tax relief on contributions and pay no CGT, provided the investment has been held for three years. Investment can be made into Aim firms, but overseas companies are unlikely to be eligible.

 

• Venture capital trusts (VCTs): VCT investors receive 30% income tax relief on contributions, and pay no CGT as long as the investment has been held for five years. Overseas companies are unlikely to be eligible for VCTs.

  Why are Indian companies rushing to the Alternative Investment Market (AIM) of the London Stock Exchange? AIM has become the new El Dorado of Indian companies, especially unlisted companies which are in a hurry to raise funds in the ongoing economic boom with few disclosures.   Two companies — Noida Toll Bridge and Great Eastern Energy Corporation — have already listed on the AIM, the LSE's international market smaller growing companies. Over 30 Indian companies, including Hiranandani and Unitech, have shown interest in listing on AIM and the list is growing. Interestingly, most of them are real estate and construction companies — which shot up to dizzy heights in the bull run — which are keen to raise money from AIM without listing on Indian stock exchanges.   “The most important attraction is that transparency and corporate governance standards are very low on the AIM market. It's ideal for an unlisted company which doesn't want to disclose much and doesn't believe in corporate governance,” said a member of several capital market committees.   The LSE is also very candid about its trading platform. “To join AIM, companies do not need a particular financial track record or trading history. There is also no minimum requirement in terms of size or number of shareholders,” says the LSE website. For some Indian companies, the listing norms on AIM could be music as listing standards are tough in India and the US.   Promoters will have to follow financial track-records, minimum capital, tough disclosure norms and transparency in India. Listing norms in US markets like New York Stock Exchange and Nasdaq are even tougher. “The AIM market of the LSE is convenient for some of our unlisted companies as they don't need to disclose many things,” an investment bank source said.  

Methodology:

This chapter consist of different methodological perspectives, the explanation related to which company examined and why, the data collection method and data analysis.

• • Research Purpose:

According to Gummesson, case study research is mainly divided in to three types, exploratory, descriptive and explanatory research.

• • • Exploratory research:

This type of research approach is to collect as much information as possible related to research area. According to Gummesson (2002) exploratory research is a pilot study that can be used as a basis for formulating more precise questions or testable hypothesis.  

• • • Descriptive research:

This type of research used when the problem is well structured. In this research, researcher wants to find out the relevant aspects of the problem. According to Wiedersheim- Paul and Eriksson (1998) and Yin (1994) this approach attempts to describe.  

• • • Explanatory research:

According to Paul and Eriksson (1998) and Yin(1994) This type of research is used to prove or disapprove condition take place. It can be also used to find a correlation between causes using data collection methods. The main reason of this research is descriptive. This research helps to understand “How gardening companies  adapt or standardize their product for foreign market” With the help of answering specific research questions we will gain better understanding related to gardening  industry.

• Approach of Research:

Two techniques used at the time of research, one is qualitative and second is quantitative method (Yin, 1994).

• • • Qualitative method:

According to Denscombe (1998) qualitative method goes more in depth of the problem as compared to the quantitative method. This method is used when researcher wants to investigate the problem. In this method the researcher him/herself plays a vital role. Disadvantage of this method is difficult to compare the collected information from the different objectives.  

• • • Quantitative method:

According to Denscombe (1998) quantitative method consist of numbers collecting with the help of survey and questionnaire. The advantage of this method is that the study can be generalized while it is aimed at large target group. In this research we will use qualitative method. This decision is mainly based on information required to find result of research questions are of qualitative nature, because there is a need of a bottomless understanding. However with the help of qualitative method we will collect data based on interviews. With the help of qualitative method the result present in words.

• Strategy of Research:

Denscombe (1998), Wiedersheim- Paul and Eriksson (1998) and Yin(1994) state that there are five primary research strategies such as surveys, experiments, case studies, archival analysis and histories. Below table shows five strategies.  

Research Strategy	Form of research         question	Requires control over behavioural events	Focuses on contemporary events
Experiment	How, why	Yes	Yes
Survey	Who, what, where, how, many, how much	No	Yes
Archival Analysis	Who, what, where, how, many, how much	No	Yes/No
History	How, why	No	No
Case Study	How, why	No	Yes

Table 1: Research StrategiesSource: Yin (1994 p .6)   With the help of research question and the purpose, we will able to find that, there is no need to control over behavioural events as well as survey; contemporary events, archival analysis, and experiment are not appropriate research strategies for this research. Yin (1994) state that case studies permit to a research, keep important image of organizational and administrative processes. On the other hand Yin (1994) focuses on case study can be single case study or multiple case studies. In single case study researcher unable to make comparisons, and in multiple case studies researcher able to compare, on the other hand fewer time used for each case study.   For this research we considered case studies related to different gardening companies, which are the best research strategy to use for answer research questions. With the help of case studies we able to answer how and why questions as well as  we will add to the validity, precision stability and confidence of the research result.

• Sample selection:

After determined research strategy, the next chapter is sample selection. According to Yin (1994), collection of data with the help of all potential units is not possible because of limited financial resources and time limitation. In order to explain the important features of the complete problem area, smaller companies are gathered. The researcher cannot be confident that the conclusion he/she will end up with will be capable to simplify the whole research area while the samples chosen are not all representative for the research area for which they are gathered. At the time of primary speak with companies; the purpose of research is clear. For completing purpose of this research, there is need, to contact with person who have best knowledge and experience of companies products sell in foreign market.

• Data collection:

According to Eriksson and Widersheim (1997) data is collection consist of two methods. First method is primary data collection, in which information is collect by researcher and for specific purpose. Second method is secondary data collection, in which the data is already collect and for different purpose. Yins (1994) recommend six sources of data collection its strengths and weaknesses related to case studies are given below in table:  

Source of evidence	Strength	Weakness
Interviews	Targeted: focuses directly on case study topic. Insightful: provide perceived casual inferences	Bias due to poorly constructed questionnaires. Inaccuracies due to poor recall Response bias Reflexivity: interviews gives what interviewer wants to hear.
Direct Observations	Reality: covers events in real time. Contextual: covers context of event.	Time consuming Selectivity: unless broad coverage. Reflexivity: event may proceed differently because it is being observed. Cost: hours needed by human observers.
Participant Observation	Insightful into inter-personal behaviour and motives.	Bias due to investigators manipulation of events.
Physical Artifacts	Insightful into cultural features. Insightful into technical operations.	Selectivity Availability
Documentation	Stable, it can reviewed repeatedly Un-obstructive: Not created as a result of the case. Exact: Contains exact names, references and details of an event. Broad coverage: long span of time, many events, and many settings.	Retrievability: can be low Biased selectivity: if collection is incomplete. Reporting bias: reflects (unknown) bias of author. Access: may be deliberately blocked.
Archival Records	Precise and quantitative.	Accessibility due to privacy reasons.

Table 2: Six sources of evidence: Strength and weakness    Source: Yin (1994, p80) Due to time limitation and financial resources, in this research direct observations and participant observation are not possible.  However archival record is not possible and there is no need to considered technical operations, physical artifacts are not used. Therefore there is only two sources of evidence for this research can be used i.e. interviews and documentation   In this research data can be collected with the help of both primary and secondary data. When collecting data for case study, semi-structured research method and focused interviews can be used. In this research, we can collect data from personal interviews based on telephone because of amount of time and money. This type of data used for specific purpose of research, therefore it considered primary data. On the other hand we can collect the data with the help of documentation, website and gardening companies' brochures. This data considered as secondary data and it consist of background information of company.  

• Data analysis:

It consist of examining, categorizing, tabulating the evidence to address the initial propositions of research. Holme and Solvang (1997) recommend that a systematic analysis begins with a case analysis and after find out result with the help of cross-case analysis. This research can pursue above recommendation. In one side, case analysis can conduct and collect data from gardening company. In second side with the help of cross case analysis in which different companies are compared with each other and data will be calculate. The next is sort out similarities and dissimilarities related to theory and collected data, then build up a conclusion.  

• Reliability and Validity:

In this research these two factors plays a very important role. To build up the reliability of this research, there is need of to find objectives as possible. However consider reliability when method for the duration of the interview which is helpful to stop non objective data collection. On other hand validity consider at the time measuring what is intended to be measured.  

• Findings, Conclusion and implication:

This chapter consist of findings and conclusion based on research. In this chapter we able to provide answers of research question. When we answering the research questions we can get factors affecting on gardening company related to adaptation, standardization, and elements of products. These factors based on different companies in gardening industry and its considerations After findings and conclusion of this research we will able to find out Implications for future research related to gardening companies.

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