Business Problems with London's Canary Wharf

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In analyzing the business problem, two problems have been identified from the scenario given in prior. The two problems are “the viability in locating the firm to London’s Canary Wharf and financial district” and “why financial institutions cluster around the financial district despite the high cost”.
These two problems comprises of risks involve in locating financial institutions in a financial district and factors that influences the institutions in making a decision to cluster within the same or related financial industry sector. It also comprises of advantages and disadvantages of clustering that also helps in the decision-making.

In the diagram above, the topic, financial cluster, has been analyzed and categorized into four categories: When, Where, What and Who. ‘When’ shows the time frame of journal articles and reports to use for the research. ‘Where’ includes places that are relevant that could help in better understanding of the topic. ‘What’ helps to identify the relevant information needed in finding the possible solutions to the research problem. ‘Who’ is to identify the relevant people or organizations that are involve in the topic.
With this, research questions can be formed so as to create a focus and to frame which direction this research will be taking. The three research questions are:
- Which important factors influence the firms most in choosing a financial cluster?
- How successful is clustering in creating finance innovation within the cluster?
- How reluctant are firms in relocating to less mature financial clusters or decentralizing?

There are various definitions of cluster due to different types of industrial cluster that has its own characteristics and sustainability potential. But a general definition...

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... regarding financial cluster concepts and the relationship between factors like innovation. Also, research questions are actually testing theories where firms being reluctant to relocate and clustering helps in creating finance innovation.
The method will be quantitative as it will be testing the theories to get an interpretation. Using numerical data and statistics of firms to test the theories are more solid evidences compared to just observations. Statistics can involve graphs, measurements of quantitative variables that can be internal or ratio measurements.
The data collection will be descriptive and explanatory as plausible methods are tests and surveys where there are consolidation of data and questionnaires. The methods use will replication research method where the methods will be repeated from other relevant studies but with different inputs of variables.

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