In this research, the main research strategy is qualitative research method. According to Ritchie and Lewis (2003), qualitative research is an approach that can help to provide an in-depth understanding and interpretation about various aspects of the social world to researchers, by learning the social circumstance, experience, ideas and history. During the research, qualitative research method will be conducted to understand the process of the complex reality of the condition within the company and the implications of the collected data.
Desk research will be used to find out the most effective hedging model in order to apply it into the company. This will be done by assessing, evaluating and analyzing the data and previous results of relevant researches of the company and the industry. Moreover, literature review could also be another channel to collect data related to the research topic, such as published papers and books. These will be accessed from the databases of Rotterdam Business School and Internet.
Besides, interviews will be arranged to address the analysis from the internal perspective of business strategies and future expectations. According to Boyce and Neale (2006), in-depth interviews can be conducted as intensive individual interviews to explore the perspectives with detailed information of interviewees on a particular idea, program or situation. In this research, interviews will be conducted to collect data about the possible hedging method based on the situation of the company and the requirement of the management.
Furthermore, case study of the hedging policy in the export industry will be used during the research, in order to compare different company situations to learn about the valuable practice in developing new hedging policy.
In this research, the main sources of data are collected from secondary data provided by the company such as private research done by the company, other official data, and literature and public reports.
Secondary data collection method uses the data collected by someone else. Other sources are collected through qualitative methodologies or qualitative research. Primary data, on the other hand, are collected by the investigator that conducts the research.
Interviews with the proprietors, CFO and risk manager of the company will provide an insight to better understand the current situation that the company is facing and the expectation for the new hedging policy from the company.