Generic and formalized investment proposal model at the corporate level
Lehto, Henna (2021)
Lehto, Henna
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-202103032861
https://urn.fi/URN:NBN:fi:amk-202103032861
Tiivistelmä
The purpose of this thesis was to provide a new investment proposal model for the employer which supports the development of leading of asset management and can be used at the corporate level to enhance decision-making. During the thesis process there were two models formed to correspond to the needs for investment proposals of the company. Keravan Energia Ltd. is the employer of this thesis and is an energy company operating in Finland. Objective of the thesis was to examine which are the essential factors that affect to the evaluation and decision-making. There were two investment proposal models provided to the employer as a result of this thesis. With models the structure of the proposals was systemized and there is certainty for decision-making that all the essential factors are considered in the proposal.
This thesis is a functional study and represents the approach of qualitative research. Before presenting the research, the thesis discusses of the theory concerning capital budgeting and investment process. Theoretical framework includes investment categories and factors affecting the investment’s evaluation. Unstructured and semi-structured interviews were chosen as research methods for this thesis due to the possibility to get extensive and profound results regarding the subject of the research. There were continuous discussion and many interviews during the thesis process in order to get results that are most beneficial for the employer. The thesis was delimited to consider smaller and midsized investments of which the models were provided. The largest investments made in the company, such as acquisitions and new power plants, were confined out of this thesis. These investments are notably larger processes as a whole and sparsely made. During the thesis process a need for more specific investment categorization emerged and new investment categorization as well was provided as a result for the employer to support investment process. Investment proposal models were made with close collaboration with the employer and models were provided with the consideration of usability and visuality which were enhanced to personalize models for the employer and brought additional value. The result of this thesis is generic and represents the development of working life. Results of this thesis can be applied among other companies as a support of investment process and hence, it represents portability.
Investment proposal models were presented to the management in January 2021 where models got initial approval. In the end of the thesis process the final and perfected models were presented to the Directors of business lines and Chief Executive Officer of the company. Chief Executive Officer of the employer approved the models and models are to put to use from beginning of March 2021.
This thesis is a functional study and represents the approach of qualitative research. Before presenting the research, the thesis discusses of the theory concerning capital budgeting and investment process. Theoretical framework includes investment categories and factors affecting the investment’s evaluation. Unstructured and semi-structured interviews were chosen as research methods for this thesis due to the possibility to get extensive and profound results regarding the subject of the research. There were continuous discussion and many interviews during the thesis process in order to get results that are most beneficial for the employer. The thesis was delimited to consider smaller and midsized investments of which the models were provided. The largest investments made in the company, such as acquisitions and new power plants, were confined out of this thesis. These investments are notably larger processes as a whole and sparsely made. During the thesis process a need for more specific investment categorization emerged and new investment categorization as well was provided as a result for the employer to support investment process. Investment proposal models were made with close collaboration with the employer and models were provided with the consideration of usability and visuality which were enhanced to personalize models for the employer and brought additional value. The result of this thesis is generic and represents the development of working life. Results of this thesis can be applied among other companies as a support of investment process and hence, it represents portability.
Investment proposal models were presented to the management in January 2021 where models got initial approval. In the end of the thesis process the final and perfected models were presented to the Directors of business lines and Chief Executive Officer of the company. Chief Executive Officer of the employer approved the models and models are to put to use from beginning of March 2021.