Capital Investment Planning in Renewable Energy in Hospitality Sector: Strategy and Evaluation
Patsatsia, Alexander (2024)
2024
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2024051511964
https://urn.fi/URN:NBN:fi:amk-2024051511964
Tiivistelmä
This thesis is based on constructive research methods, utilizing qualitative and quantitative data to develop a capital investment strategy framework for hospitality small and medium-sized enterprises (SMEs), that are planning to make eco-investment in renewable energy sources. The reason for writing this thesis emerged from increased consumer demand and state regulatory actions towards more sustainably produced hospitality products and services. Such impact created opportunities and challenges for small companies.
Hospitality SMEs that are planning to invest in renewable energy sources need to strategically plan and evaluate their financial investments and conduct an analysis of how this investment impacts the environment, customers, and financial outlook of the business.
The study starts with the review of Finnish hospitality sector and impact from COVID-19 followed by strategizing phase of the capital investment in solar panels with intention to generate electricity on hospitality SME premises. The phase consists of development of an insight into solar energy application, discussing its sustainability impact and value proposition of solar energy production and utilization on hospitality establishment premises. The research involves obtaining insights on solar energy generation through academic literature, contacts, enquiries, and negotiations with industry representatives. In addition, the strategizing process develops renewable energy-powered hospitality value proposition design.
The main action dedicated to financial analysis which provides results of the capital investment appraisal for solar energy project as the fundamental indicator of the viability of the project and provider of insight into which sustainable strategy the hospitality company should pursue. Consequently, study employs investment appraisal techniques and identifies profitability metrics, which are essential for further planning.
Based on investment appraisal outcomes development continues towards proposal of eco-investment through a sustainable business model that stands on the strategizing process results, thus delivering value to the stakeholders including customers, environment, and profit to the business. Finally, eco-investment strategy framework is presented as an integrated strategy model. The framework is a result of the research and learning path of the thesis study, it comprises three levels of strategy formation and implementation: strategizing, sustainable business model design, and performance management phases.
Eco-investment strategy framework is intended to be utilised as tool for insight development, strategy formation and evaluation, when planning capital investment in renewable energy for hospitality SME.
Hospitality SMEs that are planning to invest in renewable energy sources need to strategically plan and evaluate their financial investments and conduct an analysis of how this investment impacts the environment, customers, and financial outlook of the business.
The study starts with the review of Finnish hospitality sector and impact from COVID-19 followed by strategizing phase of the capital investment in solar panels with intention to generate electricity on hospitality SME premises. The phase consists of development of an insight into solar energy application, discussing its sustainability impact and value proposition of solar energy production and utilization on hospitality establishment premises. The research involves obtaining insights on solar energy generation through academic literature, contacts, enquiries, and negotiations with industry representatives. In addition, the strategizing process develops renewable energy-powered hospitality value proposition design.
The main action dedicated to financial analysis which provides results of the capital investment appraisal for solar energy project as the fundamental indicator of the viability of the project and provider of insight into which sustainable strategy the hospitality company should pursue. Consequently, study employs investment appraisal techniques and identifies profitability metrics, which are essential for further planning.
Based on investment appraisal outcomes development continues towards proposal of eco-investment through a sustainable business model that stands on the strategizing process results, thus delivering value to the stakeholders including customers, environment, and profit to the business. Finally, eco-investment strategy framework is presented as an integrated strategy model. The framework is a result of the research and learning path of the thesis study, it comprises three levels of strategy formation and implementation: strategizing, sustainable business model design, and performance management phases.
Eco-investment strategy framework is intended to be utilised as tool for insight development, strategy formation and evaluation, when planning capital investment in renewable energy for hospitality SME.