Designing a profitability analysis tool for SATO Oyj
Zlatilova, Dilyana (2015)
Zlatilova, Dilyana
Haaga-Helia ammattikorkeakoulu
2015
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2015052710684
https://urn.fi/URN:NBN:fi:amk-2015052710684
Tiivistelmä
This Bachelor’s thesis presents a project, commissioned by SATO Oyj, a leading company in the real estate investment business in Finland. The main outcome of this thesis report is to introduce the reader to the unique calculator and familiarize them with the research executed in order to complete the project.
The primary objective of this thesis is to design a customized to the commissioning compa-ny’s instructions tool which analyses profitability from different pricing decisions. The potential users of the tool are the management level employees of the internationally present real es-tate investment company. SATO is a market leader in the housing business in Finland, with investments currently valued at more than two and a half billion euros.
The need for the tool came from the Senior management’s desire to unify the profit projec-tions and estimations throughout the Rental Investment and Management Division. For years the responsibility of computing future profits has fallen on each of the Regional managers, who have used different methods and tools to report profitability. With implementation of this thesis project, the management seeks not only to improve the process of reporting but also achieve efficiency in comparing different Regional Managers’ portfolios. The need for the project and the thesis objective have been set by the commissioning company. The project serves the purpose of being bachelor thesis material, of having practical usefulness in the business life, and helps the author gain international experience by carrying out research of this scope and kind.
The sole purpose of the tool is to study how the profitability from individual customers chang-es in the future. It will be solely used on new and future clients of the company, and not to assess the overall profitability of the company. Another limitation to the project includes the treatment of VAT, which is not executed per apartment, but rather corporate-wide, and there-fore disregarded in the tool.
The tool has been fully customized to the operational activities of SATO. It follows company laws and implements specific business practices. This level of adaptation has been achieved throughout informative, extensive interviews with the management, conducted in February and March, 2015. Desktop as a research method was implemented in order to collect infor-mation about the housing industry, and build the framework of theoretical reference. The concepts and methodology studied include reliable theories on revenue management, promo-tional pricing, components of CVP analysis, and customer profitability.
The conclusions and suggestions to the commissioning party were reached by critically ana-lyzing the thesis process, and include recommendations for further researching customer behavior and development ideas on improving cost structures and analysis of profitability.
The primary objective of this thesis is to design a customized to the commissioning compa-ny’s instructions tool which analyses profitability from different pricing decisions. The potential users of the tool are the management level employees of the internationally present real es-tate investment company. SATO is a market leader in the housing business in Finland, with investments currently valued at more than two and a half billion euros.
The need for the tool came from the Senior management’s desire to unify the profit projec-tions and estimations throughout the Rental Investment and Management Division. For years the responsibility of computing future profits has fallen on each of the Regional managers, who have used different methods and tools to report profitability. With implementation of this thesis project, the management seeks not only to improve the process of reporting but also achieve efficiency in comparing different Regional Managers’ portfolios. The need for the project and the thesis objective have been set by the commissioning company. The project serves the purpose of being bachelor thesis material, of having practical usefulness in the business life, and helps the author gain international experience by carrying out research of this scope and kind.
The sole purpose of the tool is to study how the profitability from individual customers chang-es in the future. It will be solely used on new and future clients of the company, and not to assess the overall profitability of the company. Another limitation to the project includes the treatment of VAT, which is not executed per apartment, but rather corporate-wide, and there-fore disregarded in the tool.
The tool has been fully customized to the operational activities of SATO. It follows company laws and implements specific business practices. This level of adaptation has been achieved throughout informative, extensive interviews with the management, conducted in February and March, 2015. Desktop as a research method was implemented in order to collect infor-mation about the housing industry, and build the framework of theoretical reference. The concepts and methodology studied include reliable theories on revenue management, promo-tional pricing, components of CVP analysis, and customer profitability.
The conclusions and suggestions to the commissioning party were reached by critically ana-lyzing the thesis process, and include recommendations for further researching customer behavior and development ideas on improving cost structures and analysis of profitability.