A Project Portfolio Tool for Forecasting Small Projects Profitability

The case company in this study is a large industrial engineering company whose business is largely based on delivering a wide-range of engineering projects. The aim of this study is to create and develop a fairly simple Excel-based tool for the sales department. The tool’s main function is to estimate and visualize the profitability of various small projects. The study also aims to find out other possible and more long-term solutions for tackling the problem in the future. The study is highly constructive and descriptive as it focuses on the development task and in the creation of a new operating model. The developed tool focuses on estimating the profitability of the small orders of the selected project portfolio currently on the bidding-phase (prospects) and will help the case company in the monthly reporting of sales figures. The tool will analyse the profitability of a certain project by calculating its fixed and variable costs, then further the gross margin and operating profit. The bidding phase of small project is a phase that has not been covered fully by the existing tools within the case company. The project portfolio tool can be taken into use immediately within the case company and it will provide fairly accurate estimate of the profitability figures of the recently sold small projects.

POLITICAL RISK IN FOREIGN DIRECT INVESTMENT IN THE RUSSIAN ELECTRIC POWER SECTOR

Russia approved ambitious reform plan for the electricity sector in 2001 including privatisation of the country’s huge thermal generation assets. So far the sector had suffered from power shortages, aging infrastructure, substantial electricity losses, and weak productivity and profitability numbers. There was obvious need for foreign investments and technologies. The reform was rather successful; the generation assets were privatised in auctions in 2007-2008 and three European energy companies, E.On, Enel and Fortum, invested in and obtained together over 10% of the Russian production assets. The novelty of these foreign investments serves unique object for the study. The political risk is involved in the FDI due to the industry’s social and economic importance. The research’s objective was to identify and analyse the political risk that foreign investors face in the Russian electricity sector. The research had qualitative study method and the empirical data was collected by interviewing. The research’s theoretical framework was based on the existing political risk theories and it focused to understand the Russian government in relation to the country’s stability and define both macro-level and micro-level sources of political risk for the foreign direct investments in the sector. The research concludes that the centralised and obscure political decision-making, economic constriction, high level of governmental control in economy and corruption form the country’s internal macro-level risk sources for the foreign investors in the sector. Additionally the retribution due to the companies’ home country actions, possible violent confrontations at the Russian borders and the currency instability are externally originated risk sources. In the electricity industry there is risk of tightened governmental control and increased regulation and taxation. Similarly the company-level risk sources link to the unreformed heating sector, bargaining with the authorities, diplomatic stress between host and home countries and to companies and government’s divergent perspective for the profit-making. The research stresses the foreign companies’ ability to cope with the characteristics of Russian political environment. In addition to frequent political and market risk assessment, the companies need to focus on currency protection against rouble’s rate fluctuation and actively build good company-citizenship in the country. Good relationship is needed with the Russian political authorities. The political risk identification and the research’s conclusive framework also enable political risk study assessments for other industries in Russia

Leak-proof Heat Sealing of Press-Formed Paperboard Trays

Three-dimensional (3D) forming of paperboard and heat sealing of lidding films to trays manufactured by the press forming process are investigated in this thesis. The aim of the work was to investigate and recognize the factors affecting the quality of heat sealing and the leak resistance (tightness) of press-formed, polymer-coated paperboard trays heatsealed with a multi-layer polymer based lidding film. One target was to achieve a solution that can be used in food packaging using modified atmosphere packaging (MAP). The main challenge in acquiring adequate tightness properties for the use of MAP is creases in the sealing area of the paperboard trays which can act as capillary tubes and prevent leak-proof sealing. Several experiments were made to investigate the effect of different factors and process parameters in the forming and sealing processes. Also different methods of analysis, such as microscopic analysis and 3D-profilometry were used to investigate the structure of the creases in the sealing area, and to analyse the surface characteristics of the tray flange of the formed trays to define quality that can be sealed with satisfactory tightness for the use of MAP. The main factors and parameters that had an effect on the result of leak-proof sealing and must be adjusted accordingly were the tray geometry and dimensions, blank holding force in press forming, surface roughness of the sealing area, the geometry and depth of the creases, and the sealing pressure. The results show that the quality of press-formed, polymer-coated paperboard trays and multi-layer polymer lidding films can be satisfactory for the use of modified atmosphere packaging in food solutions. Suitable tools, materials, and process parameters have to be selected and used during the tray manufacturing process and lid sealing process, however. Utilizing these solutions and results makes it possible for a package that is made mostly from renewable and recyclable sources to be a considerable alternative for packages made completely from oil based polymers, and to achieve a greater market share for fibre-based solutions in food packaging using MAP.