Assessing the effectiveness of non-profit forestry organisations : an ultimate goal approach

Summary

Applying the principles of life cycle assessment and costing in process modeling to examine profit-making capability

Static process simulation has traditionally been used to model complex processes for various purposes. However, the use of static processsimulators for the preparation of holistic examinations aiming at improving profit-making capability requires a lot of work because the production of results requires the assessment of the applicability of detailed data which may be irrelevant to the objective. The relevant data for the total assessment gets buried byirrelevant data. Furthermore, the models do not include an examination of the maintenance or risk management, and economic examination is often an extra property added to them which can be performed with a spreadsheet program. A process model applicable to holistic economic examinations has been developed in this work. The model is based on the life cycle profit philosophy developed by Hagberg and Henriksson in 1996. The construction of the model has utilized life cycle assessment and life cycle costing methodologies with a view to developing, above all, a model which would be applicable to the economic examinations of complete wholes and which would require the need for information focusing on aspects essential to the objectives. Life cycle assessment and costing differ from each other in terms of the modeling principles, but the features of bothmethodologies can be used in the development of economic process modeling. Methods applicable to the modeling of complex processes can be examined from the viewpoint of life cycle methodologies, because they involve the collection and management of large corpuses of information and the production of information for the needs of decision-makers as well. The results of the study shows that on the basis of the principles of life cycle modeling, a process model can be created which may be used to produce holistic efficiency examinations on the profit-making capability of the production line, with fewer resources thanwith traditional methods. The calculations of the model are based to the maximum extent on the information system of the factory, which means that the accuracyof the results can be improved by developing information systems so that they can provide the best information for this kind of examinations.

Profit at Risk as a Risk Management Tool in Deregulated Energy Markets

Euroopan energiamarkkinat ovat olleet viimeisen kymmenen vuoden aikana suurten muutosten alla. Markkinoiden kehitys on ollut huomattavaa myös Iso-Britanniassa, jossa sähkö- ja kaasumarkkinat ovat olleet avoinna kilpailulle jo muutamia vuosia. Ennen markkinoiden avautumista energiyhtiöt pystyivät siirtämään kaikki riskit suoraan asiakkaan kannettaviksi. Markkinoiden avautumisen myötä lisääntynyt kilpailu on kuitenkin pakottanut energiayhtiöitä ajanmukaistamaan näkemyksiään riskeistä. Riskitekijät, joista ei aiemmin tarvinnut välittää, on nyt pystyttävä tunnistamaan ja hallitsemaan. Tämä työ keskittyy hinta- ja volyymiriskien hallintaan. Rahoitusmarkkinoilla pitkään käytettyjä riskienhallintatyökaluja on otettu käyttöön myös energiamarkkinoilla. Energiamarkkinoiden piirteet poikkeavat kuitenkin rahoitusmarkkinoista, eikä näitä työkaluja voida ottaa käyttöön muutoksitta. Silti, jopa muutosten jälkeen rahoitusmarkkinoiden riskienhallitavälineet aliarvioivat energiamarkkinoiden hinta- ja volyymiriskejä. Tässä yhteydessä työssä esitetään Profit at Risk, PaR. PaR on skenaariopohjainen riskienhallinnan työkalu, joka on kehitetty erityisesti energiamarkkinoille ja täten huomioi niiden erikoispiirteet. Työn rungon muodostavat energiamarkkinoiden käyttäytyminen, hinta- ja volyymiriskitekijät sekä pohdinta miten hinta- ja volyymiriskeiltä voidaan suojautua ja miten niitä voidaan hallita. PaR-metodologiaa verrataan perinteisiin riskienhallintamenetelmiin ja työn tavoitteena on tuoda esiin ne tekijät, joiden ansiosta PaR on sopivampi työkalu energiamarkkinoiden riskienhallintaan kuin perinteiset menetelmät. Käytännön esimerkkinä työssä toimii Fortum Energy plus’n PaR –malli. Koska PaR on kehitetty erityisesti energiamarkkinoille, se huomioi täysin markkinoiden aiheuttamat hinta- ja volyymiriskit. Käytännön esimerkki kuitenkin osoittaa, että PaR menetelmästä ei ole riskienhallinnallista hyötyä ellei työkalun käyttäjällä ole täydellistä tietämystä niin energiamarkkinoista kuin markkinoiden muutoksiin vaikuttavien tekijöiden käyttäytymisestä.

Profit repatriation of a Polish subsidiary from tax planning point of view of an international corporation

The main purpose of this study was to examine and compare the possibilities of profit repatriation from the point of view of tax planning of an international corporation, in such a case that a Finnish parent company has a subsidiary in Poland. The main research problem was divided into two sub research problems: 1) to examine concepts and principles of international taxation and tax planning from the point of view of international corporations and 2) to discuss the main features of Polish Companies-, Accounting- and Tax Act from the point of view a Finnish parent company. The research method of this study is mainly decision making, comparative analysis. In this study have been discussed the possibilities of international profit repatriation for supporting the decision making of the management of a Finnish parent company. In addition different repatriation possibilities have been compared. In this study has been noticed that a Finnish parent company can repatriate profit of its Polish subsidiary either directly as dividends or by using indirect methods such as interests, royalties, management fees and transfer pricing of goods. The total tax burden of dividends is heavier than the tax burden of indirect methods. It was also concluded that during the last years the Polish legislation has been renewed in order to prevent hidden dividend distribution. This has been done by implementing new rules of transfer pricing and thin capitalization.

Transfer pricing as a means for motivating management of profit centers

The main objective of this study is to analyze the role and potential of transfer pricing as a means of management control in large organizations. The special emphasis is on analyzing the potential of transfer pricing when we are motivating the profit center managers. The research approach is theoretical and literature reviews include studies about profit center organizations, performance measurement and analysis, incentive systems, transfer pricing techniques and agency theory. Based on the analysis, it seems that transfer pricing is a suitable tool for controlling, motivating and managing profit center managers. This requires that the performance measurement can be done fairly and transfer prices are set using fair assumptions. The motivating effects of transfer pricing can be enhanced if the reward system is connected to performance measurement system. In synthesis there is presented effects of transfer pricing to profit center managers behavior. There is also presented opinion about fair transfer pricing policy.

Ancillary services market and potential profit for generators in Russia

Reformation of electricity markets has initiated creation of ancillary services markets all over the world. The Russian electricity market reform is in transition period, that is why the problem of ancillary services market has just arisen. Since the model of market rules was created, ancillary services market became a topical question for generating companies. This master’s thesis is focused on the describing the possible ancillary services around the world and in Russia specifically. Moreover, the physical interpretation of ancillary services is defined. In addition, possibility of generation company to participate in the ancillary services market was considered. Calculations were made for primary frequency regulation service, where necessary level of price bids and payback period were evaluated.

Customer profitability measurement in a not-for-profit organization

The objective of this study was to find out the factors that affect customer profitability in the not-for-profit case company. The customer profitability was examined in two different segments of the customer base. The effects that price, cost and the amount of services provided have on the profit margin were studied. The distribution of profitability among the customers and the effect of certain characteristics, such as size of the customer measured in services purchased, on the profitability were analyzed. The theoretical framework was built around customer profitability and the use of customer profitability information in a not-for-profit organization. The present use of customer profitability information and the possibilities of using the results of this research in the case company were presented. Quantitative research methods were used in the empirical part of the study. The results indicate that the two customer segments have differences in their buying behaviors which affect the profitability and thus the measures taken to improve the profitability should be considered with the different characteristics of the customers in mind. Finally the limitations of the study were discussed as possible further research topics.

Determination of decomposition products of flotation collector chemicals using capillary electrophoresis

Vaahdotusta käytetään yleisesti erottamaan eri mineraaleja malmista. Tässä menetelmässä käytetään erityisiä pinta-aktiivisia aineita, joita kutsutaan kokoojakemikaaleiksi, muuntamaan halutut mineraalit hydrofobisiksi ja erottamaan ne hydrofiilisistä partikkeleista ilmakuplien avulla. Eräs tärkeimmistä kokoojakemikaalien ryhmistä on ksantaatit. Ksantaateilla on havaittu taipumusta hajota useiksi erilaisiksi hajoamistuotteiksi vaahdotusprosessin aikana. Näillä hajoamistuotteilla voi olla monia haitallisia vaikutuksia vaahdotuksen tuloksiin. Näiden tuotteiden tunnistaminen ja määrittäminen on tärkeää vaahdotusprosessin paremman ymmärtämisen kannalta. Työn kirjallisuusosassa vaahdotusprosessi, ksantaatit ja niiden yleisimmät hajoamistuotteet on esitelty, kuten myös käytetty analyysimenetelmä, kapillaarielektroforeesi. Työn kokeellisessa osassa etsittiin sopivaa erotusmenetelmää etyyliksantaatin, etyylitiokarbonaatin, etyyliperksantaatin ja etyyliksantyylitiosulfaatin erottamiseksi kapillaarilelektroforeesilla. Pääasiassa keskityttiin kahteen eri erotusmenetelmään. Ensimmäinen menetelmä kykeni erottamaan kaikki tutkitut tuotteet puhdasvesinäytteissä, ja toinen menetelmä oli sopiva näiden tuotteiden erottamiseen prosessivesinäytteissä. Jälkimmäistä menetelmää kokeiltiin käytännössä rikastamolla, jossa sillä kyettiin erottamaan isobutyyliksantaatti, isobutyylitiokarbonaatti, ja suurella todennäköisyydellä myös isobutyyliperksantaatti.

Modelling Long-Run Relationship between Spot and Future Prices of Different Commodities

The purpose of this study is to investigate whether there exists any kind of relationship between the spot and future prices of the different commodities or not. Commodities like cocoa, coffee, crude oil, gold, natural gas and silver are considered from January 3, 2000 to December 31, 2012. For this purpose, ADF test and KPSS test are used in testing the stationarity whereas Johansen Cointegration test is used in testing the long-run relationship. Johansen co-integration test exhibits that there at least 5 co-integrating pairs out of 6 except crude oil. Moreover, the result of Granger Causality supports the fact that if two or more than two time series tend to be co-integrated there exists either uni-directional or bi-directional relationship. However, our results reveled that although there exists the co-integration between the variable, one might not granger causes another .VAR model is also used to measure the proportion of effects. These findings will help the derivative market and arbitragers in developing the strategies to gain the maximum profit in the financial market.

Accounting for competition, governance and accountability during institutional change in not-for-profit and public sector organisations

Purpose The aim of this thesis1 is to analyse theoretically how institutionalisation of competitive tendering2, governance and budgetary policies cannot be taken for granted to lead to accountability among institutional actors3. The nature of an institutionalised management accounting policy, its relevance as a source of power in organisational decision making, and in negotiating inter-organisational relationships, are also analysed. Practical motivation The practical motivation of the thesis is to show how practitioners and policy makers can institutionalise changes which improve the power of management accounting and control systems4 as a mechanism of accountability among institutional actors and in negotiating relationships with other organisations. Theoretical motivation and conceptual approach The theoretical motivation of the thesis is to extend the institutional framework of management accounting change proposed by Burns and Scapens (2000) by using the theories of critical realism, communicative action, negotiated order and the framework of circuits of power. The Burns and Scapens framework needs further theorisation to analyse the relationship between the institutionalisation of management accounting and accountability; and the relevance of management accounting information in negotiating in inter-organisational relationships. Methodology and field studies Field research took place in public and not-for-profit health care organisations and a municipality in Finland from 2008 to 2013. Data were gathered by document analysis, interviews, participation in meetings and observations. Findings The findings are explained in four different essays that show that institutionalisation of competitive tendering, governance and budgetary policies cannot be taken for granted to lead to accountability among institutional actors. The ways by which institutional actors think and act can be influenced by other institutional mechanisms, such as inter-organisational circuits of power and intraorganisational governance policies, independent of the institutional change process. The relevance of institutionalised management accounting policies in negotiating relationships between two or more organisations depends on processes and contexts through which institutional actors use management accounting information as a tool of communication, mutual understanding and power. Research limitations / implications The theoretical framework used can be applied validly in other studies. The empirical findings cannot be generalised directly to other organisations than the organisations analysed. Practical implications Competitive tendering and budgetary policies can be institutionalised to shape actions of institutional actors within an organisation. To lead to accountability, practitioners and policy makers should implement governance policies that increase the use of management accounting information in institutional actors’ thinking, actions and responsibility for their actions. To reach a negotiated order between organisations, institutionalised management accounting policies should be used as one of the tools of communication aiming to reach mutual agreement among institutional actors.

Non-profit maximising organisations and the impact of privatisation, liberalisation, and public-sector reform

I denna avhandling analyserar jag både offentliga och privata företag och organisationer, inklusive universitet, särskilt när det existerar potentiell inre motivation. Jag behandlar både industriell produktion, inklusive infrastruktursektorer med vertikala relationer, och tjänstesektorn. Man tänker sig att ägandet kan påverka kostnadseffektiviteten dels genom olika storlek hos lönetillägg och andra förmåner för de anställda (eng. Internal Rent Capture), och dels via asymmetrisk information. Jag frågar dessutom om det finns andra faktorer än ägande och konkurrens som kan påverka prestandan hos kommersiella företag och ideella organisationer. Dessa frågeställningar aktualiseras av pågående reformer inom den offentliga sektorn, särskilt i samband med den så kallade nya offentliga förvaltningen (eng. New Public Management). Jag analyserar reformernas inverkan på hur bra en organisation fungerar och på den sociala välfärden. Analysen i denna avhandling är teoretisk, men resultaten är relaterade också till den empiriska litteraturen. Avhandlingen är uppdelad i del I och II. I del I sammanfattar jag avhandlingen och sätter den i ett sammanhang, medan del II består av fem redan publicerade essäer. De två första (I–II) är mera traditionella, i och med att de baserar sig på homo economicus (eng. the economic man), utan att beakta den inre motivationen. I essä I (publicerad 2008) bedömer vi fördelar och nackdelar av privatisering och avreglering innanför en sådan ram, men med en betoning också på icke återvinningsbara fasta kostnader och vertikala relationer. I essä II (publicerad 2012) fokuserar vi oss på vertikal separation, och konkurrensutsättning och privatisering i nätverksindustrier. I essäerna III–V vidgas perspektivet genom att införa potentiell inre motivation i en agentmodell. Analysen i essä III (publicerad 2014) tillämpas på offentligt ägande och privatisering. I essäerna IV och V (publicerade 2009 respektive 2013) utvidgas analysen till att även gälla kreativa branscher, särskilt arbete inom universiteten, där den inre motivationen hos de anställda kan tänkas vara avgörande. I dessa essäer tillämpas en analys som inbegriper ett intra-personellt spel inom ramen för en agentmodell med potentiell inre motivation. Vi analyserar sålunda avvägningen mellan ekonomiska incitament och inre motivation.