Hassan Sherwani ROLE OF SALES AND MARKETING IN ... - Oulu

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60 Although there is a due consensus regarding environmental impacts yet power plants burden environment as flue gas emission, dust, noise, cooling, ash and other waste. For this reason, a programme is developed to reduce these environmental hazards. The main targets are improved air quality, reduced dust problem at power plant, development of storage and handling of chemicals and oil, increased environmental awareness, increased safety, introduction of an energy efficiency system (Sutinen, 2013). To achieve these targets, there is a serious environmental investment in the area of expansion of the ash discharge hall, modernization of chemical reception area, expansion of fuel reception area and pooling of oil tank filling area. Other main challenges for energy market in Finland are services and pricing for energy. Coming to business side, Oulun Sähkömyynti Oy plays an integral role as it is specialized in electricity trading and is responsible for electricity marketing and sales business of its associated companies at Oulun Energia Group. The company was established in 2001 and since then it is focused on highly esteemed customer relationship, efficient operations and local knowledge. The company offers diverse energy services and products for households and enterprises. The company has more than 139,000 customers and has a motive of producing northern energy at a low cost, in a reliable and environment-friendly way. As discussed earlier, the northern energy is generated through bioenergy and renewable energy sources i.e peat, wood, water and wind therefore, it not only satisfies customer needs but also the generation methods are environment friendly. Oulun Sähkömyynti has a quality system complying with ISO 9001/2000 standard operations which include energy procurement, marketing and selling of electricity and related services whereas Oulun Sähkömyynti is committed to the environmental standard ISO 14001 (Sutinen, 2013). As far as services are concerned, they are distributed for home services, corporate services, online services, customer services and billing services. For domestic services, electricity is produced from water and wind to fulfill the energy need for household, summer cottage and sometimes for smaller companies. The home use of electricity is regular however; the electricity needs for different companies may vary to great extent. Hence, it is needed to have tailor-made electricity contract (corporate services) to fulfill
61 company’s individual needs irrespective of its size and location. The most important factor when choosing the electricity supplier is the level of expertise offered. For this reason, company maintains its expertise with constant training and extensive cooperation networks. For online service, customers can manage their affairs at their convenient time in a flexible way. They can examine their bills, report meter readings, report change of address, update contact details or give some feedback. Customer services include electricity bills, electricity contracts and related debt collection issues through customer service channels such as telephone, e-mail, website or online services whereas billing services contain information electricity consumption. According to Marn and Rosiello (1992), the most effective way for an organization is to realize the profit maximization by keeping its price right against the sales. The market price of electricity fluctuates from hour to hour and from day to day. The exchange price of electricity is determined in terms of supply and demand. The price level is determined on Nordic electricity Nord pool (Tuomi & Lehto, 2013). Main factors affecting the price are emission trading, Nordic water supply situation, Central European markets and price of fuel. Emission trading is an effective concept which means that price of emission allowances has an impact on price of electricity. The most important factor is the change in production cost of coal fired condensate based electricity. EU-wide trade on emission allowances is divided into separate phases. The first phase ended at 2007. The new EU emission trading has started in 2008 where number of emission quotas is reduced which has caused price of allowances to rise. Regarding Nordic water supply situation, 50% of electricity used in Nordic countries is produced by hydropower (EMCC Report, 2013). So, the hydrological balance (water supply level) may have a significant role to play in price expectation. Changes in hydropower situations have a particular impact on the prices of energy market. The need for electricity in Central European market is expected to grow and there is a good chance of electricity export from Nordic countries to satisfy that need. In addition, Central European markets and Nordic countries are well connected through transmission connections in order to strength the relation and to level the prices. On the other hand, Nordic electricity market would depend on German market and thereby the effects of Central European price level will also be seen in Nordic domestic market. This gives a holistic view of inter dependence of Central
Page 1 and 2:
OULU BUSINESS SCHOOL Hassan Sherwan
Page 3 and 4:
3 CONTENTS Abstract Contents Figure
Page 5 and 6:
5 Figures Figure 1: The scope of th
Page 7 and 8:
7 1 INTRODUCTION 1.1 Introduction a
Page 9 and 10: 9 Electricity industry used to be c
Page 11 and 12: 11 Monopoly: A market with a single
Page 13 and 14: 13 2 RESEARCH CONTEXT This chapter
Page 15 and 16: 15 produced but, resources to gener
Page 17 and 18: 17 through bioenergy largely in the
Page 19 and 20: 19 framework. There is a need to re
Page 21 and 22: 21 the companies make themselves en
Page 23 and 24: 23 Monopoly Traditional Model Value
Page 25 and 26: 25 once a company at local market a
Page 27 and 28: 27 It is vital to notice that these
Page 29 and 30: 29 In the global arena, companies m
Page 31 and 32: 31 known as Uppsala Model and is wi
Page 33 and 34: 33 vital part so the parties must a
Page 35 and 36: 35 provides to the company, in the
Page 37 and 38: 37 way of achieving this goal is to
Page 39 and 40: 39 Figure 7: The Emerging Concept o
Page 41 and 42: 41 who actually creates values and
Page 43 and 44: 43 value of the organization in its
Page 45 and 46: 45 being an extension to resource b
Page 47 and 48: 47 knowledge management process is
Page 49 and 50: 49 widely agreed on the negative ef
Page 51 and 52: 51 need to be coordinated and consi
Page 53 and 54: 53 responsibilities, and of the int
Page 55 and 56: 55 is equally important to manage i
Page 57 and 58: 57 All these four stages are follow
Page 59: 59 5 ANALYSIS As there was a brief
Page 63 and 64: 63 In other words, the market is fr
Page 65 and 66: 65 to seek more control in their en
Page 67 and 68: 67 themselves, who may be capable o
Page 69 and 70: 69 to enhance innovation (Pomeda &
Page 71 and 72: 71 Marketing is responsible for dev
Page 73 and 74: 73 Customer satisfaction is conside
Page 75 and 76: 75 clear picture of the role and co
Page 77 and 78: 77 more and more companies operatin
Page 79 and 80: 79 What level of integration betwee
Page 81 and 82: 81 There is a good opportunity to i
Page 83 and 84: 83 internationalization in Finnish
Page 85 and 86: 85 chaos within the company and man
Page 87 and 88: 87 In this thesis work, though the
Page 89 and 90: 89 described by Valocchi et al. (20
Page 91 and 92: 91 Cavusgil, S. T. (1980). On the I
Page 93 and 94: 93 Henry, A. (2008). Understanding
Page 95 and 96: 95 Metaxiotis K, Ergazakis K and Ps
Page 97 and 98: 97 Tykesson, D. and Alserud, M(2011
Page 99 and 100: 99 APPENDICES Interview Questions:
Page 101: 101 Are you familiar with va
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Hassan Sherwani ROLE OF SALES AND MARKETING IN ... - Oulu

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