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“A FIELD STUDY ON ANALYSIS OF REVENUE MANAGEMENT AT

BESCOM, KANAKAPURA”

CHAPTER -1
INTRODUCTION

INTRODUCTION TO REVENUE MANAGEMENT

Revenue management started in the seventies with Rothstein (1971-1974) and little wood (1972) they
investigate the practice of revenue management in airlines and hotels. Revenue management has its
origin in the airline industry. The core of revenue management is to sell the right product to the right
customer at the right price to maximize expected revenue or profit.
Revenue management will be appropriate for all industries which have similar features of market
segment, different pricing demand fluctuation, limited capacity, and so on.

MEANING OF REVENUE MANAGEMENT

Revenue management is the submission of well-organized analytics which are the


Approximations purchaser behaviour at the micro-market levels and optimize the product availability
and price to maximize revenue growth. The primary aim of revenue management is to sell the right
product to the right customer at the right time for the right price. The core of the discipline is in
empathetic customers, observation of product value and accurately aligning product revenue
management prices, placement, and availability with each customer segment.

DEFINITION:

“Revenue management is the process of allocating the right inventory unit to the right
customer at the right time and for the right price. It guides the decision of how to allocate and
differentiated units to limited capacity and to available demand in a way to maximize profit”.

IN OTHER WORDS, REVENUE MANAGEMENT/YIELD MANAGEMENT:

Revenue management is also called yield management. Yield management is that the
method of understanding, antedating, and influencing consumer behaviour to maximize yield or take
advantage of hard and fast, perishable resources (such an airline seats or hotel room reservation or
advertising inventory). As an in-depth, inventory focused separation of revenue management; yield
management involves strategic control of inventory to sell it to the right customer at the right time for
the right price. This procedure can result in value discrimination, where a firm charges customer
consuming otherwise identical goods or services. Yield management is a huge revenue generator for
several major industries.

OBJECTIVES OF REVENUE MANAGEMENT

1. The basic objective is to increase their revenue and contribution by charging a high price.
2. Maximize the profit of firms.
3. Improve the effectiveness

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LEVERS OF REVENUE MANAGEMENT

1. Pricing of commodities:
The primary goals of a pricing tactic are to predict the value generated for the community for the
consumers and subsequently fixing rates to gain control of the value.

2. Inventory or stock:
When it is a question of regulating inventory, the most important issue for revenue management is to
ascertain the best possible method of assigning price and distributing capacity. Here then demand and
supply factor plays a key role.

3. Marketing:
Preferment of commodities always enables the business to sell their commodities at
increased quantities. They can do it by lowering the rates of their goods for the short term.
Through the valuation of consumer reaction, a balance can be struck between Gainfulness and
increment of quantity.

4. Channels:
The distribution channels are a major lever of revenue management. How effectively you handle them
distribution channels decides the amount of revenue you can generate. Most of the time, discounts are
offered for online shopping since online distribution channels come cheaper than offline distribution
channels. This also helps enhance the revenue of the business or company.

METHODS OF REVENUE MANAGEMENT:

1. Data collection:
This is undoubtedly the first step in managing your revenues. There should be an
organization for gathering data on rates, stock, demand, supply, and also consumer behaviour. In
accumulation, data about rates, competitors, and consumer behavior are procured, kept, and evaluated.

2. Market segmentation:
It is a principal activity needed to maximize your revenues from the market. This is done
with the help of market-oriented pricing and compilation of pertinent data.

3. Forecasting:
Forecasting or prediction of various factors such as demand of the consumer's availability of stock,
market trends and market share is an important step of this entire method. How business fares depend
significantly on the excellence of these predictions.

4. Optimization:
It is the technique that advises how a company needs to react to consumer behavior. It is frequently
regarded as the acme of the method of revenue management since it decides about assessing various
options on the techniques of selling commodities and identifying the target consumers.

5. Dynamic re-evaluation:
Re-evaluation is repetitively compulsory in areas like rates, commodities, and procedures for getting
the maximum revenue. This is essential for getting even with the dynamic market.
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BENEFITS OF REVENUE MANAGEMENT:


Gain competitive advantages:
The revenue management provides competitive advantages to the company.

1. Maximize revenue:
According to Robert Cross, the author of "revenue management: hardcore tactics fir market
domination" firms employing revenue management techniques have seen revenue increase between
3% and 7% without significant capital expenditure, resulting in a 50% to 100% increase in profit".

2. Maximize profits:
The scorecard, a revenue management periodical – instigating consistent pricing and revenue
management processes along with supporting decision support systems can lead to substantial
improvements in corporate profitability- often on the order of 1-2% of revenue or even more.

3. Maximize ROI:
When revenue management is effectively applied, ROI calculation becomes a no-brainer. With a
recognized track record in growing revenues applied directly to the bottom line, investment in revenue
management can be easily justified.

4. Use science not guesswork:


In an energetic pricing and demand environment, there is no room for the gut- feel and
subjective decision making. Companies implementing revenue management employ proven principles
of management science and information technology, including historical data analysis, accurate data
modelling, and statistical and mathematical optimization.

REVENUE MANAGEMENT AREAS:

Some of the revenue management areas such are:

➢ Airline
➢ Hotel industry
➢ Transportation
➢ Electricity supply
➢ Manufacturing goods.

1. Airlines:
Revenue management is a systematic theoretical foundation and the advanced technical method was
first created and widely used in the airline industry. The theory and application of revenue management
in the airline industry got a great success. American Airlines first developed and used a revenue
management system in the early 90s 20th century. Under the environment of loss in the airlines
transport industry, they created a record of revenue growth by 6% in a year.

➢ Maximum revenue earned by selling the right seats to the right customer at the right time.

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2. Hotel industry:
In the early 90s 20th century, the Marriott hotel in the US takes the lead in the hotel industry to the
introduced revenue management system. Then the hotel seat revenue increased by 7% in the same year.
With only a small change in the cost of expenses, such increased revenue almost entirely converted
into profit. Revenue management is a series of demand forecasting techniques used to determine the
price up or down and whether to accepts the booking request or not, to maximize the revenue.

3. Transportation:
Revenue management widely practiced in transportation in the objectives of maximization of the
revenue of a firm. That helps decides how much inventory (seats in buses or railway) to allocate to
different types of the market segment at what races.

4. Electricity supply:
The revenue management in the electricity industry is held by the preparation of a
conceptual model based on the formerly determined prerequisites. These prerequisites will be
evaluated and their relevance to the electricity industry will be correlated. Based on that a theoretical
model would be formulated and its feasibility analyzed.

5. Manufacturing goods:
Manufacturing companies have started reconnoitring innovative revenue management technologies to
improve their operations and ultimately their bottom lines. Revenue management models where clients
can be separated into different classes depending on their sensitivity to price, lead time, and service.

ADVANTAGE OF REVENUE MANAGEMENT

Yield management is defined as the system of understanding and antedating the


actions of customers to increase revenue and make the most out of company profit. Although there’s
classically approximately that each one business strives to do revenue management focuses totally on
the industry with certain types of resources such as the hotel industry or the airline industry.

The reimbursements of revenue management include a better ability to predict customer wants and
needs. The more active pricing strategy, a growth of available markets, and a stronger relationship
between company divisions.

1. Customer expectation:
Revenue management provides companies with a better understanding of what their customer in the
company’s product. The research elaborate with revenue management gives companies insight into the
specific wants, needs of their customers, and also enables the company to shape the product and its
presentation notes customers. For instance, hotel restraint working on revenue management might
determine that their customers are typically business travelers who need quick access to the online
altogether hotel rooms.

2. Competitive pricing:
Revenue management enables the company to create a competitive pricing strategy that will draw in
customers and give the company an edge over its competitors. In detail, revenue management is so
universal within certain industries that companies failing to implement revenue management strategies
are unable to continue competing effectively within the marketplace. For example, an airline might
complete research that shows customers to customers who would otherwise be willing to fly are
struggling with high prices and extra fees. As a result, the airline can boost its competitive advantages
by lowering prices on certain or even by baggage fees.

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3. Market segments:
Revenue management seeks to point out the corporate to fulfill extend of its market
segment and to introduce the company to a new market segment that is available. Companies that
usually focus on a certain market segment need to expand their focus to continue growing in the
industry. For instance, A hotel chain that focuses primarily on business travelers might realize that a
lot of its chain locations are in a destination that has become popular family vacation spots.

4. Company division:
Revenue management creates a strong awareness between the activities of those working on sales and
marketing and those on the front line of services. Sales and marketing representatives must develop a
program to reach out to the customer, but is the services representatives on the front line who are
responsible for carrying out these programs. Revenue management provides companies with the
opportunities to co-ordinate their division more closely and thus creates the most programs possible.

YIELD MANAGEMENT SYSTEM/ REVENUE MANAGEMENT:


Yield management system (also mentioned as a revenue management system classically used in service
industries that offer perishable goods, like hotel rooms or airline seats. Yield management was first
used by the airline industry (United and American) after the airline deregulation. Yield management
tries to leverage selling the entire available inventory and making the utmost profit possible. However,
it is not always possible to sell all of the seats at the same price.

The yield management system attempts to use historical data and specialized algorithms to determine
the optimal price to sell the inventory. These systems can work at real-time and change prices based
on demands.

REVENUE MANAGEMENT IN BESCOM:

BESCOM is a power supply company wholly owned by Govt. of Karnataka supplying


electricity in the 5 districts of Karnataka. The collection of revenue management and
maintenance of customer records happens to be a very important task for its different offices across the
area of its jurisdiction. In this context, BESCOM is utilizing the services of TERASOFT and ECIL in
two districts on BOO basis.

SERVICES OFFERED ARE:

➢ Provides necessary hand-held terminals to facilitate the billing at customer premises


➢ Provides necessary desktop, servers, ups, and printer to facilitate the running of revenue
management software.
➢ Provides qualified manpower to man the services required.
➢ Provide compulsory stationery for bill generation and report generation.
➢ Financial model
➢ BESCOM will make compensation based on consumer data being maintained and
processed per consumer every month. The entire infrastructure is made by TERASOFT
and ECIL as business partners.

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➢ The project shall be accomplished for 3 years.

BESCOM REVENUE MANAGEMENT:

BESCOM has embarked upon a project to automate the distribution network for monitoring, control,
and operation of the 11KV network within the Bangalore city. The implementation of distribution
automation in Bangalore city will enhance the reliability and quality of power supply.
The cost of the project is estimated at Rs.563 crores. The JICA (Japan International Cooperation
Agency) is extending financial assistance to a extend of Rs.417 crores for this project. The project is
scheduled to be complete in the financial year 2014-2015.

OBJECTIVES OF REVENUE MANAGEMENT IN BESCOM:

1. Provide assured quality and reliability of power supply.


2. To improve the quality of services management and customer satisfaction.
3. To avoid loss of time for fault location and restoration due to manual operation.
4. To improve the reliability power supply in Bangalore city thereby increase in energy
sales and hence revenue.
5. To integrate all IT (Information Technology) related activities on to a common
distribution management system.
6. To improve network control management.
7. Optimum power factor reduction in losses.
8. Enabling online energy audit

COMPANY PROFILE
INDUSTRY PROFILE:
KPTCL: Karnataka Power Transmission Corporation Limited In 1999, Karnataka set out on a
significant reform of the power sector. As an initial step, the Karnataka electricity board (KEB) was
dissolved and in its place, the Karnataka Power transmission corporation limited (KPTCL) was
incorporated. It was followed by the Constitution of the Karnataka electricity regulatory Commission
(KERC) in November 1999. In the following period of the reform process, the transmission and
distribution business managed by KPTCL were unbundled in June 2002. The distribution companies
were formed to disseminate power in Karnataka.

ELECTRICITY SUPPLY COMPANIES IN KARNATAKA

The electricity supply companies also referred to as ESCOMs, are liable for electric power distribution
in the state of Karnataka. Its origin was in the Karnataka electricity board. This distribution entity was
incorporated to supply efficient and reliable electrical power supply to the people of Karnataka state.

ESCOM has including 4electricity companies there are:

1. BESCOM: (BANGALORE ELECTRICITY SUPPLY COMPANY LIMITED) - has been entrusted


with the distribution of power to the district of Bangalore urban, Kolar, Tumkur, Ramanagara,
Chikkaballapura, Chitra Durga, and Davanagere.

2. MESCOM: (MANGALORE ELECTRICITY SUPPLY COMPANY LIMITED) - has been


entrusted with the distribution of power to the districts of Dakshina Kannada, Udupi, Chikkamagaluru,
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and Shivamogga.

3. HESCOM: (HUBLI ELECTRICITY SUPPLY COMPANY LIMITED) - has been entrusted with
the distribution of power to the districts of Dharwad, Gadga, Vijaya Pura, Bangalore, Uttara Kannada,
Haveri, and Belagavi.

4. GESCOM: (GULBARGA ELECTRICITY SUPPLY COMPANY LIMITED) - has been entrusted


with the distribution of power to the districts of Ballari, Bidar, Kalburgi, Koppala, Raichur, and Yadgir.

5. CESCOM: (CHAMUNDESHWARI ELECTRICITY SUPPLY COMPANY LIMITED) - has been


entrusted with the distribution of power to the districts of Mysuru, Chamarajanagar, Mandy, Hassan,
And Kodagu.

BESCOM- Bangalore Electricity Supply Company Limited is responsible for power distribution in
eight districts of Karnataka (Bangalore Urban, Bangalore rural, Chikkaballapura, Kolar, Davanagere,
and Ramanagara). BESCOM covers an area of 41.092 sq. Km. with a population of over 207 L. The
company has 4 operating Zones - Bangalore Metropolitan Area Zone (North), Bangalore Metropolitan
Area Zone (South), Bangalore Rural Area Zone, and Chitradurga Zone, 9 Circles, 32 Divisions, 147Sub
- divisions and 534Section Offices. Four new supply companies were formed to distribute power in
Karnataka. Bangalore Electricity Supply Company Limited (BESCOM) has appropriated the
obligation from KPTCL for the supply of electricity in 8district and originated its operations from 1st
June 2002.

BESCOM AT KANAKAPURA:

INTRODUCTION:

The power distribution company limited was started in August 2014. The company has 4
divisions and 12 subdivisions. It was bifurcated from ramanagara division 2014 onwards then it will
be continuing in Kanakapura division. It has presently 18625 numbers of transforms. Here sales are
64.4 million units and input energy are 67.8 Million units. BESCOM has 3941 2km HT lines, 5317
8km LT lines. Energy stored in the grid then distributed to divisions.

DIVISIONS OF BESCOM AT KANAKAPURA:

1. Kanakapura urban - ORM1, ORM 2, ORM 3


2. Kanakapura rural - Kodihalli, Hunasanahalli, Hukunda
3. Sathnur - Sathnur, Doddahalalli, Kabbalu
4. Harohalli - Harohalli, Jakkasandra, Maralavadi

DEPARTMENTS OF BESCOM AT KANAKAPURA:

1. Technical department
2. Account department
3. Operational and maintenance
4. Transport
5. Service station

HISTORY OF BESCOM:

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The Mysore State had the privileged and glorious position of building the primary major hydroelectric
producing Station for commercial operations at Shivanasamudra as early as 1902. The art at that point
was still in its infancy, even within the advanced countries. The longest cable line, at the very best
voltage within the world, was constructed to satisfy the facility's needs if mining operations at Kolar
Gold Fields. The generating capacity of the Shivanasamudra Power House gradually increased to 42
MW in stages. To meet the increasing demand for power, the Shimsha Generating Station with an
installed capacity of 17.2 MW, was commissioned within the year 1940. The power demand was ever
on the rise, for industries and rural electrification and additions to generating capacity became
imperative. The first Stage of 48 MW and 2nd stage of 72MW of the Mahatma Gandhi Hydroelectric
station was commissioned during 1948 and 1965, respectively. The State of Karnataka, with the
availability of cheap electrical power and other infrastructure facilities, was conducive for increased
tempo industrial activity. It became necessary to reinforce the power -generating capacity by
harnessing the whole potential of the Sharavathi valley. The primary unit of 89.1 MW was
commissioned in 1964 and completed in 1977. The demand for power swas a phenomenon increased
within the mid-sixties and onwards with the fixing of the many public sectors and private industries
within the state. As power generation within the state was entirely hooked into monsoon and was
subject to its vagaries, the government found a coal-based power station at Raichur.

The present installed capacity of the power station at Raichur is 1260 MW. To emphasize the energy
funds of the state, the Kalindi project with an installed capacity of 810MW at Nagahari Power House
and 100MW at Supa Dam Power House, with an energy potential of 4112Mkwh, where find out. The
transmission and distribution system within the state was under the control of the govt of Karnataka
(then Mysore) until the year 1957. Within the year 1957, MSEB was formed and therefore the private
distribution companies were amalgamated with Karnataka Electricity Board. Until the year 1986, KEB
was a profit-making association. However, within the succeeding years, like other State Electricity
Boards within the country, KEB also started incurring losses, mainly due to the increase in agricultural
consumption and due to the implementation of the socio-economic policies of the government. To

improve the performance of the power sector and in tune with the reforms initiated by the government
of Indi, the government of Karnataka came out with a general policy proposing fundamental and radical

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reforms within the power sector. Accordingly, an Act, namely the Karnataka Electricity Reforms Act
was passed by the Karnataka legislature. The reform has mandated major restructuring of the Karnataka
Electricity Board and its Corporatization. Karnataka Electricity board ended to exist and Karnataka
Power Transmission Corporation limited was Constitution from 1st August 1999.

DISTRICTS WHICH ARE SERVED BY BESCOM:


➢ Bangalore urban.
➢ Bangalore rural.
➢ Kolar.
➢ Tumkur.
➢ Chitradurga.
➢ Chikkaballapura.
➢ Ramanagara.
➢ Davangere

FINANCE DEPARTMENT:
Finance is the lifeblood of the industry. The same applies to BESCOM, much of the funds are self-
generated by the sale of power to BESCOM, rising of Equity capital, debenture capital,public Deposit
and also term loans from other financial institutions. The organization though being a government of
Karnataka enterprise does not rely on any of the funds/grants from the government treasury.

Chief Finance Manager who is under the direct control of Finance Director heads of the finance
department in BESCOM, Next in the order are senior Executive, Divisional Officers, and Account
Officers followed by senior Assistants.

The finance department is divided between wings or sections such as:


➢ Cash Section.
➢ Budget Section.
➢ Loan Section.
➢ Provident Fund Section.
➢ Bills Section.
➢ Establishment Section.
➢ Compilation Section.
➢ Internal Audit Section.
➢ Pay Roll Section.

CASH MANAGEMENT PROGRAM:


Online cash management is also being done BESCOM. It has helped to control the budgetary rebases
as well as flow funds from banks.

COMMERCIAL ACTIVITIES:
Gram Vidyut Prathinidh is selected to carry out the various activities related to the supply of electricity
in Gram Panchayat (GP) areas specially to improve rural revenue collection.

ENERGY AUDIT:
Energy audit has been accorded very high priority in the BESCOM Feeder-wise energy audit is being

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done for the first time more scientifically and comprehensively.

PROFIT &LOSSES:
A review of the performance of the units is being alone of the Aggregated Transmission and
Commercial losses basis. This is also being into consideration while reviewing the overall performance
of officials.

AUTOMATED METER READING:


AMR is being implemented over 10000 installations at the high end. State of the Art meter is installed
for this installation – it also enables surveillance of installations. This would result in better online
monitoring billing and critical analysis, HR is being eliminated. BESCOM is also one of the main holds
for prestigious “Bangalore one” on a similar model of ‘e-Seva’ in Hyderabad.

AUTOMATIC FINANCIAL ACCOUNTING PACKAGE:


The entire accounting and finance an activity are being streamed and more financial controls are being
introduced.

CHAPTER – 2
RESEARCH DESIGN

INTRODUCTION TO RESEARCH DESIGN:

Research design is a bigger plan to conduct a study. It is the framework or guide used for the planning,
implementation, and analysis of a study. It is a systematic plan of what is to be done, how it will be
done, and how the data will be analyzed. The research design provides an outline of how the research
will be carried out and the methods that will be used. It includes the metaphors of the research
approaches, dependent and independent variables, sampling design, and planning format for data
collection analysis and presentation.

MEANING OF RESEARCH DESIGN:

Research design is the preparation of circumstances for gathering and analysis of data in a manner that
aims to combine relevance to the research purpose with economy in procedure.

DEFINITION OF RESEARCH DESIGN:

According to Ker linger “Research design is the plan, structure, and strategy of investigation conceived
to obtain answers to research questions and to control variance”.

TITLE OF THE STUDY:

"A STUDY ON ANALYSIS OF REVENUE MANAGEMENT WITH SPECIAL


REFERENCE TO BESCOM AT KANAKAPURA"

REVIEW OF LITERATURE:

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1. Horngren (Horngern, Data, and Rajang) (2014):


It was created with changing traditional accounting education in the 1960's " From cost
accounting's overwhelming emphasis on accumulation and calculation of product costs to managerial
accounting, which explores the uses of costs for various purposes ". wrote Thomas Burns, a professor
at Ohio State University and chairman of the accounting Hall of Fame whenHorngren was named to
the Hall in 1990.

2. JEFFERY.MCGILL, GARRETT.VANRYZINRYZIN (2013)


This survey reviews the history of research on transportation revenue management (also known as
yield management). The development in estimating, overseeing, seat inventory control, and pricing, as
they relate to revenue management, and suggest future research directions. The survey including a
glossary of revenue management terminology and bibliography are of over 190 references.

3. GABRIEL BITRAN, RENE CALDENTEY (2012):


Pin this paper, we examine the research and results of active pricing policies and their relation to
revenue management. The revenue management problems expendable and non-renewable set of
resources satisfy stochastic price-sensitive demand processes over a finite period. In this class of
problems, the holder (or the seller) of this resource uses them to produce and offer a menu of final
products to the end customers. Within this context, we verbalize the stochastic control problem of
capacity that the seller faces. How to dynamically set the menu and the quality of products and their
corresponding prices to maximize the total revenue over the selling horizon?

4. LAWRENCE R. WEATHERFORD, SAMUEL ETO'O. BODILY (2012):


This broadside proposes the term consumable benefit revenue management to denote the field that
combines the areas of yield management, Overbooking, and pricing for perishable assets. After
summarizing the characteristics common to problems in this field, the paper discusses the objectives
and constraints faced by decision-makers. Then it offers an inclusive classification with 14 different
elements and reviews the research that has been done related to each element. Finally, it proposes some
important parts of future research that can help bridge the gap between theory and application.

5. RASHMI RAJAN DAS (2010):


It reveals that most of the power generation utilities of India are not practicing prudent
financing and investment decisions in convergent with global standards. Since the financial and
investment decisions are the most significant and delicate areas in the field of corporate financial
management, the present research study is undertaken to analyze the efficiency of the financial
performance of KPCL and its impact on the business and to identify the problems faced by them and
to suggest ways and means. The present study broadly focuses on revenue management and focusing
on stake holder's interest in the power sector.

6. SNOOP SINGH (2007):


In his study policy environment and regulatory reforms for private and foreign investment in
developing countries. A case of the Indian power sector undertakes a review of the policy and
regulatory development in the Indian power sector.

7. Rajiv Bhatt (2006):


Revealed the cost overrun happens due to delayed payment from client or contractor delay possession
on site inflationary increase in material rates, revised estimate.

8. MERC (2005):

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They started their guidelines for in-principle clearance of the proposed investment scheme. These
guidelines are followed by MSEDCL for infrastructure plan project the electricity Act 2003 has given
static electricity regulatory Commission wide-ranging power and flexibility to regulate the power
sector, the conclusion to the above-mentioned literature is that it supports the study to assess the
analysis of revenue management made by BESCOM.

STATEMENT OF THE PROBLEM:


The study has been undertaking to get depth knowledge about the analysis of revenue
management procedures followed by the financial intermediary, particularly BESCOM. The research
is about the difference between a year to year profit and loss, and risk in revenue analysis in BESCOM.
The research reveals the liquidity position of BESCOM that is to know where the BESCOM has liquid
assets to assets liabilities maturing within the manipulated period and also the concept of this on
profitability.

SCOPE OF THE STUDY:

The scope of the study in revenue management is highly significant for the successful
management of revenue earned by BESCOM. it is extended to how revenue managed at the time of
surplus or deficit position in the company.
The study of the risk helps the BESCOM to rectify the limitations and place further strategic to put
forth a better performance. The present study covers the area at Kanakapura .

OBJECTIVES:

➢ To understand to study the overall financial aspect of them BESCOM


➢ To examine the revenue-generating strategies of BESCOM
➢ To explore the opportunities available for generating and utilizing revenue
➢ To manage the revenue position by analyzing the surplus or deficit position of BESCOM
➢ To study and analyze the required steps to improve the revenue position of BESCOM.

AREA OF THE STUDY:

The study was carried in the branch office of BESCOM at Kanakapura.

OPERATIONAL DEFINITION:

MEANING:
Revenue management is an integrated continuous and systematic approach to maximize revenue.

DEFINITION:

According to KIMES- “Revenue management is the process of allocating the inventory


unit to the right customer at the right time and for the right price. It guides the decision of how to
allocate differentiated units to limited capacity and two available demands in a way to maximize profit
or revenue”.

RESEARCH METHODOLOGY:
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The methodology is a science and systematic way to solve research problems. A researcher has to
design is to methodology i.e., in addition to the knowledge of methods/techniques he has to apply the
methodology as well. The methodology differs from the problem. Research describes the various steps
that generally adopted by research in studying the research problem with the logic behind then data is
important reports of bescom.

SOURCES OF DATA COLLECTION:

1. Primary data
2. Secondary data

1. PRIMARY DATA:
Primary data has been collected through interacting with AGM, working staff in BESCOM at
Kanakapura.

2. SECONDARY DATA:
Secondary data has been collected through the annual report and annual accounts maintained by the
company.

PLAN OF ANALYSIS:
Plan of analysis means campaigns, ideas used in the analysis of data. Tables, charts,
diagrams are used to analyze and interpret the items of the balance sheet.

LIMITATIONS OF THE STUDY:

➢ The major limitation of this study is practically difficult


➢ The time available for the study was too less
➢ The study limited to the information provided by the company because of secrecy.
➢ The study is mainly concerned with the maximization of revenue in BESCOM.
➢ The study of however excluding the perception of the customer and other persons

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CHAPTER – 3
DATA ANALYSIS AND INTERPRETATION

INTRODUCTION OF ANALYSIS AND INTERPRETATION:

To complete this study properly. It is necessary to analyze the data collected to


test the hypothesis and answer the research questions. As already indicates in the preceding chapter,
data is interpreted in a description form. Analysis and interpretation are the processes of identifying
strengths and weaknesses a firm by the properly established relationship between two terms.

MEANING OF ANALYSIS:

It is a systematic examination and evaluation of knowledge or information, by breaking it into its


parts to uncover their inter-relationship. Opposite of synthesis or it refers to the proper arrangement
of data in the total figures are group into their direct or indirect parts.

MEANING OF INTERPRETATION:
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It refers to the comparison of various components and definition conclusion may be drawn about the
earning capacity efficiency, liquidity, solvency, trend, etc. Comparison is very essential for
meaningful interpretation.

ANALYSIS OF INTERPRETATION:

The program by which sense and meaning are made from the information gathered in
qualitative research and by which the emergent knowledge is applied to the client’s problems.
This data often takes the shape of records of conferences and interviews but isn’t limited to the
presence.

Percentage analysis

Table 1 : Table showing gender of respondents.

Particular Frequency Percentage

Male 24.5 49%

Female 25.5 51%

Total 50 100%

Analysis:
The above table shows that 49% of respondents is male and 51% of respondents is female.

Graph showing gender of respondents

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Interpretation:
It can be interpreted that 51% majority of the respondents is female. And 49% are respondents is male.

Table 2 : Table showing age of respondents

Particular Frequency Percentage


Below 20 12 24%
20-30 38 76%

30-40 - 0%
40-50 - 0%
Total 50 100%

Analysis:
The above table shows that 24% of respondents belong to the age group below 20 years, 76% of
respondents belong to the age group 20 years to 30 years.

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Graph showing age of respondents

Below 20 12 20-30 38 30-40 - 40-50 -

Interpretation:
It can be interpreted that 76% majority of the respondents fall between the age group of 20 years to 30
years, 24% are fall between below 20 years.

Table 3: Table showing occupational status of respondents

Particular Frequency Percentage

Student 35 70%

Employee 13 26%

Former 1 2%

Other 1 2%

Total 50 100%

Analysis:
The above table shows that 70% of respondents is students and 26% of respondents is employees and
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2% of respondents is former and 2% of respondents is other.

Graph showing occupational status of respondents

Student Employee Former Other

Interpretation:
It can be interpreted that majority of the respondents students, are 26% employees are know the bescom
revenue management.

Table 4: Table showing education of respondents

Particular Frequency Percentage


X standard& below 7.45 14.9%
UG 31.9 63.8%
PG 1.1 2.2%
Diploma / Technical 9.55 19.1%
Total 50 100%

Analysis:
The above table shows that 14.9% of respondents belong to the x standard below and 63.8% of

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respondents belong to the UG and 2.2% of respondents belong to the PG and 19.1% of respondents
belong to the diploma / Technical.

Chart showing education of respondents

35

30

25

20

15

10

0
X standard& below UG PG Diploma / Technical

Frequency Percentage

Interpretation:
It can be interpreted that majority of the respondents educational qualification is degree, 19.1% are
diploma / Technical and 14.9% are x standard below.

Table 5: Table showing locality of respondents

Particular Frequency Percentage

Rural 41 82%

Urban 8 16%

Semi urban 1 2%

Total 50 100

Analysis:

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“A FIELD STUDY ON ANALYSIS OF REVENUE MANAGEMENT AT
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The above table shows that 82% of respondents belong to the locality group Rural and 16% of
respondents belong to the locality group urban and 2% of respondents belong to the locality group semi
urban.

chart showing locality of respondents

45
40
35
30
25
20
15
10
5
0
Rural Urban Semi urban

Frequency Percentage

Interpretation:
It can be interpreted that 82% majority of the respondents is rural and 16% of respondents is urban.

Table 6: Table showing marital status of respondents

Particular Frequency Percentage

Married 6 12%

Unmarried 44 88%

Total 50 100%

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Analysis:
The above table shows that 50 members respondents marital status is 12% married and 88% of the
respondents unmarried.

Chart showing marital status of respondents

50

40

30

20

10

0
Frequency Percentage

Married Unmarried

Interpretation:
It can be interpreted that majority of the respondents marital status is unmarried 88% and only 12%
married.

Table 7: Table showing monthly income of respondents

Particular Frequency Percentage

Below 15000 30 60%

15000-35000 14 28%

35000-45000 3 6%

45000 above 3 6%

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Total 50 100%

Analysis:
The above table shows that 60% of the respondents monthly income below 15000, 28% of the
respondents monthly income Rs 15000-35000, 6% of the respondents monthly income Rs 35000-
45000, 6% of the respondents monthly income Rs 45000 above.

Chart showing monthly income of respondents

45000
above

35000-
45000

15000-
35000

Below
15000

0 5 10 15 20 25 30 35

Percentage Frequency

Interpretation:
It can be interpreted that majority of the respondents monthly income is rs below 15000 and 15000-
35000 28%.

Table 8: Table showing how much you save of respondents

Particular Frequency Percentage

Below 5% 27 54%

5%-10% 10 20%

10%-15% 7 14%

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15%-20% 6 12%

Total 50 100%

Analysis:
The above table shows that 54% of respondents belong to the below 5% save the money and 20% of
respondents belong to the 5%-10% save the money and 14% of respondents belong to the 10% -15%
save the money and 12% of respondents belong to the 15%-20% save the money.

chart showing how much you save of respondents

30

25

20

15

10

0
Below 5% 5%-10% 10%-15% 15%-20%

Frequency Percentage

Interpretation:
It can be interpreted that 54% majority of the respondents save below 5%, 20% of respondents save
5%-10%. 14% of respondents save 10%-15%, 12% of respondents save 15%-20%

Table 9: Table showing BESCOM is private or government

Particular Frequency Percentage

Private 9 18%

Government 41 82%

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Total 50 100%

Analysis:
The table above shows that 82% of the respondents promotes bescom is government and 18% of
respondents promotes bescom is private.

Chart showing BESCOM is private or government

Percentage

Frequency

0 10 20 30 40 50

Government Private

Interpretation:
It can be interpreted that 82% majority of the respondents promotes BESCOM is a government.

Table 10: Table showing are you familiar with bescom revenue management

Particular Frequency Percentage

Yes 19 38.8%

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“A FIELD STUDY ON ANALYSIS OF REVENUE MANAGEMENT AT
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No 17 34.7%

Little bit 9 18.4%

Maybe 4 8.2%

Total 50 100%

Analysis:
The above table shows that 38.8% of the respondents says are you familiar with bescom revenue
management yes, and 34.7% of respondents says No and 18.4% of respondents says little bit, 8.2% of
respondents says maybe.

Chart showing are you familiar with bescom revenue management

Interpretation:
It can be interpreted that majority of the 38.8% of respondents promotes yes are know familiar with
bescom revenue management.

Table 11: Table showing satisfied are you with the overall quality of the revenue
management services provided by BESCOM

Particular Frequency Percentage

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Highly satisfied 9 18%
Satisfied 37 74%
Highly dissatisfied 1 2%
Dissatisfied 3 6%
Total 50 100%

Analysis:
The above table shows that 18% of the respondents says bescom overall quality of the revenue
management services is highly satisfied and 74% of the respondents says it’s satisfied and 2% of
respondents says it’s highly dissatisfied and 6% of the respondents says it’s dissatisfied.

Graph showing satisfied are you with the overall quality of the revenue
management services provided by BESCOM

Interpretation:
It can be interpreted that majority of the 74% respondents says bescom overall quality of the revenue
management services is satisfied.

Table 12: Table showing How satisfied were you with the options and flexibility
provided for making payment

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Particular Frequency Percentage
Very satisfied 7 14%
Satisfied 38 76%
Neutral 1 2%
Dissatisfied 4 8%
Total 50 100%

Analysis:
The above table shows that 14% of the respondents says bescom options and flexibility provided for
marking payment is very satisfied, 76% of the respondents says its satisfied, 2% of the respondents
says it’s neutral and 8% of the respondents says its dissatisfied.

Chart showing how satisfied were you with the options and flexibility provided
for making payment

Interpretation:
It can be interpreted that majority of the76% respondents says bescom option and flexibility provided
for making payment is satisfied.

Table 13: Table showing how efficient and accurate were the billing and invoice
processes
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Particular Frequency Percentage


25% 22 44%
50% 19 38%
75% 3 6%
100% 6 12%

Total 50 100%

Analysis:
The above table shows that 44% of the respondents says bescom efficient and accurate were the billing
and invoice processes is 25% ok and 38% of the respondents says is 50% ok, 6% of the respondents
says is 75% ok, 12% of the respondents says is 100% ok.

Graph showing how efficient and accurate were the billing and invoice processes

Interpretation:
It can be interpreted that majority of the 44% respondents says bescom efficient and accurate were the
billing and invoice processes is 25% ok.

Table 14: Table showing how satisfied were you with the customer services and
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support provided by BESCOM

Particular Frequency Percentage

Very satisfied 12 24.5%

Satisfied 34 69.4%

Average 3 7%

Poor - 0%

Total 50 100

Analysis:
The above table shows that 24.5% of the respondents says customer services and support provided by
bescom is very satisfied and 69.4% of the respondents says its satisfied, 7% of the respondents says
it’s average.

Chart showing how satisfied were you with the customer services and support
provided by BESCOM

80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
12 34 3 -
Very satisfied Satisfied Average Poor

Percentage

Interpretation:
It can be interpreted that majority of the 69.4% respondents says customer services and support
provided by bescom is satisfied.

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Table 15: Table showing how easy was it to access and understand your
consumption and billing data

Particular Frequency Percentage


Very easy 8 16.3%

Easy 35 71.4%
Difficulty 4 6.2%
Little bit 3 6.1%

Total 50 100%

Analysis:
The above table shows that 16.3% of the respondents says bescom easy was it to access and understand
your consumption and billing data is very easy and 71.4% of the respondents says its easy, 6.2% of the
respondents says its difficulty, 6.1% of the respondents says it’s little bit.

Chart showing how easy was it to access and understand your consumption and
billing data

Little bit

Difficulty

Easy

Very easy

0 5 10 15 20 25 30 35 40

Percentage Frequency

Interpretation:
It can be interpreted that majority of the 71.4% respondents says bescom easy was it to access and
understand your consumption and billing data is easy.

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Table 16: table showing were any issues or concern regarding your billing or
consumption addressed to your satisfaction

Particular Frequency Percentage

Yes 41 83.3%

No 9 16.7%

Total 50 100%

Analysis:
The above table shows that 83.3% of the respondents says yes bescom issues or concern regarding your
billing or consumption addressed to your satisfaction and 16.7% of the respondents answer No.

Graph showing were any issues or concern regarding your billing or consumption
addressed to your satisfaction

Interpretation:
It can be interpreted that majority of the 83.3% respondents says yes bescom issues or concern
regarding your billing or consumption addressed to your satisfaction

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Table 17: Table showing how satisfied were you with the accuracy of the meter
readings

Particular Frequency Percentage


Highly satisfied 11 22%

Satisfied 33 66%
Average 5 10%
Dissatisfied 1 2%

Total 50

Analysis:
The above table shows that 22% of the respondents says bescom accuracy of the meter readings is
highly satisfied and 66% of the respondents says its satisfied, 10% of the respondents says its average,
only 2% says its dissatisfied.

Graph showing how satisfied were you with the accuracy of the meter readings

Highly satisfied Satisfied Average Dissatisfied

Interpretation:
It can be interpreted that majority of the 66% respondents says bescom accuracy of the meter readings
is satisfied.

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“A FIELD STUDY ON ANALYSIS OF REVENUE MANAGEMENT AT
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Table 18: Table showing how responsive was BESCOM to addressing any issues
or concerns you regarding you account

Particular Frequency Percentage


25% 9 18%
50% 36 72%
75% 3 6%
100% 2 4%
Total 50 100%

Analysis:
The above table shows that 18% of the respondents says responsive was bescom to addressing any
issues or concern you regarding you account is 25% ok and 72% of the respondents says its it’s 50%
ok, 6% of the respondents syas it’s 75% ok, only 4% of the respondents says it’s 100% ok.

Graph showing how responsive was BESCOM to addressing any issues or


concerns you regarding you account

4000%
3500%
3000%
2500%
2000%
1500%
1000%
500%
0%
1 2 3 4

Particular Frequency Percentage

Interpretation:
It can be interpreted that majority of the 72% respondents says responsive was bescom to addressing
any issues or concern you regarding you account is 50% ok.

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Table 19: Table showing how satisfied were you with the information and
communication provided by BESCOM retarding any service outages or
disruptions

Particular Frequency Percentage

Highly satisfied 7 14%

Satisfied 37 74%

Average 4 8%

Dissatisfied 2 4%

Total 50 100%

Analysis:
The above table shows that 14% of the respondents says information and communication provided by
bescom retarding any service outages or disruption is highly satisfied and 74% of the respondents says
it’s satisfied and 8% of the respondents says its average, 4% of the respondents says it’s dissatisfied.

Chart showing how satisfied were you with the information and communication
provided by BESCOM retarding any service outages or disruptions

Dissatisfied

Average

Satisfied

Highly satisfied

0 5 10 15 20 25 30 35 40

Frequency Percentage

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Interpretation:
It can be interpreted that majority of the 74% respondents says it is a satisfied.

Table 20: Table showing BESCOM revenue management main factor

Particular Frequency Percentage

Product 7 14.3%

Price 18 36.7%

Customer 19 38.8%

Place 6 10.2%

Total 50 100%

Analysis:
The above table shows that 14.3% of the respondents says bescom revenue management main factor
is a product and 36.7% of the respondents says it’s main factor price and 38.8% of the respondents says
its main factor customer and only 10% of the respondents says its main factor place.

Graph showing BESCOM revenue management main factor

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Interpretation:
It can be interpreted that majority of the 38.8% respondents says bescom main factor customer and
36.7% respondents says bescom main factor is price.

Table 21: Table showing are you know the total revenue of BESCOM

Particular Frequency Percentage

Yes 26 51%

No 24 49%

Total 50 100%

Analysis:
The above table shows that 51% of the respondents know the bescom revenue and 49% of the
respondents not know the bescom revenue.

Chart showing are you know the total revenue of BESCOM

60

50

40

30

20

10

0
Frequency Percentage

Yes No

Interpretation:

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“A FIELD STUDY ON ANALYSIS OF REVENUE MANAGEMENT AT
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It can be interpreted that majority of the 51% respondents know the bescom revenue management.

Table 22: Table showing BESCOM revenue management service is satisfied are
not satisfied

Particular Frequency Percentage


Satisfied 42 84%

Not satisfied 8 16%


Total 50 100%

Analysis:
The above table shows that 84% of the respondents satisfied with the bescom revenue management
and 16% of the respondents not satisfied with the bescom revenue management.

Graph showing BESCOM revenue management service is satisfied are not


satisfied

Interpretation:

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It can be interpreted that majority of the 84% respondents satisfied with the bescom revenue management.

Table 23: showing are you expecting new segment to develop from BESCOM

Particular Frequency Percentage

Yes 41 82%

No 9 18%

Total 50 100%

Analysis:
The above table shows that 82% of the respondents expecting the new segment to develop from
bescom, and 18% of the respondents no expect the any new development in the bescom

Graph showing are you expecting new segment to develop from BESCOM

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Interpretation:
It can be interpreted that majority of the 82% respondents expecting the new segment to develop from
bescom.

CHAPTER – 4
FINDINGS, SUGGESTIONS AND CONCLUSION
FINDINGS

• It is found that the majority 51% of respondents gender is female.


• It is found that the majority 76% of respondents belong to the age group 20-30 years.
• It is found that the majority 70% of respondents occupational status is students.
• It is found that the majority 63% of respondents education is degree.
• It is found that the majority 82% of respondents locality is rural.
• It is found that the majority 88% of respondents marital status is unmarried.
• It is found that the majority 60% of respondents monthly income is below 15000.
• It is found that the majority 54% of respondents save the money is below 5%.
• It is found that the majority 82% of respondents answer bescom is government.
• It is found that the majority 38.8% of respondents familiar with BESCOM.
• It is found that the majority 74% of respondents says overall quality of the revenue
management services provided by bescom satisfied.
• It is found that the majority 76% of respondents answer bescom options and flexibility
provided for making payment is satisfied,
• It is found that the majority 44% of respondents says bescom efficient and accuracy were the
billing and invoice processes is 25% ok.
• It is found that the majority 69.4% of respondents satisfied with the customer services and
support provide by BESCOM.
• It is found that the majority 71.4% of respondents easy to access and understand the
consumption and billing data.
• It is found that the majority 83.3% of respondents, yes issues or concern regarding your
billing or consumption addressed to your satisfaction.
• It is found that the majority 66% of respondents satisfied with the bescom accuracy of the
meter readings.
• It is found that the majority 72% of respondents is responsive was BESCOM to addressing
any issues or concerns you had regarding you account is 50% ok.
• It is found that the majority 74% of respondents satisfied with the information and
communication provided by bescom regarding any service outages or disruption.
• It is found that the majority 38.8% of respondents says revenue management main factor is
customer.
• It is found that the majority 51% of respondents is know the bescom total revenue.

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“A FIELD STUDY ON ANALYSIS OF REVENUE MANAGEMENT AT
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• It is found that the majority 84% of respondents satisfied with the bescom revenue
management.
• It is found that the majority 82% of respondents expecting the new segment to develop from
bescom.

SUGGESTIONS:

➢ The total revenue of bescom is increased from year to year. It should continue.
➢ The company should maximize the revenue from operational sources than the expenses.
➢ The company should Increase water supply from year to year.
➢ The commercial is increased to a year to year. It should increase the revenue level.
➢ A liquidator was helped to increase the revenue level through the collection.
➢ The complex also increases the revenue level to try to earn more than the previous one.
➢ The company can conduct the power saving awareness programs to minimize the wastage
of power.
➢ Increase the tariff rate for the high-tension sector then only the company can help
consistency in finance performance.
➢ Increase the revenue level in heating and motive power installation in village Panchayat
➢ Increase the revenue from BJ\KJ.
➢ By using more pump sets is increased power like this only the profit of the BESCOM will
be increased.
➢ By using the more domestic lighting and heating is increased power revenue will be
Increased
➢ Mills, poultry should be increased the level of collection.
➢ By using a temporary increase, the collection should be continued.
➢ Suggest minimizing the cost of an employee.
➢ Minimize the revenue deficit position in the company.
➢ Increased HT help to increase revenue.
➢ Increased LT helped to increase revenue.
➢ All the HT, LT increased year to year it helps to increase the revenue, and sometimes it
was decreased so try to increase to the collection compared to the demand.

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“A FIELD STUDY ON ANALYSIS OF REVENUE MANAGEMENT AT
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CONCLUSION:

“A STUDY ON ANALYSIS OF REVENUE MANAGEMENT AT BESCOM,


KANAKAPURA”

Now a day’s power is an important thing in human life, maximum industries in the
country are largely dependent on power. Power is one of the key contributing factors in
economic growth because the power has to be used properly and efficiently. BESCOM has taken
the responsibility of distributing power among consumers like commercial users, pump sets,
water supply, high tension, low tension, etc. BESCOM depends on other states for the power, if
the company starts to generate more power in Karnataka itself, then it leads to generating more
profits, else BESCOM will face losses in the future and consumer may face the power problem
in the state.
The study conducted in BESCOM has revealed the revenue generation sources, demand,
and collection of the company. It made me know the revenue generation performance of bescom
through different revenue sources and also the demand and collection were made in the company.
This study shows that the revenue will be increased by year to year through different HT sections
and LT sections.

From the project, we can learn that “A Study on analysis of revenue management” has
increased our knowledge about the analysis of revenue management at BESCOM. It has
highlighted the financial performance of bescom and identified the areas in which the company
needs improvement.

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“A FIELD STUDY ON ANALYSIS OF REVENUE MANAGEMENT AT
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BIBLIOGRAPHY:

WEBSITE:

1. www.BESCOM.org.com
2. www.google.com

ABBREVIATIONS:

1. KEB- Karnataka electricity board.


2. KPTCL- Karnataka Power Transmission Corporation Limited.
3. BJ- Bhagya Jyothi.
4. HT- High tension.
5. LT- Low tension.

REFERENCES:

➢ Definition of finance
➢ Definition of financial statement
➢ Definition of financial management
➢ Definition of management
➢ Definition of revenue management

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Questionnaire
1. Name

2. Gender
• Male
• Female
3. Age
• Below 20
• 20-30
• 30-40
• 40-50

4. Occupational status
• Student
• Employee
• Former
• Other

5. Education
• X standard& below
• UG
• PG
• Diploma / Technical

6. Locality
• Rural
• Urban
• Semi urban

7. Marital status
• Married
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• Un married

8. Monthly income
• Below 15000
• 15000-20000
• 20000-30000
• 30000-40000

9. How much you save


• Below 5%
• 5%-10%
• 10%-15%
• 15%-20%

10. BESCOM is private or government


• Private
• Government

11. Are you familiar with bescom revenue management


• Yes
• No
• Little bit
• Maybe

12. Satisfied are you with the over all quality of the revenue management services provided
by BESCOM
• Highly satisfied
• Satisfied
• Highly dissatisfied
• Satisfied

13. How satisfied were you with the options and flexibility provided for making payment.
• Very satisfied
• Satisfied
• Neutral
• Dissatisfied

14. How efficient and accurate were the billing and invoice processes.
• 25%
• 50%
• 75%
• 100%

15. How satisfied Were you with the customer service and support provided by BESCOM
• Very satisfied
• Satisfied
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• Average
• Poor

16. How easy was it to access and understand your consumption and billing data
• Very easy
• Easy
• Difficulty
• Little bit

17. Were any issues or concerns regarding your billing or consumption addressed to your
satisfaction
• Yes
• No

18. How satisfied were you with the accuracy of the meter readings
• Highly satisfied
• Satisfied
• Average
• Dissatisfied

19. How responsive was BESCOM to addressing any issues or concerns you had regarding
you account
• 25%
• 50%
• 75%
• 100%

20. How satisfied were you with the information and communication provided by BESCOM
regarding any services outages or disruption
• Highly satisfied
• Satisfied
• Average
• Dissatisfied

21. Are you know the total revenue of BESCOM


• Yes
• No

22. BESCOM revenue management service is satisfied or not satisfied


• Satisfied
• Not satisfied

23. Are you expecting new segments to develop from BESCOM


• Yes
• No

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24. BESCOM revenue management main factor
• Product
• Price
• Customer
• Place

25. Is there any feedback you would like to provide to improve the quality of BESCOM
revenue management

RCK Page 46

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