Hazard Risk Management in Large Nordic Companies' Operations in Russia

The objective of this research was to describe how Nordic companies manage hazard risks in their operations in Russia and how the local business environment is considered to affect the hazard risks. Research methods used in this research were literature review and expert interviews. Twelve Nordic industrial companies operating in different fields of industry were interviewed. Large Nordic companies typically guide risk management centralized from the parent company on behalf of the whole company group and the risk management standards and policies are integrated in all subsidiaries. Parent companies typically control hazard risk management in Russia by regular risk management reporting, auditing the Russian sites and by training local managers and employees to risk management work. Many companies have experienced several losses in the first years of operating in Russia before the risk management policies have been implemented in Russian subsidiaries. The companies have learned to take local characteristics better into account by experience and most companies are quite satisfied with their current risk management standards in Russia. The interviews indicate that companies experience especially the poor quality of infrastructure, some features in Russian organizational culture and high level of criminality to increase hazard risks in Russia. However, understanding these features and risks in the business environment makes the management of these risks possible. Risks related to infrastructure can be managed in advance by decreasing dependencies of infrastructure and considering the infrastructure quality already when planning the business operations. Also good local network is often considered critical in order to overcome the complications related to infrastructure. Russian personnel has typically different attitude towards risk management than Nordic personnel and neglecting safety and maintenance and concealing losses is more typical in Russia. By training and guiding the local personnel risk management and safety work and desired ways of actions these risks can be decreased. Criminality risks are often managed to certain extent by investing in security, increasing supervising and paying attention to reliability of the employees and other interest groups of the company.

SOCIAL MEDIA IN INTERNATIONAL BRAND COMMUNICATION OF SMES - A multiple case study of small Finnish design-intensive companies

Social media is a rather new phenomenon which has revolutionised the world of online communication. However, academic research on how companies can benefit from social media is lacking. The research objective of this thesis was to examine the use of social media in international brand communication of small Finnish design-intensive companies. Therefore, this research contributes also to the research gap in SME branding. The focus was on communication targeted at consumers. The research was carried out as a mixed methods research employing the questionnaire and multiple case study methods. The questionnaire was used to gather preliminary information on Finnish design-intensive companies and to provide an eligible list of companies for deeper examination. Then, four case companies were studied in more depth. The empirical evidence of the case companies was mainly gathered through theme interviews. The results of the questionnaire shed light on the internationalisation of small Finnish designintensive companies. On average, the companies had internationalised rather quickly after they had been founded. However, the share of exports was rather low in most of the companies. The results revealed also that social media was already used widely in the exporting companies and the use can be expected to grow in future. The findings of the multiple case study suggest that branding activities in small Finnish designintensive companies are constrained by limited resources and skills. In addition, the branding activities are strongly guided by the vision and values of the entrepreneur(s) rather than extensive marketing research. The brand structure was simple in all case companies and they aimed at having a standardised brand image across markets. However, all case companies had faced a need for some adaptation of their international brand communication. Internationally important brand communication channels were international fairs, the internet, word-of-mouth and social media. Social media offered a cost-effective brand communication channel for the case companies. It was used for various purposes, such as creating brand awareness and affecting how the brand is perceived. The entrepreneurs found the use of social media to be rather easy and the case companies had not faced any major challenges. However, the companies had recognised that communication in social media requires consistency and planning. The planning was rather informal and stayed on a general level. Overall, the utilisation of social media in the case companies was limited by a lack of resources. It seemed to affect especially the follow-up of brand communication in social media which stayed rather superficial.

Future trends of Finnish cement based construction

The construction material sector, as a capital intensive industry, is highly vulnerable to rapid fluctuations in the economic cycles. In Finland this was witnessed especially during the late 2000s, as in 2007 and 2008 the demand for several construction materials exceeded their supply and right after this, in 2009 the demand collapsed fast as a result of an international recession. These factors brought about the need to study the future trends of the market place of the commissioning company, Finnsementti Oy. As reliable short term market forecasts for the sector are difficult to compose, the study concentrates primarily in examining and identifying the trends that are likely to affect the Finnish cement industry, and as an extension, the concrete industry in a frame of 10 to 15 years. The study’s scope comprehends also the examination of the domestic construction sector, as it represents the end user industry of both cement and concrete. These motives for the study produce the research problem, which is to conduct a trend analysis for cement based building in the Finnish market area in the 2020s. The theoretical frame for composing a trend analysis in the case of this study is twofold. This is due to the fact that both, the macro and micro environments of the examined industries are studied. The main methods used are the PESTE-model (macro) and Porter’s five forces model (micro). The study applies a qualitative approach and the data is gathered by interviewing a group of experts from the cement, concrete and construction industries. The result of the paper is an overall trend analysis for the Finnish cement based building sector, which is based on ‘sub trend analyses’ concerning four identified sub-sectors of the Finnish construction industry. The results are a combination of findings from these sub-sectors and the analyzed data that deals with the studied sector’s macro and micro environment. The conclusions provide an overall picture of the examined sectors’ potential future as a whole and by defined sub-sectors of the construction industry. The recognition of future trends in different areas of the construction industry can be applied as a means for an industry actor’s decision making and in estimating the types of construction that are likely to grow or decline. Finally, based on the analyzed data and conclusions, the commissioning company is provided with a brief SWOT analysis, that provides additional tools for decision making and planning processes regarding the future.

THE IMPACT OF GUANXI TO MULTINATIONAL COMPANIES BUSINESS PERFORMACE, CORPORATE REPUTATION, NEGOTIATIONS AND MANAGEMENT IN CHINA

The modern business development of China began during 1978 and during the last decades Chinese have created one of the most dynamic and strongest economies in the world. China is now second largest trading power calculated in dollars. The special characteristic of this economic development is that it is not copy of any existing economy, instead the developments have been strongly influenced by the Chinese cultural characteristics. One cultural characteristic, guanxi, which is a “network of services and counter- services” is argued to be major component of successful business in China where these changes of services happen between people but also between companies. Obtaining introductions and the guanxi when doing business in China will give attentive audience and security for companies business. Despite the evidenced importance of guanxi, China´s business environment is rapidly changing towards Western economies, which might then reduce the importance of guanxi. Therefore the current impact of guanxi is a important topic to study. The main purpose of this study is to explore the impact of guanxi for Western big and small sized multinational companies´ business processes when doing business in China. This study looks What is the impact of guanxi in contemporary Chinese business environment for foreign companies doing business in China. Sub-questions in this research focus on what is the impact of guanxi on corporate reputation, management and negotiations. Findings present a mixed view where the importance of guanxi is not anymore critical, especially among younger people in the cities, however guanxi was clearly important outside the cities and when dealing with government officials. Efficient use of guanxi can be extremely profitable especially during early stages of business operations and guanxi plays role when bargaining prices and ensuring product quality from the factories. Therefore guanxi should be considered as essential element for successful business in China.

Ydinvoimalaitoksen rakentamisen aikainen viranomaistoiminta ja -vaatimukset

Tässä diplomityössä on käsitelty ydinvoimalaitoksen rakentamisprosessin aikaista viran-omaistoimintaa, viranomaisten vaatimuksia sekä rakentamiseen liittyvää riskienhallintaa julkisesti saatavissa olevan materiaalin pohjalta. Ensin on käyty läpi johdannon ja tavoitteiden lisäksi ydinvoiman historiaa ja nykyhetkeä Suomessa. Tämän jälkeen työssä on käsitelty riskienhallintaa sekä siihen liittyvää yleistä teoriaa. Teoria toimii lisätukena viranomaisvaatimusten tarkastelussa sekä niiden toimien ymmärtämisessä. Ennen viranomaisvaatimuksia on tarkasteltu kuitenkin itse viranomaisia, niiden välisiä kytköksiä sekä sitä, mitkä eri viranomaiset vaikuttavat ydinvoimalaitoksen rakentamiseen. Tässä osiossa on tarkasteltu myös politiikan vaikutusta viranomaistoimintaan. Viranomaisten toimintaa ja vaatimuksia käsittelevässä osiossa on käyty läpi yleisesti ydinvoimalaitokseen liittyviin toimituksiin kuuluvat vaatimukset sekä yksityiskohtaisempia vaatimuksia aihealueittain. Tässä osiossa on myös käsitelty esimerkkejä Olkiluoto 3 –projektissa tehdyistä havainnoista ja toteutuneista riskeistä. Tämän jälkeen työssä on tehty tarvittavat johtopäätökset tutkimuskysymyksiin läpikäydyn materiaalin pohjalta. Johtopäätöksissä on myös käsitelty ydinvoimalaitokseen liittyvään toimitukseen sisältyviä riskejä sekä niiden hallintaa. Viranomaistyöstä korostuivat läpikäydyssä materiaalissa erityisesti suomalaisen viranomaistoiminnan tinkimättömyys ja korkea vaatimustaso. Tärkeimmiksi seikoiksi työssä nousivat ydinvoimalaitoksen rakentamiseen olennaisena osana kuuluva korkea turvallisuuskulttuuri sekä sen seurauksena yritysten toimivat johtamisjärjestelmät. Lisäksi hyvin tehty esi- ja perussuunnittelu helpottavat projektin eri osa-alueita. Huomioimalla nämä kolme seikkaa pystytään ydinvoimalaitoksen rakentamisen ja käytön aikaisia riskejä hallitsemaan tehokkaimmalla tavalla.

Disruptive innovations at the bottom of the pyramid : can they impact the sustainability of today´s top companies?

Due to the different dynamics required for organizations to serve the emerging market which contains billions of people at the bottom of the pyramid (BOP) coupled with the increasing desire for organizations to grow and be more multinational, organizations need to continually innovate. However, the tendency for large and established companies to ignore the BOP market and rather focus on existing markets, gives an indication of the existence of a vulnerability that potentially disruptive innovations from the BOP will not be recognized in good time for a counter measure. This can be deduced from the fact that good management practice advocates that managers should learn and listen to their customers. Therefore majority of the large existing companies continually focus on their main customer/market with sustaining innovations which leaves aspiring new entrants with an underserved BOP market to experiment with. With the aid of research interviews and an agent-based model (ABM) simulation, this thesis examines the attributes of BOP innovations that can qualify them as disruptive and the possibilities of tangible disruptive innovations arising from the bottom of the pyramid and their underlying drivers. The thesis Furthermore, examines the associated impact of such innovations on the future sustainability of established large companies that are operating in the developed world, particularly those with a primary focus which is targeted towards the market at the top of the pyramid (TOP). Additionally, with the use of a scenario planning model, the research provides an evaluation of the possible evolution and potential sustainability impacts that could emerge, from the interplay of innovations at the two pyramidal market levels and the chosen market focus of organizations – TOP or BOP. Using four scenario quadrants, the thesis demonstrates the resulting possibilities from the interaction between the rate of innovations and the segment focused on by organizations with disruptive era characterizing the paradigm shift quadrant. Furthermore, a mathematical model and two theoretical propositions are developed for further research. As recommendations, the thesis also extends the ambidextrous organizational theory, business model innovation and portfolio diversification as plausible recommendations to limit a catastrophic impact, resulting from disruptive innovations.

Measuring the performance of corporate events : an empirical study of measuring practices in Finnish companies

Corporate events as an effective part of marketing communications strategy seem to be underestimated in Finnish companies. In the rest of the Europe and the USA, investments in events are increasing, and their share of the marketing budget is significant. The growth of the industry may be explained by the numerous advantages and opportunities that events provide for attendees, such as face-to-face marketing, enhancing corporate image, building relationships, increasing sales, and gathering information. In order to maximize these benefits and return on investment, specific measurement strategies are required, yet there seems to exist a lack of understanding of how event performance should be perceived or evaluated. To address this research gap, this research attempts to describe the perceptions of and strategies for evaluating corporate event performance in the Finnish events industry. First, corporate events are discussed in terms of definitions and characteristics, typologies, and their role in marketing communications. Second, different theories on evaluating corporate event performance are presented and analyzed. Third, a conceptual model is presented based on the literature review, which serves as a basis for the empirical research conducted as an online questionnaire. The empirical findings are to a great extent in line with the existing literature, suggesting that there remains a lack of understanding corporate event performance evaluation, and challenges arise in determining appropriate measurement procedures for it. Setting clear objectives for events is a significant aspect of the evaluation process, since the outcomes of events are usually evaluated against the preset objectives. The respondent companies utilize many of the individual techniques that were recognized in theory, such as calculating the number of sales leads and delegates. However, some of the measurement tools may require further investments and resources, thus restricting their application especially in smaller companies. In addition, there seems to be a lack of knowledge of the most appropriate methods in different contexts, which take into account the characteristics of the organizing party as well as the size and nature of the event. The lack of inhouse expertise enhances the need for third-party service-providers in solving problems of corporate event measurement.

Puuelementtien teollisen tuotannon kehittäminen

Tavoitteena tässä diplomityössä oli selvittää puuelementtien teollisen tuotannon mahdollisuuksia ja kehityksen tilaa. Millaiset valmiudet puuelementtien valmistajilla on valmistaa rakennuttajien ja rakentajien edellyttämiä suur- ja tilaelementtejä puukerrostaloja varten, millaista tuotekehitystä ja tuotantoinvestointeja tarvitaan kaiken tämän mahdollistamiseksi, mikä on yritysten halukkuus ja resurssit investoida uuteen teknologiaan sekä kuinka voidaan parantaa tuotannon tehokkuutta. Ensin diplomityössä luotiin katsaus puukerrostalorakentamisen historiaan, nykytilaan, kerrostalojärjestelmiin, palomääräyksiin ja ruotsalaiseen puuelementtien valmistamisen kehityksen tilaan. Puuelementtien valmistukseen tutustumisen jälkeen laadittiin kyselylomake tutkimusta varten, joka lähettiin 64:lle puuelementtien valmistajalle. Tutkimukseen vastasi kaikkiaan 20 puuelementtien valmistajaa. Vastausprosentiksi muodostui 31 %. Tutkimuksen perusteella voidaan todeta puuelementtien valmistajien olevan pieniä ja keskisuuria pk-yrityksiä jotka valmistavat puuelementtejä pääasiassa pientaloteollisuudelle. Suomalaisten valmistajien automaation taso ja tekninen osaaminen ei juuri eroa ruotsalaisesta puuelementtien valmistuksesta. Suomessa puuelementtien valmistus puukerrostaloja varten ei ole vielä vakiintunutta samalla tavalla kuten Ruotsissa. Suomessa Puukerrostalokohteita lähtee liikkeelle tällä hetkellä vielä aivan liian vähän. Kilpailukyky ja tehokkuus tulevat kehittymään nopeasti kun teollinen valmistus saadaan riittävän korkealle tasolle.

Marketers’ perception of the implementation of social media marketing: Evidence from large Finnish companies’ marketing campaigns

Social media is a multidimensional marketing and communications channel which can support and enhance a business’ reputation, sales and even longevity. Social media as a business tool encourages an interaction between customers and companies which gives opportunities for a company to better understand their customers, to target them more effectively and to collaborate and create dialogues with them which is not possible through traditional media channels. The aim of a social media strategy is to increase brand awareness, image, loyalty and recognition. The peer networks that social media creates allows a company to disseminate information through loyal customers to new and prospective customers to ultimately increase reach. The purpose of the study is to understand the marketer’s perspective of social media marketing use and how it is currently utilized in marketing and communications activities in Finland. Three companies were interviewed covering fourteen different implementations of social media marketing campaigns. These were then analysed to ascertain the utilization methods and experience gained on recent campaigns in the Finnish market The utilization of social media marketing was analysed using the methods of thematic analysis and inductive and abductive reasoning. Elements and themes were drawn out of the separate interviews to create a framework with which to explore, evaluate and match theories that define social media usage by companies. It became clear from all of the interviews that social media as a tool is most effective when it captures the viewer’s interest through rich and entertaining content. This directed the theoretical research towards Engagement Theory and Content Marketing which look to emphasize the importance of communities, collaboration, interaction, and peer-sharing as the key drivers of a social media marketing campaign.

Capital Structure and Firm Growth: R&D Intensive Companies

The purpose of this study is to examine and explain firm`s growth impact on capital structure decision-making in research and development intensive companies. Many studies claim that R&D has a pivotal impact on capital structure decisions, but corporate finance theories have often failed to explain these observed patterns. As sales growth is an important concept and objective for R&D firms, it is logical to assume that it plays a vital role in capital structure decisions. This study applies nomothetic research approach. The theoretical part employs a formal conceptual analysis in order to develop the propositions that are tested with empirical data. The empirical part consists of the analysis of three companies; the data is obtained from the annual reports over the period 2003 – 2008. The companies operate in IT- or ICT-industry and are publicly listed. The method for analyzing the case data is based on the financial indicators, which are obtained from the financials of the case companies. These economic indicators describe the capital structure and the financial decision-making of the firms. The method relates to the quantitative studies. Yet, this study extends the analysis beyond the indicators. Specifically, this study addresses the question of what is behind the economic indicators, therefore combining aspects of quantitative and qualitative analysis. The firms examined in this study seem to prefer internal finance during growth. However, external finance seems to be a catalyst for sales growth. Firms strongly prefer equity financing. In growth, the use of equity per capital either increases or stays in a constant level. Over the period 2003 – 2008, the firms were often associated to equity related transactions and short-term debt. Short-term debt was used as a substitute of long-term debt and equity. The case firms also adjusted their capital structure – these adjustments were carried out with short-term debt or equity. The case data also provides implications for the growth signal theory that was developed in this study. Based on the econometric indicators, arguments can be made that equity investors are `attracted` to growing R&D firms. This is because growth helps investors perceive the true type of firm. The findings of this study are best explained by the trade-off theory and the pecking order theory. These corporate finance theories are considered as mainstream. Little support can be found to the implications of the signaling theory and market timing theory.

DEVELOPING SOCIAL CAPITAL WITHIN COMPANIES THROUGH ENTERPRISE 2.0

Whereas external social media has been studied, hyped and integrated into companies´ strategies, an insignificant concentration has been put on internal social solutions, which companies provide increasingly to their personnel. An enterprise focusing solely on the benefits of external social media might end up underestimating the true potential embedded in social business. The purpose of this thesis was to examine how social collaboration can be depicted as a structuration process in an Enterprise 2.0 environment. Furthermore, this thesis sought to reveal the benefits, challenges and possibilities of social business. This thesis focused on researching Enterprise 2.0 at the workplace. The studied Enterprise 2.0 solution was IBM Connections. The qualitative research methodology was an extensive case study. Three companies took part into this thesis and all in all 12 employees were interviewed. Additionally, seven IBM Social Business Experts were interviewed in order to receive a better understanding of the phenomenon. Three research questions were designed to fulfill the purpose of this thesis. The research questions were: 1. How are the dimensions of social capital structured through collaboration? 2. How does agency form in Enterprise 2.0? 3. How does social collaboration emerge as a result of the interplay between agency and dimensions of social capital in an Enterprise 2.0 environment and creates outcomes such as trust, identification and knowledge? The main research findings indicate that social collaboration increases trust, identification and knowledge by giving employees more capabilities to do their work. Consequently, social collaboration increases company performance by making individuals and groups more effective. The support of top management is crucial in making Enterprise 2.0 successful, because it is more a cultural than a technological change. Power agency, the lack of top management support and old established work ways such as email and databases work as barriers to social collaboration.

Organisational learning and knowledge acquisition. A case study of internationalising manufacturers of wood-based prefabricated buildings

The study investigates organisational learning and knowledge acquisition of wood-based prefabricated building manufacturers. This certain group of case companies was chosen, because their management and their employees generally have a strong manufacturing and engineering background, while the housing sector is characterised by national norms, regulations, as well as local building styles. Considering this setting, it was investigated, how the case companies develop organisational learning capabilities, acquire and transfer knowledge for their internationalisation. The theoretical framework of this study constitutes the knowledge-based conceptualisation of internationalisation, which combines the traditional internationalisation process, as well as the international new venture perspective based on their commonalities in the knowledge-based view of the firm. Different theories of internationalisation, including the network-perspective, were outlined and a framework on organisational learning and knowledge acquisition was established. The empirical research followed a qualitative approach, deploying a multiple-case study with five case companies from Austria, Finland and Germany. In the study, the development of the wood-based prefabricated building industry and of the case companies are described, and the motives, facilitators and challenges for foreign expansion, as well as the companies’ internationalisation approaches are compared. Different methods of how companies facilitate the knowledge-exchange or learn about new markets are also outlined. Experience, market knowledge and personal contacts are considered essential for the internationalisation process. The major finding of the study is that it is not necessary to acquire the market knowledge internally in a slow process as proposed by the Uppsala model. In four cases companies engaged knowledge in symbiotic relations with local business partners. Thereby, the building manufacturers contribute their design and production capabilities, and in return, their local partners provide them with knowledge about the market and local regulations; while they manage the sales and construction operations. Thus, the study provides strong evidence for the propositions of network perspective. One case company developed the knowledge internally in a gradual process: it entered the market sequentially with several business lines, showing an increasing level of complexity. In both of the observed strategies, single-loop and double-loop learning processes occurred.

Etelä-Karjalan alueen yritysten jätevirrat ja jätteenkäsittelyn kannattavuus alueella

Diplomityön tavoitteena oli selvittää Etelä-Karjalan alueen yritysten jätevirtoja ja sekalaisen rakennusjätteen koostumusta. Jätevirtojen selvityksessä keskityttiin metsäteollisuuden, rakennusteollisuuden ja kaupan alan jätevirtoihin. Tarkoituksena oli selvittää mahdollisessa jätteenkäsittelylaitoksessa hyödynnettävien jätejakeiden määrät. Selvitettyjen tietojen perusteella arvioitiin erilaisten jätteenkäsittelyvaihtoehtojen kannattavuutta yritysnäkökul-masta Etelä-Karjalan alueella. Rakennusjätteen koostumusta tutkittiin lajittelemalla ja pun-nitsemalla sekalaisia rakennusjätekuormia jätejakeittain. Etelä-Karjalan alueen jätevirtoja selvitettiin muun muassa yrityshaastatteluin ja hyödyntämällä Lassila & Tikanoja Oyj:n tietokantaa. Sekalaisen rakennusjätteen lajittelututkimuksessa selvisi, että sekalaisissa rakennusjäte-kuormissa on lähes 50 m-% hyödynnettävissä olevia jätejakeita. Energiajaetta kuormissa oli yhteensä noin 34 m-% ja kaatopaikkajätettä noin 52 m-%. Kaupan alalta syntyy pää-sääntöisesti paljon pakkausmateriaaleista koostuvaa energiajaetta, kun taas metsäteollisuu-desta syntyy paljon erilaisia prosessijätteitä, joita ei voida hyödyntää työssä tutkituilla me-netelmillä. Lappeenrannan ja Imatran alueilla arvioidaan syntyvän energiajaetta metsäteol-lisuudesta, kaupan alalta ja rakennusteollisuudesta yhteensä noin 4 300 t, puujätettä noin 5 000 t ja sekalaista rakennusjätettä noin 11 700 t. Metsäteollisuuden, rakennusteollisuuden ja kaupan alan jätevirrat Etelä-Karjalassa eivät ole riittävät taloudellisesti kannattavan jätteenkäsittelylaitoksen perustamiseksi. Arvioinnissa huomioitiin laitoksen investointikustannukset sekä muut aiheutuvat kustannukset. Energiajakeen siirtokuormausasema todettiin kannattavaksi tilanteessa, jossa energiajae toimitettaisiin Etelä-Karjalan sijasta Lahteen tai Kouvolaan.