Drivers and Barriers of Collaboration in the Value Chain of Paperboard-Packed Consumer Goods

Value chain collaboration has been a prevailing topic for research, and there is a constantly growing interest in developing collaborative models for improved efficiency in logistics. One area of collaboration is demand information management, which enables improved visibility and decrease of inventories in the value chain. Outsourcing of non-core competencies has changed the nature of collaboration from intra-enterprise to cross-enterprise activity, and this together with increasing competition in the globalizing markets have created a need for methods and tools for collaborative work. The retailer part in the value chain of consumer packaged goods (CPG) has been studied relatively widely, proven models have been defined, and there exist several best practice collaboration cases. The information and communications technology has developed rapidly, offering efficient solutions and applications to exchange information between value chain partners. However, the majority of CPG industry still works with traditional business models and practices. This concerns especially companies operating in the upstream of the CPG value chain. Demand information for consumer packaged goods originates at retailers' counters, based on consumers' buying decisions. As this information does not get transferred along the value chain towards the upstream parties, each player needs to optimize their part, causing safety margins for inventories and speculation in purchasing decisions. The safety margins increase with each player, resulting in a phenomenon known as the bullwhip effect. The further the company is from the original demand information source, the more distorted the information is. This thesis concentrates on the upstream parts of the value chain of consumer packaged goods, and more precisely the packaging value chain. Packaging is becoming a part of the product with informative and interactive features, and therefore is not just a cost item needed to protect the product. The upstream part of the CPG value chain is distinctive, as the product changes after each involved party, and therefore the original demand information from the retailers cannot be utilized as such – even if it were transferred seamlessly. The objective of this thesis is to examine the main drivers for collaboration, and barriers causing the moderate adaptation level of collaborative models. Another objective is to define a collaborative demand information management model and test it in a pilot business situation in order to see if the barriers can be eliminated. The empirical part of this thesis contains three parts, all related to the research objective, but involving different target groups, viewpoints and research approaches. The study shows evidence that the main barriers for collaboration are very similar to the barriers in the lower part of the same value chain; lack of trust, lack of business case and lack of senior management commitment. Eliminating one of them – the lack of business case – is not enough to eliminate the two other barriers, as the operational model in this thesis shows. The uncertainty of the future, fear of losing an independent position in purchasing decision making and lack of commitment remain strong enough barriers to prevent the implementation of the proposed collaborative business model. The study proposes a new way of defining the value chain processes: it divides the contracting and planning process into two processes, one managing the commercial parts and the other managing the quantity and specification related issues. This model can reduce the resistance to collaboration, as the commercial part of the contracting process would remain the same as in the traditional model. The quantity/specification-related issues would be managed by the parties with the best capabilities and resources, as well as access to the original demand information. The parties in between would be involved in the planning process as well, as their impact for the next party upstream is significant. The study also highlights the future challenges for companies operating in the CPG value chain. The markets are becoming global, with toughening competition. Also, the technology development will most likely continue with a speed exceeding the adaptation capabilities of the industry. Value chains are also becoming increasingly dynamic, which means shorter and more agile business relationships, and at the same time the predictability of consumer demand is getting more difficult due to shorter product life cycles and trends. These changes will certainly have an effect on companies' operational models, but it is very difficult to estimate when and how the proven methods will gain wide enough adaptation to become standards.

Political ideologies and attitudes towards income inequality in the US: a critical discourse analysis of CNN and Fox News opinion articles

The topic of the thesis is media discourse about current state if income inequality in the US, and political ideologies as influences behind the discourse. The data consists of four opinion articles, two from CNN and two from Fox News. The purpose of the study was to examine how media represents income inequality as an issue, and if the attitudes conveyed are concerned or indifferent. Previous studies have indicated that the level of income is often seen as a personal responsibility, and such perspective can be linked with Republican ideology. In contrast, the Democrats typically express more concern about the consequences of inequality. CNN has been previously considered to have a Democratic bias, and Fox News has been considered to have Republican bias, which is one reason why these two news channels were chosen as the sources of the data. The study is a critical discourse analysis, and the methods applied were sociocognitive approach, which analyzes the social and cognitive factors affecting the discourse, and appraisal framework, which was applied to scrutinize the expressed attitudes more closely by identifyind specific linguistic features. The appraisal framework includes studying such features as affect, judgment and appreciation, which offer a more detailed analysis on the attitudes present in the articles. The sociocognitive approach, additionally, offers a way of analyzing a more broad context affecting the articles. The findings were then compared, to see if there are differences between the articles, or between the news sites with alleged bias. The findings showed that CNN, with alleged Democratic bias, had a more symphatetic attitude towards income inequality, whereas Fox News, with more Republican views, showed clearly less concern towards the issue. Moreover, the Fox News articles had such dubious claims that the underlying ideology behind the articles could be even supporting of income inequality, as it allows the rich to pursue all the wealth they can without having to give anything away. The results, thus, suggest that the political ideologies may a significant effect on media discourse, which, in turn, may have a significant effect on the attitudes of the public towards great issues that could require prompt measures.