The logistic risks of Finnish companies operating in China

Selvitys suomalaisten yritysten kohtaamista logistisista ongelmista Kiinan markkinoilla toimiessa. Tutkielma tuo esiin Kiinan logistiikkaan liittyvät erityispiirteet ja heijastaa niitä haastattelujen avulla suomalaisiin yrityksiin, jotka operoivat Kiinassa.

The Role of networks in the internationalization process of Finnish design companies

Finnish design has attracted global attention lately and companies within the industry have potential in international markets. Because networks have been found to be extremely helpful in a firm’s international business operations and usefulness of networks is not fully exploited, their role in Finnish design companies is investigated. Accordingly, this study concentrates on understanding the role of networks in the internationalization process of Finnish design companies. This was investigated through describing the internationalization process of Finnish design companies, analyzing what kind of networks are related to internationalization process of Finnish design companies, and analyzing how networks are utilized in the internationalization process of Finnish design companies. The theoretical framework explores the Finnish design industry, internationalization process and networks. The Finnish design industry is introduced in general and the concept of design is defined to refer to the industries of textiles, furniture, clothing, and lighting equipment in the research. The theories of internationalization process, the Uppsala model and Luostarinen’s operation modes, are explored in detail. The Born Global theory, which is a contrary view to stage models, is also discussed. The concept of network is investigated, networks are classified into business and social networks, and network approach to internationalization is discussed. The research is conducted empirically and the research method is a descriptive case study. In this study, four case companies are investigated: the interior decoration unit of L-Fashion Group, Globe Hope, Klo Design, and Melaja Ltd. Data is collected by semi-structured interviews and the analysis is done in the following way: the case companies are introduced, their internationalization processes and networks are described and, finally, the comparison of the case companies is done in a form of cross-case analysis. This research showed that cooperation with social networks, such as locals or employees who have experience from the target market can be extremely helpful in the beginning of a Finnish design company’s internationalization process. This study also indicated that public organizations do not necessarily enhance the internationalization process in a design company point-of-view. In addition, the research showed that there is cooperation between small Finnish design companies whereas large design companies are not as open to cooperation with competitors.

Kuivajätehuollon hiilijalanjälki ja kustannukset sekä kuljetusten kilpailutus – Etelä-Karjalan aluekeräyspisteverkoston päivitys

Tutkimuksen tavoitteena oli yhtenäistää Etelä-Karjalan alueen erilaisia tapoja toimia alueke-räyksen suhteen. Aluekeräyksellä tarkoitetaan jätteiden keräystä pisteiltä, joihin kotitaloudet, jotka eivät kuulu kiinteistökohtaiseen keräykseen, voivat tuoda syntypaikkalajitellun kuiva- eli sekajätteensä. Tavoitteena oli myös saada tietoa siitä, minkälaiset ovat eri kuivajätehuoltovaihtoehtojen ilmastonmuutos- ja kustannusvaikutukset. Lisäksi tavoitteena oli selvittää, miten ympäristönäkökohdat voidaan ottaa huomioon kuljetuskilpailutuksissa. Tutkimuksessa kerättiin tietoa internetistä, opinnäytetöistä ja tieteellisistä artikkeleista sekä yritysten edustajilta. Kasvihuonekaasupäästöjen laskennassa hyödynnettiin GaBi 6.0 -elinkaariarviointiohjelmaa. Tutkimuksen perusteella aluekeräyspisteet kannattaa sijoittaa reiteille, joita asukkaat käyttävät vähintään kerran viikossa ja mitkä ovat optimaalisesti myös kuljetusurakoitsijan kannalta. Taajama-alueelle ei nähty suositeltavaksi sijoittaa aluekeräyspisteitä. Suositeltavina astioina aluekeräyspisteille nähtiin syväkeräyssäiliöt, joiden tyhjennys onnistuu samalla keräyskalustolla kuin kiinteistöjen jäteastioiden, kun ajoneuvo on varustettu puominosturilla. Suositeltavaksi nähtiin myös harventaa jäteastioiden talvityhjennystiheyksiä, jos tyhjennystiheys on vakio ympäri vuoden, sillä pääosa aluekeräyspisteiden käyttäjistä on loma-asukkaita. Tyhjennystiheyksien harvennuksella olisi mahdollista saavuttaa kustannussäästöjä. Tutkimuksessa laskettiin kuivajätteen elinkaarenaikaisia kasvihuonekaasupäästöjä kuivajätteen keräyksestä loppusijoitukseen ja energiahyötykäyttöön. Energiahyötykäyttökohteiksi valittiin Riihimäen, Kotkan sekä Leppävirran (suunnitteilla) jätteenpolttolaitokset. Tulosten pohjalta kuivajätteen energiahyötykäyttö oli loppusijoitusta selkeästi parempi vaihtoehto. Kuivajätteen keräys- ja kuljetuspäästöjen vaikutus oli pieni. Kuivajätteen kuljetusmatkan pituus jätteenpolttolaitokselle ei ole siis ratkaisevassa roolissa kokonaiskasvihuonekaasupäästöjä tarkasteltaessa. Etäisyyttä suurempi vaikutus onkin kuivajätteen koostumuksella, polttolaitosten vuosihyötysuhteilla ja korvattavilla polttoaineilla. Jatkossa suositellaan selvittämään vielä vaihtoehtoisia käsittelytapoja kuivajätteen sisältämälle sekamuovijakeelle, jonka poltosta aiheutuu merkittävä osuus (noin 74 %) kuivajätteen polton kasvihuonekaasupäästöistä. Ajankohtaisia kuljetuskilpailutuksia varten tarkasteltiin vielä tarkemmin keräys- ja kuljetuspäästöjä. Tulosten pohjalta havaittiin, että keräys- ja kuljetuspäästöjä on mahdollista vähentää reilusti (46–74 %) siirtymällä dieselistä biopolttoaineiden käyttöön. Tuloksiin vaikuttaa kuitenkin merkittävästi, minkälaisista raaka-aineista biopolttoaineet on valmistettu. Kuivajätteen keräyspäästöjä on mahdollista pienentää myös päivittämällä aluekeräyspisteverkostoa. Tutkimuksessa tarkasteltiin kustannuksia aluekeräyspisteiden astioiden uusinnasta tai korjauksesta kuivajätteen loppusijoitukseen tai energiahyötykäyttöön asti. Merkittävimmät kustannukset aiheutuivat kuivajätteen loppusijoituksesta, energiahyötykäytöstä sekä keräyksestä. Kustannusten näkökulmasta keräyksen rooli oli siis suurempi. Työn lopussa annettiin vielä vinkkejä, joiden avulla jätehuoltoyritykset voivat tehdä jätekuljetushankintoja ympäristönäkökohdat huomioiden. Usein selkein tapa huomioida ympäristönäkökohdat kuljetuskilpailutuksissa on asettaa riittävän tiukkoja pakollisia vaatimuksia, jolloin voi valita hinnaltaan halvimman vaihtoehdon. Kuljetuspalvelun hankinnassa tulee huomioida ainakin energiankulutus, hiilidioksidi-, typenoksidi-, hiilivety- ja hiukkaspäästöt. Lainsäädäntö ei määrää vähimmäistasoja, vaan hankintaa tehdessä kannattaa kartoittaa markkinatilanne, jotta vaatimukset osaa asettaa oikealle tasolle. Markkinoille kannattaa myös tiedottaa tulevaisuuden tarpeista ja suunnitelmista. Suuria hankintakokonaisuuksia suositellaan pilkottavan pienempiin osiin, jotta pienet ja keskisuuret yritykset pystyvät myös osallistumaan tarjouskilpailuihin. Kannustus innovaatioiden huomioimiseen hankinnoissa on lisääntynyt myös jätehuollon alalla. Selvitettyjen kasvihuonekaasupäästöjen perusteella oli merkille pantavaa, miten suuri vaikutus polttolaitoksen valinnalla oli kasvihuonekaasupäästöihin. Oleellista onkin huomioida ympäristönäkökohdat myös energiahyötykäyttökohdetta valittaessa.

Railways, Airports and Sea Container Operators as Publicly Listed Companies – Financial Performance and Shareholder Value Creation Perspective

Logistics infrastructure and transportation services have been the liability of countries and governments for decades, or these have been under strict regulation policies. One of the first branches opened for competition in EU as well as in other continents, has been air transports (operators, like passenger and freight) and road transports. These have resulted on lower costs, better connectivity and in most of the cases higher service quality. However, quite large amount of other logistics related activities are still directly (or indirectly) under governmental influence, e.g. railway infrastructure, road infrastructure, railway operations, airports, and sea ports. Due to the globalization, governmental influence is not that necessary in this sector, since transportation needs have increased with much more significant phase as compared to economic growth. Also freight transportation needs do not correlate with passenger side, due to the reason that only small number of areas in the world have specialized in the production of particular goods. Therefore, in number of cases public-private partnership, or even privately owned companies operating in these sub-branches have been identified as beneficial for countries, customers and further economic growth. The objective of this research work is to shed more light on these kinds of experiments, especially in the relatively unknown sub-branches of logistics like railways, airports and sea container transports. In this research work we have selected companies having public listed status in some stock exchange, and have needed amount of financial scale to be considered as serious company rather than start-up phase venture. Our research results show that railways and airports usually need high fixed investments, but have showed in the last five years generally good financial performance, both in terms of profitability and cash flow. In contrary to common belief of prosperity in globally growing container transports, sea vessel operators of containers have not shown that impressive financial performance. Generally margins in this business are thin, and profitability has been sacrificed in front of high growth – this also concerns cash flow performance, which has been lower too. However, as we examine these three logistics sub-branches through shareholder value development angle during time period of 2002-2007, we were surprised to find out that all of these three have outperformed general stock market indexes in this period. More surprising is the result that financially a bit less performing sea container transportation sector shows highest shareholder value gain in the examination period. Thus, it should be remembered that provided analysis shows only limited picture, since e.g. dividends were not taken into consideration in this research work. Therefore, e.g. US railway operators have disadvantage to other in the analysis, since they have been able to provide dividends for shareholders in long period of time. Based on this research work we argue that investment on transportation/logistics sector seems to be safe alternative, which yields with relatively low risk high gain. Although global economy would face smaller growth period, this sector seems to provide opportunities in more demanding situation as well.

Stock Market reaction to the CSR announcements of American fast food companies

The purpose of this study is to examine whether Corporate Social Responsibility (CSR) announcements of the three biggest American fast food companies (McDonald’s, YUM! Brands and Wendy’s) have any effect on their stock returns as well as on the returns of the industry index (Dow Jones Restaurants and Bars). The time period under consideration starts on 1st of May 2001 and ends on 17th of October 2013. The stock market reaction is tested with an event study utilizing CAPM. The research employs the daily stock returns of the companies, the index and the benchmarks (NASDAQ and NYSE). The test of combined announcements did not reveal any significant effect on the index and McDonald’s. However the stock returns of Wendy’s and YUM! Brands reacted negatively. Moreover, the company level analyses showed that to their own CSR releases McDonald’s stock returns respond positively, YUM! Brands reacts negatively and Wendy’s does not have any reaction. Plus, it was found that the competitors of the announcing company tend to react negatively to all the events. Furthermore, the division of the events into sustainability categories showed statistically significant negative reaction from the Index, McDonald’s and YUM! Brands towards social announcements. At the same time only the index was positively affected by to the economic and environmental CSR news releases.

The effect of environmentally differentiated port fees to shipping companies��� environmental investments

The pressure has grown to develop cost-effective emission reduction strategies in the Baltic Sea. The forthcoming stringent regulations of the International Maritime Organization for reducing harmful emissions of shipping in the Baltic Sea are causing increasing expenses for the operators. A market-based attitude towards pricing of economic incentives could be seen as a new approach for a successful application for the additional emission reduction of nitrogen oxides (NOx). In this study the aim is to understand the phenomenon of environmentally differentiated port fees and its effects on shipping companies��� emission reduction investments. The goal is to examine empirically the real-life effects of the possible environmental differentiated port fee system and the effect of environmentally differentiated port fees on NOx reduction investments in the Baltic Sea. The research approach of this study is nomothetical. In this study research questions are answered by analyzing the broad database of the Baltic Sea fleet. Also the framework of theory is confirmed and plays an important role in analyzing the research problem. Existing investment costs of NOx emission reduction technology to ship owners are estimated and compared to investment costs with granted discounts added to the cash flows. The statistical analysis in this study is descriptive. The major statistic examination of this study is the calculation of the net present values of investments with different port fee scenarios. This is done to investigate if the NOx technology investments could be economically reasonable. Based on calculations it is clear that the effect of environmentally differentiated port fees is not adequate to compensate the total investment costs for NOx reduction. If the investment decision is made only with profitability considerations, sources will prefer to emission abatement as long as incomes from the given subsidy exceeds their abatement costs. Despite of the results, evidence was found that shipping companies are nevertheless willing to invest on voluntary emission abatement technology. In that case, investment decision could be made with criteria of, for example, sustainable strategy or brand image. Combined fairway and port fee system or governmental regulations and recommendation could also function as additional incentives to compensate the investment costs. Also, the results imply that the use of NPV is not necessarily the best method to evaluate environmental investments. If the calculations would be done with more environmental methods the results would probably be different.

The impact of long-term brand development strategies on brand value of companies operating in high-technology markets

The objective of the current research is to investigate brand value generation. The study is conducted in the context of high-technology companies. The research aims at finding the impact of long-term brand development strategies, including advertising investments, R&D investments, R&D intensity, new products developed and design. The empirical part of the study incorporated collection of primary and secondary data on 36 companies operating in high-technology sector and being rated as top companies with the most valuable brands by Interbrand consultancy. The data contained information for six consequent years from 2008 to 2013. Obtained data was analyzed using the methods of fixed effect and random effect model (panel data analysis). The analysis showed positive effect of advertising and R&D investments on brand value of high-technology companies in the long run. The impact of remaining three strategies was not approved and further investigation is required.

Foreign Operation Mode Strategies of Finnish Companies in Russia

The object of this study was to examine foreign operation mode strategies used by Finnish companies in Russia. Thus, it was necessary to understand how Finnish companies have used foreign operation modes and which factors have influenced on their foreign operation mode strategies in Russia. Moreover, the purpose was also to find out that have Finnish companies switched, stretched or combined their foreign operation modes. The study's empirical part was conducted as a semi structured qualitative within-case and cross-case analysis of seven case companies that are selected to represent different industries. There are five Finnish LSEs and two Finnish SMEs as case companies. The results of this study indicated that Finnish companies have mainly used exporting as their initial entry mode to the Russian market. After they had gained understanding and experience of the Russian market, they switched from non-equity and simple foreign operation modes to more challenging and equity demanding foreign operation modes, and established wholly owned operations.

The early activities of front end of innovation in oem companies using a new fei platform as a framework for renewal

The main goal of this study is to create a seamless chain of actions and more detailed structure to the front end of innovation to be able to increase the front end performance and finally to influence the renewal of companies. The main goal is achieved through by the new concept of an integrated model of early activities of FEI leading to a discovery of new elements of opportunities and the identification of new business and growth areas. The procedure offers one possible solution to a dynamic strategy formation process in innovation development cycle. In this study the front end of innovation is positioned between a strategy reviews and a concept creation with needed procedures, tools, and frameworks. The starting point of the study is that the origins of innovation are not well enough understood. The study focuses attention on the early activities of FEI. These first activities are conceptualized in order to find out successful innovation initiatives and strategic renewal agendas. A seamless chain of activities resulting in faster and more precise identification of opportunities and growth areas available on markets and inside companies is needed. Three case studies were conducted in order to study company views on available theory doctrine and to identify the first practical experiences and procedures in the beginning of the front end of innovation. Successful innovation requires focus on renewal in both internal and external directions and they should be carefully balanced for best results. Instead of inside-out mode of actions the studied companies have a strong outside-in thinking mode and they mainly co-develop their innovation initiatives in close proximity with customers i.e. successful companies are an integral part of customers business and success. Companies have tailor-made innovation processes combined their way of working linked to their business goals, and priorities of actual needs of transformation. The result of this study is a new modular FEI platform which can be configured by companies against their actual business needs and drivers. This platform includes new elements of FEI documenting an architecture presenting how the system components work together. The system is a conceptual approach from theories of emergent strategy formation, opportunity identification and creation, interpretation-analysis-experimentation triad and the present FEI theories. The platform includes new features compared to actual models of FEI. It allows managers to better understand the importance of FEI in the whole innovation development stage and FEI as a phase and procedure to discover and implement emergent strategy. An adaptable company rethinks and redirects strategy proactively from time to time. Different parts of the business model are changed to remove identified obstacles for growth and renewal which gives them avenues to find right reforms for renewal.

Hiilijalanjäljen pienentämismahdollisuuksien tunnistaminen mediatalossa

Tässä diplomityössä on tutkittu mediatalon hiilijalanjäljen pienentämismahdollisuuksia yhteistyössä Otava-konsernin kanssa. Työ on siis osa Otava-konsernin yritysvastuun kehittämistä. Yritysvastuuseen ja sen raportointiin on perehdytty myös yleisesti mediasektorin tasolla. Työssä perehdytään myös hiilijalanjäljen laskentaohjeisiin sekä lasketaan Otavakonsernin hiilijalanjälki tietyin rajauksin. Yrityksen hiilijalanjäljen laskentaa voidaan toteuttaa esimerkiksi Greenhouse Gas Protokollan laskentaohjeiden mukaisesti. Yleisiä ohjeita kasvihuonekaasuinventaarin laskentaan antaa ISO 14064-1 standardi. Otava-konsernin laskenta on toteutettu ClimateCalc-laskuria soveltuvilta osin hyväksikäyttäen. Laskennan tulokset on esitetty konsernin yhtiöittäin vuoden 2013 tietojen pohjalta. Valittu laskuri toimi parhaiten kirjapainon käytössä. Muiden konsernin yhtiöiden osalta laskuria on jouduttu soveltamaan. Konsernin päästöistä myös merkittävä osa syntyi kirjapainossa, mikä osaltaan johtuu muita yhtiöitä laajemmasta laskennasta. Tulevaisuudessa laskentaa on hyvä laajentaa myös muiden yhtiöiden osalta, jolloin laskurin ominaisuuksia pystytään käyttämään laajemmin hyväksi.

Cooperative strategy in emerging markets - analysis of interfirm r&d cooperation and performance in Russian manufacturing companies

Emerging markets have come to play a significant role in the world, not only due to their strong economic growth but because they have been able to foster an increasing number of innovative high technology oriented firms. However, as the markets continue to change and develop, there remain many companies in emerging markets that struggle with their competitiveness and innovativeness. To improve competitive capabilities, many scholars have come to favor interfirm cooperation, which is perceived to help companies access new knowledge and complementary resources and, by so doing, enables them to catch up quickly with Western competitors. Regardless of numerous attempts by strategic management scholars, the research field remains very fragmented and lacks understanding on how and when interfirm cooperation contributes to firm performance and competiveness in emerging markets. Furthermore, the reasons why interfirm R&D sometimes succeeds but fails at other times frequently remain unidentified. This thesis combines the extant literature on competitive and cooperative strategy, dynamic capabilities, and R&D cooperation while studying interfirm R&D relationships in and between Russian manufacturing companies. Employing primary survey data, the thesis presents numerous novel findings regarding the effect of R&D cooperation and different types of R&D partner on firms’ exploration and exploitation performance. Utilizing a competitive strategy framework enables these effects to be explained in more detail, and especially why interfirm cooperation, regardless of its potential, has had a modest effect on the general competitiveness of emerging market firms. This thesis contributes especially to the strategic management literature and presents a more holistic perspective on the usefulness of cooperative strategy in emerging markets. It provides a framework through which it is possible to assess the potential impacts of different R&D cooperation partners and to clarify the causal relationships between cooperation, performance, and long term competitiveness.