Where is value created in the Finnish food industry? Case: Finnish food company

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School of Economics | Master's thesis
Date
2011
Major/Subject
International Business
Kansainvälinen liiketoiminta
Mcode
Degree programme
Language
en
Pages
84
Series
Abstract
Objectives: This study examines the global value chains of the Finnish food industry and aims to explain how value is created and distributed within the food industry value chains. The global value chains have been evolving greatly during the past decades due to the globalization, and these far more complex value chains pose challenges for both economies and the corporate world to understand value creation and distribution. This study aims to address the research gap of empirical results on global value chains, but at the same time provide managerially significant industry information. The results should help to understand the functioning of global value chains in the Finnish food industry. Research method: The research method for this thesis is qualitative with a single case study approach. Both qualitative and quantitative data is used, since data collection was carried out through semi-structured interviews and data bases. Results: The main results of this study comprise of four important findings. First finding is the identification of the value chain participants (on broad level) in a Finnish food industry value chain, which are the primary sector, refiners of raw materials, food industry companies, and distribution. Second finding was that the most value of these value chain participants is created in the downstream of the value chain by distribution and food industry companies, whereas upstream of the value chain is capturing less value due to the low value adding activities performed. Third finding was that Finnish companies create nearly all the value created in the Finnish food industry. Fourth, the Finnish food industry remains very traditional, where the impacts of globalization are so far experienced only to some extent. Keywords: Finland, food industry, value chains, value distribution, globalization?
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Keywords
Finland, food industry, value chains, value distribution, globalization
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