Business risks faced by Finnish companies in Poland
BUSINESS RISKS FACED BY FINNISH COMPANIES IN POLAND
Satakunnan ammattikorkeakoulu, Satakunta University of Applied Sciences
Degree Programme in Service Business
Number of pages: 78
Keywords: risks, risk management, Poland
The purpose of this thesis was to study the nature of business risks faced by Finnish companies in Poland and the tools to manage them. The thesis was commissioned by Finland – Central Eastern European Countries Trade Association acting under the Fin-land Chamber of Commerce and aiming to expand and develop the economic relations between Finland and Bulgaria, Croatia, Slovakia, Czech Republic, Hungary and Po-land. The study was based on the views of three Finnish companies representing three different business fields in Poland. Two of the companies can be categorized as large companies in Finland and one as a small or medium-sized (SME) company.
The research material was collected by qualitative methods by conducting semistructured thematic interviews. The research material was analyzed with PESTEL analysis, which focuses on the external macro environmental factors that have an impact on an organisation. The PESTEL analysis is built on political, economic, social, technological, environmental and legal factors which is why it was suitable for studying the busi-ness risks arising from the external environment of a company.
Based on the study the most significant business risks in Poland are related to social factors such as labor shortage, staff turnover, management and acquisition of new customers. Economic risks are related to rise of salary and cost level and financing of the company in Poland. Political environment of Poland was described as more stable than suggested lately in the media and there was no political threat seen towards foreign companies. Technological risks are mostly related to information security and the lim-ited know-how in utilizing the possibilities enabled by technology. The environmental factors did not form a threat to the studied Finnish companies yet the strict environ-mental requirements towards foreign companies, air pollution and flood risk were mentioned. Business risks related to legal environment of Poland might arise from heavy bureaucracy, slowness or contractual practices.
Based on the study the most significant tools to manage business risks in Poland are overall awareness of the changes in the business environment, training, networking, open communication, utilizing the know-how of the stakeholders, reserving time and patience, quality and reliability of delivery and financing the Polish subsidiary via the Finnish parent company.
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