Introduction

The tagline of Valio, a dairy firm in Finland, is "the most inventive dairy and food

company in the world." A.I. Virtanen, a Nobel Prize laureate who developed the company's

products, created it in 1905 and it currently possesses over 300 patents in fifty countries (Valio

Group. Valio.fi) (n.d.). The largest food exporter in Finland, Valio has net sales of EUR 1.7

billion, according to the company's website. About sixty nations import our goods, which make

about 25% of Finland's overall food exports. We have affiliates in China, the United States, the

Baltics, and Sweden. At dairy farms, Valio employs a total of 25,000 people, including 4,000

professionals. (Valio Group; www.valiofi.com (n.d.).

The Valio Group has always been successful in Finland and inventive with their product

development, but after Finland entered the European Union, the firm endured ten years of

significant changes that had an impact on the company's operations both internally and outside.

Major Issues

New environmental restrictions, accounting regulations, and competition for a whole new

market in the European Union were made possible by political upheaval. The borders became

open to competition when Finland joined the EU in 1995, (Wikimedia Foundation. (2022, May

5) and Valio had been the leading or the only significant commercial dairy producer for

customers in Finland. The business now faced formidable rivals, but it also had the chance to go

worldwide.

In this instance, the issue is external because Valio had no influence over Finland's

accession to the European Union. Internally, it was important to note that Valio had been running

at an excessive level for a while due to its monopoly on the Finnish dairy market. Due to the

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open borders and increased competition, Valio now feared losing market share and customers.

This is significant because in order to adapt to the shifting market conditions, the corporation had

to restructure both internally and externally.

Internal changes:

 reorganized spending on R&D and quality enhancements

 created value-added goods that catered to certain overseas markets

 cost effectiveness with a focus on simplifying production and operational phases

Outcomes: downsized some plants and closed others, (Lamprinakis, L. (2013).

External changes:

 market exploration and expansion

 Increasing marketing and branding activities

 enhancing brand awareness

 locating and further developing natural markets, and strengthening brands

Outcomes: secured market access and strengthened revenue sources, (Lamprinakis, L.

(2013).

Alternatives

The Valio Group had the option of carrying on business as usual. This would not result in

organizational change, market share loss to rivals, or financial penalties for breaking new

restrictions. Although a few production sites were closed, the firm has a sizable net revenue and

continues to exist and prosper despite investing in research and development and making other

financial and organizational adjustments to improve business operations.

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 Implementation Plan based on Case Study

The Valio Group would gain a lot from employing a SWOT approach procedure. SWOT

analysis stands for strengths, weaknesses, opportunities, and threats. This is a methodical

approach used to handle dangers and vulnerabilities and take advantage of opportunities

(Employment, S. B., and T. (2022, November 8). In order to comprehend new legislation and the

financial ramifications to their farms and goods, Valio develops a project management strategy

in collaboration with attorneys, accountants, organizational leadership, and others.

The president of sales and marketing and his staff do market research to develop goods

that add value, reinforce brands, and increase sales in new market regions as a result of the EU's

enlargement. Inspectors of compliance and products make sure that quality levels meet the new

criteria required by EU laws. The accounting team starts to implement factory closures and

downsizing by looking at cost-efficiency initiatives.

Conclusion

This case study is relevant because it demonstrates how quickly the political, financial,

and technological environments may alter while expanding and running a corporation. Whether

it involves making difficult decisions to cut costs or expand into new international markets, a

business leader must be prepared for organizational change and adapt to suit the demands of the

company to guarantee survival. Due to its flexibility, the Valio Group, an innovative dairy

producer that dates back to 1905, has been able to maintain profitability and successful

operations.

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 References

Employment, S. B., and T. (2022). Benefits and limitations of SWOT analysis. Business

Queensland. Retrieved January 30, 2023, from https://www.business.qld.gov.au/starting-

business/planning/market-customerresearch/swot-analysis/benefits-limitations

Lamprinakis, L. (2013). The transformation of Valio: A case study. Journal of Business Case

Studies, http://cluteinstitute.com/ojs/index.php/JBCS/article/view/7549/7615 Valio

Group. Valio.fi. (n.d.). Retrieved January 30, 2023, from https://www.valio.com/

Wikimedia Foundation. (2023). 1995 enlargement of the European Union. Wikipedia. Retrieved

January 30, 2023, from

https://en.wikipedia.org/wiki/1995_enlargement_of_the_European_Union#:~:text=Austri

a %2C%20Finland%20and%20Sweden%20became,and%20Finland%20on

%2020%20October.