THE TRANSFORMATION OF VALIO CASE STUDY
WRITTEN ASSIGNMENT UNIT-1
THE TRANSFORMATION OF VALIO CASE STUDY
University of the People
BUS 5910 Management Capstone
In this paper, please discuss The Transformation of Valio case study. In doing so, please address
the following areas:
, THE TRANSFORMATION OF VALIO CASE STUDY
1. Identify the problem: Is the problem internal, external, or both? Please describe each
problem with research information found outside the case study.
2. Diagnose the cause(s): Describe the root cause for the problem. Does it matter
whether the cause is internal or external? If so, in what ways?
3. Prescribe possible alternatives: The case identifies Valio’s response. Please evaluate
it. Would there be other alternatives available to Valio?
4. Recommend a plan of action (decision/implementation): From the actions identified in
the case, please provide a high-level description of implementation steps.
5. In addition, each case study response should also state why this case is important and
relevant to a study of business.
Submit a 3-page case paper, (independent of reference page) double-spaced. Paper and all
citations should be in APA format.
This case study is about the leading dairy Company in Finland named Valio. Valio is the biggest
food business in Finland that processes more than 80 percent of all milk produced in the country
(Walker, 2016).
The collapse of the Soviet Union in the early 1990s hit Finnish exports. Russia's trade retaliation
against the EU has also hit Finland as it banned some EU imports, including dairy products,
which was a serious blow to the country's leading dairy business, Valio (Walker, 2016).
The Finnish dairy company Valio responded to this crisis by making an adjustment, which had
resulted in a decision to reduce its workforce and reduce the payrolls.
The retrenchment involved a total of nearly 3,000 employees in the production and logistics
units as well as its head office. The company employs a total of 3,500 workers in Finland
(Walker, 2016).
However, there is always a positive side that comes out of any negative. This crisis pushed the
company to use the milk in other products. Therefore, Valio started to focus on R&D and divided
it into two units: Nutritional Innovations and Technological Innovations. Valio R&D developed
probiotics, fermented milk, and lactose-free products which helped the company to continue its
success in the market (Valio Ltd., 2004).
In this case study, the major problem is environmental change, which is an external problem.
There are two important sources of environmental change that can be identified during the
examined period. The first source of change appeared after the collapse of the Soviet Union
WRITTEN ASSIGNMENT UNIT-1
THE TRANSFORMATION OF VALIO CASE STUDY
University of the People
BUS 5910 Management Capstone
In this paper, please discuss The Transformation of Valio case study. In doing so, please address
the following areas:
, THE TRANSFORMATION OF VALIO CASE STUDY
1. Identify the problem: Is the problem internal, external, or both? Please describe each
problem with research information found outside the case study.
2. Diagnose the cause(s): Describe the root cause for the problem. Does it matter
whether the cause is internal or external? If so, in what ways?
3. Prescribe possible alternatives: The case identifies Valio’s response. Please evaluate
it. Would there be other alternatives available to Valio?
4. Recommend a plan of action (decision/implementation): From the actions identified in
the case, please provide a high-level description of implementation steps.
5. In addition, each case study response should also state why this case is important and
relevant to a study of business.
Submit a 3-page case paper, (independent of reference page) double-spaced. Paper and all
citations should be in APA format.
This case study is about the leading dairy Company in Finland named Valio. Valio is the biggest
food business in Finland that processes more than 80 percent of all milk produced in the country
(Walker, 2016).
The collapse of the Soviet Union in the early 1990s hit Finnish exports. Russia's trade retaliation
against the EU has also hit Finland as it banned some EU imports, including dairy products,
which was a serious blow to the country's leading dairy business, Valio (Walker, 2016).
The Finnish dairy company Valio responded to this crisis by making an adjustment, which had
resulted in a decision to reduce its workforce and reduce the payrolls.
The retrenchment involved a total of nearly 3,000 employees in the production and logistics
units as well as its head office. The company employs a total of 3,500 workers in Finland
(Walker, 2016).
However, there is always a positive side that comes out of any negative. This crisis pushed the
company to use the milk in other products. Therefore, Valio started to focus on R&D and divided
it into two units: Nutritional Innovations and Technological Innovations. Valio R&D developed
probiotics, fermented milk, and lactose-free products which helped the company to continue its
success in the market (Valio Ltd., 2004).
In this case study, the major problem is environmental change, which is an external problem.
There are two important sources of environmental change that can be identified during the
examined period. The first source of change appeared after the collapse of the Soviet Union
