Junkkari Oy: Growing the Wood-Chipper Business
(5 pages of text)
The MSK Group Oy was a third-generation family-owned business located in Ylihärmä, Finland. One of its subsidiaries, Junkkari Oy (Junkkari), manufactured agricultural and forestry equipment, including a range of mid-sized disk wood chippers used in small-scale farming and forestry applications; most of these were exported to markets in Europe and South Africa. Junkkari was not the only Finnish firm manufacturing wood chippers, and there was little to differentiate Junkkari’s machines from those of its competitors. Like many small firms that exported to foreign markets, Junkkari used partner distributors to sell its equipment internationally.
In early 2017, Junkkari’s export manager was reviewing the wood-chipper orders. He knew the firm could double its annual production, but without firm orders, growth was stalled. He wondered how to grow the company’s business with a very limited budget.
This case is suitable for undergraduate and graduate courses on strategy for small- to medium-sized firms. After working through this case, students will be able to
- describe how family-owned firms differ from firms with other ownership structures;
- identify the drivers and limits of continued growth in small- to medium-sized firms;
- outline the challenges of using exporting as an entry strategy into foreign markets; and
- explain the contribution of family-owned businesses to a national economy.
Canada; Finland, Small, 2017
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