Managing Strategic Growth at Sjoland & Thyselius Ab

Suitable for MBA, EMBA, and GEMBA courses, this case describes the organization and structure of a small European firm providing technical solutions to the defense industry. It combines crucial issues from strategic management and organization and management. The firm was founded by Magnus Sjoland and Rune Thyselius in Stockholm, Sweden, mainly working in the Swedish defense industry but also serving civilian customers. Having received the first large international order, the firm now stood to market itself on a broader international market. An open question is what resources the firm requires to compete in a global arena that differs in many ways from its well-known Swedish defense industry. At the same time, the firm structure demands too much of the owner managers leaving them unable to offer sufficient support for each division to prosper. The case offers unique possibilities to discuss the complex interaction of market forces, the control and management of valuable resources, and organization, in particular its structure and culture. Excerpt UVA-S-0189 Rev. Sept. 19, 2011 MANAGING STRATEGIC GROWTH AT SJOLAND & THYSELIUS AB It seemed extraordinary that, in 21 years, Rune Thyselius, chair and cofounder of Sjoland & Thyselius AB (S&T), and his partner, CEO Magnus Sjoland, had grown their business from a two-person programming firm to an important Swedish defense enterprise with 160 employees. Based in Stockholm, S&T offered a range of services, from management consulting, military training systems, construction engineering, and communication technologies to owning and running Scandinavia's only wind tunnel. Some reaching that level of success might have been ready to slow down and mull over an exit strategy, but Sjoland and Thyselius were looking to grow. Their first large-scale international project was well under way in the United Arab Emirates (UAE), and other opportunities in the international defense arena were possible. But was the firm ready for an international expansion? What internal actions would be necessary to create an organizational structure capable of supporting successful globalization? Should it continue to seek business in the UAE or target other markets? What organizational structure and which capabilities would be required to expand globally? The Early Years . . .