4 CASE VALIO RUSSIA
This qualitative case essay analyzes how sanctions programs can impact globally acting companies like Valio when nations try to pursue their political ambitions. It is built in chronological order with an analysis of OOO Valio Russia and its operations followed by the operations of Valio during the crises and to later on the future possibilities of OOO Valio Russia.
4.1 Valio
Valio is 110 years old Finnish dairy company with long history in international business and it is also known of it’s fresh innovations in dairy products. Valio is owned by Finnish milk producers who will gain the profits by “Milk return” which tells how well Valio can pay for each produced litre of milk (*“Milk return” = revenue - other expenses except depreciations equal to producer price paid for owners and shareholder loans, ** “Milk return”= Milk return - financing needs for investments / produced raw milk). In 2014 Valios turnover was €1,950 million and it employed 4,375 employees and in Russia on average of 475 persons. In 2014 Valio made worth of €152 million production investments. (www.valio.fi) …show more content…
The same price for raw milk is paid for everyone regardless the amount of produced milk or the location and all the raw milk is received from the owners. (http://www.valio.fi/)
Valio has five foreign subsidiaries. They are located in Sweden, Russia, Baltic countries, China and in United States. Approximately 35% of Valio’s turnover comes from export and subsidiaries. Valios exports covers 30% of the whole Finnish food export
This qualitative case essay analyzes how sanctions programs can impact globally acting companies like Valio when nations try to pursue their political ambitions. It is built in chronological order with an analysis of OOO Valio Russia and its operations followed by the operations of Valio during the crises and to later on the future possibilities of OOO Valio Russia.
4.1 Valio
Valio is 110 years old Finnish dairy company with long history in international business and it is also known of it’s fresh innovations in dairy products. Valio is owned by Finnish milk producers who will gain the profits by “Milk return” which tells how well Valio can pay for each produced litre of milk (*“Milk return” = revenue - other expenses except depreciations equal to producer price paid for owners and shareholder loans, ** “Milk return”= Milk return - financing needs for investments / produced raw milk). In 2014 Valios turnover was €1,950 million and it employed 4,375 employees and in Russia on average of 475 persons. In 2014 Valio made worth of €152 million production investments. (www.valio.fi) …show more content…
The same price for raw milk is paid for everyone regardless the amount of produced milk or the location and all the raw milk is received from the owners. (http://www.valio.fi/)
Valio has five foreign subsidiaries. They are located in Sweden, Russia, Baltic countries, China and in United States. Approximately 35% of Valio’s turnover comes from export and subsidiaries. Valios exports covers 30% of the whole Finnish food export