1. Do you agree with S&T’s decision to expand internationally? Why or why not?

2. What analysis would you need to run or what questions would you need answered?

3. What advice would you give S&T regarding their intention to become a vibrant global company?

This case describes the organization and structure of a small European firm providing technical solutions to the Swedish defense industry in 2010. The material is cross-functional, combining crucial issues from strategic management, organizational behavior, and general management in a global context. It follows company cofounders Rune Thyselius and Magnus Sjöland from start-up to the development of the largest mid-sized defense firm in Sweden and offers unique opportunities to discuss the complex interaction of market forces, the control and management of valuable resources, and organizational issues—in particular its structure and culture.

Founded in Stockholm, Sweden, in 1989, Sjöland & Thyselius (S&T) mainly worked in the Swedish defense industry, but it also served civilian customers. The conglomerate structure of S&T was a result of the opportunistic growth history of the firm, in turn reflecting the entrepreneurial spirit of its founders. This illustrates challenges common to firms suddenly facing international success. A break-through in international sales with an order of a highly advanced surveillance and evaluation system for missile training ranges to the United Arab Emirates (UAE) had Thyselius, then managing director, reviewing the structure of the organization, its strategic focus, resource allocation, and the industry and competition—in short, the structure and strategy that would bring S&T successfully into the international market.

In the end, students should learn that beneficial conditions for internationalization at Sjöland & Thyselius should include divesting several firms not serving the core competencies, creating a new structure for handling internal affairs, and securing synergies between firms instead of relying on culture as a unifying tool.