In this paper we will consider a company in Slovakia, with above average industry performance. Geographic
accessibility of the company’s major markets in WE and CEE, together with low cost operations, represent the
major competitive advantages of the firm. Declining markets, existing production, overcapacity in Europe, and
increased imports from Asian low cost countries intensify competition and enhance further industry
consolidation.
The company has a long-term history of local ‘big successful enterprise operating in a mature industry and
stable CEE environment, with all implications on organizational structures, systems, company culture, processes,
leadership and peoples’ mindset. After privatization of the company in mid 1990’s, international company tookover
management control (50% shareholder). The company became strategic business unit (SBU) of the
multinational enterprise (MNE). The integration of the company into MNE structures triggered massive
restructuring and downsizing processes within this SBU and implied cultural clashes. On the other hand the
integration created the opportunity to utilize the synergies from common distribution channels, procurement and
production planning.