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In only 10 years Friesland Hungaria has grown from a small joint-venture (Dutch-Hungarian) into the dairy industry leader. The case is set a few months prior to the 2004 European Union (EU) enlargement, by which time trade liberalisation and business integration across Central European countries began wanting new growth strategies. For this reason Friesland Hungaria began acquisitions in neighbouring countries such as Slovakia, Romania and Czech Republic. The case: (1) describes the growth of the company in a rapidly changing environment; (2) analyses the effects of the EU enlargement on the dairy industry; (3) discusses which organisational structure would best support future strategy; and (4) highlights the difficulty of how to integrate existing Hungarian operations into the newly created Central European Group, while at the same time facing rising competition on the domestic market. The case helps in understanding the environment-strategy-structure relationship. The case may be used in single or double sessions on courses on competitive and corporate strategy, international business expansion, EU integration, general management and organisation. The teaching note provides ample guidelines for teachers less familiar with Central Europe and contains teaching plans for graduate or more senior course participants.