Product details

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Abstract

The Estonian subsidiary of Lars Krogius, a Finnish shipping services company was started in 1994. Although headquartered in Tallinn, Krogius- Eesti recently expanded operations with a new office in Riga, Latvia. The management of the parent company realized that having a presence in major ports of the Baltic rim was of strategic importance as cargo volumes throughout the Baltic ports were steadily increasing. In the light of this, the management considered new subsidiary operations in Lithuania and the Russian enclave of Kaliningrad by the spring of 1998. However, this conflicted with the subsidiary''s strategy since it wanted to focus on Estonian operations and the new office in Riga. The richness of this case could be considered its combination of business and economic data within the setting of the political and economic transition economies of the Baltic rim. This case will hopefully reveal some of the characteristics of business in the Baltics and the complexities inherent to it. The case stands alone but an excellent combination comes from utilizing material from this case with case (A) - Oy Lars Krogius AB, (301-102-1) which illustrates the relationship between a subsidiary and a parent company. What might appear to be optimum from the point of view of the subsidiary, may not be in the principal interest of the whole group.
Location:
Industry:
Size:
Medium
Other setting(s):
1998

About

Abstract

The Estonian subsidiary of Lars Krogius, a Finnish shipping services company was started in 1994. Although headquartered in Tallinn, Krogius- Eesti recently expanded operations with a new office in Riga, Latvia. The management of the parent company realized that having a presence in major ports of the Baltic rim was of strategic importance as cargo volumes throughout the Baltic ports were steadily increasing. In the light of this, the management considered new subsidiary operations in Lithuania and the Russian enclave of Kaliningrad by the spring of 1998. However, this conflicted with the subsidiary''s strategy since it wanted to focus on Estonian operations and the new office in Riga. The richness of this case could be considered its combination of business and economic data within the setting of the political and economic transition economies of the Baltic rim. This case will hopefully reveal some of the characteristics of business in the Baltics and the complexities inherent to it. The case stands alone but an excellent combination comes from utilizing material from this case with case (A) - Oy Lars Krogius AB, (301-102-1) which illustrates the relationship between a subsidiary and a parent company. What might appear to be optimum from the point of view of the subsidiary, may not be in the principal interest of the whole group.

Settings

Location:
Industry:
Size:
Medium
Other setting(s):
1998

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