Case study solutions by top business students. Forward Integration or Horizontal Expansion? Celulosa Arauco is a Chile-based producer of pulp sold on open market and wood products. As one of the largest producers of pulp market, it is looking into heightening its capacity.
The fact that Chinese characters are not standardized across the different provinces should also add to a long-term consumption of paper. Cutting the current dividend and transforming the company into lean, efficient, well-managed segments with appropriate oversight is crucial at this point.
Here are possible transformations that Arauco could proceed with: Second, Celulosa-Arauco can proceed by changing operations.
One alternative to proceed with this transformation would be to migrate out of the political and legal pressures. Celulosa-Arauco can explore diversifying their operations to other countries, possibly those with more stable political policy. Such a migration requires logistical concerns and expenses.
In order for Celulosa Arauco to sustain success or even thrive in this changing market, it would have to undergo a transformation.
Forestry operations, although still a sustainable market, is undergoing greater scrutiny due to raising environmental concerns. Celulosa-Arauco would not be able to sustain success if they continue to just suspend or close saw mills as that results in loss of profits and investment.
Forward Integration or Horizontal Expansion? Porter and Jan W.Arauco (A): Forward Integration or Horizontal Expansion? forest management, and pulp. Two years later in , COPEC purchased Celulosa Constitucion, merging the two entities to create Celulosa Arauco y Constitucion SA (referred to as Arauco).
barnweddingvt.com T+ barnweddingvt.com T+ barnweddingvt.com Fitch Affirms Ratings of Celulosa Arauco y Commercial Metals Company to Acquire Australian Long Products Distributor G.A.M.
Steel Pty. Ltd. in Expansion of Including Integration with. Arauco Argentina S.A.: the Corporate Family Rating (CFR) was affirmed at B1 and the rating of the senior unsecured notes, guaranteed by Celulosa Arauco y Constitucion S.A.
(Baa3 stable), was affirmed at Baa3. The outlook of the issuer was changed to positive from stable and the outlook of the notes remains stable.
and will be the first. Ramon Casadesus-Masanell is the Herman C. Krannert Professor of Business Administration at the Harvard Business School.
He joined HBS in where he has taught the required MBA Strategy course, an elective course on Competing Business Models, and . Arauco (A): Forward Integration or Horizontal Expansion? in barnweddingvt.comsa Arauco is a major Chilean producer of market pulp and wood products.
would be better served by a forward.