Deals with the hands-on management of a difficult situation facing the subsidiary company of a multinational corporation (Tetra Pak) in a developing country (Argentina). The situation originates from a major economic, social, and institutional dislocation that jeopardizes the subsidiary company's existence. Local dollar-denominated credits and liabilities were converted on a 1:1.40 ratio, while obligations held with foreign entities continued to be enforceable at the new speed of 1:3.
The catastrophe led to the impoverishment of a substantial part of the Argentine people, and to an institutional dislocation where the rule of law was shattered in the country, hence presenting challenges not only related to the present situation, but also to the future of the operation. The catastrophe bore effects for Tetra Pak Argentina on both ends of its value chain, involving customers and providers. Its growth is focused by Tetra Pak on developing countries where it feels there is room for a valuable business, and top market positions are attained by it. Shows how the foreign firm must contend with difficult domestic situations, where the levers of control are beyond its reach. The existence of worth after the disaster turns out to be a relevant consideration.
Tetra Pak Argentina, Spanish Version case study solution
PUBLICATION DATE: September 06, 2007 PRODUCT #: 709S09-PDF-SPA
This is just an excerpt. This case is about STRATEGY & EXECUTION
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