Tetra Pak Argentina Harvard Case Solution & Analysis

Transactions with manual control of the difficult situation facing the multinational subsidiary (Tetra Pak) in developing countries (Argentina). Situation is a major economic, social and institutional breakdown that threatens the existence of the subsidiary. Argentina defaulted on its sovereign debt and the devaluation of the peso by more than 200%, but differentiated processing speed FX, which should be applied in a variety of transactions, depending on the jurisdiction of creditors and debtors. The local dollar loans and liabilities were transferred to the ratio 1:1.40, while the obligations undertaken with foreign organizations continues to be a force at the new rate of 1:3. The crisis led to the impoverishment of much of the Argentine population, and institutional breakdown, where the rule of law in the country was destroyed, creating problems not only related to the current situation, but also for the future of the operation. Crisis bore consequences for Tetra Pak Argentina at both ends of the value chain, including suppliers and customers. Tetra Pak is focusing its growth in emerging countries, where he feels there is a place for valuable business, and he achieves a leading position in the market. Shows how foreign firms have to cope with a difficult domestic situation, when the controls are out of his reach. Existence of a value after the crisis is the appropriate consideration. "Hide
by Tarun Khanna, Krishna G. Palepu, Gustavo A. Herrero Source: Harvard Business School 17 pages. Publication Date: September 6, 2007. Prod. #: 708402-PDF-ENG

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