...Taylor Covert (3/9/16)- ISP Country Analysis Report I. Country Introduction: Chile v. Peru Extending 2,880 miles down the western coast of South America, between the Pacific Ocean and the Andes mountains, is the remarkably slender country known as Chile. Due to its large geographical scale, encompassing 38 degrees in latitude, Chile has a range of climatic zones, from the arid Atacama Dessert in the north to the subtropical regions in the south. These diverse climates and topographies provide Chile with a wealth of natural resources including timber, iron ore, hydropower and most prominently, copper, an element known for its inherent ductility and electrical conductivity. Beginning in the mid 1960s, concurrent with China’s exploding GDP growth rate, the value of copper in the modern industrial market place began to soar due increased global demand. Chile, whose copper reserves account for 28% of the world’s total supply, experienced the positive economic impact from this increased demand, as seen through the country’s GDP growth of over 400% between 1970 and 2014, adjusting for inflation, (Appendix 1). Coupled with the solid GDP growth over the last 45 years, Chile was also able to establish strong institutions, an efficient government with relatively low levels of corruption, and solid macroeconomic stability, which subsequently established Chile as the most competitive economy in Latin America according the 2015 Global Competitiveness Report (GCR) (Appendix 2). Directly...
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...Part One: The Chile Wine Industry The Chilean wine industry has experienced various transformations over the past 30 years – its quality revolution led by the complete technological renovation during the 1980s, the export boom of the 1990s, and the new terror developments during the 2000 decade. This transformation has allowed a new generation of talented viticulturists and winemakers to capitalize on Chile’s viticultural paradise and to produce World Class Wines of unique character and personality. Chile is the world’s eighth largest wine producer and the fifth largest exporter, reaching a market share of 8% by volume of the global international wine market at the close of 2010. However, and most importantly, Chile exports 70% of its wine production, making it the world’s most globalized wine industry, with great flexibility, innovation and a long-term commitment to quality and service. With 150 destination countries and 1.5 billion consumers for each year, Chilean wines are positioned as the country’s most emblematic and best known world ambassador. In the late 1970s and early 1980s, Chileans adopted advanced technology and invested in new machinery for optimizing the winemaking process in the field. The winemaker offered an innovative higher-quality product that was conducive to the development of new wine varieties. Later producers also perfected their wine cellars and invested in better labels and packing, such as boxes, bottles and cartons, that were more attractive to...
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...Analysis & Recommendations We estimate the range of values for the 48% common equity stake of ACS to be between $647 to 684 million under the Damodaran Modified World CAPM approach .This range of values is based on WACC values that range between 6.74% and 7.03% when the cost of equity capital is calculated using the Damodaran Modified World CAPM. At these valuations, the range of the total value of the 100% common equity of Autopista Central goes from $1.3 to 1.4 billion. This range of values is significantly higher than the amount of invested capital in the project of $813 million (including subordinated debt). Besides the fact that asking for an initial high price is a good idea in negotiations, we believe that ACS should ask for the highest value obtained in the Damodaran Modified World CAPM model or $685 million. This is recommended because we believe that Abertis and Santander should pay a control premium of 10 – 20% given the macro economic conditions of the time and the strategic value that the Autopista Central asset means for each prospective buyer. If we apply the 20% control premium to the highest range of the EHV based valuation of $556 million, we obtain a value of $667 million. This value is within range that ACS will be pressing to use under the more favorable discount rate that using the Damodaran Modified World CAPM provides them. Abertis, who is an expert in managing existing toll roads, would presumably be able to generate cost synergies if not...
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...1. Was Falabella prepared for internationalization in 1991? (Justify your response with the readings). “Falabella’s aim is to become the leading retail operator in Latin America, both in terms of presence as well as financial results, combing world-class management quality with commitment to local communities” At that time Chile had a relatively mature and saturated market, so Falabella decided to expand and open their first store in Mendoza, Argentina. As a Chilean company which had been in the market for more than a century, they understood the local market very well and had a value proposition based on local preferences. Falabella knew how to create value for Chileans and thought it would work the same way in Argentina, due to previous experiences with tourists buying in department stores and decided to replicate the same proposition, assuming there would be similar preferences and consumer tastes in both countries. Falabella was not prepared for internationalization and confronted a completely different environment than the one in Chile. Legal norms, difficulties of importing, consumer preferences and shopping habits turned out to be totally different and were not understood before they decided to internationalize and resulted in lower sales than the expected. Falabella didn’t fully understand the Argentine culture and the importance of the European influence and heritage on their culture. Exclusivity was the most important thing at the time of selecting and buying their...
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...elements are supplemented with Political and Chance factors which influence all of them. The model explains the relationship between related industries and how this helps successful development. Porter believed that a healthy competition would drive the firms to be innovative. With a competitive market, people have more choice and this provides great market research availability to find out what people want. Fig.1, Michael Porter, Porter’s National Diamond (1990) Throughout this report an analysis of the Chilean wine industry’s competitiveness at an international level will be carried out. Care will also be taken when considering how well the company in question will be suited to expanding into this market. The diagram above, figure 1, displays Porters National Diamond which will be the main focus for the analysis. Figure 2 shown below shows Porter’s National Diamond adapted to suit the Chilean wine industry. Fig.2 (Ayala, 2013) Chile has a market-oriented economy characterized by a high level of foreign trade and a reputation for strong financial institutions and sound policy. According to the CIA World...
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...multinational strategy and to be well-known worldwide. The countries of potential choice are Mexico and Chile. The analysis has been done by comparing the overall information and in-details of each indicator. From evaluation of indicators of both countries, such as economic, social, legal and infrastructure, the analysis has shown that the economy of both countries are quite similar. However, the infrastructure, technological and legal environment seem to be better in Chile. As the Chilean government support the foreign investment in textile sector by promoting the education, technological development and the special policy especially for textile. For instance, tax reduction and promoting education in labour forces. Thus, Chilean labour forces would have the better off in comparison with Mexican labour forces. Another highlighted indicator in the country comparison - which the recommendation has inclined - is infrastructures. Both countries have the similar relative figures in number of infrastructure such as roadway, waterway and airports. But the infrastructure of electricity and internet/telephone networks seems to be at a higher level in Chile. The analysis of relevant regulations which affect Feltex’ direct investment in Chile shows that the company can gain a huge amount of benefits from the high integration in the international trading and investment framework. Chile is a member of the WTO and has signed several bilateral and regional free trade agreements. The country...
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...Knowing Your Audience Paper and Communication Release MPS BCOM/275 July 7, 2014 JGC Knowing Your Audience Paper and Communication Release Failure to research audience demographics will, most likely, result in an ineffective reception of any message. However, performing an analysis of an audience and tailoring the presentation to meet its needs can mean the difference between triumph and disaster in how listeners receive and decode information. On August 5, 2010, the main entrance into the San José Mine, near Copiapó, Chile, collapsed trapping 33 miners approximately 2,300 feet underground for more than 2 months. The miners’ family members, and by extension, the world, grew increasingly concerned about the well-being of the men as there was no way of determining the actual state of the miners initially. On August 22, 2010, after digging a small hole through the roof the mine’s shelter area, a message was sent to the earth’s surface, via note, stating that everyone was alive. From the onset of the accident, the Chilean government recruited the services of mining industry professionals and on October 13, 2010, the first miner was lifted out of the mine. All 33 men were safely retrieved in less than 24 hours and reunited with their families. The way in which the Chilean government and the enlisted professionals handled the dissemination of information, proved successful in how they wanted the viewing and listening public to receive the messages. When delivering a pertinent...
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...CASE STUDY: “LEADING THE RESCUE OF THE MINERS IN CHILE” COURSE: LDP 604 DESIGN PLANNING AND IMPLEMENTATION NAME: WAIGURU LEILA WANJIRU REGISTRATION NUMBER: L50/76280/2014 AN ASSIGNMENT SUBMITTED IN PARTIAL FULFILLMENT FOR REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF ARTS IN PROJECT PLANNING AND MANAGEMENT. 3RD NOVEMBER, 2014 Chilean Miners’ Rescue On 5th August, 2010 Chile hit the headlines with 33 miners drilling 2300 feet below the surface in a copper and gold mine in Atacama Desert, 800 kilometres North of Chile’s Capital Santiago were trapped by a massive cave- in. Chilean Mining Minister, Laurence Golborne, who had accompanied President, Sebastian Pinera, on a state visit to Quito, Ecuador, got the news at 11pm shortly after their arrival. Golborne informed the president the following morning and flew to Santiago via Peru on commercial flights then took a Chilean Air force flight to Copiapo before a 45-kilometre drive to the mine, arriving on August 7. Golborne, an engineer and entrepreneur, was recruited by the business friendly president who was inaugurated in March 2010 after success as Chief Executive of Censoud A, a large Chilean retail firm. Just 4 months in office with no mining background, Golborne took charge of a widely viewed disaster recovery effort. 69 days later, all 33 miners were rescued. Crew Foreman Luiz Urzua led the 33 trapped miners to form a small society to ration food, preserve morale, and protect their scarce resources. A surface team numbering...
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...Field Study – Chilean Wine Industry Chile country analysis 1. Country Profile: i. Population: 16,634,603. About 90% of them are classified as white people and mestizos. ii. Currency: Chilean Peso (CLP). Current spot rate: 0.001924 USD/CLP iii. GDP: Its estimate GDP for 2013 is $285.703 billion (38th in the world ranking). It had been growing constantly since 1997 until 2009 (global crisis). Adjusting it at PPP (reflects real purchasing power) it rises to $341.914 billion (43rd in the world ranking). iv. Income distribution: Since July 2013, Chile is considered a high-income economy. The percentage of Chileans beyond the poverty line was only 11.5% back in 2009. In addition, 64% of the population benefits from government welfare programs, which include poor people and those in risk of becoming poor. Nevertheless, the income distribution is still far from being equal, as shown by the GINI Index of 0.503 (2011). This index hasn’t varied much for the past 20 years. v. Approach to International Trade: Since early decades after independence, Chile has always had active involvement in international affairs. Consistent economic policies since the 1980’s have contributed to a steady economic growth, much of it thanks to its international trade. It currently has the highest degree of economic freedom in South America (7th in the world). In the past 15 years Chile has also signed free trade agreements with more than 10 countries (including Japan,...
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...CASE STUDY: “LEADING THE RESCUE OF THE MINERS IN CHILE†COURSE: LDP 604 DESIGN PLANNING AND IMPLEMENTATION NAME: WAIGURU LEILA WANJIRU REGISTRATION NUMBER: L50/76280/2014 AN ASSIGNMENT SUBMITTED IN PARTIAL FULFILLMENT FOR REQUIREMENT FOR THE AWARD OF DEGREE OF MASTERS OF ARTS IN PROJECT PLANNING AND MANAGEMENT. 3RD NOVEMBER, 2014 Chilean Miners’ Rescue On 5th August, 2010 Chile hit the headlines with 33 miners drilling 2300 feet below the surface in a copper and gold mine in Atacama Desert, 800 kilometres North of Chile’s Capital Santiago were trapped by a massive cave- in. Chilean Mining Minister, Laurence Golborne, who had accompanied President, Sebastian Pinera, on a state visit to Quito, Ecuador, got the news at 11pm shortly after their arrival. Golborne informed the president the following morning and flew to Santiago via Peru on commercial flights then took a Chilean Air force flight to Copiapo before a 45-kilometre drive to the mine, arriving on August 7. Golborne, an engineer and entrepreneur, was recruited by the business friendly president who was inaugurated in March 2010 after success as Chief Executive of Censoud A, a large Chilean retail firm. Just 4 months in office with no mining background, Golborne took charge of a widely viewed disaster recovery effort. 69 days later, all 33 miners were rescued. Crew Foreman Luiz Urzua led the 33 trapped miners to form a small society to ration food, preserve morale, and protect their scarce resources. A surface...
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...Analysis of Democracy in Brazil and Chile Hagopian vents her frustration towards the democratization of Latin American countries by describing it as “flawed both because it does not take account of differences across the region and because it is overly static” (pg.125). The clarity in transitioning into a democracy in Latin American countries has not been defined uniformly that there are clear differences amongst the effectiveness of democracy in specific countries. Hagopian specifically uses Chile and Brazil as her examples of “the dimensions of Democratic quality.” She uses these two countries as a comparison to distinguish the characteristics of a “good” democracy, which would include both the participation and satisfaction of the citizens of the country. Amongst most of the Latin American countries, Chile and Brazil has become amongst the strongest democratic countries and can become a lot stronger with improvements. However, both countries vary in strengths between different dimensions of quality that defines a “good” democracy. These variances are analyzed by Hagopian to determine the degree of effectiveness by considering accountability, participation and responsiveness between governance and individuals as a reciprocal relationship. Recommendable changes are necessary for both Chile and Brazil to continuously prosper politically, civilly and together economically. Although both Chile and Brazil are developing predominant democratic reputations, their contrasts in democratic...
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...Global Negotiation Article Analysis Shalee K. Kekawa MGT 445 Nov. 21, 2011 Dr. Sanrdra Sessoms-Penny Globalization and technology have played a big part in negotiations and the article that I chose to write about is just one of the many negotiations that globalization has influenced the outcome of negotiations. First, one must know what Globalization is. Globalization is a process of interaction and integration among people, companies and governments of different nations. This process has effects on the environment, on culture, on political systems, as well as on economic development and prosperity that affects societies and people all over the world. Globalization also opens up the boundaries that have existed in the past between countries and provides new opportunities for business ("Cross-Cultural Blog", 2009). Technology also plays a huge role in negotiations and just like globalization; it too has helped influence the outcome of negotiations. With the ever changing tools of technology, machines and systems, negotiations happen every day throughout the world and outcomes often happen through the use of technology. Technology makes businesses able to operate by changing relationships between suppliers, producers, retailers and customers. Gone are the days where negotiating a contract meant that you sat down face –to–face with someone and talked about contracts, and deals. Now days, a negotiation can be met and done in a matter of real time minutes. Technology...
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...Chile Compared to the United States United States Chile Location: Southern South America, bordering the South Pacific Ocean, between Argentina and Peru. Total Land: 756,102 sq. km Coastline: 6,435 km Terrain: Low coastal mountains; fertile central valley; rugged Andes in east Climate: Temperate; desert in north; Mediterranean in central region; cool and damp in south. Border Countries: Argentina 5,308 km, Bolivia 860 km, Peru 171 km Notes: * the longest north-south trending country in the world. * Atacama Desert - the driest desert in the world - spreads across the northern part of the country. * The crater lake of Ojos del Salado is the world's highest lake (at 6,390 m). Natural Advantages: Natural Disadvantages: Severe earthquakes; Active volcanism; Tsunamis * Volcanism - significant volcanic activity due to more than three-dozen active volcanoes along the Andes Mountains; Lascar (elev. 5,592 m), which last erupted in 2007, is the most active volcano in the northern Chilean Andes; Llaima (elev. 3,125 m) in central Chile, which last erupted in 2009, is another of the country's most active; Chaiten's 2008 eruption forced major evacuations. Population Ethnicity * Total Population: 17, 067,369 (July ’12 est.) Religion Age Structure Notes * Literacy Rate: 95.7% * Average Life Expectancy:...
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...1. Introduction This is a summary of the case study of the Chile mining disaster that happened in August 5th 2010. It was once of the most unanticipated disaster that attracted the attention of the entire world. The miners of gold were trapped in the mine for many days. The rescue team was led by a newly elected minister of mining: A successful businessman with little or no information regarding the mining or rescue operations. The dilemma was on how to handle the victims, the relatives of victims, the media and the country at large. This was a matter of life and death. The number of stranded miners was 33. * Identify the key problems and issues in the case study. * Formulate and include a thesis statement, summarizing the outcome of your analysis in 1–2 sentences. 2. Background Chile has been known as one of the leading mineral explorers in the world as well as having numerous mining fields with different minerals. Mining has been extensively been sources of income thus many people are engaged in mining. This activity has been descripting as dangerous with many miners losing their life. The number of deaths in the mining field has increased considerably in the past few years up to 2010 as companies continue to breach mining rules and regulations. * Set the scene: background information, relevant facts, and the most important issues. * Demonstrate that you have researched the problems in this case study. Body This body is divided into the...
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...NEW YORK UNIVERSITY Stern School of Business – Undergraduate Division International Study Project (Spring 2007) Latin American Division http://sternclasses.nyu.edu Instructors (jointly teaching all four sections) |Name |Sunder Narayanan |V. Srivatsan | |Office |901 Tisch |KMC 8-85 | |Phone |(212) 998-0541 |(212) 998-0427 | |Stern E-mail |snarayan |vsrivats | |Office hours |By appointment |By appointment | Course Information |Section |C50.0011.04 |C50.0011.05 |C50.0011.12 |C50.0011.13 | |Meeting Time |MW 11:00-12:15 |MW 2:00-3:15 |TR 2:00-3:15 |TR 3:30-4:45 | |Classroom |KMC 4-90 |Tisch UC-63 |Tisch UC-63 |Tisch UC-63 | |Company | ...
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