Arauco forward integration or horizontal expansion case solution, forward. Arauco was formed through a merger between industrias arauco and celulosa constitucion in 1979. This short case looks at the company in late 2007 after it has decided to invest in a brazilian joint venture. At fern fort university, we write innovating at arauco. Little or no growth domestically italy export market experiencing large growth 2025% per yr in european. Dec 28, 2015 harvard graduate school of education 49,288 views 1. In the current scenario, arauco has two options available for expanding via integrations pertaining to forward and horizontal expansion. Papel in brazil by ramon casadesusmasanell, jorge tarzijan, jordan mitchell harvard business school case study case studies solutions and analysis for harvard. Forward integration or horizontal expansion case solution, celulosa arauco is a major chilean producer of market pulp and wood products.
Net present value case solution,net present value case analysis, net present value case study solution, revision. Slab teams bring a fresh and grounded perspective to your organizations strategy and decision making. Vikram dahiya, business development manager at vikilinks softwares pvt ltd follow. Introduction the pulp industry is a promising industry with profit margins as high as 31%.
The company is also the largest producer of forestry and wood products in the region. What are the sources of arauco s competitive advantage. Case hbs case collection february 2005 revised march 2009. How would you assess the degree of integration within company. Introduction arauco is the largest softwood market pulp producer in latin america. He is currently the faculty cochair of the schools technology and operations management unit and chairs the mba required course of the same name. Video watch the latest explainer videos, case study discussions, and whiteboard sessions, featuring ideas and practical advice for leaders. Papel in brazil excel file, subjects covered competitive advantage. Forward integration or horizontal expansion case analysis, arauco a. Presently, arauco s president and ceo alejandro perez is looking forward to the second phase of the project, which would include the companys sixth market pulp plant. The company has plunged into a variety of wood products like panels, mediumdensity fiberboard, and other remanufactured wood products contributing to about 50% of arauco s income. Arauco ltd forward integration or horizontal expansion. Arauco hbs 9705474 individual case writeup araucoa. Araucos competitive advantages were part of the companys corporate strategy, they have a strongly relation to each part of competitive advantage created by group 3 resti sari ronald rully paper case.
Slab projects connect your organization with mit research, providing insight and rigor to your sustainability strategy. Celulosa arauco is a major chilean producer of market pulp and wood products. Major hbr cases concerns on a whole industry, a whole organization or some part of organization. Teaching the hcl tech casestudy at harvard business school. Forward ntegration of horizontal expansion celulosa arauco elected to continue a strategy of horizontal. Papel in brazil by ramon casadesusmasanell, jorge tarzijan, jordan mitchell harvard business school case study case studies solutions and analysis for harvard business school. Arauco a forward integration or horizontal expansion case. The case acts as an epilogue and it allows students to the concept of integration forward to paper again in the brazilian context. If you are looking for mba, executive mba or corporate professional level recommendation memo then feel free to connect with us. Strategic analysis of starbucks corporation 1 introduction. Strategic analysis of starbucks corporation harvard university.
Case analysis araucos swot analysis strength weakness company value chain economic condition have a direct, negative effect on pulp. Harvard business case studies solutions assignment help. Jan 23, 2012 arauco ltd forward integration or horizontal expansion 1. This brief case resembles the company in late 2007, after he decided to. Harvard business school case study assignment help. Barilla spa harvard business case analysis essay example. Starbucks corporation, an american company founded in 1971 in seattle, wa, is a premier roaster, marketer and retailer of specialty coffee. Forward integration or horizontal expansion case arauco is a major chilean producer of pulp and wood products. Forward integration or horizontal expansion case solution, arauco a. Arauco is an export based company with north america representing its most valuable. Case solution celulosa arauco is a chilebased producer of pulp sold on open market and wood products. Arauco case study this case analysis was completed by lily and roger 1.
Perezs decision to grow arauco through horizontal expansion is reflected in the cons of vertical integration and the pros of horizontal expansion, as well as the companys current. Business case write ups are designed to be confusing and contain superfluous information. Buy books, tools, case studies, and articles on leadership, strategy, innovation, and other business and management topics. Arauco a forward integration or horizontal expansion.
Harvard business case analysis in this course you are required to analyze one harvard business case study and answer some questions related to this case study. Arauco case study porters five forces analysis essay topics. Teams add shortterm capacity to your firm, conducting analysis that can spur further investment and capability building. Because of the groups composition, the case analysis will have two parts. Options generated three core options were generated from the case. Arauco ltd forward integration or horizontal expansion 1. Forward integration or horizontal expansion case solution celulosa arauco is a major chilean producer of market pulp and wood products. Papel in brazil case study analysis, subjects covered competitive advantage corporate strategy decision making expansion. Michael porter teaches at the harvard business school.
Arauco supports the fiber requirements of these operations through its extensive ownership of fast growing radiata pine, eucalyptus and taeda pine plantations. Pulp and paper industry 950 words 4 pages michael porters five forces model summary and interpretation by prof. Starbucks corporation, an american company founded in 1971 in seattle, wa, is a premier roaster, marketer and retailer of specialty coffee around world. Arauco should be looking forward for the horizontal expansion in its business. Harvard case 9 702 469 on 2002 apple computer, inc. Johnson 2010 fall company analysis celulosa arauco is chiles largest pulp producer, producing over millions ton per year. Background arauco was formed through a merger between industrias. Arauco forward integration or horizontal expansion case. Net present value in this case, npv is calculated by comparing the cost. Industry analysts warned that the buying spree of 1998 and 1999 would leave sales flat or declining in 2000 and beyond.
He is currently the faculty cochair of the schools. After that, the company began its expansion like purchasing land and plantations and installing new. What are the sources of competitive advantage for celulosa arauco. In order to make the right decision, a deep analysis of the business. Final paper arauco economies of scale mergers and acquisitions. The product for a case study can be drawn from your own expert experiences e. In order to increase its capacity, the company has launched in 1980, an. Perezs decision to grow arauco through horizontal expansion is reflected in the cons of vertical integration and the pros of horizontal expansion, as well as the companys current industry positioning and its area of expertise.
Barilla spa harvard business case analysis essay sample mature product by 1990. After that, the company began its expansion like purchasing land and plantations and installing new technology, purchasing the company alto parana in argentina in 1996, purchasing its third mill in chile in 2000, and building new plant which called. Teams add shortterm capacity to your firm, conducting analysis that can spur further investment and. Why did arauco move from the onlypulp business to a set of different businesses. Arauco began to expand since 1980s such as purchasing. The porters five forces model is widely being used in the business world and is proved to be a really useful and effective tool in this regard. Celulosa arauco is a chilebased producer of pulp sold on open market and. Harvard graduate school of education 49,288 views 1. Papel in brazil case study analysis, subjects covered competitive advantage corporate strategy decision making expansion vertical integration by ramon casadesus masanell, jorge tarzijan, jor.
Expansion, integration, diversification a arauco ltd. Presently, araucos president and ceo alejandro perez is looking forward to the second phase of the project, which would include the companys sixth market pulp plant. Does the alto parana project help you answer this question. Papel in brazil case solution, this is part b of the arauco. Papel in brazil excel file, subjects covered competitive advantage corporate strategy decision making expansion vertical integration by ramon casadesus masanell, jorge tarzijan, jor. Now, alejandro perez, araucos president and ceo, is seeking approval for the second phase of the project, which would include the companys sixth market. Shapiro is the philip caldwell professor of business administration at the harvard university graduate school of business administration. Oct 15, 2012 the case analysis for the prefinal term will be done in groups, composition of which is the same with the group composition during the midterm case analysis. Pulp is a commodity product which is frequently traded. Expansion, integration, diversification a arauco ltd forward integration or horizontal expansion. Net present value in this case, npv is calculated by comparing the cost and saving result in the implementation of the new security syst. Individial case analysis of arauco han zhao mgt 491dr.
The case analysis for the prefinal term will be done in groups, composition of which is the same with the group composition during the midterm case analysis. Forward integration or horizontal expansion case solution,arauco a. Celulosa arauco case study solution case study analysis. Case summaries for strategic management classlecture 2.
Forward integration or horizontal expansion case study solution, celulosa arauco is a major chilean producer of market pulp and wood products. During your first read of a case, youll likely miss key points and have trouble putting the. Should arauco own both forests and pulp production facilities. Arauco s competitive advantages were part of the companys corporate strategy, they have a strongly relation to each part of competitive advantage created by group 3 resti sari ronald rully paper case. My experience is that its best to spread out the timing between your readings of the case. Background arauco was formed through a merger between industrias arauco and celulosa constitucion in 1979. Case study arauco a forward integration or horizontal. In order to increase its capacity, the company has launched in 1980, an aggressive expansion plan by purchasing lands, plantations and installing new technology equipment. During your first read of a case, youll likely miss key points and have trouble putting the big picture together.
As of early 2004, arauco is the third largest producer of market pulp pulp sold on. Arauco individial case analysis of arauco han zhao mgt 491. Perez is debating whether the company and its shareholders would be better served by. Perez, the president of the chilean forestry company. Harvard case study solution and hbr and hbs case analysis.
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