Lucchetti Harvard Case Solution & Analysis

Chronicles experience Lucchetti, a subsidiary of Quinenco, as it has expanded from its historically strong inner fortress in Peru. Lucchetti, pasta company, has grown to the point where there was no room for expansion in the Chilean market. Peruvian market, however, looked very promising. Thus, in 1996, Lucchetti Peru was born. By the end of 2003, however, the new state-of-the-art pasta plant is now abandoned. Management of the company is considering whether to leave Lucchetti Peruvian market as a whole and absorb the $ 150 million write-down or, conversely, to continue to build a new plant to exploit what is left of the market share Lucchetti, despite the significant additional investment is required. If it was for a good strategy suffers from Murphy's Law? Was it something that they should have known, or some point where the team made a wrong decision? The lesson to be learned from this unfortunate Peruvian company was unclear, but they wanted to apply these lessons to future domestic and international business expansion. "Hide
on U. Srinivasa Rangan, Ed Cale, David Wylie Source: Babson College 25 pages. Publication Date: January 1, 2004. Prod. #: BAB104-PDF-ENG

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