Endesa-Chile Project Essay

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ENDESA Chile - International Plans for Chilean Electricity ENDESA Chile, the leading electric company for the nation of Chile faced the opportunity to begin truly expanding by taking their company international in the early 1990’s. However, The early 1990’s were a tumultuous time for South America, as each of the South American nations faced globalization, modernization, and changing political landscapes. Chile at the time was at the forefront of these changes, being one of the first South American nations to stabilize both economically and politically. ENDESA was a shining example of Chile ability to smoothly transition state-run companies to private ownership without sacrificing efficiency or growth. Further adding to ENDESA’s image of stability was the fact that “during the 45 years that ENDESA was controlled by the state, it only had eight managers.” The first CEO of ENDESA Chile without government involvement was Jaime Bauza, a former civil-engineer and former manager of one ENDESA’s competitors. In tandem with ENDESA president, Jose Yuraszeck, Bauza began to look for opportunities for ENDESA to grow and become more competitive. Together the CEO and President of ENDESA put together a 10 year investment plan that provided a roadmap for ENDESA’s expansion both inside and outside of Chile. Within the first year, ENDESA invested over $96 million dollars in Argentina clearing the path for future investment into neighboring countries in South America. However, there were several issues that stood before ENDESA before it could begin to internationalize in earnest. The following is a summary and analysis of ENDESA’s internationalization policy, encompassing their justifications, implementation, and challenges faced. Company Profile ENDESA, short for the Empresa Nacional De Electricidad, was created by the Chilean government in 1943 to implement
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