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Innovating at Arauco: Chile's Largest Forestry Company

Carlos Osorio; Pratima Bansal;

商品編號:9B16M139
出版日期:2016/09/07
再版日期:2016/09/07
商品來源:Ivey
商品主題:General Management/Strategy; International Business
商品類型:Case (Field)
涵蓋議題:innovation;forestry;sustainability;strategy
難易度:4 - Undergraduate/MBA
內容長度:8 頁
地域:Chile
產業:Agriculture; Forestry; Fishing and Hunting;
事件年度:2010

On February 27, 2010, Chile was razed by a three-minute earthquake of 8.8 magnitude on the Richter scale. More than 500 people died and nearly 400,000 homes were destroyed. The overall cost was estimated at US$20 billion. Over 70 per cent of the people who had died in the earthquake were from the coastal town of Constitucion. Celulosa Arauco y Constitucion (Arauco), a Chilean-based forestry and timber company, was Constitucion’s largest employer. Arauco’s pulp mill and major sawmill in Constitucion was completely destroyed, and all but one of the 34 remaining manufacturing facilities were wiped out. The company’s executives moved rapidly to respond to the crisis and create a plan to rebuild Constitucion. By the end of April 2010, Arauco’s pulp business in Chile was operating at 70 per cent capacity and in May, the company’s pulp mill in Constitucion reopened. However, the disaster had left an indelible imprint on Arauco’s vision and values. The company had been thinking about pursuing further innovation. The company’s values of efficiency and productivity had been tested with an environmental disaster in 2005, but innovation was still limited. Then in 2009, an opportunity provided Arauco with the ability to engage innovation on a larger scale. But the earthquake and rebuilding efforts now required the company’s full attention. Should Arauco proceed with its innovation, and if so how would Arauco balance these two different objectives?

教學手冊:8B16M139;
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