Conference Presentation | 22 Jul 2007

Clear and Present Danger: The Failure of Political Institutions, Planning, and New-venture Survival

Keywords: Government and Politics; Failure; Planning;

Language: English

Format: Print

Citation:

Hiatt, Shon R., and Wesley Sine. "Clear and Present Danger: The Failure of Political Institutions, Planning, and New-venture Survival." Paper presented at the Cornell-McGill Conference on Institutions and Entrepreneurship, Ithaca, NY, July 22, 2007.

This case is about Colbún, Chile's second largest electricity generator, which is facing significant uncertainty regarding the cost and availability of alternative energy sources. Problems with the contracted supply of natural gas and the volatility of oil prices, coupled with pressure from collective activists, force Colbún to revise its business strategy and its sourcing mix. The case also deals with the pros and cons of various energy sources in view of their perceived environmental impact. The company's CEO, Bernardo Larrain Matte, has to take all these different considerations into account when planning Colbún's future, especially in the light of new opportunities and challenges posed by global climate change. The case analyzes the operations of Colbún to illustrate the complexities associated with conducting business under the influence of global energy markets, political uncertainty, and environmental activism.

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Clear and Present Danger: The Failure of Political Institutions, Planning, and New-venture Survival

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