12 Doing Biz in LA Notes

12 Doing Biz in LA Notes - Doing Biz in LA Notes 5/14/09...

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Doing Biz in LA Notes 5/14/09 What should Southern do? Most of its profits come from the United States However, they don’t want to miss the boat as far as growth in emerging economies is concerned; they want first mover advantage The last ones to privatize were strategic industries o Power, water, mining (in cases like Chile’s) Southern did a good job of cultivating a good relationship with CEMIG before the bidding process started; this action is important Certain services are inherent/natural monopoly However, relying heavily on a relationship with a gov’t or entity also has risk o Competitors could cry foul because they may believe winners had an unfair advantage; those who did not start early in the relationship-building process could lose out o There’s a potential for backlash even from the press o The entity could go out of power (esp. if it’s a political party) o When evaluating a concept, you have to set sunk costs aside to
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This note was uploaded on 12/27/2009 for the course IRPS IRGN 490 taught by Professor Marydelmege during the Spring '09 term at UCSD.

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12 Doing Biz in LA Notes - Doing Biz in LA Notes 5/14/09...

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