14 Doing Biz in LA Notes

14 Doing Biz in LA Notes - o Serious long-term CSR projects...

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Doing Biz in LA 5/21/09 Energy sector: Endesa de Chile Another option would be to go but go slowly o Endesa should place a lower bid so that there’s a greater chance of the project being profitable o If you revalue and win, then you don’t have as much money on the table What do you tell the consortium of investors that you have all excited about this project? Deals fall through all the time, so the consortium would not be so disappointed if Endesa did not follow through There could be a populist backlash later on, so Endesa should’ve taken this factor into its risk assessment o A later gov’t could take measures against a company like not allowing it to implement efficiency measures like cutting jobs Investment in Peru as a diversification strategy for Endesa is another possibility It’ a good idea to offer electricity to small towns along the way so they don’t steal it or bomb it o Working with local partners (church groups, community groups, etc.) to help control certain issues and avoid populist backlash
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Unformatted text preview: o Serious long-term CSR projects as a way to avoid backlash; make company an important part of the communities that you inhabit What about interconnectivity? o If you take the long view, then you can afford to invest for other reasons o Interconnectivity could be an important pay off in the long run How to hedge against a regime change? o Could you make certain connections with people in the bureaucracy so they can help you out in the future? o In U.S., the bureaucracy is fairly stable and apolitical but in LA, appointments change with regime change o The idiot brother-in-law has to have a job o However, bureaucracy can often say no more than they can say yes But want them on your side so you can get things done B.C. before Chvez! We will have a guest speaker from a PR firm on June 2 o You have to let people know about your CSR activities...
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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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