Daniel Achondo S. A. business case: the crossroads of growth

  • Ismael Oliva Universidad de Chile

Abstract

At the beginning of March 2010, the general manager of Daniel Achondo S. A., together with its executive committee, was preparing the first board of directors of the year. The group had experienced a gradual process of growth since its creation in 1961, becoming a benchmark company in the Chilean automotive market. However, Daniel Achondo S. A., whose development was under a closed and family corporate governance, faced new and important strategic challenges regarding how it should grow. it was well positioned, along with the Volkswagen brand, in its target segment; it had improved the organizational structure and consolidated a collegiate corporate governance; but for CEO Daniel Achondo Faz the question of diversification persisted. Among the options he was considering at the time were: continue to grow exclusively with the Volkswagen brand, or take the distribution of another car brand
Keywords Case study, Strategic challenge, Business growth, Diversification decisions
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How to Cite
Oliva, I. (2011). Daniel Achondo S. A. business case: the crossroads of growth. Estudios de Administración, 18(1), 83-121. doi:10.5354/0719-0816.2011.56374
Section
Educational Cases
Published
2011-06-30