Fundo los Ulmos: a crossroad in the Chilean milk industry

  • Juan Pablo Torres Departamento de Administración, Facultad de Economía y Negocios, Universidad de Chile
  • Alexandra Guidi Bresciani Facultad de Economía y Negocios, Universidad de Chile
  • Francisco Sanchez Facultad de Economía y Negocios, Universidad de Chile

Abstract

The case introduces the reader to the problems of a family business in the milk industry, Fundo Los Ulmos (FLU), which had to choose between two main alternatives to survive. The first option was to sell all the land belonging to the family business – a highly emotional situation for the person making the decision. The second option was to conduct an operational analysis intended to improve dairy management based on a model that optimizes milk production. This case highlights the typical problems of a family business where the decision-maker must deal with decisions that involve both analytical and socioemotional aspects. This case is especially relevant for determining competitive strategies in Latin American family businesses.
Keywords Dairy Sector, Cost Minimization Model, Optimization
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How to Cite
Torres, J., Guidi Bresciani, A., & Sanchez, F. (2020). Fundo los Ulmos: a crossroad in the Chilean milk industry. Estudios de Administración, 27(1), 16-30. doi:10.5354/0719-0816.2020.56970
Section
Educational Cases
Published
2020-05-25