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This case chronicles the experience of Lucchetti, a Quinenco subsidiary, as it expanded from its historically strong domestic stronghold into Peru. Lucchetti, a pasta company, had grown to the point where there was no room to expand in the Chilean market. The Peruvian market, however, looked extremely promising. Thus in 1996, Lucchetti Peru was born. By late 2003, however, the new state-of-the-art pasta plant was being liquidated. The management of the company was considering whether Lucchetti should leave the Peruvian market altogether and absorb a $150 million write-off or, alternatively, to continue and build a new plant to take advantage of what was left of the Lucchetti market share, even though it would require a considerable additional investment. Had this been a case of a good strategy plagued by Murphy's Law: 'everything that can go wrong will go wrong'. Was there something they should have known or some point where the team members had made the wrong decision? The lesson to be gleaned from this failed Peruvian venture remained unclear and they wanted to apply those lessons to future domestic and international expansion in this and other ventures. This case is intended for use in graduate and executive courses in international strategy and country analysis. It places the corporate expansion into a multi-national context and encourages students to consider strategy from the broader context of the Peruvian national business, political, and economic systems. The case is best taught in combination with the background note BAB105 'Peru 2002: The Fujimori Effect' which offers the broader background material on the Peruvian business and political environment.