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Case
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Reference no. 9-798-053
Published by: Harvard Business Publishing
Originally published in: 1998
Version: 18 November 1998

Abstract

Empresas CAP began as a private-sector steel company in 1946. Over the next 40 years, CAP''s ownership structure moved from nationalization to re- privatization. Unrestricted by state ownership, CAP began to diversify its holdings. The case considers the viability of CAP''s diversification into forestry, and the course of action that CEO Roberto de Andraca should take.; Provides an opportunity to explore the effect of changing ownership patterns on group strategy, and the costs and benefits of diversification and de-diversification in a rapidly emerging market.

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Abstract

Empresas CAP began as a private-sector steel company in 1946. Over the next 40 years, CAP''s ownership structure moved from nationalization to re- privatization. Unrestricted by state ownership, CAP began to diversify its holdings. The case considers the viability of CAP''s diversification into forestry, and the course of action that CEO Roberto de Andraca should take.; Provides an opportunity to explore the effect of changing ownership patterns on group strategy, and the costs and benefits of diversification and de-diversification in a rapidly emerging market.

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