Free Endesa Chile: Raising the Ralco Dam (A) Case Study Solution | Assignment Help

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Written by Gary F. Smith
Publish Date: 2024-12-04

Harvard Case - Endesa Chile: Raising the Ralco Dam (A)

"Endesa Chile: Raising the Ralco Dam (A)" Harvard business case study is written by Paula J. Lashober, Dina Pradel, Kathleen L. McGinn. It deals with the challenges in the field of Negotiation. The case study is 20 page(s) long and it was first published on : Apr 14, 2006

Financial Analysis:

  • The dam project was financially viable for Endesa Chile, but it posed potential risks due to delays and community opposition.
  • The Pehuenche community had limited financial resources to challenge the project.

Marketing Analysis:

  • Endesa Chile faced negative publicity and reputational damage due to the project's environmental and social impacts.
  • The Pehuenche community had strong support from environmental and human rights groups.

Operational Analysis:

  • The construction of the dam would have significant environmental consequences, including the loss of biodiversity and the displacement of the Pehuenche community.
  • The project faced technical challenges and potential delays due to the complex terrain.

4. Recommendaations

**Principled Negotiation:*** Endesa Chile should adopt a principled negotiation approach that focuses on identifying and addressing the underlying interests of both parties.* The company should be willing to explore creative solutions that meet the needs of both the community and the project.

Building a Strong Relationship:

  • Endesa Chile should establish a strong and transparent relationship with the Pehuenche community based on trust and mutual respect.
  • The company should engage in open and ongoing dialogue to address the community's concerns.

Compensation and Mitigation:

  • Endesa Chile should provide fair compensation to the Pehuenche community for the loss of their land and cultural heritage.
  • The company should also implement mitigation measures to minimize the environmental impact of the project.

5. Basis of Recommendaations

**Core Competencies and Mission:*** Principled negotiation aligns with Endesa Chile's commitment to sustainability and social responsibility.

External Customers and Internal Clients:

  • Engaging with the Pehuenche community is crucial for maintaining positive stakeholder relationships and mitigating reputational risks.

Competitors:

  • Other energy companies may face similar challenges in developing projects in indigenous territories.

Attractiveness:

  • A mutually acceptable agreement would avoid costly delays and legal challenges.

6. Conclusion

By adopting a principled negotiation approach, Endesa Chile can reach an agreement with the Pehuenche community that respects their rights and interests while meeting the energy needs of Chile. This outcome would enhance the company's reputation, mitigate risks, and contribute to sustainable development.

7. Discussion

**Alternative Not Selected:*** Distributive bargaining, which focuses on dividing a fixed pie, would likely lead to a zero-sum outcome that would not satisfy either party.

Risks and Assumptions:

  • The negotiation process may be lengthy and complex, requiring significant time and resources.
  • The Pehuenche community may not be willing to compromise on their core demands.

8. Next Steps

* Endesa Chile should immediately initiate contact with the Pehuenche community to establish a negotiation process.* The company should prepare a detailed proposal that outlines its compensation and mitigation measures.* Endesa Chile should engage an independent mediator to facilitate the negotiations and ensure a fair and impartial process.

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Case Description

Endesa Chile, the largest electricity generation company in Chile, is building a major power plant on the Biobio River in Southern Chile. A historic conflict involving the indigenous people of the Biobio River, the Chilean government, and international conservation groups results. The conflict threatens the completion of the project and the longstanding culture and community of the Penhuenche, the indigenous people of the Upper Biobio.

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