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Case study analyse - Strategic Management - Essay Example

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Fundación Chile is one of the leading non-profit institutions, created in 1976 through an agreement between the Government of Chile and ITT Corporation. At the beginning of the new millennium, Chile was positioned as one of the leading economies of Latin America, coming closer…
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Its mission is to add economic value to Chile’s products and services by promoting innovation and technology transfer activities, management techniques and human skills to natural resource-intensive sectors, aimed at taking better advantage of Chile’s natural resources and productive capacity. In 1997 Dr. Eduardo Bitran assumed the office as general director of Fundación Chile. He faced the difficult task of administering the institution, which was constituted as a private non-profit institution with 50% state ownership.

One of the most innovative mechanisms that the foundation used, unique in Chile and probably in Latin America, was to create new businesses as a main means to diffuse and transfer technology. Dr. Bitran played a major role in Chile’s economic development. , Chile had managed to keep to its course and to maintain growth and stability amidst enormous turbulence, in a period of economic decline that had affected all of Latin America. Recognition of the importance of new knowledge as the base of future businesses was gaining importance and Venture capital funds became the focus.

Local innovation clusters were formed around the wine and salmon industries, and specialized fruit production was beginning to reveal the benefits of biotechnology and sophisticated production methods. Immediate challenge for Dr. Bitran was to identify the path and direction for Fundación Chile. His main challenge would be administer the institution to generate social benefits, as required by the mission entrusted to it as a quasi-public entity, while at the same time acting as a private business to obtain the necessary resources that would permit it to grow and develop.

Fundación Chile’s promoted innovation and technology transfer emphasizing agribusiness, forestry and marine resources. It followed several modalities like demonstration businesses, technology transfer groups, training and diffusion, and providing services such as consulting to quality control.

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