The case describes the growth of Guggenheim Brothers as one of the largest mining companies in the world in the early twentieth century. Global expansion led the Company to Chile, first in copper and later in the natural nitrates. Chile’s economic growth has been driven by the profits from the mining industry, especially its world monopoly of nitrates. The Guggenheim has been invested in Chilean nitrates for plastics developed by German chemists. Their strategies to modernize the industry collapsed with the onset o … Read more »

The case describes the growth of Guggenheim Brothers as one of the largest mining companies in the world in the early twentieth century. Global expansion led the Company to Chile, first in copper and later in the natural nitrates. Chile’s economic growth has been driven by the profits from the mining industry, especially its world monopoly of nitrates. The Guggenheim has been invested in Chilean nitrates for plastics developed by German chemists. Their strategies to modernize the industry collapsed with the onset of the Great Depression, in which Chile experienced the largest decline in the income of a country. The case serves as a vehicle to the devastating economic and political impact of the global economic crisis on the countries of the South, such as Chile, which had specialized in raw materials, and on mining and financial capitalists like the Guggenheim.

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from
Geoffrey G. Jones,
Felipe Fernandes Tamega
Source: Harvard Business School
23 pages.
Publication Date: Jun 17, 2010. Prod #: 810 141 PDF-ENG
The Guggenheim and Chilean nitrates HBR case solution

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