Contribution of Growth Strategies in the Yield of Organizations Chilean Electricity Sector.

Abstract

Today the markets are increasingly competitive, one bad decision can lead to failure of a company, therefore, define the way forward is one of the most important decisions to be taken in senior positions, then what should we do? What direction should take the company? To Grow within the same industry or is it better to invest in other industries and thus reduce the risks? This study analyzes the relationship between corporate strategies followed by electric utili- ties and the performance obtained by these. In order to determine which strategy improves performance businesses were classified according to the strategy used and the yield obtained from each was determined, this performance was based on investment performance (RSI) of the method of valuation of Current Economic Value (VEA). The main results of the research show that organizations prefer to grow in concentrated form but those who perform related diversified growth in average gain greater return on investment.