ABSTRACT
Early in the afternoon on November 3, 1992, Cesar Atencio, president and chief executive officer of Atencio Plasticos, a division of Atencio, S.A., arrived at the Westin Peachtree Plaza Hotel in Atlanta, Georgia. Later that afternoon, he and Juan Rivera, president of Atencio, S.A., would sign contracts allying Atencio Plasticos with Denning Corporation in a joint venture. Cesar Atencio and Rivera were pleased with the formation of this strategic alliance. Three years earlier, both companies had decided to seek a strategic alliance in response to changes in the international and national business operating environment. Mexican President Salinas’ abandonment of Import Substitution Industrialization policies, and his commitment to opening the protected Mexican market and negotiating a North American Free Trade Agreement meant that Atencio Plasticos would have to compete with highly-competitive global firms. If Atencio Plasticos was to survive in this changed environment, it would have to become a global firm. However, Atencio Plasticos lacked the necessary capital to finance a major expansion of its operations. Counseled by Rivera, Cesar began the search for an alliance to help Atencio Plasticos accomplish its strategic goals. The new international environment, the search for an appropriate ally, and the ensuing negotiations, are the subjects of this case study.
