This is the success story of an electric company that was founded in the 1940s as a public enterprise but that has been run since its founding as though it were a private company. Throughout the years, it has operated efficiently and with a high level of technology. The company was privatized in 1987, and its performance improves still further, making it a success model for Latin America. As frequently happens with successful, high-growth companies in the region, ENDESA began to face some limits to expansion in its domestic market and began generating a surplus beyond its investment requirements. In fact, the company projected that its cash flow would exceed projected investments by 500 million dollars. Most Latin American companies, when confronted with this kind of situation, would invest within its home country, in nonrelated businesses, creating a diversified business group. In contrast, ENDESA decided explicitly not to diversify in nonrelated businesses but rather to pursue its core business in other countries, beginning with neighboring Argentina. This first project outside Chile required a large financial investment, an enormous organizational effort, and the need to forge strategic alliances with multinational enterprises. The case describes this initial experience in detail, emphasizing the importance of human resources in any internationalization effort. It is clear from the case that ENDESA's most valuable assets for success in this effort were managerial. The dilemma now facing ENDESA management is whether to continue investing in Argentina. A new opportunity for the expansion of electric power has arisen, but an investment of $100 million is required. ENDESA must make this investment decision in an environment of economic decline in Argentina. Other options include seeking investments in other South American countries, or perhaps investing in other sectors in Chile.