Abstract: Chiquita Brands International and its leaders learned a very hard lesson about paying off terrorist groups to protect their employees. Over the past 25 years‚ no place has been more perilous for companies than Colombia‚ a country that is finally beginning to emerge from the effects its Colombian banana subsidiaries had made protection payments to terrorist groups from 1997 through 2004. The Justice Department began an investigation‚ focusing on the role and conduct of Chiquita and some of
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Background Chiquita Brands International is one of the world’s largest banana producers that were founded in 1899. Founded as United Fruit Company‚ Chiquita has grown to be one of the top three companies in the banana business with a combined control of 60% market share. Chiquita had annual revenues of $4.7 billion and operating plants worldwide with its main business coming out of Colombia. In this case study‚ it tells the story of the Chiquita business and how they faced many problems in the past
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Blood Banana Strategic Management 581 Blood Banana Running a business is about more than just making money. It requires adequate consideration to a number of issues‚ of which ethics is most certainly one. As a business grows and becomes more significant‚ it impacts the lives of people in so many ways. But without a clear understanding of business ethics‚ a company can lose its business by ruining its reputation and alienating employees‚ suppliers
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Peeling Away The Problem Chiquita dramatically lost profits in the early 1990’s and while the EU’s new policies played a role in contributing to those losses they were not ultimately the cause. After eight years of solid performance Chiquita faltered in 1992‚ reporting a $284 million net loss. This loss was due to many factors‚ including but not limited to‚ the EU’s new policies. In the new regime the European Union enacted quotas on bananas that favored the former island colonies of European
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BUSA 4980 • Strategic Management • Fall 2013 Assignment – Blood Bananas: Chiquita in Colombia Access: Students have to purchase a copy of the case from Harvard Business School Publishing. Please follow the link below to access the case study‚ which will cost $3.95. https://cb.hbsp.harvard.edu/cbmp/access/22949615 Description: Chiquita Brands International and its leaders learned a very hard lesson about paying off terrorist groups to protect their employees. Over the past 25 years‚ no place
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analysis Blood Bananas: Chiquita in Columbia As learned in class‚ the advantages of international business are great‚ but so are the risks. Some of the risks involve ethical issues as the ones Chiquita faced doing business in Columbia. Chiquita was the first to successfully internationalize banana trade; Chiquita did so by paying special attention to retail development and followed industry trends. Their competitive advantage was acquired when the company revolutionalized the banana trade by using
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Write-up for Blood Bananas What do you think were root causes for Chiquita’s actions in Columbia? 1. First of all‚ they don’t want to do business in unstable environment. The terrorism groups need that money to do violence‚ so Chiquita can do business in peace. It is a business to exchange peace by money. 2. The local government and its army cannot protect the company’s land and employees. These reasons cause Chiquita to pay money to the terrorism groups. Do you think Chiquita or its
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Case Study: “Blood Bananas” Core Issue Chiquita Brands Company was a well-established international fruit growing and processing company in the 90’s. They had subsidiaries around the world; Colombia was one of those countries. With the creation of Banadex‚ Chiquita’s subsidiary in Colombia‚ revenues for the parent company increased a great amount. Banadex was Chiquita’s most profitable international operation; they had been working in that country around 100 years in the business of growing huge
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The purpose of this analysis is to estimate the optimal number of cashiers that should be kept open in a retail store to minimize costs and‚ consequently‚ maximize profits. To conduct this study‚ we have chosen the largest retailer in the world; Wal-Mart. Everyone has experienced waiting in line‚ whether at a retail store‚ on the phone for technical help‚ at the doctor’s office or in the drive-through lane of a bank. Sometimes‚ it is a pleasant experience‚ but many times it can be extremely frustrating
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amount of money to the AUC for God knows when ! plus they will have their current profits and they can sell their company in Colombia and gain extra money that will enable them to start again somewhere else. they are a well-developed corporation‚ if they did a good strategy with a well written plan they will manage to start up over and maybe even better ! In conclusion‚ Chiquita was in a bad situation‚ and as a normal corporation whose aim is to make profits they need to consider what’s in their best
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