1. The Banana Chain: The macro economics of the Banana Trade Adelien van de Kasteele on behalf of IUF Amsterdam‚ February 1998 1. BANANAS: THE PRODUCTION CHAIN In 1996 world production of the most important fruits was around 400 million tons. Bananas compete with grapes for second place behind citrus‚ both accounting for 13-14% of total world fresh fruit production. Banana production has been increasing by around 3% per year over the last decade. Bananas are grown in all tropical regions
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Chiquita in Columbia I. Overview of the Issue In 1997‚ executives at Chiquita Brands Banadex were faced with a very serious ethical dilemma‚ which would severely impact the future of the company. The executives were confronted by the leader of one of the most powerful terrorist groups in the state of Columbia and the company had a significant choice to make; Chiquita could pay the terrorist group a penny for every dollar of bananas exported in return for the safety of their employees or they
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Extorting Chiquita Chiquita Brands International Inc. headquartered in Cincinnati‚ Ohio‚ was a leading international marketer and distributor of high-quality fresh produce that was sold under the Chiquita premium brand and related trademarks. Banadex‚ a subsidiary of Chiquita Brands‚ was responsible for managing Chiquita’s extensive plantation holdings in Columbia and its most profitable international operation. Chiquita had been operating fruit plantations in Columbia for nearly 100 years
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1 a) Buyers have high power in the banana industry because they choose the company that has the best customer service and the lowest prices to stock in their stores. This means that the supermarkets can directly impact who has the most market shares in the industry. b) Suppliers have low power in the banana industry because they are at the mercy of the buyers‚ FDA‚ government import laws‚ and mother nature. All these factors creates little control for the supplies‚ and anyone thing can destroy
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Adam Cooper Chiquita should not have agreed to make payments to the terrorist group in order to protect its employees. The Colombian group has been responsible for making threats and murdering the local citizens and by Chiquita giving monetary payments the group continues to exist. Chiquita is supporting a group that has violently attacked citizens of Colombia. Not only does the company want to follow the ethical principle of promoting personal morality but also comply with legal requirements. The
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Blood Bananas: Chiquita In Columbia Overview: This complex case touches on fundamental questions of ethics and morality while displaying the inherent risks and rewards associated with operating a business abroad in geographies with histories of violence and civil unrest. The case exposes the challenges faced by Chiquita when trying to maintain production and profitability while also protecting its employees in a hostile situation. In this case‚ the lines of the ethics and morality are not as straightforward
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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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Blood Bananas: Chiquita in Colombia No one laughs at the banana in its areas of origin. It is too serious a business‚ on which jobs and lives depend. Peter Chapman‚ Author of Jungle Capitalists. For Chiquita Brands International‚ a pioneer in the globalization of the banana industry‚ bananas are not only serious business‚ they represent an array of economic‚ social‚ environmental‚ political‚ and legal hassles. Since its founding more than a hundred years ago as United Fruit Company‚ Chiquita has been
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Study 5: Chiquita Sticks Its Bananas Out 1. ON ETHICS: Why has Chiquita chosen to be proactive along a number of CSR dimensions? Chiquita was proactive to a number of CSR dimensions in order to build strong relationships with local farmers‚ environmental organizations and communities. The history of Chiquita has involved several negative issues of the company implementing improper behavior toward employees and the farming community. In hopes to correct this bad reputation‚ Chiquita conducted
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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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