Blood Bananas

Topics: Strategic management, Strategic planning, Decision making Pages: 6 (1884 words) Published: April 23, 2013
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 years. The main problem in this study is how Chiquita paid the AUC terrorist group a combined $1.7 million from 1997 to 2004 and then told the United States Justice Department about their dealings. After the criminal investigation and plea agreement, the new CEO was faced with the decisions of a new direction for the company. Through this analysis I will help Fernando Aguirre come up with a feasible plan for Chiquita Brands International so that it can continue to be a dominant business.

The key issue at hand with Chiquita Brands International is that after all of their problems, they had to face the decision with how the company would be position themselves positively. The company’s image had been shot and brand image is a very important concept for businesses to have to be able to survive in today’s business world. The CEO, Fernando Aguirre, did not know how to bring the company to a reputable standard and leave the past behind. The company now needs to learn how to move forward with their company to change the perceptions of their audience and still be a leading banana producer worldwide. Another key issue that Fernando must deal with is the reality of the issue that past, was Chiquita’s past executive team guilty or not guilty of the crime that they plead for. In order for the company to move forward, they would have to take a stance on the issue and clearly state whether they intentionally or forcefully made the payments to the AUC.

Strategic Analysis
There are a couple of things the company should look at to reroute the stance of their company in a positive direction. With these concepts, the company should be able to form a new plan that will help the CEO know what to do in the decisions he makes for the future of the company. These concepts will be listed below. •Mission and vision statement

Competitive strategy
Corporate strategy
Implementation of new policies and management
Internal and performance analysis
Concise strategic decisions

Mission and Vision Statement
The company should look into its mission and vision statement so that its audience can know that the company is changing in a positive way. A mission and vision statement’s purpose is to define the company’s purpose, objectives, and value to the audience. It is important for the company to now implement CSR Responsibility, environmental sustainability, and SMART goals. With the implementation of these tactics, Chiquita’s audience will see that they are changing and know that they can earn the company’s trust again. Each goal that the company defines in their new statements should be specific, measurable, achievable, realistic, and time-based. With SMART goals, Chiquita will be able to easily move forward from their negative image to a more acceptable one.

Competitive Strategy
Because of their fallen reputation, Chiquita must now look at its stance compared to its competitors to see how they are now going to position themselves. Now that companies have seen them fall, they most certainly have taken advantage of some of Chiquita’s audience who has turned away from the brand. The best thing for Chiquita to do is to look at their models and determine whether they should focus on a Resource Based Model or an I/O Model. I believe Chiquita should focus on the I/O Model so that they can look at their external environment and gain a sustainable competitive advantage again. The I/O Model will shape the company and use the...
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