Memo to Chiquita Brands International

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MEMO
To: Chiquita Brands International

Introduction: For the subject choosing a strategy to overcome effects of EU’s banana policy, I have gone through the whole issue of EU’s banana policy and its effects on the banana business of Latin America in general and Chiquita Brands International in particular. I have also analyzed the way the whole issue has been approached by the company and tried to formulate a plan that may prove successful for the company. Since the present problem is a serious nature threatening the existence of a big player in the banana market, I have tried to go back to history of the company of highly political nature of the international policy making in this trade. I have tried to understand the role of protectionism in the global banana market as it has created a lot of problems for players like Chiquita Brands International. After a careful evaluation of the whole issue threatening the existence of our company, I have tried to find the way out.

Politics and Chiquita Brand International
It appears that Chiquita Brands International and politics have been intertwined with the birth of the company. The history of the company that dates back to 1870 has seen involvement of the company in trades to far off places. Right from the very first sale to North American markets the company seemed to move farther and farther to cater to newer markets and make big profits. Doing business in a foreign country brings in certain degree of uncertainty as the business has to work foreign legal framework governing business there. The company enjoyed a position of unchallenged power in Latin American region where it produced banana crops on its own land. Through banana trade, the company virtually controlled economies of the nations in Latin America. The company owned not only vast expanses of land in these countries but also owned roads, rail tracks, transportation networks as these were very crucial in banana business. The sheer size of business

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