It is apparent that Chiquita has made efforts to be socially responsible. Visible through their homepage which highlights social responsibility‚ sustainability‚ innovation‚ and community involvement as it key public strategies. However‚ cooperating with eco-warriors‚ social activists and unions has come to little avail for the international Banana supplier. While trying to improve their social reputation‚ Chiquita’s competition has been outselling their product to retailers; retailers are not recognizing
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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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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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Should Chiquita have agreed to make the payments to the terrorist group to protect its employees? In knowing the history of the Revolutionary Armed Forces of Colombia‚ also known as FARC‚ I can understand Chiquita’s executives reasoning in making the decision to pay the paramilitary group. I agree with their decision to make the protection payments. What ethical principles support your opinion? One of the strongest principles is: Do no Harm. This means to prevent or minimize harm to the
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Bananas‚ Chiquita and Globalization While globalization is a relatively new phenomenon in theory‚ but not necessarily in history‚ as of 2009 it has created transnational corporations linked to government‚ international economic institutions‚ and non-government organizations. (Steger 67). With this definition bananas are a textbook example of the globalization of tropical fruit commodities. The transnational corporations of the United States‚ most notably Chiquita‚ Dole and Del Monte‚ have been
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Executive Summary This report details several international management problems that Chiquita has been faced with over the past two decades. Many of these problems are to do with the company’s previously poor image when it came to Corporate and Social responsibility. Over the years Chiquita faced many accusations about the conditions workers were faced with at many of their facilities in Latin America and have also had their environmental policies questioned many times in the press. The company
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a. How did the Common Market Organization for Bananas (“CMOB”) affect Chiquita? Six firms dominated the banana industry in the early 1990’s‚ three from Europe and three from the United States. In 1994‚ the three United States producers‚ Chiquita‚ Dole‚ and Del Monte‚ accounted for approximately 72.4% of world banana sales. Chiquita accounted for 48% of worldwide banana sales and 66.4% of banana sales of the three U.S. producers. Prior to 1994‚ Europe accounted for nearly 40% of world banana
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Contents Chiquita Banana Overview 2 PESTEL analysis for the European Union 2 Political: 2 Economic: 3 Sociocultural Factors: 3 Technological: 4 Legal: 4 Environmental: 5 Marketing Mix 6 Product: 6 Price: 6 Place: 7 Promotion: 7 SWOT Analysis 8 Strengths: 8 Weaknesses: 8 Opportunities: 9 Threats: 9 Internationalization Strategy and Viability 10 Chance: 11 Incoterm 12 Possible incoterms for the company 12 Solution 12 Appendix A 14 Works Cited 15 Chiquita Banana Overview
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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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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
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