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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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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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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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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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 has been more perilous for companies than Colombia‚ a country
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1. What would you think were the root causes for Chiquita’s actions in Columbia that ultimately led to its conviction? The Chiquita Company was accused of sponsoring the terrorist organizations named AUC. The company annually paid AUC a huge amount of money. Finally‚ this huge amount of power was transferred to the weapons being used by the terrorists to kill innocent civilians. It was highly unethical because any payment to the terrorists would be regarded as sponsoring the terrorists. Additionally
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BUSA 4980 10/24/12 Case 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
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underlined. Chiquita Brands International Inc.‚ is a leading marketer and distributor of high quality fresh produce. The company is one of the largest banana producers in the world. Like any company operating across boarders‚ Chiquita was faced with a terrible dilemma. Operating in a country without political stability and high crime‚ the company was threatened to pay security charges to terrorists in order to continue their business smoothly. The situation that faced Chiquita is very critical
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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 managers had a choice? Overall‚ I don’t think they had a better choice. First‚ the local government and its army cannot protect the company’s land from bombing and employees from abducting and killing. Chiquita does not
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broke‚ receive wages well below the legal entitlement‚ and laws on working conditions are ignored. Restaurants in Melbourne’s China Town and Chadstone shopping centre are paying wages below the legal minimum wage of $17.70 an hour. Chinese student Chiquita Yu is working at a restaurant in Chadstone shopping centre and is paid $10 an hour. “I work for 30 hours a week‚” she said. “I know it’s illegal but my boss decides my working schedule.” “They prefer stable and long time staffs if you just want
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