Summer 2013 Case Report: Blood Bananas: Chiquita in Colombia BUSA 4980 Chiquita Brands international was founded in 1899 after the merger of United Fruit Company and the Boston Fruit Company. As bananas be came more of a staple in every home so do Chiquita Bananas. Bananas are know to mainly grown in tropical places like Central America‚ Africa and Southeast Asia. Chiquita decided to have operations out of Colombia. During this time there was turmoil in Colombia and different terror groups
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Analysis: Litigation & Chiquita This case study deals primarily with the issue of litigation. The case study focuses especially on litigation concerned with U.S. companies being held accountable in U.S. courts for their actions and influences in foreign countries. The main company highlighted within the case study is Chiquita‚ the largest employer of banana workers in Latin America. This analysis will dive deeper into the actual issue of litigation and will focus on the Alien Tort Statute
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they seem on the surface‚ and they can vary greatly depending on the point of view and perspective that you take. Chiquita’s management struggles to make decisions that “will position the company on a positive trajectory and escape the negative legacy and administrative heritage that continues to saddle the company. “ (Schotter p. 14) Root Causes: There are a number of different root causes for Chiquita’s actions in Columbia that ultimately led to their conviction. One critical root cause was the
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more perilous for companies than Colombia‚ a country that is finally beginning to emerge from the effects its Colombian banana subsidiaries had made protection payments to terrorist groups from 1997 through 2004. The Justice Department began an investigation‚ focusing on the role and conduct of Chiquita and some of its officers in this criminal activity. Subsequently‚ Chiquita entered into a plea agreement that gave them the dubious distinction of being the first major U.S. company ever convicted of
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may only look like a fruit‚ they represent a wide variety of environmental‚ economic‚ social‚ and political problems. The banana trade symbolizes economic imperialism‚ injustices in the global trade market‚ and the globalization of the agricultural economy. Bananas are also number four on the list of staple crops in the world and one of the biggest profit makers in supermarkets‚ making them critical for economic and global food security. As one of the first tropical fruits to be exported‚ bananas
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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
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serotonin and norepinephrine that are related to hallucinogens such as LSD or " Acid " but it still doesn’t work. Some people say the banana craze was started by some hippies as a hoax because you can’t make bananas illegal. A man from the United Fruit Company said in NEWSWEEK " The only trip you can take with a banana is when you slip on the peel.
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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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Industry Competition: 1. Threat of New Entrants It has proved to be difficult for new companies to enter the banana industry. Therefore‚ there is no strong threat of new entrants into the market. This is due to several factors and entry barriers that exist. These include: a. Banana industry is very concentrated with six companies controlling almost all of the global banana market. b. These six companies that control the market are vertically integrated and control the production and distribution
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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 a company. c) There is a low threat
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