Blood Bananas: Chiquita in Colombia Harvard Case Solution & Analysis

Chiquita Brands International and its leaders have learned a hard lesson about repayment terrorist groups to protect their employees. Over the past 25 years, the place was not more dangerous than for companies in Colombia, a country that is finally starting to come out of the civil war and narco-terrorism. In 2004, Chiquita voluntarily opened the U.S. Justice Department that one of its subsidiaries made Colombian banana protection payments to terrorist groups from 1997 to 2004. U.S. Department of Justice launched an investigation, focusing on the role and behavior of Chiquita and some of its employees in this criminal activity. Subsequently, Chiquita entered into a plea agreement, which gave them the dubious honor of being the first major U.S. company ever been convicted of dealing with terrorists, and resulted in a fine of $ 25 million and other penalties. What's worse, the industry is facing pressure from increasing power of retail purchases, major changes in consumer tastes and preferences, and the introduction in Europe "onerous tariff" for companies that received bananas from Latin America. With this in mind, Fernando Aguirre, CEO of Chiquita in 2004, reflected on how the company arrived at this point, and what was done to correct the course so far. He was faced with serious challenges competitive position in this dynamic industry. What should be done to position the company at a competitive positive trajectory? Whether it is even possible in this industry and the business climate Chiquita faced? "Hide
by Mary B. Teagarden, Andreas Schotter Source: Thunderbird School of Global Management 16 pages. Publication Date: November 11, 2010. Prod. #: TB0245-PDF-ENG

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