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Chiquita Bananas

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I. Time Context – 1997 II. Point of View – Fernando Aguirre, CEO III. Statement of the Problem
Symptom: Chiquita Brands International was forced to make protection payments to paramilitary groups in Colombia to keep their workers safe from the group’s violence, which later were found illegal under U.S law.
Problem: Chiquita workers are saved but the rest of the country is endangered.
IV. Objectives 1. To rebuild the company’s image 2. To protect their employee’s lives and at the same time, to not harm the citizens of Colombia by providing funds for terrorism acts
V. Areas of Consideration

VI. Outline Alternative Courses of Action (ACA) * Exit the country and relocate their operations from Colombia to a nearby country with similar weather but less of a terrorism ridden culture.

* Stay in Latin America but fix their public image through sustainable employment and environmental practices in order rebuild a positive image of the brand.

* Draw out from Latin America and increase their market share by focusing in other products.

VII. Recommendation
Since they’ve already sold their Colombian farms, I think it’s time for them to leave Colombia and rebuild their business in another country that is free from terrorism acts that also offer similar weather conditions as Colombia. They should now pay attention on its Marketing Campaign in order to rebuild a positive image of the brand; Focusing on ethical treatment of workers, sustainable environmental practices, providing satisfaction to their customers, and creating new products will help them achieve this. If Chiquita follows through implementing sustainable practices, they should follow a similar path of success as they did previously. If Chiquita does not actively implement changes, the campaign could mislead consumers about the realities of doing business in Colombia that could lead to loss of market share to Dole and Del Monte. Upon creating new products, it is needed to make it accessible. One way to do this is to implement a more efficient distribution channel network while also trying to gain more coverage. It’s just that, one disadvantage to this is that the distribution implementation will most likely cost Chiquita a fair amount of time and resources to alter their existing system. However, the hope is that creating a larger scope of distribution may able to see quick returns to cover the new costs.

Chiquita Bananas

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