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Chiquita Paper Porter

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Alternative Courses of Action

1. Concentrate on the Americas 2. Diversify Production 3. Expand to Europe More Aggressively 4. Diversify Product Line

1.Concentrate on the Americas

Based on our analysis of Chiquita Banana’s financial struggles we have a number of possible solutions for improving the company. Chiquita Bananas had no way of predicting that the European Union would favour its former colonies over Chiquita’s locations in Latin America. After the European Union put quotas and tariffs on Chiquita’s products, Chiquita should have re-evaluated whether or not to continue to export to Europe. Although they would lose a significant amount of business if they stopped exporting to Europe, the reason they were in debt in the first place was because Europe restricted import of their products and this was a problem since Europe was Chiquita’s main market. If the company had concentrated within the Americas then they would not have been forced into so much debt.

2. Diversify Production

In order to limit the amount they were affected by natural disasters, the company could have grown bananas in other parts of the world. This would be better for the company because if natural disasters did strike in an area where they grow their products then it would not be such a financial blow as they would have more sources to receive their product. The only problem with this solution would be that it may cost more to be located in other areas, however in the long run it would be worth it. (refer to Appendix B)

3. Expand to Europe More Aggressively

Expanding to Europe may have seemed like a good idea at the time however the consequences may not have been thought out. While

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