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UNIVERSITY OF CENTRAL PUNJAB

STRATEGIC MANAGEMENT
Case Study: BLOOD BANANAS

Submitted By:
Fahad farooqi
Section:
MBBA S1
Reg No:
F1F14MBBA0007
Submitted To:
Mam Aaisha Arbab Khan

CASE STUDY:
CHIQUITA BRANDS INTERNATIONAL INC:
Chiquita Brands International Inc. is an American producer and
distributor of bananas and other produce.
The company operates under a number of subsidiary brand names,
including the flagship Chiquita brand and Fresh Express salads.
Chiquita is the leading distributor of bananas in the United States in
Colombia for nearly 100 years.
Banadex was responsible for 4,400 direct and an additional 8,000
indirect jobs in Colombia
It is contributing $70 million annually to the economy.
CASE PROBLEM:
Carlos Castao, leader of the United Self Defense Forces of Columbia
(AUC), a Colombian paramilitary organization blackmailing Chiquita
Brands that it will be good for them to pay a specific amount per month
if they want to secure the lives of their employees.
Problem is that U.S government cannot protect them from the AUC ( a
terrorist like) Group.
Now they have to protect their employees lives.
AUC gave them three options:

Accept
to Pay
.

Refuse
To Pay

Exit the
Country

CASE SOLUTION:
Chiquita should REFUSE TO PAY AUC because paying the amount for
security is not the solution to the problem. It can lead to many other problems.

Accept
to Pay

Refuse
To Pay

Exit the
Country

Reasons of Choosing Refuse to Pay Option:

1. IF THEY ACCEPT TO PAY:


NO SECURITY:
If they agree to pay, it has its own implications because it is not
guaranteed that they will not harm the people again. Once they will
be supported they will do it continuously. It might lead to damage
of Peoples life and property as well.
TERRORIST GROUP:
Agreeing to pay means they are supporting their terrorist like
activities and once AUC group is financed, they will increase their
connections and networks and will become a strong violent group.
AFFECT ON OTHER COMPANIES:
If they accept the blackmailing of that group, they will do the same
with other developed companies and it will become a threat to
overall economy so they should not be supported.

2. IF THEY EXIT THE COUNTRY:


LIVELIHOOD OF EMPLOYEES:
Employees Life will be highly affected if they will be unemployed.
This factor cannot be ignored. How they will survive and will
revive again if they left their home country.
COMPANYS MARKET SHARE:
Company will automatically lose its share in the market and the
distribution network of exports they have created in the long run.
They have to suffer loss that can lead to bankruptcy..

CONCLUSION:
Although refusing the proposal can also lead to problems but overall if
the company allow someone to use violence, it can lead to the
destruction of not the lives of employees but also of the company itself.
It will be no more because no one wants to be the part of a company
that obeys a terrorist group.
RECOMMENDATION:
U.S government should take actions to protect the people working
under that specific region because it is their ethical responsibility to
safeguard the people of their country.
If they will not help one organization today, they will have to suffer in
the long run because it will definitely affect other companies and
people as well.

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