Professional Documents
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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
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.