Chiquita Case

1161 Words Nov 9th, 2011 5 Pages
1 a) Buyers have high power in the banana industry because they choose the company that has the best customer service and the lowest prices to stock in their stores. This means that the supermarkets can directly impact who has the most market shares in the industry.

b) Suppliers have low power in the banana industry because they are at the mercy of the buyers, FDA, government import laws, and mother nature. All these factors creates little control for the supplies, and anyone thing can destroy a company.

c) There is a low threat of new entrants in the banana industry because the banana industry is control by three major companies that control 60% of the industry. Not only is the industry controlled by these companies, but
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b) Chiquita’s managers’ actions did the rights or legitimate claims of the community(s) in which it operates because they promoted growth within the community and gave an opportunity to help a developing nation a chance to decrease the poor as result better the overall country. One could argue the that this was consistent with their core values and their company 's believes. Chiquita was put in a situation where they had to choose the lesser of two evils, and this happened to be the right choice for their situation. Even though, by many it was considered unethical, and a poor business practice.

c) Chiquita’s managers’ actions did not reflect a best practice for the organization because they supported a terrorist organization, which is illegal and unethical business practice. Though, they were helping a community grow, it affected their brand image in the places they imported and sold their product to. As result they were fined and also, their creditability was lost, which destroyed their competitive advantage in the banana industry.

4 a) To restore Chiquita’s reputation and endure future competitiveness for the company, CEO Fernando Aquirre should (1) increase their relationships with buyers, in order to increase their market shares, (2) research how to

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