What do you think were the root causes for Chiquita’s actions in Colombia that ultimately led to their conviction

824 WordsFeb 14, 20144 Pages
“Historically, the banana trade symbolized economic imperialism, injustices in the global trade market, and the exploitation of agriculture-dependent third-world countries”(2). However, they remain to be one of the most profitable items in grocery stores. Making bananas crucial to economic and global food stability for countries all over the world. They are the third largest staple crop, coming only after wheat and coffee. Since bananas are such a sought after fruit, many companies have gone to extensive lengths in the to fight for a share of the market. Chiquita Brands International was one of the pioneer companies to try and globalize bananas. They took a risk and made some very critical mistakes along the way. Throughout the past…show more content…
It seems that in going through Chiquita’s company background, that they have been somewhat of a shady brand since its origin. Eli Black, CEO in 1970, paid a US$1.25 million bribe to Honduran official in return for them reducing taxes on the company’s banana exports. He then proceeded to kill himself. The next CEO, Carl Linder, was know for ‘bottom fishing’ and led the company into bankrupty in 2002. Next in line to assume the title was Agguire. It seemed that he was faced with an overwhelming load of problems from Chiquita’s past, but he quickly decided on the best way to fix it. He told CEO Magazine in 2007, “[Chiquita’s] key challenge is to control costs while supporting innovation efforts. Cost-saving programs have not been nearly enough to offset higher industry and other costs.” He said also that “the second challenge is to remain agile in a competitive, fast-paced marketplace that is characterized by growing consumer expectations […] and that in order to strengthen the […] power of the brand, [they] are developing strategies based on consumer brands for healthy, fresh foods and focusing on diversification and innovation” (5). He made it clear from the beginning that Chiquita would be transitioning from the low-margin operations to a company that produced more value-added products. Also, that they would begin to maintain an excellent record of food safety, quality, management, customer service, and in-store

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