MGMT 3800
Chiquita Case Study
Due Date: 2013/01/14
Short-term solution: Continue to pay “protection money” to AUC or similar Colombia local group. At the same time, negotiating with Colombia government to get government protection from killings and kidnapping.
Long-term solution: Negotiation with Colombia government, and exit Colombia gradually.
Important Information: * Make promise to ForestEthics that stop using such fuel in its shipment. Signed a global agreement with local and international food unions. Hire more women – Chiquita is an ethical business and has social responsibility. * By the 1990s, Columbia became a very violent country. – An unstable environment cannot provide a safe and fair place to produce products and trade. Therefore, if Colombia government cannot provide a safe plantation place to Chiquita, Chiquita should find new banana plantation. The primary goal for businesses is maximum profit—Friedman. Business must be economic –Carroll. * Exit Colombia will cause 12,000 people loss job and $70 million annually loss of Colombia government. Banadex exports represented a significant portion of bananas sold by Chiquita. – Before Chiquita find another banana plantation, Chiquita should not exit Colombia. In order to protect Colombia economy (to be ethical), Chiquita should not exit Colombia rapidly.
SMART
Specific: Solve the “protection money” issue with minimum economy loss. Solve this issue can let Chiquita get rid of blackmail from AUC, and avoid future lawsuit. Chiquita’s board of directors, top management and Colombia government are involved. This issue is located in Colombia. Implement
