Strategic Management- Chiquita's Banana Business in Columbia Essay

Strategic Management- Chiquitas banana Business in Columbia - Essay ExampleThis is evident in the Chiquita group of companies, which is involved in banana trade within Columbia. Over the past six decades, Columbias political upheaval makes it problematic to conduct business, despite its promise of growth. Paramilitary groups control various business organizations, in their efforts to overshadow the nations political and economic platforms. These revolutionary groups achieve this through extorting money from multinational companies, such(prenominal) as Chiquita Brands International, and threats of death and property destruction to the repudiators. ChiquitaBrands International complies with this but faces legal challenges fro its home country, the US. This manuscript mulls over Chiquiatas predicaments, and mitigation measures towards repositioning itself in the competitive industry within the politically unsafe nation. Factors induce Chiquita into its Actions Chiquita Brands Inter national has been extremely profitable within the conflict prone Columbia. Sources indicate that the firm is the among the largest global traders in the banana industry. The company also benefitted the nation significantly, with the employment creation, tax payment and the general improvement of the inhabitants vivification standards.... However, the judiciary refuted this justification, shooting that the paramilitary group used such funds in the purchase of ammunition and different items that aided them in the accomplishment of illegal activities such as kidnappings, forceful extortions and murder of innocent victims who failed to stick to to their rules. This also obliged the US judiciary department of employing personnel that looked into other such firms that conform to the nemesis groups demands. The legal suit found Chiquita firm guilty, and encountered various severe losses, including paying a fine of $25 millionand a probation of five years (Jennings, 2011, p. 656). Fam ilies of the victims of theAUC activities also filed suits against the firm, owing to its involvement in the funding of AUC. This has severe implications for the firm, since it cloud the image of the firm, thereby affecting its profitability. As such, the current management of Chiquitas subsidiary group Banadexhavean grand task, to improve its image, and reposition itself in the ever competitive industry. Though Chiquitas management attempted unsuccessfully to rationalize their involvement in funding a terror gang, their act seems questionable (Gottschalk, 2010, p. 17). In my opinion, their claim to fund AUC, with the promise of security is ethically incorrect (Pohl, 2012, p. 68). They claim to protect their employees, without regarding the impacts their deeds have to other inhabitants of the nation (Hellriegel and John, 2008, p.31). As such, they ought to have sought protection from other legal organizations such as the permit US security groups. They also display they self-cent ered behavior by