BLOOD BANANAS CASE ANALYSIS

Submitted by:
Sneha Babu
MBA Finance
500090553
Case Summary
Chiquita is a US company that has invested millions of dollars in banana cultivation in
Colombia. It was named after the United Fruit Company. The company owns a
large banana plantation in Colombia, which is the company's largest source of labor.

Chiquita ships banana fruit to key market segments such as the United States, where the fruit

is processed into various products such as banana juice. Chiquita, Del Monte, and Dole are
considered major players in the same industry. Delmonte and Dole are therefore Chiquita's
main competitors.

Colombia's banana industry becomes a hotbed of violence, with numerous hostile

groups fighting the Colombian government and civil war erupting. The most notorious
terrorist groups, the FARC and ELN, have become stronger than the country's government.

Two groups sought funding from the Colombian government and other companies. These

two terrorist groups created hostile conditions against Chiquita's banana business. As a
result, in an attempt to create a favorable environment, organizations funded right-wing
terrorist groups such as the AUC.

Incidents/Issues
Chiquita's main reasons for his actions are the desire to earn a living and the financial
protection of his employees against terrorists. These two terrorist groups are seen as major
security threats in Colombia and have created an unfavorable situation for business
operations.
The unrest caused by the rebels has terrorized Chiquita's employees. This situation can lead
to poor work efficiency Some workers want to leave the company if the uncertainty persists.
Building financial security required a safe environment where employees could
come and go from work freely. Timely delivery also ensures free and fast transportation of
banana fruits to the market.

Question

How do you position your company on a positive path and escape its negative legacy? 

The needs of families who lost members during AUC's security operations must be addressed
first.
A second possible course of action is to engage in corporate social responsibility activities.
By donating funds for the construction of educational and medical facilities for the victims'
families. 
The third is to fund infrastructure such as roads. Another option is to rename the
organization.
Did Chiquita take a higher moral standing or made the expedient choice?

The company made an expedient choice by paying AUC as it was the easiest way to deal
with the ongoing violence undertaken by other terrorist groups. The decision helped in
keeping the distribution and supply chains free from disruptions & helped in the retention of
a talented labor pool.