The Road to the Business of Chiquita Brands International - Case Study Example

This research will begin with the statement that the 21st century has been a period of globalization in which business organizations have developed new strategies to venture in new market environments. The international business environment is characterized by many challenges and organizations have to be prepared to meet the international business standards to meet the demands of this business niche. For Chiquita Brand’s International, the road to the international business market has between rough and challenging.

When Chiquita landed in Ghana, the company blossomed and found this to be a new opportunity to increase its business revenue. In fact, the organization managed to make tens of millions in profit from its Columbia banana plantations. However, the company was faced by the terrorist culture that had developed controlled the banana industry for long. When the Guerrilla war in Columbia begun, Chiquita was forced to adopt new tactics of survival in this market. When the Revolutionary Armed Forces of Columbia started a war in Columbia, the Chiquita legal officer took the initiative to pay the counter-FARC, the AUC, to protect the organization against attack.

It is this initiative that made Chiquita face the US legal system that regarded AUC as terrorist body. The company was accused of collaborating with terrorist an act that was against the US legal system. The organization had to negotiate its way out this problem. Chiquita International negotiated from this legal lawsuit by pleading guilty of collaborating with the terrorist. In 2007, the organization entered a plea agreement in which the organization accepted to have been involved in financial dealings with terrorist groups.

This strategy of negotiation of the Chiquita had a lot of value. All organizations that are found guilty of collaborating with terrorist attacks are fined double its income in compliance with the legal policy. However, Chiquita was allowed to a penalty relief for having admitted to the crime before investigation. This step also was a great advantage to Chiquita’s council advisor, Mr Olson, who would have received a life sentence if the case had attained its climax. Another legal charge was raised against Chiquita in 2007 when the company was accused of poor worker environments.

In Columbia, employees were subjects of hard labor, risky work conditions and long working hours. In 1996, Chiquita had provided $20 million to standardize its work environment in all its branches in the Latin America. At that time, the company had employed over 30,000 workers in 7 different countries. When the organization was accused of neglecting corporate responsibility, it filed a lawsuit against these allegations and was paid a multimillion settlement by the Cincinnati Enquirer newspaper for reputation damage.

The ability of the organization to develop a standard work environment formed its strength in corporate responsibility. Chiquita placed value in its communication strategy as part of the development of good customer relation in a culturally diverse population. Gerbe points out to the value of communication intercultural communication in the international market. Chiquita communication strategy is depicted in its core values. The organization puts value in open, straightforward, respectful and transparent communication.