Boeing also realizes that in order to attract new customers the firm has to offer better prices to its clients. The only way the company will be able to provide better prices is by lowering its production costs. The firm plans to outsource 70% of its manufacturing, lower its assembly time, and utilize a composite material instead of aluminum. The strategy the company selected was a smart one because if the firm had not reacted to the introduction of the A380 aircraft the company would continue to lose market share to AEDS and other competitors. Innovation and product quality are attributes that help increase the market share of a company (Hellofs & Jacobson, 1999). Blood Bananas Chiquita Brands is one of the largest food companies in the world. The company operates in an industry that generates millions of jobs and billions of dollars each year. The company was having problems with its Columbian subsidiary, Banadex. The firm received an offer from a paramilitary group called the United Self Defense Force of Columbia (AUC) for protection. The offer in reality was more of a threat due to the fact that Banadex would be paying so that the AUC does not become their enemy. The AUC illegal activities included kidnapping, murders, and drug trafficking. The company was facing a tough strategic decision and ethical dilemma that could change their future. One of the first options the company had was to leave the country. An exit strategy would really hurt the Columbian economy due to the fact that
the business activities of the company generated about $70 million for the local economy. The firm also employed directly and indirectly over 12,000 people. The company also had a long history of business success in this country...
The paper analyses defferent options of the company. One of the first options the company had was to leave the country. An exit strategy would really hurt the Columbian economy due to the fact that the business activities of the company generated about $70 million for the local economy. The firm also employed directly and indirectly over 12,000 people. The company also had a long history of business success in this country since they had established a market presence in Columbia for over 100 years. An exit strategy would cost the company millions of dollars due to the fact that the firm has a business infrastructure set up in Columbia. The company should disregard this option due to the losses the firm would incur and because of the importance of the firm’s operation for the local economy.
The second strategic option Banadex had was to disregard the offer from AUC and continue doing business in Columbia. This option is extremely risky because disregarding the offer made by AUC would put the lives of its workers in danger. The AUC is a paramilitary group that has over 8,000 soldiers. The group is so strong that not even the Columbian government is willing to fight against them.