Blood Bananas: Chiquita in Colombia - Case Study Example

Perhaps it would be appropriate to state explain the main reasons behind such heinous acts by Chiquita. Maybe the main motivating factor for Chiquita to act in the way it did in Columbia was to gain a competitive advantage in the Columbian market. Although the advantage that the company gained during the period was not warranted, it used it for both business and political purposes especially in collaboration with willing governments. When it comes to the issuance of protection fees and doing business with a suspected terrorist, perhaps Chiquita was driven by honest business agenda that advocated for an all-inclusive market.

Besides, certain governments that had a huge interest within the company could have sponsored the actions that Chiquita was responsible for in Colombia. An example, in this case, is the US government that Chiquita categorically supported in its numerous coup attempts in smaller countries. The company could have been manipulated easily by major countries with stake mainly for political gains. The choice for Chiquita or its managers, In my opinion, Chiquita or its managers did not have a choice for certain irresponsible actions that they were deemed to have committed although in most cases, they had a choice to quit or to ignore.

When it comes to offering bribes to the authorities in Latin America majorly for the receipt of favored treatment, it is a business culture in most parts of the world, although few countries normally admit to being named culprits. Essentially, that was the only way for the business to survive in Colombia, a country that was ravaged by civil war and therefore the business world operated on the rule of the jungle. Perhaps it is due to the low level of civility at the time that Chiquita had to apply some unorthodox means in order to survive the business turbulent.

Had proper business policies been in place at the time Chiquita launched its subsidiaries in Colombia, such unorthodox business practices would not have been committed. Lastly but more importantly, the managers of the company did not have political powers beyond those of the jurisdictions within which they operated. Hence, they had to comply with the prevailing systems in order for their subsidiaries to flourish. Other companies that should be worried about Chiquita’s experience When it comes to Chiquita’s experiences, Dole and Del Monte should be a worried lot because they are also multinationals operating in the same countries that Chiquita uses to do business and are major players within the same industry of fruits.

This is especially so for Del Monte Company because it is an American company that has a huge market within America and beyond and accusations can come its way of colluding with the American government particular in the situation of politically incorrect behavior. Similarly, Dole can suffer under the same disguise and in the process lose the trust of many of its customers. Surprisingly, the three companies, that is, Chiquita, Del Monte, and Dole have been in existence for nearly a century and if a decade of operation in Colombia damaged the reputation of Chiquita, the same could be possible for the remaining players.

What the current CEO Aguirre can do In order to restore Chiquita’s reputation and ensure future competitiveness, the current CEO Aguirre should stick to the company’s core values of integrity, opportunity, responsibility, and respect. This way, the company will be on a transformative path that will win the trust of many stakeholders back to the company. Secondly, the Chief Executive of Chiquita ought to take full responsibility for past mistakes done by the company and promise that there will not be a repeat of the same.

To achieve this, the CEO will have to sit with the board in order to lay down policies regarding doing business in lesser developed countries, especially the ones that are war-torn or still bear the wounds of past civil wars.