UNIVERSITY OF CENTRAL PUNJAB

STRATEGIC MANAGEMENT
Case Study: BLOOD BANANAS

Submitted By :

Name: Sana Riaz

Registration # F1F14MBBA0004

Section: S1

Submitted To :

Mam Aaisha Arbab Khan

Submission Date :

31st May, 2015

CASE STUDY:

CHIQUITA BRANDS INTERNATIONAL INC:

 Chiquita Brands International Inc. is an American producer and distributor of
bananas and other produce.
 The company operates under a number of subsidiary brand names, including
the flagship Chiquita brand and Fresh Express salads.
 Chiquita is the leading distributor of bananas in the United States in Colombia
for nearly 100 years.
 Banadex was responsible for 4,400 direct and an additional 8,000 indirect jobs
in Colombia
 It is contributing $70 million annually to the economy.

CASE PROBLEM:
 Carlos Castaño, leader of the United Self Defense Forces of Columbia (AUC),
a Colombian paramilitary organization blackmailing Chiquita Brands that it
will be good for them to pay a specific amount per month if they want to
secure the lives of their employees.
 Problem is that U.S government cannot protect them from the AUC ( a
terrorist like) Group.
 Now they have to protect their employees’ lives.
 AUC gave them three options:

.
CASE SOLUTION:
Chiquita should “REFUSE TO PAY” AUC because paying the amount for security is
not the solution to the problem. It can lead to many other problems.

Reasons of Choosing “Refuse to Pay” Option:

1. IF THEY ACCEPT TO PAY:

NO SECURITY:

If they agree to pay, it has its own implications because it is not

guaranteed that they will not harm the people again. Once they will be
supported they will do it continuously. It might lead to damage of People’s
life and property as well.

TERRORIST GROUP:

Agreeing to pay means they are supporting their terrorist like activities
and once AUC group is financed, they will increase their connections and
networks and will become a strong violent group.

AFFECT ON OTHER COMPANIES:

If they accept the blackmailing of that group, they will do the same with
other developed companies and it will become a threat to overall economy
so they should not be supported.
 2. IF THEY EXIT THE COUNTRY:

LIVELIHOOD OF EMPLOYEES:

Employees Life will be highly affected if they will be unemployed. This

factor cannot be ignored. How they will survive and will revive again if
they left their home country.

COMPANY’S MARKET SHARE:

Company will automatically lose its share in the market and the
distribution network of exports they have created in the long run. They
have to suffer loss that can lead to bankruptcy..

CONCLUSION:
 Although refusing the proposal can also lead to problems but overall if the
company allow someone to use violence, it can lead to the destruction of not
the lives of employees but also of the company itself. It will be no more
because no one wants to be the part of a company that obeys a terrorist group.

RECOMMENDATION:
 U.S government should take actions to protect the people working under that
specific region because it is their ethical responsibility to safeguard the people
of their country.
 If they will not help one organization today, they will have to suffer in the
long run because it will definitely affect other companies and people as well.