Blood Bananas Directions

Over the past 25 years, no place has been more perilous for companies than Colombia, a country that is inally beginning to emerge from the effects of civil war and narco-terrorism. In 2004, Chiquita voluntarily revealed to the U. S. Justice Department that one of its Colombian banana subsidiaries had made protection payments to terrorist groups from 1997 through 2004. The Justice Department began an investigation, focusing on the role and conduct of Chiquita and some of its officers in this criminal activity. Subsequently, Chiquita entered into a plea agreement that gave them the dubious distinction of being the first major U.
S. company ever convicted of dealing with terrorists, and resulted in a fine of IJS$25 million and other penalties. To make matters worse, the industry was facing pressure from increasing retailer purchasing power, major changes in consumer tastes and preferences, and Europe’s imposition of an “onerous tariff’ on companies that sourced bananas from Latin America. With this in mind, Fernando Aguirre, Chiquita’s CEO since 2004, reflected on how the company had arrived at this point, and what had been done to correct the course so far.
He faced major challenges to the company’s competitive position in this dynamic industry. Assignment: Students must address the following questions: 1 . What do you think were the root causes for Chiquita’s actions in Colombia that led to the penalties? Did Chiquita’s managers have a choice? Why or why not? 2. What can current management do to restore Chiquita’s reputation and ensure future competitiveness in this industry? What role does corporate governance play in this process? Please discuss the ethical and strategic actions that the Company should take.

Directions: Students should address the questions above in a typed document (double spaced; 12-point font; 5 pages maximum; essay format). The case report should provide a title page, with student name, section number, and date of ubmission. Your responses should be uploaded to D2L before the scheduled class on Wednesday, December 4. Strong responses will reference the material covered in Chapter 10 of our textbook, as well as the additional readings suggested on the following page.
Guidelines: Please note the following: All case reports are to be written (double spaced) using 12 point type with a serif font for the body (Times New Roman) and sans serif font for headings (Calibri). The report should follow correct form, spelling, grammar, etc. The body of the paper should be no more than five pages including specific recommendations supported by our analyses. Number the pages. The report may include an assortment of charts, tables, and exhibits in an appendix to support your analyses and recommendations. Do not add exhi bits that are already included in the case.
Each exhi bit must be referenced and discussed in the body of the paper. The appendix does not count towards the main body limit of five pages. The main body of your report should contain sufficient detail to explain and support the major issues identified in the case and the primary recommendations for solving these problems. Do not Just rehash case facts. Instead, present an insightful and unique analysis. The reports will be judged according to standards of effective business communication. They should be clear and cogent.
The criteria for grading case reports include: Evidence of ability to size-up the organization’s situation and to identify key problems/issues. Use of appropriate analytical techniques, sound logic, and well-supported arguments in evaluating the organization’s present condition and future prospects. Evidence of ability to formulate realistic and workable recommendations for action. Quality contributions will reference the material in Chapter 10 of your textbook, as well as he additional readings suggested below. Thoroughness both (a) scope and coverage and (b) depth of analysis.

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