Chiquita Bananas: An Empire Built on Controversy

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Chiquita Bananas: An Empire Built on Controversy

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Chiquita Bananas: An Empire Built on Controversy

  1. 2. <ul><li>Operate in many host countries </li></ul><ul><li>Often conduct R&D activities </li></ul><ul><li>MNE’s cut across national borders </li></ul><ul><li>Often directed from a company planning center that is distant from the host country </li></ul>
  2. 3. <ul><li>A controversial issue involving the conduct of MNE’s is their effect on the economic and political policies of the host and source governments </li></ul><ul><li>Many nations fear that the presence of MNE’s in a given country results in a loss of its national sovereignty </li></ul>
  3. 4. <ul><li>United Fruit Company was Founded in 1899 </li></ul><ul><ul><li>Purchased of Nipe Bay in 1907 and Saetia Sugar in 1912. </li></ul></ul><ul><ul><li>Bought Samuel Zemurray's Cuyamel Fruit Company in 1930 </li></ul></ul><ul><ul><li>United Fruit purchased A&W restaurants and root beer in 1966 and Baskin-Robbins ice cream in 1967 </li></ul></ul><ul><li>Eli Black, founder of AMK, bought United Fruit Company in 1970 and changed its name to United Brands. </li></ul><ul><li>The firm became Chiquita Brands International in 1990 </li></ul>
  4. 5. <ul><li>Chiquita’s main industry is fresh fruits, vegetables and processed food </li></ul><ul><li>The company grows, procures, markets, and distributes bananas and other fresh fruits and vegetables under the premium Chiquita and other brands </li></ul>
  5. 8. <ul><li>Throughout the 1900’s the term “Banana Republic” has been associated with the banana producing countries of Central and Latin America </li></ul><ul><li>In 1974, the company paid a $1.25 M bribe to the President of Honduras in return for an export tax reduction applied to bananas. </li></ul>
  6. 9. <ul><li>In 1985, Costa Rican environmentalists filed a lawsuit, on behalf of banana plantation workers </li></ul><ul><li>Chiquita secretly control dozens of supposedly independent banana companies </li></ul><ul><li>Chiquita fruit-transport ships have been used to smuggle cocaine into Europe </li></ul>
  7. 10. <ul><li>In 2008, the New York Times described how U.S. based Chiquita reached a $25M settlement over allegations that U.S seniors in Chiquita signed over $1M in payments to death squads in Columbia </li></ul>
  8. 11. <ul><li>First quarter financial report stated Chiquita made a $31.7M profit in 2008, after losing $3.7M the same period the prior year </li></ul><ul><li>The actual amount of bananas that people bought dropped by 1% in the U.S & 14% in Europe </li></ul>
  9. 12. <ul><li>In 2008 Chiquita opens large plantations in Africa, Mozambique , and Angola, to get around the European tariff regulations </li></ul><ul><li>Many compare George Bush to the CEO of Chiquita Bananas by not being able to make reasonable statements </li></ul>

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