Chiquitta Brands International Case Study
Introduction Chiquita Brands International (formerly known as the United Fruit Company (short UFC)) was originally founded by Captain Lorenzo Baker in 1870, and officially established first in 1899. What started as a small business with a few plantations in Latin America, quickly grew into a multinational and highly successful company. By 1991, Chiquita Brands International had a net income of $128 million on sales of $2.6 billion (Spar, 2007). However, because of new economic policies on banana trade implemented by the European Union (EU) in 1993, Chiquita’s peak in profit was ended abruptly. The common banana policy, intended to equalize the global banana market between the multinational U.S.-based giants and smaller business in the ACP region, caused Chiquita’s cash balance to fall to $179 million, down from $721 million, by the end of 1994 (Spar, 2007). 1) What role has politics played in the history of Chiquita Brands, and its predecessor, the United Fruit Company? After the expansion of the UFC (later Chiquita Brands International) the company was one of the largest landowners in South America and had the biggest …show more content…
Because he was representing Chiquita Brands International, it was not only his image on the line by engaging in unethical political manipulation but mainly the company’s image. Instead, by applying the Ansoff Matrix (QuickMBA, 2010), Chiquita Brands International could introduce new products to existing markets or enter new markets with new products. One solution could be the extension of its market share to other influential markets, such as the Eastern European and Soviet Union markets, thus gaining first mover advantage. Another solution could be stepping back from banana production, and going back to Chiquita’s 1980s diversification plan, focusing on a variety of fruits. Considering Chiquita’s state even a combination of both would turn out
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