Blood Essay

1641 Words Nov 8th, 2012 7 Pages
Memorandum
To: Mr. Boulton
From: Some Student
Date: October 24, 2012
Re: Case Analysis for Chiquita Banana
ANALYSIS OF CURRENT SITUATION

Chiquita Banana did not take into account numerous factors when they were trying to sell their product. The European Union placed tariffs on Latin American countries as they granted preferential status to former African, Caribbean and the Pacific Rim colonies. This made it more expensive for Chiquita Bananas to export their bananas to the European Union, and would force Chiquita to increase their selling price. The European Union chose to import bananas from Africa, Caribbean and the Pacific Rim because they were cheaper than Chiquita. Chiquita Banana had no way of predicting in the long run that
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After the European Union put quotas and tariffs on Chiquita’s products, Chiquita should have re-evaluated whether or not to continue to export to Europe. Although they would lose a significant amount of business if they stopped exporting to Europe, the reason they were in debt in the first place was because Europe restricted import of their products and this was a problem since Europe was Chiquita’s main market. If the company had concentrated within the Americas then they would not have been forced into so much debt.

2. DIVERSIFY PRODUCTION
In order to limit the amount they were affected by natural disasters, the company could have grown bananas in other parts of the world. This would be better for the company because if natural disasters did strike in an area where they grow their products then it would not be such a financial blow as they would have more sources to receive their product. The only problem with this solution would be that it may cost more to be located in other areas, however in the long run it would be worth it. (refer to Appendix B)

3. EXPAND TO EUROPE MORE AGGRESSIVELY

Expanding to Europe may have seemed like a good idea at the time however the consequences may not have been thought out. While doing business with the European Union, Chiquita made their company international and globally well known, but it

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