Chiquitas Global Turnaround Essay

2694 Words Aug 31st, 2013 11 Pages
Executive Summary
This report details several international management problems that Chiquita has been faced with over the past two decades. Many of these problems are to do with the company’s previously poor image when it came to Corporate and Social responsibility. Over the years Chiquita faced many accusations about the conditions workers were faced with at many of their facilities in Latin America and have also had their environmental policies questioned many times in the press. The company has made great strides in recent years in improving their public image with regards to corporate and social responsibility. In particular Chiquita’s commitment to the Better Bananas Project has helped improve their public image along with the
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These new Tariff’s not only cut the company’s market share by over 50 percent but also significantly affected their ability to compete in the EU’s $6.7 Billion USD banana market. (Luthans, & P. Doh, 2012). This was a massive regulation of trade issue for Chiquita as they believed the EU’s decision to grant their former colonies preferential tariff rates was in direct violation of the fair trade principles specified in the WTO. These principles stated that countries must not discriminate against one another in their trade relations. (Luthans, & P. Doh, 2012).
One of the key sub-issues that caused this issue for Chiquita was the EU’s 1992 integration program which saw the 12 member nations of the EU do away with their previously separate banana import regime’s and implement one uniform set of tariffs for the whole EU. (Patterson, 2001) This important change in international law saw Chiquita go from only having some quotas to deal with when exporting to the EU to now having to pay an extra 33% tariff than their rival importers from ACP countries. (Patterson, 2001)
Although the EU’s new regime was immediately protested by the U.S.A and many Latin American countries this presented another significant legal international

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