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AN empire built on controversy

AN empire built on controversy. By: Thomas Liquori. MULTINATIONAL ENTERPRISE. Operate in many host countries Often conduct R&D activities MNE’s cut across national borders Often directed from a company planning center that is distant from the host country. NATIONAL SOVEREIGNTY.

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AN empire built on controversy

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  1. AN empire built on controversy By: Thomas Liquori

  2. MULTINATIONAL ENTERPRISE • Operate in many host countries • Often conduct R&D activities • MNE’s cut across national borders • Often directed from a company planning center that is distant from the host country

  3. NATIONAL SOVEREIGNTY • A controversial issue involving the conduct of MNE’s is their effect on the economic and political policies of the host and source governments • Many nations fear that the presence of MNE’s in a given country results in a loss of its national sovereignty

  4. CHIQUITA’S COMPANY PROFILE • United Fruit Company was Founded in 1899 • Purchased of Nipe Bay in 1907 and Saetia Sugar in 1912. • Bought Samuel Zemurray's Cuyamel Fruit Company in 1930 • United Fruit purchased A&W restaurants and root beer in 1966 and Baskin-Robbins ice cream in 1967 • Eli Black, founder of AMK, bought United Fruit Company in 1970 and changed its name to United Brands. • The firm became Chiquita Brands International in 1990

  5. MAIN INDUSTRY • Chiquita’s main industry is fresh fruits, vegetables and processed food • The company grows, procures, markets, and distributes bananas and other fresh fruits and vegetables under the premium Chiquita and other brands

  6. ORGANIZATIONAL STRUCTURE

  7. CHIQUITA’S SWOT ANALYSIS

  8. BANANA CONTROVERSY • Throughout the 1900’s the term “Banana Republic” has been associated with the banana producing countries of Central and Latin America • 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.

  9. CHIQUITA CONTROVERSY • In 1985, Costa Rican environmentalists filed a lawsuit, on behalf of banana plantation workers • Chiquita secretly control dozens of supposedly independent banana companies • Chiquita fruit-transport ships have been used to smuggle cocaine into Europe

  10. BLOODY BANANAS • 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

  11. Quick Financial Points • First quarter financial report stated Chiquita made a $31.7M profit in 2008, after losing $3.7M the same period the prior year • The actual amount of bananas that people bought dropped by 1% in the U.S & 14% in Europe

  12. Chiquita’s New Endevor • In 2008 Chiquita opens large plantations in Africa, Mozambique , and Angola, to get around the European tariff regulations • Many compare George Bush to the CEO of Chiquita Bananas by not being able to make reasonable statements

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