The Chiquita case has important management strategies of globalization that can be enumerated. First, the company has demonstrated that independent operations from third parties are critical to sustaining operations in the long run. From the case, we learn that Chiquita produces 45% of the bananas it sells while contractors produce the rest. This means that the company can influence important supply side factors to its favor. Second, the company has demonstrated that with a management that is conscious of its future, the integration of corporate social responsibility is critical. A management strategy that is mindful of the society where the company operates has better prospects in the long run than one that does not. Third, a straight forward and accountable management is necessary. The concept of having management that can own up to mistakes, and initiate corrective action is an important measure in sustaining its business as a going concern.
There are important lessons that can be learnt from Chiquita that are also applicable to any global company. One lesson is that despite historical mistakes that a company has committed, there exist opportunities to rectify such mistakes especially if the same is done genuinely and with an objective to be better. The second lesson is that diversification of products and markets is better. Chiquita, in the early 1990s focused on the European market to generate much of its revenues. A single policy shift by the European Union in 1993 robbed the company and important market which led to loss of business and revenue to the company. The company, if it has diversified its market earlier enough, could not have experienced this kind of a shock. Overreliance on bananas made the company easily become a victim of circumstances. The impact could have been reduced should the company have diversified into other products.
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