1Who or what to blame for Chiquita's financial difficulties?
The main reason for Chiquita's financial problems was the inappropriate management. The manager did not understand the situation in the international market in 1993 well and was not ready to change the company's international strategy regarding new quotas from EU, as it did other bananas exporter companies.
As Chiquita was greatly dependent on European market, the main priority for it should have been the good relationship
showed first 75 words of 1021 total
showed last 75 words of 1021 total
the levels of dependency on bananas for the major fruit traders in 1999. As an example of diversification away from bananas, Del Monte share of bananas over total sales went down from 56% in 1998 to 46% in 2001.
The combination of unfortunate market circumstances and inadequate market strategies put Chiquita in a very difficult situation, suffering continuous financial problems that obliged the company to file a Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy Code in November 2001.