Chiquita Banana Overview Essay Example For Students

Chiquita Banana Overview Essay Chiquita Brands International. Inc. is one of the most of import international sellers and distributers of nutrient merchandises derived from bananas. every bit good as other fruits and healthy bite merchandises. Chiquita Banana grosss for about $ 3 billion dollars a twelvemonth and employs more than 21. 000 people and operates in approximately 70 states worldwide. Chiquita Banana together with Dole. Del Monte and Fyffes control about 80 % of the planetary banana market. In 1993 the EU created the Common Organization of the Market in Bananas ( COMB ) to cover with the rough competition between these companies. They would let responsibility free entree to the EU but capable to quotas to bananas from the Africa’s. Caribbean and Pacific. while bananas from Latin America were capable to an import revenue enhancement of 176 Euros per ton and a quota of 2533 t. As an American company we have decided to take advantage of the new pact curtailing Latin American and ACP states from expo rting bananas to the EU. It will non be an easy undertaking because we still have to vie against European banana manufacturers. but we are an established company and we are determined to profit from this event and addition market portion in the European Union. PESTEL analysis for the European Union POLITICAL:†¢The European Union is composed of 28 member provinces.†¢The EU has created a individual market by standardising Torahs within the member provinces.†¢Some of the aims of making this brotherhood is to make a better flow on the circulation of goods. capital. people and services within the brotherhood. Once a good or service is accepted within the brotherhood it is protected from imposts. revenue enhancements and import quotas every bit long as they remain within the brotherhood.†¢Free motion of capital is intended to let investing of belongingss between states. something that could assist banana agriculturists since they can look for more fertile land in neighbouring states.†¢The pecuniary policy is the Eurozone and is governed by the European Central Bank. ECONOMIC:†¢The European Union’s GDP is ranked as figure one in the universe accounting for $ 16. 58 trillion dollars.†¢Export goods account for $ 1. 687 trillion. some of the chief export spouses of the European brotherhood are: oUS 17. 3 % China 8. 5 %Switzerland 7. 9 %Russia 7. 3 %Turkey 4. 5 %†¢Food. drinks and baccy history for 5. 9 %†¢Import of goods account for $ 2. 302 trillion dollars and the chief import spouses are:China 16. 2 %Russia 11. 9 %US 11. 5 %Switzerland 5. 8 %Norway 5. 6 %†¢Food. drinks and baccy history for 5. 2 % of import goods.†¢The service sector is the most of import one in the EU doing up 69 % of the GDP followed by the fabrication industry with 28. 4 % GDP and agribusiness for merely 2. 3 % of GDP†¢The agricultural sector is supported by subsidies from the EU and presently represents 40-50 % of the EU’s entire disbursement. Sociocultural Factors:†¢There is limited informations on European children’s fruit consumption. but the information shows that the mean fruit consumption is about 141 g per twenty-four hours. Fruit consumption is highest in Austria and Portugal and is the lowest in Iceland and Spain.†¢Girls and adult females consume more fruits and veggies and male childs and work forces do. there is no simple account to this but it’s believed to be because adult females in general are more concerned about their weight and maintaining a slender fit figure.†¢Children tend to eat less fruit as they age. but it’s the exact opposite with grownups. Intake degrees addition with age. perchance because income and cognition additions and one becomes more cognizant of the benefits of good feeding wonts. †¢Men once they are married have an addition in fruit consumption. Women seem to hold an impact on their husband’s fruit consumption every bit good as the assortm ent of fruits eaten. Womans tend to manage ‘health-related’ issues more normally than work forces so they tend to purchase and cook more nutrient than work forces.†¢Children’s fruit consumption degrees straight correlate with how much their parents devour. But force per unit area to eat fruit does non positively affect children’s intake. but it is enhanced when parents are good role-models and promote them to eat fruits and veggies.†¢People with self-efficacy inclinations have a higher fruit consumption in grownups. besides people with a high self-esteem tend to eat more fruits and veggies because they take their wellness into history. TECHNOLOGICAL: †¢The EU is funding a undertaking for pesticide free fruits and veggies by taking the menace of fruit flies. Helping husbandmans meet customers’ demands for safe fruits while being environmentally witting. oThe undertaking make-believe to utilize an insect attractant to pull insects and pathogens such as: infective microorganisms. virus. fungus that cause diseases in fungus. oThis attractant will be applied in the signifier of an insect trap near plantations to take bugs off from plantations. this will be a durable and biodegradable baiting station. †¢Europe is going more witting about keeping a cleansing agent environment. the EU is committed to supplying a better hereafter for the following coevalss. So they specialize on clean energy. from turbines in Germany to solar panels in Spain. and states across the EU are utilizing natural resources of sustainable energy conveying investing to concerns and citizens. LEGAL:†¢With the birth of the Single European Market in 1993 the Common Market Organization for Bananas was put into consequence ( COMB ) . COMB is concerned on the importing. sale and distribution of bananas. †¢A policy was set in gesture leting EU providers to export responsibility free bananas to all EU provinces. Besides quotas were set for African. Caribbean and Pacific states ( ACP ) enforcing import licences for a fixed rate of volume of bananas. and limited imports through overly high duties. oA quota of 857. 000 dozenss for responsibility free entree from ACP states †¢Three types of licences were issued in order to modulate this quota to ACP states †¢Third states that were non considered in the quota are capable to a duty of Ecu 850 per ton. †¢In order to forestall any loss of income by EU banana manufacturers a compensation of payments for 850. 000 dozenss were granted in instance the monetary values fell below the production costs. ENVIRONMENTAL: †¢Flat-free H2O coursers are common in some states in Europe. This does non promote efficient behaviour to families and agribusiness harmonizing to a study from the European Environment Agency ( EEA ) . †¢The EEA is sing H2O pricing in the undermentioned states: Croatia. England and Waless. France. Germany. Netherlands. Scotland. Serbia. Slovenia and Spain. †¢In most states. husbandmans are allowed to utilize as much H2O as they want for a level rate. By bear downing the sum of H2O used in Europe it prognosticated to cut down on H2O used by agribusiness for about 10 – 20 % . This will force husbandmans to non merely cut down on their H2O ingestion but to put on better irrigation system every bit good as repairing H2O leaks. †¢The general population in the European Union seem to back up this gesture to cut down H2O overexploitation. about 84 % of the population agree with this rule. Paper Persuasive EssayEven though spirit and consistence remain virtually integral. this ocean trip shortens the shelf life to be 7-10 yearss. Portugal would be a strategic point for the company’s internationalisation scheme. A logistics platform could be set up in Porto. a northern metropolis in Portugal. this manner we can kill two birds with one stone. We re-fuel the ships and acquire them cook for their journey to Sweden ( our top precedence in footings of distribution ) and unload some containers to administer Portugal’s banana demand. Aside from Portugal the states with the highest ingestion of bananas per capita is in Northern Europe. so another logistic platform would be convenient as a concluding halt before the concluding finish in each state. Le Havre. France would be a convenient location since it is south of the UK and it is cheaper to hold a distribution centre at that place because the euro is non every bit strong as the sterling lb. Once we have our lo gistics platform set up in Le Havre we can do adjustments and understandings with companies and retail merchants that handle fruits and veggies belonging to the states that have the highest banana ingestion. We would present to the undermentioned terminus or ports: †¢Gothenburg. Sweden†¢Brighton. United kingdom†¢Skagen. Denmark†¢Finland is a little more unaccessible through the Baltic Sea. so we would transport Finland’s required bananas to Gothenburg. Sweden every bit good. From Sweden we could work another logistic path to acquire to Finland by truck.†¢Porto. Portugal †¢Le Havre. FranceOpportunity:Iceland is Europe’s top manufacturer of bananas with their universe of the art nursery installings. even though they rely on their engineering they have to invariably supervise their merchandises and make the proper environment for the bananas. This is where Chiquita banana has an chance since they don’t have to worry about making the right conditions for banana growing. the company looks for a convenient location for banana growing and workss the fruit. This enables the company to worry entirely on cropping and transportation. Another advantage that the company has over the biggest European banana manufacturer is that. Chiquita banana can get bananas in monolithic measures while Iceland’s manufacturers have to make the environment to turn more bananas. This is unless the COMB sets a tighter quota. IncotermAn incoterm is a made up word composed of three words. ‘in’ means international. ‘co’ commercialism and ‘term’ agencies term. Incoterms are used to depict the type of relationship between purchaser and provider and they type of contract they use to present and have a merchandise. POSSIBLE INCOTERMS FOR THE COMPANY As a marketer the most optimum incoterm for the company would be to hold with the purchaser of working with ‘Ex Works’ since the purchaser would hold to presume the transit costs and the hazards of brining the goods to their shops. I believe this to be really one sided and non efficient. since in order to maximise net incomes a concern trade has to be long-run. Sooner or subsequently one of the viing trade names could offer our purchasers a better understanding and we would be out of concern. so I would name this a ‘lose-lose situation’ . Another option would be the exact antonym from ‘Ex works’ where the marketer mantains most of the duties and disbursals while there is minimal for the buyere. This would be a DDP. here the â€Å"seller is responsible for presenting the goods to the named topographic point in the state of the purchaser. and pas all costs in conveying the goods to the finish including import responsibilities and revenue enhancem ents. Seller is non responsible for droping. † this is besides really one sided. My belief is that if we are traveling to hold a long lasting relationship with our concern spouse we have to compromise. and here we would be taking all most of the bourden of the concern trade. Solution As already stated earlier. in order to make a long lasting relationship with our concern spouses and maximise net incomes we have to compromize. Chiquita Banana is seeking to derive marketshare in Europe. so the best thing we can make with our concern spouses is to portion the transit load and costs. Deliverd at Terminal ( DAT ) incoterm would be the best feasible solution for Chiquita and our purchasers. We can assure to present the merchandise fresh. safe and sound to the undermentioned metropolis ports: Gothenburg. Brighton. Skagen. Porto and Le Havre. We can accept all costs and hazards ( except for import clearance costs ) and from each terminus they can direct the bananas to their several distribution centres or straight to the retail merchants. That is up to our concern spouses to make up ones mind. It is safe to state that we are taking most of the costs. since it is expensive to traverse the Atlantic with ships and keep the fruit at a certain temperature to maintain it fresh . But in order to hold our purchasers support. we have to travel the excess stat mi. This scheme at the same clip will rush up the procedure of internationalisation and market portion addition for Chiquita Banana. Plants Cited â€Å"European Union. † Wikipedia. Wikimedia Foundation. 20 Oct. 2013. Web. 20 Oct. 2013 â€Å"Economy of the European Union. † Wikipedia. Wikimedia Foundation. 18Oct. 2013. Web. 20 Oct. 2013 â€Å"Economy of the European Union. † Wikipedia. Wikimedia Foundation. 18 Oct. 2013. Web. 20 Oct. 2013. â€Å"Intelligent Approaches to Achieving Pesticide-free Produce. † N. p. . n. d. Web. 20 Oct. 2013. â€Å"CHAPTER 3 BANANA IMPORTING COUNTRIES AND TRADE POLICIES. † The World Banana Economy. 1985-2002. N. p. . n. d. Web. 20 Oct. 2013. â€Å"Water: Charging Full Cost Can Promote More Efficient Use. † — . N. p. . n. d. Web. 20 Oct. 2013. â€Å"Chiquita. com – Chiquita Organic Bananas: Organic Food. † Chiquita. com – Chiquita Organic Bananas: Organic Food. N. p. . n. d. Web. 20 Oct. 2013. â€Å"Europe Largest Banana Importer Worldwide. † Europe Largest Banana Importer Worldwide. N. p. . n. d. Web. 20 Oct. 2013. â€Å"Chiquita. com – Social Responsibility Is How We Conduct Business. † Chiquita. com – Social Responsibility Is How We Conduct Business. N. p. . n. d. Web. 20 Oct. 2013. â€Å"Chiquita Banana Gross saless Remain Weak in Europe. † Chiquita Banana Gross saless Remain Weak in Europe. N. p. . n. d. Web. 20 Oct. 2013 â€Å"Chiquita Brands International. † Wikipedia. Wikimedia Foundation. 20 Oct. 2013. Web. 20 Oct. 2013. â€Å"Banana. † Wikipedia. Wikimedia Foundation. 20 Oct. 2013. Web. 20 Oct. 2013. â€Å"Martin Stott. † Iceland: Europe’s Biggest Producer of Bananas. N. p. . n. d. Web. 20 Oct. 2013. â€Å"Economy of the European Union. † Wikipedia. Wikimedia Foundation. 18 Oct. 2013. Web. 20 Oct. 2013.