Exit strategies for Chiquita Banana
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I am proposing a business venture for Chiquita Banana to expand to the Democratic Republic of the Congo in Africa to establish banana plantations. I need help with the following:
Evaluate various exit strategies, such as divestiture of assets; handing over to joint venture partner, diversification, or shutting down operation, and contingencies for your global venture.
What type of company?
Chiquita Banana- I am proposing a business venture for Chiquita Banana to expand to the Democratic Republic of the Congo in Africa.
What assets do you have?
Everything necessary for a banana plantation.
Why is the company considering exiting or NOT?
That is what the question is asking- in what situations would exiting be considered and for the possible situations where an exit would be considered which option would be best (divestiture of assets, handing over to joint venturepartner, diversification, or shutting down).
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Exit strategies for Chiquita Banana is discussed in great detail in this solution.
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Evaluate various exit strategies, such as divestiture of assets; handing over to joint venture partner, diversification, or shutting down operation, and contingencies for your global venture.
STEP 1
Your business:
Chiquita Banana: The company has plans to grows improved banana varieties with export potential, incorporating increased productivity and durable disease resistance through conventional and non-conventional breeding techniques. Chiquita Banana will grow the 'Banana Improvement Group' developed Musa variety of bananas in the Democratic Republic of the Congo.
STEP 2
Reasons for exit:
There can be several reasons for exit of Chiquita Banana from the Democratic Republic of the Congo:
? The first being that there is an infestation of Black Sigatoka, nematodes like Radopholus Similis or any other infestation that cannot be easily be eradicated in Chiquita Banana plantations.
? The second reason is that there can be a rebellion.
? The third there is a change in the policy of the government.
? Fourth the plantation project turns out to be unprofitable
There are substantial dangers of investing in the Democratic Republic of the Congo: http://www.state.gov" High costs for labor, energy, raw materials, and transportation; a restrictive labor code; low productivity and high production costs; and a deteriorating transportation infrastructure have been among the ...
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