The paper analyses defferent options of the company. One of the first options the company had was to leave the country. An exit strategy would really hurt the Columbian economy due to the fact that the business activities of the company generated about $70 million for the local economy. The firm also employed directly and indirectly over 12,000 people. The company also had a long history of business success in this country since they had established a market presence in Columbia for over 100 years. An exit strategy would cost the company millions of dollars due to the fact that the firm has a business infrastructure set up in Columbia. The company should disregard this option due to the losses the firm would incur and because of the importance of the firm’s operation for the local economy.
The second strategic option Banadex had was to disregard the offer from AUC and continue doing business in Columbia. This option is extremely risky because disregarding the offer made by AUC would put the lives of its workers in danger. The AUC is a paramilitary group that has over 8,000 soldiers. The group is so strong that not even the Columbian government is willing to fight against them. ...Show more