Monsanto: Linking Core Competencies to Market Opportunity
Case Summary:
Monsanto Co. is an innovative biotechnology company that is currently the world’s largest seed company. Since its inception in 1901, Monsanto has continually reinvented itself to realize growth opportunities in a wide spectrum of marketing environments. In 1981, a shift in strategic focus towards biotechnology has propelled the company to $11.7 billion in annual sales with over 20,000 people in 160 countries. As the world faces a growing population and declining natural resources, Monsanto’s technological innovations with genetically modified seeds have increased crop yields around the world. Although the company has enjoyed significant growth in recent
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What are the major strengths, weaknesses, opportunities and threats (SWOT) associated with Monsanto?
Monsanto’s strengths include technological innovations in biotechnology anchored by substantial investment in research and development that have produced many patents, and allow the company to react swiftly to changes in the strategic environment. Their presence in 160 countries provides favorable access to distribution networks around the globe.
A major weakness for Monsanto is consumer perception that its products are unhealthy for human consumption and have negative consequences on the environment. Another major weakness for Monsanto is the expiration of their main patent in 2014 of their Roundup-ready soybean. JPMorgan estimates losses of up to $500 million in royalties that the company receives from licensing Roundup-ready soybean to competitors.
According to the United States Department of Agriculture, only 11% of global land surface is considered suitable for agricultural production. With a surging global population and increased land degradation caused by human activity, higher yielding crops with resistance to various environmental conditions will become essential to maintaining an adequate food supply for the world. Monsanto’s technological innovations in biotechnology, and specifically genetically modified seeds, present a unique opportunity to capitalize on one of the world’s great challenges in the 21st century.
Growing consumer
The biggest stakeholder that Monsanto does not respond well to is the people that ultimately consume its foods. In addition, it also could improve its relations with farmers and environmentalist. Many people believe that GMOs are bad for peoples’ health. This may or may not be true because there are so many different opinions about this. However, even with the varying information, Monsanto could try harder to assure consumers there are no health concerns related to GMO foods. One way to do that would be to conduct a very good study on weather GMO food can cause health problems and show the study to the public. The down side of this would be if GMOs were bad for people’s health, but if Monsanto was truly an ethical company, they would not want to sell products that are bad for people’s health thus they should be willing to accept the risk.
Monsanto positions itself as a relatively new agricultural company having formed in 2002, and focused on supporting local farmers around the world. They also promote themselves as a guardian of the environment with a mission “to produce more food while conserving more” (Monsanto.com). Today’s Monsanto conglomerate also promotes itself as the “New Merchants,” a leading research company in the field of agriculture-crop production, as well as a strong supporter of public and private research through its grant, donations and University scholarship programs.
Monsanto is a known name in America correlated with the farming industry, but most people do not even scratch the surface in researching the company. The name appears in colleges and in many articles. Monsanto is an international corporation based out of the United States of America. They are accredited with most of the genetically modified crops in the country today. In 1996, Round Up Ready soybeans were introduced to the farming community. (Brown) This was main introduction of GMOs into agriculture. By 2003, Monsanto already
Monsanto is an American agrochemical corporation which manufactures pesticides and GMO crops. One of the most well recognized herbicides is Monsanto’s Roundup, which contains the carcinogen glyphosate. To prevent from killing the crops when farmers apply Roundup to their fields, Monsanto invented GMO versions of many staple crops such as corn, soybeans, and cotton which resist Roundup. Like the weeds, these GMO crops still absorb glyphosate, however the crops are able to stay alive through changes in their genetic makeup which make them herbicide resistant. The herbicide tolerance of certain crops has been adopted because it, “simplifies weed control to the use of a single herbicide and a flexible and easy management strategy” (Labrada, 2003), as well as decreasing the cost of weed control programs. As a result, Monsanto bought out most small farms and now owns 80% of the U.S. market share of corn and 93% of the U.S. market share of soy, which are then sold to modern food processing. Upwards of 75% of the processed food on American supermarket shelves contain genetically engineered ingredients. Not only are Americans consuming massive amounts of GMOs, which pose a huge health risk themselves, they are also consuming massive amounts of glyphosate, a chemical known to cause cancer and birth defects (Kruger, 2014). If society stopped consuming carcinogens, the cancer epidemic will be
Monsanto describes there work in a positive manner saying it is a breakthrough for the agricultural industry and they are trying to help farmers all over the world with crop problems. Such as pesticides, weeds, droughts and weather. They also claim to be an advantage because more food can be grown using GMOs and that’s what the world needs with the population drastically increasing over the years. “In about forty years, relentless dry spells may be more frequent across the Southwest, say climate scientists, and California may have more dry years like this one, in which a drought has crippled the agricultural sector” ( Ostrander, 6). Many people for GMOs say it’s a break though, because GMO crops can be grown regardless of the climate. However, there is nothing natural about the foods it is not worth harming the environment even more than our society already has.
Monsanto is involved in a variety of ways,“The company produces the herbicide RoundUp, and also seeds whose genes have been engineered to survive RoundUp's active plant-killing ingredient. Now the vast majority of this country's soybeans, corn, sugar beets and canola possess those engineered genes,”(Boyle). Initially, this seems quite innocent, however, there’s no telling what kind of chemicals are being introduced into the food supply in order to allow these plants to survive. Also, sugar and corn are contained within almost every non organic product Americans consume, which means virtually everyone is ingesting these potentially harmful chemicals. Monsanto’s RoundUp resistant seeds should seem to be a farmer’s best friend, but it’s not always so simple, “As Rinehart would recall, the man began verbally attacking him, saying he had proof that Rinehart had planted Monsanto’s genetically modified (G.M.) soybeans in violation of the company’s patent. Better come clean and settle with Monsanto, Rinehart says the man told him—or face the consequences,”(Barlett). Simply dogmatic in his manner, the mysterious Monsanto man would not take no for an answer, even though later in the article Mr. Rinehart states that he isn’t a farmer and they have the wrong guy. Commonly referred to as seed police, even gestapo or mafia, this elite force of Monsanto maniacs are lifeless and drone-like in the sense that they will stop at nothing in order to obtain a profit, and if it’s the wrong person they’ll still use scare tactics to weasel cash out of innocent civilians. Saying that Monsanto is heavily involved in the production and distribution of genetically modified crops and seeds is a massive understatement, to demonstrate this,“In 1996 when Monsanto introduced RoundUp Ready Soybeans, the company controlled only 2% of the U.S. soybean market. Now, over 90% of
Stakeholders are comprised of a multitude of people that have an interest in a company including employees, customers, special interest groups, board of directors, regulatory agencies, and investors (Ferrell, Fraedrich, Ferrell, 2015). Monsanto has an interesting history, and has impacted stakeholders in a negative manner throughout its beginnings in 1901. The current stakeholders that are impacted by Monsanto activities are all of the above listed. The company has had legal issues in the past with the widely known issue of the development of Agent Orange and the impact on our veterans. After settling for 180 million dollars, the company became a biotechnology company developing biotechnology products in the farming industry. Stakeholders on both sides of this issue have voiced positive and negative concerns. Positive
According to Natural Society, people like Hugh Grant, and Bill Gates who own millions of shares in Monsanto stock are not the real owners of Monsanto. The main owners of Monsanto are institutions. The leading institution for Monsanto is a company is called the Vanguard group. Vanguard owns 3 trillion dollars in investments in different companies like Monsanto. Additionally, they own such companies as Bank of America, JP Morgan, Wells Fargo, and others. Employees of Monsanto seem to be interested in agriculture. Most of the employees are scientist, and agricultural experts. Employees enjoy working with farmers, and enjoy generating new ideas. Every project that is worked on inspires innovation allowing Monsanto, to stay on the cutting edge,
In this research paper the researchers try to demonstrate that Monsanto is falsely accused of being evil, however, in reality, does a lot of good things. The companies market power is the most intimidating aspect of the company. Works
The Monsanto Company is an agricultural business whose main focus is the development and sale of Genetically Modified Organisms. In 1996, the United States Department of Agriculture allowed Monsanto Company to begin field testing their newly developed Genetically Modified soybean
“Monsanto Company started off its chemical business in 1997, Monsanto traces its roots to John Francisco Queeny, a purchaser for a wholesale drug house, who formed the Monsanto Chemical Works in St. Louis, Missouri”(Barboza). In the mid-1990s, it became the first to widely market genetically engineered
Monsanto may request government assistance and fight against superbugs by counting farmers to use Monsanto's transgenic products and create a shelter where they can plant some of their fields with the nongenetically modified culture. In addition, farmers can vary to practice herbicide use and crop rotation to prevent resistance to Roundup herbicide. The company may also cooperate with international conservation organizations to conserve biodiversity. In this case, interested parties should make their own decisions on genetically modified crops.
The various stakeholder groups of the Monsanto company include stockholders, employees, executives for the company, the environment, communities, farmers, and the public as a whole. These stakeholders are all impacted by decisions made toward Monsanto's products, regulations on these products, and the ability for the organization to either direct public attention toward supporting Monsanto's policies or refuting and rejecting their policies. Public perception is a major factor that impacts Monsanto, and this is why consumers in Europe are able to choose whether or not they want to indulge in GMO products while those in the U.S. are forced to choose GMO without their knowledge beforehand. This is because European nations, which are stakeholders
The objective of this report is to analyze the differences in Monsanto’s experiences in the United States and Europe and the reasons of opposition in Europe, despite that, why Monsanto pushed ahead so hard.
Monsanto is a company that some people may not be explicitly familiar with on a first name basis. However, the work that the company has done over the last century, with a larger emphasis on its most recent ventures, have been deeply engrained in our lives, our food, and our economy. Monsanto has those who advocate on their behalf in addition to their naysayers. While Monsanto has made huge strides in terms of biotechnology over the last couple of decades, their accomplishments, and the relevant methods, have not been free of criticism and controversy. In order to analyze Monsanto’s corporate environment, it is important to first explore their Strengths, Weaknesses,