Case Study Monsanto

1. Identify a key competitive advantage of Monsanto. What element of the external environment in which Monsanto operates mostly threatens its future? Justify.

Monsanto’s success roots back to the year 1982; on February 23rd of 1982 Monsanto scientist’s became the first to genetically modify a plant cell. As the years went by, Monsanto grew to become the world’s leading biotechnology-driven agricultural company. The Monsanto of today focuses on agriculture and supporting farmers around the world in their mission to feed, clothe and fuel the growing world. Monsanto gains its competitive advantage from three bases. Primarily, through strong patent protection; Patents are essential because corporations are strained to make substantial investments into their research and development in order to remain competitive. Secondly, Monsanto seeds have reformed the industry, generating revenues of over $8 billion from the sale of genetically modified seeds as well as having a market share of 90 percent. Finally, Monsanto is well known for its aggressive marketing strategies and questionable licensing practices, which has given the company a significant competitive advantage for numerous years. (Monsanto,2009)

A major threat that could drastically affect Monsanto’s operations is the consumers themselves. We know that the concept of genetically modified seeds is controversial because it is a relatively new idea and long-term effects of exposure and consumption of produce from genetically modified seeds cannot be studied. The discovery of adverse health and environmental effects from genetically modified seeds can create regulatory bans and most importantly a negative perception of genetically modified produce by the consumers. Although at present the public concern over genetically modified foods in the UK market has reduced, it is essential for Monsanto to continue to publicize the fact that genetically modifies foods can help address many environmental challenges, such as need to increase agricultural yields whilst using less resources such as water, pesticides and fertilizer. (Jack, Kaskey, 2010)

2. If you were the CEO of Monsanto, which groups of stakeholders must you most successfully need to engage? Why?

The notion of sustainable development has been unfolding at an incredible pace in the last two decades. As the CEO of Monsanto, a booming agricultural biotechnology company the fundamental business strategy should revolve around the idea of sustainable development. Especially in countries like India, Brazil and the continent of Africa. Therefore the groups of stakeholders include financial stakeholders, the media, environmentalist groups and the regulatory authorities. (Keating, Michael, 1992)

1. Financial Stakeholders:

Financial stakeholders can be described as