Case 3 MONSANTO BALANCES THE INTEREST OF MULTIPLE STAKEHOLDERS

CENTRAL PROBLEM: How can Monsanto stay farther and at the same time eradicate the fear
concerning its industry and fully gain the trust of the public?

MINOR PROBLEMS:
1. Bad image resulting from past inventions
2. Issues concerning the safety and environmental impact of its products
3. Presence of competition
4. Issues concerning the effectiveness of its products
5. Product licensing issues
OBJECTIVES:
1. To eliminate the fear of the public concerning the possible ill effects of its products
2. To provide assurance to the public that their product is safe for consumption and for the
environment as well
3. To have a competitive advantage over competitors
4. To be able to gain the trust of the public
5. To be able to increase global exposure
6. To be able to protect its product from being copied by other companies
Alternative Courses of Actions:
1. The company should build a strong brand image
Advantages:
a. Increase customer loyalty
b. Introduction of new products becomes easy
c. competitive edge in the market
Disadvantages:
a. it is costly
b. it is difficult
2. The company should focus on product innovation
Advantages:
a. It will improve productivity
b. It will improve brand recognition and value
c. It will increase competitiveness
Disadvantages:
a. It is very costly
 b. It is time consuming
c. It may result to wastage of money when developing a product that doesn’t sell
3. The company should engage in partnerships
Advantages:
a. It may result to more business opportunities
b. It will somehow help build the image of the company
Disadvantages:
a. It may result to future selling complications
b. liability is shared between partners
4. The company should engage in multi-channel distribution strategy
Advantages:
a. It will improve customer loyalty and satisfaction
b. More flexibility for the company
c. Better market coverage
Disadvantages:
a. complex logistics
b. information can’t be transferred across channels
5. The company should make sure that its products are patented
Advantages:
a. It will protect its products from being copied by others
b. It will generate more income to the company
Disadvantages:
a. Details of invention are publicly disclosed
b. It is very expensive even if unsuccessful

CONCLUSION:
Monsanto’s innovativeness by changing its product line from chemical to food has brought the
company into success. But along that success comes a lot of challenges that the company should be
able to conquer. With all the issues concerning the company’s products possible negative effects to
human’s health as well as to the environment, Monsanto should give emphasis on the company’s
morale by building a strong brand image and continuously address the concerns of the public.
RECOMMENDATIONS:

1. The company should build a strong brand image

Explanation: In order for the company to stay longer in the industry it should build or maintain a
strong brand image. This is one way of gaining an edge over its competitors.

2. The company should engage in multi-channel distribution strategy

Explanation: This is very useful for the company to wider its market reach. The company will
be able to reach those customers outside its home country. It will be easier for the company to
distribute its products to different countries.

3. The company should focus on product innovation

Explanation: In order to stay longer in the industry, Monsanto should always focus on product
innovation. This is also one way that the company will be able to introduce new products to the
market and thereby increasing brand loyalty and competitiveness.

REFELECTION:

In this case, I have learned that companies engaging in food products have a lot to
consider when developing their products and that the company should be careful in
introducing new products to its customers. There are a lot of factors involving it that
needs to be considered such as but not limited to safety and its effects to the
environment. Thus, weighing the pros and cons of the product is necessary because
the success of the company lies on the product itself. Conflicting views of the public
towards the company is not an easy battle to conquer.

Monsanto is one of the world’s top, producers of what is known as a characteristically, modified
products, with a big portion of their products being harvest crop seed. Due to their assortment of
business, this corporation has succumbed to a lot of bad karma in the past, as far as their moral
responsibility. Their marked track record has led them to the position of being harsh, as well as,
critically scrutinized, on the topic of their inclusive public and stakeholder interest, which unfortunately
reflects once again on their lack of ethical practices and the apparent benefits to the human
population. Their focus and course as a company has been evaluated based on their current and
momentous examples, as well as the overall systematic findings…show more content…
The Monsanto’s Company was originally started back in 1901, which was over 113 years ago and
was founded by John F. Queen. The company was originally the primary producer of Saccharin. The
Monsanto corporation of today is based on agricultural and in supporting farmers to the best of their
ability with their mission to produce more while they are also conserving more. During the past
decade, Monsanto reinvented itself from an Agrochemical company to seed and biotech company. By
doing this, the Monsanto’s Company was able to lower some of the opposition into becoming
stakeholders. On ethical issues such as bribery, however, the company did plead guilty to and paid
the fines to the Stock Exchange Commission (SEC) and the Department of Justice. (Kearns, 2003, p.
…show more content…
Genetically modified crops have many potential advantages regarding the raising of agricultural
productivity and reducing the need for pesticides that are known to be bad for the environment. GM
(genetically modified) foods are already a large part of the Americans life; however, does the benefit
of biotech outweigh the risks? (Cost and Benefits, 2014, pp. 155-170)
Clearly, there are pros and cons that can apply to the different countries as deciding factors in the
decision of using genetically modified seed or growing genetically foods. In the United States, the
issue of safety in such a new under-studied science. The risk to Americans also appears to be too
great and as a result the use of genetically modified foods would be more beneficial and more socially
acceptable. With the genetically modified crops, they have taken national and international spotlight.
Crops that have been classified as genetically modified crops may be the last hope for the hungry
and starving people in our third world companies as well as in our country. Based on a cross
sectional exam from 1998 of crop practices, genetically modified crops have provided a variety of
farms with no significant difference in returns. Genetically modified and the problems that are
surrounding them will more than likely continue for

Advantages Disadvantages

✔ More flexibility for the company ✘ Complex logistics, higher control effort

✔ Improves customer satisfaction and customer ✘ Risk that the individual channels are not perceived as part of the
loyalty same company

✔ Better market coverage, development of new ✘ Possibility of a “cannibalization effect“

target groups

✔ Business risk is distributed further ✘ Individual sales channels aren’t connected

✔ Opportunity to reposition a company on the ✘ Information can’t be transferred across channels

market

SWOT analysis of Monsanto analyses the brand by its strengths, weaknesses, opportunities &
threats. In Monsanto SWOT Analysis, the strengths and weaknesses are the internal factors whereas
opportunities and threats are the external factors.
SWOT Analysis is a proven management framework which enables a brand like Monsanto to
benchmark its business & performance as compared to the competitors. Monsanto is one of the
leading brands in the industrial products and chemicals sector.

The table below lists the Monsanto SWOT (Strengths, Weaknesses, Opportunities, Threats), top
Monsanto competitors and includes its target market, segmentation, positioning & Unique Selling
Proposition (USP).

Monsanto SWOT Analysis, Competitors, Segmentation, Target Market, Positioning, USP & Brand
Analysis Table

Monsanto Brand Analysis

Parent Company Monsanto

Category Agro-chemicals

Sector Industrial Products and Chemicals

Tagline/ Slogan Producing more. Conserving more. Improving lives.

World leader in the production of agricultural & vegetable seeds

USP including crop protection chemicals with a commitment towards
sustainable agriculture and improving the lives of farmers.

Monsanto STP

Businesses/Customers thriving on agriculture for livelihood and

Segment
income.

Farmers who are looking for variety in products & services along with
Target Group
high yield and crop safety.

Monsanto is one of the world’s leading companies focused on

Positioning sustainable agriculture. We discover and deliver innovative products
that support the farmers who feed, fuel and clothe our world.
 SWOT Analysis of Monsanto

Below are the Strengths in the SWOT Analysis of Monsanto:

1. Wide customer base spanning the regions of North & South
America, Africa, Asia, Australia and Europe.
2. Market Leader in the production of agricultural seeds.
3. Strong R&D capabilities, harnessing the knowledge of
biotechnology and genetic engineering in delivering superior seeds.
4. Affordable pricing in view of growing customer demands along with
strong customer loyalty.
Monsanto Strengths 5. Efficient distribution and supply chain network covering diverse
regions.
6. Robust financial growth over the last decade due to increasing
demand for innovative solutions and decreasing land available for
cultivation.
7. Strong brand portfolio covering corn, soybean, cotton, wheat and a
variety of other crops.
8. Strong alliance with BASF, the world’s largest chemical company
along with collaboration of their respective R&D departments.

Monsanto
Weaknesses 1. Limited market share due to stiff competition in the sector

Following are the Opportunities in Monsanto SWOT Analysis:

1.Growth prospects are high for emerging economies especially, in the
Asia-Pacific and African regions.
Monsanto 2. Focus on soybean and GM corn seeds, especially in Latin America
Opportunities and India can enhance revenues as these regions are highly
agriculture-oriented.
3. A disciplined expenditure plan and strategic acquisitions can
increase free cash flows and enable greater bottom-lines.

The threats in the SWOT Analysis of Monsanto are as mentioned:

1. Customer loyalty decreasing due to lawsuits against the company
and harmful effects of their products.
Monsanto Threats 2. Increased competition due to accessibility and increased awareness
among farmers.
3. Environmental regulations prohibiting use of certain products of the
company.
 Monsanto Competition

Below are the top 3 competitors of Monsanto:

Monsanto 1. DuPont
Competitors 2. Bayer Crop Science AG
3. Syngenta