Case Study on Monsanto 67
The booming agricultural biotechnology industry in developing countries has opened up tremendous
opportunities for many multinational corporations. But the entry of such companies into this lucrative
market is not easy. The main reason is the challenges posed by the key stakeholders like media,
environmental groups and regulatory authorities in such countries. Monsanto continues to engage with
select stakeholders to gather information to make informed decisions and to share its practices with all
stakeholders. At Monsanto, they are committed to building relationships based on integrity. Integrity, in
alignment with their pledge, helps the company to earn and retain the trust of people with whom they do
business. Monsanto is proud of its winning culture. It is based on several important norms:
Taking ownership of the company’s success
Delivering products and technology of the highest quality
Building strong relationships
Creating a great place to work
Conducting themselves with integrity
These are the work culture characteristics at Monsanto that helps it to develop a relationship with its
stakeholders that grows stronger and better day by day.
Company pro le is the essential source for top-level company data and information. The company
pro le report examines a company’s key business structure and operations, examines its history and
products, and provides a summary analysis of its key revenue lines and strategy.
Monsanto is a global provider of agricultural products. The United States is Monsanto’s major market.
However, Monsanto also has substantial operations abroad, covering the regions of North America,
South America, Europe, Asia, Australia and Africa. It is headquartered in St. Louis, Missouri, and
employed 18,800 people as of August 2007. The company recorded revenues of $8,563 million in the
scal year ending on August 2007, an increase of 17.4 per cent over the gure of 2006. The operating pro t
of the company was $1,418 million in scal year 2007, an increase of 21.1 per cent over the gure of 2006.
The net pro t was $993 million in scal year 2007, an increase of 44.1 per cent over the gure of 2006.
Strengths—to Build On
Brand equity —Monsanto is a global provider of agricultural products. The United States is
Monsanto’s major market.
Research and development (R&D) —Through investments in plant breeding and biotechnology, the
company is working hard to deliver products that make farmers more productive and pro table.
HR policy —Monsanto is regularly honoured with awards recognizing the innovation, leadership and
workplace satisfaction of its employees. This recognition generally re ects the feedback provided
by the company’s employees and others in the society .
Weaknesses—to Cover
Relationship with distributors —Since time immemorial, Monsanto has been popular for placing
a very high brand value on serving its customer in the best possible way, although it has regular
con icts and disturbances with its distributors.
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