Case Studies in Strategic Management

Case Study on Monsanto 67

STAKEHOLDERS OF MONSANTO—A BRIEF REVIEW

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.

STRENGTHS, WEAKNESSES, OPPORTUNITIES

AND THREATS (SWOT) ANALYSIS

Company profi le is the essential source for top-level company data and information. The company

profi 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

fi scal year ending on August 2007, an increase of 17.4 per cent over the fi gure of 2006. The operating profi t

of the company was $1,418 million in fi scal year 2007, an increase of 21.1 per cent over the fi gure of 2006.

The net profi t was $993 million in fi scal year 2007, an increase of 44.1 per cent over the fi 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 profi table.

HR policy —Monsanto is regularly honoured with awards recognizing the innovation, leadership and

workplace satisfaction of its employees. This recognition generally refl 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

confl icts and disturbances with its distributors.

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