Monsanto Swot Analysis

Stephen Whitlatch

Management Practices

Dr. Marzano

3/14/2016

SWOT Analysis: Monsanto

Background

     Monsanto is an agricultural based company headquartered in St. Louis, Missouri.  The company is a world leader in agricultural seeds and crop protection chemicals.  They produce seed brands like Asgrow and DeKalb and also manufacture Roundup brand herbicide and other lawn and garden herbicides to for residential use.  Scientific advancements have allowed Monsanto to reduce challenges faced by farmers and enable them to increase their yields and protect their harvests from weeds and insects.  These protections are now seed-based, meaning the each seed has been genetically modified and are resistant to herbicides and pesticides.  Monsanto faces industry competition from companies like DuPont, Bayer Crop Science AG, and Syngenta.  The company needs to continue to advance seed technology, maintain open dialogue with the concerned public regarding the safety of its products, and branch into new markets to maintain revenues.

Strengths

    1. Advanced Technology: To help farmers get the most of each acre Monsanto utilizes advanced breeding techniques, biotechnology, and improved agronomic practices.  Monsanto invests large amounts of money in research and development to deliver superior seed products to farmers.

     2. Diversified operations: Geographically Monsanto is established throughout North America and has a strong presence in South America, Africa, Asia, Australia and Europe.  Internally, Monsanto has two main divisions. Seed and Genomics handles soybeans, corn, wheat, cotton, fruits and vegetables.  Agricultural Productivity handles Roundup and other agriculture products.

     3. Strong Brand Portfolio: According to the company (2015), “Monsanto offers a wide range of corn, soybean, cotton, wheat, canola, sorghum and sugar cane seeds.  These products are offered through various brands—each of which provides farmers around the world with the solutions that best fit their farms.”  Recognizable brands include Asgrow and DeKalb seeds, and Roundup and Warrant weed controls.  

Weakness

     1. Poor Public Image:  Monsanto has faced scrutiny from the general public and the government in recent history.  According to Hopkinson (2013), “Monsanto was declared ‘the most evil corporation of the year’ in early 2011 by NatrualNews.com”.  Groups have protested the company due to its reluctance to label objects containing genetically modified organisms (GMOs).  The company has also received criticism for its impact on the environment and for potential harm to people living near production and dump sites.  Machan (2013) states, “some blame the company for causing allergies, autism, and cancer, while others say Monsanto’s products are responsible for the emergence of ‘superweeds’ and ‘superbugs’”.

Opportunities

     1.  Growth in emerging regions of Asia and Africa:  Populations are growing rapidly and the demand from feed crops for animals is growing as well.  Crop yields in regions of Asia and Africa are significantly lower than those in the United States due to drought and lack of pest control.  Monsanto is working to develop more drought-tolerant and pest-tolerant seeds for these regions.

2. Improve image campaign:  The company has recognized that biotech has a public image problem.  Monsanto and is now willing to engage in conversation about their business to allow critics to better understand what the company does.  Hopkinson (2013) states, “among Monsanto’s most visible public outreach initiatives is its participation in GMO Answers, a website launched by the Council for Biotechnology Information in order to better engage in the public debate on biotechnology”.