Monsato Company (Essay Sample)
Pages 2 Double spaced(550 words)
Number of sources 1
Citation style APA7
Bibliography / Reference page
Copies of sources
Study level College
Assignment type Research Paper
Course Business and Economics
Plagreport needed Yes
Extra Materials to be
provided later No
Background of the Monsanto company before the sale to the Bayer company.
It was an agricultural biotechnology company.
Please include the following:
➢ Corporate Mission and Vision
➢ Company’s size
➢ Countries of operation
➢ Company’s financial information & stock value trends
➢ Company’s major stakeholders
➢ Competitors, are they performing better environmental tasks?
➢ What is this company’s inter-relationship with the four segments of the environment outside the firm (macro-environment)?
Monsanto Company, was among the leading producers of agrichemical and biochemical products globally. Its expansion during the First World War (WW1) was facilitated by the federal government’s trade policy tariffs, which favored its market dynamics (“History of Monsanto,” 2020). During the WW1, Monsanto produced styrene, a highly valuable substance in the automobile and military industry. In the late 1990s, Monsanto acquired biotechnology and genetics firms and began dealing in modified agricultural seeds. By the early 2000s, it mainly manufactured agricultural and biotechnological products. Monsanto’s involvement with genetically modified products and harmful chemicals started attracting negative reactions from the public (Hanzai, 2019). Following a series of public lawsuits, the business was sold to a Bayer, a German chemical and pharmaceutical establishment. The paper highlights the company’s profile data, major stakeholders, its environmental performance, and its interrelationship with various environmental segments.
Monsanto's mission is to develop solutions and products to address the globe's increasing food needs, safeguard the environment, and preserve natural resources. Its vision is to provide high-quality products to benefit customers and the environment. Monsanto operates in approximately 150 nations and has over 15,000 employees. Monsanto was sold for €60 billion in 2016 to Bayer Company (Welle, 2016). The firm’s market capitalization rose from €56 billion in 2018 to €72.8 billion in 2019. The annual income was approximately €2.2 and €14.6 billion in 2018 and 2019, respectively. Bayer’s annual stock data report showed an increase in dividend payments from € 2.6 million in 2018 to € 2.7 million in 2019 ("Monsanto stock price," 2020). Its stock prices and market valuation also increased from 2018 to 2019.
Monsanto’s primary stakeholders include suppliers, Non-governmental organizations, consumer lobbyists, environmental groups, the public, investors, employees, and consumers. Monsanto’s main competitors include the American Dow Chemical Company, Evogene Ltd, Syngenta Company, Agrium, American Vanguard, and CF Industries Holdings (Hanzai, 2019). Although Monsanto’s environmental practices have improved since its acquisition, its competitors are performing better environmental tasks. The Dow Company, for example, recently made a significant milestone in achieving its sustainable ecosystem goal – saving $1 billion by 2025 through avoiding environmentally harmful projects. The organization announced that it had saved $500M of the targeted amount (English & Bandlow, 2020).
Inter-relationship with environmental segments
Negative public reputation typifies Monsanto’s social environment due to its careless environmental practices in the past. The public was pessimistic and critical of the genetically engineered foods because of safety concerns, following the spread of the mad cow disease in Europe (Welle, 2016). The organization still elicits dissenting reactions from the public for importing GMO commodities in Europe. The economic environment is mediated by the establishment’s attempt to merge with the EU Monsanto. Bayer and U.S Monsanto’s merger enabled the two businesses to control 28% of the global pesticide market (Welle, 2016). Currently, Monsanto is trying to amalgamate with the EU Monsanto to acquire the agrochemical sectors (Welle, 2016). The proposed integration has attracted scrutiny from environmental regulators, activities, the public, and investors.
The political environment involves the company’s anti-competitive practices that violate the patent and antitrust laws, which support healthy competitive practices in the transgenic seed market. The American Antitrust Institute recently published a report accusing Monsanto of illicit competitive practices that negatively affect product prices, quality, and choices for farmers and consumers. The firm recently invested in biotechnology in response to the inefficient nature of traditional herbicides. The technology combines seeds with round ready herbicide, which can selectively kill weeds and spare the plant. Using cutting-edg
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