Submitted by: Submitted by weehan
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Category: Business and Industry
Date Submitted: 12/06/2010 12:14 AM
Monsanto SWOT Analysis
Introduction
Monsanto Company (Monsanto) is a global provider of agricultural products. The company produces seed brands in large-acre crops like corn, cotton, and oilseeds (soybeans and canola), as well as small-acre crops like vegetables. (Monsanto, 2010) It is headquartered in St. Louis, Missouri and employed 18,800 people as of August 2007. (PRlog, 2008) The US is Monsanto´s major market. Monsanto also has operations abroad, covering the regions of North America, South America, Europe, Asia, Australia and Africa. The company recorded revenues of $8,563 million in the fiscal year ended August 2007, an increase of 17.4% over 2006. The operating profit of the company was $1,418 million in fiscal year 2007, an increase of 21.1% over 2006. The net profit was $993 million in fiscal year 2007, an increase of 44.1% over 2006. (PRlog, 2008)
Strengths
* It is the world's leading producer of the herbicide glyphosate, marketed as "Roundup".
* Wide range of customers from US to Asia.
* Leading producer of genetically engineered (GE)seed (Greenpeace International, 2008)
* Experienced – Been in the agricultural business since 1901.
Weaknesses
* Aggressive litigation
* Practices political lobbying ,
* Business practice considered controversial around the world
* Primary target of the alter-globalization movement and environmental activists.
* Seed patents violation by farmers
* Controversial history in India – Child labor (Venkateswarlu) & Farmers suicide (Frontline World, 2005).
* False advertizing in France (Organic Consumer Association, 2007)
Opportunities
* Cooperation with BASF - largest chemical company in the world headquartered in Germany - in research, development and marketing of biotechnology (BASF - The Chemical Company, 2007)
* Improving Biotechnology processes and chemicals
* Rich land space in countries that Monsanto haven’t ventured into.
* Re-establishing its public...