Monsanto Company Analysis

Research on Monsanto Corporation

Duong Nguyen

New Mexico Highlands University

Table of Contents

Abstract 3

Business Summary 4

Financial Strength 5

Competitions 6

Threat of Substitutes 7

Opportunities for Growth 7

Ethical Issues 9

Poor Treatment of Workers 9

Putting Consumer’s Wellbeing at Risk 9

Political Lobbying 10

Conclusion 11

References 12

Abstract

This paper aims to analyzes Monsanto’s financial structure, strength, prospective opportunities and threats, and uncover the ethical issues in which the company is involved. Monsanto is a global corporation with great economic power and market shares. R&D and patents are the two superior advantages of the company over its competitors. The analysis of the financial strength of the company shows that investors will benefit from the high earnings from the company’s stocks. The company has a promising future with an increase in demands for its products due to a larger population. However, while Monsanto pledges to carter to the benefits of the consumers, the company puts their monetary profits above the social wellbeing of the consumers and engages in lobbying with the U.S. government. In order to protect their earnings, Monsanto does not cringe from using unethical methods and tactics.

Business Summary

Monsanto is a global manufacturer, distributor and marketer of genetically-modified seeds and crop protection products. It was originally founded in 1901, merged into Pharmacia Corporation in 2000, and separated from Pharmacia Corporation in 2002 to become an independent corporation again. Monsanto provides agricultural products for farmers in the United States and internationally. It operates in two segments, Seeds and Genomics, and Agricultural Productivity. The segment Seeds and Genomics the Company, which accounts for 66.6% of Monsanto’s gross profit, produces seed brands and develops biotechnology traits that assist farmers in controlling insects and weeds (Monsanto, 2012)....