Monsanto Swot Analysis

1260 words - 6 pages

Monsanto SWOT Analysis
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 ...view middle of the document...

* Re-establishing its public image in the eyes of consumers, governments.
* Land shortage in the future
* Inter-country Economies
* Natural Disasters – outbreak of new diseases
* Seed mutation possibilities – cause more diseases
* Culture barrier – different views on GE foods
* Technology taking over farmer’s role, causing unemployment.
Monsanto In Europe
The Europeans have been resisting genetically modified (GM) food for a long time. Monsanto has been facing stiff resistance from the EU over its portfolio of GM foods. Their approval is important for Monsanto as the EU’s position on GM foods influences the global debate.
In April of 1996, few different varieties of US-grown genetically modified soybean began to enter the UK commodity markets. Monsanto’s Roundup Ready variety of GM soybeans was among them. In August that same year, the Environmental Ministers council of the European Union gave Monsanto permission to import and grow genetically modified soybean throughout Europe. Prior to this, GM soybeans could only be sold in US, Canadian and UK markets, the EU new ruling allowed GM soybeans into Europe had significantly increased Monsanto’s potential market. Additionally, it allowed the current 1996 plantings to be imported into Europe without additional testing or labeling.
Unfortunately, following the introduction, field trials were sabotaged and destroyed as environmental protection organizations were vocally protesting GMOs, and European public opinion of GM technologies began a steady decline. Truth is, the GM industry has never gained full approval or support from the public in the EU. There has been a moratorium on the approval of new GM crops since 1998 caused by the public anxiety over the potential risks of GM foods. (The Guardian UK, 2002) Many Europeans wanted to know of the presence of GMOs in their foods because they believed GMOs to be completely novel. Perhaps the fear were further anchored by the 1995 outbreak of “mad cow disease” (bovine spongiform encephalopathy or BSE) in Europe, where it no doubt exacerbated public resistance to novel food technologies. The thing about European cultures is, they placed great confidence in knowledge learned through historical experience. Even food practices that were questionable by today’s standards were accepted in Europe if they had been going on for centuries without major incident.

Yes, several laws have been passed on this subject, the Regulation of 2004 laid down procedures on traceability and labeling of genetically modified organisms (GMOs) and all products produced using GMOs. The mandatory labeling legislation extends its requirement to all food and food ingredients produced from GMOs regardless of the detectable presence of DNA or protein within the final food product. These actions severely affected Monsanto, as labeling foods as GM would stigmatize/denounce the foods. (The Guardian UK, 2002) 

With a general...

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