Case Study Description of Monsanto and Genetically Modified Organisms
The case analyses the failed introduction of genetically modified organisms (GMO) in Europe by Monsanto. Showing how a favourable context (the legacy of mad-cow disease) made it relatively easy for consumer groups and environmentalists to wage successful anti-GMO campaigns in Europe, the case examines how Monsanto attempted to deal with its image problem and how the companyA?s efforts backfired. The case then moves on to show how the industry's public-relations crisis grew into a transatlantic trade dispute pitching the U.S. administration against the E.U. Commission, analyzing the legal, economic and political issues raised by the dispute.
Authors :: Olivier Cadot, Sara McDonald, Gabel H. Landis, Daniel Traca
Swot Analysis of "Monsanto and Genetically Modified Organisms" written by Olivier Cadot, Sara McDonald, Gabel H. Landis, Daniel Traca includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Monsanto Gmo facing as an external strategic factors. Some of the topics covered in Monsanto and Genetically Modified Organisms case study are - Strategic Management Strategies, Government, Innovation, International business and Strategy & Execution.
Some of the macro environment factors that can be used to understand the Monsanto and Genetically Modified Organisms casestudy better are - – central banks are concerned over increasing inflation, increasing commodity prices, increasing household debt because of falling income levels, increasing energy prices, talent flight as more people leaving formal jobs, competitive advantages are harder to sustain because of technology dispersion, increasing transportation and logistics costs,
customer relationship management is fast transforming because of increasing concerns over data privacy, wage bills are increasing, etc
Introduction to SWOT Analysis of Monsanto and Genetically Modified Organisms
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Monsanto and Genetically Modified Organisms case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Monsanto Gmo, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Monsanto Gmo operates in.
According to Harvard Business Review, 75% of the managers use SWOT analysis for various purposes such as – evaluating current scenario, strategic planning, new venture feasibility, personal growth goals, new market entry, Go To market strategies, portfolio management and strategic trade-off assessment, organizational restructuring, etc.
SWOT Objectives / Importance of SWOT Analysis and SWOT Matrix
SWOT analysis of Monsanto and Genetically Modified Organisms can be done for the following purposes –
1. Strategic planning using facts provided in Monsanto and Genetically Modified Organisms case study
2. Improving business portfolio management of Monsanto Gmo
3. Assessing feasibility of the new initiative in Strategy & Execution field.
4. Making a Strategy & Execution topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Monsanto Gmo
Strengths Monsanto and Genetically Modified Organisms | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Monsanto Gmo in Monsanto and Genetically Modified Organisms Harvard Business Review case study are -
Analytics focus
– Monsanto Gmo is putting a lot of focus on utilizing the power of analytics in business decision making. This has put it among the leading players in the industry. The technology infrastructure suggested by Olivier Cadot, Sara McDonald, Gabel H. Landis, Daniel Traca can also help it to harness the power of analytics for – marketing optimization, demand forecasting, customer relationship management, inventory management, information sharing across the value chain etc.
Operational resilience
– The operational resilience strategy in the Monsanto and Genetically Modified Organisms Harvard Business Review case study comprises – understanding the underlying the factors in the industry, building diversified operations across different geographies so that disruption in one part of the world doesn’t impact the overall performance of the firm, and integrating the various business operations and processes through its digital transformation drive.
Strong track record of project management
– Monsanto Gmo is known for sticking to its project targets. This enables the firm to manage – time, project costs, and have sustainable margins on the projects.
Low bargaining power of suppliers
– Suppliers of Monsanto Gmo in the sector have low bargaining power. Monsanto and Genetically Modified Organisms has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Monsanto Gmo to manage not only supply disruptions but also source products at highly competitive prices.
Superior customer experience
– The customer experience strategy of Monsanto Gmo in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Learning organization
- Monsanto Gmo is a learning organization. It has inculcated three key characters of learning organization in its processes and operations – exploration, creativity, and expansiveness. The work place at Monsanto Gmo is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Monsanto and Genetically Modified Organisms Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Training and development
– Monsanto Gmo has one of the best training and development program in the industry. The effectiveness of the training programs can be measured in Monsanto and Genetically Modified Organisms Harvard Business Review case study by analyzing – employees retention, in-house promotion, loyalty, new venture initiation, lack of conflict, and high level of both employees and customer engagement.
Highly skilled collaborators
– Monsanto Gmo has highly efficient outsourcing and offshoring strategy. It has resulted in greater operational flexibility and bringing down the costs in highly price sensitive segment. Secondly the value chain collaborators of the firm in Monsanto and Genetically Modified Organisms HBR case study have helped the firm to develop new products and bring them quickly to the marketplace.
Ability to recruit top talent
– Monsanto Gmo is one of the leading recruiters in the industry. Managers in the Monsanto and Genetically Modified Organisms are in a position to attract the best talent available. The firm has a robust talent identification program that helps in identifying the brightest.
Digital Transformation in Strategy & Execution segment
- digital transformation varies from industry to industry. For Monsanto Gmo digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Monsanto Gmo has successfully integrated the four key components of digital transformation – digital integration in processes, digital integration in marketing and customer relationship management, digital integration into the value chain, and using technology to explore new products and market opportunities.
High switching costs
– The high switching costs that Monsanto Gmo has built up over years in its products and services combo offer has resulted in high retention of customers, lower marketing costs, and greater ability of the firm to focus on its customers.
Organizational Resilience of Monsanto Gmo
– The covid-19 pandemic has put organizational resilience at the centre of everthing that Monsanto Gmo does. Organizational resilience comprises - Financial Resilience, Operational Resilience, Technological Resilience, Organizational Resilience, Business Model Resilience, and Reputation Resilience.
Weaknesses Monsanto and Genetically Modified Organisms | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Monsanto and Genetically Modified Organisms are -
High dependence on star products
– The top 2 products and services of the firm as mentioned in the Monsanto and Genetically Modified Organisms HBR case study still accounts for major business revenue. This dependence on star products in has resulted into insufficient focus on developing new products, even though Monsanto Gmo has relatively successful track record of launching new products.
Low market penetration in new markets
– Outside its home market of Monsanto Gmo, firm in the HBR case study Monsanto and Genetically Modified Organisms needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Aligning sales with marketing
– It come across in the case study Monsanto and Genetically Modified Organisms that the firm needs to have more collaboration between its sales team and marketing team. Sales professionals in the industry have deep experience in developing customer relationships. Marketing department in the case Monsanto and Genetically Modified Organisms can leverage the sales team experience to cultivate customer relationships as Monsanto Gmo is planning to shift buying processes online.
Slow decision making process
– As mentioned earlier in the report, Monsanto Gmo has a very deliberative decision making approach. This approach has resulted in prudent decisions, but it has also resulted in missing opportunities in the industry over the last five years. Monsanto Gmo even though has strong showing on digital transformation primary two stages, it has struggled to capitalize the power of digital transformation in marketing efforts and new venture efforts.
No frontier risks strategy
– After analyzing the HBR case study Monsanto and Genetically Modified Organisms, it seems that company is thinking about the frontier risks that can impact Strategy & Execution strategy. But it has very little resources allocation to manage the risks emerging from events such as natural disasters, climate change, melting of permafrost, tacking the rise of artificial intelligence, opportunities and threats emerging from commercialization of space etc.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Monsanto and Genetically Modified Organisms, in the dynamic environment Monsanto Gmo has struggled to respond to the nimble upstart competition. Monsanto Gmo has reasonably good record with similar level competitors but it has struggled with new entrants taking away niches of its business.
Employees’ incomplete understanding of strategy
– From the instances in the HBR case study Monsanto and Genetically Modified Organisms, it seems that the employees of Monsanto Gmo don’t have comprehensive understanding of the firm’s strategy. This is reflected in number of promotional campaigns over the last few years that had mixed messaging and competing priorities. Some of the strategic activities and services promoted in the promotional campaigns were not consistent with the organization’s strategy.
Need for greater diversity
– Monsanto Gmo has taken concrete steps on diversity, equity, and inclusion. But the efforts so far has resulted in limited success. It needs to expand the recruitment and selection process to hire more people from the minorities and underprivileged background.
Slow to harness new channels of communication
– Even though competitors are using new communication channels such as Instagram, Tiktok, and Snap, Monsanto Gmo is slow explore the new channels of communication. These new channels of communication mentioned in marketing section of case study Monsanto and Genetically Modified Organisms can help to provide better information regarding products and services. It can also build an online community to further reach out to potential customers.
Workers concerns about automation
– As automation is fast increasing in the segment, Monsanto Gmo needs to come up with a strategy to reduce the workers concern regarding automation. Without a clear strategy, it could lead to disruption and uncertainty within the organization.
Increasing silos among functional specialists
– The organizational structure of Monsanto Gmo is dominated by functional specialists. It is not different from other players in the Strategy & Execution segment. Monsanto Gmo needs to de-silo the office environment to harness the true potential of its workforce. Secondly the de-silo will also help Monsanto Gmo to focus more on services rather than just following the product oriented approach.
Opportunities Monsanto and Genetically Modified Organisms | External Strategic Factors
What are Opportunities in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The opportunities highlighted in the Harvard Business Review case study Monsanto and Genetically Modified Organisms are -
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Monsanto Gmo to expand its talent hiring zone. According to McKinsey Global Institute, 20% of the high end workforce in fields such as finance, information technology, can continously work from remote local post Covid-19. This presents a really great opportunity for Monsanto Gmo to hire the very best people irrespective of their geographical location.
Use of Bitcoin and other crypto currencies for transactions
– The popularity of Bitcoin and other crypto currencies as asset class and medium of transaction has opened new opportunities for Monsanto Gmo in the consumer business. Now Monsanto Gmo can target international markets with far fewer capital restrictions requirements than the existing system.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Monsanto Gmo can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Manufacturing automation
– Monsanto Gmo can use the latest technology developments to improve its manufacturing and designing process in Strategy & Execution segment. It can use CAD and 3D printing to build a quick prototype and pilot testing products. It can leverage automation using machine learning and artificial intelligence to do faster production at lowers costs, and it can leverage the growth in satellite and tracking technologies to improve inventory management, transportation, and shipping.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Strategy & Execution industry, but it has also influenced the consumer preferences. Monsanto Gmo can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Monsanto Gmo can build a diversified supply chain model across various countries in - South East Asia, India, and other parts of the world. This reconfiguration of global supply chain can help, as suggested in case study, Monsanto and Genetically Modified Organisms, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Using analytics as competitive advantage
– Monsanto Gmo has spent a significant amount of money and effort to integrate analytics and machine learning into its operations in the sector. This continuous investment in analytics has enabled, as illustrated in the Harvard case study Monsanto and Genetically Modified Organisms - to build a competitive advantage using analytics. The analytics driven competitive advantage can help Monsanto Gmo to build faster Go To Market strategies, better consumer insights, developing relevant product features, and building a highly efficient supply chain.
Loyalty marketing
– Monsanto Gmo has focused on building a highly responsive customer relationship management platform. This platform is built on in-house data and driven by analytics and artificial intelligence. The customer analytics can help the organization to fine tune its loyalty marketing efforts, increase the wallet share of the organization, reduce wastage on mainstream advertising spending, build better pricing strategies using personalization, etc.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Monsanto Gmo in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Strategy & Execution segment, and it will provide faster access to the consumers.
Developing new processes and practices
– Monsanto Gmo can develop new processes and procedures in Strategy & Execution industry using technology such as automation using artificial intelligence, real time transportation and products tracking, 3D modeling for concept development and new products pilot testing etc.
Redefining models of collaboration and team work
– As explained in the weaknesses section, Monsanto Gmo is facing challenges because of the dominance of functional experts in the organization. Monsanto and Genetically Modified Organisms case study suggests that firm can utilize new technology to build more coordinated teams and streamline operations and communications using tools such as CAD, Zoom, etc.
Better consumer reach
– The expansion of the 5G network will help Monsanto Gmo to increase its market reach. Monsanto Gmo will be able to reach out to new customers. Secondly 5G will also provide technology framework to build new tools and products that can help more immersive consumer experience and faster consumer journey.
Creating value in data economy
– The success of analytics program of Monsanto Gmo has opened avenues for new revenue streams for the organization in the industry. This can help Monsanto Gmo to build a more holistic ecosystem as suggested in the Monsanto and Genetically Modified Organisms case study. Monsanto Gmo can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Threats Monsanto and Genetically Modified Organisms External Strategic Factors
What are Threats in the SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The threats mentioned in the HBR case study Monsanto and Genetically Modified Organisms are -
Aging population
– As the populations of most advanced economies are aging, it will lead to high social security costs, higher savings among population, and lower demand for goods and services in the economy. The household savings in US, France, UK, Germany, and Japan are growing faster than predicted because of uncertainty caused by pandemic.
Capital market disruption
– During the Covid-19, Dow Jones has touched record high. The valuations of a number of companies are way beyond their existing business model potential. This can lead to capital market correction which can put a number of suppliers, collaborators, value chain partners in great financial difficulty. It will directly impact the business of Monsanto Gmo.
Technology acceleration in Forth Industrial Revolution
– Monsanto Gmo has witnessed rapid integration of technology during Covid-19 in the Strategy & Execution industry. As one of the leading players in the industry, Monsanto Gmo needs to keep up with the evolution of technology in the Strategy & Execution sector. According to Mckinsey study top managers believe that the adoption of technology in operations, communications is 20-25 times faster than what they planned in the beginning of 2019.
Trade war between China and United States
– The trade war between two of the biggest economies can hugely impact the opportunities for Monsanto Gmo in the Strategy & Execution industry. The Strategy & Execution industry is already at various protected from local competition in China, with the rise of trade war the protection levels may go up. This presents a clear threat of current business model in Chinese market.
Increasing wage structure of Monsanto Gmo
– Post Covid-19 there is a sharp increase in the wages especially in the jobs that require interaction with people. The increasing wages can put downward pressure on the margins of Monsanto Gmo.
Stagnating economy with rate increase
– Monsanto Gmo can face lack of demand in the market place because of Fed actions to reduce inflation. This can lead to sluggish growth in the economy, lower demands, lower investments, higher borrowing costs, and consolidation in the field.
Regulatory challenges
– Monsanto Gmo needs to prepare for regulatory challenges as consumer protection groups and other pressure groups are vigorously advocating for more regulations on big business - to reduce inequality, to create a level playing field, to product data privacy and consumer privacy, to reduce the influence of big money on democratic institutions, etc. This can lead to significant changes in the Strategy & Execution industry regulations.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Monsanto Gmo with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Technology disruption because of hacks, piracy etc
– The colonial pipeline illustrated, how vulnerable modern organization are to international hackers, miscreants, and disruptors. The cyber security interruption, data leaks, etc can seriously jeopardize the future growth of the organization.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Monsanto Gmo can face downward pressure on margins from increasing competition from international players. The international players have stable revenue in their home market and can use those resources to penetrate prominent markets illustrated in HBR case study Monsanto and Genetically Modified Organisms .
Consumer confidence and its impact on Monsanto Gmo demand
– There is a high probability of declining consumer confidence, given – high inflammation rate, rise of gig economy, lower job stability, increasing cost of living, higher interest rates, and aging demography. All the factors contribute to people saving higher rate of their income, resulting in lower consumer demand in the industry and other sectors.
High dependence on third party suppliers
– Monsanto Gmo high dependence on third party suppliers can disrupt its processes and delivery mechanism. For example -the current troubles of car makers because of chip shortage is because the chip companies started producing chips for electronic companies rather than car manufacturers.
Easy access to finance
– Easy access to finance in Strategy & Execution field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Monsanto Gmo can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
Weighted SWOT Analysis of Monsanto and Genetically Modified Organisms Template, Example
Not all factors mentioned under the Strengths, Weakness, Opportunities, and Threats quadrants in the SWOT Analysis are equal. Managers in the HBR case study Monsanto and Genetically Modified Organisms needs to zero down on the relative importance of each factor mentioned in the Strengths, Weakness, Opportunities, and Threats quadrants.
We can provide the relative importance to each factor by assigning relative weights. Weighted SWOT analysis process is a three stage process –
First stage for doing weighted SWOT analysis of the case study Monsanto and Genetically Modified Organisms is to rank the strengths and weaknesses of the organization. This will help you to assess the most important strengths and weaknesses of the firm and which one of the strengths and weaknesses mentioned in the initial lists are marginal and can be left out.
Second stage for conducting weighted SWOT analysis of the Harvard case study Monsanto and Genetically Modified Organisms is to give probabilities to the external strategic factors thus better understanding the opportunities and threats arising out of macro environment changes and developments.
Third stage of constructing weighted SWOT analysis of Monsanto and Genetically Modified Organisms is to provide strategic recommendations includes – joining likelihood of external strategic factors such as opportunities and threats to the internal strategic factors – strengths and weaknesses. You should start with external factors as they will provide the direction of the overall industry. Secondly by joining probabilities with internal strategic factors can help the company not only strategic fit but also the most probably strategic trade-off that Monsanto Gmo needs to make to build a sustainable competitive advantage.