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, supply chains are disrupted by pandemic , increasing government debt because of Covid-19 spendings, challanges to central banks by blockchain based private currencies, there is increasing trade war between United States & China, increasing commodity prices, cloud computing is disrupting traditional business models,
increasing household debt because of falling income levels, technology disruption, 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 -
Innovation driven organization
– Monsanto Gmo is one of the most innovative firm in sector. Manager in Monsanto and Genetically Modified Organisms Harvard Business Review case study can use Clayton Christensen Disruptive Innovation strategies to further increase the scale of innovtions in the organization.
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.
Successful track record of launching new products
– Monsanto Gmo has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Monsanto Gmo has effective processes in place that helps in exploring new product needs, doing quick pilot testing, and then launching the products quickly using its extensive distribution network.
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.
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.
Sustainable margins compare to other players in Strategy & Execution industry
– Monsanto and Genetically Modified Organisms firm has clearly differentiated products in the market place. This has enabled Monsanto Gmo to fetch slight price premium compare to the competitors in the Strategy & Execution industry. The sustainable margins have also helped Monsanto Gmo to invest into research and development (R&D) and innovation.
Diverse revenue streams
– Monsanto Gmo is present in almost all the verticals within the industry. This has provided firm in Monsanto and Genetically Modified Organisms case study a diverse revenue stream that has helped it to survive disruptions such as global pandemic in Covid-19, financial disruption of 2008, and supply chain disruption of 2021.
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.
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.
Cross disciplinary teams
– Horizontal connected teams at the Monsanto Gmo are driving operational speed, building greater agility, and keeping the organization nimble to compete with new competitors. It helps are organization to ideate new ideas, and execute them swiftly in the marketplace.
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.
Ability to lead change in Strategy & Execution field
– Monsanto Gmo is one of the leading players in its industry. Over the years it has not only transformed the business landscape in its segment but also across the whole industry. The ability to lead change has enabled Monsanto Gmo in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
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 -
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.
Compensation and incentives
– The revenue per employee as mentioned in the HBR case study Monsanto and Genetically Modified Organisms, is just above the industry average. Monsanto Gmo needs to redesign the compensation structure and incentives to increase the revenue per employees. Some of the steps that it can take are – hiring more specialists on project basis, etc.
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.
Slow to strategic competitive environment developments
– As Monsanto and Genetically Modified Organisms HBR case study mentions - Monsanto Gmo takes time to assess the upcoming competitions. This has led to missing out on atleast 2-3 big opportunities in the industry in last five years.
High cash cycle compare to competitors
Monsanto Gmo has a high cash cycle compare to other players in the industry. It needs to shorten the cash cycle by 12% to be more competitive in the marketplace, reduce inventory costs, and be more profitable.
High operating costs
– Compare to the competitors, firm in the HBR case study Monsanto and Genetically Modified Organisms has high operating costs in the. This can be harder to sustain given the new emerging competition from nimble players who are using technology to attract Monsanto Gmo 's lucrative customers.
Skills based hiring
– The stress on hiring functional specialists at Monsanto Gmo has created an environment where the organization is dominated by functional specialists rather than management generalist. This has resulted into product oriented approach rather than marketing oriented approach or consumers oriented approach.
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.
High bargaining power of channel partners
– Because of the regulatory requirements, Olivier Cadot, Sara McDonald, Gabel H. Landis, Daniel Traca suggests that, Monsanto Gmo is facing high bargaining power of the channel partners. So far it has not able to streamline the operations to reduce the bargaining power of the value chain partners in the industry.
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.
Capital Spending Reduction
– Even during the low interest decade, Monsanto Gmo has not been able to do capital spending to the tune of the competition. This has resulted into fewer innovations and company facing stiff competition from both existing competitors and new entrants who are disrupting the industry using digital technology.
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 -
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.
Increase in government spending
– As the United States and other governments are increasing social spending and infrastructure spending to build economies post Covid-19, Monsanto Gmo can use these opportunities to build new business models that can help the communities that Monsanto Gmo operates in. Secondly it can use opportunities from government spending in Strategy & Execution sector.
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.
Changes in consumer behavior post Covid-19
– Consumer behavior has changed in the Strategy & Execution industry because of Covid-19 restrictions. Some of this behavior will stay once things get back to normal. Monsanto Gmo can take advantage of these changes in consumer behavior to build a far more efficient business model. For example consumer regular ordering of products can reduce both last mile delivery costs and market penetration costs. Monsanto Gmo can further use this consumer data to build better customer loyalty, provide better products and service collection, and improve the value proposition in inflationary times.
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.
Building a culture of innovation
– managers at Monsanto Gmo can make experimentation a productive activity and build a culture of innovation using approaches such as – mining transaction data, A/B testing of websites and selling platforms, engaging potential customers over various needs, and building on small ideas in the Strategy & Execution segment.
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.
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.
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.
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.
Learning at scale
– Online learning technologies has now opened space for Monsanto Gmo to conduct training and development for its employees across the world. This will result in not only reducing the cost of training but also help employees in different part of the world to integrate with the headquarter work culture, ethos, and standards.
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.
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 -
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.
Instability in the European markets
– European Union markets are facing three big challenges post Covid – expanded balance sheets, Brexit related business disruption, and aggressive Russia looking to distract the existing security mechanism. Monsanto Gmo will face different problems in different parts of Europe. For example it will face inflationary pressures in UK, France, and Germany, balance sheet expansion and demand challenges in Southern European countries, and geopolitical instability in the Eastern Europe.
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.
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.
Shortening product life cycle
– it is one of the major threat that Monsanto Gmo is facing in Strategy & Execution sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
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.
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.
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.
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.
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.
Backlash against dominant players
– US Congress and other legislative arms of the government are getting tough on big business especially technology companies. The digital arm of Monsanto Gmo business can come under increasing regulations regarding data privacy, data security, etc.
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.
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.
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.