Monsanto and the Monarch Butterfly SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
Technology & Operations
Strategy / MBA Resources
Case Study SWOT Analysis Solution
Case Study Description of Monsanto and the Monarch Butterfly
This technical note, which outlines Monsanto's response to public claims of damage to monarch butterflies from Monsanto's Bt corn, is a good companion piece to cases involving new technology, particularly in the field of biotechnology and genetically modified organisms. Other issues addressed are crisis management, the reported effects of new technology on the environment, and good public relations.
Authors :: Pat Werhane, Michael Gorman, Jenny Mead
Swot Analysis of "Monsanto and the Monarch Butterfly" written by Pat Werhane, Michael Gorman, Jenny Mead includes – strengths weakness that are internal strategic factors of the organization, and opportunities and threats that Monarch Monsanto's facing as an external strategic factors. Some of the topics covered in Monsanto and the Monarch Butterfly case study are - Strategic Management Strategies, Public relations, Sustainability and Technology & Operations.
Some of the macro environment factors that can be used to understand the Monsanto and the Monarch Butterfly casestudy better are - – geopolitical disruptions, increasing transportation and logistics costs, increasing commodity prices, technology disruption, increasing energy prices, customer relationship management is fast transforming because of increasing concerns over data privacy, talent flight as more people leaving formal jobs,
increasing household debt because of falling income levels, increasing government debt because of Covid-19 spendings, etc
Introduction to SWOT Analysis of Monsanto and the Monarch Butterfly
SWOT stands for an organization’s Strengths, Weaknesses, Opportunities and Threats . At Oak Spring University , we believe that protagonist in Monsanto and the Monarch Butterfly case study can use SWOT analysis as a strategic management tool to assess the current internal strengths and weaknesses of the Monarch Monsanto's, and to figure out the opportunities and threats in the macro environment – technological, environmental, political, economic, social, demographic, etc in which Monarch Monsanto's 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 the Monarch Butterfly can be done for the following purposes –
1. Strategic planning using facts provided in Monsanto and the Monarch Butterfly case study
2. Improving business portfolio management of Monarch Monsanto's
3. Assessing feasibility of the new initiative in Technology & Operations field.
4. Making a Technology & Operations topic specific business decision
5. Set goals for the organization
6. Organizational restructuring of Monarch Monsanto's
Strengths Monsanto and the Monarch Butterfly | Internal Strategic Factors
What are Strengths in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The strengths of Monarch Monsanto's in Monsanto and the Monarch Butterfly Harvard Business Review case study are -
High brand equity
– Monarch Monsanto's has strong brand awareness and brand recognition among both - the exiting customers and potential new customers. Strong brand equity has enabled Monarch Monsanto's to keep acquiring new customers and building profitable relationship with both the new and loyal customers.
High switching costs
– The high switching costs that Monarch Monsanto's 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.
Ability to lead change in Technology & Operations field
– Monarch Monsanto's 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 Monarch Monsanto's in – penetrating new markets, reaching out to new customers, and providing different value propositions to different customers in the international markets.
Diverse revenue streams
– Monarch Monsanto's is present in almost all the verticals within the industry. This has provided firm in Monsanto and the Monarch Butterfly 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.
Low bargaining power of suppliers
– Suppliers of Monarch Monsanto's in the sector have low bargaining power. Monsanto and the Monarch Butterfly has further diversified its suppliers portfolio by building a robust supply chain across various countries. This helps Monarch Monsanto's to manage not only supply disruptions but also source products at highly competitive prices.
Sustainable margins compare to other players in Technology & Operations industry
– Monsanto and the Monarch Butterfly firm has clearly differentiated products in the market place. This has enabled Monarch Monsanto's to fetch slight price premium compare to the competitors in the Technology & Operations industry. The sustainable margins have also helped Monarch Monsanto's to invest into research and development (R&D) and innovation.
Learning organization
- Monarch Monsanto's 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 Monarch Monsanto's is open place that encourages instructiveness, ideation, open minded discussions, and creativity. Employees and leaders in Monsanto and the Monarch Butterfly Harvard Business Review case study emphasize – knowledge, initiative, and innovation.
Successful track record of launching new products
– Monarch Monsanto's has launched numerous new products in last few years, keeping in mind evolving customer preferences and competitive pressures. Monarch Monsanto's 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.
Operational resilience
– The operational resilience strategy in the Monsanto and the Monarch Butterfly 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.
Analytics focus
– Monarch Monsanto's 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 Pat Werhane, Michael Gorman, Jenny Mead 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.
Superior customer experience
– The customer experience strategy of Monarch Monsanto's in the segment is based on four key concepts – personalization, simplification of complex needs, prompt response, and continuous engagement.
Digital Transformation in Technology & Operations segment
- digital transformation varies from industry to industry. For Monarch Monsanto's digital transformation journey comprises differing goals based on market maturity, customer technology acceptance, and organizational culture. Monarch Monsanto's 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.
Weaknesses Monsanto and the Monarch Butterfly | Internal Strategic Factors
What are Weaknesses in SWOT Analysis / TOWS Matrix / Weighted SWOT Analysis
The weaknesses of Monsanto and the Monarch Butterfly are -
Low market penetration in new markets
– Outside its home market of Monarch Monsanto's, firm in the HBR case study Monsanto and the Monarch Butterfly needs to spend more promotional, marketing, and advertising efforts to penetrate international markets.
Ability to respond to the competition
– As the decision making is very deliberative, highlighted in the case study Monsanto and the Monarch Butterfly, in the dynamic environment Monarch Monsanto's has struggled to respond to the nimble upstart competition. Monarch Monsanto's 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 the Monarch Butterfly, it seems that the employees of Monarch Monsanto's 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.
Lack of clear differentiation of Monarch Monsanto's products
– To increase the profitability and margins on the products, Monarch Monsanto's needs to provide more differentiated products than what it is currently offering in the marketplace.
Products dominated business model
– Even though Monarch Monsanto's has some of the most successful products in the industry, this business model has made each new product launch extremely critical for continuous financial growth of the organization. firm in the HBR case study - Monsanto and the Monarch Butterfly should strive to include more intangible value offerings along with its core products and services.
High cash cycle compare to competitors
Monarch Monsanto's 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 the Monarch Butterfly 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 Monarch Monsanto's 's lucrative customers.
Slow to strategic competitive environment developments
– As Monsanto and the Monarch Butterfly HBR case study mentions - Monarch Monsanto's 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.
Capital Spending Reduction
– Even during the low interest decade, Monarch Monsanto's 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.
Workers concerns about automation
– As automation is fast increasing in the segment, Monarch Monsanto's 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.
No frontier risks strategy
– After analyzing the HBR case study Monsanto and the Monarch Butterfly, it seems that company is thinking about the frontier risks that can impact Technology & Operations 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.
Opportunities Monsanto and the Monarch Butterfly | 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 the Monarch Butterfly are -
Developing new processes and practices
– Monarch Monsanto's can develop new processes and procedures in Technology & Operations 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.
Identify volunteer opportunities
– Covid-19 has impacted working population in two ways – it has led to people soul searching about their professional choices, resulting in mass resignation. Secondly it has encouraged people to do things that they are passionate about. This has opened opportunities for businesses to build volunteer oriented socially driven projects. Monarch Monsanto's can explore opportunities that can attract volunteers and are consistent with its mission and vision.
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 Monarch Monsanto's in the consumer business. Now Monarch Monsanto's can target international markets with far fewer capital restrictions requirements than the existing system.
Manufacturing automation
– Monarch Monsanto's can use the latest technology developments to improve its manufacturing and designing process in Technology & Operations 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.
Learning at scale
– Online learning technologies has now opened space for Monarch Monsanto's 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.
Remote work and new talent hiring opportunities
– The widespread usage of remote working technologies during Covid-19 has opened opportunities for Monarch Monsanto's 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 Monarch Monsanto's to hire the very best people irrespective of their geographical location.
Better consumer reach
– The expansion of the 5G network will help Monarch Monsanto's to increase its market reach. Monarch Monsanto's 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.
Lowering marketing communication costs
– 5G expansion will open new opportunities for Monarch Monsanto's in the field of marketing communication. It will bring down the cost of doing business, provide technology platform to build new products in the Technology & Operations segment, and it will provide faster access to the consumers.
Reforming the budgeting process
- By establishing new metrics that will be used to evaluate both existing and potential projects Monarch Monsanto's can not only reduce the costs of the project but also help it in integrating the projects with other processes within the organization.
Harnessing reconfiguration of the global supply chains
– As the trade war between US and China heats up in the coming years, Monarch Monsanto's 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 the Monarch Butterfly, to buy more products closer to the markets, and it can leverage its size and influence to get better deal from the local markets.
Creating value in data economy
– The success of analytics program of Monarch Monsanto's has opened avenues for new revenue streams for the organization in the industry. This can help Monarch Monsanto's to build a more holistic ecosystem as suggested in the Monsanto and the Monarch Butterfly case study. Monarch Monsanto's can build new products and services such as - data insight services, data privacy related products, data based consulting services, etc.
Finding new ways to collaborate
– Covid-19 has not only transformed business models of companies in Technology & Operations industry, but it has also influenced the consumer preferences. Monarch Monsanto's can tie-up with other value chain partners to explore new opportunities regarding meeting customer demands and building a rewarding and engaging relationship.
Leveraging digital technologies
– Monarch Monsanto's can leverage digital technologies such as artificial intelligence and machine learning to automate the production process, customer analytics to get better insights into consumer behavior, realtime digital dashboards to get better sales tracking, logistics and transportation, product tracking, etc.
Threats Monsanto and the Monarch Butterfly 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 the Monarch Butterfly are -
Shortening product life cycle
– it is one of the major threat that Monarch Monsanto's is facing in Technology & Operations sector. It can lead to higher research and development costs, higher marketing expenses, lower customer loyalty, etc.
Technology acceleration in Forth Industrial Revolution
– Monarch Monsanto's has witnessed rapid integration of technology during Covid-19 in the Technology & Operations industry. As one of the leading players in the industry, Monarch Monsanto's needs to keep up with the evolution of technology in the Technology & Operations 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 Monarch Monsanto's in the Technology & Operations industry. The Technology & Operations 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.
Barriers of entry lowering
– As technology is more democratized, the barriers to entry in the industry are lowering. It can presents Monarch Monsanto's with greater competitive threats in the near to medium future. Secondly it will also put downward pressure on pricing throughout the sector.
Increasing international competition and downward pressure on margins
– Apart from technology driven competitive advantage dilution, Monarch Monsanto's 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 the Monarch Butterfly .
New competition
– After the dotcom bust of 2001, financial crisis of 2008-09, the business formation in US economy had declined. But in 2020 alone, there are more than 1.5 million new business applications in United States. This can lead to greater competition for Monarch Monsanto's in the Technology & Operations sector and impact the bottomline of the organization.
Easy access to finance
– Easy access to finance in Technology & Operations field will also reduce the barriers to entry in the industry, thus putting downward pressure on the prices because of increasing competition. Monarch Monsanto's can utilize it by borrowing at lower rates and invest it into research and development, capital expenditure to fortify its core competitive advantage.
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.
Consumer confidence and its impact on Monarch Monsanto's 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.
Learning curve for new practices
– As the technology based on artificial intelligence and machine learning platform is getting complex, as highlighted in case study Monsanto and the Monarch Butterfly, Monarch Monsanto's may face longer learning curve for training and development of existing employees. This can open space for more nimble competitors in the field of Technology & Operations .
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 Monarch Monsanto's business can come under increasing regulations regarding data privacy, data security, etc.
Regulatory challenges
– Monarch Monsanto's 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 Technology & Operations industry regulations.
High level of anxiety and lack of motivation
– the Great Resignation in United States is the sign of broader dissatisfaction among the workforce in United States. Monarch Monsanto's needs to understand the core reasons impacting the Technology & Operations industry. This will help it in building a better workplace.
Weighted SWOT Analysis of Monsanto and the Monarch Butterfly 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 the Monarch Butterfly 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 the Monarch Butterfly 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 the Monarch Butterfly 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 the Monarch Butterfly 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 Monarch Monsanto's needs to make to build a sustainable competitive advantage.
