Introduction of Firm
Monsanto Inc. is currently a profitable company that produces and markets a wide range of products for the agricultural sector. From the 1990s, this corporation decided to transition to biotechnology in order to maximize profitability. Its leading products include herbicides and genetically modified (GM) seeds. In 2009, it recorded revenues amounting to over 11.7 billion US dollars (Pitt & Koufopoulos, 2012). This paper gives a detailed analysis of Monsanto’s competitive advantage, current problems, and possible solutions.
Overview of Firm Competitive Advantage
Monsanto has a powerful model that makes its competitive in its industry. It focuses on products and GM seeds that can feed more people. This corporation markets them in different regions, including Africa, Asia, North America, Latin America, and Europe (Pitt & Koufopoulos, 2012). It also takes the issue of research and development (R&D) seriously. Finally, it has adequate resources and assets that promote it performance.
Problems Statement
The future of Monsanto depends on its ability to solve emerging issues and focus on the needs of its global customers. The main problem affecting this organization is the increasing level of controversy from different stakeholders for producing unsustainable products and resistant crops in an attempt to maximize its sales. Monsanto might, therefore, lose its competitiveness in the future (Pitt & Koufopoulos, 2012). Additional problems include the increasing number of lawsuits and the uncertainty associated with its products.
Alternative Solutions
This organization needs to consider various solutions to address the outlined problems. The first one revolves around R&D to ensure that all existing and new products are improved to fulfill all stakeholders’ needs (Dizon et al., 2015). This option will result in environmentally-friendly products.
- Pros: This solution will deliver superior products, minimize lawsuits, and empower more stakeholders.
- Cons: This option is expensive to implement and it will current operations.
The second solution is to continue its current model and deliver its products to the existing customers. This option requires that Monsanto convinces more people about the quality of its products (Zhang, Wohlhueter, & Zhang, 2016). It will also manage the accusations different stakeholders present efficiently.
- Pros: Such a strategy will increase brand acceptability and attract more customers.
- Cons: This option might fail to transform the existing challenges and eventually make it less profitable.
Decision and Support
The above analysis reveals that the first option is more practical and capable of addressing Monsanto’s challenges. This is true since new researches will be pursued to ensure that every product meets farmers’ demands. This option is feasible since the company has adequate resources and competent R&D personnel (Dizon et al., 2015). It will minimize lawsuits and eventually maximize its profits. The company’s top leadership, R&D team, and government agencies will support the process.
Action Plan
The selected option will succeed if Monsanto begins by implementing a powerful change model. The company’s chairman and CEO will remain in charge. This leader will sensitize all workers about the new option, present adequate resources, and inform them about the anticipated outcomes. The next phase will be to introduce such R&D processes, deliver superior products, and use existing marketing channels to deliver them to the targeted customers (Zhang et al., 2016).
This approach will be completed within two years. Monsanto will incur reduced costs or expenses due to the strength of its R&D strategy. The possible negative consequences include the disorientation of the current model and opposition from stakeholders. The best contingency plan is to support the current products and focus on evidence-based strategies to address emerging controversies. This effort is less expensive and can be implemented after the first option fails.
References
Dizon, F., Costa, S., Rock, C., Harris, A., Husk, C., & Mei, J. (2015). Genetically modified (GM) foods and ethical eating. Journal of Food Science, 81(2), R287-R291. Web.
Pitt, M. R., & Koufopoulos, D. (2012). Essential of strategic management. Thousand Oaks, CA: Sage.
Zhang, C., Wohlhueter, R., & Zhang, H. (2016). Genetically modified foods: A critical review of their promise and problems. Food Science and Human Wellness, 5(3), 116-123. Web.