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The Monsanto Company
The Monsanto Company being a giant multinational holds a distinctive advantage over its competitors. Being a global leader in producing genetically modified seeds, Monsanto also excels in Biotechnology with its sales accounting to approx $9 billion. Monsanto’s key motive is to introduce the genetically modified seeds that increase the crop yield within the agricultural sectors of the world. This helps the agronomists globally to maximise their produce and income. Another effort from the company was in the 1970’s when it captured a massive legal snare. Monsanto invented a chemical named, ‘Agent Orange’ which was used to clear the Vietnamese forest during the Vietnam combat. Whereas today more than 80% of the total production of genetically modified seeds in the world are produced and sold by the Monsanto Company and it has more than three fourth of share market value on other crops. Since Monsanto enjoys a monopolistic competition in the market and due to its wide range of global networks it certainly has a competitive advantage in the industry.
In spite of all the success and development Monsanto has also been accused by many criticisms from the government, agronomists and legal department. The company was accused of disturbing the food supply chain and damaging the natural biodiversity. Similarly in the beginning of the 21st century it was disclosed that the company’s operations are responsible for environmental degradation to a large extent. For many years the company discharged noxious swills in Alabama and disposed the Polychlorinated-Biphenyls (PCB’s) in the dump yard. Apart from these concerns Monsanto also deals with difficulties in organisational conduct. Companies often come across significant uncertainty and planning and also the employees struggling for better functioning principles. This may also force them to indulge in violating and unethical operations. For Example, the senior manager from the Monsanto Company bribed the Indonesian officials for fake invoice showing the farmer’s and the activists’ violation against Monsanto. This affects the company’s image and may also cause many legal issues for the organisation. This may ultimately also affect the company’s future existence.
As a CEO of The Monsanto Company, I would essentially appoint a number of stakeholders in regards to deal with the problems with the organisational conduct. Almost every firm in the industry faces problems but particularly in the case of Monsanto, Bribery Issues and Patent Issues have ultimately affected the company by creating social, legal and goodwill related difficulties. Monsanto struggled with many bribery issues for which the company was penalised with a large amount of money. It was in early 21st century when a senior official of the company got involved in bribing the Indonesian Ministry of Environment to garble a record that showed the refusal of acceptance of the genetically modified seeds in Indonesia by the local activists and agronomists. Being a Chief Executive officer of the organisation, I would introduce a centralised investigation through the matter and take necessary action. It is an obligation of a multinational firm to abide with the rules and regulations of the country. Henceforth, taking full responsibility I would work with the high authorities like the US department of Justice to solve the matter.
In regards with the Patent Issues Monsanto also faces difficulties in maintaining its patent rights as the farmers using Monsanto seeds generally use their saved seeds from the earlier plants for use in the future time. This ultimately affects the company’s profits as the sales decline. Therefore, Monsanto intend to patent its products though it is difficult to charter seeds. This Concept of patenting seeds is unlike for the agro workers as they had always been saving seeds from their previous produce but in this case since the Monsanto seeds