Monsanto Company

Monsanto Company

Introduction

Monsanto accounts for sales over $8.6 billion and stands as one of the world's leading Seed Company, since the company invested into the business of growing crops from advance technology. The company has a biotechnology orientation and it specializes in genetic treatment of organisms. Moreover, the company modifies 90% of the world's seeds through the genetic process that the company has maintained from ages. Besides such influential hold and dominance on the seed production, the company holds nearly 70% to 100% market share on certain crops, which are only developed by Monsanto.

According to the state of the economy, the company has always dominated in terms of enhancing the wealth of the stake holders, as most of the times analysts suggest a buy decision for Monsanto. However, the company's stock has seen some major drops over the years. For instance the company one back in 2003 saw a huge collapse when the stock price of Monsanto fell down to 50% at $8/share. The company started growing once again after this fall, as the company invested in technology and innovation and upbringing biotechnology and helped itself to owning 60% of its revenue from the most in demand market of genetically modified seeds, as the demand for corn and soya beans increased immensely in the U.S, it gave Monsanto to capitalize on the opportunity, which lead the company to succeed back to its position.

Problem Statement

The case demonstrates many problems that are associated to the restricting the growth of the company, as the case highlights the economic crises and its effects on the Monsanto. The major problem that is highlighted in the case is that the company was troubled with the economic crisis, as the farmers were not able to attain loans due to the collapse of major mortgage houses and insurance ...