Strategic Planning and Management Paper
Submitted to: Prof. Marvin I. Noroña Submitted by: Giorgino S. Naval
I. EXECUTIVE SUMMARY They are also facing threat of new competitors from China which could potentially cause harm on the company’s profitability. The objective of this paper is to alleviate the company’s bad public image while maintaining the company’s competitive position as the agricultural biotech industry leader. Monsanto is the leading biotechnology-driven agricultural products company in the world. The company operates two business segments: Seeds and Genomics, and Agricultural Productivity. The company’s extensive biotech patent portfolio and aggressive marketing strategies have given the firm a significant competitive advantage in its industry segments. With $11.7 billion sales and an expanding bottom line, Monsanto’s success has provided a strong long-term return for its shareholders. However, the company currently faces a series of issues, including the expiration of key patents, a sudden increase in industry competition, a highly publicized antitrust case and environmental & health controversies. Monsanto must address these issues as it shifts strategic focus to expanding the Seeds and Genomics segment; and develop a necessary transition for the company to decrease the financial dependence on its former flagship product, Roundup® herbicide of which patent reached an expiry. The development of the strategy in this paper will consist of five main sections: External Analysis (DENTPC analysis, Porters 5 Forces), Internal Analysis (Value Chain Analysis, Financial Analysis, TOWS Matrix), Strategic Plan, Functional Area Strategies, Implementation (7-S, 8-SIT), and Financial Projections. The financial projections’ results will show that the company will be able to garner stable increases in its profits by using the proposed strategic plan and following the strategic implementation proposed in this paper.
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INTRODUCTION