791 CONTEMPORARY BUSINESS ISSUES

ASSESMENT 1
Company Name

Monsanto

Company
Industry
Biotechnology

Agrochemical, Agricultural

Founded

St.Louis,Missouri, 1901

Country

United States of America

Founder

John Francis Queeny

Head Quarters

Creve Coeur, Missouri

CEO

Hugh Grant

Areas Served

All over the world

Website

www.monsanto.com

Employees

22,500

Sales

15.001 Billion USD

Introduction
Monsanto is a farming based company which has an
ability to hold or do something to be maintained and deliver
farming based products that support farmers all around the
world. Company focuses on farmers, making them stronger and

more confident to produce more from their land using water

and energy. we do this with our leading seed brands in which
the seeds qualities are carefully planned in such a way by
controlling or misleading its related tiny chemicals inside of
living things material. Monsanto is leading supplier of seeds
and herbicide, it lead the worlds market for producing seeds
that are resistant to weather drought and produce more yield.
Background:
John Francis queeny is a purchaser for a whole sale
drug house, who formed Monsanto chemical in 1901at St.louis
Missouri

to

produce

artificial

sugar(saccharin).

By

1905

company was also producing food additives like caffeine and

vanillin by gaining good returns. In 1908 Queeny felt confident
enough about his companys future, and it continued to grow
with no looking back and crossed sales of 1 Million mark for first
time in 1915. In 1920 expanded into industrial chemicals like
sulphuric acid and PCBs. In 1940 Monsanto was major producer
of polystyrene and synthetic fibres.
Monsanto and its scientists marked a remarkable
achievement in producing (LEDs) light emitting diodes, and
they are also the first group to genetically modify a plant cell,
as introducing genes into plants in 1983 and conducted crop
trials of biotechnology crops in1987. Its was the first company
to apply genetic engineering technique in plant cells developed
by Genentech and other biotech drug industry in 1970 in
California. In this model companies heavily invest in Research

and development and gain their profits back through biological

patents.
Globalization:
Globalization is a process of communication of
different

countries

in

combination

races,cultures,nationalities,etc
together,international

working

with

different

and

living

exchange

goods,services,knowledge,technology,capital

of
becomes

increasingly interconnected.

Culture:
Culture is team oriented, not including a system where
things or people are separated into level of importance and
creative with business. It gives people a chance to make bigger,
earlier and more frequent works thats done would be the case
in many companies. For people who wants learn quickly would
be given the opportunity to try new things on online projects,
Monsanto is a beautiful place to work. The degree to which we
draw

attention

to

and

encourage

personal

and

group

development is unusual in the business world. This is an

important part of our belief that how we work together and
develop as people and as an organization is as important as
what we produce.

Economic Development:

The farming based pioneer has introduced more

than two but not a lot, designed and made products aimed at
reducing the amount of

bug killing chemicals,herbicides,and

time needed during plantation season. In fact corn and cotton

crops that contain tiny chemical groups made up of smaller
parts inside of living things to produce chemicals created from
a naturally happening soil tiny germ Thuringiensis,have saved
farmers $57 billion in bug killing chemical costs from 19962011.
World organisation millennium village project,
which was developed to deal with the challenges of extreme
poorness by encouraging the use of modern farming high yield
seeds,

proper

crop

watering

or

rinsing

with

water,education,health care and other social development

orders.

Prosperity:

Farmers who raise themselves from poorness to

richness, more people will also succeed, through healthier
diets, greater educational opportunities, and brighter futures
fuelled by more strong and healthy local processes of people
making,selling,and buying things. Monsanto works with farmers
from around the world to make farming more productive and
able to help the planet. Our technologies enable farmers to get
more from every area of land about 200 feet*220 feet of
agriculture land. Especially, we are working to increase the
yield in staple crops by 2030. The produced will come from a
combination of recent improvement in plant cross breed,
genetically engineered product and achieve something better
in agriculture.
Political System:
The company believe that participating in a
helpful or productive way in public affairs is extremely
important for long term success and we give to U.S contender
in a manner that is cooperative with all related individual rule
and formal statement of necessary authority in needed things.
Person incharge of an organization has the ability to keep
something around related to large business, Responsibility
committee has oversight in looking at all political things that
are given or work thats done made by our company to make
sure of proper following the law or doing as you are told. In
2014,the canter for political responsibility for behaviour not
loyal to one political party ,company that makes no money
created to bring clearness open honesty and responsibility for
behaviour to related to big business political spending, ranked

Monsanto in the top 25 percent of 300 companies on the CPAZicklin Index in recognition of our effort to show in a good way,
clearness open honesty in political statements to people in the
united states. We continue to champion open honesty in this
important area and proudly work with centres like CPA to
improve our statements to people.
Financial regulations:
Interest Rate:
Monsanto depends mainly on money owed. Low
interest

bestly

suits

the

surrounding

conditions

for

the

company. As year of 2015 company has short term of money of

six hundred and fifteen millions(615) and long term money
owed

of

eight

thousand

four

hundred

twenty

nine

dollars(8429).total company holder equity is 6990 million. The

equity ratio is 56%. Interest expense for 2015 is four hundred
thirty three million dollars (433). According to 2015 statement
1% hike in interest rate will increase interest payment by 4
million usd for short term with changeable rate. The long term
has fixed rate.
Company interest rate risk management
success plans of reaching goals in sensitive measuring, such as
interest swaps and optional contract making something as
small as possible, significant in unexpected earnings ups and
downs that arise from dangerous nature in interest rate of
company borrowing to manage rate interest rate of its money
owed.

Credit facilities:
According to 31 august 2014 company had two
billion credit facility with banks that gave unsecured credit
facility through 1 April 2016. Company requested a hike in
borrowing limit to provide credit agreement and limit was
increased from 2billion to 2.5 billion. This facility was started
for big business purpose, capital needed things purchases
,expenses,

support

for

commercial

paper

owing.

This

agreement also provides for European and Asian loans of credit

borrowing, it select smaller companies owned by larger
company with guarantee, and restrict maximum borrowings.
Foreign Exchange Rate:
Monsanto transact business in different types of
money other than USD mostly related to Europe, which affects
its money income, valuable things and cash. According to
relation in managing money risk in focusing money wild ups
and down in exchange rate. In the year company had 325
millions in loss due to foreign exchange loss due to type of
money brazil real and related to Europe.
Cost Of Bank Failure:
Monsanto funds its operation through cash flow
and money owed. In case of bank failures, company cannot cut
back on different operations to cut cost.

Sustainability:
The ability to do something as how an organization
create value for its community of people by making the most of
the positive and negative effects on social, the health of the
earth and money based issues and people interested who are
interested in a project or business.
Monsanto is actively participating more in helping
planet approach in especially at executive level and helping to
encourage the growth of worlds increasing all the inhabitants,
we recognise the ability to keep something going as a trip but
not as destination. But there is no real task to an end in the
ability to keep something around the trip, there are noticeable
results to mark our development in advanced condition. That is
great significance for Monsanto to take back to front to start
deal within a certain way, where we as a commercial business
and how we can embed into our business.
The company is participating in worldwide
reporting(GRI), the ways of thinking, basic truth and rules on
formal statement. This is severe because it connects us to the
people of wide range, people in business and other companies
working on same problems provide an idea through which to
share promises, aim, improvement towards authority.GRI helps
to constantly figure out the worth,amount,or quality of
ourselves against internal promises, goals and work to achieve
our task.
The company promised in improving useful things,
valuable supply, wasting very little while working or producing

something in hugely important group effects. we have helped

improve crop drought and insects pests. We continue to create
something new to grow food for long period.
Society:
Monsanto is focusing on providing new and
interesting products that can have a positive effect on the
quality life for all farmers, their families living away from cities
in which they live in. it can also have positive effect on people
who use product and community of all people all over the
world. In 925 million people, almost 1 in 7 go to bed hungry
worldwide. Billions of people all around the world mainly
depend on two important staple crops i.e. rice and wheat. Half
of the particular region of inhabitants feed together. All the
people are benefited with increasing yield of rice and wheat
Health:
Monsantos research and development is dedicated
in developing seeds that produce food that has improved
qualities relating to vitamins, proteins, minerals etc in food.
Seminis is vegetable seed brand teamed up with
Apio incorporation to bring better seed quality of broccoli to the
market. This broccoli contain 2-3 times more of Glucorphanin
grown under same surrounding conditions. Glucorphanin
naturally boosts the bodys protecting chemical enzyme level
and this enzymes help in chemical activity of vitamins A,C and
E in our body. These body protecting materials help you protect
your body from physical harm and state of emotional strain.
Environment:

Monsanto is first to explore in conserving earths

useful things and preserve the natural surrounding conditions.
As the worldwide population very quickly rises very high during
next thirty years and there will be demand for food, fresh water
and healthy soil. This creates extremely important challenge for
everyone involved in growing food,produce more while using
valuable supplies (produce more with less waste). The company
will work to increase water: using of very little of water in crop
watering across its own worldwide seed production operations
by 25% by 2020.
Due to weather conditions the overall water
usage will vary, by these guesses efforts all alone result in
saving 30 to 80 billion gallons of water yearly. The company will
continue to bring into existence of something new and move
forward in purposeful way showing quick witted intelligence in
seed and high quality management tools that enable farmers to
use necessary substances in efficient manner and curb
pollution that hats up the earth and make useful for hundred
thousand acres in United States by 2020.
Product Management:
Monsanto is characterised by careful
consideration in product management as company. Whether its
securing related surrounding conditions are not only met, but
also went beyond protecting safety of our people and
communities ,Monsantos management promises are of top
importance.

The following are areas of focus for Monsanto

and ability to assess are set in place to ensure that its top of its
game for management in all areas.
1.
2.
3.
4.
5.

Management undertaking
Product management safety
Insect resistance management
Bio product launch management policy
Seed patent protection

References:
www.referencesforbusiness.com/history2/
www.monsanto.com
www.wikipedia.org
www.ukessays.co.uk/essays/management
www.agbioworld.org/newsletter
www.monsanto.com/investors