Overview of Monsanto
Monsanto is a multinational agricultural biotechnology company headquartered in Creve Coeur, Missouri. It was founded in 1901 in nearby St. Louis by John Francis Queeney and named after his wife’s maiden name. It is the world’s largest producer of the herbicide glyphosate which is found in “Roundup” and other similar pesticide products. Monsanto is also the second largest producer of genetically engineered seeds and provides nearly half of all these seeds used in the United States. Agracetus, a research and development campus owned by Monsanto, exclusively produces soybean seed for the commercial market. As well as genetically engineered seeds, Monsanto has introduced bovine growth hormone that is injected into cows to increase milk production. Monsanto has had a huge impact on the agriculture industry everywhere in the world. Some people would say it is a very negative impact as Monsanto has been under scrutiny for many of its business practices in recent years. In 2008 Monsanto was named one of the most influential companies in the world by Business Week magazine.
Monsanto has revolutionized farming by introducing genetically modified seeds in 1996 which are now being used to grow crops all over the world including in China and India. (McGregor, 2008) These developing countries are where the fastest growth is occurring in the biotech crop industry. Cotton yields are up 50% in India which helped farmers double their income from the previous year. (McGregor, 2008) In the Philippines the adoption of Monsanto’s insect-protected corn raised the income of agricultural households above the poverty level. (McGregor, 2008) In total there 282 million acres worldwide are now devoted to biotech crops. (McGregor, 2008)
There has been a cloud of controversy surrounding Monsanto in recent years for many of its business practices. The development and marketing of genetic seeds and bovine growth hormone combined with its political lobbying and aggressive litigation practices have made Monsanto a big target for the anti-globalization movement. They also have come under fire from environmentalists and even were under investigation from the U.S. Justice department. The government was investigating whether or not the company’s involvement in the soybean market was breaking anti-trust rules.
Since Monsanto sells their products all over the world, it is no surprise they are a global company. Their operations around the world includes administrative or sales offices, manufacturing plants, seed production facilities, research centers, and learning centers which help educate and support famers of that specific region. By going on the company website you can see they have established some sort of presence in 71 countries and employ approximately 22,000 regular employees around the world.
One of the issues faced by any global company, including Monsanto, is repatriation. This paper will define repatriation and how it effects international business operations. We will also describe Monsanto’s repatriation program and determine if it is successful in solving previously mentioned problems. Finally we will give our opinion on repatriation programs and offer recommendations for Monsanto or any company thinking of implementing such a program.
What is Repatriation? How Does it Effect International Business? Repatriation is the act of reintroducing an employee to their domestic workplace after an extended placement on a foreign assignment. Repatriation has a significant impact on international business because an employee’s direct experience with their firm’s presence in a foreign environment is representative of the firm’s level of international responsibility and accountability. There are a variety of management approaches a global firm may exercise when operating abroad. These are ethnocentric, polycentric or geocentric. Each of these approaches has a direct impact on their...