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Strategic Management
, Sixth Edition
Charles W. L. Hill, University of Washington
Gareth R. Jones, Texas A&M University
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Case Discussion Questions
Discussion Questions for Case 35--Monsanto (A): Building a Life Sciences Company
- How would you describe the competitive economics of Monsanto's business in the 1970s? What does this description suggest about the outlook for the company at that time?
- Trace the evolution of technology strategy at Monsanto. Think through the
advantages, disadvantages and risks associated with the various approaches that were used to build world class skills in life science research
at Monsanto.
- What decision process did Monsanto go through when considering whether to
build a life sciences business?
- One could argue that scientific talent was the most critical resource that
Monsanto needed to access in order to develop its life sciences business.
What did Monsanto have on its side in the competition for scarce talent?
What factors were working against the company? How did it overcome some of these factors?
- What was the logic for the Searle acquisition? How did the acquisition add
value to Monsanto's life science program?
- What was Needleman's strategy for drug development at Searle? Does this strategy make sense
for a company like Monsanto? Why or why not?
- What is the value proposition to farmers of Monsanto's Roundup Ready and Bt seeds? Does Monsanto's pricing strategy make sense given this value proposition? What special
problems does Monsanto face in trying to sell to farmers?
- Outline Monsanto's business model for Roundup Ready seeds and its Roundup products. What is the basic strategy here and how might it lead to economic profits?
- Why has Monsanto been vertically integrating forward into the seed corn industry?
What is the strategic rationale for such a move?
- Evaluate Monsanto's launch strategy for its Cox-2 inhibitor. Does the strategy make sense? Why?
- Comment on the opposition of groups such as EU consumers and Rifkin's organization to Monsanto's genetically engineered products. Are these groups latter day Luddites,
or do they have a point? How should Monsanto deal with the opposition from such groups?
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