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Describe how the Monsanto company uses organizational power

Marketing Jan 14, 2021

Describe how the Monsanto company uses organizational power.

Expert Solution

Monsanto had a stock market value of US$ 66 billion in 2014. It is world's largest producer of pesticides and genetically modified crops It has large seed corporations worldwide and created forced growth hormones on cattles. Until 1996, 3 million acres of wide range crops of corn, soyabean, cotton, wheat, canola, sorghum and sugarcane were planted worldwide according to Food and Water Watch. In US it controls 80% of genetically modified (GM) corn market and 93% of GM soy market. In attempt to protect its patent rights it has listed over 90 lawsuits at The Centre for Food Safety in 2004 against farmers and on winning all the cases it was awarded $24 million from just 72 judgements whereas 4500 famers who were unable to afford legal representation were forced for an out of court settlement. It continually influences the managing regulatory body policies of the US government, spends hugely on fighting proposed GM labelling laws for food by protecting the interests of the company than defending the public interest. It is suspected that it smuggles seeds from other countries with the use of bribery and entices farmers by promising higher yields for lower costs. As most biotechnological research is funded by Monsanto it retains the right to publicize the results on seeds and pesticides by threatening the media for adverse findings. It controls the market to get better prices and powerfully mobilizes public opinion in its favour.

Monsanto successfully gained control over the world's food system by relying on government support, effective advertising, intimidation and litigations.

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