Monsanto Corporation Case Study
Monsanto Corporation is a St. Louis, Missouri-based agricultural company that produces products that can be used in the agricultural business; but where did this agricultural company come from? Monsanto was established by John Francis Queeny in 1901. When John Queeny established the company in 1901 it was called Monsanto Chemical Works. John Queeny derived the Monsanto name from his wife, Olga Mendez Monsanto. John Queeny worked for a pharmaceutical company called Meyer Brothers Drug Company for thirty years before he established Monsanto Corporation.
John Queeny had Monsanto producing saccharin, an artificial sweetener, by 1905. The company provided the artificial sweetener to a Georgia-based Coco-Cola Company. After this product proved to be successful, Mr. Queeny felt he could leave his job at Meyer Brothers Drug Company and focus fully on his own company. This move would prove fruitful because ten years later he reached $1 million in sales.
As World War I erupted, the U.S. was very dependent on chemical products from foreign suppliers to use in the war. Monsanto then decided to move into the chemical business and provide America with its own American chemical products. With Monsanto focusing on chemical products, the reliance on foreign supply of chemicals was replaced with Monsantos chemicals. As Monsantos research department gained knowledge and innovative technology it invented two new chemicals which would strategically put Monsanto in a powerful position in the chemical business. The two chemicals were Phenol, an antiseptic, and Aspirin (Acetylsalicylic Acid).
The rest of Monsantos history consists of acquisitions, expansions, and company restructuring. This process began in 1918 when Monsanto purchased an acid company in Illinois. At this point, the company is run by Johns son, Edgar Queeny. Edgars plan for the acid company was to expand and grow, along with making more profitable operations for the company.
After losing profits and getting low on cash during the Great Depression, Queeny decided that he needed to raise money for the company through an IPO of stock. The company launched the IPO and it proved successful. The raising of this capital gave Monsanto the power to pave a road of great success in the future. The company now was structured to have 500 shareholders, 1,000 employees, and owned a small company in Britain.
By World War II, the U.S. Chemical Industry had, for the most part, separated itself from Europe. During the war Monsanto developed tactical chemicals such as Phosphorus and inorganic chemicals. Also, during this period, Monsanto made an acquisition that would become one of its most important attainments in its history; the procurement of Thomas and Hochwalt, which was a research and development laboratory. The company, which was located in Dayton, Ohio, was the underlying driver of Monsantos future growth.
During the 1970s