Critical Analysis Business & Marketing Essay Research

Bayer Internal Email: Critical Analysis Student’s Name
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Bayes AG’s Reputation after Acquisition of Monsanto
Background
When Bayer AG acquired Monsanto Co., it inherited a series of problems associated with its products (Gillam, 2019). As described by Gillam (2019), cancer victims filed thousands of lawsuits against the company as it is alleged that Roundup herbicides are carcinogenic. The controversial component of Roundup is glyphosate, which Monsanto introduced into the market in 1974 as a weed killer. The chemical was pushed significantly by the company and it is now considered “the most widely used herbicide in history” (Gillam, 2019). The widespread use of the chemical since its introduction in the market means that its residues can now be found in water, food, and even human urine.
With the numerous lawsuits it is facing, Bayer sought to regain public trust through an investment of about 5 billion euros in additional techniques of fighting weed (Gillam, 2019). However, the company does not intend to discontinue the production and sale of the chemical as it considers it important to not only the future of agriculture but its product portfolio. This is despite scientific studies associating glyphosate-based products to several diseases and illnesses as well as other problems such as water contamination, soil degradation, a decline in pollinators, and weed resistance (Gillam, 2019). Since the acquisition, Bayer’s shares have dropped by 44% and the company is also facing lawsuits from over 13000, with $2billiob being awarded so far in damages (Gillam, 2019). It is evident that Bayer is at a critical point in its life and any decision at the moment can have a significant influence on its future.
Problem Statement
The acquisition of Monsanto has brought about numerous problems for Bayer given the thousands of lawsuits it is facing. Mosanto’s main product, Roundup has been linked to serious health concerns, including cancer. With the shares of the company dropping and its reputation declining, the company has to devise a way to turn things around to safeguard its future.
Alternative Solutions
One solution to the problems facing Bayer is to continue with the production and sale of glyphosate-based weed killers while setting aside funds to cater for future claims. As noted in the article by Gillam (2019), the company had already paid $2 billion in claim damages. In its website, Bayer emphasizes the safety of glyphosate, explaining how several regulatory bodies and scientific studies have reviewed it for over 40 years (Bayer, 2020). Despite this clarification, the company is still subject to thousands of lawsuits. Continued production and sale of glyphosate-based weed killers while setting aside funds for damages can help it succeed in the future. According to Siemers (2020), the company recently agreed to pay up to $10.9 billion to settle claims against Monsanto products and it is expected that Bayer will face about 20 trials ever...