The one thing that tied them together was the increasing impact that bio-technology had on their business" (Case Study, p. 3). However, an examination of Exhibit 2 shows that the SBUs seem to be divided into separate companies, each with strong vertical operations that, at first glance, could be better handled with a different organization.
We learn from the case that the companies Solaris, Kelco, Protiva and Coregen all have separate business goals but each has the same challenge that Shapiro focuses on -- dealing with the market. The product depth within each of these companies does not suggest strong market positions possible in the future, and, in fact, several of the companies appear to not be utilizing each other's R & D. Based on this, the suggestion is that the Agricultural Division be reorganzed yet again, and this time, the organization takes on a functional restructuring rather than individual companies. This is essential because the distribution problems facing Kelso are not noticeably different from the problems facing Coregen.
Throughout the case, there are constant references to the depth of the agricultural market with constant references to the need for products that create more value with less expense. Monsanto has already developed a toehold in the biotech market that, with the right focus, could become a niche. However, to become a niche player, more concentrated effort must be made. And the only way that that effort can be made is if all of the agricultural efforts focus on that potentiality. The dividing of the company into SBUs was effective since it gave Shapiro a chance to study segmented expenses and results.
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