Business Practices and Tactics

Business Practices and Tactics

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Business Practices and Tactics

Introduction

The primary aim of every business today is to ensure attainment of maximum profits for the stakeholders and owners while keeping up with expectations on corporate social responsibility. In order for a business to get and stay profitable, Osterwalder and Pigneur (2011) found that several practices are required including heavy investments on the people and resources in order to improve productivity, marketing strategies, excellent customer service, and attracting and retaining top talent. In all activities and approaches, a business is required to have growth, efficiency, profitability, survival and stability. However, recent business strategies and tactics have revealed a slight variation from traditional business concepts. Today, the issue of sustainability and eco-friendliness have become a global concern, turning businesses into advocates of greener strategies, as a way to conserve the environment while keeping the traditional aims of every business. In the agricultural sector, companies such as Monsato and their main product, Roundup, have continued to dominate the herbicide market using tactics and practices that are unconventional. In this report, an article by Four Corners presented by ABC News In-depth (2018) will be reviewed from a dynamics of systems and positioning your studies approach. The business activities and practices employed by the organization reveal that the global business sector is constantly testing boundaries and ideas in an attempt to identify new ways of retaining growth, efficiency, profitability, survival and stability.

Analysis of the News Video

In a detailed informative piece on modern agricultural practices, ABC News In-depth (2018) provided an expose titled “the secret tactics Monsanto used to protect Roundup, its star product.” In this article, several emerging issues were presented including; the benefits of using herbicides for both crop and livestock farmers, the costs of not using such products in farming, the impact of the product on the environment, and the effect it has on users especially in relation to safety concerns and the idea that the product causes various forms of cancer. In the depth of the video, the main issue is not founded on the above-mentioned issues but rather on the way Monsato focuses its strength and power to protect its key product. The article reveals how the company, in a syle similar to other multinational institutions, denies, frustrates, and attempts to conceal all allegations relating to its star product being unsafe for human and environmental use. Despite overwhelming evidence from severe health issues amongst users to scientific proof of its dangers, the company remains adamant that the product is safe and tested scientifically to ensure that it has zero negative consequences to people and the environment.

For farmers in Australia, Roundup has offered so many benefits over the years, including reducing the cost of farming and the losses associated with alternative measures to weed control. However, these benefits have been clouded by a recent revelation of negative health consequences for users. The news article is very objective as it begins by presenting praises of the product from the farmers. It then introduces several controversial issues including the fact that the product, Roundup, could be responsible for several cases of cancer. In America, a grounds maintenance worker exposed to high levels of Roundup per day is shown to have developed a rare form of skin cancer, leading to a lawsuit where he is awarded millions in damages. All through, Monsato maintains that the allegations are false and even proceeds to fight the court decision. What follows is a series of practices with an intention of burying the main issue and presenting the cases where farmers have had health issues as isolated incidents. In a dynamics of systems and positioning your studies perspective, the next section will provide a thorough analysis of the matter.

Dynamics of Systems Theory

The systems thinking theory recognizes the need to test ideas on social systems similar to how the same is done in engineering and other scientific concepts. Systems thinking begins by defining a system as a collection of different parts that together form a group (Baporikar, 2020). As these parts interact, the sum of its individual parts act in a system or structure. System thinking examples in the business world include the stakeholders, the business structures and frameworks, the processes, and the culture. Combined, Oliveira et al. (2020) note that the practices that are used in a system thinking create either healthy or unhealthy cultures. Therefore, in a process of looking at how things are influenced or influence each other in a whole, the systems thinking approach can be used to explain the business practices that Monsato applied in protecting its product and how farmers in Australia and America also interpreted the same.

Monsato’s attempts to conceal the issue of Roundup as a harmful product and its business practices including indirect influence on political parties through funding reveal a number of processes in efforts that influence outcomes. Monsato reveals a set of practices and habits in the corporate world within a structure that is based on the belief of control and profit maximization regardless of the consequences to users. The systems thinking approach is described by Jaaron and Backhouse (2018) as a system that observes the whole, focuses on relationships, looks at structures, explores interdependence, dynamics, and reveals complexities. By applying this point of view, Monsato’s strategy can be analyzed as one that involves expanding the company view to consider larger numbers in many interactions in order to attain growth, efficiency, profitability, survival, and stability.

Monsato’s strategy as presented in the news article is a display of a systems thinking. The main features of a systems thinking are noted by Mambrey et al. (2020) to include a consideration of both the short and long term implications of strategy, an understanding of the big picture, observes the changes in a system over time including trends and patterns, recognizes behavior as a result of a system structure, and identifies the circular nature and implication of relationships. There is a strong relationship between Monsato, its product, and the customers (users of Roundup). In the relationship, there are clear trends and patterns relating to use, expectations, and a realization of the effects. The video highlights the different stages of the relationship beginning with the acknowledgement of the benefits of using Roundup, followed by a phase of uninterrupted consequences, and later a realization of the costs of using the product. From Monsato’s perspective, assumptions are constantly tested, including a consideration of every possible outcome before acting, identification of leverage points, and a focus on structure. Monsato understands the interdependencies as well as the causes and effects of the relationship it has with various stakeholders including other companies in the industry, the government, political parties, and users. The decision to fight the court verdict and the constant denial of the health effects of the product also point to how Monstao understands the need to retain structure in order to maintain its perspective and leverage points.

Positioning your Studies

In business, like every other sector, perspectives have a huge role to play in determining outcomes. Competing paradigms and points of view have been present since time immemorial. What is considered a mainstream model may not exist in a different part of the world. The same is true for perceived benefits of a product versus its costs and effects. The concept of mental models is defined by Magzan (2012) as a key determinant in what people see. What is present in a business setup may not be aligned to what people/stakeholders see. Based on the Senge model, what is seen is not usually factual but an individual interpretation based on expectations and demands (Nejad et al., 2012). For example, the perspectives of Monsato and the various farmers in America and Australia regarding the benefits of Roundup do not match. For the farmers, there are hidden costs associated with continued use of the product. For the company, their product is of high quality, tested, and beneficial to all users. Ultimately, mental models create sense making and perception in a manner that influences how one approaches an issue as evidenced in the ABC News In-depth (2018) article.

In a mental model approach, Kara and Ertürk (2015) acknowledge the need to create a sense-making structure in an attempt to give meaning to experience. The process involves questioning the situation regarding the occurrences, the differences, and the reasons why these issues are present. There is also a need to explore means to respond to situations in a sense-making and perception creating approach. Ultimately, the entire process is noted by Grüter et al. (2018) to influence how people perceive things differently. Monsato’s perception of its star product, Roundup, and the consequences of continued use differs significantly from the point of view of farmers who use the product on a daily basis. It is worth noting that none of the executives who defend the product as safe have ever used it. They rely on scientific tests and other avenues that inform their decision on the product. Gaffkin (2008) looks at theory as an ideation that helps to resolve and understand complex issues including business practices and unethical practices. In the news article, every different perspective makes a claim that is aimed at creating influence and presenting their claims as reliable knowledge.

Understanding of the Topic Based on the Theories

The two theories explored above relate to how entities interpret information and events. The topic of harmful business practices and strategies as explored in the Monsato case study indicates why perceptions, sense-making, and competing mental models are important in showing a need to include methods to support claims. In the systems thinking approach, the article reveals that each of the issues mentioned are interrelated, interdependent, and leads to different outcomes for each stakeholder group. In the mental models, perception, and sense-making approach, the theories highlight that one’s point of view on an issue may not be reflective of facts. In a deeper review of the news article, Monsato’s strategies are somewhat controversial. Nonetheless, the evidenced piled upon the company by the various interest groups does not provide conclusive evidence no whether Roundup is harmful. Despite the moving and emotional narrations from various users of the product, the points of view for the opposing entities do not converge even after court rulings and scientific evidence. Therefore, the topic can be said to be controversial and dependent on one’s understanding of the systems and their mental models.

Conclusion

The discussion intended to analyse an article by Four Corners presented by ABC News In-depth (2018) from a dynamics of systems and positioning your studies approach. The systems thinking approach and the mental models theories have been employed to get a glimpse of the issues addressed in he video. Having reviewed how systems operate and the role of mental models, perceptions, and expectations, the report finds that business activities and practices employed by Monsato reveal that the global business sector is constantly testing boundaries and ideas in an attempt to identify new ways of retaining growth, efficiency, profitability, survival and stability.

Reference List

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