Synergies and the Future
1998 had been a difficult year for Cargill Seeds Mexico. Market share, revenues and net earnings had decreased, and Cargill had been acquired by Monsanto (Asgrow) seeds. F. Magaña knew that the position of Cargill Seeds was the weaker compared with Asgrow and Dekalb. Although he was proud to grow Cargill Seeds Mexico from nothing to be a top seed business in Mexico, he was afraid that his job and that of his team were not fully appreciated. He wanted to communicate that in a professional way, highlighting not only the successes of Cargill Seeds under his administration but also his failures. He was also worried due to the fact that his executives’ careers were in danger when presenting his results. The MSC was really interested in Mr. Magaña´s views, despite the fact that they had already gathered and analyzed some data. Mr. Magaña knew that even his future within the Monsanto organization could depend on his ability to demonstrate his knowledge of the industry.
The MSC already had many ideas on how to integrate the three leading seed companies into one and capture some synergies. However, the committee knew Mr. Magaña´s opinion would be very valuable. As Mr. Magaña started to prepare his presentation he realized the seeds industry in Mexico would be very different in the new millennium.