International Business Management Discussion 2022

Running Head: INTERNATIONAL BUSINESS MANAGEMENT
International Business Management
Name of Student:
Name of University:
Author’s Note:

1
INTERNATIONAL BUSINESS MANAGEMENT
Problem 1
Business media source: https://www.ft.com/content/d49235c6-6817-11e9-9adc-
98bf1d35a056
Name of firm/organization: Archer Daniels Midland
Discussion:
Extreme weather and climate change is a very real and inevitable issue, which, unfortunately,
business owners are not giving due importance. The United State’s Global Change Research
Program stated in its national climate assessment that climate change will continue to have an
increasing negative effect on infrastructure, economy and business. US based international food
products trader Archer Daniels Midland (ADM) reported a 40% fall in the first quarter earnings
of 2019 owing to severe climate conditions affecting its food storage, production and
transportation (Terazono 2019). Shares of the food giant fell to 41 cents from 70 cents last year
owing to a drop in its bio-products units.
The company estimated in March that heavy snow and floods in the initial months would pull
down first quarter operating profits by 50 million dollars. The weather conditions also hit the
company’s carbohydrates unit, which includes sweeteners and starches. ADM’s ethanol profits
fell from 213 million dollars to 96 million dollars, causing the food giant to plan to break off its
ethanol business into a separate unit. The Chicago business head of the company said that it
would part with its ethanol business and attempt to sell off the division. The firm also intends to
offer early retirement to it US and Canada staff.