Exploring Fonterra: History, Financials, Markets, Sustainability, Quality Management, and Continuous Improvement

Running head: BUSINESS ORGANIZATION OF FONTERRA
Business organization of Fonterra
Name of the student:
Name of the university:
Author note:

1BUSINESS ORGANIZATION OF FONTERRA
Table of Contents
1. Introduction........................................................................................................................3
 Brief background of the business industry......................................................................3
 History.............................................................................................................................3
 Financials of Fonterra.....................................................................................................4
 Vision and mission of company......................................................................................5
 Core values posed by Fonterra........................................................................................5
 Brands which Fonterra owns...........................................................................................6
Key markets...........................................................................................................................7
 Australia is the largest milk pool outside of New Zealand and home to some of the
country's favourite dairy brands.........................................................................................7
 China - Dairy demand is expected to double in the next ten years in the world’s
most populous country.......................................................................................................7
2. Sustainability challenge.....................................................................................................7
Challenges faced by Fonterra related to sustainability: -.......................................................7
Two Quality management system which is adopted by Fonterra..........................................9
 ISO 9001......................................................................................................................9
 Sedex member ethical trade audit................................................................................9
Challenges and issues related to quality management systems...........................................10
1. A lot of documentation..........................................................................................10
2. More towards quality less towards customer.........................................................10
Issues: -.................................................................................................................................10

2BUSINESS ORGANIZATION OF FONTERRA
1. Resistance toward new technology........................................................................10
2. Departmental system..............................................................................................10
Sustainability steps taken by Fonterra to overcome problems stated above:.......................11
 By making consumption sustainable.........................................................................11
 By improving operations...........................................................................................11
 Proper attention to customers....................................................................................11
 Enhancing milk yield per cow...................................................................................12
3. Continuous improvement.................................................................................................12
Initiatives taken by Fonterra to continuously improve their dairy operations.....................12
 Fonterra invests in research.......................................................................................12
 Using cleaner source of energy.................................................................................12
 Effective use of water................................................................................................13
 Proper solid waste management................................................................................13
 Improvement in logistics...........................................................................................13
Tools that can be used in Fonterra to improve the functioning............................................14
 Kanban.......................................................................................................................14
 A3..............................................................................................................................14
 PCDA cycle...............................................................................................................15
 5 whys........................................................................................................................15
 Policy development...................................................................................................15
Summary: -...............................................................................................................................16

3BUSINESS ORGANIZATION OF FONTERRA
1. Introduction
 Brief background of the business industry
Fonterra organization is famous for their services like milk as well as other dairy
products. Fonterra is a multinational company that provides its services all around the world.
Its head office is situated in New Zealand because it is a kiwi company. Fonterra have
partnership with other companies and cooperates with the farmers as well. Fonterra deals
with more than 140 countries and it covers 33 % part of the world in dairy products.
 History
New Zealand, as the other cooperatives have the long history of establishments and
growth. In the year of 1920, approximately about 85 percent of diary products manufacturing
were owned, controlled and managed by cooperatives. Then here in New Zealand two