International Opportunities and Strategies for Fonterra Agribusiness

Strategic Management
10/3/2018
Fonterra

Strategic Management 1
Executive Summary
The aim of the report is to understand and implement the strategies of the company that was
selected in the previous assessment. The company that was selected is Fonterra and the
discussion related to the chosen company is done in the report. The report includes the
identification of the opportunities for the company in the international market that has been done.
It is found that the company has the opportunities in Bolivia where it is not operating currently
and it is the neighbouring country of Chile. Further, the discussion related to the international
strategy that is followed by the company is done which include multi-domestic, global and
transnational. Along with this, the report includes the discussion related to the mode of entry in
which the appropriate and inappropriate mode of entry has been discussed which include joint
venture and exporting respectively. Moreover, the future strategic actions to the company for the
chosen market have been suggested.

Strategic Management 2
Contents
Introduction......................................................................................................................................3
Australia Agribusiness sector..........................................................................................................4
International opportunities for Fonterra...........................................................................................5
International strategies.....................................................................................................................6
Multi-domestic strategy...............................................................................................................6
Global strategy.............................................................................................................................7
Transnational strategy..................................................................................................................7
Mode of market entry......................................................................................................................7
Most appropriate mode- Joint venture.........................................................................................8
Most inappropriate mode- Exporting...........................................................................................8
Recommendations..........................................................................................................................10
Conclusion.....................................................................................................................................11
References......................................................................................................................................12

Strategic Management 3
Introduction
Strategic management includes the formulation and implementation of the major goals and
initiatives that top-level management on behalf of the owners of the company. This gaols and
initiatives are taken keeping the resources and assessment of the internal and external
environment in mind. The aim of the report to understand and appreciate the strategy
implementation on the corporation selected in the Assessment 1. In the assessment 1, the
company that has been selected is Fonterra, New Zealand. This is the fact that the company is
situated in New Zealand but it has a huge presence in the Australian market. Along with this, the
company falls under the agribusiness section. The report includes the details related to the
Australian agribusiness sector with the international opportunity available for the Fonterra
Company. The different international strategies that are suitable for the company are discussed.
In addition, the market where the company can expand the business operations is discussed with
the appropriate and inappropriate model of entry. In the end, the recommendation for the future
strategic direction of the selected Food-focused Agribusiness in the international market has been
done.