Impact of Fonterra Co-operative in New Zealand and Australia due to Globalisation

This article discusses the impact of globalisation on Fonterra Co-operative Group Ltd. in New Zealand and Australia, including the benefits and challenges faced by the company. It also highlights the response of the company to these challenges and opportunities.

GEOG 5528 Project

Overview of the chosen company
Fonterra Co-operative Group Ltd. works as a New Zealand multinational company. The
workforce operates as a publicly-traded dairy co-operative that is also owned by around 10,500
New Zealand farmers. The respective company plays a crucial role in the international trading
platform for which approximately 30% of the world’s dairy exports are being transmitted. The
stated company is New Zealand’s largest company with its revenue exceeding NZ$ 17.2 billion
(Tkachuk and Pankova, 2020).
Impacts of globalisation
Globalisation has a significant impact on businesses operating at the domestic level and
operational businesses at the international level. Under the process of globalisation, business
markets were redefined from local to global which brought taking key consideration to cultural
and behaviour aspects of consumers in the business market. Following were the ways in which
globalisation has affected Fonterra Co-operative Group Ltd. in New Zealand and Australia;
 Highlighted specialisation: By the globalisation policy managers at the corporate firm
i.e., Fonterra Co-operative Group Ltd. was able to show off their capabilities and
effectiveness in global markets. This enabled the respective company to deliver a better
brand image of the company in international markets.
 Access to a new culture: Through the policy provided company was being able to access
the new cultural market. This guided operations of the firm to create demand for their
product or service reflecting new cultural markets behaviour and demands.
 Larger market size: The respective company through the policy of globalisation was
being able to deliver its key operations to a comparative larger market size. In inclusive
of the discussion, it can be said that through globalisation respective firm was able to
perform business actions in foreign markets.
Costs and benefits of globalisation
According to Stuart Gray and Richard Le Heron, (2010), through globalisation New
Zealand’s primary sector showed a potential growth pathway in the future. In its inclusion,
Fonterra Co-operative Group Ltd. showed the greatest boost in terms of its productivity. Under
the terms, the respective firm was being able to develop better understandings of the business

market-wide market size helped firm to boost their sales operations and thus, increasing profits
of the business firm.
Globalisation challenges, opportunities and response
The stated company i.e., Fonterra Co-operative Group Ltd. faced a variety of challenges
and opportunities in terms of globalised economy. Managers at the respective company
proceeded with effective terms of working for which cooperative basis of business working was
being ensured. Under the process business firm faced several difficulties in terms of establishing
long term relations with business customers and increased competition. However, the same acted
as an opportunity in terms of delivering better brand value of company in particular business
markets. The response of company was in positive sense and forwarded productivity of business
firm engaging in effective market researches and performing business operations in the most
effective manner (Altman and et. al., 2020).

References
Altman, M., Jensen, A., Kurimoto, A., Tulus, R., Dongre, Y. and Jang, S. eds., 2020. Waking the
Asian Pacific Co-operative Potential. Academic Press.
Tkachuk, O.Y. and Pankova, A.Y., 2020. Administration of Critical Technologies in AIC at
Regional Level as a Foresight Tool. Бизнес информ, (7), pp.93-99.
Globalising New Zealand: Fonterra Co-operative Group, and shaping the future, 2010. [Online].
Available at:
<https://www.researchgate.net/publication/229714648_Globalising_New_Zealand_Fonterra_Co-
operative_Group_and_shaping_the_future>