Fonterra: Key Functions, Decision Making and Problem Solving Techniques

FUNDAMENTALS
OF
BUSINESS

1
EXECUTIVE SUMMARY
In all across the globe, business environment has changed drastically and it has affected the
operations of all the countries irrespective of the industry they are operational in. This report
analyse about various functional units working under Fonterra which is one of the biggest
diary company in the whole world. Company is also facing several types of challenges in
their business and hence they need to have an effective decision making process and problem
solving techniques for confronting these problems. Different types of problems need different
types of decision making approach for solving it. This report also presents the impact of
internal environmental factors on the business as well as the impact of external environmental
factors on their operations. In the last part of the report the recommendation about the whole
scenario and the things that company must do for making its success in the long term has
been provided. Economic and political conditions all across the globe has changed hence
sustainable approach to business needs to be adopted. It is essential that supply chain is
strengthened for reducing the cost of delivery and maintain a balance between demand and
supply.

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Content
s
INTRODUCTION.................................................................................................................................2
Discussion.............................................................................................................................................3
Key functions of Fonterra..................................................................................................................3
Applications of decision making and problem solving technique......................................................4
Impact on internal environment factors.............................................................................................7
Impact of external factors.................................................................................................................8
Bi-cultural nature partnership on Fonterra Activities and relationship...............................................10
Recommendations...............................................................................................................................10
CONCLUSION...................................................................................................................................11
REFERENCES....................................................................................................................................11

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INTRODUCTION
In the modern day business environment, it has become essential for the organisations to
understand all the aspects related to their business. Every company has different set of
functions in it and it is essential that organisation manages these functions so as to improve
the business quality. Issues in the business have also raise at very fast levels. Decision
making is very essential in the modern day business so as to resolve the issues. Apart from
this there are various problem solving techniques that can be used by the organisations so as
to resolve the issues that are present in the organisation. It is also crucial that company
understands its internal and external impact. It is also crucial for analysing the impact of these
environmental factors on their business.
Fonterra Co-operative Group Limited is a dairy company that is operational in many parts of
the world. It is owned by around 13,000 New Zealand dairy farmers. This report analyses the
key functions of Fonterra as well as provides application of decision making and problem
solving techniques. It also highlights internal and external environment factors on Fonterra.
At last it also gives application of Bi-cultural nature partnership on Fonterra Activities and
Relationship.
Discussion
Key functions of Fonterra
Fonterra being the largest dairy farm products company has numbers of functions in it. This
is because they want to have smoothness in their various operations. Some of the major key
functions of Fonterra include accounting, risk management, marketing, operations, sales and
human resource (Hawking, 2010). It is essential that all these functions work in collaboration
with each other so that efficiency and effectiveness can be achieved in the business process.
Detailed analysis of these function are as follows:
 Operations: It is the most basic functional unit within the organisation which has the
role of collecting milk from 13,000 farmers in New Zealand (Fonterra, 2018). It also