Fonterra: Pestel and Porters 5 Forces Analysis Assignment 2023

Running head: FONTERRA: PESTEL AND PORTER'S 5 FORCES ANALYSIS
Fonterra: PESTEL and Porter's 5 forces analysis
Students’ name:
University
Author’s note:

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FONTERRA: PESTEL AND PORTER'S 5 FORCES ANALYSIS
Executive summary
The following paper explains the importance of the external marketing environment analysis of
an organization. The marketing environment of an organization is a significant aspect for the
success and sustainability of a company. The planning and strategizing for future operations can
draw a magnitude of inputs from these analyses. Therefore, to explain how an organization could
incorporate these findings in their planning, the paper discusses the micro and macro-level
influence factors of Fonterra, one of the largest dairy co-operative of New Zealand. Utilizing
PESTEL and Porter’s 5 forces model analysis, the paper analyzes the external factors of the
company and finds out the key impact factors. Further, it points out the major driving agents of
the organizational change in the context of Fonterra and analyzes how these drivers may be
incorporated into the mission of Fonterra. Also, the paper makes a brief observation on how the
environmental analyses can provide inputs for the future planning of the organization.

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FONTERRA: PESTEL AND PORTER'S 5 FORCES ANALYSIS
Table of Contents
Introduction......................................................................................................................................4
Fonterra- An overview.....................................................................................................................5
PESTEL analysis of the Macro-environment of Fonterra...............................................................6
Political factors............................................................................................................................6
Economic factors.........................................................................................................................6
Social Factors...............................................................................................................................6
Technological Factors..................................................................................................................7
Environmental factors..................................................................................................................7
Legal Factors...............................................................................................................................7
Analysis of Porter’s Five Forces......................................................................................................7
Threat of New Entrants............................................................................................................7
Threat of substitutes.................................................................................................................8
Competitive rivalry..................................................................................................................8
Bargaining power of the customers.........................................................................................8
Bargaining power of the suppliers...........................................................................................9
Importance of External Environment analysis................................................................................9
Drivers of Organizational Change...................................................................................................9
Employee Satisfaction...........................................................................................................10
Technological advancements.................................................................................................10

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FONTERRA: PESTEL AND PORTER'S 5 FORCES ANALYSIS
Changing preferences of the customers.................................................................................10
Relation of the drivers of change with the Mission of the Organization...................................11
Conclusion.....................................................................................................................................11