Situation Analysis of Fonterra: SWOT, PESTLE, Competitor Analysis

Running head: SITUATION ANALYSIS
Situation Analysis
Name of the Student
Name of the University
Author Note

1SITUATION ANALYSIS
Table of Contents
Introduction......................................................................................................................................3
History.........................................................................................................................................3
Strategic business unit.................................................................................................................3
Industry classification..................................................................................................................3
Historic performance...................................................................................................................3
Internal environment........................................................................................................................4
Identifying internal components..................................................................................................4
Analyzing the internal environment............................................................................................4
External environment.......................................................................................................................5
Micro environmental forces.........................................................................................................5
PESTLE analysis.........................................................................................................................6
Political....................................................................................................................................6
Economic.................................................................................................................................6
Social.......................................................................................................................................7
Technological..........................................................................................................................7
Legal........................................................................................................................................7
Environmental..........................................................................................................................7
Competitor analysis.........................................................................................................................8
Major competitors........................................................................................................................8

2SITUATION ANALYSIS
SWOT analysis................................................................................................................................9
Strengths......................................................................................................................................9
Weaknesses................................................................................................................................10
Opportunities.............................................................................................................................10
Threats.......................................................................................................................................10
Key customers...............................................................................................................................11
Conclusion.....................................................................................................................................11
Reference List................................................................................................................................12

3SITUATION ANALYSIS
Introduction
History
The company was established by Samuel Mardsen in the year 1814 in New Zealand. The
company saw its first export in the year 1846, which consisted of a cheese consignment that was
shipped to Australia. The company launched its brand known as Anchor in the year 1886. In
1935 it was seen that the government took the control for exporting the products under their
wings, which helped in increasing the export earnings due to the formation of a Dairy Board. The
year 2001 saw the merger of three major dairy farms and was known as the Fonterra Co-
operative Group Ltd (Haggitt, 2015).
Strategic business unit
The major units of business for the company is supplying the ingredients of dairy to some
of the leading companies and other dairy farms along with the consumers so that they can enjoy
the best quality of dairy products that are available in the market. The company is owned by
more than 10,000 shareholders who are farmers and produces nearly 18 billion of milk per
season within the country for the consumers to purchase it (Baker, 2016).
Industry classification
The company operated under the dairy sector and is one of the highest producers of milk
on a global manner. The company is present in many countries such as Australia, Chile and the
European nations as well (McGiven, 2016).