Leadership Impact on Fonterra: Culture, Vision and Entrepreneurial Thinking

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ABSTRACT
This report outlines the various concepts and approaches in relation with leadership
impact, organization behaviour, culture and vision in align with Fonterra organization, a
world largest dairy exporter. In New Zealand, the dairy industry is one of the largest industry
where Fonterra is one of those companies supplying NZ dairy products in the world.
In addition, several discussions will also be made in order to address Fonterra
creativity and innovative thinking in order to make run the organization in a competitive and
dynamic environment. For instance, Fonterra introduces ingenious packaging solution for
high-quality milk fats called as AMF and this solution was of first in its own kind in the dairy
industry.
In last, necessary recommendations is also being suggested in reference to the specific
finding addressed in the whole report. These recommendations are related to organization
expansion in other countries (mainly emerging nations), diversifying of the product portfolios
and various acquisitions, mergers and joint venture.

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Table of Contents
Introduction................................................................................................................................3
Background and Overview of Fonterra......................................................................................3
Impact of leadership on organisational behaviour, culture and vision in Fonterra....................4
Transformational leadership...................................................................................................4
Expert Power..........................................................................................................................5
Team Roles.............................................................................................................................5
Idealised influence.................................................................................................................5
Strong culture vs. weak culture..............................................................................................6
Managing Conflicts................................................................................................................6
Entrepreneurial thinking and creativity......................................................................................7
The role of innovation and knowledge management.................................................................9
Conclusion................................................................................................................................11
Recommendations....................................................................................................................11
References................................................................................................................................12

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Introduction
The conception of leadership and governance involve strategic direction, plans and
policies, motivation, knowledge management, entrepreneurial creativity and innovation that
integrates various building blocks to achieve significant results (Bamford-Wade & Moss,
2010). This all aspects are vital for organizations to survive in a complex and rapidly
changing environment.
In this academic report, an explicit analysis will be made on Fonterra organization in
light with various management and organizational theories, concept and approaches. In
addition, Fonterra leadership, culture, entrepreneurial thinking, creativity, innovation and
knowledge management will also be drawn in align with these concepts.
The first section of this report will clearly define the background of the selected
organization – “Fonterra”. Section two to four will contrast various finding and discussion in
relation to certain aspects of theories and approaches in align with the organization. The final
section will present recommendations in support with the overall discussion.
Background and Overview of Fonterra
Fonterra Group is based in New Zealand and was incorporated in October 2001. The
organization comes in manufacturing and retail industry and accounts for 30% of the world
dairy exports (Gray & Le Heron, 2010). The number of employees working in Fonterra is
around 21,400. Their revenue in the year 2016-17 is approximately NZ$ 19.232 billion
(Scully, 2018). The company is selling their products in more than 140 countries and with
one billion people every day.
Outside New Zealand, Australia is their largest milk pool and home to some of the
country favourite dairy brands. The group is having various opportunities to expand into the
European markets with the help of J.V and also they have substantial intellectual property in
the manufacturing of whey protein isolates – growth to capitalize on such innovations. In
addition, there are some challenges also like the dairy giant biggest challenge is to change the
law which forces it to accept milk from any farmers and sell it to competitors at a subsidised
price.