Strategic Management of Fonterra

Running Head: MANAGEMENT 0
Strategic Management
FONTERRA

MANAGEMENT 1
Table of Contents
Introduction................................................................................................................................2
Product Lines and Business Units..............................................................................................2
External environment of Fonterra..............................................................................................3
Internal Analysis of Fonterra.....................................................................................................4
Competitiveness of Fonterra..................................................................................................4
Identification of the Capabilities............................................................................................4
Core competencies of Fonterra..............................................................................................5
Competitive advantage of Fonterra........................................................................................5
Recommendations......................................................................................................................6
Conclusion..................................................................................................................................7
References..................................................................................................................................8

MANAGEMENT 2
Introduction
Due to increase in competition and with the emergence of new players in the industry,
strategic management plays an important role for all business irrespective of size and scale
(Helfat and Martin, 2015). In Australia, Agribusiness is one of the major revenue sources that
is highly diverse and consists of various operations involved in agricultural services or
production across the food supply chain. As per industry statistics, this sector brings revenue
of around $289bn with employing nearly 641.7m people (ibisworld.com, 2018). In addition,
there is rise in opportunities growing in agribusiness sector that also presents increasing
importance for effective strategic management considering the organisation behaviour. One
of the leading company in agribusiness sector of Australia is Fonterra that is actually a New
Zealand based firm, however, they have huge market presence in the Australian market.
Fonterra is a dairy firm established in 2001 and presently the company gained the number of
being six largest dairy company in the world. The headquarter of the company is situated in
Auckland, New Zealand. At presents, the company have 21,400 as total number of employees
(Gaynor, 2018). Fonterra also has various subsidiaries such as Anchor, Anmum, Mainland
Cheese and Soprole. The company have partnership with various companies globally that
makes Fonterra be a global massive dairy exporter. Fonterra’s philosophy is based on “lead in
dairy” and with this principle, the company attained a competitive edge in the market.
This report outlines about Fonterra external business environment having significant impact
over their management decisions related to various functions. Furthermore, Fonterra internal
effectiveness in extent with their core competitiveness and competitive advantage will also be
recognised. After analysis all this, any strategic gap can be identified and thus several
suggestions can also be recommended.
Product Lines and Business Units
Presently, there are numbers of business Fonterra possesses in the Australian market where
the Fonterra brand includes consumer good section, Anchor food includes food service
supplies and NZMP ingredients include supplies of dairy ingredients (Sacks et al, 2015). This
diverse range of business units helps the company to server offers various segments of
customers with their variety of offerings. Considering consumer good section, some wide