Strategic Management - Overview, Components

Running Head: SPAIN 0
FONTERRA
Strategic
management

SPAIN 1
Contents
Introduction............................................................................................................... 3
Discussion of Fonterra.................................................................................................. 3
Different international opportunities and Strategies that can be adopted by Fonterra......................4
Appropriate and inappropriate mode of entry into international market......................................5
Future strategic directions for Fonterra in Spain..................................................................6
Conclusion................................................................................................................ 7
References................................................................................................................ 8

SPAIN 2
Introduction
It is true that dairy/agri business sector is diversified. Moreover, it is also estimated to grow
over the next five years due to the increasing diversified and globalised nature of the food
supply chain. Over the last few years, dairy/agri industry of Spain has significantly increased
the efficiency and growth. Due to the shifting mind set of people toward healthy diet,
consumption of vegetables, nuts, and fruits went double. At the same time, high input cost is
also creating different challenges for the Australian dairy/agri industry. In addition to this, the
increasing investment of leading dairy industry in Australia is also increasing growth of the
sector. The increasing health concern of people toward dairy/agri products has led to the
increasing demand of milk and cheese consumption. Therefore, dairy/agri products remain
the continuous trend in the Spain. Due to this, Spain is chosen as the international expansion
for Fonterra. As a leading brand, Fonterra can make its favourable entry in the Spanish. In the
paper, discussion started with the mode of entry that will prove to be favourable for Fonterra
while entering into the Spanish market.
Discussion of Fonterra
Fonterra has started its operation from 2006 in Australia. Fonterra has stated that due to the
world’s biggest dairy/agri exporter, we are able to share our product with around billion of
people every day. By having 30 manufacturing sites across the country, it tends to process
around 16 billion litres of milk each year. Australia is the biggest milk pool besides New
Zealand. Australian dairy/agri brands offer the high quality nutrition as well as great tasting
to people at every stage of life. Fonterra has also highly adopted the standards of corporate
direction and governance. Due to this, it has provided the responsibility to board for
providing direction, guidance as well as oversight about Fonterra. Board tends to report to the
shareholder related to the performance of organisation. At the same time, they also
responsible for reviewing and appointing the performance of CEO as well as engage in the
development of strategic plan.
It is found that the Spain food market has been continuously growing and expected to grow in
the next year also due to the rising healthy concern of people. In the recent time, most of the
consumers taking healthier diet in order to stay fit. The different health benefits of dairy/agri
products have encouraged the people to increase consumption of dairy/agri products. In
addition to this, the packaged condensed milk market in Spain has also gained the higher