Strategic Management of Fonterra Co-operative Group Limited

STRATEGIC
MANAGEMENT

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Contents
Part one..................................................................................................................................................1
Background of company....................................................................................................................1
Stakeholders and shareholders...........................................................................................................2
Resources and competencies.............................................................................................................3
Part two.................................................................................................................................................5
Competitors in overseas.....................................................................................................................5
Competitors in New Zealand.............................................................................................................5
Advantage of Competitors against Fonterra......................................................................................6
Segmentation.....................................................................................................................................6
REFERENCES......................................................................................................................................7

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Part one
Background of company
Fonterra Co-operative Group Limited is a multi-national dairy firm from New Zealand. It has
a co-operative form of business model and is owned by around 10,500 farmers from the
country. The success of the company is responsible for more than 30% of the dairy export
done in the whole world. It is having revenue of around NZ$17.2 billion (Gray & Le Heron,
2010). It is the largest company in New Zealand. This company was founded back in the year
2001 when two largest dairy co-operative (New Zealand Dairy Group and Kiwi Cooperative
Diaries) merged with each other under New Zealand Dairy Board. This company deals in the
business of dairy products such as butter, ice-cream, Milk, cheese. There are four brands
working under Fonterra’s name. The brands are Global, New Zealand, Australia and Chile. In
this the largest numbers of product brand is in the New Zealand. Apart from this there are
large numbers of business units and subsidiaries working in collaboration with Fonterra.
They have around 10,000 farmers attached with them. They have an experience of more than
170 years of dairying in New Zealand. They are having the financial capital of $9,552 million
as well as physical asset of $6,810 million (Fonterra, 2018). Apart from this they have more
than 22,000 talented employees all across the globe. They also have natural resources in the
form of 4.7 million milking cows and these Cow rely on 1.8 hectare of pastoral land.