Strategic Management and Business Policy Analysis: Fonterra Case Study

This assignment analyzes Fonterra's business policy and strategic management, addressing key aspects of the company's operations. The analysis begins by defining Fonterra's shareholders and stakeholders, followed by an examination of the environmental issues associated with the company, such as pollution and waste management. The assignment then explores the four elements of Fonterra's corporate mission statement: clear focus, inspiration, ability, and capability. Furthermore, it delves into the profitability versus responsibility paradox within Fonterra's endeavors in China, considering the challenges of balancing financial goals with ethical and social responsibilities. Finally, the assignment discusses the Sustainable Development Goals (SDGs) related to quality education and gender equality, highlighting relevant goals and indicators. The document provides a comprehensive overview of Fonterra's strategic management, incorporating various business and environmental considerations.

Business Policy and
Strategic Management

Questions
Q1 Define Fonterra’s shareholders and stakeholders. What are some of the environmental issues
associated with the company?
The main stakeholder Of Fonterra’s are the internal employees, Manager, suppliers which are
responsible to manage the different operation of company to make huge profitability.
Environmental concerns that deplete the natural capital and place a tremendous burden on the
living standards. Several of these challenges would actively and implicitly affect corporations if
left untreated. They are still doing that in several ways. Pollution, waste management, water
safety, including water supply concerns, and global warming are among the major environmental
issues facing industries today by Fonterra’s. The market effect of emissions reaches far and
broad, with only one instance referring to how emissions affects human lives, which further
impacts treatment costs and production losses. For particular, highly contaminated regions have a
hard time attracting and maintaining employees. Another challenge is waste management, with
insufficient management contributing to unpleasant smells, syphoning into water sources, as well
as air pollution. The environmental challenges company face currently make it obvious that
certain industries are well served by addressing some of these challenging problems as we can. It
would also need all industries to collaborate. Each person, culture, organisation, and nation is
affected by environmental issues. To fuel the economy, thriving, and flourishing, we everyone
must becoming environmentally responsible. The environmental factors that impact industry and
continue to control manufacturing as well as the economy. Significant detriments are generated
by such problems as major hurricanes, lack of resources, deflation, and food and medical
supplies shortages. The resolution of these dynamic problems, however, needs close cooperation
of existing enterprises.
It is clear that the environmental challenge Fonterra’s face calls for all corporate leaders
should take into account the ecological consequences their businesses have as well as calls for
corporate leaders to make absolutely sure that certain regulatory standards and legislation are
met. Another sector that provides an incentive for market and environmental problems is the
cultural expectations of customers. Progressively, customers are preferring to affiliate them with
organisations that have a clear optimistic environmental goal. The corporation would benefit
from corporate executives taking steps to reduce risks surrounding environmental problems and

encouraging sustainable practises. Advertising campaigns will be used as a forum to educate the
public about the attempts taken by corporations to solve environmental challenges. They are
often used to alert the public about future-planned efforts. Business owners had to create a
corporation that would raise sales and grow earnings on a continuing basis. If environmental
problems are becoming more prominent around the world, their effect on industry and the planet,
and the threats to the wellbeing of all lives. The consequences have been felt so now there is
need for decisive action. Company managers are responsible for taking a full listing of their
decisions and evaluating how the world is influenced by those decisions.
Q2. Corporate mission based on the 4 elements?
The main four elements of corporate mission statement of Fonterra’s are discussed underneath:
 Clear and focused: Although the organisation can be a jill-of-all-trades, the mission
statement of the corporation must have a system links that is easily discernable. Users
will probably wind up upsetting their prospects, who really are probable to have really
clear goals in mind, unless clients attempt to disguise many such bases. Corporation
deals in a variety of goods and services, the "scarf" which encompasses this should all be
alluded to in the stated mission. Empowering and educating individuals throughout the
world, collecting and producing educational material under a free licence or in the
common domain, including disseminating it quickly and internationally. In the mission
statement of Fonterra’s consolidates the multidimensional business model of the
organisation into an easily discernable course.
 Inspirational: It is not important for the company to get emotional or maudlin. The
mission statement, though, must be encouraging and empowering, as much of its role is
to readjust and rejuvenate, which really is especially necessary when things get difficult,
when barriers occur, and so forth. The positive essence of a strategic plan is also
highlighted in the terms which are used to explain the components (purpose and
competencies) they have already noted.
 Ability: In simple way the company excel the main talents, abilities and rewards that set
the apart which might be in the phase of refining and reinforcing them, which is natural.
The world's most prominent firms, even though they monopolise their global market,
really aren't happy with the situation. The goal here, though, is to catch and encompass

the key skills in an overarching stated mission that also represents how much worker
of Fonterra’s good at and paves the charge forward.
 Capability: In simple way the company excel the main talents, abilities and rewards that
set the apart which might be in the phase of refining and reinforcing them, which is
natural. The world's most prominent firms, even though they monopolise their global
market, really aren't happy with the situation. The goal here, though, is to catch and
encompass the key skills in an overarching core mission that also represents how much
worker of good at and paves the charge forward.
Q3. Perspective of the profitability vs. responsibility paradox is most pertinent in Fonterra’s
endeavors in China
Fonterra vendors are also exchanging Fonterra stock among them as well as are willing to
sell any of their stock' fundamental right to a special budget that is available to foreign buyers.
Farm workers maintain ownership of the enterprise, since there are no voting powers for foreign
owners. Although with the updated capital structure, though, the company also has less
opportunities than its bigger global counterparts for capital raising. At Fonterra, a recurrent
strategic question has been how and to what degree to develop enterprises that add value to the
productive production and supply of dairy bulk items. In 2016, amid efforts to emphasise
development in higher-returning goods, its currency-focused sector created over two-thirds of
sales management. While the productive dairy industry in developing countries ensures that
farmers can benefit from exporting goods, the importance of this policy is compromised by
unpredictable food exchange rate. In big economies including the European Union ads well
as the US, do indeed tariff walls and agricultural subsidies. To control foreign activities, many of
Fonterra's options for creating alternative sources of revenue generation rely on its transportation
and logistics skills. The issue is caused by the decimal that several of Fonterra 's prospects lie in
countries like china and India that are fast-growing but much less established. This, in particular,
raises the risk inherent in such activities and needs more specialised expertise to operate
transnational shipping that are politically dynamic. Commentators also suggested that Fonterra's
landowner-dominated board's strengths and interests are not strongly matched with the
management of international venues. In addition, the higher rates of financial investment sit
awkwardly with several proprietors of Fonterra's financial situation. A joint venture deal with
either the Sanlu dairy corporation in China has been one of Fonterra's overseas investments. In

2008, once Sanlu became hit by either a milk contamination crisis that infected thousands of
babies and contributed to the arrest of at 6, this agreement ended abruptly. Fonterra had to pay
down its stake in the company in excess of NZ$200 million. Fonterra took further control of all
its production process in China in reaction to these incidents, namely investing in many farms
and operating everything to its own expectations. At the very same time, milk companies in
China were finding the protection of iceland-sourced dairy. For starters, in Synlait, a competing
milk producer to Fonterra, Bright Dairy makes a large stake. This emphasises the significance of
the image of New Zealand as just a pure commodity origin: the wisdom of portion-sourcing
effects of product-owned brands from abroad has been debated by some observers. Fonterra must
maintain its partnership with other powerful players and also cope with investor tensions. In
campaigning for funding, this was not afraid to find out during boom years in 2012 that this
really produced 26 percent of all new Zealand's total exports.
Q4. Happening after the entire case.
Goal 1: Quality education
10 goals and 11 indicators for SDG 4 have been identified by the UN. The seven outcome-
oriented priorities are: free primary and secondary education; equitable access to quality pre-
primary education; accessible technical, vocational and higher education; expanded numbers of
persons with sufficient financial performance skills; abolition of all discrimination in education;
universal literacy and numeracy; and education for sustainable growth and global citizenship.
Goal 2: Gender equality
The three goals of the 'means of achieving' are: to promote equal access to women's economic
opportunities, land ownership and financial services; to promote women's empowerment through
technology; and to implement, improve policies and introduce gender equality legislation.
Fourteen measures are established to assess progress in gender equality.

REFERENCES
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