Food Safety: Fonterra, Leadership, and Change Management Report

This report delves into the critical issue of food safety, examining its impact on public health and the strategies employed to mitigate risks. The report uses Fonterra as a case study, analyzing the challenges posed by food safety incidents, particularly the botulism contamination scare. It explores the ...Read More

Running Head: Food safety
Change Management

Food safety
Table of Contents
Introduction................................................................................................................................2
Based on issue............................................................................................................................3
Strengths.................................................................................................................................3
Weaknesses.............................................................................................................................3
Advantages and Disadvantages..............................................................................................3
Leadership theory and style.......................................................................................................4
Leadership..............................................................................................................................4
Leadership theory and style....................................................................................................4
Specific leadership theory and style.......................................................................................5
Change management model.......................................................................................................6
Quadruple Bottom Line (QBL)..................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9
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Food safety
Introduction
The report is the discussing about the product and food safety. Food safety had
become the crucial issues prevailing within the environment. It is deteriorating the health of
the people and becoming the cause of various dangerous injuries and health problems. To
analyse the problem closely first of all the issues related to food safety have been discussed
keeping in mind the specific issue of botulism. In the basic issue the key competitor of the
food safety product was analysed along with the advantages and disadvantages based on the
weakness and strength of the product. Thereafter the leadership skills and styles were briefly
discussed and the suitable leadership theory and style has been selected and the investigation
has been made. The third evaluation was in the context of a small case study of Fonterra. The
case study was based on the change management model and the change model was chosen to
explain the things in better way. Lastly, the qualified bidders list was learnt and policies were
examined to know the factors responsible to get enrolled in The QBL.
The entire focus was on the changing scenario of Fonterra and how the human safety
has been paid attention. The measures were suggested to improve the situation of health and
hygiene in the organisation so that overall development takes place.
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Food safety
Based on issue
Food safety is the serious and emerging issue prevailing around the world. There are
numerous diseases that are up-coming due to lack of food safety and changing food habits of
the people. In order to protect people from these hazardous problems and taking steps
towards its improvisation is the complex activity. Certain specific issues associated with the
product and food safety are botulism, pasture nitrate inhibitor and small pieces of
unrecovered plastic on the processing equipment (Food safety, 2017).
The basic issue that occurred was the botulism contamination scare in New Zealand
by Fonterra. The issue reported was that the company violated four food safety rules and
norms. One of them was the recalling of 38t of whey protein. On testing the issues further,
results that came up were that the allegation was false. As discussed the 4 issues have been
analysed which argues that there was the use of non-standard equipment, the export of
contaminated product was taking place, the regulators were not informed about the occurring
of discrepancies and even the government was unaware of the fact that contamination has
been taking place.
Strengths
 The distribution channel and sales network is strong of Fonterra.
 The government supported the research and development industry.
 The profitability and revenue is high and is one of the experienced units.
 The workforce at Fonterra is highly skilled.
Weaknesses
 The business unit is small.
 Financial capacity of the company is low.
 The access towards the capital is less as compared to the supply.
 The market integration is lacking due to the limited knowledge of in-market
value.
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Food safety
Advantages and Disadvantages
The advantages connected with the particular food safety industry in New Zealand
Fonterra industry have developed the healthy perception in the mind of consumers. The by-
products of Fonterra have been used wisely thereby creating its own value. The supply chain
technology has also been initiated and improvised.
The disadvantages attached with the food safety industry are the continuous decline in
the wild capture. The not in my backyard (NIMBY) attitude limits the activity of the
industries. The fresh exports are curbing due to the reduced cost of airfreight resulting in the
lack of feasibility.
Leadership theory and style
Leadership
The leadership is the impact of superior over their subordinate and they direct their
working and guide the employees to bring about the improvisation in their working and
enhance the efficiency and effectiveness of working. According to Warren Bennis, leadership
is the effort that is made to convert the vision into reality (Antonakis, 2017). It could be best
illustrated from the below figure:
Figure1.1 Leadership
(Source: Anderson, 2016).
Leadership theory and style
There are 6 leadership theory and style that assists in wisely making the decisions related to
the Fonterra. The 6 theories and style are briefly investigated as under:
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Food safety
 Trait: The traits are inbuilt within the human from the time they are born. They are
the instinct and the quality prevailing within them which gets better and exclusive by
undergoing the better leadership study. The 5 major traits involved within the human
are- intelligence, self-confidence, integrity, sociability and determination.
 Participative: The participative theory is also quoted as the democratic and power
sharing theory. In it the limited power is delegated to the subordinate so that they
could undertake certain decisions freely. There are 3 styles of participative leadership-
autocratic, democratic and laissez faire.
 Situational: The situational leaders are those that adjust according to the current or
upcoming situations. They are the one that rapidly adopt the dynamic situations and
carry the contingency approach. The styles of situational leadership are- selling,
telling, participating and delegating.
 Transactional: The military style leadership is concentrated where the scalar chain is
followed. People are motivated in positive as well as negative manner through
rewards and punishments.
 Transformational: The focus is on supporting the staff by accomplishing the vision.
The leader sets the high goals and dictates the benchmarks to the staff to gain the dual
development simultaneously.
 Path-goal: It is about the manner in which the leader supports and encourages the
staff to perform better in order to accomplish the goals. The aim of the superior is to
build up healthy relationship between the employer and the The style of path-goal
theory is directive, supportive, participative and achievement-oriented (Frankel &
PGCMS, 2017).
Specific leadership theory and style
For Fonterra the situational leadership have been selected which was introduced by
Kenneth Blanchard and Paul Hersey. As discussed earlier it is the leadership style where the
leader immediately accepts the situation and act accordingly. They handle the situation in a
well manner and convert it into the opportunity or at least deal with the situation in such a
manner that loss is not been faced by the organisation. The styles of situational leadership
will be elucidated briefly with the help of examples:
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Food safety
 Telling: It could be termed as the micro management. Considering the example of
Fonterra products the manager and owner of the company directs the value and
nutritional level to be maintained by the employees (Anthony, 2017).
 Selling: This is meant for the fresher who are still under the process of learning. It
seems like the coaching where the employees are made learn about the day to day
activities.
 Participative: It is opted for the sake to analyse the leadership quality of the staff and
pick up the point where the person is lacking and focus is paid upon this idea to
improve the skills.
 Delegating: The decision making skills are been tested. After delegating the authority
the leader does not bother about the working but the feedback is rendered by him and
monitoring is made to note the point where employees are lacking. This could be
linked with the Fonterra products where balancing the standards and nutrition is
delegated to employees and their decision making is scrutinized (North house, 2015).
Change management model
The change management model could be better understood with the help of a case
study which involve the model of change management. The limitations are also quoted to
clarify the model and helps in improving the Food safety issue (Son, 2017).
Fonterra is a global dairy which supplies the nutrition throughout the world. The
company owns around 10,500 farmers along with the families they own. They believe in the
power of diary and nutrition to change the scenario and bring the difference. It is leading
dairy in the New Zealand. The company faced the issue in context of the quality of products
and the results showed contamination in the dairy products and whey protein concentrate.
China and Russia banned the supply of Fonterra along with Malaysia, Vietnam and Sri
Lanka. The research have been made and the results stated that out of hundred strains of
Clostridium the maximum portion was proved to be healthy and harmless only a few products
revealed the involvement of contamination which is likely to cause Botulism which is a life
threating disease. But now the search has been made and affected products are identified and
recalled and in the other session of processing the bacteria causing the harm has been
destroyed. This scenario highly affected the financial status of the company but it is taking its
own way to pave the way towards success.
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Food safety
The change management model involves the 3 attributes: Unfreeze- Change- Refreeze.
Considering the above case study the Change model has been used which quotes upon the
solution of the uncertainty and finding out new ways to perform things and coming up in the
lime light once again. With the gradual changes people again start to believe in the quality of
product and supports the new method adopted by the company (Mind tools, 2017).
The shortcoming faced with the change model:
 The cultural differences might occur which the other people may not
understand.
 Awareness may not get spreads in equal proportion which might result in the
lack of knowledge among the people.
 A bad change will depict a negative portray of the company which will be
harmful for the organisation and country’s reputation (Faucheux, 2017).
Quadruple Bottom Line (QBL)
The prime responsibility of QBL is to focus on the economic development of the country.
The competitiveness is promoted so that profit maximisation could be made for the progress
of the nation in the economic term. In the context of the corporate governance the promotion
of economic enterprises are its prime responsibility. The quadruple bottom line includes the
4Ps i.e. people, profit, planet and progress and it provides the base for comprehensive
framework in order to develop the sustainable prosperity. In context of Fonterra the
quadruple bottom line could be explained as under:
 People: The people are related to the quality of life, now a day people are quality
conscious and focuses on the health, wellbeing and flourishing. Therefore the
nutrition level and packaging should be done in an effective manner. Fonterra need to
maintain its value and concentrate on the fact that not more contaminated bacteria are
been supplied to the people. The standard of living has been increased and people are
ready to pay for the quality but not to compromise in any case.
 Profit: The profit in the quadruple bottom line depicts the competitive productivity.
The competitive productivity is used of producing the products and services and also
distributing the stuff for the consumption and raising the profit thorough the scarce
resources. Fonterra in order to increase the profit used whey protein and dairy
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Food safety
products but the strains of contaminants causing the botulism highly affected the
progress of company. The reputation of company along with country was at risk and it
became the prime responsibility of the company to regain the lost fame by
incorporating efforts to make a comeback with the variety of nutritional and healthy
products and assuring the people about the quality.
 Planet: The planet refers to the ecosystem and sustainability of the resources. It
signifies the social obligation of the organisation towards the community in which
they are working. Considering Fonterra the social obligation was broken up due to the
spotted strains of clostridium which cause heavy illness and life snatching diseases.
On verifying the major portion was found safe but still in the minor portion the
contamination was spread. Measures were taken to curb the further production but at
once the social obligation was not fulfilled. Earlier Fonterra was one of the top
supplier of dairy products because of its quality and retention of nutritional value.
 Progress: Progress depicts the innovation techniques adopted by the company. It is
the point of risk that Fonterra has to take in order to attain the previous reputation and
gain back the trust of public with the product and its quality. The new products with
high nutritional value and complete check should be launched to achieve the premier
position once again (Cambridge leadership development, 2017).
Conclusion
From the above report it could be concluded that food safety is the major and widely
growing issues and dangerous diseases are occurring due to lack of hygiene. The basic issues
have been discussed which focuses on the specific issues of botulism caused by the use of
Fonterra products. The 3M solution has been briefly discussed along with the strengths and
weakness of MPI in relation to the seafood safety. The advantages and disadvantages of MPI
safety are investigated. Thereafter the leadership theory and styles are elucidated and the best
suiting leadership theory i.e. situational theory and its selling, telling, participative and
delegating styles are described. The change management within the food safety has been
considered and the case study related to Fonterra is focussed and change model has been
linked with it. Lastly, the QBL listing has been briefly discusses along with the certain
policies that have to be kept in mind if the company has to get involved in quality bidders list.
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References
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Anderson. L. A. (2016). How leadership behaviour affects team members and beyond.
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the-new-zealand-seafood-industry-2017.pdf>.
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Mind Tools. (2017). Lewin’s change management model. Viewed on 7th October 2017.
<https://www.mindtools.com/pages/article/newPPM_94.htm>.
Northouse, P. G. (2015). Leadership: Theory and practice. Sage publications.
Quick base. (2012). Three types of change management models. Viewed on 5th October 2017.
<http://www.quickbase.com/blog/three-types-of-change-management-models>.
Son. S. (2017). 5 case studies about successful change management. viewed on 5th October
2017. < https://www.tinypulse.com/blog/sk-case-studies-successful-change-
management>.
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