Enhancing Fonterra's Global
Strategy and Sustainability
MANAGEMENT CONSULTANCY REPORT
1
Executive Summary
Fonterra, a significant player in the global dairy sector, operates
extensively across Europe, Africa, the Middle East, and Asia. This
detailed report aims to strengthen Fonterra's global strategies by
offering actionable insights essential for promoting sustainable
growth. Through thorough analysis, our goal is to provide Fonterra
with strategic direction to effectively navigate complex market
dynamics, ensuring long-term prosperity in the industry.
2
External Environment Analysis
PORTER’S FIVE FORCES
THREAT OF
NEW LEGAL
ENTRANTS
ENVIRONMENT
AL POLITICAL
SUPPLIE EXISTING BUYER PESTEL
R COMPETITO ANALYSIS
R RIVALRY POWER
POWER
TECHNOLOGIC
AL ECONOMIC
THREAT
OF SOCIAL
SUBSTIT
UITION 3
Val Rar Har Orga
Internal Environment uabl e? d to nize
e? imit d?
Analysis: ate?
YES NO Competitive
VRIO Framework: Internal resources parity
& capabilities. Competitive advantage
YES YES NO Temporary
competitive
identification. Core competencies advantage
assessment.
YES YES YES NO Unused
competitive
advantage
YES YES YES YES Long-term
competitive
advantage4
Strategy in the Global Environment
Distinctive Capabilities: Cutting-edge tech &
premium milk sources.
MOTIVATIO Market Opportunities: Growing populations &
NS & evolving preferences.
OPTIONS Strategic Imperatives: Direct investment for value
chain control.
FOR Strategic Options:
EXPANSION: Franchising: Rapid entry, leveraging local
expertise.
Digital Expansion: Direct reach, personalized
marketing. 5
Corporate Strategy
Supply Chain & Profitability
Strategies:
ENHANCING Tech Integration: IoT, AI for monitoring.
FONTERRA'S GLOBAL Lean Manufacturing: JIT, TQM for
efficiency.
SUPPLY CHAIN Resilience: Diversification, contingency.
Sustainability: Eco-initiatives, ethical
sourcing.
Profitability: Integration, outsourcing,
alliances.
6
PRODUCTS
EXISTING NEW
The Ansoff's Matrix
EXISTING
Market Product
INCREASING RISK
Penetration Developmen
t
YOUR 1
3
MARKETS
AMAZING
SOLUTION
Market Diversificatio
NEW
Developmen n
t
2 4
INCREASING RISK 7
Strategic Purpose – Ethics and CSR
Recommendations: Transparency, ethical sourcing, community engagement.
ECONOMIC: LEGAL: ETHICAL: PHILANTHR
OPY:
Profitability, Compliance with Fair treatment, Community
sustainability. regulations. integrity. development.
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Market Analysis and Competition
Market Trends: Competitive Landscape: Analysis:
• Growing demand: • Key Players: Identify • Market Share: Assess
Especially in emerging industry leaders and Fonterra's position
economies. emerging competitors. relative to competitors.
• Industry Dynamics: • Product Differentiation:
Highlight market growth, Evaluate unique selling
challenges, and trends. points and branding
strategies.
• Competitive Strategies:
Analyze Fonterra's
approaches to gain and
maintain competitive
advantage.
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PEST Analysis
Political Influences related to politics and the government.
Laws, taxes, and inflation rates.
Economical Unemployment rates, economic growth, and
interest rates.
Social Population growth, environmental, cultural and demographic factors.
Technological Technological developments and offerings affect cost structure and
how people shop.
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SWOT Analysis
Strengths Opportunities Weaknesses Threats
Positive attributes Positive external Project factors that Identify potential
of your project, factors that are within your threats to your
both tangible and represent reasons control but weaken project. What
intangible, that are your project can your competitive obstacles do you
within your control. prosper and grow standing. face? Who is your
based on markets, competition?
population, et al.
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CONCLUSION
International Expansion Motivations: Market opportunities, strategic imperatives.
Strategic Options: Franchising, digital expansion, sustainability partnerships, joint
research ventures.
Supply Chain Optimization: Technology integration, lean principles, resilience
measures, sustainability practices.
Increasing Profitability: Market penetration, development, product innovation,
diversification.
CSR Strategy: Economic, legal, ethical, philanthropic responsibilities. Stakeholder
engagement, ethical sourcing, community initiatives.
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