Case Study Pages:
Meeting local and global needs
This Case Study looks at New Zealand's largest company, Fonterra. It discusses its importance as a producer, manufacturer and marketer of dairy products. It reviews the firm's response to shifts in both global and domestic markets.
As a result of carefully reading this Case Study, students should be able to:
- Understand the difference between the local and the global marketplace
- Define a co-operative and explain how it differs from other types of business organisation
- Discuss the importance of brand recognition
- Explain how an integrated business operates
- Discuss the challenges for Fonterra and its strategy for the future.
Fonterra is New Zealand's largest company and a leading international dairy company. It is responsible for 20 percent of everything New Zealand exports.
A supply chain traces the production of a good or service through its various stages.
If you've ever enjoyed a Tip Top ice cream or a glass of Anchor milk or a slice of Mainland cheese then you have enjoyed a Fonterra product.
To meet these trends Fonterra has developed products that will meet the diets of both the West and developing countries.
Today we shop in a global environment. Around the world large retail chains or supermarkets dominate the marketplace.
Demand for dairy is growing so fast that a whole New Zealand dairy industry would have to start up every 10 years to meet it.
In order to meet the rapid changes in the dairy market Fonterra has a four-platform approach.
Fonterra is one of the most successful co-operatives in the world. It is the sixth largest dairy company by turnover. It is the largest supplier to the globally traded dairy market and New Zealand's largest company.