External Macro Forces Case Study

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Ques 2 External Macro Force & it’s impact of R & D department: Off late Fonterra group was growing in the global market increasingly in different countries. This results in a pressure situation for the company, because it will satisfy many demands on standards according to the standards of the host country. The R & D department must focus on improving the production and packaging technology to overcome this problem. For example, Chinese customers were interested in low-fat milk, where are the European markets might be there for the rich low-fat milk. So the company adds all these changes which can be done by the R & D department. Suggestion: The company’s R & D department should make global survey regarding the standard dairy practices across…show more content…
The company and its HR department should try to strengthen this workforce to make them competitive. It should conduct weekly updates and also training to update the skills of these people. The more skilled workers have it will be helpful for the company in the long-term. This long term planning is very crucial for the company. Suggestion: The company should conduct periodical training classes to its employees regarding better work and technological changes. This will help the workforce to be well equipped and meet the global standards. Internal Weakness & its impact on PR Department: One of the Internal Weakness of Fonterra has been the image of the company which has been portrayed recently and also the botulism charges. This leaves a huge responsibility on Public relations department to solve the crisis. Suggestion: The company’s PR team should align with many environmental initiatives to create goodwill about the company and also try to portray as the sustainable company.…show more content…
The company has to take many strategic decisions regarding, its supply chain aspects and also the logistical support which includes labor sourcing. All the issues collectively require proper prioritization. ⦁ Set Targets: Core strength of Fonterra has been its market domination, because of its wide product range. Capitalizing on it the company has set targets to reach out to the American markets by the end of 2015. This shows how the company is linking its strengths to setting real business targets. ⦁ Measure Performance: Fonterra has been recently criticized for botulism especially in Chinese markets where in the Chinese government has returned considerable amount of Fonterra products, this has made the company to introspect the internal performance of its units and processes and also had a rethink on the plants. The company has proposed to adopt lean manufacturing techniques which it is already using in some of the

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