fonterrareport

1、organisation and managementthe investigate of fonterrazhou yan (donna)id: 2100482511 april 2011 term1jene parilla, business lectureacknowledgmentsi would like to thank jene parilla who is business lecturer. without whose knowledge and guidance this report would not have been possible. also barbara p

2、age, at learn centre of whitirela whose was valuable editorial advices and helpful suggestions. table of contentsacknowledgments 2table of contents31.introduction42 analysis 52.1 background5 2.2 organization goals5 2.3 organizational culture and ethics6 2.4 problem-solving and decision-making7 2.5 c

3、ontrol function7 2.6 strategy and structure8 2.7 motivation 10 2.8 stakeholders 113. conclusion13 4. recommendation14reference15 fonterra co-operative groupnew zealand1. introductiondairy products are a most important part of our daily lives, especially for babies and elders. we are very concerned a

4、bout its quality and how it would directly affect our health. the purpose of this report is to investigate the biggest dairy products supplier in new zealandfonterra co-operative group.the report will introduce the group through eight different parts. these include the background of the organization

5、, the goals of the organization, the culture and ethics of the organization, the way to make decisions efficiently and effectives, quality control of production, the strategy and structure of the organization, the way to motivate the employees of the organization.we will understand the aim of the or

6、ganization and it is social responsibility to its stakeholders, and the way of achieving its social responsibility. there are some recommendations for fonterra, in order to upgrade its social responsibility.2. analysis 2.1 backgroundthe fonterra co-operative group ltd. was created from the october 2

7、001 merger of the new zealand dairy group (nzdg), kiwi cooperative dairies, and the new zealand dairy board (nzdb). “responsible for 20 percent of new zealand's total exports and 7 percent of its gross domestic product, fonterra operates as the world's largest exporter of dairy products, con

8、trolling over a third of international dairy trade.” (stansell) the group is co-operatively owned by over 10500 dairy farmers whose products are sold under such brands as anchor, anlene, mainland, anmum, and chesdale. there is a large range of dairy products that include fresh milk, milk powder, yog

9、hurt, butter, cheese, ice cream and some other products. the group also supplies their products to approximately 140 countries. fonterra has 15600 employees and a revenue exceeding (nzd) $16.75 billion.“ over three million fonterra cows produce over 13 billion litters of milk each year. the united s

10、tates is fonterra's largest single market by revenue while asia is the group's largest export region. fonterra operates 29 manufacturing sites in new zealand and has 35 additional locations throughout the world.” (stansell) 2.2 organizational goals organisational goals explain how an organis

11、ation intends to go about achieving its mission. fonterra aims for global dairy industry leadership. the group works hard to be the lowest cost dairy products supplier, the leading price and inventory manager in the global commodity market, an effective developer of dairy ingredients, a leading spec

12、ialty milk components innovator, a leading consumer nutritional milks marketer, and to be a leading dairy marketer to foodservice in key markets. (stansell)as a food industry company, social responsibility for fonterra is very important. its mission directly affects to the stakeholders. fonterra has

13、 to balance the benefits of stakeholders and the social responsibility of the organisation. one objective of the organisation is to become a leading producer of nutritional milks marketer which have present above. the social responsibility of fonterra is to provide nutritional milks to its consumers

14、. in order to achieve the fonterra has to control its quality from the very first until delivered to the hand of the customer, and to focus on components and be a process innovator. fonterra must keep on investigating nutritional products which are much more helpful to humans health. dr10 and dr20 a

15、re products of fonterra. they are ideal for encouraging a healthy digestive balance, bolstering the guts defences and the overall immune system, enhancing infection resistance, and providing a “firewall” of protection from lifes daily stresses. it is helpful for the healthy of human body. it will al

16、so make revenue for its stakeholders. the consumers are willing to purchase the products which benefit their health, so the aim of the organisation is important to its social responsibility. 2.3 organizational culture and ethics organizational culture is the pattern of basic assumptions that a given

17、 group has invented, discovered, or developed in learning to cope with its problems of external adaptation and internal integration”. (schein, 1984, p3) that is the attitude of organization to treat issues, the behaviour of employees, objectives of organisation and so on. organizational culture sepa

18、rates to visible and invisible. in the fonterra, employees are required to wear a white unit form when they are work in the company. that represents “clean”. it shows fonterra focuses on the quality of the products. everyone can see it easily, so it is visible culture of fonterra.the concept of font

19、erra is “dairy is our life's work” that represents the invisible culture. we cannot see it, but it can be identified from organizational behaviour. fonterra believed that milk is pure milk which provides the building blocks for a healthy life. the products are specially formulated for adults to

20、help maintain optimal bone health and strength. fonterra invest us$40 million dollars in leading bone research. a team of 19 nutritionists and some innovative thinking on the part of fonterras product development team resulted in anlene. anlene combines bone-strengthening nutrients such as calcium,

21、protein, zinc and magnesium with nutritionally-rich milk proteins. research in asia showed women consuming anlene benefited from a lower rate of bone loss. the culture of the organization decides what kind products will be produced, and what they will focus. so the culture of the organization are af

22、fected its social responsibility.2.4 problem-solving and decision-making, in order to provide high quality dairy products, and return profits to the shareholders, improve the efficiency and achieve its effectiveness are important for the organization. high technology is a useful way to achieve it. t

23、he automated manufacturing project (ham) is one of example in fonterra. fonterras fully automated milk concentration processing facility at tuamarina at the northern tip of the new zealands south island is managed by a control room over 450km away at fonterra's clandeboye site. the application o

24、f ham increases its efficiency by reducing the costs of time, labour and money. the cutting of costs and reducing processing time will enhance the organizations competition and increase its market shares. the great turnover may attract investors to contribute funds and keep the organization financia

25、lly healthy. 2.5 control functionthe major control system used in fonterra are total quality management ( tqm ). the father of tqm, deming, defined tqm as quality-centred, customer-focused, management-led processes to ensure high standards of product and service performance. (pio, organisations and

26、management, 2007) the view of tqm is that quality is starts with the choosing of raw material and ends with the products in the hands of customers. it is not just quality of products, but also involves customer services.the application of the tqm system ensures the achievement of social responsibili

27、ty to provide high quality nutritional dairy products for customers. in october 2006, fonterra developed new milk powder quality test to reduce testing period and improve the quality assurance of its products. it is flow cytometry the testing which cuts the time required to sample and test a product

28、s quality from days to hours, allowing close to real-time monitoring of milk powder production and tighter control over manufacturing. the application of this new technology improves efficiency and makes ensures the quality of the products. in additional, it achieves the commitment to its customers

29、to provide quality nutritional dairy products.2.6 strategy and structure “structure is the grouping of tasks into areas or departments, the way that jobs are grouped together.” (pio, organisations and management, 2007) that is the framework of an organisation. it is important and useful to improve e

30、fficiency and achieving its effectiveness. in the diagram below, we can see that functional departmentalisation and geographic departmentalisation are applied. fonterrafonterra in nzfonterra in australiafonterra in philippinesfonterra in chinafonterra in indonesia      

31、 chairman ceo cfo   manufactory deptmarketing deptfinancial depthr deptin the diagram, we find that fonterra is separated into 5 departments in the geographical area they exist in. that is a flat structure. in addition, department in nz is based of it function.fonterra

32、is an international company. the structure of organization designed by geographical area. it is useful for company to meet target and achieve its social responsibility. different countries have different policies and cultures. the company will easily meet the needs of the customers if there is a who

33、le department which investigates and produces the particular products. it is helpful for the organization to provide high quality and suitable tasty dairy products to particular countries consumers.in the local department, it is a hierarchical structure based on function. employees focus on one task

34、 where they are fully skilled and experienced. it is useful to improve the efficiency and effectiveness of the organization, and continually improve the quality of the products for the customers.as one of the biggest companies in new zealand, fonterra are still using the growth strategy. in recent y

35、ears, fonterra has continues opening new branches oversea and investing in farms. in feb 2010, fonterra decided to invest in two more farms in china. according to the latest news released by fonterra 09 march 2011, the company will expand its global dairy trade, the online dairy products trading pla

36、tform, to allow other dairy companies to sell their products on the platform, and also intends to widen the range of fonterra products for sale on the global dairy trade. (fonterra, 2011) all of these activities clearly show fonterra is using the growth strategy. it keeps increasing its market share

37、s in the world by opening new oversea branches or online trading, to provide green, healthy and high quality dairy products to more and more people all over the world. 2.7 motivation motivation is the driving force target people to do something. it is an important way to push people to achieve their

38、 desire, and is also useful for the improvement of efficiency. one famous motivation theory is content theory. it is suitable for big companies. there are many levels of employees. they have different requirements and desires. it will help the organization to achieve its goals and social responsibil

39、ity if the organization identifies it properly. we also can find content theory in fonterra. it identified the needs for each level of employee, and motivated them based on this information. at fonterra, we want to attract, retain and develop people of the highest calibre to help us achieve our visi

40、on to lead in dairy. to do this, fonterra has a people management process called performplus and a commitment to use it to achieve its business goals.fonterra believes that both functional excellence and inspirational leadership delivers results and the experience of working at fonterra build employ

41、ees capabilities and a sense of personal development.to help achieve this, fonterra has the performplus framework for managing performance and development. performplus runs across all salaried employees and drives their performance, development, succession, talent management and recruitment processe

42、s. it combines the values and performance objectives and links through to awards. the outcomes of performplus create opportunities for its people to develop both as individuals and in their careers. thus performplus is suitable for the bottom level of staff by rewarding for their performance and hig

43、her level of manager through developing their careers. there are improve the employees capabilities. 2.8 stakeholdersthe stakeholders divide into internal and external. in fonterra, shareholders, employees and officers are internal stakeholders, and external stakeholders are investors, suppliers and

44、 customers.shareholders include the board of directors and 10500 farmers who own fonterra. they want to keep the organization healthy and make a profit. employees and officers are involved within fonterra. the situation of the organization directly affects the development of the organization. they g

45、et salaries from the organization and self-esteem through their work.investors who introduce funds into the company want as much revenue return as possible. suppliers are strictly linked to the quality of materials they provide to fonterra. at the same time, they are concerned about collecting their debts on time. other stakeholders are the customers of fonterra. they are focuses on the price and quality of products, and their demands affects the organization. in conclusion, they are all stake