Relevant Aspects of the Business Environment

Topics: Milk, Fonterra, New Zealand Pages: 2 (473 words) Published: May 12, 2013
Samson, D., Catley, B., Cathro, V., & Daft, L. (2012). Management in New Zealand. (pp. 186 - 187). Albany, North Shore, New Zealand: Cengage learning New Zealand.  [Fonterra case study] Fonterra: More than just sour milk. Content:What is it all about?

This article is write about the Fonterra, one of the world’s leading exporters of dairy products and the largest New Zealand dairy company made a costly and painfully mistake that sighed a joint venture agreement with a china’s major dairy production companies called SanLu .In 2008,thousands of Chinese babies falling ill after consuming San Lu’s milk because San Lu’milk power had been contaminated with melamine, a chemical used in plastics. For Fonterra, the main stakeholders loss of a NZ $ 201 million investment after San Lu went bankrupt. Application and connections

This reading links to business about stakeholders in lecture in week 4. Stakeholder management is the process by which managers reconcile their own objectives with the claims and expectations being made on them by various stakeholders,and the goal is primary stakeholders achieve their objectives while other stakeholders are also satisfied.As Fonterra, hold San Lu 43% of stake and don’t have any power.It just shows you the problems of being a minority of a Chinese company. Fonterra is not really aware of what’s going on before that happened.


Fonterra should have more communication with San Lu as a main shareholder,and Fonterra need to learn how to work a company in China. Will Fonterra works with another Chinese company in the future?

Samson, D., Catley, B., Cathro, V., & Daft, L. (2012). Management in New Zealand. (pp. 191-192). Albany, North Shore, New Zealand: Cengage learning New Zealand. [Timberland case study]

Content: What is it all about?...
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