DBN509 A1 PART AComment by Zia Qureshi: Correct it ? Dhruv D Patel YIB000012k INTRODUCTION Fonterra is the company famous for manufacturing dairy products and it is so massive that it is suppling 30%...

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DBN509 A1 PART AComment by Zia Qureshi: Correct it ? Dhruv D Patel YIB000012k INTRODUCTION Fonterra is the company famous for manufacturing dairy products and it is so massive that it is suppling 30% of the dairy products worldwide. There are in total 141 countries which is importing the dairy products of Fonterra for their daily use. There was in to 19.23 billion of profit last year for the company. The company is owned by 10000 farmers and, they play important role for the success of the company. Moreover, Fonterra is working on enhancing the technology to deal on the operations on daily basis. The biodiversity is supported and ensured by the farmers of Fonterra and the quality of the dairy products is ensured by their quality managers.Comment by Zia Qureshi: Reference ? The company was established in October 2001 and in some time the capital is so increased that the company have increased their shares in the market. Due to increasing capital in a smaller period the company have introduced variety of products in the market. Fonterra has increased its 50% of market by purchasing dairy farmers and national foods. After that the company has introduced deserts and yogurts to expand its business. Fonterra has the total of 11 boards of members in which 7 members are selected by the farmers and the other 4 are selected by the other 7 boards of member. The entire growth of marketing and the company depends on the CEO of the company and he controls the boards of directors. Comment by Zia Qureshi: Sales, Gross Profit, Net Profit, Total 5 Reference ? Financials of the company: According to the survey of Fonterra it shows that Fonterra has performed well due to which the shares rate of the company increased by 8.8-9.00 in 2015. After that the company did a large investment on technology and has mainly increased its production of the dairy products like cheese, deserts, milk, etc and after the production of the new products the market shares has increased globally. For example: Fonterra has invested a large number of money on its new products like cheese, milk, ice-cream but the investment in 2017 has made some of the problems and by that company has faced loss of 195 millions and that is a big figure loss compared to its profit.Comment by Zia Qureshi: Put % Fonterra also has lack of expert management so that must be the reason for which the company has faced the loss. By this loss scenery of the company has hired some of the good management experts in 2018 to ensure to its stakeholders. Mission and Vision of the company: The company has the mission to increase its market shares and provide a good number to its stakeholder by the vision to provide good and fresh product for the daily use. The company also wants to increase its market world wide which may also increase its capital.Comment by Zia Qureshi: Vision ?Reference ? Products and services of the company: The company mainly works on manufacturing dairy products like milk, cheese, butter, yogurt, ice-cream etc and the company also has brands like anchor, tip-top, mainland.Comment by Zia Qureshi: Add brands name like Anchor (Milk) Core values of Fonterra:Comment by Zia Qureshi: Reference ? As individual employees of the company are shaped in professional experience and different cultures. For community the company satisfy its values and environment for offering healthy products at very less prices as well as offering core values for the environment. Moreover, the company is talking values by the for their farmers and fulfil rules of the government for the core values of the company. Key Markets Comment by Zia Qureshi: In which markets Fonterra sell milk Sustainability challenges of the company: - 1) The availability of nutrientsComment by Zia Qureshi: Wrong Correct it ? When the demand increases in the market nutrient also plays a vital role in the food industry and Fonterra is already facing lack of nutrients in its products and can improve its quality of product. Fonterra is based in New Zealand and it is one of the countries that is facing obesity, and by that if the food has good nutrients people will not face malnutrient and will be healthy. Fonterra must ensure that they will create a good nutrient for their products. 2) Population growthComment by Zia Qureshi: Its not their problem , Reference ? As the population is increasing the food demands also increases with it and that can create a pressure for Fonterra to produce and supply more products to the market. It is assumed that the population is increase day by day so 50% more food is to be produce with 9.2 billion of population. So the company will need to install more plants and machinery for producing more dairy products for the purpose to capture its customers by suppling their needs. 3) Quality and quantity of water useComment by Zia Qureshi: Its wrong Discuss about water polution bcoz of fonterra operations ?Reference? Due to the waste thrown away in water the water is getting more contaminated and on the other hand company also uses water for productions of the products so by that the quality of water is reduced. And it is assumed that the demand of the water will increase 25% by 2020 this is the big pressure for the company that it has to invest more on machinery by which the water can be used less 70% which is used today, and Fonterra has also planned the process to invest new plants by 2020 to use less water. 4) Health crisesComment by Zia Qureshi: How this global problem impact Fontrra?Reference? When poor quality of products is consumed by people that leads to health crises. that is the main reason government has stated a strict action on the quality of product so in New Zealand the quality of the products is measured by health star ratings. Fonterra is also trying to improve its health management to improve the quality of products. Moreover, according to OECD every 2 people are facing obesity and New Zealand comes 3rd in the OECD list. That created pressure on Fonterra to improve the product quality. Comment by Zia Qureshi: How this global problem impact Fontrra?Reference? 5) Climate change Human activities impact more on the climate change and the environment. Climate change has also impacted the quality of food production for the company and that can be arise a issue of scarcity. Controlling the temperature can bd helpful for production of the food. This is the reason that company is planning to create environment friendly methods for the production to decrease less carbon footprints in the environment. Quality management issues of the company: · ISO9001 is been used by Fonterra to maintain the product quality but still company is facing the issue on quality on its Anchor brand because Fonterra got many complaints by its customer that the quality of product is not up to the mark and taste bad. After researching on that issue Fonterra has found that the bad taste is because of the bad quality of the products and is working to improve it.Comment by Zia Qureshi: Defi ISO in detial ? And specifically expalin challenges Fonterra face when implement these ISO’s 123 · Fonterra has spent millions of dollars to adopt the advance technology for the quality of the product with the production. The invested made on technology in 2018 has failed due to lack of management which was needed. The company was also running with sort of experienced staff who can deal with the latest machinery. That is the reason the company hired new management staff who can deal with the advance technology and have good skills and knowledge about the technology. The loss was 196 million dollars due to the technology fail. ..Comment by Zia Qureshi: 2nd ISO?Defi ISO in detial ? And specifically expalin challenges Fonterra face when implement these ISO’s 123 Sustainability initiatives taken by company: Fonterra is planed and took some of the initiatives towards the problem faced by implementation of sustainability. For which the company is following SDG’s (sustainable development goal) procedure. The SDG was set up the United Nation for the purpose to maintain sustainability. This will help to find out the issues faced due to sustainability. This SDG goal and objective are implemented in more than 169 countries and SDG has designed 17 goals. Fonterra has also taken the initiatives and they are as follow: · Maintaining nutrients in products Fonterra has taken steps for its products like the value milk. Fonterra is also using latest technology for the purpose to pressure natural nutrients. By natural nutrients company can implement more nutrients in its products and company can now ensure the health benefits for its products. By this reason some how market share price of the company is increasing.Comment by Zia Qureshi: Mention specfici intiative ?And how this intiative help to solve challenges discussed in a & b · Reduce the gender discriminationComment by Zia Qureshi: That’s not sustianbility ?Write correct one From case study ? The company has taken some of the initiatives to reduce the gender discrimination of their employees by that reason the productivity of the company will increase and can achieve the target goal if the employees are working in harmony and with no biasness. Company also gives equal opportunities to the gender to maintain the workplace environment. Moreover, by this reason the performance of has increased and in result company has earned more profit margin.Comment by Zia Qureshi: That’s not sustianbility ?Write correct one From case study ? · Maintain the health of the people Fonterra has taken some of the steps to increase the health of the workplace people. For the purpose the management and farmers are working on the quality of the company’s product by using different techniques. On the other hand, because of the health purpose the company is now using low quality of chemicals in the product produced and Fonterra has also reduced the greenhouse form the supply chain. And now the company is more focusing on the property of its farmers so that they will not face any of the health issues and can work efficiently. Continuous improvement Initiatives for the continuous improvement of the company: - · Use of advance technology The company has more focused on taking the initiatives of the advance technology for the reason to increase its production measure and quality of the product. From 2015-2018 the company has invested a lot on its machinery and technology. The company is using global positioning system (GPS) by which the company will get and idea of land which can be used for the dairy farming. The company has also adopted some of the aggregate technology to know about the effectiveness of the farmers and its system.Comment by Zia Qureshi: What is the beenfit of GPS in relevence to sustianbility?Reference? · Management of wasteComment by Zia Qureshi: Mention specific step taken by Fonterra, explain its relevence to sustianbility Reference? For the company waste management plays a vital role in the industrial market by waste management it will help the company to maintain sustainability and reducing the footprints in environment and by that the company will get its continuous improvement. The company is also working for the water loss and reduce water usage in the