ENVIRONMENT: three plants produce more than 120,000 tons of

ENVIRONMENT:

 

Business
environment constitute of external forces that influence the business decision.
The factor which are not control by the firm or can do little changes to them.
The business forces can be either specific or general. Specific business
environment include customers, competitors, investors and suppliers which
affect business firm immediately and directly in their daily working environment.
And general environment constitute Social, Political, Legal and Technological
factor which impact in overall business and hence it is indirectly affected.
Therefore business environment must be dynamic in nature to keep with the
changes in term of technological, consumer preferences and competition in order
cope with future uncertainty and relativity through identifying opportunities
and getting first mover advantage. The subsection of the environment will
discuss the technology and social aspects of Fonterra.

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Technology:

 

Fonterra
rebuilt the trust in Chinese shoppers in concerned to contamination of protein
scare and scandal in infant formula but in recent year the fake infant formula
cans were found with ties to counterfeit. In order to avoid such issues Fonterra
has introduces the technology that is traceable to find out level of
counterfeiting in its infant formula brand so that the shoppers can instantly
check out the authenticity while they are on store shelves. The customer with
the help of Quick Read codes can access and check the information through a
gadgets devices which connects infant formula shopper directly to a webpage and
provide the details such as batch number verifying the true product in order to
prevent fraud counterfeits overseas. (Piddock,
2017)

 

Further,
Fonterra created a new way of lactose crystallizer that yield a high amount of
lactose from 65 percent to 80 percent through a technological innovation. In
this process lactose is purified through a biological way of cheese and casein
manufacture.  It is an ingredient in
product from infant formula to milk powder, confectionery. Powder inhalers for
asthma patient and pharmacy tablets. Traditionally Lactose is produced by
concentrating lots of an evaporator and then cooling the concentrate to form
lactose crystals in a crystallizer. The technology has gone so far that now it
is recognized internationally and is being installed in Europe and United
States. In addition to this it has won three engineering awards. The technology
sold by Fonterra is now operating in Oregon, Netherlands and Germany,
collectively the three plants produce more than 120,000 tons of lactose which
is more than the total quantity of lactose produce in New Zealand annually. (Hutching, 2016)

 

 

Social:

 

There
is a big problem with affluent running into the rivers and streams in New
Zealand also with the farming waste product and nitrogen this is because of the
dairy industry resulting the worst condition of fresh waterways and so much of
greenhouse emissions. Fonterra indulged with this issue. However, the
co-operative commitment in mitigation of those issues recently has result a
good action. The waterways to fence 22,000 km against the Fonterra’s campaign
to improve water quality also with technological innovation the wastewater is
being used in irrigation in farmland through taking the option of ground water
enabling more efficient for Fonterra to reuse the waste water. The ground water
storage is processed through a computer control system in which the waste water
can put directly into irrigation or stored for future use.

Further,
the waste activated sludge from the factory is being used as fertilizer for the
grasses to grow and yield high amount of milk to Fonterra. The company is
working with a big change in term of sustainability both in the farmland and
manufacturing level to understand the significance of secure, efficient use of
energy. (Rae, 2016)

 

Additionally, Fonterra believe in diverse and inclusive teams
for long term success and to the communities which result in building existing
business code and conduct without descrimination of gender, religion, race or
ethinicity. The company is driving change through innovation with diverse group
thinking how things to be done a better, smater and faster. Moreover, a
platform of the Disrupt Programme is offers to talent people to create and
implement innovative business model that would meet the future needs of
customers and consumers.