IBUS 201 Individual Assignment 2 Cover Sheet
Fonterra Incident in the International Business Environment
Currently, increasing number of firms get a powerful influence by the dynamic international business environment. Fonterra 2013 incident will be analysed in order to identify the key factors of failure. Firstly, the importance of international business environment for Fonterra will be illustrated briefly. Next, the report is focus on the crucial problems and mention about clostridium botulinum, which mainly refer to corporation social responsibility and ethnic behaviour aspects. Then the article will describe and evaluate the methods by the company to solve the issues. In addition, better ways for settle the problems and…show more content… Under the impact of rapid growth in trade and investment, Fonterra, it has a long business development about 30 years in China, which provides all kinds of nutritious dairy products for Chinese consumers. On account of high-speed development of dairy industry, now China has become the biggest market of Fonterra (Fonterra Co-operative Group). Definitely the world is seen as becoming increasingly interconnected as a consequence of political, economic, political, sociological and cultural forces (Wall & Rees, 2001, p.9). Multinational enterprise as Fonterra play a very critical role in international business activity. Fonterra may promote New Zealand’s economic development and also can interactions the relationship between countries and people. For instance, Fonterra bring their high quality dairy products and advanced technology to many countries, so it make a great contribution for the world economic development.
3. Case Analysis
3-1. The key problems in Fonterra
The key problems are how to ensure the quality of Fonterra’s dairy products and how to rebuild the consumer confidence. Although it was just a false alarm, there still existed potential quality hazard in Fonterra. However, Fonterra have paid a heavy price for this incident. For instance, some executives resigned, the criteria for food quality has risen and they have had a crisis of confidence (Fonterra Clostridium Botulinum Incident).