Pestel Framework

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The PESTEL framework provides a comprehensive list of influences on the possible success or failure or failure of particular strategies (Johnson, Scholes and Whittington 2008). The political environment (Refer Section 1 in Appendix 01) does not favour Fonterra’s operating environment with heavy control over milk powder pricing. Political figureheads at times lead the public to perceive that multinational dairies are working towards destroying the local dairy industry. With the ending of a 26-year old war within the country there is stability in the political environment which in normal cases encourages foreign investment. However the government’s policies and tight regulations towards foreign investment and trade, creates an unfavourable…show more content…
| | | |and non-fat powdered milk pricing. |Tedious procedures to apply and obtain approval| | | | |for price revisions. | | | |Certain political leaders tend to have a |Additional measures required to improve brand | | | |negative impact on general public’s |image and reassure existing consumers of their | | | |perception towards Fonterra as a |selection. | | | |multinational company. | | | | |No price control over other dairy products| | | | |like yogurt. |Ability to source fresh milk
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