Fonterra Incident in the International Business Environment
Autor: hanyu • August 4, 2015 • Coursework • 2,666 Words (11 Pages) • 1,157 Views
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IBUS 201 Individual Assignment 2 Cover Sheet
Fonterra Incident in the International Business Environment
Abstract:
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 reasons for that will be involved as well. Last but not least, there will be some implications for companies and managers if they suffer from a similar condition in international business activities. Overall, the report will indicates the failure of Fonterra associated with contamination and primarily analysis how to deal with such issues in international business environment.
Name: Hanyu Li
Student ID: 300347238
Course Coordinator: Dr. Yang Yu
Word Count:
Date Submitted: 05/02/2015
- Introduction
International business environment contains various kinds of aspects such as society, economy, politics, regulations and technology. The significance of international business environment for firms is obviously that the environment can affect how a business operates, can have prominent effects on a firm's success and productivity (The Environmental Factors That Affect a Business). Trading across national boundaries creates jobs, increases sales, balances periodic fluctuations and provides products and services at the same time (The Importance of the International Business Environment). As for the case of Fonterra incident happened in 2013 because of the clostridium botulinum, which had a seriously negative impact on Fonterra.
The intended learning outcomes of the report from Fonterra we can obtain the importance of corporation social responsibility and ethnic behaviour and ready to know how to deal with such problems in the similar situation. Additionally, other implications for the firms will be mentioned about in this report.
- Case presentation
2-1. Fonterra and the case for analysis
Fonterra is a global, co-operatively-owned company with its roots firmly planted in headquarters Auckland, New Zealand’s rich land, which annual sales up to 8 billion dollars. It is the biggest company in New Zealand, the sixth dairy producer all over the world as well (Company Overview). In August 2, 2013, Fonterra said that one factory detected clostridium botulinum in the dairy products, which affected many companies over the world. On that night, State Quality Inspection Administration requested that all importers recall contaminated products immediately. It had an enormous splash in dairy industry by globalization countries and even around the world. But finally Fonterra products were proved to be safe (2013 Fonterra recall, 2014).
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