Here is the synopsis of our sample research paper on FONTERRA CO-OP AND BUSINESS STRUCTURE. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
This 3-page paper discusses the Fonterra Cooperative Ltd., a dairy producer, in New Zealand.
Page Count:
3 pages (~225 words per page)
File: AS43_MTfontetwo.doc
Buy This Term Paper »
Unformatted sample text from the term paper:
investor-owned firm? Co-ops are structured so that just about everyone who buys into one (and participates in one) has some kind of
a voice. This means that when decisions are made, everyone involved as some kind of input. A co-op is perhaps the best example of a democracy in business. Unlike shareholders
or investors in a regular corporate set-up that have only a minimal voice in the running of a firm, members of a co-op wield a great deal of power. This
can be seen through the appointment of a board of directors. In a corporate set-up, the board has the majority of the power (though the board is appointed by shareholders,
at least in theory). However, in a co-op, it is the board that reports to the members. This is good, in one
way. However, there are disadvantages to this as well. One of them is a lack of flexibility - when decisions need to be made quickly, it doesnt happen. Before decisions
can be made, all co-op members need to have the opportunity to weigh in. This can be a problem with a global company that requires flexibility and speed when it
comes to action. Another issue is that of the financial structure of the company. The heads of Fonterra are supporting partial flotation.
While this works (somewhat) in corporate structures when it comes to raising capital, in a co-op situation, there are inherent problems with this method; one of which is splitting the
entity even further, and getting pieces of it into the hands of institutions and investors that are more interested in boosting the bottom line, rather than providing quality products to
...