BSNS5001 Organisations in an Aotearoa New Zealand Context Assessment 2 Answer Solution PDF | Open Polytechnic

BSNS5001 Assessment 2

Weighting  35% 

Learning outcome

Analyse how bicultural partnerships can influence operational business activities and relationships in Aotearoa New Zealand.

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Task 1: Stakeholders – who’s involved

Requirement

Identify six of Fonterra’s stakeholders (two internal and four external) and label each stakeholder as primary, secondary, direct or indirect.

Add two-to-three sentence explanations for each stakeholder covering:

• their role or connection to Fonterra
• why you labelled them as you did
• the sources you used to identify them.

 

(Word count guideline: 300 words)

Answer:

Fonterra has a diversity of stakeholders whose actions can have an impact on Fonterra's business operations, and who are impacted by Fonterra's activities. In the following, two important internal and four external stakeholders are identified.

1.    The farmer shareholders are Internal, Primary and Direct.

Fonterra is a farmer owned co-operative, which means farmer shareholders own and provide the milk to Fonterra. They are directly related with them, as they give them milk, and Fonterra pays them and returns other value to them. Fonterra recognises that farmer shareholders are an important stakeholder group, and says that it engages with them through its co-operative structure. 

2.    Employees – Internal, Primary and Direct

Employees work directly in the organisation both in terms of manufacturing, management activities, supply and other customer-related activities. They are also primary, direct stakeholders as their work is directly involved in Fonterra's ongoing ability to operate and meet its goals. Employees are an important stakeholder group for Fonterra.

3.    The third group of customers comprises external, primary and direct customers.

Customers are consumers of Fonterra's dairy ingredients and foodservice products and as such have direct business contact with Fonterra. They are key customers as their needs and relationships have a direct impact on Fonterra's sales and revenues. Working closely with customers and developing value through its dairy nutrition business is also a key part of Fonterra's strategy.

4.    Suppliers – External, Primary and Direct

Suppliers deliver food and other services that are required to enable Fonterra to produce and operate its manufacturing, farming and supply chain operations. They are primary and direct stakeholders as their products and services directly enable Fonterra's operations. Fonterra's reporting also acknowledges the significance of the relationships it has with its supply chain in its business operations.

5.    Government and regulators – External, Secondary and Indirect

Government agencies and regulators impact Fonterra through legislation, regulations and compliance requirements that impact the food production, environmental management and employment environment. They are secondary and indirect stakeholders as they are not involved in Fonterra's day to day activities, but may have a strong influence on how Fonterra operates. Governments and regulators are relationships that are important to Fonterra's business.

6.    Māori and iwi stakeholders – External, Secondary and Indirect

Māori and iwi stakeholders have an important relationship with Fonterra given Fonterra's New Zealand identity, land, environment and connection with tangata whenua. As they do not participate in the day-to-day management of Fonterra, but may affect the way Fonterra engages with its social, cultural and environmental stakeholders, they are considered secondary and indirect stakeholders. Fonterra has created a strategy called Haea te Ata Māori to build relationships and acknowledge the value of the contribution from Te Ao Māori and tangata whenua.

Task 2: Power-interest grid – who’s most influential

Requirement

a. Create a power-interest grid that maps each of Fonterra’s six stakeholders (identified in Task 1) according to their level of power (influence) and interest (engagement) in the organisation.

b. Add two-to-three sentence explanations for each stakeholder covering:

• why you placed them where you did on the grid
• two sources you used to support your placement decisions.

You may hand-draw and scan your power-interest grid or create it digitally (Word, PowerPoint or any similar tool). Focus on showing accurate plotting and explanations, not on graphic design. The explanations can either be added directly to the map or included in your main answer document.

(25 marks)

(Word count guideline: 300 words)

Answer: 

Explanation of stakeholder placement

1.    Farmer shareholders – High Power, High Interest: The farmer shareholders wield high power due to Fonterra being a farmer-owned co-operative with farmers being shareholders and suppliers of milk. They are also very interested due to the fact that Fonterra are on their side, and when they perform well, it contributes to them getting a better price for their milk and their co-operative as well.

2.    Learn the technical aspects of customers and high power, high interest: Fonterra is dependent on its relationships and customer demand for its dairy ingredients and foodservice products, giving customers high power. Their interest is also high due to Fonterra's products, quality, sustainability performance and ability to meet customer requirements directly impact on their business; Fonterra regularly engages with key customers including on low carbon dairy ingredients.

3.    Government and regulators – High Power, Low Interest: Government and regulatory powers are high as legislation, regulation and compliance can impact on how Fonterra operates. They are not as interested as other groups because they are not reliant on Fonterra's day-to-day commercial performance, but Fonterra does interact with local, regional and national government on matters related to their activities.

4.    Employees – Low power, high interest: Employees have high interest because their jobs, working conditions and career prospects are linked to Fonterra's performance and working practices. They do not typically have much power on their own to influence organisational strategy, but they do have other forms of influence, like collective bargaining and unions, which can be important in the employment arena.
5.    Suppliers – Low Power, High Interest: Suppliers have a high interest since their products and services are needed in the context of Fonterra's operations and supply chain. There is generally less influence than from the farmer shareholders, the customers or the government, but Fonterra acknowledges relationships with suppliers are important and has implemented supplier engagement and risk-management processes to manage those relationships.

6.    Māori and iwi stakeholders – Low Power, High Interest: Fonterra's activities in Aotearoa New Zealand have significant environmental, social, cultural and economic impacts, and therefore Māori and iwi stakeholders are interested in Fonterra's activities. They do not have direct say in Fonterra's business decisions as do farmer shareholders or regulators, but Fonterra does actively engage iwi, and recognises Māori engagement as an area of importance in its stakeholder and impact work.

An important qualification: The placement is an analytical judgement, the explanations are what make it defensible. The marking schedule clearly rewards placements that reflect the stakeholder's actual power and interest and not merely the placement of stakeholders in the four boxes.

Task 3: Te Tiriti principles in stakeholder relationships

Requirement

Choose two stakeholders from your Power–Interest Grid. For each:

a.    discuss how one Te Tiriti o Waitangi principle (Partnership, Protection or Participation) currently influences Fonterra’s relationship with that stakeholder

b.    propose one realistic strategy to strengthen that relationship in alignment with the same principle, explaining why it would be effective in Fonterra’s context.
Use a different principle for each stakeholder. Support your discussion with credible, current and referenced evidence.

Answer:

a.    Farmer shareholders – Partnership

Partnership is applicable to Fonterra's relationship with its farmer shareholders due to the nature of Fonterra as a farmer owned co-operative. Farmers are not just suppliers, they also play a key decision making role for the future of the organisation and they are its owners. This creates a relationship based on working together and sharing interests. In 2025, the farmer shareholders of Fonterra were given a vote about the proposed sale of its Consumer and associated businesses, and they played a direct role in making important decisions for the organisation. Fonterra also states its business philosophy is to add value for its farmer owners.

An approach Fonterra could take to further build this relationship is to have greater consultation with farmers prior to key strategic and operational decisions being made. This might include regional meetings, and online consultation and planning time where farmers can ask questions and share their opinions in advance of a decision. This would help partnership in view of two-way communication instead of informing the farmers after decision making is done. It could also contribute to trust and better represent the interests and practical experience of Fonterra's farmer owners in the major decisions made by the Co-operative.

b.    Māori and iwi stakeholders – Protection

Protection is one of the principles that can impact on how Fonterra engages with Māori and iwi stakeholders by ensuring that Fonterra is mindful of Māori interests, values, culture, identity and relationship with the natural environment. Fonterra has recognised the need to build stronger connections with tangata whenua, as part of its Haea te Ata Māori Strategy. The strategy is to embed Te Ao Māori within Fonterra's business operations and the three areas are People and relationships, the natural environment and identity. Fonterra values and principles include kaitiakitanga, which encompasses protecting the natural environment for future generations.

A pragmatic approach would be to develop better iwi involvement and consultation when decisions are being made that may impinge on culturally important land, water and other environmental resources. Fonterra could seek the involvement of relevant iwi representatives earlier in environmental planning, and create opportunities to allow iwi concerns and knowledge to inform environmental planning decisions. This would help to advance the Protection principle by emphasising Māori interests and knowledge in the environmental engagement, instead of seeing it as a regulatory obligation. It would also align with Fonterra's current Haea te Ata initiative to boost partnership with tangata whenua and environmental sustainability. 
(30 marks)

(Word count guideline: 600 words)

Task 4: Bicultural partnerships in operational activities

Requirement

Discuss how bicultural partnership approaches grounded in Te Tiriti o Waitangi principles (Partnership, Participation, Protection) influence Fonterra’s wider operational activities and stakeholder engagement. Where relevant, identify multicultural partnership practices that complement these bicultural commitments.
Support your discussion with credible, current and referenced evidence.

(20 marks)

(Word count guideline: 300 words)

Answer:

Bicultural partnerships based on Te Tiriti o Waitangi principles have an impact on Fonterra's work, with the aim of fostering greater partnership, participation and protection of Māori values. A partnership is evident in Fonterra's work on building relationships with tangata whenua and iwi. It is dedicated to improving partnerships with tangata whenua and to embed Te Ao Māori into its strategy, culture and operations in its Haea te Ata Māori Strategy. This can have an impact on the engagement of stakeholders, decision-making and organisational culture through increased and more bi-directional communication and awareness of Māori perspectives.

The participation can affect the way that Māori stakeholders and employees are engaged in Fonterra's activities. One objective of the Māori Strategy is to enhance Māori influence and have a more tangible Māori leadership presence throughout the Co-operative. This can facilitate participation by providing opportunities for Māori voice to be heard in decision making, in the culture and in the relationships within the organisation and with iwi and Māori farmers. Fonterra's strategy also includes the need to include its farmer owners and other stakeholders in the creation of value.

Protection is especially important with respect to environmental and cultural responsibilities. The Māori principle of kaitiakitanga or “care and protection for the environment for the future”, and the natural environment (Taiao) are part of Fonterra's Haea te Ata strategy. These concepts can be integrated with other operational activities such as sustainability, farming systems, manufacturing and supply chain management etc. Actions are also taken across farming, manufacturing and supply-chain operations in Fonterra's climate roadmap.

Multicultural partnership practices can be seen as complementary to these bicultural commitments. Fonterra are international and state their intention to build a diverse and inclusive workforce and engage with iwi in New Zealand and multicultural community groups internationally. These practices will enable the organisation to acknowledge Māori identity and the context within it in Aotearoa New Zealand, whilst respecting the variety of cultures within the employees, customers and communities.

(Total word count guideline: 1500 words)
(Total marks: 100 marks)