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Balancing Competing Interests: The Case of SPC Ardmona

Introduction

Background

SPC Ardmona is an Australian based company traded as SPC, Shepparton Preserving Company.It is currently owned by parent company coca cola Amatil that specialises in large-scale fruit packaging. It is the largest current producer of premium packaged fruits and vegetables in Australia, accounted for processing 150,000 tons of fresh fruit and tomatoes from its proud supporter of Goulburn Valley community. However challenging economic conditions had led to the contraction in output of SPCA. It started in 1990 when Australian food industry had faced a decade of significant difficulties. Firstly due to consumer change in taste and preferences to freshly produced fruits and secondly due to increase in overseas competition (Hiscock, 2015).

Dispute

Many other factors affected SPC such as its export market share in Canada who switched its import to the United States from America. High-interest rates and recession worsened the situation leading to the closure of most businesses in the sector resulting in a whopping loss of 2.6 million dollars by SPC. Such a huge loss discouraged the stakeholders leading to the election of a new board. The incoming board contracted KPMG Peat Marwick to review its affairs and make necessary recommendations which were to be acted upon by the management. As a result, some of the actions taken by the company included reducing permanent workforce, the closure of two off-shot loss-making business, termination of joint venture business and pay –less and re-staffing. The banks were still not contented with such 

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