Critical Analysis of SPCA Case

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Introduction
SPC Ardmona (SPCA) is one of Australia’s time-honored food companies, dedicated to supplying packaged fruit and vegetables. The Victoria state government recently made a decision of assisting struggling SPCA with $22 million to bail it out of the dilemma. It has been controversy over the rationality of this decision since the date on which the decision was released. This report critically evaluates the SPCA’s bail out case by using triple bottom line model, and delivers an opinion that SPCA was worthy of the investment from government. A detailed case study is summarized in subsequent section, followed by evaluation from perspectives of economic, social and environmental, respectively. The analysis is emphasized on economic aspects by adopting Porter’s Five Forces Model to discuss that the bail out investment is economically rewarding. The final conclusion is also given in the end of the report.

Case study summary
Founded in 1921 and taken over by Coca-Cola Amatil in 2005, SPCA is now Australia’s largest manufacturer of packed fruit and vegetables with five well-known subordinate brands (SPC Ardmona 2014). One of the brands, Goulburn Valley, was named after the region in which it locates its major manufacturing and distribution base in Victoria (SPC Ardmona 2014). SPCA has been facing recession recently with declined earnings and carrying values. According to Coca-Cola Amatil Annual Report (2013, p. 1), the net profit in financial year of 2013 reduced by 82.5% mainly as a consequence of the loss in SPCA.

SPCA blamed its fail in operation to appreciated Australian dollar, expensive labor and increasing competition from imported cannery products (Coca-Cola Amatil 2013, p. 2). The majority of the imports from countrie...

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SPC Ardmona-Our Growers 2014, SPC Ardmona, Victoria, viewed 9 June 2014,

SPC Ardmona-Our Rich History 2014, SPC Ardmona, Victoria, viewed 7 June 2014,

SPC Ardmona-Who We Are 2014, SPC Ardmona, Victoria, viewed 7 June 2014,

The Sydney Morning Herald 2014, ‘SPC Ardmona signs $70 million deal with Woolworths’, The Sydney Morning Herald, 11 March, viewed 9 June 2014,

Willingham, R. 2014, ‘SPC future secured after Napthine government tips in $22 million’, The Age, 13 February, viewed 8 June 2014,

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