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Strategic Management |

Assessment 1 – “All you need to do is cut wages to save a company” Case Study - SPC |

Sssc |

“All you need to do is cut wages to save a company”

Known as a high quality fruit and vegetable processing company, SPC, also known as Shepparton Preserving Company has been able to stay ahead of the increasingly competitive market in Australia up until today (insert reference). However in the last decade or two there were a lot of complications and changes within this business which led them to the success they have now. As a case study, it will progress through the competitive advantage of SPC, the nature of the strategic direction the company has taken and why have they taken this, the consultative role of management in developing the strategy and the internal measures and leadership/management role in SPC.

The statement “All you need to do is cut wages to save a company” essentially means turning a company around by cutting down on expenses in any type or form. In this sense, it worked out for SPC, when new management, under John Corboy, came into force and started to cut down the amount of employees and their wages. In the end it paid off and SPC is now the biggest food preserving company in Australia.

An assessment of the areas of competitive advantage at SPC:

Product

A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices (http://tutor2u.net/business/strategy/competitive_advantage.htm). The competitive advantage that SPC has is that it has targeted a niche market with high demand for the produce. As being the only food preserving company Australia, overseas producers started putting their product on the Australian market, which gave SPC the competitive advantage as it is 100 per cent Australian owned canned fruit and vegetables, also they are 100 per cent grown and produced in...