CONTEXT

Agridex Industries has grown out of the amalgamation of more than twenty small-scale producers of pork. Originally, each of the companies operated independently, and established its own standards and competitive methods. Five years ago, in the face of global competition, three of the companies amalgamated to establish a competitive scale. They had the right idea, but the wrong scale. Within another year they sought additional investors, and began to accumulate a number of small pork production companies. Within four years, they had grown to eight times the scale they had originally anticipated.

During this period, there were considerable changes. Some of the buy-outs of smaller companies were hostile. Some of the newly acquired production capacity was not needed, and some was plainly in violation of the environmental standards of the community. Although the company made the right competitive moves and gained considerable market share in the growing Asian market, it came under scrutiny from environmentalists, residents near facilities, and government agencies.

SITUATION

Agridex is consolidating its pork production facilities into three centres. Each one will be larger than any previously existing facility in the country. The application for the development of the centres will require approval for water withdrawal and for effluent management.

• Nearby residents are afraid that their quality of life will be harmed by water and soil pollution and by odours.
• Environmentalists are concerned because this proposal looks like the beginning of mega-production agriculture centres that will threaten the balance of nutrients in many watersheds.
• Others in the industry are concerned because this development may disrupt traditional lifestyles, and may create competitive imbalances and loss of employment.
• The owners of the company feel that they are already meeting what ought to be required of them and that their proposed plants include the best possible facilities and waste-management processes.
• Government standards had not anticipated facilities of this order, and regulators are concerned about the precedent they may establish.

Agridex is playing a winning hand in Asia, but stands to lose millions if it cannot get the new facilities developed within two years. Its position in the Asian market may be jeopardized, and the ongoing costs of the twelve locations it currently operates are too high.

QUESTIONS

1. What communication strategy would you adopt for the stakeholders during Stage 1 of the decision process?
2. What communication strategy would you adopt for the stakeholders during Stage 2 of the decision process?