Abstract
This case study research report aims at the analysis of the SPC-Ardmona case through the perspectives of motivation. Literature review is provided to gain an insight into the area of motivation, and some of the models in which motivational factors are articulated. From the review, intrinsic motivation is a key to the prolonged development of competitive advantage. Nevertheless, extrinsic motivation acts as a foundational support for the development of such intrinsic motivators.

The report investigates the nature of the SPC-Ardmona enterprise agreement in 2012 in relation to its motivational capacity upon employees. Findings suggest that the agreement relies heavily upon extrinsic motivators through financial rewards to motivate employees. Nevertheless, intrinsic motivation is ignored, and thus prevent the ability for the employees to gain motivation. Maslow’s hierarchy of needs and Herzberg’s motivator-hygiene theories are applied in this instance to evaluate the advantages and flaws of such application of extrinsic motivation within the agreement. Furthermore, the report suggests that development of intrinsic empowerment of employees is a key factor in allowing greater productivity and competitive advantage to be developed.

Finally, the report concludes that the enterprise agreement is not the ultimate cause of SPC-Ardmona’s performance failure. However, the cause can be attributed to the failure of unions and management in understanding the needs of the employees, and the requirement for intrinsic motivation within the organization.

Introduction
The SPC-Ardmona case highlights the importance of applying effective managerial practices and policies within an organization, in order to remain sustainable and competitive in the face of market volatility and increased competition. Although the concept of motivation and its inherent impact