Ribena

Introduction

Ribena in analysed in a resource-based perspective to determine its strategic inputs - resources, capabilities and core competencies – and how it relates to its parent company GlaxoSmithKline’s mission statement and strategies (Hitt and Ireland et al., 1999). Ribena’s strategies in the past decade, particularly focusing on the Vitamin C controversy in New Zealand on its Blackcurrant Ready-to-drink (RTD) variant, were also reviewed to find out if its efforts result in positive outcomes for the company.

This paper focuses on the Ribena controversy and will aim to identify the key issues of the case. The paper shall recommend, based on theory and concept, a set of coherent actions that GSK may have taken to possibly avoid the legal and reputational situation that resulted from their actions. Potential problems that may arise in implementing these suggested actions will also be tackled. Finally, The implications of these suggestions to organisational and management practice will also be determined from a risk management perspective. ¬¬¬¬¬¬The discussion will revolve on theories and concepts discussed in Mr Michael Burgess’ MGT5STM: Strategic Management 1st semester 2015 class. Additional theories and concepts were used to further support the clarity of the paper’s arguments.

The paper, through the concept of Occam’s razor, shall limit the discussion and analysis to New Zealand, GSK, the Fruit Juice Industry and the product Ribena Blackcurrant RTD for the purpose of keeping the paper’s justifications and conclusions in their clearest, necessary, and simplest form.

Internal Analysis

Based on the GSK’s 2013 annual report, the mission of GSK is “To improve the quality of human life by enabling people to do more, feel better,...

... middle of paper ...

...f differentiation (IBISworld, 2014). Ribena now uses sustainable packaging to reduce its environmental impact to the planet.

Along with these environmental factors, the call to clean up the brand’s image, the strategic directive to focus more on its core competencies and industry conditions make Ribena out of the long term vision of GSK. Citing the need to divest older products with low growth prospects (Kitamura, 2014), Ribena together with a sports drink Lucozade was sold to the Japanese company Suntory Beverage & Food in 2013 (Monaghan, 2013).

Presumably a major reason in the sale of Ribena was the controversy which nullified one of its strategic advantages. The next section will discuss this controversy and will suggest a set of coherent actions that Ribena may have taken to possibly avoid the legal and reputational situation that resulted from their actions.