The paper "Strategic Management of Ribena Controversy" is a perfect example of a management case study. In recent years, the business environment has changed considerably due to stiff competition. As the 21st century progress, globalization is increasing and technology is increasing and, as a result, customers are becoming difficult to deal with (Edmonds 2011, p. 350). This is because they are informed and now ask hard questions. Unlike the previous years, customers now do not purchase anything but quality products after hard questions are answered. Edmonds (2011, p. 353) argues that the information era has also been marked with the change of taste and preference due to exposure to a variety of products.
In the wake of all these issues, strategic leadership has become a key pillar to the running of a modern organization. Strategic leadership influences change which can put the company in line with current changes sweeping every sector of the economy (Fulmer, Stumpf & Bleak 2009, p. 18). Effective leadership is needed to create a proper communication channel not only with employees but also with customers, and formulate strategies which encompasses sound decision-making and risk management techniques that guarantee a company the competitive advantages. In 2004, Glaxo Smith Kline was faced with Ribena controversy after ignoring consumer questions (Jaques 2008, p. 494).
It is a situation which depicts a lack of effective leadership factors such as proper communication, strategic apologia, good customer service, better decision-making skills and risk management strategies. In 2004, two high school girls from New Zealand, Jenny Suo and Anna Devathasan conducted a science experiment to test the level of Vitamin C in Ribena. According to Jaques (2008, p. 397), the test showed no presence of Vitamin C as claimed in the advert by the producer Glaxo Smith Kline that ".. .the Ribena have blackcurrants which carries four times the Vitamin C of oranges. " The girl became concerned about the situation and inquired from GSK through writing, but the response was given by the company.
Additional, they called the company but were rude without their question is answered. After their concerns were no solved, the girls to the issue to consumer program on TV and then to New Zealand Government Commerce Commission which took it to court (Jaques 2008, p.
397). GSK was charged in 2007 with misleading advertising. Based on the case study, this paper identifies and discusses the coherent actions which GSK would have taken to evade the reputational and legal case. The paper will also describe the potential challenges which might have risen in adopting the suggestions and the implications of the suggestions for the management practice on the perspective of risk management. 2.0 The coherent actions which GSK would have taken to evade the reputational and legal case 2.1 Coherent actions Some of the coherent actions that GSK would have taken include building strategic leadership, strategy formulation and looking at the situation at the bigger picture.
The controversy surrounding GSK and Ribena advert is clearly a lack of strategic leadership and its tenets. Bordum (2010, p. 246) contends that certainly the most crucial change senior managers are facing in global companies is creating and implementing strategic leadership which will give direction on the current problems facing their companies. The wide gap between present realities and preferred destination can only be reduced by raising individual competency including creating organizational capabilities (Perrott 2011, p.
23). However, this is what the CEO of GSK never did before the Ribena pops up. Strategic leadership is one which presents a direction and vision for the success and the growth of the organization through communication, good customer service and involvement in decision-making (Parnell 2008, p. 1281).
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