Strategic Management (MGT5STR)
Ribena Case-Individual Case Study Analysis

Individual Paper – Case Study Analysis

Question 1
Coherent actions to avoid the legal and reputational situation
Every organization should concentrate on the ethical issues otherwise it may hamper the business operation and the company also becomes diluted. The moral values of the society should be considered by an organization to continue the business operation. Business ethics is considered as major source of competitive advantages. As Lasserre (2012), Companies that are recognized as ethical organizations are able to attract investment and human capital, retain talent, differentiate themselves in the market and create a perception of being customer- friendly. According to Lynch (2009), Value-based organizations have demonstrated that even so called soft concepts can be extremely powerful. Reputation cannot be bought through money; have to earn. Business ethics is considered to integrate core values, such as, honesty, trust, respect and fairness into strategic management, policy-making, practising strategic management and decision making. Companies are needed to formulate value-based, globally-consistent codes for ethical understanding and appropriate decision making at all levels even as they face immense external challenges (Hill and Jones, 2012). Organization based on strongly-held share value amongst their customer has been able to professionalize and develop their market potential through strong brand loyalty and relationship-building with their constituents. The products and services should rely on the promise done by the organization. There are several cases where the commitment done by the organization does not match with the goods and services provided to the customer. In the case of Ribena, the product did not contain the ingredient according to the commitment of the company. The company showed in the advertisement and in the labelling of the product that the product contains four times the vitamin C of oranges. But it was found in research that the product did not contain such kind of thing. So, ethical issues arose due to doing of such thing and the reputation and brand image of the company were affected. The integrity and trust are required to sustain in the environment. The organization should follow the honesty and true commitment to the public. The relationship between the organization and customers determines the success of the organization.
The effective leadership was required by the company GSK. Managers provide leadership to an organization. Organizational leaders influence the behaviour of subordinates so that they willingly and enthusiastically work towards the achievement of specific target. Strategic leaders manage the strategic management process that designed to help the organization achieve the target. The tasks involved in exercising strategic leadership are typically to anticipate, envision, maintain flexibility and empower others to create strategic change as and when necessary. According to Jones and Hill (2010), leadership at the highest levels of the organization is concerned with performing the task of leadership of organizations rather than leadership in organizations. By leadership of organizations is meant of those tasks that are performed by the top managers. Here, in case of GSK, effective strategic leadership required to perform the action by the top level managers to avoid the legal and reputational circumstances. Strategic leader provides a sense of direction to the organization. The strategic decision is concerned with the shape of the activities of the organization. Tremendous efforts were required to perform by the strategic leaders.
The situation of GSK was contingent. So, contingency approach was needed to follow by the organization. According to this approach, the leadership is related to the situation the leader is faced with.
From the case study it is observed the company GSK was forced to