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Strategic Planning For Ribena, A Company In The United Kindom

2568 words - 10 pages

Firstly internal environment, general environment and industry environment analysis are addressed followed by the identification of problems Ribena faced and suggestions on ways it could have handled the situation to avoid legal and reputational damage.
GSK is the parent company of Ribena, it's head quartered in the United Kingdom (GSK,2004). In 2003 Ribena in the UK faced public embarrassment and legal charges for its for Ribena Toothkind. A year later a similar incident happened in New Zealand and the company suffered irreparable reputational damage.
In 2012 GSK has stated that it will increase its focus around its core portfolio and it evaluated options for Ribena a nutritional healthcare products to ensure their growth. In 2013 GSK announced that it has sold it to Suntroy a Japanese soft drink company (GSK press release, 2013).
Abell's frame work
This framework helps in defining the business Ribena is operating in by answering three questions, who is being satisfied?, What is being satisfied?, and How are customer needs being satisfied? (Abell, 1980, p.7).
Who is being satisfied? Ribena since it launched in 1930's it had target British children who deprived of fresh fruits in their diet such as oranges.
What is being satisfied? The customer needs after the second world war was healthy food and nutrition that children were denied in the food they consumed.
How are customer needs being satisfied? this is Ribena's distinctive competencies (Abell, 1980, p.7). Ribena offered it customer segment a "healthy" drink with four times vitamin C as oranges which later became iconic and gained the acceptance of mothers around the world.
Internal environment
Resource based model
This model assumes the each organization is unique by its set of resources and capabilities. The core competencies of any organization if managed correctly leads to competitive advantage which can translate to above average return (Hoskisson et al, 2011).
Ribena's Manufacturer GlaxoSmithKline based in the UK is a pharmaceutical giant, its resources include 96,500 employees and 5% share of the world's pharmaceutical market. (GSK, 2010). Ribena benefited from GlaxoSmithKline's reputation relating to health and this helped the product again customer acceptance. In fact according to GSK Ribena is a nutritional healthcare product. Another resource Ribena and all GSK products benefited from is registered trademarks to protect the products from being infringed (GSK, 2010). Ribena had a sustainable competitive advantage and managed to gain acceptance and customers since its launch till 2004 when their false advertisement and claims where pointed out.

Value chain analysis
Poter's value chain analysis divides the organisation's activities into primary activities and support activities (Grant, 2008, p.135).
Ribena's parent company GlaxoSmithKline primary activities are mainly focused on its core business pharmaceuticals, GSK has three major product portfolio in the consumer...

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