Strategic Management – Case of GSK Case Study

The paper “Strategic Management – Case of GSK” is a perfect example of a case study on management. GSK is a company that has been in existence since the 1930s. It is a well-known company in Great Britain and now New Zealand, Australia and several other parts of the world. In 2004, two high school students- Anna Devathasan and Jenny Suo were conducting an experiment testing the amount of Vitamin C in drinks(GSK (2007a). Strategic Management – Case of GSK Case Study.  In this experiment, they discovered that Ribena, a drink manufactured by GSK did not contain four times the amount of Vitamin C that it was purported to contain in the advertisement that had been run on televisions for a period of a year (Food Magazine 2004).

An attempt by the teenagers to write to the company to seek redress on the matter was fruitless. They made a few calls but the reply and treatment from the company were rather rude. The same issue got public attention later and became a major bone of contention in New Zealand. It earned little public attention in Australia. The sales for Ribena in New Zealand went down following this saga (Gregory 2007.GSK Australia was sued, it pleaded guilty to the charges brought against them.

The jury ordered the company to pay damages and reproduce new advertisements correcting the wrongful misrepresentation of facts in the subsequent advertisements (Eames 2007a. As part of the mitigation measures to rebuild the tainted reputation, the company came up with a number of strategies (Burns and Bruner (2000). One of them is the quarantine of Ribena from the syrup so as to safeguard the parent brand. The next approach was to give an acceptable “ explanation” in a bid to safeguard the reputation of the company. Strategic Management – Case of GSK Case Study.

The third step was to give an apologia (Fair Go 2004). The latter was conditional and that it was pegged on the assumption that GSK did not in any way have any intent for wrongdoing. This essay attempts to analyze the case study from a strategic management point of view. It begins by analyzing the steps that GSK would have employed to reconstruct its reputation. The actions that would have been taken by the company have been examined from the moment before and after the legal proceedings.

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The actions have been analyzed with respect to the strategic management theories and practice methods.

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