Blackmore's Five Forece Analys Essay example

6374 Words Apr 21st, 2014 26 Pages
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CCIJ 13,4

When an icon stumbles: the Ribena issue mismanaged
Tony Jaques
RMIT University, Melbourne, Australia
Purpose – When two 14-year-old New Zealand schoolgirls challenged the advertising claims of Ribena blackcurrant drink – owned by global giant GlaxoSmithKline – they triggered a sequence of events which led to prosecution, public opprobrium and international damage to an iconic brand. The purpose of this paper is to explore the case and identify lessons for future management practice. Design/methodology/approach – Some of the fundamental principles of issue management, post-crisis discourse and corporate
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Among the fundamental principles of issue and crisis management are to recognize the problem early, to promptly institute a strategic response plan and corrective action and, if necessary, to apologize genuinely and without delay. This case study reviews the manufacturer’s lack of success against each of these principles and its failure to effectively exercise the dissociative defences posited within the concept of corporate apologia. It examines how the giant corporation which owns Ribena mismanaged a seemingly simple local problem and suffered unnecessarily severe consequential damage to its brand and international reputation. A theoretical framework for the case The first fundamental principle to be considered is issue scanning which, as a vital element for early warning, should involve not just scanning the field for possible future risks, but learning from relevant past events. The literature provides many high profile cases of severe brand damage caused by product failures, often where early warnings were ignored or misinterpreted and sometimes leading on to crisis. Examples of such reputational damage would include Perrier’s benzene contamination crisis (Miller and Gleizes, 1990; Barton, 1991), Firestone’s ATX tyre recall (Blaney et al., 2002) and Dow Corning’s silicon breast implant issue (LaPlant, 1993). There have sadly also been many examples of “self inflicted” damage to an iconic brand, such as the disastrous introduction of “New Coke” (Pendergrast,

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