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Strategic Stars For
Prof. Ranjita Gupta
Bivu Prasad Pal (11BSP0248) Jyotika Nagi (11BSP0420) Nancy Gupta (11BSP0582) Vishal Arya (11BSP1919)
Aligning these strategic stars requires concentrated managerial skills and will. Culture: the organization's values. behaviors. general public and so on. the way employees all through the ranks feel about the company. three elements must be aligned :Vision : Top management s aspiration for the company. This includes all stakeholders. To get the most out of such an approach. .customers. and attitudesthat is. Image: the outside world's overall impression of the company. Each element is driven by different constituency. media. shareholders.Are The Strategic Stars Aligned For Your Corporate Brand? Companies are increasingly seeing the benefit of a corporate branding strategy.
culture.Corporate Branding Tool Kit The Corporate Branding Tool Kit is useful in identifying the key problem areas-the vision-culture gap. uncovering possible gaps between the attitudes of employees and the perceptions of the outside world. The first question deals with :Relationship between vision and culture. is a series of diagnostic questions designed to reveal misalignments in corporate vision. how managers and employees are aligned. that is. and image. The corporate branding tool kit.is management taking the company in a direction that its stakeholders support? . The last set explores the vision image gap .culture gap and image.vision gap. the image. The second set addresses culture and image.
Vision.Culture Gap The Vision. Following are some of the questions? Does your company practice the values it promotes? Does your company's vision inspire all its subcultures? Are your vision and culture differentiated from those of your competitors? .Culture Gap usually emerges when senior management establishes a vision that is too ambitious for the organization to implement.
image gets tarnished. . Regular feedback should be taken. Comparison between what employees say with what customers and other stakeholders say should be done to identify the gap. When there is difference between what company practices and what it preaches. Employees should take care of what stakeholders think about the company’s image and work accordingly. Confusion should be avoided. Healthy interaction between employees and stakeholders play an important role to bridge the gap. Its important to know what outsiders think of your company and the image they associate with your company.THE IMAGE CULTURE GAP Misalignment between a company's image and organizational culture leads to confusion among customers about what a company stands for. Its necessary to identify the image culture gap to maintain a positive image.
Having created an inspiring vision backed up with cultural values. Stakeholder’s expectations should be taken care of. Vision of the company and the image should go hand in hand or the most carefully crafted visions might also fail. corporate managers all too often fail to check their work with their stakeholders. Effective communication of vision to stakeholders should be done in order to avoid any sort of confusion . To avoid this its important to know your stakeholders well.THE IMAGE-VISION GAP It arises when there is misalignment between what image stakeholders have of the company and management’s strategic vision.
This revelation encouraged Lego executives to stop thinking of the company in terms of products-they celebrated Lego bricks-and dare to see themselves as leaders in the business of creativity and learning. a leading advertising agency and found that Lego's image was as strong as those of some of the world's most powerful players. . Its most valuable asset was its image as producer of imaginative and inventive construction toys.Getting the Stars lined Up Example: Lego the fourth largest toymaker in the world. such as Disney and Microsoft. In the mid-1990s. and Lego managers knew they had to reinvent the company. the market for the toys started to decline. First Step (Building its Image): Lego turned to outside experts such as Young & Rubicam.
In 1998 . Pit stops . the Lego brick was named toy of the century by Fortune magazine. Second Step (Bringing vision in line with image): Conducting brainstorming sessions for top managers and people outside Lego. real-time the process. Dream outs . once they are aligned with stakeholder images. It received the "Toy of the Century" award from the British Association of Toy Retailers. and together they have transformed the employee mind-set from toy producers to brand warriors. “Pit stops” and “dream-outs” are activities that align Lego's culture behind the vision. building employees participate in support for the brand in interactive.where The new slogan was -"just imagine. Corporate vision and culture are themselves powerful strategic tools. the corporate brand become a powerhouse for Lego. (Develop an organizational culture): Third Step problem solving."-and a bold new vision statement.where themselves.. Benefits of the corporate brand strategy: 28% increase in the company's global net sales.. employees share their Lego for the dreams vowed to become the strongest brand among families with children company and by 2005. .
What a Corporate Brand Can Do for You 1> Corporate brands reduce costs: Corporate brands make good sense for companies that compete in markets where product life cycles have shortened. 3> They provide a seal of approval: A strong corporate brand lets customers know what they can expect of the whole range of products that a company produces. making it difficult to recover the costs of continually creating new product brands. Unilever & SmithKline 2> They give customers a sense of community: Many customers are willing to pay more for some badge of identification. Ex: Nestle. Ex: SONY A strong corporate brand also helps a company defend itself against outside assault. for ex: Apple's rainbow-colored logo-that makes them feel they are part of a community. 4> They create common ground: Corporate brands whose symbolism is robust enough to allow people across cultures to share symbols even when they don't share the same meaning. Ex: McDonalds .
After M&A activity If you are expecting fallout.When a Corporate Brand Doesn't Make Sense The Gap has three successful product brands-Banana Republic. and the Gap-but many customers are unaware that they're ail part of the same company. especially: If you are a product incubator. Old Navy. Sometimes product brands just make more sense. .
imposing a corporate brand on them doesn't make sense. where frequent international mergers and acquisitions can affect stakeholder comfort. When Danish NKTsold its subsidiary. to Intel for more than $1 billion. overt corporate branding could detract from the selling price if the potential buyers believed that disassociating the unit from its current owner's brand would be costly After M&A activity: In industries such as finance and telecommunications. maintains local brands such as MeritaNordbanken in Sweden and Finland.at least in the short term. Scandinavia's largest financial company. can help ease the turmoil of changing ownership. Giga.If you are a product incubator: If your company's mission is to create and then sell off successful product brands. Unibank in Denmark. customer trust and loyalty areunlikely to be transferred automatically to the new bank owners.andChristiania Bank in Norway. Because NKT's business model is based on selling off other companies in the future. After a bank is acquired. Nordic Baltic Holding. . it holds them under separate names.Maintaining national brand names. many companies will choose to preserve their national brands.
in industries like oil or chemicals where practices can raise ethical concerns or companies face repeated crises or scandals. . Any negative publicity associated with the company will spill over onto all the products it labels with its name or associates with its official symbols. the downside of corporate branding can be steep.If you are expecting fallout: Firms that like to take risks in new markets might not want to bet their corporate brands by associating them with untried products.
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