The importance of a good corporate image

Obviously, each of the various stakeholder groups is likely to have a somewhat different perception of the corporation because each is concerned primarily with a different facet of its operation. Similarly, both employees and the general public have an interest in the overall prestige of the firm and the reputation of its products.

Ideally, also, the two will correspond. But the overall image is a composite of many thousands of impressions and facts. Ideally words and actions are always closely linked in building or repairing the corporate image. A company may be highly regarded on Wall Street but may be disliked on the Main Street of cities where it has closed plants.

The "image" is what the public is supposed to see when the corporation is mentioned. In the absence of active efforts, corporate image "simply happens": The process continues in many ways: A company may be valued for providing very low prices yet disliked for its employment practices or indifferent environmental performance.

In the internal filed, companies can attract better employees, generate innovative and motivated environments and team building.

The theory of the corporate image holds that, all things equal, a well-informed public will help a company achieve higher sales and profits, whereas a forgetful or poorly informed public may come to hold negative impressions about the company and may ultimately shift more of its patronage toward competitors.

Myth, Paradox, and Reality. Change, Strategy and Corporate Identity. For example in the middle of an accident, disaster or important trouble, the market and the stakeholders will believe you if the company has a good corporate image, but if the company has a bad reputation the problem can multiply, expanding the damage and potentially influence the profits.

In a competitive business climate, many businesses actively work to create and communicate a positive image to their customers, shareholders, the financial community, and the general public.

Some of the principal sources of corporate communication include company and product names and logos, formal statements mission statements, credos, codes of ethics, annual reports, advertising copy, and company slogansand behavior during important events.

These events encompass scheduled events such as open houses and anniversary sales as well as unscheduled events such as lawsuits or negative press coverage. In between the potential problems and damages in repairs costs, legal costs or image costs, the brand damage could equates to a serious opportunity cost, lost sales and market share, drop putting the company in jeopardy.

Inthe company sold almost 9 million cars, while GM only sold 8. Suddenly every aspect of the company that had been admired and lauded—its audacity, energy, profitability, innovativeness, entrepreneurial spirit, and so on—took on opposite and negative connotations.

Corporate image is in the eye of the beholder—the impression of the overall corporation held by its several audiences. Thus, if customers develop a negative perception of a company or its products, its sales and profits assuredly will decline. In the personal as in the corporate case, the image should match reality.

Furthermore, in pays attention to consistent self-presentation in the look of its facilities. Good management implies ensuring that all spokespersons for the company say the same thing in the same way for a consistent message.

They employ the methodology of marketing surveys used both in polling and in support of advertising.

The Toyota Accident: The Importance of a Good Corporate Image

Communication can include almost anything the company does, from the way telephones are answered to the involvement of company employees in community affairs.

The cultures, the core values and believes, how friendly or formal are the employees, even the building or furniture is what the organization is, the called corporate personality. The most important is related with uniqueness or how companies differentiate one of another, the consistency over time, how the image that is projected fits the reality, the originality of the brands and finally how well this image adapts to different situations and markets.

After all, he notes, a good corporate image can take years to build and only moments to destroy.

CORPORATE IMAGE

As a consequence, the business will enjoy rapid feedback from the public when it begins to make mistakes or has some bad luck. Nevertheless, these agencies have considerable discretion in how they interpret and apply the law.

The company went through a financial scandal in the late s; its former chief executive and others were convicted and jailed. Expert advisors to the corporate world, such as Roger Hayward writing in Accountancy Ageemphasize the need for consistent follow-through—so that employees become "a vast army of goodwill ambassadors.

Retrieved on August 19, from http: The relevance of a well-managed corporate image is that allow firms to build a corporate reputation. The principal stakeholders with which most large corporations must be concerned are: Corporations, of course, also rely on the much "harder" measures such as sales and stock performance.

Corporate identity is the reality of the corporation—the unique, individual personality of the company that differentiates it from other companies. Operations, the fourth and final component of corporate identity, is the aggregate of activities the firm engages in to effect its strategy.

A profitable company that, nevertheless, exhibits huge gyrations in earnings will fare worse:Never allow your reputation to ruin your business' success.

Know the importance of good corporate image and what it can do to fuel your company's development. CORPORATE IMAGE - WHAT IS IT? CORPORATE IDENTITY The way in which an organization presents itself Symbols Communication Behavior Referred to as Corporate Identity (CI) Mix Personality manifested through this mix CORPORATE IDENTITY MEDIA Product Price Logos Name Stationery Brochures Signs Visit cards Buildings Uniforms.

After all, he notes, a good corporate image can take years to build and only moments to destroy. IMPORTANCE OF CORPORATE IMAGE Several factors have contributed to the increasing importance of corporate image in recent years.

Five reasons why you should have a Good Corporate Image: "Bad publicity is still publicity." Such statement is one of the most common yet dangerous cliches ever.

The Importance of Corporate Image

This principle applies to. The single most important factor in the corporate image is a company's core business performance; performance, by definition, includes financial results. Dec 26,  · The Toyota Accident: The Importance of a Good Corporate Image Posted by Martin Meister ⋅ December 26, ⋅ Leave a comment Filed Under business, Corporate Image, General Motors, marketing, Toyota.

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The importance of a good corporate image
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