How brands can benefit your business
Branding is often misinterpreted as little more than a corporate logo backed by some marketing puff. In this classic 2005 contribution to the AccountingWEB archive, Anne Fairpo explains how branding helps organisations to define their purpose and how they are known and remembered.
All businesses want improved results. All too often, they want them this quarter or, as a long-stop, in the next six months, no matter what.
This attitude encourages an undue focus on efficiency and cost-cutting that have an immediate impact on a company's figures. But this is not a sustainable long-term approach, and can even undermine the fundamental value of the business.
Improving efficiency can contribute to a leaner and more responsive organisation. Reducing costs improves the bottom line, but there is a finite limit to how much efficiency and cost-cutting a business can sustain without damaging the core reason why customers deal with it.
In the longer term, a focus on efficiency and cost-cutting won't differentiate any company from the competition. Firstly, rationalisation is invisible to your customers (or should be) and, secondly, everyone else is trying to do exactly the same thing.
Companies need to think longer term to stay in balance. The requirement for results now is compelling, but that insatiable demand will still be there next quarter, and the quarter after, regardless of this quarter's results. If results this quarter are good, the demand for the next quarter to be better will probably only increase.
The only way to deliver value to shareholders is to create it.