eng

TCC2
Building Brands
The brand is just a badge. It is a name.
- Why do we buy from one company rather than from
another?
- Why do we prefer product A to product B?
- With a strong corporate brand name, a company can sell
a wide range of very different products. However, the real
important thing is what is behind the name?
- The company’s personality
- Its way of doing things
- The set of values that affect all its activities.
What does a brand name mean?
. It is a badge
. A way of creating a global identity
The most important thing is what is behind
the badge.
The brand gives people an understanding
of what the company is and how it treats its
employees and customers. It shows the company’s
personality.

A brand that is already recognized globally is
VIRGIN.
What does the Virgin brand represent?
. Quality
. Value for money
. A different way of doing things.
Virgin does not think about the business as an
individual business, it does not think about a
product; but it is a brand that has grown
historically into really something that people
believe in a set of values attached to it:
- They think of quality and value for money.
- They think of innovation.
- They think of fun, challenge,
competitiveness.
- They think about Virgin doing things
differently.

Virgin achieved rapid growth in a new
market using the strength of its brand. It
used the company’s core competence.
- What is a core competence?
- How is a core competence identified?
There are three fundamental tests:
. The first test is, does it create customer value? Is it
something that is very important in the customer
experience?
. The second test is, is it something that it is difficult to
imitate? Is it something that competitors would have a
hard time duplicating?
. The third test is, is it something that could provide a
gateway to new opportunities? If it meets those three
tests, it is probably a core competence.
An example of a company that really
understands its core competence is Disney.
Disney has gone from theme parks to movies
to retailing to ship cruise lines, now adult
education and retailing.

Disney has a core competence in story - telling
and character development.
The power of the brand is considerable.
Identifying core competencies behind the
brand helps companies to grow their existing
business and enter new markets.

Risk Management
TCC2
Futurists advise public companies on predicting future
trends, emerging markets and risk management.
In this way, companies use current information to
make accurate predictions about the future.
One of the aims of these types of predictions is to
identify risks that may affect organisations in the
future.
However, recent events such as financial crises,
terrorism, diseases and environmental disasters
indicate that companies can neither predict nor
eradicate risk from modern business.
Types of risk:
Operational, financial, environmental and political
1- Operational risks when you buy the wrong raw
materials for your manufacturing site and your site
cannot operate.