Online Reputation Management Strategic Analysis model
BEYOOONLINE.COM 1. Strategic Analysis concept 2. Definitions of our Strategic Analysis 3. Reputation & Risk 4. Reputation & Risk II 5. Trust & Reputation 6. Trust & Reputation II 2 Online Reputation Management Strategic Analysis Table of Contents 7. Reputation, Trust & Expectations 8. The Reputational Dimensions 9. Successful Reputation Management means 10. Successful Reputation Management Means II 11. Q & A
BEYOOONLINE.COM 2 Online Reputation Management Strategic Analysis 1. Strategic Analysis concept The analysis part consists of going through all the key findings, feedback and identified concerns that are being expressed online. Once we have learned what information can be found online about client’s practice and expertise, we can then start our Strategic Analysis: Definition and concept: Strategic Analysis is: ‘... the process of conducting research on the business environment within which an organization operates and on the organization itself, in order to formulate a strategy.’ BNET Business Dictionary…’ ‘... a theoretically informed understanding of the environment in which an organization is operating, together with an understanding of the organization’s interaction with its environment in order to improve organizational efficiency and effectiveness by increasing the organization’s capacity to deploy and redeploy its resources intelligently.’ Professor Les Worrall, Wolverhampton Business School
BEYOOONLINE.COM 3 Online Reputation Management Strategic Analysis 2. Definitions of our Strategic Analysis… …often differ, but the following attributes are commonly associated with our approach: 1. Identification and evaluation of data relevant to strategy formulation. 2. Definition of the external and internal environment to be analyzed. 3. A range of analytical methods that can be employed in the analysis. BEYOO ONLINE examples of analytical methods used in strategic analysis include: SWOT analysis PEST analysis Porter’s five forces analysis Four corner’s analysis Value chain analysis Early warning scans War gaming
BEYOOONLINE.COM 4 Online Reputation Management Strategic Analysis 3. Reputation & Risk A corporate reputation is a cognitive representation of a company’s actions and results that crystallizes the firm’s ability to deliver valued outcomes to its stakeholders. When these expected outcomes are not delivered, the damage to the company’s reputation manifests itself in impoverished revenues, decreased ability to attract financial capital, and reduced appeal to potential customers and current employees. These negative outcomes translate into lessened economic returns and shareholder value. The fluctuating value of the company’s reputation has been termed reputational capital and calculated as the market value of the company in excess of its liquidation value and its intellectual capital. It constitutes the residual value of the company’s intangible assets over and above its stock of patents and know-how. A company’s reputational capital is therefore the value of the company that is ‘at risk’ in everyday interaction with stakeholders. Reputational capital fluctuates in the equity markets as stakeholders convey or withdraw support from the company.
BEYOOONLINE.COM 6 Online Reputation Management Strategic Analysis 5. Trust & Reputation Trust = the most important action resource of modern societies Social action presupposes being able to trust that our interaction partners behave in the way that we expect How does trust in our interaction partners arise? A) Through personal experience B) More importantly: by “recommendations” = reputation judgments Reputation = Recognition of trustworthiness !
BEYOOONLINE.COM 7 Online Reputation Management Strategic Analysis 6. Trust and Reputation II Reputation judgments about our interaction partners determine our decisions, for instance when… …we need a lawyer, …we entrust ourselves to a doctor, ... we make a decision about a product, etc. We let ourselves to be guided by such reputation judgments, because it saves us time and money
BEYOOONLINE.COM 8 Online Reputation Management Strategic Analysis 7. Reputation, Trust & Expectations ReputationTrustExpectations Reputation creates trust Trust presupposes that expectations are met But what expectations must be followed?
BEYOOONLINE.COM 9 Online Reputation Management Strategic Analysis 8. The Reputational Dimensions Every corporate or individual must prove his value in exactly 3 reputation dimensions! 1. Function systems Dimension 2. Norms & Values Dimension 3. Emotions Dimension Succesful in performing tasks? A good citizen? Having a distinctive and fascinating identity? 1. Functional Reputation 2. Social Reputation 3. Expressive Reputation
BEYOOONLINE.COM 10 Online Reputation Management Strategic Analysis 9. Successful Reputation Management means… In the functional dimension To serve the objectives of the company in a competent and successful way … and to do so over the long term – and not shortsightedly! In the social dimension To observe ethical and social standards … and not only when the license to operate is about to be withdrawn! In the expressive dimension To stand out sharply from the competition with a distinctive profile … and that means not to follow every market trend in an opportunistic way!