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Branding as a strategy: New forms of Decision-Processes

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1 Branding as a strategy: New forms of Decision-Processes
To Brand or Not to Brand? Trade-offs in corporate branding decisions. Written by: Jennifer J. Griffin, The George Washington University, Washington, DC. Presented by: MBA International Business Students IIFT-IFM Tanzania (2008/2010 intake). Group 1.

MBA IN INTERNATIONAL BUSINESS. INTERNATIONAL BRAND MANAGEMENT GROUP 1 MEMBERS. Samson Akyoo Enna Victor Nuhu Suleiman Mwete Amisi ALI Edmund Katumbo Anzuruni B. Malisawa

3 INTRODUCTION Organization Information & communication Technology
Globalization . Cross- borders operations Organization . Brand Manager - Critical decision-making External & internal environment Information & communication Technology Firm’s visibility & increased competition

4 Introduction cont…. Today’s organizations operate in a competitive environment due to increased globalization and dvpt in technology. Firms can gain competitive advantages by creating and maintaining a strong corporate brand within and outside national boundaries. Needs for effective decision-making to maintain better firm’s visibility and response to challenges.

5 Introduction Cont…. Activities (functions) such as marketing, sales, procurement, etc.. Should be well managed and coordinated to add value to corporate brand Brand managers need to analyze and understand corporate branding strategy typology and before creating trade-offs in corporate branding decisions and decide whether to brand or not to brand examine internal & external complex organizational environment.

Who are we? How do we compete with our corporate brand? Conflicts Organizational Pressure/ Internal factors Business exposure Top management philosophy Decision Maker/Corporate Branding decisions Strategic decisions Operational decisions. Stakeholder’s pressure/External factors Environmental uncertainty Institutional environment

7 OBSERVATION These 2 Qns portrays visibility of the company, employees & brand; 2 Categories of branding decisions: Strategic: (transform organization to its environment and affected by multiple dimensions such as product mix, culture, geographic and customers)- economic & non-economic dimensions. Operational: D2D tactical activities influenced by information flows and organizational structure to enhance brand acceptability.

8 Observation For a brand to gain good response the company should engage in public/social policy debates; eg. Coca cola kwanza green initiative in Arusha, Kilimanjaro sponsorship to Simba&Yanga, Vodacom sponsorship to Taifa cup, IPP v/s Mbagala events. etc… Identify and maximize fit btn organizational internal capabilities v/s environmental factors

External factors: Environmental uncertainty- corporate branding should mitigate these variables that are beyond company’s capabilities. institutional environment Institutional environment: Brand as paper over of the realities about the organization. Internal Factors: Business exposure:- Resources specialization Top management policy: Management of uncertainty and dependencies of the company.

Corporate Branding Strategies can be differentiated by their internal and external decision-making constraints and depends on how a firm actions and organize itself. 4 corporate branding strategies: Discretionary Branding: stable environment & centralized decision-making structure, minimal changes and limited differentiation. Eg. Industrial firms with industrial clients no need for great community commitment. Dispersed Branding: stable environment, low uncertainty, decentralized decision-making- local decision makers influence decisions.

11 4 Corporate Branding Strategies Cont….
Definitive Branding: High uncertainty, decentralized decision-making, unstable political economies, requires specialization and great knowledge. Eg: Franchise Discrete Branding: Complex environment, centralized decision-making for some products/service, special branding for some products/service different from corporate branding. NOTE: Any category of branding may involves a combination of characteristics but the dominant is chosen. Eg. Discretionary may involve dispersed, discrete or definitive The managerial implications of corporate branding is to formulate and implement strategies that best the changing environment while understanding the advantages and disadvantages of the decision-making structure of our own organizations.

12 Conclusion A well managed Corporate Brand can: Reduce inefficiencies,
Justify firm’s legitimacy, Enhance resources Corporate brand can add value to the organization if the firm integrate its internal and external constraints with its capabilities to mitigate them through both strategic and operational decisions Here are the responsibilities for the boundary spinning manager/brand manager.

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