EFFECTIVE CORPORATE IMAGE MANAGEMENT AS A STRATEGY FOR
ENHANCING PROFITABILITY(A CASE STUDY OF
PHINOMAR NIG. LTD NGWO, ENUGU AND FIRST BANK OF NIGERIA PLC, ENUGU.
CHAPTER
ONE
1.0
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
A company’s product which is the chief media that project its
image. What counts more today is the public postures of management. Its concern
for consumer welfare and its visible response to imperative social and economic
needs. In short, management must concern itself as much with pollution as it
does with profit (Harold. I margins).
Every aspect of business and industry is undergoing rapid changes in
terms of philosophy and technology and there is no more rapidly changing
function of corporate management, then public attitudes and recreations. In the
same vein, the corporate image of any organization has to be steered to change
corresponding. In response to the demands of its over-changing business publics
and environment. Making good products, marketing them aggressively, paying
taxes. It not just enough to maintain a competitive edge. There are even now
economic and social responsibilities that face every business. Perhaps, it
would be necessary to ask, it there any need to engage in corporate image
promotion? Does promotion of same, have effect other returns of an organization?
Are there right and wrong ways to project a corporate image? What is the place
of employee motivation, communication, customer relations, social
responsibilities etc. in the wide gaunt of image promotion programme? And so
on.
Margin H. Harold (1979.7) stated, “Mass merchandising now method of
advertising, increased completion, and government regulators have brought
corporate reputations into public view and cause executives to seek more
favourable reactions”. However, many hard headed business men to have an uneasy
feeling that promoting the corporate image is little more than a vague gesture
of public goodwill. The idea of corporate image however, is not now companies
have done institutional advertising for many years and sophisticated public
relations peoples have long stressed the significance of many kinds of
intelligent efforts in building up a general reservoir or goodwill for a firm.
But, the concept of a corporate image has given much greater meaning to the
effort. The critical importance of v image becomes apparent when consumers
protest, provokes from large organizations series or explanations and apologies
for the faults they are accused of companies must therefore give its public the
same order of priority it gives to finance marketing and research in the table of
rapid social and technological change. Otherwise, it cannot expect to command
public respect and support in the market place.
To live and grow, to command respect and regard, the v image must be more
than a product of public relations. Therefore corporate image promotion should
not left in the hands of the public relation men, but should be the
responsibility of top management and indeed every member of staff. This implies
that the image programme should be part of the over all planning for the
company’s future. No matter from impressive a firms achievement are, they must
be properly presented in the public to acknowledge them. Thus corporate image
planning is an integral part of policy decisions. For some companies, however,
an image programme is part of board planning for greater sales and profits.
This is his fundamental objective of management and all its activities will be
programme to that end.
Aaker, A.A. Myers J.G (1975:138) stated that: it is not exaggeration to
say that a good image is fundamental to the existence of any business
enterprise. The concept of image is often considered to be an important
determinant of long-term sales and profits. Therefore it is reasonable to
consider the use of image as an objective, not only for an advertising programme
but for marketing programme and an organization as a whole”.
When a new product is introduced in the market a respected corporate name
often benefit the unknown product. People are more likely to buy a new product,
if they know and like its manufacturer furthermore, the quality image of a
company’s product may have considerable influence in the kind of new product
the company can market successfully. Infact, scholes, K and Klem, M (1987:85)
see the image of a company as a resource. They identified four types of
resources available to companies. They are physical resources, human resources,
system and intangible resources. Explaining the intangibles, scholes and Klem,
Observed that, many organizations have significant strength in intangible
assets such as “image or brand name”. The value of intangible resource should
not be under rated. Indeed in many service companies, these intangibles can be
the key asset of the company. Potential purchases are often willing to pay
substantial sums of money for this goodwill” underlining their real value.
Finally, in order to gain the support of its publics, the corporate image
shows that management is progressing, mobile, open to innovation, fair to al
and free of dogma and convention. Creating and promoting a corporate
personality effectively is mainly communicating company’s objectives, beliefs,
reputation and achievements to its publics in order to gain their goodwill.
1.2
STATEMENT OF THE PROBLEM
Most organizations, government owned or private owned, small
or large, need effective corporate image to survive in the business environment
for the fact that organizations operate with a corporate objectives, it helds
on organization to take into cognizance the effective corporate image
management as a strategy for enhancing profitability.
This study entitled effective corporate image management as a strategy
for enhancing profitability attempts to determine the way by which the
organizations especially the Phinomar Nigeria Ltd Ngwo, and First Bank of
Nigeria (FBN) Plc, Enugu manage the corporate image of their organization so as
to encourage profitability.
The problem will be discussed under the following heading in the course
of the study.
a.
Inadequate communication between the management and
customers.
b.
Lackadaisical attitude of the management towards effective
corporate image.
c.
Corporate image strategy is not effective
d.
Inadequate care for customers and public needs
e.
The level of inducement of the customers.
1.3
PURPOSE OF THE STUDY
Owing to the fact that every aspect of business is undergoing
accelerating change and no functions of management is changing more rapidly
than public attitudes and reactions, the corporate image itself should be
constantly and effectively promoted.
The image programme pervades the whole management functions more
especially, planning the corporate image is a kind of public stereotype of
impression, i.e. what every body knows about the company. Although, the
consumer or the potential buyer may have sharp and detailed mental pictures, he
does have access to the broad, general stereotype which permits him to make
first decisions. Whether to buy or not, it is these broad stereotype that make
him patronize a particular company. The critical is most likely, the corporate
image if the company, for instance, most times, the consumers cannot
differentiate between similar products manufactures by different companies but
the quality of one on the market to make it distinctively different and much
more desirable. For a company to say in business and command respect and regard,
its corporate image must be more than a product of public relations. It must be
an accurate practice and an accurate picture of what the company is and what it
does. The corporate image of an organization must show that the management is
progressive, innovative and fair to all its public customers.
The purpose of this study is to evaluate the problems of building and
effectively projecting a favourable image in all organizations, but with
particular reference to Phinomar Nig. Ltd Ngwo and First Bank Nig. Plc Enugu, focusing on,
i.
Whether they lay enough emphasis on corporate image
promotion.
ii.
What strategies, if they do, they adopt to promote same.
iii.
Whether such strategies are effective survey would sample the
views and opinions of both management and employees of the company on the above
mentioned problems and with information gathered. Suggest solutions to the
problems. Which would lead to effective corporate image promotion in Phinomar
and First Bank Plc various public customers, suppliers, stockholders, bankers,
potential investors, competitors, government officials and the general public?
1.4
SIGNIFICANCE OF THE STUDY
This study is to
significance to effective corporate image management for enhancing
profitability in Phinomar Ltd Ngwo and FBN Nig Plc, Enugu. And to prospective investors,
customers and management in Nigeria.
This research seeks the relevance of applying corporate image in the
enhancement of profitability.
1.5
DEFINITION OF TERMS
1.
Corporate image: corporate image according
to margins (1970:2) is the sum total of all impression of the firm in the
public consciousness. It is the intangible impression that is different from
each observer. The opinions of the employees, customers, suppliers, bankers,
competitors, government offices and the general public, all combine to form a
corporate image.
2.
Management: According to “Branch”
management can be defined as a process entailing responsibility for the
effective and economical planning and regulation of the operations of an
enterprise, in fulfillment of a given purpose or task, such responsibility
involving.
a. Judgment and decision in determining
plans, and the development of data procedures to assist control of performance
and progress against plans.
b. The guidance, integration, motivation and
supervision of the personnel composing the enterprise and carrying out its
operation.
3.
Strategy: Peter Drucker (1977:95) defined strategy as “a
company’s basic approach to achieving its over all objectives. It differs from
tactics which is a basic approach to be used in carrying out a pre-determined
strategy. A strategy according to Tungen (1975:31) May be in the nature of
either aggressive strategy (The first on the market with an advance product) or
defensive strategy following the leading firm in the particular branch or
absorption strategy (acquisition of advanced technology for further
development).
4.
Profitability: Peter Drucker (1977:89) defined
profitability as a measurement of how well the business discharges its function
in serving market and customers.
5.
Customer: This is a person or
organization that patronize a shop or store, or business, it is hardly to know
who the customers is, this is because buyer may turn to call his under
customers but precisely the customers is he who buy from a shop.
6.
Corporate Planning: This is term denoting a
line of approach or a style of management, an attitude of mind, while uses a
systematize and integrated approach to all aspects of a firms activities, this
idea is to treat the company in Phinomar Nig. Ltd Ngwo and FBN Nig. PLc. Enugu.
Goodcorporate image planning is the secret formular
for those organization that are successful in the world today especially in
Nigeria, by applying corporate planning it will go a long way to Coker the hoop
holes, while problem are identified before they occur.
SIGNIFICANCE
1.
ORGANISATION: Effective corporate image planning help the
organization in restructuring the organization through innovation, job
restructuring.
2.
Management: It goes a long way to
moulding the management and directing them on the way forward especially in
environment of change corporate planning is the only way out by management by
viewing planning as a unified wholes.
3.
Customer: This will enable these
organizations to satisfy the customers with profit.
4.
Social Responsibilities: The management of the two
organizations for their shareholders, the immediate environment, the government
the staffs, the suppliers and customers. Good corporate image is out, if
properly managed to help in expediting the above responsibilities profitably.
5.
Decision Making: An organization without
decision making is as good as no organization was formed, so effective
corporate image is responsible for beautifying the decision making of Phinomar
Ltd Ngwo and First Bank Nig. Plc Enugu.
6.
Management by objective: Effective corporate image
will enhance profitability of workers are allowed to make personal plans, and
because of the time allowed for planning whole effective corporate image
provides thereby enhancing profitability.
7.
Analysis of risk and sensitivity: corporate
planning is to total forecast of future, present and past events which allow
for minimization of risk and sensitivity of uncertainty in the organizations
performance.
It is on this note the researcher comments that the
significance of effective corporate image is a good strategy for enhancing
profitability in Phinomar Ltd and FBN respectively. As a corporate whole,
rather than a collection of departments and on a long-term basis rather than a
short term one, the company is study within its environment, past, present, and
further.
8. Satisfaction: This is the ability
of acceptance of products or services by the customers or users.