Page 4: The challenge
Akzo Nobel currently has 27 ‘autonomous’ business units each with its own distinctive culture. Increasingly, however, units are developing a stronger association with corporate branding. The organisation gains a strength from the sum of its parts working together. The corporate brand is not an exclusive property of the Board of Management or corporate headquarters - it is shared by all parts of the organisation. The challenge facing the business units is to use the corporate brand to enhance their own business.
Following a survey of America’s most admired companies, Fortune magazine stated:
“You won’t find it on the balance sheet...if you ask the wizards on Wall Street how it figures into a company’s net worth, be prepared for some mighty blank stares. But more and more companies are now coming to realise that when managed correctly, a good name can be their most valuable and enduring asset.”
Strong companies with strong names are using well established corporate brands to help expand product lines, increase market share and move into new businesses and markets.