To discuss material essence of what makes the company, its corporate purpose. Part of the intangible we will of its symbols. Both form part of a company.
A holding to a central object for which it is born. And the success of that object that may develop after the company in that sector or in others. It takes years to be successful in the industrial sector, there are other areas where a technological advantage can make that success is fast, but in the traditional world of producing physical products to be successful means to conquer the market, after the other, increase the range of products, innovate, discover, create, beyond the economic cycles as well as possible, diversify if the market is saturated and so on. Years and years of consolidation and growth, not that periods downgraded.
When a company is "focused" in what he has always done, in what was his management, in what has invested in innovation for years, is unlikely to be sent to whores of a CEO or different. Concentrating focus, to focus, concentrate resources. Because ultimately this is what we speak of resources. The resources generated should be partly reinvested partly redistributed among the shareholders. Have resources means strengthening the company.
The problems come when you always want to diversify, and it was a good diversification in their business, vertical, the more difficult it is when you want to attack other areas, horizontal. At the end control the whole chain of a sector is a logical process of integration and exploit fully the opportunities shop. If this vertical integration is done in this regard can only be beneficial for the company. The verticality, for their way of life involves trade interrelations between various companies participating from the same shareholder. When these interrelationships are guided by a hand only if there are two pockets and a trouser. At the end of a profit and spending another remains in the same trousers. This works if it is headed if managed in terms of the exchange market. Just so you can find efficiencies.
The process is rotten when there's more centralized management of the group and who is dominant over the other implements to make profit at the expense of price and service level of the market. What happens is that a pocket is filled not, the other will pit more and pants are shorter. What happens is that the Group becomes inefficient, and the central business finances all other vertical business, when what should he be benefited, the business center. It thus produces a double effect: on the one hand a spolpamento resources from the central business impoverishing; the other is an inefficiency in what compared to competitors who Avoca in a loss of market.
Then the circle is well-party to go down and down. Why? Because every time the price they pay the business center is higher to cover the inefficiencies of vertical business, the spolpamento resources is higher, the inefficiency in business Translational upper center, the gap with its major competitors, the resources available to focus in business Central and the lower end chaos and destruction.
Ultimately sell all the pieces for vertical focus in the central business.
But the worst is to come is when one wants to make a strategy in the form of a cross, vertical and horizontal. The possibility of ending up like the strategy, namely crocificato are many. And the speed to get there is very high.
A strategy of vertical diversification is already difficult because it means putting together many pieces, the advantage is that more or less the job you know. Instead of a strategy of horizontal diversification, to seek new areas is outside of what the company has done for years. Doing so, it means completely changing the "focus" of the company. It means that the management will focus on other things, that devote less time to what was the business that has enabled this change of strategy. It means that the resources generated by the business center is devoted to acquisitions of other companies renovations.
To do so ambitious strategy means that this company not only has to be in a dominant position in its field that allows them not to suffer the economic cycles or new intervening in the market. It means to create unlimited profits for assuming other companies and the market shocks that these same companies will be submerged. It means to have balls of steel.
Unfortunately, a strategy of this kind can only be in the hands of one or two companies in the world. Want to imitate most often means having to resell what you bought, and in worst cases, there is always the worst of cases, sell the business center, in whole or in part. As explained earlier, the drainage of money is all that is that too little time is not spent on the business center, which recover what has made the competition is unattainable and will result in brine.
The essence is the material basis of a company, consolidate, to make it grow, expand, that is what has happened. Why venture beyond when it was still not dominant or the danger of losing the dominant position is great? Consolidate and grow and grow.
But there is another essence, is what I call intangible, that is not linked to the product or service covered by the company, but one that identifies. I have always given a great emphasis on this aspect intangible, to what consumers recognize that the company beyond the product, beyond communication. Beyond the product and communication because these are very attached to the new desires of consumers, let's say not very attached, must be absolutely related to succeed. So the product evolves and how to communicate evolves according to the different lifestyles of consumers, countries. Instead, the logo is what the company is pursuing for years, is what it is. And what makes naked between company and consumer, is the intangible essence of a company. The products will change more or less quickly, communication also, and a consumer today can not remember a product of thirty years ago, what we need is to have in front of a product suitable for him and the knowledge of an identifiable logo a brand that has sent emotions.
I do not want to talk about Coca Cola, Google, Microsoft, Toyota, to ... think about the many brands which is tied to a logo. A logo is the essence and that endures over time, the years pass and the logo is always the same, a little more refined, rounded, colored according to the fashion, but essentially the same. Keep the roots, graphic symbols contributes better than spending millions in advertising to consolidate the products of that brand.
Leave the mark and slowly consumers abandon your products. Ever think your product to better brand image. At that point one must react and reinforce the brand. It does not order the products. Comply sell, not despite the brand image and sales difficulties that face these deviate be helped means more bread for today and hunger for tomorrow, then fall and fall.
Take a brand, fattene after another for your products, usatene after another for your sales network, after usatene yet another part of your products and so create such a confusion in consumers to abandon the product. The consumer needs certainties and receive emotions. For the companies that work for the future, work on trademark, logo, that is sacred, not to change any moment, do not use any way.
Take a company that makes the one described earlier. Can only lose and lose market. But you can react is not an eternal sentence. And it can be done. What does it take?
We want to start with a search for what it is and what you want to be as a company, it defines what is the purpose of what we want to convey in the coming decades, a logo should last at least a decade for the integration into the people. After finding different solution from specialist firms. Once you have, is to test on consumers goal of our products. They break down this research, we made the changes leaving the perception of them and proceed to the final logo. Then, as this is a historic event for a company, is his DNA scennificato, you must make a strong launch in the company. Later outside and make sure that the rules of use of the logo are clear and making the exchange palate of the previous logo on all sides.
It does not seem complicated, it seems that no company can do it. It takes only rigor in what you want, listen to the recipients, rigorous in its application. Be! Some people in this can contribute to sink a company.
Gathered around the management company for the event, linked by video all countries with their management of all countries in the world, what is still known, who is about to get the new day. Prepare the first day all staff to say that is about to get a new day, a historic change, a step more for business success. Dittel that ended the confusion that now is the DNA together, that we have found again, already done work agencies, architects to be ready for the day time D H. Let it reaches this time, create the necessary pathos, hold the secret looked at the most. The meeting began with speeches access, strong, the past is over, you switch to the new, to success! Discover the logo! You like it or not, applaud, greet the new born. In the end the important thing is not whether you like it, the important thing is that the process was rigorous and that is what pleases consumers.
I have put into the atmosphere? Close your eyes for a moment and thought at this ceremony, more or less spectacular in form, but strong emotion because there is something that will accompany us in years, and we were there, at that precise moment of birth and rebirth.
Calling all managers scenario because Wrap the new logo, why do you see all the other colleagues in the world, to certify that we are all together behind this birth. Finite access with other speeches, a good buffet and work. To work to convey to your employees good nova. Made the small ceremony, describe the new logo, what we say, what it means, the commitment to change quickly the old ...
Begin to move those who must move in the coming days to transform what is in your skills. Let go a week is the new logo do not see it inside them outside. They start the first noise, maybe the logo came not so good, maybe we have analyzed all the consequences, and perhaps maybe.
Sink the logo and leave things as before, with the logos of confusion. So sink the morale and motivation of your employees, so they understand that they are not governed, that are only meat cannon! So destroy the company. But it gets worse, I have already said at the beginning of this chapter. It gets worse, because this confusion may be those who invent yet another logo, and without it nothing so much ceremony, he does leave one day for each other, and this time out. Does not care about them also to explain why in that wonderful logo is no longer there. Ago and that was it.
So before they had understood nothing inside, now we create more confusion outside. Bravi! There is no need for competition we face life difficult, there is the do alone.
Miss these essences, play with it and you will destroy a company.
