Business reputation is the level of trust of employees, customers and partners in the company. The indicator is formed from the difference between the value of the organization and its own capital.
Business reputation of the company
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Business reputation is the level of trust of employees, customers and partners in the company. The indicator is formed from the difference between the value of the organization and its own capital.
From an economic point of view, it is an intangible asset associated with the concepts: trademark, copyright, license. Proper management of the brand image and its reputation creates the right impression, increases awareness and eliminates the negative about the company. The appraisal starts from the day the business is opened and is applied equally by individuals and legal entities.
Various indicators are used for evaluation. The qualitative indicator is calculated using ratings compiled by experts or sociological surveys. Quantitative – using the method of excess profit or sales volume.
A complex image is formed from different parameters. The indicator “business reputation” can be divided into two types:
Positive. Trust in the brand. The company has clear competitive advantages related to profit, capital, employee skills, market position.
Negative. The organization is not economically stable. There is no loyal audience, the quality of goods does not meet the expectations of consumers.
To improve the result, it is recommended to do PR, reputation management on the Internet, the media. A business with a positive image allows you to attract customers, increase the effectiveness of marketing campaigns, and increase the overall value of goods or services.
Read more: Four myths about implementing business strategies
Why evaluate a parameter?
A positive image about the company is collected on the basis of the following factors:
- regular customers;
- the quality of goods or services;
- competent marketing strategy;
- availability of partners;
- manager experience.
Business reputation determines the degree of responsibility of the company. The metric needs to be continuously worked on, improved and protected so that the business can withstand economic hardship.
The characteristic depends on the actions of a legal or natural person, as well as on external events and circumstances. Creating a “good name” is an important value setting of a competent leader. Working not only on financial indicators, the organization forms a positive image, inspires confidence from third parties and occupies one of the TOP positions in the market.