Naming the Corporate Words - Petroleum Products Corporation - Case Study Example

Naming the Corporate Words Naming the Corporate Words Introduction The success of any organization depends largely on the level of commitment of the employees and the organization’s resources pointed in the right direction. A company that applies its resources appropriately, aims at effectively and efficiently achieving the organizational mission, and also works towards realizing the company’s vision. The success of the company also relies on the association of various statements that the organization depends on to control their market share, and provides a sense of direction to employees. These include the mission statements, the vision, objectives and goals of the organization. Application of the words formed in these statements into the formation of the corporate strategy and marketing of a brand name provide for the push that company brands need to reflect positively on the market. Corporate words refer to the application of the various statements in a manner that can enhance the profitability of the company. The success of the organization relies on the ability of the management and other personnel involved to direct resources towards the development of products that suit the market needs. These involve the application of ample resources to the various segments of the business to ensure that the departments operate in accordance with the stated words that provide the sense of direction to the business. The corporate words provide the company with the ability to focus on improving their services and product development as a way of ensuring that they remain true to their words and tend to the need of their target consumer. Considering the Petroleum Products Corporation, the approach towards the success of the company relies much on the nature of reputation and brand it developed overtime which clearly defines a foundation for the corporate words that the company uses. The success of the company based on its performance and relationship with the market positioning indicates an advantage created through the use of corporate words that allow for an easy resonance of the company name in the minds of the customers. The wording provides the direction that the company needs to operate following many years that come after. These provide the management with the origin from which the product brand is developed. After PPC, Inc. was inherited by John M. Arnold in 1990 there was a need for new formation of corporate words in which allowed the company to reach new heights within the oil and petroleum industry. One of the corporate words used to signify the new outlook of the company was “Focused”. The company focused on identifying the market needs and then providing petroleum products that effectively and efficiently achieved the needs of the customers. Customers are important stakeholders, and thus their interests should be adequately taken into consideration. Customers are attracted by high quality products, good customer care and effectively deliver systems. PPC must thus focus all efforts towards realizing customer demands. Considering the CAPEX nature of the company, its success on the market provides for a return level that will provide reasonable profits to the management. The production levels of the company too have aid in the need to provide the best corporate approach to naming by retaining good profits for the company. With over 3 million gallons, the company works towards obtaining a good market position regularly and keeping a competitive advantage. Following the management flow of the company from the changes in leadership, the stability in management remains and that has allowed the company to successfully manage their market abilities and drive towards their objectives. Changes in management in many companies provide the challenge that leads to failure in most cases or decline in sales. The ability to have a smooth transition from one leader to another such as from father to son like in the case of PPC has allowed for the continued performance. Another corporate word applied to the development of PPC, Inc. is: “Efficiency”. The approach by PPC, Inc. in the act of fractioning the market allowed for easy control and spread of the corporate word to create the intended meaning. The fractioning of the market into Sunoco, shell among others creates easy market management that leads to improved performance. PPC applies efficiency in all operational aspects. The aim of efficiency is to achieve maximum production output using minimal resources. All projects of the company are only financed through budgeted amounts. This is aimed at minimizing wastage of financial resources. The production process is also automated. The aim of automation is to reduce human resource requirements and thus minimize save or minimize the labor costs. Automation also enables production of higher quantities of commodities in a timely manner, thus ensuring not only efficiency but also effectiveness. PPC boosts of a corporate marketing image that is developed from the corporate naming approach. The approach has seen the company obtain a huge market share, through which they have sustained development. Many successful companies on the market have relied heavily on the words applied on their products, brands, labeling to influence the market. Any form of communication that is aimed at reaching the market provides a communication aspect that the market will respond to in varied ways and hence the need to take a critical approach in its development and application. The message that the words may contain need to provide an easy guidance to the customers on their product needs and the company’s product line. The name Petroleum Products Corporation indicates the petroleum products that the company deals with. The application of the name of the company on the products provides the customers with an easy identification of the products. The image that the company sets out to the market distinguishes it to from the others, and this ensures competitive advantage (Inc, n.d). Companies that have a good corporate picture have greater market positioning. These provide for the development that the company needs to obtain sustainable competitive edge on the market and successfully operate on the market. In framing the corporate picture, the company starts with the employees, who obtain training on the various company products and the best brand representations. The company employees provide the supportive role in ensuring that the brand resonates in the market by ensuring it maintains the standards set on the market. The major aim of framing the corporate picture is for the future of the company and providing the necessary support to the brand name. The company also aims at providing a positive effect to the customers by improving the product positioning and allowing for a better market realization approach compared to that of the competitors. The successful brand image of PPC stems from the concepts that the company employs that range from mutual respect between the company and its customers and employees, trust, fun in the work, a focus that aims at fulfilling the needs of the customers, self-initiative, winning, team spirit and ever moving forward. The provision of providing environmental stewardship too has boosted the image and picture that the company has on the market. The success of the company in reaching their goals through satisfying the market has evolved from the following principles. The consolidation of the market that the company held provided it with an advantage over the competition leading to an improved competitive edge. The transportation system well thought through that has a rail that connects the company directly to the market provides an advantage. The company also applies diversification in which it provides the necessary wide range of products that the customers have to choose from to meet their needs. The company through this move makes the best out of the market with petroleum products ranging from lubricants and oil products. The company has met its market objectives through this leading to an improved approach to marketing that has resulted into a competitive edge. After reading Michael Porter “Sustainable Advantage” the CEO of PPC, Inc. attended a conference that allowed him and the team to develop a plan that will contribute to the success of the company. This action exemplified the corporate word “Strategic”. The strategic word ensures adoption of operation measures that will effectively and efficiently realize the mission of the company and also work towards realizing the vision. Strategies like staff training are aimed at building staff competencies needed for effective production and service delivery. Thus, high quality products and services are delivered to the customers. Another strategy adopted by the company is Total Quality Management that ensures all products are of the correct standards to meet market needs. During the conference the CEO had a chance to apply the Porters five forces analysis on the company which was effective in enhancing their competitiveness in the oil and petroleum sector. Five key issues were analyzed; new entrants threats, substitute products threat, customers’ bargaining power, suppliers’ bargaining power, and the competitive rivalry intensity (Porter, 2008). The petroleum and oil industry is attractive and has high returns, thus new entrants will always enter the market.PPC has thus adopted various strategies to minimize the emerging threats. The company benefits from economies of scale and hence is more competitive. The production company is currently 300 million gallons, due to economies of scale. PPC is more efficient than the new entrants, because it applies minimal resources and technology to achieve maximum production output. PPC experiences intense threats from the substitute products. However, it has adopted appropriate measures to ensure competitiveness. One key measure is the adoption of high standards quality assurance. The company strives to produce very high quality petroleum and related products. Thus, the customers derive a lot of satisfaction from consuming the products. The high quality products and services enable PPC to effectively overcome competition from the substitute products. Customers have increasing bargaining power. This can result to the negative issue of price reduction. To ensure competitive advantage, PPC builds customer loyalty base that is comfortable with the price stated by the company. Customer loyalty is achieved by production of production of high quality products, and the maintenance of effective and reliable global distribution channels. Customers pay appropriate PPC prices, due to the effective delivery networks and high quality. The supplier’s bargaining power is critical, and PPC has adopted strategies that competitively address the suppliers’ authority. All contract agreements between PPC and suppliers are strictly adhered to. The suppliers cannot change the contract terms during the applicable trading period. This strategy, hence, protects PPC from fluctuating demands from suppliers. PPC finally addresses the competitive rivalry intensity through several approaches. It ensures sustainable competitive advantage by the utilization of innovative solutions. The mass production is ensured through superior processing technologies that realize economies of scale. The marketing strategies presently being employed are in electronic form. PPC is very active in the social media, so as to create international publicity. The products can also be purchased through electronic means, thereafter proper shipping arrangements is also implemented. The mission statements and vision drive the future intentions of the company, which need to relate closely with the naming. The brand PPC has a corporate name that aims at the provision of quality petroleum products to the market. Through these, the market embraces various approaches to understanding the name and attaching it to value hence more appealing to the products that the company develops. The naming provides the actual label and brand that the company will use in its campaigns, advertising and the promotion of the products. The statements provide a driving force to the company’s operations, goals and plans. All strategic plans that the company develops provide support to the market needs and hence the need to have them target a positive response from the market. Many companies employ a naming aspect that provides a simple, short and easily memorable name to avoid confusion on the market. The naming also requires the consideration of a unique name that the competitors find different from theirs hence providing a distinctive environment for the company name to flourish. Consideration of possible partnerships in the future improves the ability of the company to reach a wider market and provide their goods. These will attract more impact on the market and lead to a better competitive edge that wills the company on the lead. Through the corporate name developed, the company expects improvement in the results and general performance (White, 2015). The statements that cover the mission and vision need close and constant evaluation to ensure that the organization is moving towards a direction that boosts the intended goals. Each outcome that the company registers needs weighing with the intentions to indicate the movement towards the ultimate goals that the company develops on the onset. The outcomes may relate to customer improvement, the results improved as a result of the marketing intensity and the wordings that the company faces. The words evaluation would reflect a positive advantage if the market positioning proves the efforts of the company towards the improving its performance provide a positive position impact on the customers. Other outcomes can be evaluated through the motivation aspects in the employees resulting from their appreciation of their works that will provide positive returns to the company. The ability of the resources employed by the company to provide positive results too detail the importance of the wording to providing a better company strategy that associates the name with other company products or products in other companies that relate their naming or products with the PPC company hence cutting advertising costs. Following these provides a positive impact on the company and its market positioning. Conclusion In conclusion, companies that develop a good naming in word obtain good sustainable market that lasts for a longer period. The need to match the wording to the company objectives originates from the need to consider the strategic aspects of the company. These provide a picture on the company’s intentions and direction of development that feature in the vision statement and mission statement. The naming to provide the force that drives the market through an improved market positioning approach enhances the direction created by these. The words used in naming the various products of the company will base on these and provide for the improvement of the chances of making sales and hence profits for the company. Based on the above, one discovers that corporate naming and words used play a vital role in influencing the communication and work aspects in the company. They also play a major role in simplifying marketing and advertising aspects of the company that need attention on a regular basis. These have aided PPC survive on the market this long. References Inc, (n.d). Corporate Image. Viewed on March 24, 2015 from http://www.inc.com/encyclopedia/corporate-image.html Michael, Porter. (2008). "The Five Competitive Forces that Shape Strategy", Harvard Business Review, January 2008, p.86-104. White, P. (2015). Getting to Outcomes: Improving Community Based Prevention. Viewed on March 24, 2015 from http://www.rand.org/health/projects/getting-to-outcomes.html Rand Health. Read More