Factors That Can Lead To The Changing Of Corporate Identity
Although, the word identity owes its origin from Latin word ‘idem’ (same) or ‘identidem’, that is being the same all the time, there comes the time when an organization has to change its identity completely or partially. In that case, it may change from time to time depending on a number of factors as explained by Botha et al. (2007): -
i. Old fashioned
An organization may decide to change all or some of its elements of identity simply because they are out dated. This implies that they have been used for a considerable period of time and are no longer attractive and cannot match with the current social, cultural, economic or technological advancements and trends. For example, old fashioned buildings, equipment such as typewriters, from use of course work sheets to students’ management information systems (smis), out-dated packaging, communication systems, old ways of offering services and like from paying cash to paying through electronic cards
ii. Merger
Another reason for the change of corporate identity can be due to fusion/merging/union of two or more organizations. In that case, when two or more organizations merge, or one become part of another, there may be changes of names, logo, organization structure, features of the brands and the like. Also, the union may result into formation of something new, partly or complete dissolving of the uniting organizations.
iii. Government policy
Sometimes corporate identity can change in order to respond to the newly introduced government policies. These may be rules and regulations that govern the operations of a particular organization. This also can happen within the state itself when there is a newly elected government which may wish to introduce new systems of operations. For example, new environmental regulations may require each mining company to engage in environmental preservation campaigns or Corporate Social Responsibility every year.
iv. Legal requirements
This factor is similar to the change in government policy in the sense that rules and regulations imposed by the government over the operations of a particular industry may have effect to the corporate identity. For example, business regulations may require that each company have tbs logo on each package of the product they sell to certify the quality of the products, carbon free symbols or advertising regulations may shape the messages that an organization sends to the people.
v. Change of investor/donors/funders
Entire or part of the corporate identity can be changed when an organization is acquired by a new investor, donor/funder. This is due to the fact that the new investor/donor/funder may come with their requirements and that they want to run the organization in a quite different way. In that, to be different, they may change the overall design elements such as name, logo, colour, the nature of products, organization structure and overall corporate culture. For example, Microsoft acquired Nokia, and has now changed the operating system of the device from Symbian to Windows, and the name from Nokia to Microsoft. Think of telecommunication companies in Tanzania, like Celtel to Zain, and now to Airtel, also, Mobitel to Tigo.
vi. New direction/mission and vision
There also comes the time when, given the experience that a company has over years, it may take a new perspective in order to match with current situations. This comes when for a great extent an organization has been able to achieve its mission and vision, there are new identified needs of the stakeholders, new business situations, changes in global, regional and national economic, political, cultural, technological and ecological trends. For example, in 2010, NASA ended its space shuttle programme and began to work on the Orion programme for deep space exploration, mobile device manufacturing companies may introduce dual-sim cards mobile devices as a response to the emerging markets in African countries. SAUT decided to add Public Relations and Marketing in order to respond to the needs of having Public Relations personnel in Tanzania.
vii. Social, cultural, political, economic and technological pressure
Sometimes, an organization may have to change its identity in order to match with social, political, cultural, economic and technological pressures of the society in which it operates. For example, the logo, name, colour, dressing style, architectures, mission and vision as well as the overall nature of the products offered have to be in line with the cultural influences. For example, a number of tour companies would incorporate Maasai dressing code or colours and artefacts in Arusha as part of their operations, Red Cross in Islamic countries is called Red Crescent, TBL manufactures beer named Nzagamba as a response to Sukuma culture.
viii. Similarity
In the end, corporate identity is about being unique, standing above all the others in the business. In other words, it is all about acquiring the first position in the mind of stakeholders. In that case, no person, no family, no community, no society, no country and no organization would like to be the copy or duplicate of another one. Although two or more organizations can be in the same industry, each one of them must have its own set of unique features. In that case, corporate identity can be changed once an organization realizes that it looks similar to other competitors.
By msele musa A
BAPRM 42626
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