Is the Most Financially Successful Company
With the ever growing competitive market conditions, it has become vitally important for the firms operating in a multinational environment to acquire the best possible competitive advantages over the other firms competing in the market. This requires the application of a number of strategic measures that take into account the changing market conditions due to changes in customer preferences.
The business success is determined by how efficiently the company is able to understand the customer needs and adopt strategic decisions covering planning processes and operating procedures which will enhance the customer satisfaction in terms of quality and timely delivery. Therefore, strategic decisions need to define the basis of sustainable competitive advantages (Martin Roll, 2006). Another important factor that determines the success of the company is the image that it is able to create among the customers.
Brand building and creation of a brand image are considered as the important functions of the management to expand the existing market and also to sustain the growth already established. Even in this area of creating a brand image the company has to adopt several strategic measures based on the prevailing market conditions. By ‘Brand Image’ it is understood that the company should acquire the admiration of the customers. For gaining the admiration of the customers it is important the firm should be operating successfully.
The success of a company is usually determined by the profit it makes and the wealth it is able to create out of the profits earned by it. The profitability and wealth creation make the company a financially sound and successful one as well. However it also follows that the admiration does not necessarily be the result of the financial success of the company, as there are number of other attributes that contribute to the popularity of a firm and thereby the admiration there of.
The research feedback from a study conducted by Fortune 500 has shown a growing awareness of the social responsibilities of the business organizations and those companies which comply with the social responsibility obligations are considered as better admired ones. ` 1. 1 RESEARCH OBJECTIVE: Being a more subjective issue the attributes of ‘admiration’ and ‘successful’ can take different connotations on the basis of the understanding of these terms by the researchers and the respondents alike.
It is also quite possible that there are varied view points on the selection of the key determinants of these attributes influenced by the culture and outlook of different locations. Hence it becomes necessary to analyse and arrive at some common language and parameters to have a concise definition of the terms and also the following associated elements: ? The attributes which outline the most successful company in the eyes of the customers ? The key determinants that need consideration for identifying a company worth of admiration in some respect.
? Financially most successful and most admired company in Hong Kong in any industry. ? The impact of the ‘trust’ the people place on the company on its financial success. ? The relationship that the financial success holds on the company’s admiration. On the basis of the above discussion the following can be identified as the important objectives of this research study: ? The foremost objective of the study is to establish the relationship between the financial soundness and the admiration of any company globally.
? As a corollary to the main objective the research also aims to identify the key determinants of the admiration for a company in any industry and also the attributes that determine the successful nature of the companies. ? The other objective of the research is to identify the most successful and most admired life insurance company in Hong Kong and also to establish the connection between the financial soundness and the admiration.
In order to arrive at a conclusion on the admiration of the financially most successful company in any industry in Hong Kong this research will take into account the financial status of different life insurance companies in Hong Kong and assess their relative positions with respect to the admiration the people have of these companies. ` 1. 2 RESEARCH HYPOTHESIS: With a view to accomplish the research objectives, I have conducted a quantitative research to find out the possible attributes and determinants of “Successful Company” and “Admired Company” and the most financial successful and admirable company in Hong Kong.
Followed by the quantitative research I made an extensive qualitative research to test the results of the study which are in support of the general support contentions. I have established the following hypotheses to guide the research study: H1: To explore the concept that ‘trust’ (sense of security) is key determinant factor for customers in the selection of an insurance company for buying an insurance product in Hong Kong; H2: To explore further that the element of trust is positively related to the admiration of a company in the insurance industry of Hong Kong;
H3: In addition to explore the concept that marketing communication mediates the link between corporate image and customer loyalty and trust in insurance industry in Hong Kong In the process of exploring the above hypothesis the research will make an extensive study into the various constituents of Brand Equity (brand awareness, brand identity, perceived quality, brand loyalty), Brand Strategy (corporate brand, positioning), customer behaviour (decision-making process) and Marketing Strategy (communication, advertising). The study will also make an extensive coverage of the relationship between Corporate Image and the Marketing Communication.
1. 3 RESEARCH QUESTIONS: While studying the relationship between the success of the company and its admiration the research will find a convincing answer for the following research question based on the analysis of the responses from the survey. Is the most financially successful company in any industry the most admired one? What are the key determinants of the concepts of ‘success’ and ‘admiration’? What is the extent of the relationship between financial success and the admiration of the companies? The research will find the answers to the above questions on the basis of a study of the life insurance companies in Hong Kong.
1. 4 STRUCTURE OF THE DISSERTATION: In order to make a comprehensive presentation I chose to divide this paper into different chapters. Chapter 1 introduces to the readers the basic premise on which the research is going to be conducted. This chapter also details the research objectives and the hypothesis that have been established to be explored out of this study. The questions that this research aims to answer are also presented in this chapter. Chapter 2 presents a detailed review of the available literature on the topic to make the readers comprehend the subject matter of the study.
Under chapter 3 the research methodology is explained in detail for the information of the readers. I intend to present an analysis of the findings of the survey followed by a detailed discussion on the results obtained in the chapter 4. Concluding remarks on the recap of the research subject and suggestions for possible implementation are contained in chapter 5 CHAPTER 2 LITERATURE REVIEW This chapter presents a review of the available literature on the chosen subject of the relationship between the financial success and the admiration that a company carries.
Though there are different attributes that act as a determinant of these factors I intend to arrive at some common definition of these terms through the review of the available literature. 2. 1 THEORETICAL BACKGROUND: Several scholars have used different measures to evolve and classify the key determinants of the ‘success’ and ‘admiration’ by the customers. However the researchers are unable to contribute a definitive approach and common determinants for establishing the standards with respect to different organizations.
In fact there are no enough studies conducted in this respect in the Hong Kong context which makes this research necessarily base itself additionally on the other available alternative variables that can determine the success and admiration of the companies. Thus this study will additionally look into the effect the ‘corporate image’ has on the choice of the customers and how it associates itself with the customer bahaviour. This additional study will supplement the findings for answering the research questions.