The Power of Business Reputation
An article in the July 9 & 16, 2007 issue of BusinessWeek (“What Price Reputation?”) examines the growing trend among businesses to try to manage their company reputation. Traditionally analysts and executives have viewed a company’s value as the combined value of its tangible and intangible assets. Tangible assets — such as factories, machinery and cash reserves — are easy to quantify, while intangible assets are much more difficult to place a value on.
Several of the “Reputation Managers” quoted in the BusinessWeek article assert that once you remove all of the tangible assets, the majority (if not all) of the remaining portion of the company value results from reputation. …