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Why ‘brand is power’:

Branding is a necessary value of a business in the facets of finance, customer-base, their loyalty, fame and legacy . It grows with years of service, integrity, honesty, popularity. Brand includes a lot of things but not limited to name, logo, etc. A logo (which is a picture that represents the company) is what comes to someone’s mind when the name of a company is mentioned. People easily recognize even from afar when they see a logo of the company. A picture is worth thousand words and hence a logo of the company stands out as the face of a company. Everyone is able to relate the logo to the company when they see it anywhere and are able to easily relate to what the company produces and stands for.


Brand value can be huge and everything may be at stakes when there’s controversies linked with the company and hence companies try to keep the fame afloat not matter what the cost is and try to stay away from controversies. With big firms, the stock market can swing up and down when linked with controversies as stakeholders and shareholders, losing confidence in the company, may withdraw their stocks/stakes which may derail the company bigtime.


Case Study:

Enron Corp. is a company that reached dramatic heights, only to face a dizzying collapse. The story ends with the bankruptcy of one of America's largest corporations. Enron's collapse affected the lives of thousands of employees and shook Wall Street to its core. At Enron's peak, its shares were worth $90.75, but after the company declared bankruptcy on December 2, 2001, they plummeted to $0.67 by January 2002. To this day, many wonder how such a powerful business disintegrated almost overnight and how it managed to fool the regulators with fake, off-the-books corporations for so long.

(Source:  Enron Scandal: The Fall of a Wall Street Darling | Investopedia )

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