Why are Brands Able to Transform Organisations and People’s Way of Life? - Liderando la reputación corporativa de las empresas - Corporate
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Brand

Book summaries April 2014

Why are Brands Able to Transform Organisations and People’s Way of Life?

The phenomenon of brands has transformed the economy and people’s way of life all around the world. Brands constitute part of both the economic dimension (as a business tool) and the social dimension (as a sociological phenomenon) and have the power to change them.

Martin Kornberger, Professor at the Copenhagen Business School, in his book “Brand Society” defends that brands are used to obtain immediate economic returns rather than to transform the society and people’s lives that in turn would lead to economic results and it’s time to change the situation and try to establish close and well-coordinated relations between producers and consumers.

Nowadays, brands represent a new form of organising production and managing consumption and are transcending their habitual domain (organisation) and stretch the borders of influence. They should conform to a formula that combines magic and logic, this is, brands need to provide solutions for improving our lives and at the same time leave impressions in our lives.

The monopoly of businesses for instituting organisation and production is giving way to creativity of communities and social networks. Boundaries between the internal and external are disappearing, enabling greater interaction between stakeholders. Organisational culture is changing towards lower fragmentation and fewer internal divisions. Management is no longer governed by the ideas of authority and control, and includes more elements of autonomy and cooperation.

Regarding this aspect, brands challenge the traditional identity of companies, their capacity to innovate and their organisational culture by putting them in touch with new realities and needs and helping them to understand the changes in the society, economy and capitalism.

Capitalism used to be cold, rational and mechanical. Brands, on the contrary, encourage companies to be more approachable, emotional and organic and drive management through identity, values and life style and act as a link between business and culture that has been missing up until now,

Expectations of stakeholders, and customers in particular, have grown in what concerns design. Ikea, Apple, Google or Starbucks are some of the companies that have understood how to effectively associate the design with their brands and have understood that now brands have to express beauty and be beautiful.

To conclude, Kornberger explains the way psychology, sociology and economy converge; they transform the way people live and consume as well as the way companies produce goods.

There is no doubt about the importance of brand, and yet more research is needed in the area in order to enable brands accomplish their mission: combine the social and economic dimensions in order to create value.

This document was prepared by Corporate Excellence – Centre for Reputation Leadership and contains references to the book Brand Society: How Brands Transform Management and Lyfestyle by Martin Kornberger, Professor at the Copenhagen Business School (Denmark), published by Cambridge in 2010.