Goodwill and Strategies: Module 1

• Strategies in Promoting Goodwill presented by Associate Prof. Teresa V. Mobilla on March 6, 2025. This is Module 1, Goodwill and Strategies.

Strategy Definition

• Strategy constitutes an organization's long-term action plan.
• Strategy is designed to deliver a unique customer experience while achieving company goals.

Goodwill Definition

• Goodwill represents a company’s reputation, brand value, and customer loyalty.
• Goodwill is an intangible asset reflecting the value of a business's brand name.
• Goodwill is supported by good customer relations, an extensive customer base, and excellent employee relations.
• Goodwill may include proprietary technology or patents.

Types of Goodwill

• Institutional goodwill is related to a company's position in the marketplace, and how well it serves its customers.
• Institutional goodwill is the value of a company's intangible assets, such as its reputation, brand, and customer base, and it is also known as corporate goodwill.
• Professional goodwill relates to professional practices like engineers, doctors, lawyers, accountants, and architects.
• Practitioner goodwill relates to the reputation, skill, and client relationship of a professional.
• Practice goodwill arises from the practice itself, its tract record, institutional reputation, location, and operating procedures.

Factors Contributing to the Creation of Goodwill (Bennet 2020)

• Expectation of future economic benefits: Owners believing in additional value through creating new products and services, attracting new customers, and merging other businesses.
• Excess Business Income- Implies earnings are in excess of a fair return on all other business assets
• Going Concern Value: The existence of business assets ready for use in generating income drives value.
• The company effectively applies its financial resources, equipment, manpower, and management to generate economic benefits for its owners.

Three Levels of Strategies

• Macro or corporate strategies.
• Micro or business unit strategies.
• Individual or team operational level strategies, which can be influenced by Public Relations (PR).

Synchronous Meetings

• Synchronous Meeting with I-A is on Monday, March 10, 2025.
• Synchronous Meeting with I-C is on Thursday, March 13, 2025.

5 Strategies for Promoting Goodwill

• Ethical Business Practices are moral values and principles The Best Beer Company in a better world.
• Anheuser-Busch is the best Beer Company that govern our actions and decisions: ask Anheuser-Busch.
• Corporate Social Responsibility (CSR) includes renewable electricity and carbon reduction by 2025; all purchased electricity from renewable sources, and carbon dioxide will be reduced by 25%.
• Water Stewardship involves engagement in water efficiency efforts in high areas to supply quality and available water.
• Smart Agriculture indicates that 98% of products are grown from the USA.
• Circular Packaging involves packaging made from recycled content or returnable materials.
• Customer Engagement & Brand Trust refers to the relationship between how a customer interacts with a company and the level of confidence in that company, as explained by Google.
• Employee Well-being & Corporate Culture. Employee well-being refers to overall physical, mental, and emotional employee health within a workplace.
• Corporate culture represents shared values, beliefs, and behaviors that guide interactions within a company.
• Community Involvement & Philanthropy involves ways to help communities and society by giving time, money, and other resources.
• The Coca-Cola Foundation is the global philanthropic arm of The Coca-Cola Company, awarding grants to support sustainable community initiatives since 1984.

Emirates Airline

• Emirates flies to 157 cities across six continents.
• It is headquartered in Dubai, UAE and was founded in 1985.
• The airline employs 45,000 people across 172 different nationalities.
• Emirates is located in a small city state strategically located to reach three fourths (3/4) of the world population in a flight of fewer than 8 hours
• Emirates has customer-focused strategies and a modern fleet
• Emirates seeks to offer high quality service that is innovative, contemporary, and customer-oriented.
• The airline pursues a customer-focused value proposition with products, services, and experiences customized for each market.
• It offers exclusive lounges and an onboard Information, Communication, and Entertainment (ICE) system.
• The Skyward Program builds strong customer relationships by allowing members to earn miles using route, fare type, class and tier inputs the first of its kind in the industry.
• A "miles accelerator feature" offers bonus milesBoosting turnover for flights that are not full
• Dubai connect offers premium class passengers free luxury hotel accommodation, meals, ground transportation, and visa costs in Dubai.
• Chauffeur (show-fur)Drive is a service for first class or business class customers, available in 70 cities worldwide, with one-way tickets from LA to Dubai costing $20,000.
• Emirates increasing its marketing budget towards customer engagement on digital social media.
• Founder and CEO Sir Maurice Flanagan states, that the airline wants to connect dream, hopes, and aspirations by bringing people and cultures closer and has began global collaborations with BBC, CNN, and Yahoo.
• Emirates has received awards and accolades, including the World's Most Valuable Airline Brand and the Middle East's Most Valuable Brand by Brand Finance, along with TripAdvisor Travelers' Choice Awards.

Activity: Goodwill Tycoon

• Purpose: Teams create a goodwill strategy for a real or fictional company.
• Instructions: Divide into 4 groups, assign scenarios (new company, new product, crisis recovery, established brand).
• Presentation: Teams present strategies in 2-3 minutes.
• Voting: The class votes on the most effective goodwill strategy.