Build a Good Name - Increase Stock Price
Copyright Jack Mixner. 714 449 1040. www.mixnerstrategy.com
How about a way to increase your stock price twenty-seven percent by pointing out the good things your company does like environmental responsibility, innovation, and employee training? UTC did precisely that and, indeed, increased its stock price (Engardio, 70).
Symptoms
- You worry about your image only when things are going wrong.
- PR focuses on your charity work or green initiatives.
Opportunities
- Fix your problems first. Bad press? Don't hire PR. Look to causes.
- Got a good story to tell? Figure out what it is and communicate the gradual changes to the press.
- Consider the specifics of your good story before you begin your PR.
Southwest shifted its story from low price fares to extensive routes and schedules. Its share price is down 5% since the campaign began, yes. The industry, however, is down 15% (Engardio, 79). Correlation? You decide.
Reference
Engardio, Pete and Michael Arndt. What Price Reputation? Many savvy companies are starting to realize that a good name can be their most important asset-and actually boost the stock price. BusinessWeek. 9 & 16 July 2007. http://www.businessweek.com/magazine/content/07_28/b4042050.htm?chan=search