COEVOLUTION SYNERGIZES BRAND PORTFOLIO MOLECULE

Abstract

In actual processes of business transformation the managerial transformation has a critical role from the standpoint of enterprise internal organizational potentials. Its primary task is to create managerial competences for answering requirements of turbulent transition and realizing an optimal level of economic efficiency. This primarily means to affirm managerial techniques with numerous elements, including reorientation of business portfolio toward changing the business scope and structure of enterprise as well as repositioning its business units. Success in corporate management of an enterprise and its efficiency supposes creating and accomplishing the new concepts of corporate strategy which are focused on corporate strategic processes, creating an effective set of business units, and allocating the resources to those business areas and units where are the best possibilities for creating competitive and corporate advantage. The process of transition results in discontinuity of business activities, growth and development of enterprises, which requires flexible and adaptive forms of organizational structure and management system. This implies making complex corporate business arrangement. At the same time, there is the process of creating dynamic and unpredictable markets, immanent to developed market economy. These markets always change opportunities and capabilities for creating competitive and corporative advantage and business success of enterprise. Adjustment to market possibilities for performing efficient business activities changes the corporate "repertoire" of corporate strategy. The new corporate strategy focuses on corporate strategic processes of restructuring or "remapping" business portfolio as well as on coevoluting its elements, on the basis of simple rules for its application. These are a guarantee for performing business activities on more efficient way. Transitional character of our economy requires flexible and adaptive forms of organizational structure and management system, resulting in complex corporate business arrangements. The focus of new corporate strategy is on corporate strategic processes of restructuring or patching business portfolio and coevolving its elements. This is a guarantee for efficient business activities. Brand is a powerful lever for good corporate governance. Brand fosters customer loyalty, which in turn generates more reliable earnings and income for a business. 4 Sustainable wealth generation - beyond the time and stewardship of any one CEO, Management Team or Board of Directors - is at the core of corporate governance. Brand is also a catalyst to value-adding innovation – since no brand can thrive without adapting its position to the buying customers changing needs – which in turn focuses the organisation to invest and thereby generate further return on shareholders funds. Brand is a proven mechanism for consumer protection. Brand owners take care, continually and consistently, to ensure their position lives up the values and expectations of its buyers. And finally, because a strong brand adopts a stand, on a value of importance to the market in which it operates, it becomes a catalyst to and underpins the organization’s corporate social responsibility agenda and leadership. The paper sees the business model as a complex system and contributes several propositions of its essence and functioning. The offered propositions outline a generic framework for the Co-evolution model concept. It tries to describe the complex theoretical background in business terms using readily understood analogies and without using mathematics. This inevitably leads to some imprecision. Such simplification will be amply justified if a target readership of corporate-level senior managers, business and financial planners, franchise and brand managers and human resources managers find it intelligible and useful or at least stimulating. Even with this simplification, the material is unavoidably novel and covers a wide range of scientific and information technology disciplines: evolution, genetics and other facets of theoretical biology, complexity theory, theoretical physics, knowledge management, telecommunications and so on. This is in addition to the statistical analyses of business performance and similar subject areas more normally featured in an MBA syllabus.