#myting

An organisations brand is very important, having a well recognized brand can be positive or negative. The positive side to global recognition is having more business, for example, Nike have a worldwide customer base thus more profit. The negative side is being known for something negative, such as Volkswagen are currently; their mistake has caused huge financial problems as well as giving them a bad reputation. 

Arsenal Football Club has a well known brand, living behind the cannon image on the clubs badge and the name “The Gunners”. Good branding brings profit outside of the organisations main focus; for Arsenal, kit and other merchandise sales, shares, sponsorship and many more things do this. Evidence has been reported, the teams “total turnover increased from £301.9m in 2014 to £344.5m for the year”(Sky Sports, 2015). Although ticket sales and player performance are the main selling point, the real profit margin would lie outside of the of the main focus in other income.

At the other end of the spectrum, VW have let their reputation slip. “VW said it had a €2.52bn pre-tax loss for the third quarter of the year.”(BBC News, 2015) The emissions scandal has had an enormous impact on VW as a brand, they’ve had to make a lot of changes to their business in order to remain as one of the top car manufacturers in the wold. Problems such as the one they face do happen to footballers. Kolo Toure, who took his wife's diet pills in 2009, was given a six month ban for a failed drug test. Similarly to the VW scandal, Toure was punished for a mistake made in the past and consequently developed a bad name, which in business would give his brand a bad reputation. 

References

BBC News,. (2015). Volkswagen pushed into loss by emissions scandal - BBC News. Retrieved 21 November 2015, from http://www.bbc.co.uk/news/business-34650233