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TMF-MCR-JUNE 2011-13955174

Title page:

Corporate Branding

For

A Health Insurance Organization in Nigeria

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Table of Contents

Illustrations:

1. The difference between product brand and corporate brand

2. The Organization Stakeholders

3. The Company Credo

4. Foundation for Successful Corporate Branding

5. Framework for Corporate Strategy and Governance

6. Framework for Strategy Brand Management

Title Page................................................................................................................................................1

Introduction ............................................................................................................................................ 3

Definitions ............................................................................................................................................... 3

Type of Corporate Brands .................................................................................................................... 3-5

Corporate Character Evaluation .......................................................................................................... 6-8

Corporate Branding Potential for the company ................................................................................ 8-12

Recommendation and Validation for identity Mix and corporate branding ................................... 13-16

Implications..........................................................................................................................................16

Appendix..........................................................................................................................................18-19

References...........................................................................................................................................20



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Introduction

Aaker, D.A (2004) opined that brand assets are complicated and expensive to extend, sustain and

acclimatize. The proliferation of products brands, forceful market framework with emergence of

new branding categories make it challenging to offer support. In the light of this, the corporate

brand was birthed to play a major role in the management of the brand portfolio.

Branding is not longer products/services only that are brands, organizations are also brands. The

competitive marketplace and increasing demands by various stakeholders on organizations have

caused most corporate citizen to have a rethink on how they are accessible, perceived and interact.

All forward thinking organizations are concern with the images people form as result of interpreting

signals the organizations transmit and every effort is consistently put to transmitting favourable

signal.

What is a corporate Brand?

Van Riel, C. B.M and Fombrun, C.J (2010) explained that corporate brand involve personalizing the

company as its entire in order to generate value from the company planned position, institutional

activities, organization, employees and portfolio of solutions.’’

Today organizations are using corporate brand as a platform to generate positive circle of light effectabout everything the organization does and demands a commitment to the usage of coherent and

consistent communication if sustain benefits are expected from the corporate branding strategy.

Types of Corporate brands

The corporate brand architecture depends on the organization marketing frontier with the

stakeholders. However, Petromilli et al, (2002) opined two brand types of architecture:

1. Branded house and

2. House of brands.

The Branded house uses a single brand for all of its offerings. Like Zenith group, Philips, IBM; and

the house of brand architecture is characterised by collection of brands that operate independently.

These two approaches depict two extreme and most organizations operate a mix.



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Each stakeholder demands and seeks specific information; and for the organization to develop its

corporate brand, it must develop a mix of integrated communication programme for their key

stakeholders group that guide it positioning strategy.

Van Riel and Fombrun, (2010) cited Olins branding strategies that include Monolithic, Endorsed and

branded strategies; they also cited Kammerer’s action type branding strategies that includes four

typologies- financial orientation, organizational –oriented, communication oriented and single

company. However, the focus here will be on the following:

Monolithic strategy – the whole company uses the same visual style and it can be recognize with the

same symbol everywhere.

Endorsed Strategy – here the subsidiary have their own style, however the parent company stay

behind the background.

Branded Strategy- the subsidiaries have their styles; however the parent company is not notice.

To this end, going by the discussion above, one thing is fundamental clear that once an organization

had concluded to develop corporate brand, it has to decide which strategy to pursue.

The latest development shows that there are other types of corporate branding relationship and a

single corporate brand may creek around a variety of premeditated understanding and in addition to

the aforementioned influentially corporate brand strategies cited by Van Riel and Fombrun, (2010)

are added:

• FAMILIAL- the acceptance of the identical corporate brand by two entities within the similar

industry.

• SHARED - as above, but with companies operating in divergent markets.

• SURROGATE- a franchise agreement whereby one organization’s products/services are

labelled as those of another.

• MULTIPLEX- the multiple uses, and sometimes multiple ownership/rights, of a corporate

brand among a variety of entities in a variety of industries. Example: VIRGIN

• FEDERAL- the formation of a new corporate brand by disconnects companies that pool their

possessions in a supportive endeavour. Example: AIRBUS

• SUPRA- brand used to supra-endorse any number of corporate brands.



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Having highlighted a few of corporate brand types, it is important to look at the difference between

product and corporate brand in the level of responsibility. Corporate brand is a managerial

responsibility and product brand is a middle management marketing function.

The table below shade more light on the difference between the two:

Responsibility Product Brand Corporate Brand

Management Middle Manager CEO

Communication mix

Deliver by

Marketing communications

Marketing

Total corporate

The whole company.

Time Horizon Short( Product life) Long(life of company)

Importance of company Functional Strategic

Source: Balmer, (2007) Product and corporate brand differences.

Going by the above table, it is clear the strategic position the corporate brand of an organization

plays and the strategic responsibility the corporate brand bring on the CEO to ensure the corporate

promise is fulfilled as expected by the stakeholders.

The Organization’s Stakeholders:

To help move forward in this discourse, it will be imperative to also have a pictorial view of the

organization’s stakeholders. The diagram below depict the Key

stakeholders

Figure 1: the Organization’s Stakeholders



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As highlighted in the diagram above, the various stakeholders currently influence the company

strategic thinking, strategy formulation as well as communication and by implication will determine

the choice of corporate branding strategy.

Advice on Brand Options:

In giving an opinion having examined the various types of corporate brands options in line with the

organization key stakeholders, corporate structure, service portfolio, values and identity, mission

and vision, I would advise the company adopt a monolithic corporate brand strategy to effectively

position itself in the emerging health insurance industry in Nigeria.

Why the Choice of Monolithic Corporate Brand Strategy:

First of all, the monolithic branding strategy is a brand option that uses one visual style for the whole

organization everywhere. Monolithic branding strategy was recommended because of the internal

inconsistency and external confusion with regards to it strategy implementation.

The monolithic corporate branding strategy will enable the organization align its communication

strategy with the market in focus and easily differentiate thus defuse the inability of customers to

quickly associate it services with the company.

The planned opening of hospitals across the country with Mediplan as the brand mantra and the

continuous repositioning that has been going on since the company name was changed made me

advocate this branding strategy as the ideal.

A good example of a company/s that has successful use this monolithic branding strategy is Philips

with a tagline of ‘‘Sense and Simplicity’’ and it makes a lot of difference in it healthcare imaging unit;

and others are Heinz, BMW, Apollo hospitals etc

Also the company service benefits are 95% locally consumer which is also the reason why

recommending monolithic corporate brand strategy is ideal for the company because of it regional

operations and would be the platform for continuous expansion. [Task 1 Word: 1026]

Corporate Character Evaluation – The Mediplan Healthcare in Perspective

The assessment of organizations’ character has become vitally important today because most

companies pay title attention to understanding what the customer is actually experiencing as a

result of the prevailing internal culture, strategy mindset and communication structure.



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For example, enrollees (health insurance buyers) go through challenging situations receiving quality

healthcare from providers (hospitals) in spite of huge amount of money paid to HMOs (health

maintenance organization) in Nigeria and people are asking questions about the role of HMOs in the

entire healthcare cycle.

A sustainable corporate brand reflects the reality of the company’s character which is a

combination of the appropriate balance of the various components of character.

To evaluate in detail the corporate character of the organization we will examine the following

component of character: 1. culture, 2. strategy and 3. Communication structure as applied in the

organization.

Culture

First of all what is culture? Want, J. (2006) defined culture as ‘‘the collective belief that people

within the organization have about their ability to compete in the marketplace – and how they act

on the belief systems to bring value-added services to the customer in return for financial rewards.’’

The organization culture evolved around its credo and this guides their systematic developmental

strategy of the organization. An interview with the CEO and some employee revealed that its ability

to compete effectively today with other HMOs is rooted in the culture of the company that is

internally differentiated by employees’ alignment from the recruitment process, continuous training,

innovation and market oriented thinking.

The internal culture is such that accepts positive failure and promotes continuous learning as well as

strongly recognize that the employee as a vital hub between the organization and customers. The

culture is gradually moving away from a blame game towards support system. The company has a

less rigid and bureaucracy culture, high standards for ethical conduct are frequently communicated,

accountability and responsibility is expected from everyone in the organization. The company work

philosophy is illustrated below:



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Figure 2: The Company Credo

Source: 2011 Company Corporate Profile.

To establish the conformity of the organization to its philosophy, an in-depth evaluation was carried

out using a personalize approach and summary of the outcome is as follows:

An analysis of the questionnaires was done using mean average and the outcome indicated that

there where gaps between the internally held corporate character of the organization and what was

externally seen as the organization corporate character. The customers and healthcare providers did

not see the company as responsive and prompt in settling claims as well as meeting clients’ needs.See appendix A1 and A2 for the questionnaires, research methodology and responses.

Corporate Strategy Development:

The starting point for strategy development in the organization is outside- in approach with priority

on the marketplace, competition and the optimal customer as the beginning of strategy formulation.

It is normally developed at top management and board retreat with little feedback from the

company wide input then cascaded down according.

The strategy drive is innovativeness and differentiation in their solutions to the market thereby

offering customized solutions to specific market segments at premium prices. The communication is

structure around creating alignment of it vital human resource asset in order to achieve coherency

and distinctiveness from the competition. However, as a service company over centralization of

strategy development without decentralizing for companywide feedback and input may result in

strategic gaps, hinder collaboration and it is imperative the company advocate collective

involvement in order to achieve complete buy-in and commitment.



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The Organization Communication Structure

The internal communication is influence by official channel of reporting and it cut across horizontal

and vertical formats. Information is disseminated through formal structure as well as through

informal structure. Official communication to a large extent is centralized and this ensures

consistency of message and content.

The communication climate is positive and show openness with some element of a buy –in, a degree

of commitment and loyalty to the organizational values. Channels like emails; intranet and service

memoranda are used to disseminate information. The communication messages are structured such

that the character of the organization is express beneath the advertorial whether

internally/externally.

To this end having examined the organization character from the various components, it is obviousthat the organization is in the developmental state and it is striving towards ensuring that it held

corporate belief systems reflect internally and externally is consistent.

To realize this, coherent communication, continuous staff training and development, signage,

positive corporate behaviour and culture, and the continuous echo of its corporate philosophy will

enhance its reputation and get everyone in alignment. [Task 2 word: 742]

Critical Appraisal of Organization’s Potential for Corporate Branding

Overview Corporate Branding:

First of all before going into detail evaluation of the organization potential for corporate branding, it

will be good to explain what corporate brand is and also highlight some strategic benefits.

The corporate brand is special; it describes the firm that conveys and position at the back of the

offering that the customer will buy and use; it is a master brand and plays a pilot responsibility.

Some examples are Dell, UPS, Sony, IBM, and others. It is obvious as the branded house with

solutions brands consists largely of corporate brand with a descriptor and a platform to support

communication to broad company stakeholders (Aaker, D.A. 2004).

It is also important to point out that flourishing corporate brands relax on the basis of relationship

connecting strategic vision, organizational culture and corporate image.

The strategic vision is the focal element behind that house and communicate top

management‘s aspiration for what the company will achieve in the future.



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Organizational culture – is the inside ethics, attitude, and fundamental assumptions that

encapsulate the legacy of the company and expresses its significance to its members.

Culture manifests itself in ways that staffs in various positions have an experience of the

company they are working for.

Corporate image- is the view of the outside world about the company that has developed

over time. It includes the views of the media, customers, shareholders and the general

public.

Hatch and Schultz, (2001) depict in the diagram below the relationship of the factors that make for

success corporate branding. The strategic vision and company culture must consistently project what

the organization stance for and eventually a positive image. This corporate image is owned by the

stakeholders and is form over time from the totality of the company actions.

Figure 3: Foundation for Successful Corporate branding

In the light of the above, Hatch and Schultz corporate brand tool kit was applied in the organization

using a focus group interview and the result was huge potential for corporate branding of the

organization and five identity perspectives where used:

1. Actual

2. Communicated

3. Conceived

4. Ideal and

5. Desired



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The Organization’s Potentials for Corporate Branding:

1. Well Articulated Vision and Mission:

The organization has a well articulated vision and mission that is displayed in the company

reception, advertorial materials and at their website. However the solid value intention should beclarify to streamline communication as to what to expect and what is expected from various

perspectives thus better position the employee to appreciate and act upon the core corporate

values. To this end, the corporate branding pursue will be fully maximize thus fulfilled internally and

externally.

2. A highly Skilled and Committed Workforce

The organization has highly skilled and committed employee who are open and willing to live the

corporate brand currently if the organization can integrate further available resources more than its

competitors at its disposal that encourage complete employee engagement like increasing internal

relationship, robust HR policy, and step up its product brand to corporate brand to catch the spirit in

the organization Credo, then the company can direct what will be happening in the health insurance

industry in Nigeria. Hatton and Hilpern, (2010) said that to market an organization effective every

member of staff must live the brand. In other word, if the organization does not live the brand

internally, how would it delivered externally? And concluded that experts have agreed that

achieving this, requires engaging and motivating staff using the brand values themselves. The

employee must be consistent in what they say and do, be people of accountability and responsibility

in conduct and behaviour. In other words, the staff must be connected to the corporate brand value

and exemplify with whoever comes in contact with them.

3. A well structure Organisational Chart

It current organizational structure also support corporate branding and the organization can make it

more coherent yet open to facilitate free communication with space for propositions, sharing of

apprehension; and with the level of commitment as well as dedication in the organization,

employees should be encouraged to internalize and deliver the company Credo.

The eventual outcome will be strong reputation for excellence services to all stakeholders. The

decision making process in the organization support corporate branding and should further be

enhance to support complete loyalty and extra mile commitment. That is, having the brand values

serve as the guiding principles for running the business.



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4. High Market Potentials for Corporate Branding

In addition, there is also huge future in the health insurance industry that if the organization can

align its current corporate and employee values together by equipping them to exhibit the core

value at work and in their lives, embarking on the journey of corporate branding is a plus and the

employees will become corporate brand ambassadors.

The framework below further explains why corporate branding is critical success factor to Mediplan

by way of brand and reputation leadership resulting in alignment of objectives and activities at all

levels.

Source: Adapted from Balanced Scorecard Collaborative 2003 cited in (Schreiber, 2008 Brand and Reputation: Leadership

Perspective)

As shown above in the framework, corporate branding will provide the company with a structure for

corporate strategy and governance thus enhance coherency in its corporate communication.

5. Legacy and Success business heritage Advantage

The organization has profound legacy in the business arena in Nigeria particularly in its board of

directors that will help strengthen its corporate branding and these are good stories that the

organization could use to add authenticity of the corporate brand and differentiation to completing

brands. Example GE tracing itself back to Thomas Edison days; Honda engine progress going back to

the 1940s and 1950s all help in shaping the brand today.



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6. The Nature of Business

Mediplan Healthcare Ltd is in the service industry and this weighty service element provides the

platform for corporate branding. How? Considering it current sector potential and as a player, if the

organization come into view as occupied, interested in customers, empowered, more approachable,

and proficient, then going into corporate branding will attract liking, esteem, and eventually respect

from all the stakeholders.

That is, if the current CEO/MD of Mediplan Healthcare Ltd with his vast expertise in the health

insurance can be the visible spokes person like Bill Gates at Microsoft, Dangote at Dangote Group of

Companies, Michael Dell at Dell and Richard Branson at Virgin, the company will stand out getting

involve in corporate branding. The CEO/MD has to be an epitome of the brand values

7. Financial Soundness and IT Robustness

Another potential advantage for considering corporate branding initiative for Mediplan Healthcare

Ltd is it financial soundness and information technology strength. These core strengths will help the

organization leverage and execute a successful corporate branding as well as sustain it over time.

8. Positive Organizational Climate

The company also has innovation, quality, and customer concern as bedded in it corporate climate

and these three key drivers commonly tinted priorities for company brands and with that budding,

Mediplan has what it takes for corporate branding initiative. Inclusively too, the generic nature of

offerings and high tendency for similarity in services offering in the industry also makes corporate

branding initiative as inevitably strong point of differentiation for Mediplan Healthcare Ltd.

Finally, an interview with the management of Mediplan Healthcare Ltd reviewed that they all

appreciate the managerial challenge of corporate branding and the conflicts that arises balancing

between opposing forces during the various stages of corporate branding process. The ability to shift

between the different stages is fundamental and the diagram below illustrates a framework for

strategy Brand Management decision.



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Source: California Management Review, 2003

The conflicting areas in deciding whether corporate branding is an option are highlighted in the cited

framework and having carefully considered that along with the management team, the decision for

corporate branding was viable. [Task 3 word: 1219]

Recommendation and Validation for identity Mix and Corporate Brand

Several definitions of organization identity have been proffered and for the purpose of this

assignment I will go with the definition of Pratt and Foreman cited by Fombrun and van Riel, (2010:

p67) in their book ‘Essentials of Corporate Communication’ that organizational identity include

distinctiveness of an organization that its associates agreed are central, distinctive, and enduring

(Pratt and Foreman, 2000). In other words, this attributes are critical, unique and exist within the

organization.

In order to have a sound recommendation having examined the company corporate character,

potential for corporate branding and identified its stakeholders, it is fundamentally necessary to

assess as well as validate the internal characteristics in line with centrality, continuity and

uniqueness as a guide to proffering an identity mix that enhance it corporate communication

message eventually corporate reputation.

To this end, the centrally shared characteristics as sample in the organization are



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- Integrity, frankness, commitment, dedication, responsiveness, promptness, accountability,

trust, quality, professionalism, and excellence

Continuity Characteristic

-

Integrity- Heritage

- Goal –orientation

Uniqueness characteristic

- Promptness and speed to claim settlement, discipline, trust, openness, and responsiveness

to client needs

The exercise resulted in the above characteristics in each section and further analysis was carried

out in order to substantiate the gap between the management team and the employees.

The management team under each of the following headings had the following characteristics

Central Shared Characteristics

- Integrity, Promptness, responsiveness, performance, goal-orientation, effectiveness and efficiency,

commitment, resourcefulness, professionalism, innovation and creativity, value –oriented.

Continuity Characteristics

- Integrity, goal-orientation, promptness.

Uniqueness characteristics

Here there was near 95% similarity of characteristics except openness and trust that management

team included but the employees did not. A comparison shows that there are slight gaps in centrally

and continuity characteristics and with a synergy at uniqueness characteristics.

A further analysis comparing all of the above characteristics with the Mediplan Credo shows that

both the management staff and the employees know the company core values. However, experts

have opined that there is huge gap between knowing and living the core values; relating and

connecting to the core values.



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Going by earlier evaluation of the company corporate character and attempting to align with above

centrally, continuity and uniqueness characteristics exercise; identity mix that would be appropriate

for both internal and external stakeholders is becoming clearer with focus on

- Integrity, promptness, responsiveness, innovation, trust, professionalism and openness.

The corporate identity Mix (Birkigt, K and Stadler, M.M, 1988) Proposal for Mediplan

The corporate identity mix of the organization should constitute a balance using communication,

symbols and behaviour in the right mix to achieve a consistent corporate image.

1. The communication:

The verbal message should emphasize promptness, responsiveness and professionalism and

innovation. Mediplan Healthcare Ltd is marketing medical services solutions and benefits that

are intangible and demand high level of expertise, swift action in knowing what to do and

meeting clinical needs of patient anywhere anytime once they are contacted. The message

should be targeted at their key audience – customers and potential prospects, healthcare

providers, regulatory authority and internal customers. The message should also emphasize

integrity and openness (transparency) to all stakeholders to seek for explanation on anything

they wish to know which are not explicit at moment.

The company also do not sponsor/engage in verbal message via media except during advertorial

for recruitment. The company has to strategize on how to balance up.

Internal communication also should be introduce and sustain in order to bridge the slight gaps

between the management and the employees as to what the core characteristics of the

organization are and the CEO, all management team should live and walk what they say.

2. Behaviour

The action of the company should gear towards creating different healthcare solution plans with

different benefits for different strata of society thus making it possible even for the unemployed

to be able to access quality healthcare if the need arises. For instance the company has an

internal reputation of prompt claims settlement and a more innovative way of doing it is using e-

fund transfer/ electronic banking with arrangement with their banker thus reducing cost from

both ends should be introduce and indeed show to stakeholder what the organization stance

for.



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Employees that have daily contacts with various stakeholders should be train on certain

behaviour display during services delivery, sales negotiation and other critical behaviour that

communicate the corporate identity.

3. Symbolism

The company has a logo as you can see below and can be redesign to emphasize major

characteristics that communicate it identity and in alignment with its stakeholders. The fonts

and colour should be consistent anywhere the logo is used or displayed.

The Company Logo

A tagline should also be use to explain the name further and what the company does. Lapel for

staff use should be introduced.

Birkigt and Stadler (1988) depict in the framework below elements of identity mix:

The Corporate Identity Mix Balance elements (Birkigt and Stadler, 1988)

The diagram above explains the interplay and relationship between the three key elements of having

a balance in deciding on the right blend of communication.

Communication

Behaviour

Symbolism

Internal

Audience

External

audience

External audience

External

audience



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Implications

Political:

As a local operating organization there may not be any political implications as the current existing

laws do not restrict corporate branding so long as the exercise is within the prescription guiding

branding in the country. However, the multi-dimensional stakeholders that are involved in the

healthcare industry with varying degrees of influence could political sponsor bills that may halt

progress in the industry.

Financial:

Corporate branding requires huge investment and resources. However, considering the long term

contributions, Mediplan Healthcare is better position now with the available resources at it disposal

to shift from current product brand strategy to corporate brand strategy on all levels. In doing this,

care must be taken in balancing resources accordingly.

The federal allocation on federal civil servants to HMOs on a monthly or quarterly, and other

corporate organizations that are tired of managing their deficit medical budgets are buying into the

health insurance because of pooling factor, burden sharing principle and with this financial resources

coming in if prudently management, the journey to corporate branding will not be too challenging.

In conclusion, I strongly recommend that Mediplan Healthcare shift from product branding tocorporate branding to create a niche for itself. [Task 4 Word: 996]



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Appendix A1

The table below shows the distribution and responses from external stakeholders and total of 10

questionnaires with 20 items were administered to each organization

Questionnaire for Healthcare Providers (Hospitals) and Mediplan Clients

Descriptors Very Poor =1 Poor =2 Average=3 Good =4 Very Good=5

1 Does Mediplan Healthcare promptly pay medical

bills incurred by enrollees in its provider list?

2 How would rate the capitation payment by the

company?

3 How would rate the company response to your

complaints and enquiry on all issues as concern

your business relationship?

4 Are your healthcare needs within the coverage

adequately met? Please rate

5 How skillful and tactful are the employee of

Mediplan Healthcare in handling issues?

6 How explicit is the healthcare coverage?

7 How would your company relationship with

Mediplan Healthcare in the last 2 years?

8 Do you consider this relationship a mutually

beneficial one? Please rate.

9 If you where to suggest improvement, what would want improve about the relationship?

10 How interact and friendly is their online portal?

11 How long does it take the company to response to your letters or email

12 How would rate the sincerity of the company in

keeping to its promise?

13

How would rate the capitation and the

healthcare coverage per –patient bearing inmind the pool principle of resources?

14

Do you consider Mediplan Healthcare as straight

forward company in financial matters? Please

rate.

15 How would rate the healthcare services you are

receiving from providers?

16

If you where given a choice to choose between HMOs offering the same benefits, would you still choose Mediplan Healthcare?



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17 How would rate the health insurance industry in

Nigeria?

18 How you rate Mediplan healthcare solutions

against other HMOs?

19 Describe Mediplan Healthcare in two words

20 What else do you to say about Mediplan Healthcare Ltd

APPENDIX A2: Responses

External Stakeholders Very strong

disagree =1

Strongly disagree =

2

Partial agree =3 Agree = 4 Strongly agree = 5

1 Compact Manifold 40 60

2 British America Tobacco 15 50 35

3 Linkage Assurance Plc 30 50

4 Eurobridge Industries 10 30 25 35

5 BI-Traxxcent 5 15 35 45

6 Royal Infirmary Hospital 10 40 35 15

7 Crystal Specialist Hospital 10 5 20 30 35

8 EKO Hospital 5 10 25 45 15

9

10

JON KEN Hospital

Gold Cross Hospital

3

2

5

10

32

40

35

30

25

28



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Methodology for Appraising Corporate Character

A personification approach was adopted in appraising the corporate character of the organization

and to help in identifying the potential traits that make the corporate personality as well as evoke

the idea of what make the organization different in the eyes of the stakeholders and trust level both

internally and externally.

Four study focus groups where generate to give descriptive adjectives of the organization character

and two represent their internal stakeholders and two external stakeholders to enable me have an

objective comparison and an informed conclusion.

The groups where randomly selected from a list of 50 employees, 30 corporate clients and 50

healthcare providers hospitals in Lagos and the breakdown is as follows:

Internal Stakeholders:

Top Management Staff = 5 Managers

Other employees = 10

External Stakeholders:

Customers (companies) 5

Healthcare Providers (Hospitals) = 5

This exercise was to help me understand in-depth the dominant personality/character mindset that

exists in the company and what the key customers and stakeholders perceived as the company

character.

The managers were asked to each describe the company character with five adjectives and the same

process was repeated with the other employees. At the end a total of 75 adjectives where

generated; and out which repeated adjectives were eliminated and what was left after the process

was 40 adjectives.

The mission, vision, and advertorial materials of the company where also analysis to validate the

final list of items in the first exercise to established if it reflect the main themes used to promote

corporate character internally and externally.

At this point my aim was to identify specifically the dimension of corporate character common to

what the organization holds as their credo as highlighted above in the diagram.



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The outcome of the appraisal shows there was slight gaps between management perspective and

what the other employees perceived as the Mediplan corporate character.

Questionnaire Design

Based on the available collected and harmonized items, questionnaires of 20 items was evolved

using five point Likert –type scale with very poor (1) to Very good (5) and administer to staff of key

Mediplan Healthcare external stakeholders, employee that have contact with customers, healthcare

providers (hospital) and that put the total questionnaire administered to both customers, hospitals

and employee at 100 questionnaires. The total of 90 of the questionnaire were completed and

returned.

Company Background

The company started operation in Nigeria in 2001 in the health insurance industry as a limited

liability company though with strategic alliance for foreign evacuation in cases of medical

emergency.

The company initial share-up capital was N100 million, fully paid and it was among the first 5

accredited national health insurance companies to lunch the National health insurance scheme in

the Country.

After three (3) years of operation and the need for strategic repositioning of the brand as a national

insurance company instead of regional as perceived in the market resulted in name change by the

board of directors and happened in January 2004.

The company immediately positions itself as prefer healthcare maintenance organization (HMO) in

the country because of its attractive capitation and prompt payment of bills to other stakeholders in

the chain of care delivery. However, it was attributed to its affiliation with then Allstate Trust Bank

and competition were by this financial strength.

However, after the extinction of the Bank because of corporate governance issues it appears things

are not longer looking as it was when I was there as the Head of Marketing and Business

Development.



TMF-MCR-JUNE 2011-13955174

The company has staff strength of 50 employees, 5 regional offices and with head office located at

Victoria Island, Lagos- Nigeria.

Structure of the organization

The Organization somehow runs a decentralize structure and the regional offices are head bymedical directors who manage and coordinate the operations of their respective regions. There are

other functional areas like administrative officers, Marketing and Business Development officers,

and Enrolment officer.

The Managing Director manages and oversee the running of the entire organization with the

assistance of the head of each department that make up the management team of the company.

The board of directors meets from time to time to review operation and approve policies put

forward by the management team. The board of directors in Mediplan Healthcare Ltd is so powerful

that it has the power to sack any of the management team whose performance is unacceptable

though with the support of the Managing Director.

The organogram below depict the structure of the organization

Managing Director

Head, Medical

Operation

Head, Human

Resources and

Administration

Head, Marketing

and Business

Development Head, Accounts

and Finance

Medical Directors

Human Resources

and Administration

Team

Marketing and

Business

Development Team

Account and

Finance teams



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Product Portfolio:

The organization has basically two types of products – corporate products and private products.

Each of these products is further broken down into – basic health plan, Medium Health Plan and

Comprehensive health plan with medical benefits varying according to plan. However, they also

offer specialize health packages like the travel health insurance, pre-employment check, annual

medical examination and medical consultancy to general insurance companies on medical issues.

Market Position and target market:

The organization is among the top 5 health insurance maintaining a relative position of 3rd

in the

industry. At the moment, their key target markets are the corporate organizations with 10 and

above employees, state ministries, territory institutions and private individuals.

Market Conditions and Competition

The market conditions are not too favourable because there is no enabling law that made it

compulsory for employers to offer medical coverage for its employees thus medical coverage in

Nigeria is more of a company choice. The regulatory body of the health insurance also does not

have enforceable authority to ensure strict control, measure and framework to ensure uniformity in

pricing and medical coverage thus giving room for stiff competition in pricing instead of value added

services.



TMF-MCR-JUNE 2011-13955174

Reference:

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identity, image, and culture in organizations, Oxford: Oxford University Press

http://www.marketingmentor.com/





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Hatton, A and Hilpern, K (2010) the 20 minutes…building brands internally. Online:

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http://www.instituteforpr.org/






TMF-MCR-JUNE 2011-13955174

Title page:

Article on Stakeholder Impact on Reputation

For

Publication in the National Health Insurance Scheme Quarterly magazine

Candidate Declaration:

‘I confirm that in forwarding this assignment for marking, I understand and have applied the CIM

policies relating to word count, plagiarism and collusion for all tasks. This assignment is the result of

my own independent work/investigation except where otherwise stated. Other sources are

acknowledged in the body of the text and/or a bibliography is appended. The work that I have

submitted has not previously been accepted in substance for any other award. I further confirm that

I have not shared my work with other candidate.’

Total words Used: 2171

CIM NO: 13955174



TMF-MCR-JUNE 2011-13955174

Contents:

Title Page...............................................................................................................................1

Overview................................................................................................................................3

Historical Perspective............................................................................................................3

Practitioner’s Perspective.....................................................................................................3-4

Critical Appraisal of ways in which key stakeholder influence organization........................4-6

(A case of Mediplan Healthcare)

Critical evaluation of other forces influence on the organization’s reputation....................7-8

Recommendation................................................................................................................8-10

References...........................................................................................................................11



TMF-MCR-JUNE 2011-13955174

Overview:

What is stakeholder?

According to Van Riel and Fombrun, (2010: p162) defined the term stakeholder as ‘‘any

group or individual that can affect or is affected by the achievements of the organization.’’

Also the business online dictionary defined the term stakeholder ‘‘as a person, group or

organization that has direct or indirect stake in an organization because it can affect or be

affected by the organization’s actions, objectives, and policies’’ (Online Business dictionary,

2011)

Historical Perspective of Stakeholders:

The term stakeholder can be trace back to 1930s when it first appears in the management

literature and many research works are going on covering different areas on the

management of stakeholders. However, the evolvement going on in the healthcare sector

globally has caused a shift from the traditional approach to healthcare delivery in the

industry to a more competitive and integrated multilevel chain of parties’ involvement in

the care delivery circle. This has called for a strategic approach in managing and controlling

all parties as their actions grossly impact on the organization reputation either

positively/negatively, today these parties are refers as stakeholders.

Practitioners’ Perspective on Stakeholders impact on reputation:

To further validate the important of establishing stakeholder impact on reputation of health

maintenance organizations, three managers of other HMOs – Total Healthcare Trust, Multi-

shield, and Healthcare Int’l where interviewed and the following are extract from the

session:

‘‘Stakeholders in the healthcare industry in Nigeria are powerful and not consistently

assessing the consequence of their action on the organization is suicidal’’ (Manager, Total

HealthTrust, 2011)

‘‘ In Nigeria where Medical Directors are key stakeholders and to a large extend determine

what happen in the sector form the strategic policies formulation team at the political level,



TMF-MCR-JUNE 2011-13955174

it will be the undoing of any HMOs in Nigeria not to take such players seriously…’’ (Femi

Oyegade, Multi-shield Healthcare, 2011)

‘‘…ignore them and you pay the price, recognize them you enjoy the benefits. It is a choice

that every manager must make and deciding as often as possible to scan the environment in

order to establish what implications their actions will bring on the organization…’’(Manager,

Healthcare Int’l, 2011)

It is obvious from the above statements that assessing stakeholder impact on the

organization’s reputation is critically important and from a holistic perspective, most

managers who understand the long term implications appreciate it.

Critical Appraisal of Key Stakeholders influence on organization Reputation: A Case of Mediplan Healthcare

To fully understand the influence of key stakeholders on the organization it will be

important to know who the key stakeholders are. The framework below shows Mediplan

Healthcare key Stakeholder:

Figure 1: Source: 2011 Organization’s corporate journal



TMF-MCR-JUNE 2011-13955174

Research and Analysis:

The Mendelow framework and focus group interview will be use to analyze the relative

individual power and interest each stakeholder has in influencing the organization

reputation. The matrix below shows the kind of associations which organizations typically

might create with stakeholder groups in the different quadrants with various strategies to

adopt in managing its reputation.

Level of Interest

Power

Low High

Low A Minimal effort B Keep informed

High C Keep satisfied D Key players

Source: Adapted from A. Mendelow, Proceedings of the Second International Conference on Information Systems, Cambridge, MA, 1991.

Using the above matrix to categorize the organization’s stakeholders, the following groups

resulted in the process looking at the degree of influence each of the stakeholders has on

the organization’s reputation and consequence of their actions on the organization’s

reputation if not address.

1. Low Interest and Low Power Quadrant

None of the company’s stakeholder

2. High Interest and Low Power Quadrant.

Corporate organizations

3. Low interest and High Power

Shareholders

Legislature

4. High Interest and High Power.

Employee and management

Healthcare Providers

Enrollees(Customers)

Regulatory authority (NHIS)



TMF-MCR-JUNE 2011-13955174

All the stakeholders in high interest and high power quadrant are critically important to the

continuous operation of the organization and this group is currently influencing the

reputation of the organization.

Second Research and interview with Management of the Organization

A focus group discussion and interview including all the management and middle

management staff was fixed to also ascertain the degree of influence the key stakeholders

in the high interest and high power quadrant has on the reputation of the organization.

Employee and Management:

As deduced from the discussion and analysis of responses, it was obvious that the policies,

structure, culture, strategy and communication of the organization were greatly influence

by this category of stakeholders.

A recent survey by KORN/FERRY International – 2003 corporate reputation watch survey on

CEOs reviewed that the kind of treatment management melt out to their employee

influence an organization reputation by 37% and this support the findings in the interview.

Healthcare Providers (Hospitals)

These groups of stakeholders are a vital link in the chain of care delivery in the HMO

arrangement. They are made up of Physician, Nurses, Pharmacist, Dentist, Radiologist,

Hospital Administrators, and other auxiliary staffs. Base on my discussion and analysis of

certain cases bearing on price fixing between the HMOs, Hospitals and Regulatory authority;

it was clear the healthcare providers could influence company reputation either

positive/negative. Available data shows where healthcare providers have influence on the

company as follows:

Pricing policy of the organization,

Acceptable service coverage within the monthly capitation

Fee charge for case-by-case healthcare provision and several other cases.

The scheme overall policy framework as it where.



TMF-MCR-JUNE 2011-13955174

These analysis and discussions clearly point out as at today that the reputation of the

organization will be influence if these particular sets of stakeholders are neglected by the

company. For example the recent industrial action by Lagos State Medical Association of

Nigeria is a case in hand that validates their degree of influence on the reputation of any

organization. Hospital activities were paralysis in all public hospitals in the state resulting in

untold hardship to patients seeking medical attention.

Enrollees (Customers)

The actions of this group of stakeholders impact on the organization reputation is either

positively/negatively. The strategic framework of the organization and the continuous

existence of the organization is largely influence by this group. They have the power to

demand their employer contract another HMO. Meaning any negative action will impact on

Mediplan reputation grossly.

Regulatory Authority (NHIS)

The policy and strategic framework of this stakeholder to a large extend influence what

goes on in the industry as a whole. Their actions and policies determine the strategic and

tactical focus most HMOs adopt including Mediplan. They are interest in every facet of the

industry and have the power to cancel/suspend the operating license of Mediplan

Healthcare. For example, they are in-charge of accrediting all HMOs and a recent increase in

the security deposit affected some HMOs financial reputation viability. [Task 1: work: 1016]

Critically evaluate, using relevant examples, the extent to which other forces might

influence the organizations’ reputation:

The following are other external forces that also influence the reputation of MediplanHealthcare:

Lack corporate Governance structure:

This is a fundamental factor that impede on the reputation of any organization over time

when it is absence. The Pfizer case in Northern Nigeria is a recent example that resulted in

dead and permanent medical complications of over 100+ children and the company

reputation was grossly influence particularly in the northern part of Nigeria. Another



TMF-MCR-JUNE 2011-13955174

example is the Enron case; this did only influence the reputation but resulted in the

complete extinction of the company.

Print Media

The media could positively/negatively influence the reputation of any organization

depending on what side of coin they are operating on. The recent publication in the Punch

news paper of 20th

April, 2011 expressing how one of the HMO in collaboration with the

state government in Nigeria facilitated healthcare services to state civil servants is a positive

influence on the company reputation. Survey confirmed that an organization reputation is

influence by 48% by print media. (Forbes CEO Forum, 2003) and across European CEO

Research shows an impact of 76% on reputation.

Services Problems

In the healthcare industry the quality of services received by the patient from the hospital

could have a chain affect on the HMOs reputation. The response time for authorization to

treat cases that are not covered within the generic list of healthcare benefits provided by

the Mediplan Healthcare for pay per care if not prompt and swiftly attended to, and

eventually the patient developed complication will definitely be a minus on its reputation

particularly when it is a consistent behaviour of working with the organization.

Financial performance:

Return on investment and sound balance sheet that shows positive financial performance is

a plus on the reputation of the organization. When the investing public and financial analyst

sees upward trend of consistent growth in business the reputation of the organization is

positively influence.

For example, there is an HMO currently in Nigeria that closed shop because of bad financial

management and the shareholders decided to disinvest. The reputation of the management

was been questioned by various players in the industry and resulted to no business.



TMF-MCR-JUNE 2011-13955174

Reliability and Creditability

In the service industry reliability and creditability is critical and every important. The

intangible nature of services and how vitally important the service offer by Mediplan

Healthcare via a network of hospitals is to life, reliability is an important factor if

compromise will affect the reputation of Mediplan Healthcare Ltd.

Customers

The customer is every important external force that drastically influences the reputation of

organization if their expectations are not met any action by this group will affect the

organization. They carry their action by way of public protest, going to media to complain,

write the regulatory authority etc. Organizations that understand this truth manage their

customers as king. They have the power to bring to nothing the reputation of any

organization if not treated well. As matter of fact, they are the most powerful external force

and research shows an impact of 78% on a company reputation (Forbes CEO Forum, 2003).

[Task 2: Words 488]

Recommendation for Better Management of the Organization’s Reputation

Reputation management is becoming a top strategic priority among CEOs and increasinglybe managed from a strategic standpoint. To this end, and in the light of the above forces as

well as stakeholders of Mediplan Healthcare Ltd, I recommend thus:

1. Improve Employee commitment:

Mediplan Healthcare should put in place support and practice structures that encourage

employee engagement in the form of resources, explicit communication internally is

important, social support that touches on professional as well as personal related issues

among coworkers and managers should be encourage, mentorship programs and

performance feedback should be a regular session in the company. When this is done the

atmosphere in the organization will be total commitment and attitude change.



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2. Value and Priorities:

The whole essence of business is value and priorities; what it considered most important.

Mediplan should further unearth what it will not compromise no matter what? Build and

manage it reputation around this priorities. In the service industry creditability, reliability,

customer concerns are some drivers of corporate brand that organization can leverage to

manage its reputation. The organization should strive to delivery on it corporate brand

promise, stand behind it offerings and be continuously innovative.

3. Concern for customers

Mediplan Healthcare should in actuality show concerned about its customers and treat each

customer irrespective of social status with respect. They should make customer experience

a top priority cascaded down the chain of care delivery as well as a priority for recruiting

healthcare providers into their network. They should be willing to refund back expenses

incurred from out –of pocket for care that should have been provided by them

4. Good Media Relationship:

Another recommendation for Mediplan Healthcare in managing their reputation is to

enhance their relationship with the print media by way of be transparency, creating news

worthy publications in form corporate social responsibility, sponsorship and free medical

education around the neighbourhood. The media should be seen as friend and once the

company operations are open and transparent, they will be the one projecting the

reputation.



TMF-MCR-JUNE 2011-13955174

In addition the following framework should be adopted in managing the various

relationships in order to enhance its reputation:

Stakeholder Importance categorization

Environmental

improbability

Critically Importance Important

but Not Critical

High

improbability

Stakeholder

Partnerships

Boundary

Spanning

Low

improbability

Stakeholder

Management

Scanning and

Monitoring the

Environment

Source: Adapted from A. Mendelow, Proceedings of the Second International Conference on Information Systems, Cambridge, MA, 1991.

This will enable the organization group it stakeholders both internal and external along this

line for effective management.

1. Critical Important with environmental improbability high- this group of both internal

and external stakeholders require proactive measures by the management to

constantly ensure its reputation is in the positive weight by doing boundary spanning

that is focus and specific.

2. Critical Important with environmental improbability low – management focus in

stakeholder management is monitoring of trend and scanning of environment for

forces and keep them informed.

3. Critical with environment improbability low- management should focus in customer

market research, lobbying effort, initiate public relation with the pressure group etc

in order to manage it reputation.

4. Critical with environmental improbability high- management should focus on

stakeholder partnerships to manage it reputation. This type of strategic move allows

the organization to build bridges as they pursue common goals.



TMF-MCR-JUNE 2011-13955174

To properly integrate and manage both the internal stakeholders as well as the external

forces impact on the organization reputation there is a need for the organization to

completely align its structure from the command and control nature that stifles innovation

to a more flat structure that allow for flow of information on both direction. The staff should

be allow to act on behalf of the management with a define level of permission.

Its strategy framework should support collaboration, staff support, innovation and openness

for constructive feedback; the company should also align its culture to be more of dialogue,

association, encourages independent thinking and action as well as inclusiveness. The

communication should also be more specific to address each stakeholder concern rather

than generalize message using the necessary medium.

Conclusion:

Reputation management is an ongoing strategic responsibility that the management must

take as a top priority by constantly engaging all key players toward ensuring the

organization has positive image.[Task 3: Words: 667]



TMF-MCR-JUNE 2011-13955174

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