I. INTRODUCTION Security Capital Pacific Trust (“SCPT”), a Colorado-based Real Estate investing firm along with Real Estate Investment Trust, (“REIT”), operates in conjunction with a property management firm which includes 165 individual property companies. It is contemplating changing its company name because its present name, SCPT is not effective, is misleading its employees, shareholders and other individuals in the industry. The company operates under various names which creates both internal and external confusion and has specific names tailored to its function or area. Using different brand names prevents the company from creating a …show more content…
As such, if the new name is not related to the original company and its functions, those employees may feel alienated.
i. Cause Confusion amongst Shareholders: For new investors who many have previously heard about SCPT, they may find that SCPT is no longer listed in NYSE when he or she decides to invest. Because SCPT built a reputation around this name, changing it may cause investors to not recognize the new brand which may cause further frustration and confusion.
i. Lose its Brand and Reputation: Throughout the years, SCPT along with all of its companies have worked hard to build its brand reputation. However, when the name is changed, much of its previous efforts may go to waste. For example, this situation is similar to Accenture, formerly known as “Anderson Consulting.” When the company created its new name in 2001, it struggled for many years to rebuild its brand recognition.
i. Recruiting Higher-Qualified Employees: By creating an effective, new name, SCPT can prevent potential employees from applying for the company without knowing anything about the company or the position, because he or she is confused about this company, thus resulting in more under-qualified candidates in the HR pool. In addition, a better brand image can attract more highly-qualified potential employees.