Selecting a New Name for Security Capital Pacific Trust
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 corporate structure and a sense of unity within the work force. As a result, SCPT has no clear mission or vision towards the future success of the company. Furthermore, employees feel that SCPT’s brand name does not adequately represent the appropriate image it would like to portray to its industry. Also, employees believe that a successful brand image originates from the parent company, thereby creating successful sub-divisions. Employees feel that the region-specific name limits the company’s potential to expand to other geographical areas and further confuses potential clients regarding the SCPT’s mission and objectives within the industry. As a result, SCPT wants to avoid confusion and create a less corporate-sounding and more customer-friendly brand name which will be both effective and legally-compliant with state and federal trademark regulations. It also wants to differentiate itself from Security Capital Group (“SCG”), its largest shareholder. SCPT Vice President of Marketing and Business Development, Dana Hamilton in conjunction with Lippincott & Marguiles (L&M), developed a strategic brand development plan which will include a “Core Team” of eight executives hired to generate, choose and legally monitor potential brand names by creating screening processes and rules i.e. “The Eight Hurdles”, “Brand Image Criteria”, and “Types of Brand Names” so that it can choose the proper company trademark. I. SITUATION AUDIT
A. SWOT Analysis
SCPT faces many challenges and confusion regarding its current name. The prospects of changing its name can create potential benefits to the company, its employees, shareholders and customers.
i. Build a Unified Corporate Culture: One of the largest problems SCPT faces is that it is comprised of many different companies within its two main divisions, REIT and SCG Realty Services among 165 other individual companies. Some examples of confusion include its employees receiving his or her paychecks from various employers within the parent company because SCPT has so many different internal names. As a result, this thwarts the company’s ability to build a unified culture across the different companies. By creating a unified corporate name applying to all divisions, it would enable all its employees to feel a sense of unity and that he or she is working for the same company. As such, the employees will be able to build a unified corporate culture across the entire company.
ii. Create and Enable a More Cooperative and Cohesive Working Relationship for All Employees Throughout the Entire Company: Employees will no longer feel that he or she is working for different companies. If all employees recognize that he or she is working for the same company, this will be conducive to a more cooperative working environment amongst the employees and facilitate a more unified and cohesive workforce
iii. Clear and Eliminate Internal Confusion: In addition to the myriad of company names creating internal confusion within the parent company, it is also difficult for employees to fully understand and describe SCPT’s mission, purpose and objectives. By a clear, “property-sounding” brand name,...
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