First of all, the following chapter will deal with the framework of brand evaluation. To give an idea of the internet service provider Yahoo!, the company will be introduced in the first part.
The next part concentrates on the role an established brand plays and what effect it has.
The following chapter will point out what it means to lead a brand and which value it has to a company. As a matter of course, the conclusions will be related to the special case of Yahoo!.
To provide a general survey of the topic of brand evaluation, the next chapter deals with the economical and judicial frame. It explains the situation within the topic of intangible assets and their special treatment concerning the balance sheet. In Chapter 2.4.2 the different causes for brand evaluation will be described and the cause of acquisition will be determined as the appropriate cause for the present case of Yahoo!. Chapter 2.5 concentrates on the necessary requirements for a sufficient and objective brand evaluation, especially in the case of acquisition.
Before three of the most important and established methods of brand evaluation will be analysed, the large number of all current methods have to be categorised. For that reason the third chapter will start with the classification of methods. After regarding the three possible categories, the last part will come to the decision for just one category, which comes into question for the present case.(...)
After these three analyses, it is possible to overlook the whole topic of brand evaluation. Chapter 2.5 defines the general requirements for an objective method of brand evaluation. The following chapters will survey three of the most popular models and will point out their advantages and disadvantages. In the result conclusions can be drawn from the accomplished analyses. In this way a new suitable method of calculation will be developed in Chapter 4.2. It is a try to find a solution for the problem of the current methods’ weaknesses and to create an objective method, which regards the most important criteria and fulfils the requirements for an impartial evaluation.
Table of Contents
1. Introduction
1.1 Definition
1.1.1 Brand
1.1.2 Brand Equity
1.2 Problem Definition
1.3 Course of Work
2. Framework of Brand Evaluation
2.1 The Internet Service Provider Yahoo!
2.1.1 The Company
2.1.2 The Funding
2.2 Brand Functions
2.2.1 Producer’s View
2.2.2 Sales Representative’s View
2.2.3 Consumer’s View
2.2.4 Yahoo!’s View
2.3 Meaning of Branding
2.4 Situation Analysis
2.4.1 Economic Framework
2.4.2 Acquisition as Relevant Cause for Brand Evaluation
2.4.3 A Brand’s Value in the existing Accounting Standards
2.5 Method Requirements for the Cause of Acquisition
3. Methods of Brand Evaluation
3.1 Classification and Choice of Methods
3.1.1 The Different Approaches
3.1.2 Finance Orientated Methods
3.1.3 Behavioural Science Orientated Methods
3.1.4 Integrative Methods
3.1.5 The Choice
4. Methods of Brand Evaluation
4.1 Presentation of the Selected Methods Regarding the Case of Acquisition
4.1.1 Brand Rating
4.1.1.1 Method Presentation
4.1.1.2 Critical Assessment
4.1.2 Millward Brown
4.1.2.1 Method Presentation
4.1.2.2 Critical Assessment
4.1.3 Interbrand
4.1.3.1 Method Presentation
4.1.3.2 Critical Assessment
4.2 Development of a new reliable Method
4.2.1 Framework
4.2.2 Application
5. Conclusion
5.1 New Method as Objective Solution
5.2 Outlook: A Standardised Method
Appendices
Appendix 1: Model of the Interbrand Brand Valuation I
Appendix 2: Model of the Interbrand Brand Valuation II
Appendix 3: Yahoo!’s Brand Value Calculation based on Intebrand
Appendix 4: Yahoo!’s Brand Value by changing only one Figure
Appendix 5: Optimistic Calculation on Yahoo!’s Brand based on the new Method
Appendix 6: Microsoft Steps up Battle over Yahoo! Board
Research Objectives and Core Themes
This study aims to investigate and develop an objective methodology for valuing brand equity, specifically within the context of corporate acquisitions. The primary research focus is to determine a reliable approach for calculating brand value, using the attempted takeover of Yahoo! by Microsoft as a practical case study to identify the limitations of existing evaluation methods and propose a more comprehensive solution.
- Analysis of established brand evaluation frameworks and methodologies.
- Investigation of financial, behavioural, and integrative valuation techniques.
- Evaluation of Yahoo! as a global internet brand and its specific business requirements.
- Development of an optimized brand valuation method combining financial rigor with soft factors like brand loyalty.
Excerpt from the Book
1.1.1 Brand
To provide a basis for the present study, it is necessary to specify the domain of the construct by discussing the different possible definitions. The following part will delineate what is included in the definition of brand and brand equity to point out which comprehension will form the basis for the present study.
In literature, one can still find a large number of different definitions for the word brand. This is due to the fact, that the numerous research areas have different comprehensions of it and that brand’s functions changed to a great extent over the years (Bruhn 2003, p. 180). To date there is no standardised terminological delimitation for it (Kriegbaum 2000, p. 27).
Basically one can distinguish bifocal perspectives; the formal one and the one which regards the content. The formal definition contains the outer marking of goods. Marking a good means to change an anonymous product into a branded one (Bruhn 2004, p. 478). In 1960 the American Marketing Association defined a brand as “a name, term, sign, symbol, or design, or a combination of them, intended to identify the goods or services of one seller or group of sellers and to differentiate them from those of competitors” (Kotler 2006, p. 418). The German Trademark Act is very similar to this formal consideration. In § 3 it is appointed that every sign, particularly names inclusively names of persons, images, letters, numbers, audible signals, three-dimensional forms inclusively the form of the product or its package and other designs inclusively colours and colour combinations, which are able to differentiate the product from those of the competitors, can be protected by law (§ 3 Trademark Act). Thus the formal perspective of a brand regards it as a legally protected sign, which is used by companies to mark and differentiate their products from those of their competitors (Bruhn 2004, p. 479).
Summary of Chapters
1. Introduction: This chapter defines the core concepts of brand and brand equity, outlines the problem statement regarding the valuation of Yahoo! in the context of a potential acquisition, and describes the course of work.
2. Framework of Brand Evaluation: This section introduces the company Yahoo!, explores the functions of a brand, and analyzes the economic and accounting frameworks relevant to intangible assets and brand valuation causes.
3. Methods of Brand Evaluation: This chapter classifies various brand evaluation methodologies into financial, behavioral, and integrative categories, discussing their respective strengths and weaknesses.
4. Methods of Brand Evaluation: This chapter presents a detailed assessment of specific methods—Brand Rating, Millward Brown, and Interbrand—and proposes a new, more objective method based on the findings.
5. Conclusion: The final chapter summarizes the findings, concludes that a more objective approach to brand valuation is necessary for acquisitions, and provides an outlook on future standardized methods.
Keywords
Brand Valuation, Brand Equity, Yahoo!, Microsoft, Acquisition, Intangible Assets, Brand Rating, Millward Brown, BrandZ, Interbrand, Financial Analysis, Brand Strength, Brand Loyalty, Valuation Methods, Corporate Finance.
Frequently Asked Questions
What is the core focus of this research paper?
The paper primarily focuses on the challenges of valuing brand equity during corporate acquisitions, using the specific case of Microsoft's attempted takeover of Yahoo! to test and improve existing valuation models.
What are the main research themes covered in the study?
The research themes include the definition of brand equity, the function of brands for different market participants, the legal and economic framework of intangible assets, and a critical analysis of current brand valuation methodologies.
What is the primary objective of the study?
The primary goal is to identify a reliable and objective method for calculating brand value that overcomes the limitations of transparency and subjectivity inherent in existing models.
Which scientific methods are employed for this analysis?
The study employs a comparative analysis of established brand evaluation methods (Brand Rating, BrandZ, and Interbrand) to identify their strengths and weaknesses against a set of predefined requirements for acquisition scenarios.
What content is addressed in the main body of the work?
The main body covers the business background of Yahoo!, the theoretical definitions of brands, detailed reviews of financial and behavioural science-oriented valuation methods, and the derivation of a new, optimized method.
Which keywords best characterize this work?
Key terms include Brand Valuation, Acquisition, Brand Equity, Yahoo!, Interbrand, Millward Brown, and Financial Analysis.
Why is the Interbrand method considered a "black box" in the study?
The study classifies Interbrand as a black box because the company does not fully disclose the algorithmic calculations or the specific weighting processes for components like the "Role of Branding Index" and the "Brand Discount Rate".
How does the proposed "New Method" differ from traditional ones?
The proposed method seeks to enhance transparency by replacing opaque indicators like the "Role of Branding Index" with more objective, measurable metrics such as "Brand Loyalty," and by utilizing standard financial market ratings for discount calculations.
- Arbeit zitieren
- Bachelor of Business Administration Leonie Matzick (Autor:in), Katrin Küsters (Autor:in), Torsten Krall (Autor:in), Thomas Kuhn (Autor:in), Gerhard Schumacher (Autor:in), 2008, "Yahoo!" - A case study about brand valuation, München, GRIN Verlag, https://www.hausarbeiten.de/document/115082
