Companies with reputations as good places to work have generated superior financial performance
Reputation plays a vital role in the success of any business, both external and internal. As an organization, it must initially establish its purpose and values to define the nature of the inner workforce, gaining the status of the desired place to work. Multiple studies confirm that financial success is generated mainly by focusing on instating a strong sense of determination inside the company (Gartenberg et al., 2019). Therefore, the more powerful and clear the in-house values among employees, the bigger the revenue may be generated.
A positive reputation and recognition as an employer inevitably attract more human resources accountable for more extraordinary skills than businesses with a non-existent or negative prominence. The status may be viewed as a strategic asset, that by drawing high-quality employees, sets barriers for the rivals, simultaneously increasing its market value and income (Kaya Özbağ, 2019). Hence, it is vital to establish a positive external image of the brand for the consumers and, most importantly, create a prosperous internal workforce, responsible for a firm’s triumphant financial performance.
Does artificial intelligence (AI) have the capacity to predict customer and competitor behavior?
Artificial Intelligence (AI) has become a vital tool for conducting multiple business objectives, including customer and competitor predictions. It allows for making a precise forecast that can be applied in future strategies. By combining previous data on the customers and their purchases, the AI algorithm can make forecasts about the likelihood of acquiring a company’s products by a specific segment of buyers (Antonio, 2018). Moreover, the firm may adjust their predictions according to their particular needs, which will correspond to client value, subsequently increasing marketing indicators.
The development of the big data field allowed to significantly strengthen the competitive advantage of the companies. AI allows evaluating the current market state and predicting its future behavior, uncovering possibilities to adapt the company’s strategies to the recent trends by knowing the opponents’ insights (Varmavuo, 2020). Therefore, AI can enhance not only the performance in the syndicate but also the rivalry recognition of the firm.
References
Antonio, V. (2018). How AI is changing sales. Harvard Business Review. Web.
Gartenberg, C. M., Prat, A., & Serafeim, G. (2019). Corporate purpose and financial performance. Organization Science, 30(1), 1-18. Web.
Kaya Özbağ, G. (2019). Examining the effects of dimensions of corporate reputation on firm performance. The European Proceedings of Social & Behavioural Sciences. Web.
Varmavuo, E. (2020). Factors affecting the success of AI campaigns in marketing: Data perspective [Master’s thesis, Jyväskylä University School of Business and Economics]. Open Science Centre.