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Disney and the holidays provide backdrop regarding calculating goodwill
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Carolers promoting goodwill
In addition to being a time of cussing at customer service representatives and buying clients and business associates gifts, the holiday season is when many businesses and individuals focus on goodwill that the monetary value of a business includes. For our purposes, this somewhat vague concept refers to the general positive reputation that a company enjoys that helps it generate business in its community.
On a general level, a desire for goodwill is why a company sponsors a little league team or donates something that a charity can auction off. A more specific example is Sears taking extraordinary efforts to deliver a second replacement elliptical machine after the apparently poorly screened independent contractor who tried to install the first replacement machine broke it midway through that process and drove away without any notice.
Disney is another company that is well-known for valuing goodwill, and this was apparent during my recent very nice trip to Disney World where I attended Mickey's Very Merry Christmas Party and saw some truly spectacular fireworks and holiday lights displays.
Disney earned my goodwill by meeting its high cleanliness standards and having managers at the Port Orleans Riverside Resort who were very helpful when I thought that I had lost the key to the safe in my room. Additionally, a merchandise manager helped me get a hard-to-find discontinued item and personally delivered it to my hotel.
Disney also provides a good example for one method of placing a monetary value on goodwill because it owns so many assets. This process involves establishing the price that Disney executives think that they could receive for the company and subtracting the value of all of the land, inventory, business equipment, and other tangible assets that Disney owns.
Other subtractions would be made for other projected sales and other factors, and the amount that remains would reflect the value of the goodwill of the company. Regardless of which method is used, the more goodwill that Disney and any other company has increases its value; this supports my theory that every business should treat its customers and staff well.
Please add any comments as additions to this entry or as e-mail to nelsonexaminer@gmail.com. Please remember too that nothing that I write can be considered legal advice.
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