Primary File

Patches Enterprises Considers a Name Change

Timothy P. Brotherton, Donna A. Smith
January 1, 2017
Strategy & General Management
3 pages
brand equity, brand loyalty, brand identity, customer reactions, strategy
Student Price: 
$4.00 (€3.72)
Average rating: 

This critical incident concerns the owner of a small used car company with two dealership locations in Michigan that was considering a name change in order to attract more customers. The controversy revolves around whether switching from a long-term, but less than ideal name, “Patches Enterprises,” to a new, but more appropriate name would be worth the time, cost, and effort to implement the name change. There was a potential for confusion because the firm uses a corporate name (Patches Enterprises, Ltd.), two dealership location names (Patches, and Warner Auto Sales II), and a website name (, all of which were different. Would a common brand name be beneficial? In addition, the firm needs to assess the potential benefits of the name change and consider the reactions of their current customers and suppliers.

Learning Outcomes: 
  1. Analyze the potential impact of a firm’s brand name on its operations.
  2. Assess the risks and rewards of changing an entity’s brand name.
  3. Evaluate the impact of a brand’s name change on the company.
  4. Propose a plan of action for the decision maker struggling with the issue of a name change.