Strategic management

SR.NO

PARTICULARS

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EXECUTIVE SUMMARY

2.

CORPORATE SOCIAL RESPONSIBILITY

Introduction
Definition
AMWAY
Introduction
Meaning and history
Mission and vision
IMPORTANCE OF COMMUNICATION FOR

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AMWAY
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AWARD AND RECOGNITION

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SOCIAL RESPONSIBILITIES PERFORMED BY AMWAY 21

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FUNCTIONAL PATTERN

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SWOT ANALYSIS

CONCLUION

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BIBLIOGRAPHY

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INDEX

Strategic management

Executive Summary
Corporate

social

responsibility (CSR,

also

called corporate

conscience, corporate

citizenship or responsible business) is a form of corporate self-regulation integrated into

a business model. CSR policy functions as a self-regulatory mechanism whereby a business
monitors and ensures its active compliance with the spirit of the law, ethical standards and
national or international norms. With some models, a firm's implementation of CSR goes beyond
compliance and engages in "actions that appear to further some social good, beyond the interests
of the firm and that which is required by law.

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This executive summary will give you key facts concerning the Amway. These factswill help
to find out how well the Amway opportunity can match your business goals. Letsstart from main
component that is business. A business' purpose is to attract and keepcustomers. Its one
basic function is to reliably solve customer problems.

Introduction of CSR
Corporate

social

responsibility (CSR,

also

called corporate

conscience, corporate

citizenship or responsible business) is a form of corporate self-regulation integrated into

a business model. CSR policy functions as a self-regulatory mechanism whereby a business
monitors and ensures its active compliance with the spirit of the law, ethical standards and
national or international norms. With some models, a firm's implementation of CSR goes beyond

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compliance and engages in "actions that appear to further some social good, beyond the interests
of the firm and that which is required by law.
The aim is to increase long-term profits through positive public relations, high ethical standards
to reduce business and legal risk, and shareholder trust by taking responsibility for corporate
actions. CSR strategies encourage the company to make a positive impact on the environment
and stakeholders including consumers, employees, investors, communities, and others.

DEFINITION OF CSR
The term "corporate social responsibility" became popular in the 1960s and has remained a term
used indiscriminately by many to cover legal and moral responsibility more narrowly construed.

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Business Dictionary defines CSR as "A companys sense of responsibility towards the
community and environment (both ecological and social) in which it operates. Companies
express this citizenship
(1) through their waste and pollution reduction processes,
(2) by contributing educational and social programs and
(3) by earning adequate returns on the employed resources.
A broader definition expands from a focus on stakeholders to
include philanthropy and volunteering.

INTRODUCTION OF AMWAY

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Amway is the largest direct selling company and manufacturer in the world that uses
network marketing to sell a variety of products, primarily in the health, beauty, and home care
markets. Amway was founded in 1959 by Jay Van Andel and Richard DeVos. Based in Ada,
Michigan, the company and family of companies under Alticor reported sales growth of 2.3%,
reaching US$8.4 billion for the year ending December 31, 2009.Its product lines include home
care products, personal care products, jewelry, electronics, Nutrilite dietary supplements, water
purifiers, air purifiers, insurance and cosmetics. In 2004, Health & Beauty products accounted
for nearly 60% of worldwide sales. Amway conducts business through a number of affiliated
companies in more than ninety countries and territories around the world. It is ranked by Forbes
as one of the largest private companies in the United States and by Deloitte as one of the largest
retailers in the world.

MEANING AND HISTORY OF AMWAY:

What does the word Amway mean? Amway is an abbreviation for "American Way".
Great companies start with great ideas, and Amway is no exception. The idea came when two
Nutralite salesmen, Rich DeVos and Jay Van Andel were at the very top of a very successful
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MLM at the time; Nutralite was sold door to door. This was the 1950s, Nutralite was a single
entity company, and by the end of the decade, Jay and Rich had built a respectable business of
their own - approximately five thousand distributors were in their Both Mr. DeVos and Mr. Van
Andel knew how to move product - build on relationships. But what was needed was a way to
expand. A way that would allow them to multiply the efforts of what they alone could
accomplish. In 1959, the American Way Association was formed. This would be the chance to
grow and set the direction of a new entity. Rich and Jay immediately set out to find an initial
product to add to the line. They purchased the rights to Frisk, a household cleaner (which was
later renamed Liquid Organic Concentrate or L.O.C.).
In 1960, the American Way Association, now Amway, bought a controlling share in the
manufacturing facility in Michigan where LOC was made. What this meant is that there were 3
companies all using the Amway name. The Amway Sales handled product and distribution,
Amway Services did business related tasks (like insurance for distributors) and Amway
manufacturing, which produced LOC. By 1964, the three arms of Amway were all merged into a
single entity - Amway Corporation. The idea was by handling the manufacturing and distribution
of a product line, and then allowing a network of IBOs. This seemed like the only way to offer
what Jay and Rich originally envisioned - a solid opportunity where anyone with motivation
could excel, regardless of their background and status. This is a main part of Amway's business
philosophy. Not just products and not just sales, but a way to a better life.
Amway continued to grow under the co-ownership of Van Andel and Devos. In 1972, the
pair purchased Nutralite outright - they now owned the company they had started as employees
with.

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Amway continued to expand, reaching past the borders of the US to offer the same
opportunities in other countries:
- Australia - 1971
- Europe and parts of Asia - 1974
- Japan - 1979
- Latin America - 1985
- China - 1995
- Africa - 1997
- India - 1998
- Russia - 2005
- Vietnam -- 2008
Critics argued that the model wasn't sustainable and that growth was mathematically
limited. They cried, "Pyramid scheme!" Fifty years of steady growth has shown this criticism has
no basis in fact.
In 2008, Amway (now technically, Amway Global) reported sales of 8 billion. The
company is in 58 markets worldwide and manufactures more than 450 products. Amway Global
does business in more than 98 countries.
Rich DeVos is still alive, although he has passed the Presidency of Amway to his son
Dick. DeVos was named one of the richest men in America by Forbes magazine, with an
estimated 4.2 billion dollars in personal wealth (2009). DeVos owns the Orlando Magic
basketball team among other assets.Jay Van Andel passed away at age 80 in 2004. Mr. Andel's

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place at Amway Global is now held by his son Steve. At his death, Van Andel's net worth was
estimated to be 2.4 billion dollars.
The company is still thriving and still offers opportunity to individuals who have the desire to
build their own business. MLM is a proven business model that produces massive success for
individuals.

Global markets

According to the Amway website, as of 2011 the company operates in over 100 countries and
territories, organized into regional markets: the Americas, Europe, greater China, Japan and
Korea, and SE Asia/Australia.
In 2008, Alticor announced that two-thirds of the company's 58 markets reported sales increases,
including strong growth in the China, Russia, Ukraine and India markets.

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Direct selling
In direct selling, the sale is the culmination of many activities which involve matching
customer requirements to the goods or services offered.
The main benefit of this form of selling is that it allows distributors to focus on individual
customers and their needs.

Company Vision:
Corporate vision is a short, succinct, and inspiring statement of what the organization
intends to become and to achieve at some point in the future, often stated in competitive terms.
Vision refers to the category of intentions that are broad, all-inclusive and forward-thinking. It is
the image that a business must have of its goals before it sets out to reach them. It describes
aspirations for the future, without specifying the means that will be used to achieve those desired
ends.

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Warren Bennis, a noted writer on leadership, says: "To choose a direction, an executive
must have developed a mental image of the possible and desirable future state of the
organization. This image, which we call a vision, may be as vague as a dream or as precise as a
goal or a mission statement."
Core values include:

Safety Safety serves as a barometer of our companys overall success and is a specific measure
of our operating excellence.

Trust Trust is the mutual respect for and confidence in people. Trust recognizes the importance
of individuals and appreciates their diverse opinions. Trust compels us to share information and
encourage new ideas. It requires an open, honest, forthright manner.

Confidence Self-confident people take initiative, handle the unexpected, stand behind their
convictions and support the efforts of others. They take bold, innovative, creative actions,
capitalize on opportunities, make sound decisions quickly, and mobilize the best resources for
rapid action.

Teamwork Teamwork is personal involvement and collaboration in a team environment.

includes setting a common goal in support of business objectives, making an individual
commitment to the teams success and recognizing the success of the team.

Accountability Being accountable means every employee assumes ownership and

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responsibility for his or her own work, regardless of the job they perform. Being

accountable

means making decisions and holding oneself responsible for the consequences of those choices.

Doing Whats Right Doing whats right is being honest, ethical, and having personal and
professional integrity. It means consistently treating all people fairly, delivering on promises, and
taking personal responsibility for your actions.

Quality Quality is the primary determinant of customer satisfaction and loyalty, and it requires
employees to continuously provide internal and external customers with the right product or
service...done right...the first time. In todays increasingly competitive business environment,
better quality translates into better value for our customers and, subsequently, better value for
their customers-and this is the very essence of competitive differentiation.

Mission:
Most businesses have some form of mission statement ,whether they know it or not. For
example, other names for a mission include: founder's philosophy, statement of purpose, business
philosophy. An organization's mission describes its fundemental purpose and overall philosophy.
A mission statement (what we are) is different than a vision statement (what we want to become).
Mission statement:

Provides thrust and direction to the organization.

Cornerstone of all strategic planning.

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A mission statement is an organization's vision translated into written form. It makes
concrete the leader's view of the direction and purpose of the organization. For many corporate
leaders it is a vital element in any attempt to motivate employees and to give them a sense of
priorities.
A mission statement should be a short and concise statement of goals and priorities. In
turn, goals are specific objectives that relate to specific time periods and are stated in terms of
facts. The primary goal of any business is to increase stakeholder value. The most important
stakeholders are shareholders who own the business, employees who work for the business and
clients or customers who purchase products and/or services from the business.
The mission statement should be a clear and succinct representation of the enterprises purpose
for existence. It should incorporate socially meaningful and measurable criteria addressing
concepts such as the moral/ethical position of the enterprise, public image, the target market,
products/services, the geographic domain and expectations of growth and profitability.
The intent of the Mission Statement should be the first consideration for any employee
who is evaluating a strategic decision. The statement can range from a very simple to a very
complex set of ideas.

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Product lines of Amway

It includes:

home care products,

personal care products,

jewelry,

electronics,

Nurtilite dietary supplements,

water purifiers,
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air purifiers,

artistry,

insurance and cosmetics.

Business model
Amway combines direct selling with a multi-level marketing strategy. "Independent Business
Owners" (IBOs) may market products directly to potential customers and may also sponsor and
mentor other people to become IBOs. IBOs may earn income both from the retail markup on any
products they sell personally, plus a performance bonus based on the sales volume they and their
downline (IBOs they have sponsored) have generated. [3] People may also register as IBOs to buy
products at discounted prices.

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Alticor and Amway Sales Growth: 1960 to 2008:

February 5th, 2009 by ibofightback Posted in Amway News

Amway global sales were reported at estimated retail until 2000 when the holding
company of Alticor was formed. This means theyre valued assuming that they were all sold at
the full retail price, not at the price they were sold to distributors/IBOs. Alticor reports actual
revenue sales at the base IBO price
Ive converted the figures so they can be properly compared. Its important to be aware of
this as many critics of the business (including some former Diamonds who you would think
know about this) have in the past conveniently ignored the change in reporting standards and
tried to claim Amways sales peaked in 1998. Note however that Alticor sales includes revenues
from other sources such Access Business Group and Amway Grand Plaza. In 2007 this was
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reported as around $100 million, so by far the majority of the sales are through the Amway
business opportunity.
Amway Sales Data:
Estimated Retail
Year

Estimated Retail
Year

Sales

Estimated Retail
Year

Sales

Estimated Retail
Year

Sales

Sales

1960 $0.5 million

1970 $120 million

1980 $1.1 billion

1990 $2.2 billion

1961 ?

1971 $165 million

1981 $1.4 billion

1991 $3.0 billion

1962 ?

1972 $180 million

1982 $1.5 billion

1992 $3.9 billion

1963 $21 million

1973 $210 million

1983 $1.13 billion

1993 $4.5 billion

1964 $25 million

1974 $230 million

1984 $1.2 billion

1994 $5.3 billion

1965 $38 million

1975 $250 million

1985 $1.2 billion

1995 $6.3 billion

1966 $40 million

1976 $300 million

1986 $1.3 billion

1996 $6.8 billion

1967 $50 million

1977 $375 million

1987 $1.5 billion

1997 $7.0 billion

1968 $65 million

1978 $500 million

1988 $1.8 billion

1998 $5.7 billion

1969 $85 million

1979 $800 million

1989 $1.9 billion

1999 $5.0 billion

Amway has grown fairly quickly since its inception. Its historic sales data at estimated
retail prices is provided below from 1959 to 2000 (in 2000 Amway switch over to Alticor. At its
peak in 1997 Amway estimated retail sales worldwide at 7 Billion USD. With the founding of
Alticor, the report methodology was changed and the actual sales to distributors instead of
estimated retail sales (ERS) have been reported since 2001. Taking the sales data published in
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2001 report into account, the ERS values are about 32% higher than sales to distributors. The
actual sales to distributors are marked with *.
Until 1999 sales were reported at Estimated Retail. This is approximately 32% higher than actual
sales revenues from sales made to Amway distributors.

Importance of Communication for Amway

Communication is the activity of conveying information through the exchange of
thoughts, messages, or information, as by speech, visuals, signals, writing, or behavior.
Amway need to communicate 35000 distributers

To achieve the intended result

Inefficient and wasteful to send a message to every distributer

Specific:

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The Mission Statement should represent the broadest perspective of the enterprise's
mission. You may want to take the approach of being very specific. For instance, a Mission
Statement for a fictitious airline could be worded as follows: Your mission statement is an
opportunity to define your business at the most basic level. It should tell your company story and
ideals in less than 30 seconds: who your company is, what you do, what you stand for, and why
you do it. Do you want to make a profit, or is it enough to just make a living? What markets are
you serving, and what benefits do you offer them? Do you solve a problem for your customers?
What kind of internal work environment do you want for your employees? All of these issues
may be addressed in a mission statement.
Other ways to think about a mission statement as you begin to write one include:

Answers the question, What business are we in?

Provides thrust and direction to the organization.

Must be market-oriented (focusing on the problem the business is solving),

not product-oriented.

Basic guidelines in mission:

Your mission statement is about you, your company, and your ideals.

Dont box yourself in.

Keep it short.

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Ask for input.

Goals:

The major outcome of strategic road-mapping and strategic planning, after gathering all
necessary information, is the setting of goals for the organization based on its vision and
mission statement. A goal is a long-range aim for a specific period. It must be specific and and
realistic. Long-range goals set through strategic planning are translated into activities that will
ensure reaching the goal through operational planning.
Some company Goals may be as follows:

To promote a profitable and sustainable business activity that meets the customers needs.

To increase the company's market share.

To gain the competitive edge.

To increase the company's role in relations to social responsibility.

To provide excellent customer service.

Awards and Recognition:

Presented the Millennium Outstanding Service Award 2000, by the Confederation for
the Blind (AICB), in recognition for work carried out for the visually challenged.

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The Indian Red Cross Society, Orissa awarded AOF a memento & certificate for
conducting a mega-Blood Donation camp of 816 units on 4th May, 2003.

The Surat Raktdaan Kendra felicitated Amway India at their annual function on 5th
Oct, 2003, for the largest number of donors at a Blood Donation Camp (BDC) held by
any financial and commercial institution and industry. The Mayor of Surat - Snehlata
Chouhan - presented a trophy and a certificate of appreciation.

Social responsibilities performed by AMWAY:

One by One Campaign for Children

Amway Opportunity Foundation (AOF)
National Project for the Blind:

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Project Sunrise: The objective is to identify one orphanage/institution at each location
where Amway has a modestly-large office (52 cities). On-going assistance to be provided
in education, healthcare and vocational training under the following heads:
Health care
Education and vocational training
Safe drinking water
Childrens Day and AOF Day celebration with Amway staff & Amway

Amway Products:
Amway offers a range of exclusive, competitive brands that meet proven customer needs
around the world. From nutritional supplements to water treatment, cosmetics to cleaning
products, these brands are the solid foundation for a successful, independent Retail business.
Active Lifestyle Artistry Atmosphere Beautycycle Body Series Boutique Dish Drops
Eddie Funkhouser Emma Page eSpring L.O.C. Gensona Glister Hymm iCook
LifeStyle Balanced Solutions NAO Cosmetics Moiskin Skin Care Nutrilite Nutriway XS
Energy Ocean Essentials Personalized Health Peter Island Protique Positrim Satinique
SA8 Time Defiance Tolsom Trim
Amway Personal Care Products

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Nutrilite is the worlds leading brand of vitamin, mineral, and dietary supplements,
grown harvested and processed on its own certified organic farms.

Artistry is one of the worlds top five largest-selling prestige brands of facial skin care
and colour cosmetics. Our scientists and formulators have developed the complete line of
cosmetics,

All products of Attitude contain Skin Vitalising Complex that synergistically combine to
cleanse, Replenish & Moisturise the skin making it soft & supple.
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Dynamite's range of male grooming products, formulated internationally is designed to

deliver the ultimate grooming experience.

Glister Toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent that offers

seven benefits.

Persona Premium 3 in 1 Soap is a complete soap for the entire family promises refreshing
confidence.

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Satinique Advanced Range with unique Ceramide Infusion System uses nature's own
renewing technology to rejuvenate, strengthen and protect your hair.

SA8 Gelzyme is India's only 3-in-1 laundry detergent which pretreats, cleans and softens.

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G&H Range enriched with the goodness of Glycerine and Honey, deeply nourishes and
hydrates the skin for a healthy glow.

LOC High Suds is a multipurpose household liquid cleaner.

Dish Drops is a concentrated hand dishwashing liquid with a powerful "Triadic

Detergency System".

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Great Value Product Range offers you Great Quality, Great Performance, Great Price and a
Money Back Guarantee.

Amways competitors:
1) Direct competitors:

AVON
MARY KAY
SUNRIDER

2) Indirect competitors:

Local INDIAN companies.

Changing Political & Economic Atmosphere
Products used as samples to persuade relatives and friends to join Amway
Focus shifted from selling products to recruiting.

Organizational structure of Amway:

Terms used in Amway:

IBO/ABO/AIE-Independent Business Owner/Amway Business Owner/Amway

Independent Entrepreneur is a business partner of Amway who is authorized to market
and distribute products and services available from Amway. Different names are used in
different markets.

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Distributor - an older term for IBO

PV Point Value is a value assigned to each product or service sold by Amway. An

IBOs monthly performance bonus bracket depends on total PV in a month.

BV Business Volume is typically the wholesale cost of the product or service sold by
Amway. Performance bonuses are multiplied by the groups total BV.

Performance bonus is the monthly bonus paid by Amway to IBO's. The higher the PV,
the greater the percentage earned. In North America the Performance bonus ranges from
3% to 25%. In other markets it ranges from 3% to 21%. In India it ranges from 6%-21%.

Retail Profit is the markup earned by an IBO when they sell a product to a consumer,
either personally or through an Amway website. Recommended retail markup ranges
from 20%-35%.

Sponsor is an IBO who refers (sponsors) a new IBO to Amway, although IBO's do not
get paid to sponsor.

Upline is the term used to refer all the IBOs up in the line of sponsorship of an IBO.

Downline is the term used to refer all the IBOs down in the line of sponsorship of an
IBO. They are collectively also known as group

Leg refers to a personally sponsored IBO and all of their downline.

Silver Producer is an IBO who has reached the maximum bonus level for one month.
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Gold Producer is an IBO who has reached the maximum bonus level for three months.

Platinum or direct is an IBO who has reached the maximum bonus level for six months.
In North America a Platinum is generating a minimum of approximately $30,000 in sales
volume per month.

Emerald a distributor with at least three legs generating Silver Producer volume for at
least 6 months of a year.

Diamond a distributor with at least six legs generating Silver Producer volume for at
least 6 months of a year.

Q-12 is a Platinum or higher IBO that qualifies every month for 12 months of a year.

Marketing strategy:
A strategy is a plan of action designed to achieve the goals of the organisation. In creating
a marketing strategy for the Super Concentrated Cleaning System, Amway needed to set out the
key objectives it wanted to achieve. The following objectives for the brand were set:

To increase distribute or profitability and productivity by providing a new and exciting

business opportunity
To optimize consumer convenience and value through enhanced product differentiation

with this exclusive and revolutionary cleaning system

To provide innovative and unique products to enhance the image of Amway Home Care.

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A New Strategy of Amway:

Agreement with the government and company

resumed operations
Goods will be sold in retail outlets and through
sales representatives
Income of sales distributors will be based on direct selling done by them
Same Distribution centers served as retail outlets for the company
Localization of employees
Localization of production and Raw Material
Localization of research and development
Transparency and Credibility of companys management

Amway Global provides you with support like:

Customer care: If you have a question about anything - like registration, renewal,

Business, or product information - our Customer Care Associates can help you.
Business management: You can manage your business, check customer Volume, order

products, and renew your business, all at Amway Global.com.

Order management: You sell the products, and we'll do the rest, like process the order,

manages your customer accounts, and handles the shipping details.

Training: Online, video, and instructor-led training are some of the ways we can share
with you the knowledge to grow a successful independent business.

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Marketing: We support your sales efforts with DVDs, online sites, Magazines,
brochures, and free websites you can personalize. And we help Build awareness of your
products and brands with national advertising, promotions, and event sponsorship.

Amway believe that quality improvement happens when people come together. This core
belief is what all AOF initiatives are based upon and it holds true time and again. With a
passionate and vigorous workforce ready to contribute their bit to the well-being of society,
volunteering becomes a way of life in Amway. The 550,000 Amway distributors and 450 fulltime employees are all considered AOF volunteers. At 56 Amway offices across India, AOF has
formed a team of 6 or more distributors and employees to form a Local Implementation
Committee (LIC). LIC takes ownership of being the face of Amways CSR at the location. They
identify potential partners, form a project, and implement this with other volunteers. The LIC
also plays a lead role in raising funds they wish to utilize. The beauty of this system is that the
LIC raises the funds, and then decides how best to utilize this in their town or city.

Strategic analysis to overcome problems:

Today it is a global business that, along with its parent and sister companies, directly
employs 10,000 people worldwide. The business also operates strategically at a Global,
European and National level. Amway (UK) began operations in 1973 and has its own
distribution and Product Selection Centers.
Amway has helped millions of people around the world to start their own independent
business, through which they engage in person-to-person marketing. This type of direct selling
involves matching a consumer's needs with the goods and services on offer. The better the match,
the more lasting the relationship between the seller and the buyer.
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Ownership of Amway:
IBOs and Customers:
Amway services the needs of both Independent Business Owners and customers. IBOs
build businesses that allow them to earn income based on sales made resulting from their efforts.
To launch an Amway-powered business, individuals must register with an existing IBO.
Customers pay no fee to shop from a large selection of products and learn from expert advice on
health, beauty, home care, and other topics. Products are shipped to their homes and covered by
Amway's Customer Satisfaction Guarantee. Customers must register with the identification
number of their servicing IBO. If a new registrant Does not have a servicing IBO, Amway will
assign them one.

Personal Referrals:

Unlike most other companies, Amway's sales are not the result of advertising. The biggest chunk
of Amway's marketing budget goes directly to rewarding IBOs for sales volume resulting from
their efforts. Those efforts include registration of new Ibos, Members, and Clients, resulting in
product sales. Amway's tiered compensation plan rewards the movement of product through an
IBO's sales organization and their ability to train others to create their own successful
organizations. When people visit Amway's site, it is the result of a personal referral by an IBO
-not as a result of some advertisement they saw on TV. Personal referrals have proven to be
much more effective. Only 8% of respondents in the Edelman 2005Annual Trust Barometer

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study indicated that information obtained in advertising was credible, while 42% trusted
information obtained from family, friends, and colleagues.

Functional Pattern:
Following are the main departments in any organization:
1. Finance and accounts
2. Marketing and Sales
3. Human resource and administration
4. Technical / Operations
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Other departments depend on the size of the organization, like

1. Logistics
2. Procurement
3. Treasury department- sub dept of finance and accounts

1. Finance
The definition of finance is the provision of funds or loan supplied to an individual or
company. Often this term is used for the study of economics and how money is controlled. It can
be also defined as the management of funds and capital required by a business and private
activities. Management of finance has also developed into a specialized branch within the
financial sector and is carried out by finance managers.
Managing this involves dealing with the optimization and allocation of funds to various
areas either by borrowing or by using those available from internal resources. The word
Optimizing may sound strange but it refers to taking measures that minimize the cost of
financing while simultaneously attempting to maximize the profits out of the employed finance.
Bad debts are poor finance management where rules have not been followed; the result of this is
depressed markets, low production and a cash crisis. It is for this very reason that finance
managers are very careful with finance they agree too and where it is funded from.

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It is not uncommon to hear finance managers referred to as bean counters as they are
looking at immediate returns and initial costs against the potential at a later stage. Finance
managers are the pessimists whereas sales managers are the optimists who look to the future and
not to the past! Often though, problems occur with small businesses who fail to see the
distinction between a business loan and a personal one.
Finance department goal and services:

The main goal of The Department is to provide the internal and external users of financial
statements with relevant, accurate and timely information and to guarantee that the required
financial revision is closely adhered to in order to protect the assets of the company. The
Department takes care of finance flow to ensure that the company operates within its financial
regulations and satisfies various external financial requirements. It also ensures that the
corporate, financial records comply with internal and external audit. If to look through the
activity of The Department, there can be picked out the following main services it renders:

Payment of invoices and expenses

Income collection and salary management
Production and assignment of budgets, capital plans, and cash flow forecasts
Monitoring and managing financial plans
Auditing and reporting financial condition

2. Marketing:
Marketing means informing your potential clients about your products or service, and
finding ways to establish and keep a customer base. Your target market is the specific group of
people that consume your product or utilize your service. Advertising refers to the various media
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used to convey your message. Printed advertisement, radio air time, television commercials and
the Internet are all part of advertising that conveys your business message to the public.
Promotion refers to the various methods by which you convey your message to customers. When
you communicate with the public, you're promoting your business. Many people will join
business associations, or set up displays in malls and craft shows for promotional purposes.
Marketing department tasks:
The Marketing office works to raise the awareness of the company and its prominence in the
industry and market. The global aim of the department is promoting the product/service and
increasing recognition of the company through researches and branding efforts. The department's
strengths should all be in proper understanding of consumer behavior and efficient decisionmaking process. Typically, the major tasks of the marketing department are as follows:

* Advertising & Communication

* Direct marketing

* Conducting researches and market management

* Service Marketing

* Maintaining image and brand management

* Developing new product

* Promoting and professional sales

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* Retail management & technology.

3. Human resource:

Human resources is a term used to describe the individuals who comprise the workforce
of an organization, although it is also applied in labor economics to, for example, business
sectors or even whole nations. Human resources is also the name of the function within an
organization charged with the overall responsibility for implementing strategies and policies
relating to the management of individuals (i.e. the human resources).
This function title is often abbreviated to the initials 'HR'. The origins of the function arose in
organizations that introduced 'welfare management' practices and also in those that adopted the
principles of 'scientific management'. From these terms emerged a largely administrative
management activity, co-coordinating a range of worker related processes and becoming
known, in time as the 'personnel function'. Human resources progressively became the more
usual name for this function, in the first instance in the United States as well as multinational
corporations, reflecting the adoption of a more quantitative as well as strategic approach to
workforce management, demanded by corporate management and the greater competitiveness
for limited and highly skilled workers. The general purpose of Human Resource department is to
establish proper staffing policy and implement it on practice.
The main goals and tasks of HR department are:

* organize appropriate system of staff selection and recruitment

* organize system of effective staff training and development

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* ensure the competitiveness of the company within labor market

* establish transparent system of staff assessment and promotion
4. Entrepreneurship:

Entrepreneurship is the act of being an entrepreneur, which is a French word meaning "one
who undertakes an endeavor". Entrepreneurs assemble resources including innovations, finance
and business acumen in an effort to transform innovations into economic goods.As an
experienced entrepreneur, you are most likely aware that there are daily duties involved with
ensuring your business is successful. Accounting: Includes budgets, payroll, financial planning,
bill payments, and credit management.

Administration: Includes sorting and/or reading mail and email, filing, answering inquiries,
invoicing, bookkeeping, and purchasing.

Computer: Includes such things as keeping your website up to date, virus scanning, contact
management, data entry, upgrading software and learning new software.

Correspondence: Includes writing advertisements, letters, press releases and articles.

Human Resources: Including interviewing, hiring, firing, training, motivating and conflictresolution.

Sales: Includes marketing, finding customers, client retention, promotions, advertising and
special events.

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SWOT analysis of Amway:

STRENGTH:

Based on direct selling operations. Hence it can be A home based business. Every can
participate in business. Its easy to get admission in Amway with easy rout like intent.

Training to staff.
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Functions are performed by IBOs.

Organize meetings and events time to time.
Have good customer service system.
Backed by a 100% Customer Product Refund Policy produce faith and reselling attitude

in customers.
Quality Products that Inspire Confidence. Almost no risk of money as world class quality
Minimal start up costs gives strong base to the initiation of business. So everyone can
participate in business. The person who wants do something can be make profit with
investment of low cost.

Products are easy to sell.

A business with national and international scope gives more opportunity to the costumers.
The possibility of financial security and freedom of time to enjoy life.

WEAKNESS:

More power to IBOs gives critical structure to organization.

Initially high entry cost leads to somewhat restrictions for business development.
Rumors for direct selling operations.
Focus shifted from selling products to recruiting.

OPPURTUNITIES:

Setup a manufacturing plant in all countries leads to better platform for company.
Population of INDIA gives better opportunity to company to receive more profit.
As the company name itself gives reliance and faith for the customer and buyer produce
greater opportunity for marketing which leads to decrease in total expenditure of
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company.

THREATS:

Too much freedom to IBOs.

Change in government policy may affect to the profit and freedom of company.
Competitors like AVON, MARY KAY; SUNRIDER creates lot of competition in market
which leads to strong marketing competition in market.

Amway India plans 170 new branches by 2013

Eyes 25% y-o-y growth for the next five years.
Amway India Enterprises Pvt Ltd, a major direct selling FMCG Company in the country, is
planning to open 170 new branches across the country in the next three years (by the year 2013).
The company is also eyeing 25 per cent year-on-year growth for the next five years.
Presently, the company has 130 branches across the country. The company offers 115 products in
five categories- Personal care, Home care, Nutrition & Wellness, Cosmetics and Great Value
products. Nutrition & Wellness segment contributes around 50 per cent of Amway Indias total
turnover.
"With an aim to strengthen our network base, we are planning to increase the number of
touch points (branches) up to 300, by adding 170 new branches across the country in the next
two-three years. We are also planning to launch 6 to 8 new products every year," William S.

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Pinckney, MD & CEO, Amway India, said at a press conference during plant visit of reporters to
its Baddi facility in Himachal Pradesh.
With an aim to meet the market demand, the company has just tripled the capacity at its
contract manufacturing facility in Baddi (Himachal Pradesh) at an investment of Rs. 55 crore.
"Amways focus in the past 2-3 years was to improve consumer access and awareness,
which paid off handsomely. We have grown from Rs. 799 crore in 2007 to Rs. 1407 in 2009
crore over the past three years, essentially as the quality of the Amway pick-up centres has
undergone a sea change, and are more experiential for the consumers. We are eyeing 25 per cent
year-on-year growth for the next five years," Pinckney said.

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CONCLUSION:
Amway is which is one of the largest direct selling company in the world. The main
objectives of Amway are to profit there distributers by eliminating the middlemen and provide
the products to the distributers in cheaper price.
The products of Amway are world class product quality. They are made up of natural a
thing thats why they are good for health and environment. Amway covers a wide range of
products from beauty care. Health care, to clothing, and daily use products etc. the products are
costly as compared to other branded products available in market but if we compare the quantity
while using the products require less amount and thus can be used for longer time. Successful
business today depends upon a company's ability to quickly adapt to changes in the marketplace.
At Amway, they pride it selves on knowledge of the dynamic networking market that is quickly
becoming central to modern business.
This knowledge, and its willingness to act upon it, has enabled us to become one of the
industry's technological leaders. Through they continued pursuit of new product ideas, and by
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consistently refining our existing product line, they have become one of the top providers of
cutting-edge networking products in the global market. If you're looking for high quality
products and solid customer support at rock-bottom prices, then choosing Amway really does
make sense.

BIBLIOGRAPHY:
The Amway Business Review" Amway corporation 1 September (pamphlet)
2)Amway Corporation: Annual Report - Amway corporation
3)Case Study: Using Communication to develop Business Opportunities at Amway
4) "Amway Corporation" The Wall Street Journal. 15 sep 2014

Sites
www.worthwilemag.com
http://www.amway.in/
http://www.amway.in/Articles/Article.
http://en.wikipedia.org/wiki/Amway

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