Qdoc - Tips Amway Full Project

EXCEL BUSINESS ACADEMY
(India’s Premium Techno Management B-School)

AAA
“A CONCEPTUAL STUDY OF BUSINESS MANAGEMENTAND
ORGANIZATION SYSTEM”
SUBMITTED BY
Swapnil S.V.
Reg No.ESB/2010/AUG/M
No.ESB/2010/AUG/MBA/011
BA/011
Under the guidance of
Prof. Yuvaraja S.E.
Excel Business Academy
Ullal Main Road
Bangalore.
STUDENT DECLARATION:
AAA
I hereby
hereby declare
declare that the project report entitled
entitled “a conceptu
conceptual
al study
study of business
business
management
management and organization
organization system –Amway.” Bangalore
Bangalore has been done by me under the
guidanc
guidancee of Prof.
Prof. Yuvaraj
Yuvaraj,, Professo
Professorr – MBA & PGPM,
PGPM, Excel
Excel Business
Business Academy,
Academy, and
Bangalore. This project report has been submitted to Excel Business Academy, Bangalore as
a part
part of parti
partial
al fulfi
fulfill
llme
ment
nt for the award
award of the
the degree
degree of Post
Post Gradu
Graduat
atee Progr
Program
am in
Management from Excel Business Academy, Bangalore.
I also hereby declare that this project report has not been submitted at any time to
any other institute or university for the award of any degree.
Place: Bangalore
Date: / / Swapnil.
AAA
CERTIFICATE BY GUIDE
This is to certify that Swapnil V.S. bearing Reg No. ESB/2010/AUG/MBA/011, A student of
1st Trimester PGPM during the academic year 2010-2012 has successfully completed the
project
project report “a concept
conceptual
ual study
study of business
business management
management and organiza
organizatio
tion
n system
system –
Amway”
Amway”.. Under
Under the guidanc
guidancee of Prof.
Prof. Yuvaraja
Yuvaraja S.E, Excel
Excel Busines
Businesss Academ
Academy,
y, in partial
partial
fulfillment
fulfillment for the award of Post Graduate
Graduate Program in Management
Management from Excel
Excel Business
Business
Academy, Bangalore.
His character and conduct was good during the study.
Place: Bangalore
Date: / / Prof. Yuvaraja S. E.

AAA
ACKNOWLEDGEMENT
The satisfaction and euphoria that accompany the successful completion of any task would
be but incomplete without the mention of the people who made it possible, whose constant
guidance and encouragement crowned our efforts with success.
I consider it my privilege to express gratitude and thanks to the Management – Excel
Business Academy, Bangalore for giving me the opportunity to conduct this study.
I thank our Principal Prof.

Prof. Thej
Thejaswi Naviloor, for the encouragement and intellectual
aswi Naviloor
influence during the course of the project work.
I wish
wish to expres
expresss my heart
heartfel
feltt grati
gratitu
tude
de to Prof.
Prof. Gurutej, Head – PGPM & Techno
Gurutej
Management
Management Studies; Prof. Shreya K Rao , Head – MBA & TPD and my Project Guide
Prof. Yuvaraja S E. for their help and able guidance for the completion of the project
successfully.
I am grateful to the Librarian of Excel Business Academy, for his support during my
study.
Last but not the least, I would also like to thank each and everyone especially
especially all my
friends for their cordiality & support during my project.
Date: / /
Place: Bangalore swapnil

AAA
TABLE OF CONTENTS:
CHAPTER CONTENTS PAGE
NO. NO.
1 1.1 Meaning of Business
1.2 Meaning of Management
1.3 Meaning of Business Administration
1.4 Difference between Business Management & Business
Administration
1.5 Types of Business
2 Organizational Sy
System (General St
Study)
2.1 Meaning of Organization
2.2 Types of Organization
2.3 Types of Ownership
2.4 Vision, mission & Goals of the company
2.5 Organization Structure & it’s Types
2.6 Functional Patterns – People, policies, systems, problems if

any.
2.7 SWOT Analysis
3 Organizational Sy
System wi
with re
respect to
to Am
Amway:
3.1 Introduction
3.2 Vision, Mission & Goals of the Amway
3.3 Organizational Structure & Type of Amway
3.4 Type of Organization

AAA
3.5 Functional Patterns of Amway
3.6 Type of Ownership
3.7 SWOT Analysis
4 Summary of Findings & Conclusion
4.1 Findings
4.2 Conclusion
4.3 suggestion
LIST OF TABLES AND CHARTS:
TABLE CONTENTS PAGE NO.
1 Structure of Organization
2 Alticor and Amway Sales Growth: 1960 to 2008
3 Amway sell data since 1960 to 1999

AAA
Executive Summary:
This executive summary

summary will give you key facts concerning the Amway.
Amway. These facts
will help to find out how well the Amway opportunity can match your business goals. Let’s
start from main component that is business. A business' purpose is to attract and keep
customers.
customers. Its one basic function
function is to reliably solve customer problems. Management
Management in all
busin
business
ess areas
areas and organ
organiza
izati
tiona
onall acti
activit
vities
ies are
are the acts
acts of getti
getting
ng peopl
peoplee toget
together
her to
accomplish
accomplish desired goals and objectives efficiently
efficiently and effectively.
effectively. Also Management is the
act
act or func
functi
tion
on of putt
puttin
ing
g into
into prac
practi
tice
ce the
the poli
polici
cies
es and
and plan
planss deci
decide
ded
d upon
upon by the
the
administration. Hence Administration makes the important decisions of an enterprise in its
entirety, whereas management makes the decisions within the confines of the framework,
which is set up by the administration.
The important factor important to study is Organization. It is the foundation upon

which the whole structure of management is built. Organization is not an end it itself but a
means to achieve an end. Whether an organization is good or bad depends on the fact as to
how much efficiently and promptly it is in a position to achieve the objectives. Another
important topic is A Business ownership should be structured according to the needs of the
owners and potentially liability that the business could incur. Corporate vision describes
aspirations for the future, without specifying the means that will be used to achieve those
desired ends.
Thee Miss
Th Mission
ion of organ
organiza
izati
tion
on should
should repre
represen
sentt the broad
broadest
est perspe
perspecti
ctive
ve of the
the
enterprise's mission. The major outcome of strategi
of strategicc road-mapping
road-mapping and strategic planning,
AAA
after gathering all necessary information, is the setting of goals for the organization based on
its vision and mission statement.
Thee most
Th most impor
importan
tantt topic
topic is an organi
organiza
zatio
tiona
nall struct
structur
uree is a mainl
mainly
y hierarchical
concept of subordination of entities that collaborate and contribute to serve one common
aim.
aim. Anal
Analys
ysis
is by A SWOT
SWOT Ex
Exer
erci
cise
se is a powe
powerf
rful
ul tech
techni
niqu
quee for
for unco
uncove
veri
ring
ng and
and
understanding your Strengths and Weaknesses, and for looking at the Opportunities and
Threats you face.
Thee Amwa
Th Amway/
y/Am
Amwa
way
y Globa
Global,
l, a subsid
subsidia
iary
ry of Alti
Alticor
cor,, is marke
marketi
ting
ng nutrit
nutritio
ional
nal
supplements, skin and personal care products, air and water purifiers and a line of home
cleaning products. The products are sold through Independent Business Owners (IBO). The
most effective strategy for this is direct marketing, today also known as attraction marketing.
Using attraction marketing for Amway products is the fastest way to make steady retail
profits.
Amway already helped over 3 million people start on their path to success. They're
attracted by the unlimited potential of the opportunity, the support of a corporation with 50
years of experience and compassion, a global community ready to offer support, and a
premier compensation plan.
AAA
The Meaning of Business:
Great quote on Worthwhile by

Worthwhile by Mark Kaiser on the meaning of business:
business:
"The simplest definition of business is you solve a customer's problem and create
sustainable profits over time. Anyone with vision should understand the problem they're
solving. The problem with business today is that people think the meaning is about building
a monument to you. The meaning of business is having an impact on people's lives."
My definition is close:
A business' purpose is to attract and keep customers.

customers. It’s one basic function is to reliably
solve customer problems...
A business is a legal
legally
ly recogn
recogniz
ized
ed organization designed
designed to provide
provide goods or
services,
services, or both, to consumers,
consumers, business
businesses
es and governm
governmenta
entall entiti
entities.
es. Busine
Businesses
sses are
predominant in capitalist economies. Most businesses are privately owned.
owned. A business is
typically formed to earn profit that will increase the wealth of its owners and grow the
business itself. The owners and operators of a business have as one of their main objectives
the receipt or generation of financial returns in exchange for work
for work and acceptance of risk
of risk .
Notable exceptions include cooperative enterprises and state-owned
state-owned enterprises.
enterprises. Businesses
can also be formed not-for-profit or be state-owned.
state-owned.
The etymology
etymology of "business"
"business" relates to the state of being busy either as an individual
or society as a whole, doing commercially viable and profitable work. The term "business"
has at least
least three
three usages,
usages, depending
depending on the scope — the singular
singular usage
usage (above)
(above) to mean
mean a
particular company or corporation,
corporation, the generalized usage to refer to a particular market
sector , such as "the music business" and compound forms such as agribusiness,
agribusiness, or the
broadest meaning to include all activity by the community of suppliers of goods and services.
However, the exact definition
definition of business, like much else in the philosophy
philosophy of business,
business, is a
matter of debate and complexity of meanings.
Meaning Of Management:
Manag
Managem
ement
ent is gener
general
ally
ly define
defined
d as the art
art and scien
science
ce of getti
getting
ng thing
thingss don
donee
through others. This definition emphasizes that a manager plans and guides the work of other
people. Some (cynical) individuals think that this means managers don’t have any work to do
themselves. As managers have an awful lot of work to do. Management is the art and science
AAA
of getting things done through others, generally by organizing and directing their activities
on the job. A manager is therefore
therefore someone who defines, plans, guides,
guides, assists, and assesses
the work of others, usually people for whom the manager is responsible in an organization.
Management Define:
“The efficient and effective

effective operation
operation of a business, and study of this subject, is called
management”.
Thee main
Th main bran
branch
ches
es of mana
manage
geme
ment
nt are
are fina
financ
ncia
iall mana
manage
geme
ment
nt,, mark
market
etin
ing
g
management, human resource management, strategic management, production management,
operation management, service management and information technology management.
management1. The group of individuals

of individuals who make decisions about how a business is run.
run.
2. The initiation and maintenance of an investment portfolio.

portfolio.
Management in all business areas and organizational activities are the acts of
getting people together to accomplish desired goals and objectives efficiently and effectively.
Management
Management comprises
comprises planning,
planning, organizing,
organizing, staffing, leading or directing, and controlling
an organization (a group of one or more people or entities) or effort for the purpose of
accomplishing
accomplishing a goal. Resourcing encompasses
encompasses the deployment
deployment and manipulation
manipulation of human
of human
resources,
resources, financial resources, technological resources, and natural resources.
resources.
Because organizations
organizations can be viewed as systems,
systems, management can also be defined as
human action, including design, to facilitate the production of useful outcomes from a
system. This view opens the opportunity
opportunity to 'manage'
'manage' oneself, a pre-requisite
pre-requisite to attempting
attempting to
manage others
Management can also refer to the person or people who perform the act(s) of management.
Basic functions of management:
• Planning: Deciding what needs to happen in the future (today, next week, next
month, next year, over the next 5 years, etc.) and generating plans
generating plans for action.
• Organizing: (Implementation) making optimum use of the resources required to

enable the successful carrying out of plans.
AAA
• Staffing: Job analyzing, recruitment, and hiring individuals for appropriate jobs.
• Leading/Directing: Determining what needs to be done in a situation and getting

people to do it.
• Controlling/Monitoring: Checking progress against plans.
• Motivation : Motivation is also a kind of basic function of management, because

without motivation, employees cannot work effectively. If motivation doesn't takes
place in an organization, then employees may not contribute to the other functions
(which are usually set by top level management).
Business Administration:
Business administration consists of the performance or management of business

operations and thus the making or implementing of major decisions. Administration can be
defined as:
“The universal process of organizing people and resources efficiently so as to direct

activities toward common goals and objectives”.
The word is derived from the Middle English word administracioun,

administracioun, which is in turn
derived from the French administration, itself derived from the Latin administratio — a
compounding of ad ("to") and ministratio ("give service").
Administrator can serve as the title of the general manager or company secretary
who reports to a corporate board of directors. This title is archaic, but, in many enterprises,
this function, together with its associated Finance, Personnel and management
management information
information
systems services, is what is intended when the term "the administration" is used.
In some organizational analyses, management is viewed as a subset of administration,

specifically associated with the technical and mundane elements within an organization's
operat
operatio
ion.
n. It stands
stands disti
distinct
nct from
from execut
executiv
ivee or strat
strategi
egicc work.
work. In other
other organ
organiz
izati
ationa
onall
analyses, administration can refer to the bureaucratic or operational
or operational performance of mundane
office tasks, usually internally oriented and reactive rather than proactive.
AAA
As business has become more complex, so too has the oversight of companies: their
management, their growth strategies, their personnel issues, their taxes and the role that taxes
play in corporate economic strategy. Advertising has grown to include multiple media outlets
and
and an asso
assort
rtme
ment
nt of targ
target
eted
ed inte
intere
rest
st grou
groups
ps:: new
new cust
custom
omer
ers,
s, repe
repeat
at cust
custom
omer
ers,
s,
stockholders, investors and new geographic markets. Marketing has become the term of
choice for this entire strategically placed product exposure.
Defi
Definin
ning
g busin
busines
esss admi
admini
nistr
strati
ation
on then
then mean
meanss defini
defining
ng oversi
oversight
ght roles
roles for the
the
assortm
assortment
ent of interna
internall specialt
specialties
ies that
that every
every business
business of any size has come to include.
include.
Perhaps the best way to define business administration is to look at the types of courses
offered in MBA curriculums and the specialties, or "majors," that one can opt for in an MBA
program.
For a large corporation,

corporation, business administration is going to include international and
global business, as well as strategy and economics. In this instance, the definition of business
admini
administ
strat
ratio
ion
n will
will inclu
include
de requir
requirem
emen
ents
ts of cert
certai
ain
n cultu
cultural
ral diffe
differen
rences
ces and an acute
acute
understanding of the global economy and its current fluidity. Also included in business
administration at this scale is the art and science of acquisition: when to buy a company or
property and why.
Business
Business adminis
administrat
tration
ion will
will always
always include
include the intangi
intangible
ble quality
quality of leadersh
leadership;
ip;
Along with leadership comes the task of negotiation and conflict resolution, specifically with
rega
regard
rd to pers
person
onne
nel.
l. Beha
Behavi
vior
oral
al psyc
psycho
holo
logy
gy play
playss an impo
import
rtan
antt role
role in busi
busine
ness
ss
administration:
administration: a misstep in an adversarial situation with a union can take a company under,
as it did Continental Airlines
Airlines some years ago. The definition of business administration
administration will
have to include marketing; you won't have a business to administer unless you sell your
products. Ancillary to marketing is an understanding of the new tools available for product
distribution, and that will involve understanding e-business and how it is rapidly evolving.
Business administration includes an understanding of entrepreneurship: tax structures

for small businesses along with personnel issues at that level, inventory and cash flow, and
all the other small matters that make a big difference to a new or small business. A critical
part of business administration is the awareness of risk. This might include the risk of
launching a new product, and the costs involved; the risk of an acquisition, the risk of a
competitive strategy, the company's exposure in opting for this health plan instead of that
one. There are risks involved in other personnel decisions and this area is of tangible
importance: company morale is a key to productivity and the resultant profitability. The
definition
definition of business administration
administration includes whatever
whatever knowledge is required to make all of
these components work productively, if not in complete harmony.
AAA
Management vs. Administration:
Manag
Managem
ement
ent and admin
administ
istra
ratio
tion
n may
may seem
seem the same,
same, but there
there are
are diffe
differe
rence
ncess
between the two. Administration has to do with the setting up of objectives and crucial
policies of every organization. What is understood by management, however, is the act or
function of putting into practice the policies and plans decided upon by the administration.
1) Administration is a determinative function, while management is an executive function.
2) It also follows that administration makes the important decisions of an enterprise in its
entirety, whereas management makes the decisions within the confines of the framework,
which is set up by the administration.
3) Administration is the top level, whereas management is a middle level activity. If one
were to decide the status, or position of administration, one would find that it consists of
owners
owners who invest
invest the capital,
capital, and receive
receive profits from an organiz
organizatio
ation.
n. Managem
Management
ent
consists of a group of managerial persons, who leverage their specialist skills to fulfill the
objectives of an organization.
4) Adminis
Administra
trators
tors are usually
usually found
found in governm
government,
ent, militar
military,
y, religiou
religiouss and educati
educational
onal
orga
organi
niza
zati
tion
ons.
s. Mana
Manage
geme
ment
nt is used
used by busi
busine
ness
ss ente
enterp
rpri
rise
ses.
s. Th
Thee deci
decisi
sion
onss of an
administration are shaped by public opinion, government policies, and social and religious
factors, whereas
whereas management decisions are shaped by the values, opinions and beliefs of the
mangers.
5) In administration, the planning and organizing of functions are the key factors, whereas,
so far as management is concerned, it involves motivating and controlling functions. When it
comes
comes to the type
type of abili
abilitie
tiess requi
required
red by an admini
administ
strat
rator
or,, one
one needs
needs admi
admini
nistr
strati
ative
ve
qualitie
qualities,
s, rather
rather than
than technica
technicall qualitie
qualities.
s. In managem
management,
ent, technica
technicall abiliti
abilities
es and human
human
relation management abilities are crucial.
6) Administration usually handles the business aspects, such as finance . It may be defined as
a system of efficiently organizing people and resources, so as to make them successfully
pursue and achieve common goals and objectives. Administration
Administration is perhaps both an art and
a scien
science.
ce. Th
This
is is becaus
becausee admini
administ
strat
rator
orss are ultim
ultimate
ately
ly judge
judged
d by their
their perfo
perform
rmanc
ance.
e.
Administration must incorporate both leadership and vision.
AAA
7) Management is really a subset of administration, which has to do with the technical and
mundane facets of an organization’s operation. It is different from executive or strategic
work. Management deals with the employees. Administration is above management, and
exercises control over the finance and licensing of an organization.
Therefore, we can see that these two terms are distinct from one another, each with their own
set of functions. Both these functions are crucial, in their own ways, to the growth of an
organization.
Summary:
1. Management is the act or function of putting into practice the policies and plans decided
upon by the administration.
2. Administration is a determinative function, while management is an executive function.
3. Administration makes the important decisions of an enterprise in its entirety, whereas

management makes the decisions within the confines of the framework, which is set up by
the administration.
4. Adminis
Administrat
trators
ors are mainly
mainly found
found in governm
government,
ent, militar
military,
y, religio
religious
us and educati
educational
onal
organizations. Management, on the other hand, is used by business enterprises.
Types of business:
The following are the types of business,
1. Agriculture:
Agricultur e is the production of food and goods through farming. Agriculture was the
key
key deve
develo
lopm
pmen
entt that
that led
led to the
the rise
rise of huma
human
n civi
civili
liza
zati
tion
on;; with
with the
the husbandry of
domesti
domesticate
cated
d animals
animals and plants
plants (i.e.
(i.e. crops
crops)) creat
creating
ing food
food surpl
surpluse
usess that
that enabl
enabled
ed the
the
development of more densely populated and stratified societies. The study of agriculture is
known as agricultural science. Agriculture is also observed in certain species of ant and
termite.
AAA
Agriculture encompasses a wide variety of specialties and techniques, including ways

to expand the lands suitable for plant raising, by digging water-channels and other forms of
irrigation. Cultivation of crops on arable land and the pastoral herding of livestock on
rangel
rangelan
and
d rema
remain
in at the founda
foundatio
tion
n of agric
agricult
ulture
ure.. In the
the past
past centu
century
ry there
there has
has been
been
increasing concern to identify and quantify various forms of agriculture. In the developed
world the range usually extends between sustainable agriculture (e.g. perm culture or organic
agriculture) and intensive farming (e.g. industrial agriculture).
2. Mining:
Mining is the extraction of valuable minerals or other geological

other geological materials from the
earth, usually from an ore body, vein or (coal) seam. Materials
Materials recovered by mining include
base metals , iron , uranium , coal, diamonds, limestone’s , oil shale , rock salt and potash .
Any material that cannot be grown through agriculture processes, or created in a laboratory
or factory, is usually mined. Mining in a wider sense comprises extraction of any non
renewable resource (e.g., petroleum, natural gas, or even water).Mining of stone and metal
has been done since prospecting for times. Modern mining processes involve e bodies,
analysis of the Profit potential of a proposed mine, extraction of the desired materials and
finally reclamation of the land to prepare it for other uses once the mine is closed.
Thee natu
Th nature
re of mini
mining
ng proc
proces
esse
sess crea
create
tess a pote
potent
ntia
iall nega
negati
tive
ve impa
impact
ct on the
the
environment both during the mining operations and for years after the mine is closed. This
impact has led to most of the world's nations adopting regulations to moderate the negative
effec
effects
ts of minin
mining
g opera
operati
tions
ons.. Safe
Safety
ty has
has long
long been
been a conce
concern
rn as well
well,, thoug
though
h mode
modern
rn
practices have improved safety in mines significantly
3. Finance:
Fina
Finance
nce is the scienc
sciencee of funds
funds manag
managem
ement
ent.. Th
Thee gener
general
al area
areass of finan
finance
ce are
are
business finance, personal finance, and public finance. Finance
Finance includes savings money and
often includes lending money. The field of finance deals with the concepts of time, money,
and
and risk
risk and
and how
how they
they are
are inte
interr
rrel
elat
ated
ed.. It also
also deal
dealss with
with how
how mone
money
y is spen
spentt and
and
budgeted.One aspect of finance is through individuals and business organizations, which
deposit money in a bank. The bank then lends the money out to other individuals or
corporations for investment, and charges interest on the loans.
Loans have become increasingly packaged for resale, meaning that investers buy the
loan (debt) from a bank or directly from a corporation. Bonds are debt instruments sold to
investors for organizations such as companies, governments or charities. The investor can
then hold the debt and collect the interest or sell the debt on a secondary market.
market. Banks are
the main facilitators of funding through the provision of credit, although private equity,
AAA
mutual funds, hedge funds, and other organizations

organizations have become important
important as they invest in
various forms of debt. Financial
Financial assets
assets,, known as investments,
investments, are financially managed with
careful attention to financial risk management to control financial risk.
4. Intellectual property:
Intellectual property (IP) is a term referring to a number of distinct types of

creations of the mind for which property rights are recognized—and the corresponding fields
of law. Under intellectual property law, owners are granted certain exclusive property to a
variety of intangible assets, such as musical, literary, and artistic works; discoveries and
inventions; and words, phrases, symbols, and designs. Common types of intellectual property
inclu
include
de copyr
copyrig
ights
hts,, trade
tradema
marks
rks,, patent
patents,
s, indus
industr
trial
ial right
right and
and trade
trade secret
secretss in some
some
jurisdictions.
Although many of the legal principles governing intellectual property have evolved
over centuries, it was not until the 19th century that the term intellectual property began to
be used, and not until the late 20th century that it became commonplace in the United States.
Thee Brit
Th Britis
ish
h Stat
Statut
utee tee
tee 1710
1710 is now
now seen
seen as the
the orig
origin
in of copy
copyri
righ
ghtt and
and pate
patent
nt law
law
respectively.
5. Manufacturing:
Manufacturing
Manufacturing is the use of machines, tools and labor to make things for use or sale.
The term may refer to a range of human activity, from handicraft to high tech, but is most
commonly applied to industrial production, in which raw materials are transformed into
finished goods on a large scale. Such finished goods may be used for manufacturing other,
more complex products, such as aircraft, automobiles, or sold to Wholesalers, who in turn
sell them to retailers, who then sell them to end users – the “consumers”. Manufacturing
takes turns under all types of economic system. In a free market economy, manufacturing
manufacturing is
usually directed toward the mass production of products for sale to consumer at a profit.
Mode
Modern
rn manu
manufa
fact
ctur
urin
ing
g incl
includ
udes
es all
all inte
interm
rmed
edia
iate
te proc
proces
esse
sess requ
requir
ired
ed for
for the
the
pro
produ
duct
ctio
ion
n and
and inte
integr
grat
atio
ion
n of a prod
produc
uct'
t'ss comp
compon
onen
ents
ts.. Some
Some indu
indust
stri
ries
es,, such
such as
semiconductors and steel manufacturers use the term fabrication instead.
6. Real estate:
Real estate is a legal term (in some jurisdictions, such as the United Kingdom,
Canada, Australia
Australia , USA and Bahamas ) that encompasses land along with improvements
improvements to
the land, such as buildings, fences, wells and other site improvements that are fixed in
location—immovable. Real estate law is the body of regulations and legal codes which
pertain
pertain to such matters under a particular jurisdiction
jurisdiction and include things such as commercial
commercial
AAA
and residential real property transactions. Real estate is often considered synonymous with
real property (sometimes called realty), in contrast with personal property (sometimes
(sometimes called
chattel or personality under chattel law or personal property law).
However, in some situations

situations the term "real estate" refers to the land andfixtures
and fixtures together, as
distingu
distinguishe
ished
d from "real prop
propert
erty
y", refer
referri
ring
ng to owners
ownership
hip of land
land and appur
appurten
tenanc
ances,
es,
including
including anything of a permanent nature such as structures,
structures, trees, minerals, and the interest,
benefits, and inherent rights thereof. Real property is typically considered to be Immovable
property. The terms real estate and real property are used primarily in common law, while
civil law jurisdictions
law jurisdictions refer instead to immovable property.
7. Retailing:
Retailing consists of the sale of goods or merchandise from a fixed location, such as a
department stores, boutique, or by mail, in small or individual lots for direct consumption by
the purchaser. Retailing may include subordinated services, such as delivery. Purchasers may
be individuals or businesses. In commerce, a "retailer" buys goods or products in large
quantities
quantities from manufacturers or Importers, either directly or through a wholesaler , and then
sells smaller quantities to the end-user . Retail establishments are often called shops or stores.
Retailers are at the end of the supply chain. Manufacturing marketers see the process of
retailing as a necessary part of their overall distribution strategy. The term "retailer" is also
applied where a service provider services the needs of a large number of individuals,
individuals, such as
a public utility, like electric power.
8. Transport:
Transport or transportation is the movement of people and goods from one location to
another. Mode of transportation includes air rail, road, water, cable, pipeline,
pipeline, and space. The
field can be divided into infrastructure, vehicles, and operations. Transport infrastructure
consists of the fixed installations necessary for transport, and may be roads , railways,
airways
airways,, waterw
waterways,
ays, canals, pipeline
pipeliness and termin
terminals
als such as airport
airports,
s, rail
rail stations
stations,, bus
stations, warehouses, trucking terminals, refueling depots (including fueling docks and fuel
stations),
stations ), and seaports. Terminals
Terminals may be used both for interchange of passengers and cargo
and for mainten
maintenance
ance.. Vehicle
Vehicless traveli
traveling
ng on these
these network
networkss may include
include automob
automobiles
iles,,
bicycles, buses, trains, trucks, people, helicopters, and aircrafts. Operations deal with the way
the vehicles
vehicles are operated
operated,, and the procedur
procedures
es set for this
this purpose
purpose includi
including
ng financin
financing,
g,
legalities and policies. In the transport industry, operations and ownership of infrastructure
can be either public or private, depending on the country and mode.
AAA
Meaning of Organization:
Organization is the foundation upon which the whole structure of

management is built. Organization is related with developing a frame work where the total
work is divided
divided into
into managea
manageable
ble componen
components
ts in order
order to facilita
facilitate
te the achievem
achievement
ent of
objectives or goals. Thus, organization is the structure or mechanism that enables living
things to work together. In a static sense, an organization is a structure or machinery manned
by
by grou
group
p of indi
indivi
vidu
dual
alss who
who are
are work
workin
ing
g toge
togeth
ther
er towa
toward
rdss a comm
common
on goal
goal.. Alik
Alikee
'management', the term 'organization' has also been used in a number of ways. broadly
speaking,
An organization is a social arrangement which pursues collective goals, controls its

own performance,
performance, and has a boundary separating
separating it from its environment. The word itself is
derived from the Greek word organon, itself derived from the better-known word ergon.
In the social sciences, organizations are the object of analysis for a number of disciplines,
such
such as soci
sociol
olog
ogy,
y, economics,
economics, politi
political
cal science,
science, psychology,
psychology, management,
management, and
organizational communication. In more specific contexts, particularly for sociologists, the
term "institution
"institution"" may be preferred. The broader analysis of organizations is commonly
referred to as organizational studies,
studies, organizational behavior or organization analysis. A
number of different theories and perspectives exist, some of which are compatible,
• Organization
Organization – process-related:
process-related: an entity is being (re-)organized
(re-)organized (organization as task
or action).
• Organization – functional: organization as a function of how entities like businesses

or state authorities are used (organization as a permanent structure).
• Organization – institutional:
institutional: an entity is an organization (organization as an actual
purposeful structure within a social context)
The 'organization'
'organization' is used in four different senses: as a process, as a structure of relationship,
relationship,
as a group of persons and as a system, as given below:
1)Organization as a Process: In this first sense, organization is treated as a dynamic process

and a manager
managerial
ial activit
activity
y which
which is essenti
essential
al for planning
planning the utilizatio
utilization
n of company
company's
's
resources, plant and equipment materials, money and people to accomplish the various
objectives.
AAA
2) Organization as a Framework of Relationship: In the second sense organization

organization refers
to the structure of relationships and among position jobs which is created to release certain
objectives. The definitions of Henry, Urwick, Farland, Northcourt, Lansburgh and Spriegel
Breach, Davis, Mooney and Reily etc., come under this group. For example: According to
Mooney and Reily, "Organization
"Organization is the form of every human association
association for the attainment
attainment
of a common purpose."
3) Organization as a Group of persons: In the third sense, organisation is very often

viewed as a group of persons contributing their efforts towards certain goals. Organization
begins when people combine their efforts for some common purpose. It is a universal truth
that an individual is unable ability and resources. Barnard has defined 'Organization' as an
identifiable group of people contributing their efforts towards the attainment of goals.
4) Organization as a System: In the fourth sense, the organization is viewed as system.

System concepts
concepts recognize that organizations
organizations are made up of components each of which has
unique properties, capabilities
capabilities and mutual relationship.
relationship. The constituent
constituent elements of a system
are linked together in such complex ways that actions taken by one producer have far
reaching effect on others.
In short
short,, organ
organizi
izing
ng is the deter
determi
mini
ning,
ng, groupi
grouping
ng and arrang
arrangin
ing
g of the
the vario
various
us
activities deemed necessary for the attainment of the objectives, the assigning of people to
those activities, the providing of suitable physical factors of environment and the indicating
of the relative authority delegated to each individual charged with the execution of each
respective activity.
Definitions of Organization:
Different authors have defined organization in different ways. The main definitions
of organization are as follows:
• According to keith Davis, "Organization may be defined as a group of individuals,

large of small, that is cooperating under the direction of executive leadership in
accomplishment of certain common object."
• According
According to Chester I. Barnard,
Barnard, "Organization is a system of co-operative
co-operative activities
of two or more persons."
AAA
• Accor
Accordin
ding
g to Lo
Louis
uis A. Alle
Allen,
n, "Orga
"Organiz
nizati
ation
on is the
the proces
processs of identi
identify
fying
ing and
grouping
grouping the work to be perform
performed,
ed, defining
defining and delegati
delegating
ng responsi
responsibili
bility
ty and
authority, and establishing relationship for the purpose of enabling people to work
most effectively together in accomplishing objectives."
• Accor
Accordin
ding
g to Moo
Moone
ney
y and
and Rail
Railey
ey,, "Orga
"Organiz
nizat
ation
ion is the form
form of every
every human
human
association for the attainment of a common purpose."
Social unit of people systematically arranged and managed to meet a need or to

pursue collective goals on a continuing basis. All organizations have a management structure
that determines
determines relationships between functions and positions,
and positions, and subdivides and delegates
delegates
roles,
roles, responsi
responsibil
bilitie
ities,
s, and authority to carry
carry out defin
defined
ed tasks.
tasks. Organiz
Organizatio
ations
ns are open
systems in that they affect and are affected by the environment beyond their boundaries
Characteristics of Organization:
1) Outlining the Objectives: Born with the enterprise are its long-life objectives of
prof
profit
itab
able
le manuf
manufact
acturi
uring
ng and selli
selling
ng its
its produ
product
cts.
s. Other
Other objec
objecti
tives
ves must
must be
established by the administration from time to time to aid and support this main
objective.
2) Identifying and Enumerating the Activities: After the objective is selected, the
managem
management
ent has to identify
identify total task involved
involved and its break-u
break-up
p closely
closely related
related
component activities that are to be performed by and individual or division or a
department.
3) Assigning the Duties: When activities have been grouped according to similarities
and common purposes, they should be organized by a particular department. Within
the department, the functional duties should be allotted to particular individuals.
4) Defining and Granting the Authority: The authority and responsibility should be
well defined and should correspond to each other. A close relationship between
authority and responsibility should be established.
5) Creating Authority Relationship: After assigning the duties and delegations of
authority,
authority, the establishment of relationship is done. It involves deciding who will act
under whom, who will be his subordinates, what will be his span of control and what
will
will be his status
status in the organiza
organization
tion.. Besides
Besides these formal
formal relati
relationshi
onships,
ps, some
some
informal organizations should also be developed.
Significance of Organization:
1) It Facilitated Administration and management: Organization is an important and the

only tool to achieve enterprise goals set b administration and explained by management.
AAA
Sound organization increases efficiency, avoids delay and duplication of work, increases
manager
managerial
ial efficie
efficiency
ncy,, increase
increasess promptne
promptness,
ss, and motiva
motivates
tes employ
employees
ees to perform
perform their
their
responsibility.
2) It Help in the Growth of Enterprise: Good organization is helpful to the growth,

expansion and diversifications of the enterprise.
3) It Ensures Optimum Use of Human Resources: Good organization establishes persons

with different interests, skills, knowledge and viewpoints.
4) It Stimulates Creativity: A sound and well-conceived organization structure is the source

of creative thinking and initiation of new ideas.
5) A Tool
Tool of Achiev
Achieving
ing Obj
Object
ectives: Organization is a vital tool in the hands of the
ives:
management for achieving set objectives of the business enterprise.
6) Prevents Corruption: Usually corruption exists in those enterprises which lack sound
organization. Sound organization prevents corruption by raising the morale of employees.
They are motivated to work with greater efficiency, honesty and devotion.
7) Co-ordination in the Enterprises: Different jobs and positions are welded together by
structural relationship of the organization. The organizational process exerts its due and
balanced emphasis on the co-ordination of various activities.
8) Eliminates Overlapping and Duplication or work: Over lapping and duplication of
work exists when the work distribution
distribution is not clearly identified and the work is performed in
a haphazard and disorganized way. Since a good organization demands that the duties be
clearly assigned amongst workers, such overlapping and duplication is totally eliminated.
Significance of Sound /Good Organization:
Orga
Organi
niza
zati
tion
on is not
not an end
end it itse
itself
lf but
but a mean
meanss to achi
achiev
evee an end.
end. Whet
Whethe
herr an
organization is good or bad depends on the fact as to how much efficiently and promptly it is
in a position
position to achieve
achieve the objectiv
objectives.
es. Thus, a sound or good or ideal
ideal and result-ori
result-oriente
ented
d
organization must possess the following characteristics.
1) Realizati
Realization
on of Obje
Objectives: Organi
ctives: Organiza
zati
tion
on is tool
tool of achiev
achieving
ing object
objectiv
ives
es of an
enterprise. For this purpose, the organization should be divided in several department,
sub-departments, branches and units etc.
2) Harmonious Grouping of Functions etc: For achieving the organization

organization objectives
there must be harmonious grouping of functions, jobs and sub-jobs in such a way so
that there is action, consultation and co-ordination without any delay and difficulty.
AAA
3) Reasonable Span of Control: Another characteristic

characteristic of organization
organization is that it should
have reasonable span of control. Ordinarily, a person (personnel) cannot control more
than five or six subordinates.
4) Clear-cut
Clear-cut allocation
allocation of Duties
Duties and Responsib
Responsibilities: Th
ilities: Ther
eree must
must be clear
clear-cu
-cutt
allocation of duties and responsibilities in any scheme of sound organization. Every
executive must know his scope of activities, the ideal number is three.
5) Promotion of Satisfaction: The most important element of any human organization

is the
the prom
promot
otio
ion
n of sati
satisf
sfac
acti
tion
on of work
worker
ers.
s. Man
Man work
workss in a grou
group
p or in an
organization and hence the success or failure of any organization depends on as to
how much the organization is in a position to provide satisfaction to individuals or
group working under him.
6) Fullest
Fullest Utilizati
Utilization Manpower:: Another
on of Manpower Another importa
important
nt charact
characteris
eristic
tic of an ideal
ideal
organi
organiza
zatio
tion
n is as to how far
far it is succe
successf
ssful
ul in makin
making
g full
fullest
est and econo
economi
mical
cal
utilization of the available manpower.
7) Provi
Provisio
sion
n and Develo
Developme
pment
nt and Expan
Expansion: Anoth
sion: Another
er impor
importa
tant
nt of an ideal
ideal
organi
organiza
zatio
tion
n is that
that there
there exist
existss the
the neces
necessa
sary
ry provis
provision
ion for devel
developm
opmen
entt and
and
expansion so that it is possible to expand and develop any organisation according to
needs and requirements and necessary changes an alternatives may be made.
8) Coordination and cooperation:

cooperation: In order to achieve the objectives of the enterprise,
there
there must be close
close coordina
coordinatio
tion
n and cooperation
cooperation in the activities
activities of everybod
everybody
y
working in the organization. Further, there should also be active coordination and
cooperation amongst the various departments an sub-departments. It will also assist
in elimination the evil of red tapism.
9) Unity of Command: There must be unity of command. No one in any organization

should report to more than one line supervisor, and everybody must know to whom
he reports and who reports to him. No subordinate should get orders from more than
one supervisor; otherwise it will lead to confusion, chaos and conflict.
10) Effective System of Communication: An ideal organization must possess effective

system
system of communi
communicat
cation.
ion. The inter-co
inter-commu
mmunica
nication
tion system
system should
should be clear
clear and
easier and there should be no ambiguity at and level.
11) High Morale:

Morale: An ideal organization is that in which the workers possess high
morale. They work with full capacity, energy, enthusiasm, devotion and sincerity.
AAA
12) Flexibility: The last but not the least important characteristic of an ideal organization
is that it should be flexible so that necessary changes
changes an modifications in the the size
of the organization as well as technology could be easily and conveniently effected.
Steps in the Process of Organization:
Organiza
Organizatio
tion
n means
means identify
identifying,
ing, arrangin
arranging
g and integrat
integrating
ing differen
differentt element
elementss of
organization into efficient working order. It requires the management to follow the following
process of organization.
• Division of work
Thee main
Th main func
functi
tion
on is divi
divide
ded
d into
into sub-
sub-fu
func
ncti
tion
onss and
and entr
entrus
uste
ted
d to the
the diff
differ
eren
entt
departmental heads. The result is the establishment of departments like Purchase, Sales,
Producti
Production,
on, Account
Accounts,
s, Publici
Publicity
ty and Public
Public relati
relations.
ons. The departm
departments
ents can be further
further
classified
classified just as production department into (1) Planning (2) Designing, (3) Operations, (4)
Production Control and (5) Repairs and Maintenance. The division of the work is based upon
the fact that specialization is keynote of efficient organization.
• Grouping of Job and Departmentation
The second step is to group similar or related jobs into larger units, called departments,
divisions or sections. Grouping process is called departmentation. The department may be
based upon functions such as manufacturing, marketing and financing etc. Department may
also be based on products, such as textiles,
textiles, cosmetic, stationery etc. These departments
departments may
have different
different sections
sections as per require
requiremen
ment.
t. Grouping
Grouping jobs or Departm
Departmenta
entation
tion aims
aims at
achieving coordination and facilitates unity of efforts. The departments are linked together
on the basis of interdependence.
interdependence. The divided task is assigned to specific individual
individual or group
of individuals who are supposed to be the most qualified and specialized persons for the task.
• Assigning duties
The work to be performed by every individual is clearly defined and made known to him.
Everyone must know what he is required to do in order to avoid any misunderstanding,
duplication or overlapping in the work.
AAA
• Granting authorities and fixing responsibilities
Assigni
Assigning
ng of duties
duties to individu
individuals
als must coincide
coincide with
with the appropri
appropriate
ate and relevan
relevantt
authorities. Every employee must know, what the authorities granted to him and for what and
to whom he will be responsible, liable and accountable.
• Delegation of authority
Those
Those who
who are
are made
made respo
responsi
nsible
ble for specif
specific
ic tasks
tasks are
are given
given due author
authorit
ity.
y. Both
Both
responsibility and authority go hand in hand together. Reasonable powers are delegated to
heads and supervisory staff to enable them to do their work with ease and efficiency.
• Effective communication
Effective communication is the keynote of efficient organization. There should be proper

arrangement of communication messages from executives to subordinates and vice-versa.
Proper communication system establishes harmonious relationship between employees and
enables execution of work in the right manner at the appropriate time and in an atmosphere
of perfect mutual adjustment.
• Co-ordination of activities for common objectives
Business activity is a team work or the group activity, so the efforts of every employee
must be co-ordinate effectively to achieve the common objectives of the enterprise.
Types of organization:
1) Static Organizations:
Organizations:
AAA
Static
Static Organi
Organizati
zations
ons have fixed
fixed practice
practices,
s, fixed
fixed size.
size. Like
Like static
static equatio
equations,
ns, these
these
organizations have no variables. Time doesn't change them significantly. They persist until
some new organization occupies their niche.
2) Dynamic Organizations:
Dynamic
Dynamic Organizations
Organizations have Fixed practices, variable size. Like dynamic equations,
equations,
these organizations vary in size over time, even though their underlying practices don't
change much. They go through a single life cycle, each growing rapidly as it occupies its
niche, and then declining
declining as its competitors
competitors implement
implement better practices that steal away its
clients.
3) Adaptive Organizations:
Organizations:
Variable practices, variable size. Like complex adaptive systems, these organizations
vary their practices, seeking the constant improvement that launches life cycle after life
cycle, creating new products, services, and processes that hold on to clients generation after
generation.
They will soon motivate employees to climb adaptation curves by using ISOPs to
fairly share the wealth that each innovation creates. ISOPs ensure that the innovator, the
predecessors, and each shareholder in the corporation benefits.
They will displace dynamic and static organizations in economic competition, so that
within a generation, most people will have learned to expect continual improvement in their
life experience. The fact that their ancestors once worked at the same job in the same way for
an entire lifetime will seem almost as incredible as the fact that people used to stay at jobs
they didn't thoroughly enjoy.
A Business Ownership:
A Business ownership should be structured according to the needs of the owners and
potentially liability that the business could incur. The different types of business ownership
are:
1) Limited Partnerships
2) A Corporation
3) Limited Liability Corporations

AAA
4) Sole Proprietorship and Partnership
5) Nonprofit Corporations
6) Cooperatives
7) Private Corporation:
1) Limited Partnerships:
Partnerships:
This type of business organization is costly and complicated to prepare. It is not

recommended for the average small business owner. Limited partnerships are usually created
by one person or company who solicits investments from others. The people who invest are
considered the limited partners. The general partner is in charge of the business's everyday
operations.
operations. They are personally
personally liable for business dents. Limited partners have little control
over daily business decisions or operations. Because
Because of this they are not personally
personally liable for
business debts or claims.
Limi
Limited
ted partne
partnersh
rships
ips are
are costl
costly
y and
and compli
complica
cate
ted
d to set up and run,
run, and
and are not
recommended for the average small business owner. Limited partnerships are usually created
by one person or company,
company, the "general partner,"
partner," who will solicit investments
investments from others --
who will be the limited partners.
The general partner controls the limited partnership's day-to-day operations and is
personally liable for business debts (unless the general partner is a corporation or an LLC).
Limited partners have minimal control over daily business decisions or operations and, in
retur
return,
n, they
they are not perso
persona
nall
lly
y liabl
liablee for busine
business
ss debts
debts or claim
claims.
s. Consul
Consultt a limi
limite
ted
d
partnership expert if you're interested in creating this type of business
2) A Corporation
The most significant benefit to forming a corporation is that it limits the owners'
perso
personal
nal liabi
liabilit
lity
y for busine
business
ss dents
dents and
and any
any court
court judgm
judgmen
ents
ts agains
againstt the
the busin
business
ess.. A
corporation is an independent legal and tax entity. This sets it apart from other types of
businesses. The owners do not use their personal tax returns to pay tax on corporate profits
because the corporation itself pays these taxes. Any money drawn from the corporation in the
form of salaries, bonuses, etc is paid by the owners in their personal income tax returns.
3) Limited Liability Corporations
Limited
Limited Liabili
Liability
ty Corporat
Corporations
ions provide
provide their
their owners
owners just that,
that, limited
limited personal
personal
liability for business debts and claims. However, LLCs resemble partnerships when it comes
to taxes. The owners of an LLC pay taxes on their shares of the business income on their
AAA
personal tax returns. This type of organization is good for business owners who either Could
be sued by customers run the risk of piling up a lot of debt have substantial personal assets
they want to protect.
4) Sole Proprietorship and Partnership
A sole proprietorship, or partnership, is the ideal ownership structure for an up and

coming business or the average small business. They do not have to be registered with the
state and go into effect as soon as one person goes into business with themselves or two or
more people go into business together. Any business income is reported on the owner's
personal income taxes. They are also personally liable for any business debts or court
decisions against the business.
Before you can decide on an ownership structure for your business, you must learn at
least a little bit about how each structure works. Here's a brief rundown of the most common
forms of doing business: For many new businesses, the best initial ownership structure is
either a sole proprietorship or -- if more than one owner is involved -- a partnership.
A sole proprietorship is a one-person business that is not registered with the state as a
limited liability company (LLC) or corporation. You don't have to do anything special or file
any papers to set up a sole proprietorship. You create one just by going into business for
yourself. Legally, a sole proprietorship is inseparable from its owner. The business and the
owner are one and the same. This means the owner of the business reports business income
and losses
losses on her
her perso
persona
nall tax
tax retur
return
n and is person
personal
ally
ly liabl
liablee for
for any
any busine
business-
ss-re
relat
lated
ed
obligations, such as debts or court judgments.
Similarly, a partnership is simply a business owned by two or more people that hasn't
filed papers to become a corporation or a limited liability company (LLC). No paperwork
needs to be filed to form a partnership. The arrangement begins as soon as you start a
business with another person. As in a sole proprietorship, the partnership's
partnership's owners pay taxes
on their shares of the business income on their personal tax returns and they are each
personally liable for the entire amount of any business debts and claims.
Sole
Sole propriet
proprietorsh
orships
ips and partners
partnerships
hips make sense
sense in a business
business where personal
personal
liability isn't a big worry. For example, A small service business in which you are unlikely to
be sued and for which you won't be borrowing much money for inventory or other costs.
5) Nonprofit Corporations
A nonprofit corporation is a corporation formed to carry out a charitable, educational,

relig
religiou
ious,
s, lite
literar
rary
y or scient
scientif
ific
ic purpos
purpose.
e. A non
nonpro
profit
fit can raise
raise much
much-ne
-neede
eded
d funds
funds by
receiving public and private grant money and donations from individuals and companies.
AAA
The federal and state governments do not generally tax nonprofit corporations on money they
make that is related to their nonprofit purpose, because of the benefits they contribute to
society.
6) Cooperatives
Some people dream of forming a business of true equals. an organization

organization owned and
operated democratically
democratically by its members.
members. These grassroots
grassroots business organizers often refer to
their businesses as a "group," "collective" or "co-op" but these are usually informal rather
than legal labels. For example, a consumer co-op could be formed to run a food store, a
bookstore or any other retail business. Or a workers' co-op could be created to manufacture
and sell arts and crafts.
7) Private Corporation:
A business that is a legal entity created by the state whose assets and liabilities are
separa
separate
te from
from its
its owners
owners.. Whil
Whilee there
there are also
also pub
publi
licc corpor
corporati
ations
ons.. Who
Who stock
stock (and
(and
ownership) is traded on a public stock exchange. Most small businesses are (or at least start
as) private corporations.
corporations. A private corporation is owned by a small group of people who are
typically involved in managing the business. Forming a corporation requires developing a
legal document called the "Articles of Incorporation" and submitting them to the state in
which the corporation wishes to reside. Advantages of a corporation include limited liability.
An owner (stockholder) can only lose up to the amount s/he invested; unlimited lifespan. a
corporation
corporation is charted to last forever unless its articles of incorporation
incorporation state otherwise; great
sourc
sources
es of fundi
funding;
ng; and ease
ease of trans
transfer
fer of owners
ownership
hip.. Disad
Disadva
vanta
ntages
ges inclu
include
de dou
doubl
blee
taxation. The corporation, as a legal entity, must pay taxes, and then shareholders also pay
taxes on any dividends received.
AAA
Company Vision:
Corp
Corpor
orat
atee visi
vision
on is a shor
short,
t, succ
succin
inct
ct,, and
and inspiring stat
statem
emen
entt of what
what the
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.
forward-thinking. It is the image that a business must
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.
Warren Bennis, a noted writer on leadership, says: "To choose a direction, an

executive
executive must have developed a mental image of the possible and desirable future state of
the organization. This image, which we call a vision,
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 company’s 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.

It includes setting a common goal in support of business objectives, making an individual
commitment to the team’s success and recognizing the success of the team.
Accountability – Being accountable means every employee assumes ownership and

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.
AAA
Doing What’s Right – Doing what’s 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 today’s 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,
philosophy, statement of purpose,
busine
business
ss philosop
philosophy.
hy. An organiz
organizatio
ation's
n's mission
mission describe
describess its fundeme
fundemental
ntal purpose
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.
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

enterprise’s 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
AAA
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.
Specific:
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
Must be mark
market
et-o
-ori
rien
ente
ted
d (foc
(focus
usin
ing
g on the
the prob
proble
lem
m the
the busi
busine
ness
ss is solv
solvin
ing)
g),,
not product-oriented.
Basic guidelines in mission:
• Your mission statement is about you, your company, and your ideals.
• Don’t “box” yourself in.
• Keep it short.
• Ask for input.
Goals:
The major outcome of strategic

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

AAA
• 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.
Structure of Organization:
MANAGING DIRECTOR
QUALITY MANAGER
OPERATION MGR
MAREKTING MANAGER FINANCE MANAGER
OFFICE ADIMINSTRTOR
PROJECT MANAGER ESTIMATOR

AAA
BULDING CADETS SITE FOREMEN
An organizational structure is a mainly hierarchical concept of subordination of

entities that collaborate and contribute to serve one common aim. Organizations are a variant
of clustered
clustered entities
entities. An organization can be structured in many different ways and styles,
depending on their objectives
objectives and ambience.
ambience. The structure
structure of an organization
organization will determine
determine
the modes in which it operates and performs. Organizational structure allows the expressed
allocation of responsibilities for different functions and processes to different entities such as
the branch, department,
department, workgroup and individual.
individual. Individuals in an organizational structure
are normally hired under time-limited work contracts or work orders,
orders, or under permanent
employment contracts or program orders.
In order to achieve the desired goals, sound and effective organizational structure is
necessary. Organizational structure, as we know is the system of job positions, roles assigned
to these positions and specifying authority, responsibility and task of every positions. The
structure undoubtedly provides basic framework for executive and employees to perform
their task smoothly.
The following points must be taken into consideration while building organizational
structure:
• Job design
Jobs should be designed in such a way, that job should have specified and defined task to
be performed. Jobs should be designed in such fashion that every individual could contribute
his maximum worth to the enterprise. The major and related activities of the jobs should also
be specified.
• Departmentation
Departmentation or Grouping of Identical Jobs
Identical
Identical and similar
similar jobs should be grouped together in a department
department and placed under a
depart
departme
menta
ntall head.
head. Such
Such depar
departm
tmen
entat
tation
ion will
will help
help in build
building
ing coordi
coordinat
natio
ion
n betw
between
een
different
different jobs and managers. Departments
Departments can be established on different basis. It may have
production, marketing and finance departments, if it is based upon functions.
• Span of Control
Under span of control, the number of employees and jobs managed by each manager is
specified. The chain of command is also clearly stated. It is specified that who will report
AAA
who is the smooth performance of his duties. Effective span of control avoids overlapping,
duplication and confusion in the work.
• Delegation of Authority
In order to get the job done properly and smoothly, requisite authorities are granted to the
managers.
managers. Authority is the power to command
command employees and instruct them to do a piece of
work.
work. The authority
authority empowe
empowers
rs to know certain
certain facts,
facts, to enjoy
enjoy privile
privileged
ged position
position and
command respect and obedience from employees. Delegation is no doubt, sharing task with
requis
requisit
itee autho
authorit
rity
y with
with subord
subordina
inate
tes.
s. As such
such the
the mange
mangerr mult
multipl
iplie
iess himse
himself
lf throug
through
h
delegation.
Organizational structures types:
Pre-bureaucratic structures
Pre-bureaucratic
Pre-bureaucratic (entrepreneurial
(entrepreneurial)) structures
structures lack standardization
lack standardization of tasks. This structure
is most common in smaller organizations and is best used to solve simple tasks. The structure
is totally centralized. The strategic leader makes all key decisions and most communication
is done by one on one conversations. It is particularly useful for new (entrepreneurial)
business as it enables the founder to control growth and development.
They are usually based on traditional domination or charismatic

or charismatic domination in the sense
of Max
of Max Weber 's
's tripartite classification of authority.
authority.
Bureaucratic structures
Bureaucratic structures have a certain degree of standardization. They are better suited
for more complex or larger scale organizations. They usually adopt a tall structure. Then
tension between bureaucratic
bureaucratic structures
structures and non-bureaucratic
non-bureaucratic is echoed in Burns and Stalker
distinct
distinction
ion between
between mechanisti
mechanisticc and organic
organic structur
structures.
es. It is not the entire
entire thing
thing about
about
bu
burea
reauc
ucrat
ratic
ic struct
structur
ure.
e. It is very
very much
much comple
complex
x and
and usefu
usefull for hiera
hierarch
rchic
ical
al struct
structure
uress
organization, mostly in tall organizations.
Post-bureaucratic
The term of post bureaucratic is used in two senses in the organizational literature. One
generic and one much more specific. In the generic sense the term post bureaucratic is often
used
used to desc
describ
ribee a range
range of ideas
ideas devel
develope
oped
d since
since the 198
1980s
0s that
that specif
specific
icall
ally
y contra
contrast
st
themselves with Weber's ideal type bureaucracy. This may include total quality management,
management,
AAA
culture management
management and matrix management
management,, amongst others. None of these however has
left behind the core tenets of Bureaucracy. Hierarchies still exist, authority is still Weber's
rational, legal type, and the organization is still rule bound. Heckscher, arguing along these
lines, describes them as cleaned up bureaucracies, rather than a fundamental shift away from
bureaucracy.
Gideon Kunda, in his classic study of culture management at 'Tech' argued that “the
essence of bureaucratic control - the formalization, codification and enforcement of rules and
regulations - does not change in principle.....it shifts focus from organizational structure to
the organization's culture”.
Another smaller group of theorists have developed the theory of the Post-Bureaucratic
Organization; provide a detailed discussion which attempts to describe an organization that is
fundamentally not bureaucratic. Charles Heckscher has developed an ideal type, the post-
bureaucratic organization, in which decisions are based on dialogue and consensus rather
than authority and command, the organization is a network rather than a hierarchy, open at
the boundaries (in direct contrast to culture management); there is an emphasis on meta-
decision making rules rather than decision making rules. This sort of horizontal decision
making by consensus model is often used in housing cooperatives, other cooperatives and
when running a non-profit or community organization.
organization. It is used in order to encourage
participation and help to empower people
empower people who normally experience oppression in groups.
Emplo
Employe
yees
es with
within
in the funct
function
ional
al divis
division
ionss of an organ
organiz
izati
ation
on tend
tend to perfor
perform
m a
specialized set of tasks, for instance the engineering department would be staffed only with
software engineers. This leads to operational efficiencies within that group. However it could
also lead to a lack of communication between the functional groups within an organization,
making the organization slow and inflexible.
As a whole, a functional organization is best suited as a producer of standardized goods

and services at large volume and low cost. Coordination and specialization of tasks are
centralized in a functional structure, which makes producing a limited amount of products or
services efficient and predictable. Moreover, efficiencies can further be realized as functional
organizations integrate their activities vertically so that products are sold and distributed
quickly and at low cost. For instance, a small business could start making the components it
requires for production of its products instead of procuring it from an external organization.
But not only beneficial for organization but also for employees faiths.
Divisional structure
Also called a "product structure", the divisional structure groups each organizational
function into a division. Each division within a divisional structure contains all the necessary
AAA
resources and functions within it. Divisions can be categorized from different points of view.
There can be made a distinction
distinction on geographical basis (a US division and an EU division) or
on produ
product/
ct/ser
servi
vice
ce basis
basis (diff
(differe
erent
nt produc
products
ts for diffe
differe
rent
nt custom
customers
ers:: hou
househ
sehold
oldss or
companies). Another example, an automobile company with a divisional structure might
have one division for SUVs, another division for subcompact cars, and another division for
sedans. Each division would have its own sales, engineering and marketing departments.
Matrix structure
The matrix structure groups employees by both function and product. This structure can
combine the best of both separate structures. A matrix organization
organization frequently uses teams of
employees to accomplish work, in order to take advantage of the strengths, as well as make
up for the weaknesses, of functional and decentralized forms. An example would be a
compan
company
y that
that produc
produces
es two
two produc
products,
ts, "produ
"product
ct a" and "produ
"product
ct b". Using
Using the matr
matrix
ix
structure, this company would organize functions within the company as follows: "product a"
sales department, "product a" customer service department, "product a" accounting, "product
b" sales
sales departm
department,
ent, "product
"product b" custome
customerr service
service departm
department,
ent, "product
"product b" account
accounting
ing
department.
Matrix
Matrix structur
structuree is amongst
amongst the purest
purest of organiza
organizatio
tional
nal structur
structures,
es, a simple
simple lattic
latticee
emulating order and regularity demonstrated in nature.
• Weak/Functional Matrix: A project manager with only limited authority is assigned

Weak/Functional
to oversee the cross- functional aspects of the project.
project. The functio
functional
nal manager
managerss
maintain control over their resources and project areas.
• Balanced/Functional Matrix: A project manager is assigned to oversee the project.

Balanced/Functional
Power is shared equally between the project manager and the functional
functional managers. It
brings the best aspects of functional and projectized organizations. However, this is
the most difficult system to maintain as the sharing power is delicate proposition.
• Strong/Project Matrix: A project manager is

Strong/Project manager is primarily responsible for the project.
Functional managers provide technical expertise and assign resources as needed.
Among these matrixes, there is no best format; implementation success always depends on
organization's purpose and function.
Common success criteria for organizational structures are:
• Decentralized reporting
• Flat hierarchy
• High transient speed

AAA
• High transparency
• Low residual mass
• Permanent monitoring
• Rapid response
• Shared reliability
• Matrix hierarchy
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
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.
AAA
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.
It is not uncommon
uncommon to hear finance managers referred
referred to as bean counters as they are
looking at immediate returns and initial costs against the potential at a later stage. Finance
managers
managers are the pessimists whereas
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
statements with relevant,
relevant, accurate and timely information
information and to guarantee that the required
financial revision is closely adhered to in order to protect the assets of the company. The
Depar
Departm
tmen
entt takes
takes care
care of finan
finance
ce flow
flow to ensur
ensuree that
that the
the compa
company
ny operat
operates
es withi
within
n its
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
media used to convey
convey you
yourr message
message.. Printed
Printed adverti
advertiseme
sement,
nt, radio
radio air time,
time, televisi
television
on
AAA
commercials
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
departm
department'
ent'ss strength
strengthss should
should all be in proper
proper understa
understandin
nding
g of consume
consumerr behavior
behavior and
efficient decision-making process. Typically, the major tasks of the marketing department
are as follows:
1. * Advertising & Communication
2. * Direct marketing
3. * Cond
Conduc
ucti
ting
ng rese
resear
arch
ches
es and
and mark
market
et mana
manage
geme
ment
nt
4. * Service Marketing
5. * Mai
Main
ntainin
ning im
image
age and
and bran
rand ma
manag
nagemen
ment
6. * Developing new product
7. * Promoting an
and professional sa
sales
8. * Retail management & technology.
3. Human resource:
Huma
Human
n resou
resourc
rces
es is a term
term used
used to descr
describe
ibe the indiv
individu
idual
alss who
who comp
compris
risee the
workforce of an organization, although it is also applied in labor economics to, for example,
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'.

HR'. The origins of the function arose
in organiza
organizatio
tions
ns that introduced
introduced 'welfa
'welfare
re managem
management'
ent' practic
practices
es and also in those
those that
that
adopted
adopted the princip
principles
les of 'scient
'scientific
ific managem
management'
ent'.. From these terms
terms emerged
emerged a largely
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
AAA
strategic approach to workforce management, demanded by corporate management and the

greater
greater competi
competitive
tiveness
ness for limite
limited
d and highly
highly skilled
skilled workers
workers.. The general
general purpose
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
* ensure the competitiveness of the company within labor market
* establish transparent system of staff assessment and promotion
4. Entrepreneurship:
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,
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.
• Adminis
Administra
tration:
tion: Includes
Includes sorting
sorting and/or
and/or reading
reading mail
mail and email,
email, filing,
filing, answeri
answering
ng
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
Human Resource
Resources:
s: Includin
Including
g intervi
interviewin
ewing,
g, hiring,
hiring, firing,
firing, training
training,, motiva
motivating
ting and
conflict-resolution.
• Sales: Includes marketing, finding customers, client retention, promotions, advertising

and special events.
SWOT analysis:
SWOT
SWOT analysi
analysiss is a strategic
strategic planning meth
method
od used
used to eval
evaluat
uatee the
the Strengths,
Weaknesses, O pportunities, and Threats involved in a project or in a business venture. It
involves specifying the objective of the business venture or project and identifying the
AAA
internal and external factors that are favorable and unfavorable to achieve that objective. The
technique is credited to Albert Humphrey,
Humphrey, who led a convention at Stanford University in the
1960s and 1970s using data from Fortune 500 companies.
A SWOT analysis must first start with defining a desired end state or objective. A
SWOT analysis may be incorporated into the strategic planning model. Strategic Planning,
has been the subject of much research.[
• Strengths: attributes of the person or company those are helpful to achieving

the objective(s).
• Weaknesses: attributes
attributes of the person or company that is harmful to achieving
achieving
the objective(s).
• O ppo
pport
rtun
unit
itie
ies:
s: exte
extern
rnal
al cond
condit
itio
ions
ns thos
thosee are
are help
helpfu
full to achi
achiev
evin
ing
g the
the
objective(s).
• Threats: external conditions which could do damage to the objective(s).
Identification of SWOTs is essential because subsequent steps in the process of

planning for achievement of the selected objective may be derived from the SWOTs.
First, the decision makers have to determine whether the objective is attainable, given
the SWOTs. If the objective
objective is NOT attainable
attainable a different
different objective must be selected
selected and the
process repeated. The SWOT analysis is often used in academia to highlight and identify
strengths, weaknesses, opportunities and threats. It is particularly helpful in identifying areas
for development.
• What is SWOT Exercise?
A SWOT
SWOT Exercis
Exercisee is a powerful
powerful technique
technique for uncoveri
uncovering
ng and understa
understandin
nding
g you
your
r
Strengths and Weaknesses, and for looking at the Opportunities and Threats you face.
• Why SWOT?
It helps you carve a sustainable

sustainable niche in your market by taking the best advantage of
your resources, talents, capabilities and opportunities. SWOT builds alignment. SWOT is a
ground up approach allowing everyone in the exercises
exercises to have a voice thus, increasing buy-
in and resulting in a higher level of execution. In general, Strengths and Weaknesses are
internal to your organization while Opportunities and Threats often relate to external factors.
• SWOT Benefits.
What makes SWOT particularly powerful is that it helps you uncover opportunities
that you are well- placed to exploit. And by understanding
understanding the weaknesses
weaknesses of your business,
you can manage and eliminate threats that could affect you negatively. Using the SWOT
AAA
framework to assess your strengths and that of your competitors’, you can analyze the
competitive
competitive landscape and develop a strategy that helps you differentiate
differentiate yourself from your
competitors, so that you can compete successfully in your market.
• SWOT Categories.
1) Product (what are we selling?)
2) Process (how are we selling it?)
3) Customer (to whom are we selling it?)
4) Distribution (how does it reach them?)
5) Finance (what are the prices, costs and investments?)
6) Administration (and how do we manage all this?)
• How can SWOT help me?
SWOT identifies critical-to-mission objectives. Once identified, strategy is then defined,

ownership assigned and tasks executed that will get you to the next level in performance.
• SWOT Results. :
SWOT essentially tells you what is good and bad about a business or a particular
proposition. If it's a business, and the aim is to improve it, then work on translating: strengths
(maintain, build and leverage) ,opportunities (prioritize and optimize) , weaknesses (remedy
or exit) , threats (counter) into actions (each within one of the six categories) that can be
agreed and owned by a team or number of teams.
• Origins of SWOT.
SWOT analysis
analysis came from the research conducted at Stanford
Stanford research Institute from 1960-
1970. The background to SWOT stemmed from the need to find out why corporate planning
failed. The research was funded by the fortune 500 companies to find out what could be done
about
about this
this fail
failure
ure.. Th
Thee Resea
Researc
rch
h Team
Team was
was Mario
Marion
n Doshe
Dosher,
r, Dr Otis
Otis Benep
Benepe,
e, Albe
Albert
rt
Humphrey, Robert Stewart, and Birger Lie.
AAA
Type Private.
Industry Direct selling.
Founded 1959
Rich DeVos
Founder(s)
Jay Van Andel
Headquarters Ada,
Ada, Michigan,
Michigan, United States
Area served Worldwide
Steve Van Andel (Chairman)

Chairman)
Doug DeVos (President)
Key people
Al Koop (Chief Executive)
Russell Evan (CFO)
CFO)
Revenue USD 8.4 billion (2009)
Employees 13,000
Alticor
Parent
AAA
Introduction:
Amway is the largest direct selling company and manufacturer in

manufacturer in the world that uses
network marketing
marketing to sell a variety of products, primarily in the health, beauty, and home
care markets. Amway was
was founded in 1959 by Jay Van Andel and Richard DeVos. Based in
Ada, Michigan, the company and family of companies under Alticor
under Alticor reported
reported sales growth of
2.3%, reaching US$8.4
US$8.4 billion for the year ending December 31, 2009.Its product lines
AAA
include home care products, personal care products, jewelry, electronics, Nutrilite

electronics, Nutrilite dietary
supplements, water purifiers
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 the History of Amway:
What does the word Amway mean? Amway is an abbreviation

abbreviation for "American
"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 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
immediately set out to find an initial
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

American Way Association,
Association, now Amway, bought a controlling
controlling share in
the manufacturing
manufacturing facility in Michigan
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,
distribution, Amway Services did business related tasks (like insurance for distributors)
distributors) and
Amway manufacturing, which produced LOC. By 1964, the three arms of Amway were all
merg
merged
ed into
into a sing
single
le enti
entity
ty - Amwa
Amway
y Corp
Corpor
orat
atio
ion.
n. Th
Thee idea
idea was
was by hand
handli
ling
ng the
the
manufacturing
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.
AAA
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

technically,, Amway Global)
Global) reported sales
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 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.
business. MLM is a proven business model that produces massive success
for individuals.
Alticor and Amway Sales Growth: 1960 to 2008:
February 5th, 2009 by ibofightback Posted in Amway News

AAA
Amway global sales were reported at “estimated retail” until 2000 when the holding
company of Alticor was formed. This means they’re 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
I’ve converted the figures so they can be properly compared. It’s 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 Amway’s 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 reported as around $100 million, so by far the majority of the sales are
through the Amway business opportunity.
Amway Sales Data:

AAA
Estimated Estimated Estimated Estimated

Year Year Year Year
Retail Sales Retail Sales Retail Sales Retail Sales
1960 $0.5 million 1970 $120 million 1980 $1.1 billion 1990 $2.2 billion
1 96 1 ? 1971 $165 million 1981 $1.4 billion 1991 $3.0 billion
1 96 2 ? 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
1969
1969 $85 milli
million
on 1979
1979 $80
$800
0 mill
million
ion 1989
1989 $1.9
$1.9 billi
billion
on 1999
1999 $5.0
$5.0 bill
billion
ion
Amway
Amway has grown
grown fairl
fairly
y quickl
quickly
y since
since its
its incept
inceptio
ion.
n. Its
Its histo
histori
ricc sales
sales data
data at
estimated
estimated retail prices is provided below from 1959 to 2000 (in 2000 Amway switch
switch over to
Alticor. At its peak in 1997 Amway estimated retail sales worldwide at 7 Billion USD. With
the foundi
founding
ng of Alticor , the report
report meth
methodo
odolog
logy
y was
was chang
changed
ed and the actua
actuall sales
sales to
distributors instead of estimated retail sales (ERS) have been reported since 2001. Taking the
sales data published in 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.
VISION OF AMWAY:
• Helping people live better lives.
• Showing where the business wishes to be in the future.
MISSION OF AMWAY:
• Through the partnering of Distributors, Employees, and the Founding Families and
the support of quality products and service, we offer all people the opportunity to
AAA
achieve their goals through the Amway Sales and Marketing Plan. Broad over riding
statement of purpose.
• To facilitate best business opportunities.
• To deliver high-quality products to semi-urban and urban homes in diverse areas of
insurance, home tech, home care, personal care, cosmetics and wellness.
GOAL OF AMWAY:
• The development of new business opportunities.

• 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
for the
the Blin
Blind
d (AIC
(AICB)
B),, in reco
recogn
gnit
itio
ion
n for
for work
work carr
carrie
ied
d out
out for
for the
the visu
visual
ally
ly
challenged.
• 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:
Project Sunrise: The objective is to identify one orphanage/institution at each location

where Amway has a modestly-large
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
AAA
· Children’s 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, independentRetail
independentRetail
business.
Active Lifestyle • Artistry • Atmosphere • Beautycycle • Body Series • Boutique • Dish

Drops • Eddie Funkhouser • Emma Page • eSpring • L.O.C. • Gensona • Glister •
Glister • Hymm •
iCook • LifeStyle
LifeStyle Balanced
Balanced Solutions
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
Nutrilite®
Nutrilite® is the world’s leading brand of vitamin, mineral, and dietary supplements, grown
harvested and processed on its own certified organic farms.
Artistry® is one of the world’s 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.
AAA
Dynami
Dynamite'
te'ss range
range of male
male groomin
grooming
g products
products,, formula
formulated
ted interna
internatio
tionall
nally
y is designe
designed
d 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.
Satiniq
Satinique
ue Advance
Advanced
d Range
Range with
with unique
unique Ceramid
Ceramidee Infusion
Infusion System
System uses nature'
nature'ss 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.
AAA
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".
Great
Great Value
Value Product
Product Range
Range offers
offers you Great
Great Qualit
Quality,
y, Great
Great Perform
Performance
ance,, Great
Great Price
Price
and a Money Back Guarantee!
Amway’s 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
IBO/ABO/AIE-Independent Business Owner/Amway Business Owner/Amway
Independent Entrepreneur is a business partner of Amway who is authorized to
AAA
market and distribute products and services available

available from Amway. Different names
are used in different markets.
• 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
Performance
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
Retail Profit
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
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.
• 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.
months. In North
North Americ
Americaa a Platinu
Platinum
m is generati
generating
ng a minimu
minimum
m of approxim
approximatel
ately
y
$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.
AAA
• Independent Business Owner (IBO):
An IBO is, literally, an Independent Business Owner: an individual or individuals

who own and operate their own business, which is powered by Amway North America,
formerly Quixtar. IBOs are the CEOs
CEOs of their own businesses, and they make many of the
same daily business decisions other business executives make. As independent business men
and women, IBOs decide how active to be in their business, what products to sell and at what
prices, who to sponsor, what hours to keep, and other important decisions. IBOs are
independent contractors; they are not employees of Amway North America or Amway
Corporation. As independent business owners, IBOs are free to make decisions many others
in business are not free to make.
• Independent Business Owners Association International (IBOAI) :
The IBOAI (IBOA International or Independent Business Owners Association International)

is a trade association representing Independent Business Owners affiliated with Amway
North America, formerly Quixtar. It is the primary advocacy organization for IBOs in North
America. A trade association is an organization of business people who share common
interests or concerns, and who educate and represent their members. The IBOAI (or IBOA
International) is one example.
Role of the IBOAI Board:
The IBOAI Board is the representative body of the Association acting on behalf of all
IBOs. With IBO input, support, and participation, the IBOAI Board listens to ideas, proposes
improvements, and advises Amway on the best way to move the business forward. Working
closely with Corporate staff, the Board advises Amway on every facet of the business, from
products and promotions to operations and business guidelines, as it has for 50 years.
Together, they bring positive change to this business, to keep it moving forward and make
certain the business is better for every generation.
2010 IBOAI Board and Governance & Oversight Committee:
• Steve Woods, Chairman

• Brad Duncan, Vice Chairman
• Bob Andrews, Past Chairman
Other important directors:
1. Alberto Aguilera
AAA
2. Glen Baker
3. Mike Bundy
4. John Crowe
5. Howie Danzik
6. Jim Dornan
7. Jody Dutt
8. Kanti Gala
9. Bert Gulick
10. Leif Johnson
11.Shivaram Kumar
12. Pedro Lizardi
13. Doug Weir
14. Doyle Yager
15. Dan Yuen
IBOs are never alone. They have a sponsor, a line of sponsorship, and the IBOAI – their
primary advocacy organization – behind them all the way.
Organization type and Business Opportunity:
The Amway is private co operative organization. The Amway Sales and Marketing
Plan put you in control, allowing you the flexibility to work where and when you want,
giving you time for family and friends as well as the opportunity to earn a good income. It
adapts easily to your needs and ambitions, and grows with them, offering you all the personal
support and assistance you require to become the Business Owner you want to be. With
Amway you are Connected to the global leader in multilevel marketing,
marketing, with over 40 years
of experience, Supported by great products and people who will help you succeed, and
finally In Control of your life.
Sales and Marketing Plan:
The Amway Sales and Marketing Plan is a low risk, low start-up cost business
opportunity that is open to everyone. It allows you to build your business through retailing
products and sponsoring other people who, in turn, can retail products and offer the business
opportunity to others. By passing your sales and marketing knowledge to your developing
team, you not only build your own business network but also enable others to build one of
their own.
AAA
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 objective
objectivess it wanted to achieve.
achieve. The following
following objectives
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.
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 company’s management
Functional pattern of Amway:
Following are the main departments of Amway:

1. Finance and accounts.
2. Marketing and Sales.
3. Human resource and administration.
Amway Global provides you with support like:

AAA
• 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
products,, and we'll do the rest, like process
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.
• 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
your prod
produc
ucts
ts and
and bran
brands
ds with
with nati
nation
onal
al adve
advert
rtis
isin
ing,
g, prom
promot
otio
ions
ns,, and
and even
eventt
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
full-time employees are all considered AOF volunteers. At 56 Amway offices across India,
AOF
AOF has
has form
formed
ed a team
team of 6 or more
more dist
distri
ribu
buto
tors
rs and
and empl
employ
oyee
eess to form
form a Lo
Loca
call
Implementation
Implementation Committee
Committee (LIC). LIC takes ownership of being the face of Amway’s
Amway’s 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.
Amwa
Amway
y has
has help
helped
ed mill
millio
ions
ns of peop
people
le arou
around
nd the
the worl
world
d to star
startt thei
theirr own
own
independent business, through which they engage in person-to-person marketing. This type
of direct selling involves matching
matching a consumer's
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.
Ownership of Amway:
IBOs and Customers:

AAA
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
Amway's Customer Satisfaction
Satisfaction Guarantee.
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 Client
Clients,
s, resulti
resulting
ng in product
product sales.
sales. Amway'
Amway'ss tiered
tiered compensa
compensatio
tion
n plan rewards
rewards the
movement of product through an IBO's sales organization and their ability to train others to
create their own successful organizations.
organizations. When people visit Amway's
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
Edel
Edelma
man
n 200
2005A
5Annu
nnual
al Trust
Trust Barom
Baromet
eter
er study
study indic
indicat
ated
ed that
that infor
informa
matio
tion
n obtai
obtained
ned in
advertising was credible, while 42% trusted information obtained from family, friends, and
colleagues.
Buzz Marketing:
Alticor pioneered buzz marketing
marketing through its person-to-person referral model. Some
companies
companies spend millions
millions on strategies
strategies intended to get people to spread the word about their
products. Through its Independent Business Ownership Plan, Am-way does the same by
rewarding IBOs for spreading the word about the business opportunity and the exclusive
products available through Amway. This is a much targeted market spend, since IBOs are
rewarded only when their efforts actually result in product sales.
Business Systems:
IBOs employ many different approaches to build their businesses, typically involving
training systems, motivational meetings and tools, and time-tested tactics to approach people
and interest them in the business opportunity and products. When a person registers with
AAA
Amway, it typically is the result of having been approached by an IBO already involved in
one of several large organizations that provide training and support to IBOs. Often, a new
IBO
IBO also
also will
will choos
choosee to atte
attend
nd option
optional
al and volunt
voluntar
ary
y trai
trainin
ning
g sessi
sessions
ons or purcha
purchase
se
professional
professional development materials
materials provided by that organization - all covered by a money-
back guarantee.
Independence:
The beauty of Amway's business model is that there can be as many ways of pursuing
the business as there are IBOs. If you're into health, you can focus on Nutrilit supplements
and XS Energy Drinks.
SWOT analysis of Amway:
STRENGTH:
• Based on direct selling operations. Hence it can be A home based business. Every can
participate in business. It’s easy to get admission in Amway with easy rout like
intent.
• Training to staff.
• 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
business with nationa
nationall and internat
internationa
ionall scope
scope gives
gives more opportunit
opportunity
y 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.
AAA
• 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 company.
THREATS:
• Too much freedom to IBOs.
• Change in government policy may affect to the profit and freedom of company.
• Compet
Competitor
itorss like AVON, MARY KAY;
KAY; SUNRID
SUNRIDER
ER creates
creates lot of competi
competition
tion in
market which leads to strong marketing competition in market.
AAA
Finding:
I’ve written about Amway based entirely on factual, confirmable sources. If you’re
researching
researching Amway, especially on the Internet, chances are you’ve encountered
encountered people who
claim Amway is some kind of scam business, it’s illegal, the products are poor quality, or
some other information that has made you think twice about being involved.
Skim through these finding and decide for yourself whether those kinds of opinions
really have a lot of credibility in the face of all of these facts. Have all these major companies
and organizations
organizations that have recognized Amway for excellence been conned? For fifty years?
Or perhaps the opinions you read on the internet have been formed from limited or even no
experience
experience – from encountering
encountering some new or inexperienced
inexperienced Amway rep that never bothered
to learn how to act professionally or properly explain the concept, and probably never did
much more than dabble for a few months. Or perhaps the experience was with just one of
dozens and dozens of different Amway affiliated
affiliated organizations, each with different
different ways of
doing things that may not all appeal to everyone? Or perhaps their opinions driven by
business interests working or being paid by competitors or potential competitors to Amway?
CONCLUSION:
AAA
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 that’s why they are good for health
and environment. Amway covers
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
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 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.
SUGGESTIONS:
• Trial packs should be used because customer must have to introduce the product.
Once customer gets idea about product he comes to know advantages of products.
• The products should be cheap the home delivery system takes at least two days to
deliver the products so the delivery should be instant.
• There must be multiple options for purchasing the products for distributers like
online, tale and instant purchasing.
AAA
• In every city, the Amway office should be situated in such a location so that it is in
reach of all distributers.
Bibliography:
1) www.worthwilemag.com
2) http:
http://
//ww
www.
w.am
amwa
way.
y.in
in//
3) http://www.amway.in/Articles/Article.
4) http://
http://en.
en.wik
wikiped
ipedia.
ia.org/
org/wiki
wiki/Am
/Amway
way
5) http://
http://www
www.au
.author
thorstre
stream.
am.com/
com/
6) http:
http://
//ww
www.
w.nut
nutril
rilit
ite.c
e.com
om//
7) http://
http://en.
en.wik
wikiped
ipedia.
ia.org/
org/wiki
wiki/Or
/Organi
ganisati
sation
on
8) http://
http://en.
en.wik
wikiped
ipedia.
ia.org/
org/wiki
wiki/Bu
/Busine
siness
ss
9) http://
http://www
www.bu
.busine
sinessba
ssballs
lls.com
.com
10) http://en.wiki
http://en.wikipedia.org/
pedia.org/wiki/Ad
wiki/Administra
ministration
tion
11) http://www.bu
http://www.business-stand
siness-standard.com
ard.com
12) http://www.sc
http://www.scribd.com
ribd.com
13) http://www.m
http://www.mouthshut.
outhshut.com
com
14) http://www.m
http://www.mouthshut.
outhshut.com
com
AAA
15)http://wiki.answers.com
16)http://dictionary.reference.com
17) http://www.t
http://www.thetruthabo
hetruthaboutamway
utamway.com/
.com/
18) http://articles.
http://articles.bplans.c
bplans.com.
om.
Annexure:
Amway India plans 170 new branches by 2013
Eyes 25% y-o-y growth for the next five years.
Amway India Enterprises

Enterprises Pvt Ltd, a major direct selling FMCG Company
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-
categories- Personal care, Home care, Nutrition
Nutrition & Wellness,
Wellness, Cosmetics and
Great Value products. Nutrition & Wellness segment contributes around 50 per cent of
Amway India’s 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. Pinckney, MD & CEO, Amway India, said at a press conference during plant
visit of reporters to its Baddi facility in Himachal Pradesh.
AAA
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.
"Amwa
Amway’
y’ss focu
focuss in the
the past
past 2-3
2-3 year
yearss was
was to impr
improv
ovee cons
consum
umer
er acce
access
ss and
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
centre’s 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.

Qdoc - Tips Amway Full Project

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Qdoc - Tips Amway Full Project

Uploaded by

Copyright:

Available Formats

EXCEL BUSINESS ACADEMY

(India’s Premium Techno Management B-School)

“A CONCEPTUAL STUDY OF BUSINESS MANAGEMENTAND

Under the guidance of

Prof. Yuvaraja S.E.

Excel Business Academy

Ullal Main Road

Management from Excel Business Academy, Bangalore.

any other institute or university for the award of any degree.

His character and conduct was good during the study.

Date: / / Prof. Yuvaraja S. E.

guidance and encouragement crowned our efforts with success.

I consider it my privilege to express gratitude and thanks to the Management – Excel

I thank our Principal Prof.

influence during the course of the project work.

friends for their cordiality & support during my project.

Place: Bangalore swapnil

CHAPTER CONTENTS PAGE

1 1.1 Meaning of Business

1.2 Meaning of Management

1.3 Meaning of Business Administration

1.4 Difference between Business Management & Business

1.5 Types of Business

2.1 Meaning of Organization

2.2 Types of Organization

2.3 Types of Ownership

2.4 Vision, mission & Goals of the company

2.5 Organization Structure & it’s Types

2.6 Functional Patterns – People, policies, systems, problems if

2.7 SWOT Analysis

3.2 Vision, Mission & Goals of the Amway

3.3 Organizational Structure & Type of Amway

3.4 Type of Organization

3.5 Functional Patterns of Amway

3.6 Type of Ownership

3.7 SWOT Analysis

4 Summary of Findings & Conclusion

LIST OF TABLES AND CHARTS:

TABLE CONTENTS PAGE NO.

2 Alticor and Amway Sales Growth: 1960 to 2008

3 Amway sell data since 1960 to 1999

This executive summary

The important factor important to study is Organization. It is the foundation upon

The Meaning of Business:

Great quote on Worthwhile by

A business' purpose is to attract and keep customers.

“The efficient and effective

management1. The group of individuals

2. The initiation and maintenance of an investment portfolio.

Basic functions of management:

• Organizing: (Implementation) making optimum use of the resources required to

• Leading/Directing: Determining what needs to be done in a situation and getting

• Controlling/Monitoring: Checking progress against plans.

• Motivation : Motivation is also a kind of basic function of management, because

Business administration consists of the performance or management of business

“The universal process of organizing people and resources efficiently so as to direct

The word is derived from the Middle English word administracioun,

In some organizational analyses, management is viewed as a subset of administration,

For a large corporation,

Business administration includes an understanding of entrepreneurship: tax structures

Management vs. Administration:

1) Administration is a determinative function, while management is an executive function.

2. Administration is a determinative function, while management is an executive function.