Amway 2 Full - Case Study
Amway 2 Full - Case Study
Amway 2 Full - Case Study
Direct Selling
The concept of direct selling is based
upon person-to-person relationships.
The seller goes to the consumer
rather than the consumer to a shop.
In todays fast changing society, where
more people work and shopping
patterns have altered, this type of
shopping not only provides consumers
with accessibility to a wide range of
products but is also convenient.
Amway
Amway
Amway Culture
Amways co founders, Rich DeVos
and Jay Van Andel, believe that people
everywhere desire the opportunity to
achieve and better their lives. Amway
has developed a series of statements
which outline its culture. As with
many different types of statements of
corporate purpose, these statements
fall into a hierachy:
MISSION
Broad over-riding
statement of purpose.
Amway VALUES
VISION
Showing where the business
wishes to be in the future.
VALUES
Precise statements listing
objectives which provide
guidelines for the business.
AMWAY MISSION
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 achieve their
goals through the Amway Sales and
Marketing Plan.
AMWAY VISION
To be the best business opportunity
in the world.
values
values
values
values
values
1. Partnership
Amway is built on the concept
of partnership, beginning with the
partnership between our founders. The
partnership that exists among the
founding families, distributors, and
employees is our most prized
possession. We always try to do what
is, in the long-term, in the best interest
of our partners, in a manner which
increases trust and confidence. The
success of Amway will reward all who
have contributed to its success.
2. Integrity
Integrity is essential to our business
success. We do what is right, not just
whatever works. Amways success is
measured not only in economic terms,
but by the respect, trust and credibility
we earn.
3. Personal Worth
We acknowledge the uniqueness
created in each individual. Every
person is worthy of respect, and
deserves fair treatment and the
opportunity to succeed to the fullest
extent of his or her potential.
4. Achievement
We are builders and encouragers. We
strive for excellence in all we do. Our
focus is on continuous improvement,
progress and achievement of individual
and group goals. We anticipate
change, respond swiftly to it, take
action to get the job done and gain
from our experiences. We encourage
creativity and innovation.
5. Personal Responsibility
Each individual is responsible and
accountable for achieving personal
goals, as well as giving 100 per cent
effort in helping achieve corporate or
team goals. By helping people help
themselves, we further the potential for
individual and shared success. We also
have a responsibility to be good
citizens in the communities where we
live and work.
6. Free Enterprise
We are proud advocates of freedom
and free enterprise. Human economic
advancement is clearly proven to
be best achieved in a free market
economy.
The Results:
With the full support of the Direct
Selling Association (DSA), the industry
body representing direct selling
companies, Amway has lobbied both
MPs and opinion formers and achieved
extensive media exposure, highlighting
the need for the legislation to be
amended.
Amway
Responsibility
to Employees and
Customers
All organisations have a responsibility
to serve their employees and customers,
who are likely to be affected by the
consequences of an organisations
activities. In todays business
environment it is unacceptable for
organisations to ignore the activities of
consumers and individuals within the
wider community. For Amway this
means doing business ethically and
taking a stance on key issues. (Ethics
concern the moral principles or rules
Business Awareness
Campaign
Amway is a member of the Direct
Selling Association (DSA), the
industry body representing forty
direct selling companies. All member
companies have to abide by its Code
of Practice which is endorsed by the
Office of Fair Trading.
In July 1992 Amway (UK) Ltd
launched its Business Awareness
Campaign to persuade the government
to tighten up the current pyramid
selling legislation.
The campaign had three aims:
Down loading
Participants sell
stock on to the next person at a
profit. The process continues until
the final participants are left with
stock which cannot be sold
because of the inflated price of the
product.
Unusable stock
People are
encouraged to buy a large amount
of stock which they cannot sell and
cannot return to the company.
Customer
return
Satisfaction Guarantee.
policy,
demographics
economic recession
customer satisfaction guarantee
pyramid selling
Direct Selling Association
retail strategy
suggested retail price distributor
mission statement values
DIRECT SELLING
Advantages
Disadvantages
RETAIL SHOPPING
Advantages
Disadvantages
DIRECT SELLING
ASSOCIATION