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direct supply channels and sell products to friends and customers that they know or meet. Amway's supply chain is different from a more conventional supply chain that normally sells goods to final consumers through retail outlets. Amway's way of working depends on building lasting connections with the end consumer. Feedback provided by consumers and IBOs helps to shape future changes in products and the service provided. As a global company, Amway has built up a strong regional structure around regional affiliates such as Amway UK and the Republic of Ireland. Operating through the regional structure, affiliates are responsible for: forecasting (ensuring stocks are sufficient to meet demand) customer service efficient distribution: ensuring products reach IBOs on time and in top condition product promotion and IBO support e.g. supplying brochures to IBOs. Getting the image right is vital in a business that relies on building relationships with individuals and the wider community. IBOs often sell directly to friends and it is essential to provide high quality, value for money products with a 100% satisfaction guarantee. Amway spends time, money and effort on creating an appropriate design and appearance for Amway products. It also develops campaigns that support the business and social aims of the company.
03_Growth
Growth is a major driving force for global businesses. It has to be. Standing still is not a viable option in a world in which competitors are growing by building new links in new countries and markets. Growth brings advantages known as economies of scale. These advantages include being able to spread advertising and marketing costs over much greater volumes of output. This results in lower unit costs and more competitive prices. Economies of scale include spreading costs over a larger output. By expanding globally, Amway can increase its scale of operations. This leads to: increased sales and profits for Amway increased sales and profits for IBOs better quality and a wider, cheaper product range for final customers.
To achieve these benefits Amway continues to expand into new markets such as Eastern Europe and the Ukraine. Amway regularly seeks to develop new products in line with market research aimed at finding out what customers want. In order to attract IBOs and new affiliates, Amway needs a strong brand image. Corporate Social Responsibility (CSR) is vital to any company seeking to build its image. CSR refers to the role that a company plays in meeting its wider commitments as a citizen. Such commitments include supporting worthy causes and always acting in an ethical, honest way. Because Amway operates in many different markets worldwide and with a range of affiliates and IBOs, it has to devise and communicate its plans for CSR activities very carefully. Recently, Amway has produced its 'One by One - Global Cause Program'. The plan is clear and
robust and is helping to maintain Amway's reputation with all its stakeholders.
Further research indicated that people linked to Amway had a clear favourite area for the Global Cause Program to cover. They wanted it to develop initiatives concerned with children and the family. They felt that there are millions of compelling reasons to focus on helping children including. For example: Amway is a business owned by and operated by families. Children are the world's future. Children embody hope. With children it is possible to make a lifelong difference.
Research showed that: Half of the world's poor people are children. Every year 12 million children die before their fifth birthday. 540 million children live in crisis situations. Over 125 million children have no access to basic education.
Even in the most developed countries some children are left behind.
Research also showed, however, that children's needs differ from one part of the world to another. Amway therefore recognises that if its Global Cause Program is to have maximum impact it will need to be tailored to the specific needs of particular regions and areas.
06_Conclusion
Amway's 'OneBYOne' campaign provides a good example of the way in which businesses can make a difference in the communities in which they operate. Research showed that Amway's stakeholders are committed to activities which better the lives of families and children. The company has therefore been able to formulate a plan and a well targeted programme to harness the commitment of its people to help others and to create a more prosperous world. By working with UNICEF it is partnering one of the world's most highly regarded children's organisations. Together they are able to help children enjoy a better future.