A Conceptual Study of Business Managementand Organization System

EXCEL BUSINESS ACADEMY
(Indias Premium Techno Managemen B!Schoo"#

AAA
A CONCEPTUAL STUDY OF BUSINESS MANAGEMENTAND
ORGANIZATION SYSTEM
SUBMITTED BY
Swapnil S.V.
Re N!.ESB"#$%$"AUG"MBA"$%%
Un&e' ()e *i&an+e !,
P'!,. Y*-a'a.a S.E.
E/+el B*0ine00 A+a&e12
Ullal Main R!a&
Banal!'e.
STUDENT DECLARATION3
AAA
I hereby declare that the project report entitled a conceptual study of business
management and organization system Amway. Bangalore has been done by me under the
guidance of Prof. u!araj" Professor #BA $ P%P#" &'cel Business Academy" and
Bangalore. (his project report has been submitted to &'cel Business Academy" Bangalore as
a part of partial fulfillment for the award of the degree of Post %raduate Program in
#anagement from &'cel Business Academy" Bangalore.
I also hereby declare that this project report has not been submitted at any time to
any other institute or uni!ersity for the award of any degree.
Place) Bangalore
*ate) + + ,wapnil.
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CERTIFICATE BY GUIDE
(his is to certify that ,wapnil -.,. bearing .eg /o. &,B+0121+A3%+#BA+122" A student of
2
st
(rimester P%P# during the academic year 012140120 has successfully completed the
project report a conceptual study of business management and organization system
Amway. 3nder the guidance of Prof. u!araja ,.&" &'cel Business Academy" in partial
fulfillment for the award of Post %raduate Program in #anagement from &'cel Business
Academy" Bangalore.
5is character and conduct was good during the study.
Place) Bangalore
*ate) + + Prof. u!araja ,. &.
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AC4NO5LEDGEMENT
(he satisfaction and euphoria that accompany the successful completion of any tas6 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 pri!ilege to e'press gratitude and than6s to the Manae1en( &'cel
Business Academy" Bangalore for gi!ing me the opportunity to conduct this study.
I than6 our Principal P'!,. T)e.a0wi Na-il!!'" for the encouragement and intellectual
influence during the course of the project wor6.
I wish to e'press my heartfelt gratitude to P'!,. G*'*(e." 5ead P%P# $ (echno
#anagement ,tudies7 P'!,. S)'e2a 4 Ra!" 5ead #BA $ (P* and my Project %uide
P'!,. Y*-a'a.a S E. for their help and able guidance for the completion of the project
successfully.
I am grateful to the 8ibrarian of &'cel Business Academy" for his support during my
study.
8ast but not the least" I would also li6e to than6 each and e!eryone especially all my
friends for their cordiality $ support during my project.
Da(e3 " "
Pla+e3 Banal!'e 0wapnil
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TABLE OF CONTENTS3
C6APTER
NO.
CONTENTS PAGE
NO.
% 2.2 #eaning of Business
2.0 #eaning of #anagement
2.9 #eaning of Business Administration
2.: *ifference between Business #anagement $ Business
Administration
2.; (ypes of Business
# O'ani7a(i!nal S20(e1 8Gene'al S(*&29
0.2 #eaning of <rganization
0.0 (ypes of <rganization
0.9 (ypes of <wnership
0.: -ision" mission $ %oals of the company
0.; <rganization ,tructure $ it=s (ypes
0.> ?unctional Patterns People" policies" systems" problems if
any.
0.@ ,A<( Analysis
: O'ani7a(i!nal S20(e1 wi() 'e0pe+( (! A1wa23
9.2 Introduction
9.0 -ision" #ission $ %oals of the Amway
9.9 <rganizational ,tructure $ (ype of Amway
9.: (ype of <rganization
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9.; ?unctional Patterns of Amway
9.> (ype of <wnership
9.@ ,A<( Analysis
; S*11a'2 !, Fin&in0 < C!n+l*0i!n
:.2 ?indings
:.0 Bonclusion
:.9 suggestion
LIST OF TABLES AND C6ARTS3
TABLE CONTENTS PAGE NO.
2 ,tructure of <rganization
0 Alticor and Amway ,ales %rowth) 2C>1 to 011D
9 Amway sell data since 2C>1 to 2CCC
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E/e+*(i-e S*11a'23
(his e'ecuti!e summary will gi!e you 6ey facts concerning the Amway. (hese facts
will help to find out how well the Amway opportunity can match your business goals. 8et=s
start from main component that is business. A businessE purpose is to attract and 6eep
customers. Its one basic function is to reliably sol!e customer problems. #anagement in all
business areas and organizational acti!ities are the acts of getting people together to
accomplish desired goals and objecti!es efficiently and effecti!ely. Also #anagement is the
act or function of putting into practice the policies and plans decided upon by the
administration. 5ence Administration ma6es the important decisions of an enterprise in its
entirety" whereas management ma6es the decisions within the confines of the framewor6"
which is set up by the administration.
(he important factor important to study is <rganization. It is the foundation upon
which the whole structure of management is built. <rganization is not an end it itself but a
means to achie!e an end. Ahether an organization is good or bad depends on the fact as to
how much efficiently and promptly it is in a position to achie!e the objecti!es. 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. Borporate !ision describes
aspirations for the future" without specifying the means that will be used to achie!e those
desired ends.
(he #ission of organization should represent the broadest perspecti!e of the
enterpriseEs mission. (he major outcome of strategic road4mapping and strategic planning"
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after gathering all necessary information" is the setting of goals for the organization based on
its !ision and mission statement.
(he most important topic is an organizational structure is a mainly hierarchical
concept of subordination of entities that collaborate and contribute to ser!e one common
aim. Analysis by A ,A<( &'ercise is a powerful techniFue for unco!ering and
understanding your ,trengths and Aea6nesses" and for loo6ing at the <pportunities and
(hreats you face.
(he Amway+Amway %lobal" a subsidiary of Alticor" is mar6eting nutritional
supplements" s6in and personal care products" air and water purifiers and a line of home
cleaning products. (he products are sold through Independent Business <wners GIB<H. (he
most effecti!e strategy for this is direct mar6eting" today also 6nown as attraction mar6eting.
3sing attraction mar6eting for Amway products is the fastest way to ma6e steady retail
profits.
Amway already helped o!er 9 million people start on their path to success. (heyEre
attracted by the unlimited potential of the opportunity" the support of a corporation with ;1
years of e'perience and compassion" a global community ready to offer support" and a
premier compensation plan.
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T)e Meanin !, B*0ine003
%reat Fuote on Aorthwhile by #ar6 Iaiser on the meaning of business)
J(he simplest definition of business is you sol!e a customerEs problem and create
sustainable profits o!er time. Anyone with !ision should understand the problem theyEre
sol!ing. (he problem with business today is that people thin6 the meaning is about building
a monument to you. (he meaning of business is ha!ing an impact on peopleEs li!es.J
#y definition is close)
A businessE purpose is to attract and 6eep customers. It=s one basic function is to reliably
sol!e customer problems...
A =*0ine00 is a legally recognized organization designed to pro!ide goods or
ser!ices" or both" to consumers" businesses and go!ernmental entities. Businesses are
predominant in capitalist economies. #ost businesses are pri!ately owned. A business is
typically formed to earn profit that will increase the wealth of its owners and grow the
business itself. (he owners and operators of a business ha!e as one of their main objecti!es
the receipt or generation of financial returns in e'change for wor6 and acceptance of ris6.
/otable e'ceptions include cooperati!e enterprises and state4owned enterprises. Businesses
can also be formed not4for4profit or be state4owned.
(he etymology of JbusinessJ relates to the state of being busy either as an indi!idual
or society as a whole" doing commercially !iable and profitable wor6. (he term JbusinessJ
has at least three usages" depending on the scope K the singular usage Gabo!eH to mean a
particular company or corporation" the generalized usage to refer to a particular mar6et
sector" such as Jthe music businessJ and compound forms such as agribusiness" or the
broadest meaning to include all acti!ity by the community of suppliers of goods and ser!ices.
5owe!er" the e'act definition of business" li6e much else in the philosophy of business" is a
matter of debate and comple'ity of meanings.
Meanin O, Manae1en(3
#anagement is generally defined as the art and science of getting things done
through others. (his definition emphasizes that a manager plans and guides the wor6 of other
people. ,ome GcynicalH indi!iduals thin6 that this means managers don=t ha!e any wor6 to do
themsel!es. As managers ha!e an awful lot of wor6 to do. #anagement is the art and science
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of getting things done through others" generally by organizing and directing their acti!ities
on the job. A manager is therefore someone who defines" plans" guides" assists" and assesses
the wor6 of others" usually people for whom the manager is responsible in an organization.
Manae1en( De,ine3
(he efficient and effecti!e operation of a business" and study of this subject" is called
management.
(he main branches of management are financial management" mar6eting
management" human resource management" strategic management" production management"
operation management" ser!ice management and information technology management.
management2. (he group of indi!iduals who ma6e decisions about how a business is run.
0. (he initiation and maintenance of an in!estment portfolio.
Manae1en( in all business areas and organizational acti!ities are the acts of
getting people together to accomplish desired goals and objecti!es efficiently and effecti!ely.
#anagement comprises planning" organizing" staffing" leading or directing" and controlling
an organization Ga group of one or more people or entitiesH or effort for the purpose of
accomplishing a goal. .esourcing encompasses the deployment and manipulation of human
resources" financial resources" technological resources" and natural resources.
Because organizations can be !iewed as systems" management can also be defined as
human action" including design" to facilitate the production of useful outcomes from a
system. (his !iew opens the opportunity to EmanageE oneself" a pre4reFuisite to attempting to
manage others
#anagement can also refer to the person or people who perform the actGsH of management.
Ba0i+ ,*n+(i!n0 !, 1anae1en(3
Plannin) *eciding what needs to happen in the future Gtoday" ne't wee6" ne't
month" ne't year" o!er the ne't ; years" etc.H and generating plans for action.
O'ani7in) GImplementationH ma6ing optimum use of the resources reFuired to
enable the successful carrying out of plans.
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S(a,,in) Lob analyzing" recruitment" and hiring indi!iduals for appropriate jobs.
Lea&in"Di'e+(in) *etermining what needs to be done in a situation and getting
people to do it.
C!n('!llin"M!ni(!'in) Bhec6ing progress against plans.
M!(i-a(i!n) #oti!ation is also a 6ind of basic function of management" because
without moti!ation" employees cannot wor6 effecti!ely. If moti!ation doesnEt ta6es
place in an organization" then employees may not contribute to the other functions
Gwhich are usually set by top le!el managementH.
B*0ine00 A&1ini0('a(i!n3
Business administration consists of the performance or management of business
operations and thus the ma6ing or implementing of major decisions. Administration can be
defined as)
(he uni!ersal process of organizing people and resources efficiently so as to direct
acti!ities toward common goals and objecti!es.
(he word is deri!ed from the #iddle &nglish word administracioun" which is in turn
deri!ed from the ?rench administration" itself deri!ed from the 8atin administratio K a
compounding of ad GJtoJH and ministratio GJgi!e ser!iceJH.
A&1ini0('a(!' can ser!e as the title of the general manager or company secretary
who reports to a corporate board of directors. (his title is archaic" but" in many enterprises"
this function" together with its associated ?inance" Personnel and management information
systems ser!ices" is what is intended when the term Jthe administrationJ is used.
In some organizational analyses" management is !iewed as a subset of administration"
specifically associated with the technical and mundane elements within an organizationEs
operation. It stands distinct from e'ecuti!e or strategic wor6. In other organizational
analyses" administration can refer to the bureaucratic or operational performance of mundane
office tas6s" usually internally oriented and reacti!e rather than proacti!e.
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As business has become more comple'" so too has the o!ersight of companies) their
management" their growth strategies" their personnel issues" their ta'es and the role that ta'es
play in corporate economic strategy. Ad!ertising has grown to include multiple media outlets
and an assortment of targeted interest groups) new customers" repeat customers"
stoc6holders" in!estors and new geographic mar6ets. #ar6eting has become the term of
choice for this entire strategically placed product e'posure.
*efining business administration then means defining o!ersight roles for the
assortment of internal specialties that e!ery business of any size has come to include.
Perhaps the best way to define business administration is to loo6 at the types of courses
offered in #BA curriculums and the specialties" or Jmajors"J that one can opt for in an #BA
program.
?or a large corporation" business administration is going to include international and
global business" as well as strategy and economics. In this instance" the definition of business
administration will include reFuirements of certain cultural differences and an acute
understanding of the global economy and its current fluidity. Also included in business
administration at this scale is the art and science of acFuisition) when to buy a company or
property and why.
Business administration will always include the intangible Fuality of leadership7
Along with leadership comes the tas6 of negotiation and conflict resolution" specifically with
regard to personnel. Beha!ioral psychology plays an important role in business
administration) a misstep in an ad!ersarial situation with a union can ta6e a company under"
as it did Bontinental Airlines some years ago. (he definition of business administration will
ha!e to include mar6eting7 you wonEt ha!e a business to administer unless you sell your
products. Ancillary to mar6eting is an understanding of the new tools a!ailable for product
distribution" and that will in!ol!e understanding e4business and how it is rapidly e!ol!ing.
Business administration includes an understanding of entrepreneurship) ta' structures
for small businesses along with personnel issues at that le!el" in!entory and cash flow" and
all the other small matters that ma6e a big difference to a new or small business. A critical
part of business administration is the awareness of ris6. (his might include the ris6 of
launching a new product" and the costs in!ol!ed7 the ris6 of an acFuisition" the ris6 of a
competiti!e strategy" the companyEs e'posure in opting for this health plan instead of that
one. (here are ris6s in!ol!ed in other personnel decisions and this area is of tangible
importance) company morale is a 6ey to producti!ity and the resultant profitability. (he
definition of business administration includes whate!er 6nowledge is reFuired to ma6e all of
these components wor6 producti!ely" if not in complete harmony.
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Manae1en( -0. A&1ini0('a(i!n3
#anagement and administration may seem the same" but there are differences
between the two. Administration has to do with the setting up of objecti!es and crucial
policies of e!ery organization. Ahat is understood by management" howe!er" is the act or
function of putting into practice the policies and plans decided upon by the administration.
2H Administration is a determinati!e function" while management is an e'ecuti!e function.
0H It also follows that administration ma6es the important decisions of an enterprise in its
entirety" whereas management ma6es the decisions within the confines of the framewor6"
which is set up by the administration.
9H Administration is the top le!el" whereas management is a middle le!el acti!ity. If one
were to decide the status" or position of administration" one would find that it consists of
owners who in!est the capital" and recei!e profits from an organization. #anagement
consists of a group of managerial persons" who le!erage their specialist s6ills to fulfill the
objecti!es of an organization.
:H Administrators are usually found in go!ernment" military" religious and educational
organizations. #anagement is used by business enterprises. (he decisions of an
administration are shaped by public opinion" go!ernment policies" and social and religious
factors" whereas management decisions are shaped by the !alues" opinions and beliefs of the
mangers.
;H In administration" the planning and organizing of functions are the 6ey factors" whereas"
so far as management is concerned" it in!ol!es moti!ating and controlling functions. Ahen it
comes to the type of abilities reFuired by an administrator" one needs administrati!e
Fualities" rather than technical Fualities. In management" technical abilities and human
relation management abilities are crucial.
>H 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 ma6e them successfully
pursue and achie!e common goals and objecti!es. Administration is perhaps both an art and
a science. (his is because administrators are ultimately judged by their performance.
Administration must incorporate both leadership and !ision.
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@H #anagement 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 e'ecuti!e or strategic
wor6. #anagement deals with the employees. Administration is abo!e management" and
e'ercises control o!er the finance and licensing of an organization.
(herefore" 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.
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2. #anagement is the act or function of putting into practice the policies and plans decided
upon by the administration.
0. Administration is a determinati!e function" while management is an e'ecuti!e function.
9. Administration ma6es the important decisions of an enterprise in its entirety" whereas
management ma6es the decisions within the confines of the framewor6" which is set up by
the administration.
:. Administrators are mainly found in go!ernment" military" religious and educational
organizations. #anagement" on the other hand" is used by business enterprises.
T2pe0 !, =*0ine003
(he following are the types of business"
%. A'i+*l(*'e3
Agriculture is the production of food and goods through farming. Agriculture was the
6ey de!elopment that led to the rise of human ci!ilization7 with the husbandry of
domesticated animals and plants Gi.e. cropsH creating food surpluses that enabled the
de!elopment of more densely populated and stratified societies. (he study of agriculture is
6nown as agricultural science. Agriculture is also obser!ed in certain species of ant and
termite.
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Agriculture encompasses a wide !ariety of specialties and techniFues" including ways
to e'pand the lands suitable for plant raising" by digging water4channels and other forms of
irrigation. Bulti!ation of crops on arable land and the pastoral herding of li!estoc6 on
rangeland remain at the foundation of agriculture. In the past century there has been
increasing concern to identify and Fuantify !arious forms of agriculture. In the de!eloped
world the range usually e'tends between sustainable agriculture Ge.g. perm culture or organic
agricultureH and intensi!e farming Ge.g. industrial agricultureH.
#. Minin3
#ining is the e'traction of !aluable minerals or other geological materials from the
earth" usually from an ore body" !ein or GcoalH seam. #aterials reco!ered by mining include
base metals " iron " uranium " coal" diamonds" limestone=s " oil shale " roc6 salt and potash .
Any material that cannot be grown through agriculture processes" or created in a laboratory
or factory" is usually mined. #ining in a wider sense comprises e'traction of any non
renewable resource Ge.g." petroleum" natural gas" or e!en waterH.#ining of stone and metal
has been done since prospecting for times. #odern mining processes in!ol!e e bodies"
analysis of the Profit potential of a proposed mine" e'traction of the desired materials and
finally reclamation of the land to prepare it for other uses once the mine is closed.
(he nature of mining processes creates a potential negati!e impact on the
en!ironment both during the mining operations and for years after the mine is closed. (his
impact has led to most of the worldEs nations adopting regulations to moderate the negati!e
effects of mining operations. ,afety has long been a concern as well" though modern
practices ha!e impro!ed safety in mines significantly
:. Finan+e3
?inance is the science of funds management. (he general areas of finance are
business finance" personal finance" and public finance. ?inance includes sa!ings money and
often includes lending money. (he field of finance deals with the concepts of time" money"
and ris6 and how they are interrelated. It also deals with how money is spent and
budgeted.<ne aspect of finance is through indi!iduals and business organizations" which
deposit money in a ban6. (he ban6 then lends the money out to other indi!iduals or
corporations for in!estment" and charges interest on the loans.
8oans ha!e become increasingly pac6aged for resale" meaning that in!esters buy the
loan GdebtH from a ban6 or directly from a corporation. Bonds are debt instruments sold to
in!estors for organizations such as companies" go!ernments or charities. (he in!estor can
then hold the debt and collect the interest or sell the debt on a secondary mar6et. Ban6s are
the main facilitators of funding through the pro!ision of credit" although pri!ate eFuity"
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mutual funds" hedge funds" and other organizations ha!e become important as they in!est in
!arious forms of debt. ?inancial assets" 6nown as in!estments" are financially managed with
careful attention to financial ris6 management to control financial ris6.
;. In(elle+(*al p'!pe'(23
In(elle+(*al p'!pe'(2 GIPH is a term referring to a number of distinct types of
creations of the mind for which property rights are recognizedKand the corresponding fields
of law. 3nder intellectual property law" owners are granted certain e'clusi!e property to a
!ariety of intangible assets" such as musical" literary" and artistic wor6s7 disco!eries and
in!entions7 and words" phrases" symbols" and designs. Bommon types of intellectual property
include copyrights" trademar6s" patents" industrial right and trade secrets in some
jurisdictions.
Although many of the legal principles go!erning intellectual property ha!e e!ol!ed
o!er centuries" it was not until the 2Cth century that the term intellectual property began to
be used" and not until the late 01th century that it became commonplace in the 3nited ,tates.
(he British ,tatute tee 2@21 is now seen as the origin of copyright and patent law
respecti!ely.
>. Man*,a+(*'in3
#anufacturing is the use of machines" tools and labor to ma6e things for use or sale.
(he term may refer to a range of human acti!ity" 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. ,uch finished goods may be used for manufacturing other"
more comple' products" such as aircraft" automobiles" or sold to Aholesalers" who in turn
sell them to retailers" who then sell them to end users the consumers. #anufacturing
ta6es turns under all types of economic system. In a free mar6et economy" manufacturing is
usually directed toward the mass production of products for sale to consumer at a profit.
#odern manufacturing includes all intermediate processes reFuired for the
production and integration of a productEs components. ,ome industries" such as
semiconductors and steel manufacturers use the term fabrication instead.
?. Real e0(a(e3
.eal estate is a legal term Gin some jurisdictions" such as the 3nited Iingdom"
Banada" Australia " 3,A and Bahamas H that encompasses land along with impro!ements to
the land" such as buildings" fences" wells and other site impro!ements that are fi'ed in
locationKimmo!able. .eal estate law is the body of regulations and legal codes which
pertain to such matters under a particular jurisdiction and include things such as commercial
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and residential real property transactions. .eal estate is often considered synonymous with
real property Gsometimes called realtyH" in contrast with personal property Gsometimes called
chattel or personality under chattel law or personal property lawH.
5owe!er" in some situations the term Jreal estateJ refers to the land and fi'tures together" as
distinguished from Jreal propertyJ" referring to ownership of land and appurtenances"
including anything of a permanent nature such as structures" trees" minerals" and the interest"
benefits" and inherent rights thereof. .eal property is typically considered to be Immo!able
property. (he terms real estate and real property are used primarily in common law" while
ci!il law jurisdictions refer instead to immo!able property.
@. Re(ailin3
.etailing consists of the sale of goods or merchandise from a fi'ed location" such as a
department stores" boutiFue" or by mail" in small or indi!idual lots for direct consumption by
the purchaser. .etailing may include subordinated ser!ices" such as deli!ery. Purchasers may
be indi!iduals or businesses. In commerce" a JretailerJ buys goods or products in large
Fuantities from manufacturers or Importers" either directly or through a wholesaler" and then
sells smaller Fuantities to the end4user. .etail establishments are often called shops or stores.
.etailers are at the end of the supply chain. #anufacturing mar6eters see the process of
retailing as a necessary part of their o!erall distribution strategy. (he term JretailerJ is also
applied where a ser!ice pro!ider ser!ices the needs of a large number of indi!iduals" such as
a public utility" li6e electric power.
A. T'an0p!'(3
(ransport or transportation is the mo!ement of people and goods from one location to
another. #ode of transportation includes air rail" road" water" cable" pipeline" and space. (he
field can be di!ided into infrastructure" !ehicles" and operations. (ransport infrastructure
consists of the fi'ed installations necessary for transport" and may be roads " railways"
airways" waterways" canals" pipelines and terminals such as airports" rail stations" bus
stations" warehouses" truc6ing terminals" refueling depots Gincluding fueling doc6s and fuel
stationsH" and seaports. (erminals may be used both for interchange of passengers and cargo
and for maintenance. -ehicles tra!eling on these networ6s may include automobiles"
bicycles" buses" trains" truc6s" people" helicopters" and aircrafts. <perations deal with the way
the !ehicles are operated" and the procedures set for this purpose including financing"
legalities and policies. In the transport industry" operations and ownership of infrastructure
can be either public or pri!ate" depending on the country and mode.
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Meanin !, O'ani7a(i!n3
<rganization is the foundation upon which the whole structure of
management is built. <rganization is related with de!eloping a frame wor6 where the total
wor6 is di!ided into manageable components in order to facilitate the achie!ement of
objecti!es or goals. (hus" organization is the structure or mechanism that enables li!ing
things to wor6 together. In a static sense" an organization is a structure or machinery manned
by group of indi!iduals who are wor6ing together towards a common goal. Ali6e
EmanagementE" the term EorganizationE has also been used in a number of ways. broadly
spea6ing"
An !'ani7a(i!n is a social arrangement which pursues collecti!e goals" controls its
own performance" and has a boundary separating it from its en!ironment. (he word itself is
deri!ed from the %ree6 word organon" itself deri!ed from the better46nown word ergon.
In the social sciences" organizations are the object of analysis for a number of disciplines"
such as sociology" economics" political science" psychology" management" and
organizational communication. In more specific conte'ts" particularly for sociologists" the
term JinstitutionJ may be preferred. (he broader analysis of organizations is commonly
referred to as organizational studies" organizational beha!ior or organization analysis. A
number of different theories and perspecti!es e'ist" some of which are compatible"
<rganization process4related) an entity is being Gre4Horganized Gorganization as tas6
or actionH.
<rganization functional) organization as a function of how entities li6e businesses
or state authorities are used Gorganization as a permanent structureH.
<rganization institutional) an entity is an organization Gorganization as an actual
purposeful structure within a social conte'tH
(he EorganizationE is used in four different senses) as a process" as a structure of relationship"
as a group of persons and as a system" as gi!en below)
%9O'ani7a(i!n a0 a P'!+e003 In this first sense" organization is treated as a dynamic process
and a managerial acti!ity which is essential for planning the utilization of companyEs
resources" plant and eFuipment materials" money and people to accomplish the !arious
objecti!es.
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#9 O'ani7a(i!n a0 a F'a1ew!'B !, Rela(i!n0)ip3 In the second sense organization refers
to the structure of relationships and among position jobs which is created to release certain
objecti!es. (he definitions of 5enry" 3rwic6" ?arland" /orthcourt" 8ansburgh and ,priegel
Breach" *a!is" #ooney and .eily etc." come under this group. ?or e'ample) According to
#ooney and .eily" J<rganization is the form of e!ery human association for the attainment
of a common purpose.J
:9 O'ani7a(i!n a0 a G'!*p !, pe'0!n03 In the third sense" organisation is !ery often
!iewed as a group of persons contributing their efforts towards certain goals. <rganization
begins when people combine their efforts for some common purpose. It is a uni!ersal truth
that an indi!idual is unable ability and resources. Barnard has defined E<rganizationE as an
identifiable group of people contributing their efforts towards the attainment of goals.
;9 O'ani7a(i!n a0 a S20(e13 In the fourth sense" the organization is !iewed as system.
,ystem concepts recognize that organizations are made up of components each of which has
uniFue properties" capabilities and mutual relationship. (he constituent elements of a system
are lin6ed together in such comple' ways that actions ta6en by one producer ha!e far
reaching effect on others.
In short" organizing is the determining" grouping and arranging of the !arious
acti!ities deemed necessary for the attainment of the objecti!es" the assigning of people to
those acti!ities" the pro!iding of suitable physical factors of en!ironment and the indicating
of the relati!e authority delegated to each indi!idual charged with the e'ecution of each
respecti!e acti!ity.
De,ini(i!n0 !, O'ani7a(i!n3
*ifferent authors ha!e defined organization in different ways. (he main definitions
of organization are as follows)
According to 6eith *a!is" J<rganization may be defined as a group of indi!iduals"
large of small" that is cooperating under the direction of e'ecuti!e leadership in
accomplishment of certain common object.J
According to Bhester I. Barnard" J<rganization is a system of co4operati!e acti!ities
of two or more persons.J
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According to 8ouis A. Allen" J<rganization is the process of identifying and
grouping the wor6 to be performed" defining and delegating responsibility and
authority" and establishing relationship for the purpose of enabling people to wor6
most effecti!ely together in accomplishing objecti!es.J
According to #ooney and .ailey" J<rganization is the form of e!ery human
association for the attainment of a common purpose.J
,ocial unit of people systematically arranged and managed to meet a need or to
pursue collecti!e goals on a continuing basis. All organizations ha!e a management structure
that determines relationships between functions and positions" and subdi!ides and delegates
roles" responsibilities" and authority to carry out defined tas6s. <rganizations are open
systems in that they affect and are affected by the en!ironment beyond their boundaries
C)a'a+(e'i0(i+0 !, O'ani7a(i!n3
2H O*(linin ()e O=.e+(i-e03 Born with the enterprise are its long4life objecti!es of
profitable manufacturing and selling its products. <ther objecti!es must be
established by the administration from time to time to aid and support this main
objecti!e.
0H I&en(i,2in an& En*1e'a(in ()e A+(i-i(ie03 After the objecti!e is selected" the
management has to identify total tas6 in!ol!ed and its brea64up closely related
component acti!ities that are to be performed by and indi!idual or di!ision or a
department.
9H A00inin ()e D*(ie03 Ahen acti!ities ha!e been grouped according to similarities
and common purposes" they should be organized by a particular department. Aithin
the department" the functional duties should be allotted to particular indi!iduals.
:H De,inin an& G'an(in ()e A*()!'i(23 (he authority and responsibility should be
well defined and should correspond to each other. A close relationship between
authority and responsibility should be established.
;H C'ea(in A*()!'i(2 Rela(i!n0)ip3 After assigning the duties and delegations of
authority" the establishment of relationship is done. It in!ol!es deciding who will act
under whom" who will be his subordinates" what will be his span of control and what
will be his status in the organization. Besides these formal relationships" some
informal organizations should also be de!eloped.
Sini,i+an+e !, O'ani7a(i!n3
%9 I( Fa+ili(a(e& A&1ini0('a(i!n an& 1anae1en(3 <rganization is an important and the
only tool to achie!e enterprise goals set b administration and e'plained by management.
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,ound organization increases efficiency" a!oids delay and duplication of wor6" increases
managerial efficiency" increases promptness" and moti!ates employees to perform their
responsibility.
#9 I( 6elp in ()e G'!w() !, En(e'p'i0e3 %ood organization is helpful to the growth"
e'pansion and di!ersifications of the enterprise.
:9 I( En0*'e0 Op(i1*1 U0e !, 6*1an Re0!*'+e03 %ood organization establishes persons
with different interests" s6ills" 6nowledge and !iewpoints.
;9 I( S(i1*la(e0 C'ea(i-i(23 A sound and well4concei!ed organization structure is the source
of creati!e thin6ing and initiation of new ideas.
>9 A T!!l !, A+)ie-in O=.e+(i-e03 <rganization is a !ital tool in the hands of the
management for achie!ing set objecti!es of the business enterprise.
?9 P'e-en(0 C!''*p(i!n3 3sually corruption e'ists in those enterprises which lac6 sound
organization. ,ound organization pre!ents corruption by raising the morale of employees.
(hey are moti!ated to wor6 with greater efficiency" honesty and de!otion.
@9 C!C!'&ina(i!n in ()e En(e'p'i0e03 *ifferent jobs and positions are welded together by
structural relationship of the organization. (he organizational process e'erts its due and
balanced emphasis on the co4ordination of !arious acti!ities.
A9 Eli1ina(e0 O-e'lappin an& D*pli+a(i!n !' w!'B3 <!er lapping and duplication of
wor6 e'ists when the wor6 distribution is not clearly identified and the wor6 is performed in
a haphazard and disorganized way. ,ince a good organization demands that the duties be
clearly assigned amongst wor6ers" such o!erlapping and duplication is totally eliminated.
Sini,i+an+e !, S!*n& "G!!& O'ani7a(i!n3
<rganization is not an end it itself but a means to achie!e an end. Ahether an
organization is good or bad depends on the fact as to how much efficiently and promptly it is
in a position to achie!e the objecti!es. (hus" a sound or good or ideal and result4oriented
organization must possess the following characteristics.
2H Reali7a(i!n !, O=.e+(i-e03 <rganization is tool of achie!ing objecti!es of an
enterprise. ?or this purpose" the organization should be di!ided in se!eral department"
sub4departments" branches and units etc.
0H 6a'1!ni!*0 G'!*pin !, F*n+(i!n0 e(+3 ?or achie!ing the organization objecti!es
there must be harmonious grouping of functions" jobs and sub4jobs in such a way so
that there is action" consultation and co4ordination without any delay and difficulty.
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9H Rea0!na=le Span !, C!n('!l3 Another characteristic of organization is that it should
ha!e reasonable span of control. <rdinarily" a person GpersonnelH cannot control more
than fi!e or si' subordinates.
:H Clea'C+*( all!+a(i!n !, D*(ie0 an& Re0p!n0i=ili(ie03 (here must be clear4cut
allocation of duties and responsibilities in any scheme of sound organization. &!ery
e'ecuti!e must 6now his scope of acti!ities" the ideal number is three.
;H P'!1!(i!n !, Sa(i0,a+(i!n3 (he most important element of any human organization
is the promotion of satisfaction of wor6ers. #an wor6s in a group 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 pro!ide satisfaction to indi!iduals or
group wor6ing under him.
>H F*lle0( U(ili7a(i!n !, Manp!we'3 Another important characteristic of an ideal
organization is as to how far it is successful in ma6ing fullest and economical
utilization of the a!ailable manpower.
@H P'!-i0i!n an& De-el!p1en( an& E/pan0i!n3 Another important of an ideal
organization is that there e'ists the necessary pro!ision for de!elopment and
e'pansion so that it is possible to e'pand and de!elop any organisation according to
needs and reFuirements and necessary changes an alternati!es may be made.
DH C!!'&ina(i!n an& +!!pe'a(i!n3 In order to achie!e the objecti!es of the enterprise"
there must be close coordination and cooperation in the acti!ities of e!erybody
wor6ing in the organization. ?urther" there should also be acti!e coordination and
cooperation amongst the !arious departments an sub4departments. It will also assist
in elimination the e!il of red tapism.
CH Uni(2 !, C!11an&3 (here must be unity of command. /o one in any organization
should report to more than one line super!isor" and e!erybody must 6now to whom
he reports and who reports to him. /o subordinate should get orders from more than
one super!isor7 otherwise it will lead to confusion" chaos and conflict.
21H E,,e+(i-e S20(e1 !, C!11*ni+a(i!n3 An ideal organization must possess effecti!e
system of communication. (he inter4communication system should be clear and
easier and there should be no ambiguity at and le!el.
22H 6i) M!'ale3 An ideal organization is that in which the wor6ers possess high
morale. (hey wor6 with full capacity" energy" enthusiasm" de!otion and sincerity.
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20H Fle/i=ili(23 (he last but not the least important characteristic of an ideal organization
is that it should be fle'ible so that necessary changes an modifications in the the size
of the organization as well as technology could be easily and con!eniently effected.
S(ep0 in ()e P'!+e00 !, O'ani7a(i!n3
<rganization means identifying" arranging and integrating different elements of
organization into efficient wor6ing order. It reFuires the management to follow the following
process of organization.
Di-i0i!n !, w!'B
(he main function is di!ided into sub4functions and entrusted to the different
departmental heads. (he result is the establishment of departments li6e Purchase" ,ales"
Production" Accounts" Publicity and Public relations. (he departments can be further
classified just as production department into G2H Planning G0H *esigning" G9H <perations" G:H
Production Bontrol and G;H .epairs and #aintenance. (he di!ision of the wor6 is based upon
the fact that specialization is 6eynote of efficient organization.
G'!*pin !, D!= an& Depa'(1en(a(i!n
(he second step is to group similar or related jobs into larger units" called departments"
di!isions or sections. %rouping process is called departmentation. (he department may be
based upon functions such as manufacturing" mar6eting and financing etc. *epartment may
also be based on products" such as te'tiles" cosmetic" stationery etc. (hese departments may
ha!e different sections as per reFuirement. %rouping jobs or *epartmentation aims at
achie!ing coordination and facilitates unity of efforts. (he departments are lin6ed together
on the basis of interdependence. (he di!ided tas6 is assigned to specific indi!idual or group
of indi!iduals who are supposed to be the most Fualified and specialized persons for the tas6.
A00inin &*(ie0
(he wor6 to be performed by e!ery indi!idual is clearly defined and made 6nown to him.
&!eryone must 6now what he is reFuired to do in order to a!oid any misunderstanding"
duplication or o!erlapping in the wor6.
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G'an(in a*()!'i(ie0 an& ,i/in 'e0p!n0i=ili(ie0
Assigning of duties to indi!iduals must coincide with the appropriate and rele!ant
authorities. &!ery employee must 6now" what the authorities granted to him and for what and
to whom he will be responsible" liable and accountable.
Delea(i!n !, a*()!'i(2
(hose who are made responsible for specific tas6s are gi!en due authority. Both
responsibility and authority go hand in hand together. .easonable powers are delegated to
heads and super!isory staff to enable them to do their wor6 with ease and efficiency.
E,,e+(i-e +!11*ni+a(i!n
&ffecti!e communication is the 6eynote of efficient organization. (here should be proper
arrangement of communication messages from e'ecuti!es to subordinates and !ice4!ersa.
Proper communication system establishes harmonious relationship between employees and
enables e'ecution of wor6 in the right manner at the appropriate time and in an atmosphere
of perfect mutual adjustment.
C!C!'&ina(i!n !, a+(i-i(ie0 ,!' +!11!n !=.e+(i-e0
Business acti!ity is a team wor6 or the group acti!ity" so the efforts of e!ery employee
must be co4ordinate effecti!ely to achie!e the common objecti!es of the enterprise.
T2pe0 !, !'ani7a(i!n3
%9 S(a(i+ O'ani7a(i!n03
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,tatic <rganizations ha!e fi'ed practices" fi'ed size. 8i6e static eFuations" these
organizations ha!e no !ariables. (ime doesnEt change them significantly. (hey persist until
some new organization occupies their niche.
#9 D2na1i+ O'ani7a(i!n03
*ynamic <rganizations ha!e ?i'ed practices" !ariable size. 8i6e dynamic eFuations"
these organizations !ary in size o!er time" e!en though their underlying practices donEt
change much. (hey go through a single life cycle" each growing rapidly as it occupies its
niche" and then declining as its competitors implement better practices that steal away its
clients.
:9 A&ap(i-e O'ani7a(i!n03
-ariable practices" !ariable size. 8i6e comple' adapti!e systems" these organizations
!ary their practices" see6ing the constant impro!ement that launches life cycle after life
cycle" creating new products" ser!ices" and processes that hold on to clients generation after
generation.
(hey will soon moti!ate employees to climb adaptation cur!es by using I,<Ps to
fairly share the wealth that each inno!ation creates. I,<Ps ensure that the inno!ator" the
predecessors" and each shareholder in the corporation benefits.
(hey will displace dynamic and static organizations in economic competition" so that
within a generation" most people will ha!e learned to e'pect continual impro!ement in their
life e'perience. (he fact that their ancestors once wor6ed 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 didnEt thoroughly enjoy.
A B*0ine00 Owne'0)ip3
A B*0ine00 !wne'0)ip should be structured according to the needs of the owners and
potentially liability that the business could incur. (he different types of business ownership
are)
2H 8imited Partnerships
0H A Borporation
9H 8imited 8iability Borporations
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:H ,ole Proprietorship and Partnership
;H /onprofit Borporations
>H Booperati!es
@H Pri!ate Borporation)
%9 Li1i(e& Pa'(ne'0)ip03
(his type of business organization is costly and complicated to prepare. It is not
recommended for the a!erage small business owner. 8imited partnerships are usually created
by one person or company who solicits in!estments from others. (he people who in!est are
considered the limited partners. (he general partner is in charge of the businessEs e!eryday
operations. (hey are personally liable for business dents. 8imited partners ha!e little control
o!er daily business decisions or operations. Because of this they are not personally liable for
business debts or claims.
8imited partnerships are costly and complicated to set up and run" and are not
recommended for the a!erage small business owner. 8imited partnerships are usually created
by one person or company" the Jgeneral partner"J who will solicit in!estments from others 44
who will be the limited partners.
(he general partner controls the limited partnershipEs day4to4day operations and is
personally liable for business debts Gunless the general partner is a corporation or an 88BH.
8imited partners ha!e minimal control o!er daily business decisions or operations and" in
return" they are not personally liable for business debts or claims. Bonsult a limited
partnership e'pert if youEre interested in creating this type of business
#9 A C!'p!'a(i!n
(he most significant benefit to forming a corporation is that it limits the ownersE
personal liability for business dents and any court judgments against the business. A
corporation is an independent legal and ta' entity. (his sets it apart from other types of
businesses. (he owners do not use their personal ta' returns to pay ta' on corporate profits
because the corporation itself pays these ta'es. Any money drawn from the corporation in the
form of salaries" bonuses" etc is paid by the owners in their personal income ta' returns.
:9 Li1i(e& Lia=ili(2 C!'p!'a(i!n0
8imited 8iability Borporations pro!ide their owners just that" limited personal
liability for business debts and claims. 5owe!er" 88Bs resemble partnerships when it comes
to ta'es. (he owners of an 88B pay ta'es on their shares of the business income on their
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personal ta' returns. (his type of organization is good for business owners who either Bould
be sued by customers run the ris6 of piling up a lot of debt ha!e substantial personal assets
they want to protect.
;9 S!le P'!p'ie(!'0)ip an& Pa'(ne'0)ip
A sole proprietorship" or partnership" is the ideal ownership structure for an up and
coming business or the a!erage small business. (hey do not ha!e to be registered with the
state and go into effect as soon as one person goes into business with themsel!es or two or
more people go into business together. Any business income is reported on the ownerEs
personal income ta'es. (hey 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 wor6s. 5ereEs a brief rundown of the most common
forms of doing business) ?or many new businesses" the best initial ownership structure is
either a sole proprietorship or 44 if more than one owner is in!ol!ed 44 a partnership.
A sole proprietorship is a one4person business that is not registered with the state as a
limited liability company G88BH or corporation. ou donEt ha!e to do anything special or file
any papers to set up a sole proprietorship. ou create one just by going into business for
yourself. 8egally" a sole proprietorship is inseparable from its owner. (he business and the
owner are one and the same. (his means the owner of the business reports business income
and losses on her personal ta' return and is personally liable for any business4related
obligations" such as debts or court judgments.
,imilarly" a partnership is simply a business owned by two or more people that hasnEt
filed papers to become a corporation or a limited liability company G88BH. /o paperwor6
needs to be filed to form a partnership. (he arrangement begins as soon as you start a
business with another person. As in a sole proprietorship" the partnershipEs owners pay ta'es
on their shares of the business income on their personal ta' returns and they are each
personally liable for the entire amount of any business debts and claims.
,ole proprietorships and partnerships ma6e sense in a business where personal
liability isnEt a big worry. ?or e'ample" A small ser!ice business in which you are unli6ely to
be sued and for which you wonEt be borrowing much money for in!entory or other costs.
>9 N!np'!,i( C!'p!'a(i!n0
A nonprofit corporation is a corporation formed to carry out a charitable" educational"
religious" literary or scientific purpose. A nonprofit can raise much4needed funds by
recei!ing public and pri!ate grant money and donations from indi!iduals and companies.
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(he federal and state go!ernments do not generally ta' nonprofit corporations on money they
ma6e that is related to their nonprofit purpose" because of the benefits they contribute to
society.
?9 C!!pe'a(i-e0
,ome people dream of forming a business of true eFuals. an organization owned and
operated democratically by its members. (hese grassroots business organizers often refer to
their businesses as a Jgroup"J Jcollecti!eJ or Jco4opJ but these are usually informal rather
than legal labels. ?or e'ample" a consumer co4op could be formed to run a food store" a
boo6store or any other retail business. <r a wor6ersE co4op could be created to manufacture
and sell arts and crafts.
@9 P'i-a(e C!'p!'a(i!n3
A business that is a legal entity created by the state whose assets and liabilities are
separate from its owners. Ahile there are also public corporations. Aho stoc6 Gand
ownershipH is traded on a public stoc6 e'change. #ost small businesses are Gor at least start
asH pri!ate corporations. A pri!ate corporation is owned by a small group of people who are
typically in!ol!ed in managing the business. ?orming a corporation reFuires de!eloping a
legal document called the JArticles of IncorporationJ and submitting them to the state in
which the corporation wishes to reside. Ad!antages of a corporation include limited liability.
An owner Gstoc6holderH can only lose up to the amount s+he in!ested7 unlimited lifespan. a
corporation is charted to last fore!er unless its articles of incorporation state otherwise7 great
sources of funding7 and ease of transfer of ownership. *isad!antages include double
ta'ation. (he corporation" as a legal entity" must pay ta'es" and then shareholders also pay
ta'es on any di!idends recei!ed.
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C!1pan2 Vi0i!n3
Borporate !ision is a short" succinct" and in0pi'in statement of what the
organization intends to become and to achie!e at some point in the future" often stated in
competiti!e terms. -ision refers to the category of intentions that are broad" all4inclusi!e and
forward4thin6ing. It is the image that a business must ha!e 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 achie!e those desired ends.
Aarren Bennis" a noted writer on lea&e'0)ip" says) J(o choose a direction" an
e'ecuti!e must ha!e de!eloped a mental image of the possible and desirable future state of
the organization. (his image" which we call a !ision" may be as !ague as a dream or as
precise as a goal or a mission statement.J
C!'e -al*e0 in+l*&e3
Sa,e(2 ,afety ser!es as a barometer of our company=s o!erall success and is a specific
measure of our operating e'cellence.
T'*0( (rust is the mutual respect for and confidence in people. (rust recognizes the
importance of indi!iduals and appreciates their di!erse opinions. (rust compels us to share
information and encourage new ideas. It reFuires an open" honest" forthright manner.
C!n,i&en+e ,elf4confident people ta6e initiati!e" handle the une'pected" stand behind
their con!ictions and support the efforts of others. (hey ta6e bold" inno!ati!e" creati!e
actions" capitalize on opportunities" ma6e sound decisions Fuic6ly" and mobilize the best
resources for rapid action.
Tea1w!'B (eamwor6 is personal in!ol!ement and collaboration in a team en!ironment.
It includes setting a common goal in support of business objecti!es" ma6ing an indi!idual
commitment to the team=s success and recognizing the success of the team.
A++!*n(a=ili(2 Being accountable means e!ery employee assumes ownership and
responsibility for his or her own wor6" regardless of the job they perform. Being
accountable means ma6ing decisions and holding oneself responsible for the conseFuences
of those choices.
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D!in 5)a(E0 Ri)( *oing what=s right is being honest" ethical" and ha!ing personal and
professional integrity. It means consistently treating all people fairly" deli!ering on promises"
and ta6ing personal responsibility for your actions.
F*ali(2 Muality is the primary determinant of customer satisfaction and loyalty" and it
reFuires employees to continuously pro!ide internal and e'ternal customers with the right
product or ser!ice...done right...the first time. In today=s increasingly competiti!e business
en!ironment" better Fuality translates into better !alue for our customers and" subseFuently"
better !alue for their customers4and this is the !ery essence of competiti!e differentiation.
Mi00i!n3
#ost businesses ha!e some form of mission statement "whether they 6now it or not.
?or e'ample" other names for a mission include) founderEs philosophy" statement of purpose"
business philosophy. An organizationEs mission describes its fundemental purpose and
o!erall philosophy. A mission statement Gwhat we areH is different than a !ision statement
Gwhat we want to becomeH.
#ission statement)
Pro!ides thrust and direction to the organization.
Bornerstone of all strategic planning.
A mission statement is an organizationEs !ision translated into written form. It
ma6es concrete the leaderEs !iew of the direction and purpose of the organization. ?or many
corporate leaders it is a !ital element in any attempt to moti!ate employees and to gi!e
them a sense of priorities.
A mission statement should be a short and concise statement of goals and priorities.
In turn" goals are specific objecti!es that relate to specific time periods and are stated in
terms of facts. (he primary goal of any business is to increase sta6eholder !alue. (he most
important sta6eholders are shareholders who own the business" employees who wor6 for
the business and clients or customers who purchase products and+or ser!ices from the
business.
(he mission statement should be a clear and succinct representation of the
enterprise=s purpose for e'istence. It should incorporate socially meaningful and measurable
criteria addressing concepts such as the moral+ethical position of the enterprise" public
image" the target mar6et" products+ser!ices" the geographic domain and e'pectations of
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growth and profitability.
(he intent of the #ission ,tatement should be the first consideration for any
employee who is e!aluating a strategic decision. (he statement can range from a !ery simple
to a !ery comple' set of ideas.
Spe+i,i+3
(he #ission ,tatement should represent the broadest perspecti!e of the enterpriseEs
mission. ou may want to ta6e the approach of being !ery specific. ?or instance" a #ission
,tatement for a fictitious airline could be worded as follows) our mission statement is an
opportunity to define your business at the most basic le!el. It should tell your company story
and ideals in less than 91 seconds) who your company is" what you do" what you stand for"
and why you do it. *o you want to ma6e a profit" or is it enough to just ma6e a li!ingN Ahat
mar6ets are you ser!ing" and what benefits do you offer themN *o you sol!e a problem for
your customersN Ahat 6ind of internal wor6 en!ironment do you want for your employeesN
All of these issues may be addressed in a mission statement.
<ther ways to thin6 about a mission statement as you begin to write one include)
Answers the Fuestion" Ahat business are we inN
Pro!ides thrust and direction to the organization.
#ust be mar6et4oriented Gfocusing on the problem the business is sol!ingH"
not product4oriented.
Ba0i+ *i&eline0 in 1i00i!n3
our mission statement is about you" your company" and your ideals.
*on=t bo' yourself in.
Ieep it short.
As6 for input.
G!al03
(he major outcome of strategic road4mapping and strategic planning" after gathering
all necessary information" is the setting of goals for the organization based on its !ision and
mission statement. A goal is a long4range aim for a specific period. It must be specific and
realistic. 8ong4range goals set through strategic planning are translated into acti!ities that
will ensure reaching the goal through operational planning.
,ome company G!al0 may be as follows)
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(o promote a profitable and sustainable business acti!ity that meets the customers=
needs.
(o increase the companyEs mar6et share.
(o gain the competiti!e edge.
(o increase the companyEs role in relations to social responsibility.
(o pro!ide e'cellent customer ser!ice.
S('*+(*'e !, O'ani7a(i!n3
MANAGING DIRECTOR
MARE4TING MANAGER
OPERATION MGR
FINANCE MANAGER
FUALITY MANAGER
OFFICE ADIMINSTRTOR
PRODECT MANAGER ESTIMATOR
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An !'ani7a(i!nal 0('*+(*'e is a mainly hierarchical concept of subordination of
entities that collaborate and contribute to ser!e one common aim. <rganizations are a !ariant
of clustered entities. An organization can be structured in many different ways and styles"
depending on their objecti!es and ambience. (he structure of an organization will determine
the modes in which it operates and performs. <rganizational structure allows the e'pressed
allocation of responsibilities for different functions and processes to different entities such as
the branch" department" wor6group and indi!idual. Indi!iduals in an organizational structure
are normally hired under time4limited wor6 contracts or wor6 orders" or under permanent
employment contracts or program orders.
In order to achie!e the desired goals" sound and effecti!e organizational structure is
necessary. <rganizational structure" as we 6now is the system of job positions" roles assigned
to these positions and specifying authority" responsibility and tas6 of e!ery positions. (he
structure undoubtedly pro!ides basic framewor6 for e'ecuti!e and employees to perform
their tas6 smoothly.
T)e ,!ll!win p!in(0 1*0( =e (aBen in(! +!n0i&e'a(i!n w)ile =*il&in !'ani7a(i!nal
0('*+(*'e3
D!= &e0in
Lobs should be designed in such a way" that job should ha!e specified and defined tas6 to
be performed. Lobs should be designed in such fashion that e!ery indi!idual could contribute
his ma'imum worth to the enterprise. (he major and related acti!ities of the jobs should also
be specified.
Depa'(1en(a(i!n !' G'!*pin !, I&en(i+al D!=0
Identical and similar jobs should be grouped together in a department and placed under a
departmental head. ,uch departmentation will help in building coordination between
different jobs and managers. *epartments can be established on different basis. It may ha!e
production" mar6eting and finance departments" if it is based upon functions.
Span !, C!n('!l
3nder span of control" the number of employees and jobs managed by each manager is
specified. (he chain of command is also clearly stated. It is specified that who will report
BULDING CADETS SITE FOREMEN
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who is the smooth performance of his duties. &ffecti!e span of control a!oids o!erlapping"
duplication and confusion in the wor6.
Delea(i!n !, A*()!'i(2
In order to get the job done properly and smoothly" reFuisite authorities are granted to the
managers. Authority is the power to command employees and instruct them to do a piece of
wor6. (he authority empowers to 6now certain facts" to enjoy pri!ileged position and
command respect and obedience from employees. *elegation is no doubt" sharing tas6 with
reFuisite authority with subordinates. As such the manger multiplies himself through
delegation.
O'ani7a(i!nal 0('*+(*'e0 (2pe03
P'eC=*'ea*+'a(i+ 0('*+(*'e0
Pre4bureaucratic GentrepreneurialH structures lac6 standardization of tas6s. (his structure
is most common in smaller organizations and is best used to sol!e simple tas6s. (he structure
is totally centralized. (he strategic leader ma6es all 6ey decisions and most communication
is done by one on one con!ersations. It is particularly useful for new GentrepreneurialH
business as it enables the founder to control growth and de!elopment.
(hey are usually based on traditional domination or charismatic domination in the sense
of #a' AeberEs tripartite classification of authority.
B*'ea*+'a(i+ 0('*+(*'e0
Bureaucratic structures ha!e a certain degree of standardization. (hey are better suited
for more comple' or larger scale organizations. (hey usually adopt a tall structure. (hen
tension between bureaucratic structures and non4bureaucratic is echoed in Burns and ,tal6er
distinction between mechanistic and organic structures. It is not the entire thing about
bureaucratic structure. It is !ery much comple' and useful for hierarchical structures
organization" mostly in tall organizations.
P!0(C=*'ea*+'a(i+
(he term of post bureaucratic is used in two senses in the organizational literature. <ne
generic and one much more specific. In the generic sense the term post bureaucratic is often
used to describe a range of ideas de!eloped since the 2CD1s that specifically contrast
themsel!es with AeberEs ideal type bureaucracy. (his may include total Fuality management"
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culture management and matri' management" amongst others. /one of these howe!er has
left behind the core tenets of Bureaucracy. 5ierarchies still e'ist" authority is still AeberEs
rational" legal type" and the organization is still rule bound. 5ec6scher" arguing along these
lines" describes them as cleaned up bureaucracies" rather than a fundamental shift away from
bureaucracy.
%ideon Iunda" in his classic study of culture management at E(echE argued that the
essence of bureaucratic control 4 the formalization" codification and enforcement of rules and
regulations 4 does not change in principle.....it shifts focus from organizational structure to
the organizationEs culture.
Another smaller group of theorists ha!e de!eloped the theory of the Post4Bureaucratic
<rganization7 pro!ide a detailed discussion which attempts to describe an organization that is
fundamentally not bureaucratic. Bharles 5ec6scher has de!eloped an ideal type" the post4
bureaucratic organization" in which decisions are based on dialogue and consensus rather
than authority and command" the organization is a networ6 rather than a hierarchy" open at
the boundaries Gin direct contrast to culture managementH7 there is an emphasis on meta4
decision ma6ing rules rather than decision ma6ing rules. (his sort of horizontal decision
ma6ing by consensus model is often used in housing cooperati!es" other cooperati!es and
when running a non4profit or community organization. It is used in order to encourage
participation and help to empower people who normally e'perience oppression in groups.
&mployees within the functional di!isions of an organization tend to perform a
specialized set of tas6s" for instance the engineering department would be staffed only with
software engineers. (his leads to operational efficiencies within that group. 5owe!er it could
also lead to a lac6 of communication between the functional groups within an organization"
ma6ing the organization slow and infle'ible.
As a whole" a functional organization is best suited as a producer of standardized goods
and ser!ices at large !olume and low cost. Boordination and specialization of tas6s are
centralized in a functional structure" which ma6es producing a limited amount of products or
ser!ices efficient and predictable. #oreo!er" efficiencies can further be realized as functional
organizations integrate their acti!ities !ertically so that products are sold and distributed
Fuic6ly and at low cost. ?or instance" a small business could start ma6ing the components it
reFuires for production of its products instead of procuring it from an e'ternal organization.
But not only beneficial for organization but also for employees faiths.
Di-i0i!nal 0('*+(*'e
Also called a Jproduct structureJ" the di!isional structure groups each organizational
function into a di!ision. &ach di!ision within a di!isional structure contains all the necessary
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resources and functions within it. *i!isions can be categorized from different points of !iew.
(here can be made a distinction on geographical basis Ga 3, di!ision and an &3 di!isionH or
on product+ser!ice basis Gdifferent products for different customers) households or
companiesH. Another e'ample" an automobile company with a di!isional structure might
ha!e one di!ision for ,3-s" another di!ision for subcompact cars" and another di!ision for
sedans. &ach di!ision would ha!e its own sales" engineering and mar6eting departments.
Ma('i/ 0('*+(*'e
(he matri' structure groups employees by both function and product. (his structure can
combine the best of both separate structures. A matri' organization freFuently uses teams of
employees to accomplish wor6" in order to ta6e ad!antage of the strengths" as well as ma6e
up for the wea6nesses" of functional and decentralized forms. An e'ample would be a
company that produces two products" Jproduct aJ and Jproduct bJ. 3sing the matri'
structure" this company would organize functions within the company as follows) Jproduct aJ
sales department" Jproduct aJ customer ser!ice department" Jproduct aJ accounting" Jproduct
bJ sales department" Jproduct bJ customer ser!ice department" Jproduct bJ accounting
department.
#atri' structure is amongst the purest of organizational structures" a simple lattice
emulating order and regularity demonstrated in nature.
5eaB"F*n+(i!nal Ma('i/3 A project manager with only limited authority is assigned
to o!ersee the cross4 functional aspects of the project. (he functional managers
maintain control o!er their resources and project areas.
Balan+e&"F*n+(i!nal Ma('i/3 A project manager is assigned to o!ersee the project.
Power is shared eFually between the project manager and the functional managers. It
brings the best aspects of functional and projectized organizations. 5owe!er" this is
the most difficult system to maintain as the sharing power is delicate proposition.
S('!n"P'!.e+( Ma('i/3 A project manager is primarily responsible for the project.
?unctional managers pro!ide technical e'pertise and assign resources as needed.
Among these matri'es" there is no best format7 implementation success always depends on
organizationEs purpose and function.
C!11!n 0*++e00 +'i(e'ia ,!' !'ani7a(i!nal 0('*+(*'e0 a'e3
*ecentralized reporting
?lat hierarchy
5igh transient speed
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5igh transparency
8ow residual mass
Permanent monitoring
.apid response
,hared reliability
#atri' hierarchy
F*n+(i!nal Pa((e'n3
?ollowing are the main departments in any organization)
2. ?inance and accounts
0. #ar6eting and ,ales
9. 5uman resource and administration
:. (echnical + <perations
<ther departments depend on the size of the organization" li6e
2. 8ogistics
0. Procurement
9. (reasury department4 sub dept of finance and accounts
%. Finan+e
(he definition of finance is the pro!ision of funds or loan supplied to an indi!idual or
company. <ften 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 reFuired by a business and
pri!ate acti!ities. #anagement of finance has also de!eloped into a specialized branch within
the financial sector and is carried out by finance managers.
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#anaging this in!ol!es dealing with the optimization and allocation of funds to
!arious areas either by borrowing or by using those a!ailable from internal resources. (he
word <ptimizing may sound strange but it refers to ta6ing measures that minimize the cost of
financing while simultaneously attempting to ma'imize the profits out of the employed
finance. Bad debts are poor finance management where rules ha!e not been followed7 the
result of this is depressed mar6ets" low production and a cash crisis. It is for this !ery reason
that finance managers are !ery careful with finance they agree too and where it is funded
from.

It is not uncommon to hear finance managers referred to as bean counters as they are
loo6ing at immediate returns and initial costs against the potential at a later stage. ?inance
managers are the pessimists whereas sales managers are the optimists who loo6 to the future
and not to the pastO <ften though" problems occur with small businesses who fail to see the
distinction between a business loan and a personal one.
Finan+e &epa'(1en( !al an& 0e'-i+e03
(he main goal of (he *epartment is to pro!ide the internal and e'ternal users of financial
statements with rele!ant" accurate and timely information and to guarantee that the reFuired
financial re!ision is closely adhered to in order to protect the assets of the company. (he
*epartment ta6es care of finance flow to ensure that the company operates within its
financial regulations and satisfies !arious e'ternal financial reFuirements. It also ensures that
the corporate" financial records comply with internal and e'ternal audit. If to loo6 through
the acti!ity of (he *epartment" there can be pic6ed out the following main ser!ices it
renders)
Payment of in!oices and e'penses
Income collection and salary management
Production and assignment of budgets" capital plans" and cash flow forecasts
#onitoring and managing financial plans
Auditing and reporting financial condition
#. Ma'Be(in3
#ar6eting means informing your potential clients about your products or ser!ice" and
finding ways to establish and 6eep a customer base. our target mar6et is the specific group
of people that consume your product or utilize your ser!ice. Ad!ertising refers to the !arious
media used to con!ey your message. Printed ad!ertisement" radio air time" tele!ision
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commercials and the Internet are all part of ad!ertising that con!eys your business message
to the public. Promotion refers to the !arious methods by which you con!ey your message to
customers. Ahen you communicate with the public" youEre promoting your business. #any
people will join business associations" or set up displays in malls and craft shows for
promotional purposes.
Ma'Be(in &epa'(1en( (a0B03
(he #ar6eting office wor6s to raise the awareness of the company and its prominence in
the industry and mar6et. (he global aim of the department is promoting the product+ser!ice
and increasing recognition of the company through researches and branding efforts. (he
departmentEs strengths should all be in proper understanding of consumer beha!ior and
efficient decision4ma6ing process. (ypically" the major tas6s of the mar6eting department
are as follows)
2. P Ad!ertising $ Bommunication
0. P *irect mar6eting
9. P Bonducting researches and mar6et management
:. P ,er!ice #ar6eting
;. P #aintaining image and brand management
>. P *e!eloping new product
@. P Promoting and professional sales
8. P .etail management $ technology.
:. 6*1an 'e0!*'+e3
5uman resources is a term used to describe the indi!iduals who comprise the
wor6force of an organization" although it is also applied in labor economics to" for e'ample"
business sectors or e!en whole nations. 5uman resources is also the name of the function
within an organization charged with the o!erall responsibility for implementing strategies
and policies relating to the management of indi!iduals Gi.e. the human resourcesH.
(his function title is often abbre!iated to the initials E5.E. (he origins of the function arose
in organizations that introduced Ewelfare managementE practices and also in those that
adopted the principles of Escientific managementE. ?rom these terms emerged a largely
administrati!e management acti!ity" co4coordinating a range of wor6er related processes
and becoming 6nown" in time as the Epersonnel functionE. 5uman resources progressi!ely
became the more usual name for this function" in the first instance in the 3nited ,tates as
well as multinational corporations" reflecting the adoption of a more Fuantitati!e as well as
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strategic approach to wor6force management" demanded by corporate management and the
greater competiti!eness for limited and highly s6illed wor6ers. (he general purpose of
5uman .esource department is to establish proper staffing policy and implement it on
practice.
(he main goals and tas6s of 5. department are)
P organize appropriate system of staff selection and recruitment
P organize system of effecti!e staff training and de!elopment
P ensure the competiti!eness of the company within labor mar6et
P establish transparent system of staff assessment and promotion
;. En('ep'ene*'0)ip3
&ntrepreneurship is the act of being an entrepreneur" which is a ?rench word meaning Jone
who underta6es an endea!orJ. &ntrepreneurs assemble resources including inno!ations"
finance and business acumen in an effort to transform inno!ations into economic goods.As
an e'perienced entrepreneur" you are most li6ely aware that there are daily duties in!ol!ed
with ensuring your business is successful. Accounting) Includes budgets" payroll" financial
planning" bill payments" and credit management.
Administration) Includes sorting and+or reading mail and email" filing" answering
inFuiries" in!oicing" boo66eeping" and purchasing.
Bomputer) Includes such things as 6eeping your website up to date" !irus scanning"
contact management" data entry" upgrading software and learning new software.
Borrespondence) Includes writing ad!ertisements" letters" press releases and articles.
5uman .esources) Including inter!iewing" hiring" firing" training" moti!ating and
conflict4resolution.
,ales) Includes mar6eting" finding customers" client retention" promotions" ad!ertising
and special e!ents.

S5OT anal20i03
,A<( analysis is a strategic planning method used to e!aluate the Strengths"
5ea6nesses" Opportunities" and Threats in!ol!ed in a project or in a business !enture. It
in!ol!es specifying the objecti!e of the business !enture or project and identifying the
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internal and e'ternal factors that are fa!orable and unfa!orable to achie!e that objecti!e. (he
techniFue is credited to Albert 5umphrey" who led a con!ention at ,tanford 3ni!ersity in the
2C>1s and 2C@1s using data from ?ortune ;11 companies.
A ,A<( analysis must first start with defining a desired end state or objecti!e. A
,A<( analysis may be incorporated into the strategic planning model. ,trategic Planning"
has been the subject of much research.
Q
Strengths) attributes of the person or company those are helpful to achie!ing
the objecti!eGsH.
5ea6nesses) attributes of the person or company that is harmful to achie!ing
the objecti!eGsH.
Opportunities) e'ternal conditions those are helpful to achie!ing the
objecti!eGsH.
Threats) e'ternal conditions which could do damage to the objecti!eGsH.
Identification of ,A<(s is essential because subseFuent steps in the process of
planning for achie!ement of the selected objecti!e may be deri!ed from the ,A<(s.
?irst" the decision ma6ers ha!e to determine whether the objecti!e is attainable" gi!en
the ,A<(s. If the objecti!e is /<( attainable a different objecti!e must be selected and the
process repeated. (he ,A<( analysis is often used in academia to highlight and identify
strengths" wea6nesses" opportunities and threats. It is particularly helpful in identifying areas
for de!elopment.
Ahat is ,A<( &'erciseN
A ,A<( &'ercise is a powerful techniFue for unco!ering and understanding your
,trengths and Aea6nesses" and for loo6ing at the <pportunities and (hreats you face.
Ahy ,A<(N
It helps you car!e a sustainable niche in your mar6et by ta6ing the best ad!antage of
your resources" talents" capabilities and opportunities. ,A<( builds alignment. ,A<( is a
ground up approach allowing e!eryone in the e'ercises to ha!e a !oice thus" increasing buy4
in and resulting in a higher le!el of e'ecution. In general" ,trengths and Aea6nesses are
internal to your organization while <pportunities and (hreats often relate to e'ternal factors.
,A<( Benefits.
Ahat ma6es ,A<( particularly powerful is that it helps you unco!er opportunities
that you are well4 placed to e'ploit. And by understanding the wea6nesses of your business"
you can manage and eliminate threats that could affect you negati!ely. 3sing the ,A<(
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framewor6 to assess your strengths and that of your competitors=" you can analyze the
competiti!e landscape and de!elop a strategy that helps you differentiate yourself from your
competitors" so that you can compete successfully in your mar6et.
,A<( Bategories.
2H Product Gwhat are we sellingNH
0H Process Ghow are we selling itNH
9H Bustomer Gto whom are we selling itNH
:H *istribution Ghow does it reach themNH
;H ?inance Gwhat are the prices" costs and in!estmentsNH
>H Administration Gand how do we manage all thisNH
5ow can ,A<( help meN
,A<( identifies critical4to4mission objecti!es. <nce identified" strategy is then defined"
ownership assigned and tas6s e'ecuted that will get you to the ne't le!el in performance.
,A<( .esults. )
,A<( essentially tells you what is good and bad about a business or a particular
proposition. If itEs a business" and the aim is to impro!e it" then wor6 on translating) strengths
Gmaintain" build and le!erageH "opportunities Gprioritize and optimizeH " wea6nesses Gremedy
or e'itH " threats GcounterH into actions Geach within one of the si' categoriesH that can be
agreed and owned by a team or number of teams.
<rigins of ,A<(.
,A<( analysis came from the research conducted at ,tanford research Institute from 2C>14
2C@1. (he bac6ground to ,A<( stemmed from the need to find out why corporate planning
failed. (he research was funded by the fortune ;11 companies to find out what could be done
about this failure. (he .esearch (eam was #arion *osher" *r <tis Benepe" Albert
5umphrey" .obert ,tewart" and Birger 8ie.
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T2pe Pri!ate.
In&*0('2 *irect selling.
F!*n&e& 2C;C
F!*n&e'809
.ich *e-os
Lay -an Andel
6ea&G*a'(e'0 Ada" #ichigan" 3nited ,tates
A'ea 0e'-e& Aorldwide
4e2 pe!ple
S(e-e Van An&el GBhairmanH
D!* DeV!0 GPresidentH
Al 4!!p GBhief &'ecuti!eH
R*00ell E-an GB?<H
Re-en*e 3,* D.: billion G011CH
E1pl!2ee0 29"111
Pa'en(
Alticor
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In('!&*+(i!n3
A1wa2 is the largest direct selling company and manufacturer in the world that uses
networ6 mar6eting to sell a !ariety of products" primarily in the health" beauty" and home
care mar6ets. Amway was founded in 2C;C by Lay -an Andel and .ichard *e-os. Based in
Ada" #ichigan" the company and family of companies under Alticor reported sales growth of
0.9R" reaching 3,SD.: billion for the year ending *ecember 92" 011C.Its product lines
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include home care products" personal care products" jewelry" electronics" /utrilite dietary
supplements" water purifiers" air purifiers" insurance and cosmetics. In 011:" 5ealth $
Beauty products accounted for nearly >1R of worldwide sales. Amway conducts business
through a number of affiliated companies in more than ninety countries and territories around
the world. It is ran6ed by ?orbes as one of the largest pri!ate companies in the 3nited ,tates
and by *eloitte as one of the largest retailers in the world.
Meanin an& ()e 6i0(!'2 !, A1wa23
Ahat does the word Amway meanN Amway is an abbre!iation for JAmerican AayJ.
%reat companies start with great ideas" and Amway is no e'ception. (he idea came when
two /utraliteT salesmen" .ich *e-os and Lay -an Andel were at the !ery top of a !ery
successful #8# at the time7 /utralite was sold door to door. (his was the 2C;1s" /utralite
was a single entity company" and by the end of the decade" Lay and .ich had built a
respectable business of their own 4 appro'imately fi!e thousand distributors were in their
Both #r. *e-os and #r. -an Andel 6new how to mo!e product 4 build on relationships. But
what was needed was a way to e'pand. A way that would allow them to multiply the efforts
of what they alone could accomplish. In 2C;C" the American Aay Association was formed.
(his would be the chance to grow and set the direction of a new entity. .ich and Lay
immediately set out to find an initial product to add to the line. (hey purchased the rights to
?ris6" a household cleaner Gwhich was later renamed 8iFuid <rganic Boncentrate or 8.<.B.H.
In 2C>1" the American Aay Association" now Amway" bought a controlling share in
the manufacturing facility in #ichigan where 8<B was made. Ahat this meant is that there
were 9 companies all using the Amway name. (he Amway ,ales handled product and
distribution" Amway ,er!ices did business related tas6s Gli6e insurance for distributorsH and
Amway manufacturing" which produced 8<B. By 2C>:" the three arms of Amway were all
merged into a single entity 4 Amway Borporation. (he idea was by handling the
manufacturing and distribution of a product line" and then allowing a networ6 of IB<s. (his
seemed li6e the only way to offer what Lay and .ich originally en!isioned 4 a solid
opportunity where anyone with moti!ation could e'cel" regardless of their bac6ground and
status. (his is a main part of AmwayEs business philosophy. /ot just products and not just
sales" but a way to a better life.
Amway continued to grow under the co4ownership of -an Andel and *e!os. In 2C@0"
the pair purchased /utralite outright 4 they now owned the company they had started as
employees with.
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Amway continued to e'pand" reaching past the borders of the 3, to offer the same
opportunities in other countries)
4 Australia 4 2C@2
4 &urope and parts of Asia 4 2C@:
4 Lapan 4 2C@C
4 8atin America 4 2CD;
4 Bhina 4 2CC;
4 Africa 4 2CC@
4 India 4 2CCD
4 .ussia 4 011;
4 -ietnam 44 011D
Britics argued that the model wasnEt sustainable and that growth was mathematically
limited. (hey cried" JPyramid schemeOJ ?ifty years of steady growth has shown this criticism
has no basis in fact.
In 011D" Amway Gnow technically" Amway %lobalH reported sales of D billion. (he
company is in ;D mar6ets worldwide and manufactures more than :;1 products. Amway
%lobal does business in more than CD countries.
.ich *e-os is still ali!e" although he has passed the Presidency of Amway to his son
*ic6. *e-os was named one of the richest men in America by ?orbes magazine" with an
estimated :.0 billion dollars in personal wealth G011CH. *e-os owns the <rlando #agic
bas6etball team among other assets.Lay -an Andel passed away at age D1 in 011:. #r.
AndelEs place at Amway %lobal is now held by his son ,te!e. At his death" -an AndelEs net
worth was estimated to be 0.: billion dollars.
(he company is still thri!ing and still offers opportunity to indi!iduals who ha!e the desire
to build their own business. #8# is a pro!en business model that produces massi!e success
for indi!iduals.
Al(i+!' an& A1wa2 Sale0 G'!w()3 %H?$ (! #$$A3
?ebruary ;th" 011C by ibofightbac6 Posted in Amway /ews
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Amway global sales were reported at estimated retail until 0111 when the holding
company of Alticor was formed. (his means they=re !alued assuming that they were all sold
at the full retail price" not at the price they were sold to distributors+IB<s. Alticor reports
actual re!enue sales at the base IB< price
I=!e con!erted the figures so they can be properly compared. It=s important to be
aware of this as many critics of the business Gincluding some former *iamonds who you
would thin6 6now about thisH ha!e in the past con!eniently ignored the change in reporting
standards and tried to claim Amway=s sales pea6ed in 2CCD. /ote howe!er that Alticor sales
includes re!enues from other sources such Access Business %roup and Amway %rand Plaza.
In 011@ this was reported as around S211 million" so by far the majority of the sales are
through the Amway business opportunity.
A1wa2 Sale0 Da(a3
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Amway has grown fairly Fuic6ly since its inception. Its historic sales data at
estimated retail prices is pro!ided below from 2C;C to 0111 Gin 0111 Amway switch o!er to
Alticor. At its pea6 in 2CC@ Amway estimated retail sales worldwide at @ Billion 3,*. Aith
the founding of Alticor" the report methodology was changed and the actual sales to
distributors instead of estimated retail sales G&.,H ha!e been reported since 0112. (a6ing the
sales data published in 0112 report into account" the &., !alues are about 90R higher than
sales to distributors. (he actual sales to distributors are mar6ed with P.
3ntil 2CCC sales were reported at &stimated .etail. (his is appro'imately 90R higher than
actual sales re!enues from sales made to Amway distributors.
VISION OF AM5AY3
5elping people li!e better li!es.
,howing where the business wishes to be in the future.
MISSION OF AM5AY3
(hrough the partnering of *istributors" &mployees" and the ?ounding ?amilies and
the support of Fuality products and ser!ice" we offer all people the opportunity to
Yea'
E0(i1a(e&
Re(ail Sale0
Yea'
E0(i1a(e&
Re(ail Sale0
Yea'
E0(i1a(e&
Re(ail Sale0
Yea'
E0(i1a(e&
Re(ail Sale0
2C>1 S1.; million 2C@1 S201 million 2CD1 S2.2 billion 2CC1 S0.0 billion
2C>2 N 2C@2 S2>; million 2CD2 S2.: billion 2CC2 S9.1 billion
2C>0 N 2C@0 S2D1 million 2CD0 S2.; billion 2CC0 S9.C billion
2C>9 S02 million 2C@9 S021 million 2CD9 S2.29 billion 2CC9 S:.; billion
2C>: S0; million 2C@: S091 million 2CD: S2.0 billion 2CC: S;.9 billion
2C>; S9D million 2C@; S0;1 million 2CD; S2.0 billion 2CC; S>.9 billion
2C>> S:1 million 2C@> S911 million 2CD> S2.9 billion 2CC> S>.D billion
2C>@ S;1 million 2C@@ S9@; million 2CD@ S2.; billion 2CC@ S@.1 billion
2C>D S>; million 2C@D S;11 million 2CDD S2.D billion 2CCD S;.@ billion
2C>C SD; million 2C@C SD11 million 2CDC S2.C billion 2CCC S;.1 billion
AAA
achie!e their goals through the Amway ,ales and #ar6eting Plan. Broad o!er riding
statement of purpose.
(o facilitate best business opportunities.
(o deli!er high4Fuality products to semi4urban and urban homes in di!erse areas of
insurance" home tech" home care" personal care" cosmetics and wellness.
GOAL OF AM5AY3
(he de!elopment of new business opportunities.
(o increase the companyEs role in relations to social responsibility.
(o pro!ide e'cellent customer ser!ice.
Awa'&0 an& Re+!ni(i!n3
Presented the #illennium <utstanding ,er!ice Award 0111" by the Bonfederation
for the Blind GAIBBH" in recognition for wor6 carried out for the !isually
challenged.
(he Indian .ed Bross ,ociety" <rissa awarded A<? a memento $ certificate for
conducting a mega4Blood *onation camp of D2> units on :th #ay" 0119.

(he ,urat .a6tdaan Iendra felicitated Amway India at their annual function on ;th
<ct" 0119" for the largest number of donors at a Blood *onation Bamp GB*BH held
by any financial and commercial institution and industry. (he #ayor of ,urat 4
,nehlata Bhouhan 4 presented a trophy and a certificate of appreciation.

S!+ial 'e0p!n0i=ili(ie0 pe',!'1e& =2 AM5AY3
<ne by <ne Bampaign for Bhildren
Amway <pportunity ?oundation GA<?H
/ational Project for the Blind)
P'!.e+( S*n'i0e3 (he objecti!e is to identify one orphanage+institution at each location
where Amway has a modestly4large office G;0 citiesH. <n4going assistance to be pro!ided in
education" healthcare and !ocational training under the following heads)
U 5ealth care
U &ducation and !ocational training
U ,afe drin6ing water
AAA
U Bhildren=s *ay and A<? *ay celebration with Amway staff $ Amway
A1wa2 P'!&*+(03
Amway offers a range of e'clusi!e" competiti!e brands that meet pro!en customer
needs around the world. ?rom nutritional supplements to water treatment" cosmetics to
cleaning products" these brands are the solid foundation for a successful" independent .etail
business.
Acti!e 8ifestyle V Artistry V Atmosphere V Beautycycle V Body ,eries V BoutiFue V *ish
*rops V &ddie ?un6houser V &mma Page V e,pring V 8.<.B. V %ensona V %lister V 5ymm V
iBoo6 V 8ife,tyle Balanced ,olutions V /A< Bosmetics V #ois6in ,6in Bare V /utrilite V
/utriway V W, &nergy V <cean &ssentials V Personalized 5ealth V Peter Island V ProtiFue V
Positrim V ,atiniFue V ,AD V (ime *efiance V (olsom V (rim
A1wa2 Pe'0!nal Ca'e P'!&*+(0

/utriliteT is the world=s leading brand of !itamin" mineral" and dietary supplements" grown
har!ested and processed on its own certified organic farms.
ArtistryT is one of the world=s top fi!e largest4selling prestige brands of facial s6in care and
colour cosmetics. <ur scientists and formulators ha!e de!eloped the complete line of
cosmetics"
All products of Attitude contain ,6in -italising Bomple' that synergistically combine to
cleanse" .eplenish $ #oisturise the s6in ma6ing it soft $ supple.
AAA

*ynamiteEs range of male grooming products" formulated internationally is designed to
deli!er the ultimate grooming e'perience.
%lister (oothpaste is a re!olutionary #ulti4Action (oothpaste with ,ylodent that offers
se!en benefits.
Persona Premium 9 in 2 ,oap is a complete soap for the entire family promises refreshing
confidence.

,atiniFue Ad!anced .ange with uniFue Beramide Infusion ,ystem uses natureEs own
renewing technology to reju!enate" strengthen and protect your hair.
,AD %elzyme is IndiaEs only 94in42 laundry detergent which pretreats" cleans and softens.

AAA
%$5 .ange enriched with the goodness of %lycerine and 5oney" deeply nourishes and
hydrates the s6in for a healthy glow.
8<B 5igh ,uds is a multipurpose household liFuid cleaner.
*ish *rops is a concentrated hand dishwashing liFuid with a powerful J(riadic *etergency
,ystemJ.
%reat -alue Product .ange offers you %reat Muality" %reat Performance" %reat Price
and a #oney Bac6 %uaranteeO
A1wa2E0 +!1pe(i(!'03
%9 Di'e+( +!1pe(i(!'03
A-</
#A. IA
,3/.I*&.
#9 In&i'e+( +!1pe(i(!'03
8ocal I/*IA/ companies.
Bhanging Political $ &conomic Atmosphere
Products used as samples to persuade relati!es and friends to join Amway
?ocus shifted from selling products to recruiting.
O'ani7a(i!nal 0('*+(*'e !, A1wa23
Te'10 *0e& in A1wa23
IBO"ABO"AIECIn&epen&en( B*0ine00 Owne'"A1wa2 B*0ine00 Owne'"A1wa2
In&epen&en( En('ep'ene*' is a business partner of Amway who is authorized to
AAA
mar6et and distribute products and ser!ices a!ailable from Amway. *ifferent names
are used in different mar6ets.
Di0('i=*(!' 4 an older term for IB<
PV I P!in( Val*e is a !alue assigned to each product or ser!ice sold by Amway.
An IB<s monthly performance bonus brac6et depends on total P- in a month.
BV I B*0ine00 V!l*1e is typically the wholesale cost of the product or ser!ice sold
by Amway. Performance bonuses are multiplied by the groups total B-.
Pe',!'1an+e =!n*0 is the monthly bonus paid by Amway to IB<Es. (he higher the
P-" the greater the percentage earned. In /orth America the Performance bonus
ranges from 9R to 0;R. In other mar6ets it ranges from 9R to 02R. In India it ranges
from >R402R.
Re(ail P'!,i( is the mar6up earned by an IB< when they sell a product to a
consumer" either personally or through an Amway website. .ecommended retail
mar6up ranges from 01R49;R.
Sp!n0!' is an IB< who refers GsponsorsH a new IB< to Amway" although IB<Es do
not get paid to sponsor.
Upline is the term used to refer all the IB<s up in the line of sponsorship of an IB<.
D!wnline is the term used to refer all the IB<s down in the line of sponsorship of an
IB<. (hey are collecti!ely also 6nown as '!*p
Le refers to a personally sponsored IB< and all of their downline.
Sil-e' P'!&*+e' is an IB< who has reached the ma'imum bonus le!el for one
month.
G!l& P'!&*+e' is an IB< who has reached the ma'imum bonus le!el for three
months.
Pla(in*1 or &i'e+( is an IB< who has reached the ma'imum bonus le!el for si'
months. In /orth America a Platinum is generating a minimum of appro'imately
S91"111 in sales !olume per month.
E1e'al& a distributor with at least three legs generating ,il!er Producer !olume for
at least > months of a year.
Dia1!n& a distributor with at least si' legs generating ,il!er Producer !olume for at
least > months of a year.
FC%# is a Platinum or higher IB< that Fualifies e!ery month for 20 months of a year.
AAA
In&epen&en( B*0ine00 Owne' 8IBO93
An IB< is" literally" an Independent Business <wner) an indi!idual or indi!iduals
who own and operate their own business" which is powered by Amway /orth America"
formerly Mui'tar. IB<s are the B&<s of their own businesses" and they ma6e many of the
same daily business decisions other business e'ecuti!es ma6e. As independent business men
and women" IB<s decide how acti!e to be in their business" what products to sell and at what
prices" who to sponsor" what hours to 6eep" and other important decisions. IB<s are
independent contractors7 they are not employees of Amway /orth America or Amway
Borporation. As independent business owners" IB<s are free to ma6e decisions many others
in business are not free to ma6e.
In&epen&en( B*0ine00 Owne'0 A00!+ia(i!n In(e'na(i!nal 8IBOAI9 3
(he IBOAI GIB<A International or Independent Business <wners Association InternationalH
is a trade association representing Independent Business <wners affiliated with Amway
/orth America" formerly Mui'tar. It is the primary ad!ocacy organization for IB<s in /orth
America. A trade association is an organization of business people who share common
interests or concerns" and who educate and represent their members. (he IB<AI Gor IB<A
InternationalH is one e'ample.
R!le !, ()e IBOAI B!a'&3
(he IB<AI Board is the representati!e body of the Association acting on behalf of all
IB<s. Aith IB< input" support" and participation" the IB<AI Board listens to ideas" proposes
impro!ements" and ad!ises Amway on the best way to mo!e the business forward. Aor6ing
closely with Borporate staff" the Board ad!ises Amway on e!ery facet of the business" from
products and promotions to operations and business guidelines" as it has for ;1 years.
(ogether" they bring positi!e change to this business" to 6eep it mo!ing forward and ma6e
certain the business is better for e!ery generation.
#$%$ IBOAI B!a'& an& G!-e'nan+e < O-e'0i)( C!11i((ee3
,te!e Aoods" Bhairman
Brad *uncan" -ice Bhairman
Bob Andrews" Past Bhairman
O()e' i1p!'(an( &i'e+(!'03
1. Alberto Aguilera
AAA
0. %len Ba6er
3. #i6e Bundy
:. Lohn Browe
5. 5owie *anzi6
>. Lim *ornan
@. Lody *utt
8. Ianti %ala
9. Bert %ulic6
10.8eif Lohnson
11.,hi!aram Iumar
12.Pedro 8izardi
13.*oug Aeir
14.*oyle ager
15.*an uen
IB<s are ne!er alone. (hey ha!e a sponsor" a line of sponsorship" and the IB<AI their
primary ad!ocacy organization behind them all the way.
O'ani7a(i!n (2pe an& B*0ine00 Opp!'(*ni(23
(he Amway is pri!ate co operati!e organization. (he Amway ,ales and #ar6eting
Plan put you in control" allowing you the fle'ibility to wor6 where and when you want"
gi!ing 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 reFuire to become the Business <wner you want to be. Aith
Amway you are C!nne+(e& to the global leader in multile!el mar6eting" with o!er :1 years
of e'perience" S*pp!'(e& by great products and people who will help you succeed" and
finally In C!n('!l of your life.
Sale0 an& Ma'Be(in Plan3
(he Amway ,ales and #ar6eting Plan is a low ris6" low start4up cost business
opportunity that is open to e!eryone. 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 mar6eting 6nowledge to your de!eloping
team" you not only build your own business networ6 but also enable others to build one of
their own.
AAA
Ma'Be(in 0('a(e23
A strategy is a plan of action designed to achie!e the goals of the organisation. In
creating a mar6eting strategy for the ,uper Boncentrated Bleaning ,ystem" Amway needed
to set out the 6ey objecti!es it wanted to achie!e. (he following objecti!es for the brand
were set)
(o increase distribute or profitability and producti!ity by pro!iding a new and
e'citing business opportunity
(o optimize consumer con!enience and !alue through enhanced product
differentiation with this e'clusi!e and re!olutionary cleaning system
(o pro!ide inno!ati!e and uniFue products to enhance the image of Amway 5ome
Bare.
A New S('a(e2 !, A1wa23
Agreement with the go!ernment and company
resumed operations
%oods will be sold in retail outlets and through
sales representati!es
Income of sales distributors will be based on direct selling done by them
,ame *istribution centers ser!ed as retail outlets for the company
8ocalization of employees
8ocalization of production and .aw #aterial
8ocalization of research and de!elopment
(ransparency and Bredibility of company=s management
F*n+(i!nal pa((e'n !, A1wa23
?ollowing are the main departments of Amway)
2. ?inance and accounts.
0. #ar6eting and ,ales.
9. 5uman resource and administration.
A1wa2 Gl!=al p'!-i&e0 2!* wi() 0*pp!'( liBe3
AAA
C*0(!1e' +a'e3 If you ha!e a Fuestion about anything 4 li6e registration" renewal"
Business" or product information 4 our Bustomer Bare Associates can help you.
B*0ine00 1anae1en(3 ou can manage your business" chec6 customer -olume"
order products" and renew your business" all at Amway %lobal.com.
O'&e' 1anae1en(3 ou sell the products" and weEll do the rest" li6e process the
order" manages your customer accounts" and handles the shipping details.
T'ainin3 <nline" !ideo" and instructor4led training are some of the ways we can
share with you the 6nowledge to grow a successful independent business.
Ma'Be(in3 Ae support your sales efforts with *-*s" online sites" #agazines"
brochures" and free websites you can personalize. And we help Build awareness of
your products and brands with national ad!ertising" promotions" and e!ent
sponsorship.
Amway belie!e that Fuality impro!ement happens when people come together. (his
core belief is what all A<? initiati!es are based upon and it holds true time and again. Aith a
passionate and !igorous wor6force ready to contribute their bit to the well4being of society"
!olunteering becomes a way of life in Amway. (he ;;1"111 Amway distributors and :;1
full4time employees are all considered A<? !olunteers. At ;> Amway offices across India"
A<? has formed a team of > or more distributors and employees to form a 8ocal
Implementation Bommittee G8IBH. 8IB ta6es ownership of being the face of Amway=s B,.
at the location. (hey identify potential partners" form a project" and implement this with
other !olunteers. (he 8IB also plays a lead role in raising funds they wish to utilize. (he
beauty of this system is that the 8IB raises the funds" and then decides how best to utilize this
in their town or city.
S('a(ei+ anal20i0 (! !-e'+!1e p'!=le103
(oday it is a global business that" along with its parent and sister companies" directly
employs 21"111 people worldwide. (he business also operates strategically at a %lobal"
&uropean and /ational le!el. Amway G3IH began operations in 2C@9 and has its own
distribution and Product ,election Benters.
Amway has helped millions of people around the world to start their own
independent business" through which they engage in person4to4person mar6eting. (his type
of direct selling in!ol!es matching a consumerEs needs with the goods and ser!ices on offer.
(he better the match" the more lasting the relationship between the seller and the buyer.
Owne'0)ip !, A1wa23
IBO0 an& C*0(!1e'03
AAA
Amway ser!ices the needs of both Independent Business <wners and customers.
IB<s build businesses that allow them to earn income based on sales made resulting from
their efforts. (o launch an Amway4powered business" indi!iduals must register with an
e'isting IB<. Bustomers pay no fee to shop from a large selection of products and learn from
e'pert ad!ice on health" beauty" home care" and other topics. Products are shipped to their
homes and co!ered by AmwayEs Bustomer ,atisfaction %uarantee. Bustomers must register
with the identification number of their ser!icing IB<. If a new registrant *oes not ha!e a
ser!icing IB<" Amway will assign them one..
Pe'0!nal Re,e''al03
3nli6e most other companies" AmwayEs sales are not the result of ad!ertising. (he
biggest chun6 of AmwayEs mar6eting budget goes directly to rewarding IB<s for sales
!olume resulting from their efforts. (hose efforts include registration of new Ibos" #embers"
and Blients" resulting in product sales. AmwayEs tiered compensation plan rewards the
mo!ement of product through an IB<Es sales organization and their ability to train others to
create their own successful organizations. Ahen people !isit AmwayEs site" it is the result of
a personal referral by an IB< 4not as a result of some ad!ertisement they saw on (-.
Personal referrals ha!e pro!en to be much more effecti!e. <nly DR of respondents in the
&delman 011;Annual (rust Barometer study indicated that information obtained in
ad!ertising was credible" while :0R trusted information obtained from family" friends" and
colleagues.
B*77 Ma'Be(in3
Alticor pioneered buzz mar6eting through its person4to4person referral model. ,ome
companies spend millions on strategies intended to get people to spread the word about their
products. (hrough its Independent Business <wnership Plan" Am4way does the same by
rewarding IB<s for spreading the word about the business opportunity and the e'clusi!e
products a!ailable through Amway. (his is a much targeted mar6et spend" since IB<s are
rewarded only when their efforts actually result in product sales.
B*0ine00 S20(e103
IB<s employ many different approaches to build their businesses" typically in!ol!ing
training systems" moti!ational meetings and tools" and time4tested tactics to approach people
and interest them in the business opportunity and products. Ahen a person registers with
AAA
Amway" it typically is the result of ha!ing been approached by an IB< already in!ol!ed in
one of se!eral large organizations that pro!ide training and support to IB<s. <ften" a new
IB< also will choose to attend optional and !oluntary training sessions or purchase
professional de!elopment materials pro!ided by that organization 4 all co!ered by a money4
bac6 guarantee.
In&epen&en+e3
(he beauty of AmwayEs business model is that there can be as many ways of pursuing
the business as there are IB<s. If youEre into health" you can focus on /utrilit supplements
and W, &nergy *rin6s.
S5OT anal20i0 !, A1wa23
STRENGT63
Based on direct selling operations. 5ence it can be A home based business. &!ery can
participate in business. It=s easy to get admission in Amway with easy rout li6e
intent.
(raining to staff.
?unctions are performed by IB<s.
<rganize meetings and e!ents time to time.
5a!e good customer ser!ice system.
Bac6ed by a 211R Bustomer Product .efund Policy produce faith and reselling
attitude in customers.
Muality Products that Inspire Bonfidence. Almost no ris6 of money as world class
Fuality #inimal start up costs gi!es strong base to the initiation of business. ,o
e!eryone can participate in business. (he person who wants do something can be
ma6e profit with in!estment of low cost.
Products are easy to sell.
A business with national and international scope gi!es more opportunity to the
costumers.
(he possibility of financial security and freedom of time to enjoy life.
5EA4NESS3
#ore power to IB<s gi!es critical structure to organization.
Initially high entry cost leads to somewhat restrictions for business de!elopment.
AAA
.umors for direct selling operations.
?ocus shifted from selling products to recruiting.
OPPURTUNITIES3
,etup a manufacturing plant in all countries leads to better platform for company.
Population of I/*IA gi!es better opportunity to company to recei!e more profit.
As the company name itself gi!es reliance and faith for the customer and buyer
produce greater opportunity for mar6eting which leads to decrease in total
e'penditure of company.
T6REATS)
(oo much freedom to IB<s.
Bhange in go!ernment policy may affect to the profit and freedom of company.
Bompetitors li6e A-</" #A. IA7 ,3/.I*&. creates lot of competition in
mar6et which leads to strong mar6eting competition in mar6et.
AAA
Fin&in3
I=!e written about Amway based entirely on factual" confirmable sources. If you=re
researching Amway" especially on the Internet" chances are you=!e encountered people who
claim Amway is some 6ind of scam business" it=s illegal" the products are poor Fuality" or
some other information that has made you thin6 twice about being in!ol!ed.
,6im through these finding and decide for yourself whether those 6inds of opinions
really ha!e a lot of credibility in the face of all of these facts. 5a!e all these major companies
and organizations that ha!e recognized Amway for e'cellence been connedN ?or fifty yearsN
<r perhaps the opinions you read on the internet ha!e been formed from limited or e!en no
e'perience from encountering some new or ine'perienced Amway rep that ne!er bothered
to learn how to act professionally or properly e'plain the concept" and probably ne!er did
much more than dabble for a few months. <r perhaps the e'perience was with just one of
dozens and dozens of different Amway affiliated organizations" each with different ways of
doing things that may not all appeal to e!eryoneN <r perhaps their opinions dri!en by
business interests wor6ing or being paid by competitors or potential competitors to AmwayN
CONCLUSION3
AAA
Amway is which is one of the largest direct selling company in the world. (he main
objecti!es of Amway are to profit there distributers by eliminating the middlemen and
pro!ide the products to the distributers in cheaper price. (he products of Amway are world
class product Fuality. (hey are made up of natural a thing that=s why they are good for health
and en!ironment. Amway co!ers a wide range of products from beauty care. 5ealth care" to
clothing" and daily use products etc. the products are costly as compared to other branded
products a!ailable in mar6et but if we compare the Fuantity while using the products reFuire
less amount and thus can be used for longer time. Successful business today depends upon a
companyEs ability to Fuic6ly adapt to changes in the mar6etplace. At Amway" they pride it
sel!es on 6nowledge of the dynamic networ6ing mar6et that is Fuic6ly becoming central to
modern business. (his 6nowledge" and its willingness to act upon it" has enabled us to
become one of the industryEs technological leaders. (hrough they continued pursuit of new
product ideas" and by consistently refining our e'isting product line" they ha!e become one
of the top pro!iders of cutting4edge networ6ing products in the global mar6et. If youEre
loo6ing for high Fuality products and solid customer support at roc64bottom prices" then
choosing Amway really does ma6e sense.
SUGGESTIONS3

(rial pac6s should be used because customer must ha!e to introduce the product.
<nce customer gets idea about product he comes to 6now ad!antages of products.
(he products should be cheap the home deli!ery system ta6es at least two days to
deli!er the products so the deli!ery should be instant.
(here must be multiple options for purchasing the products for distributers li6e
online" tale and instant purchasing.
AAA
In e!ery city" the Amway office should be situated in such a location so that it is in
reach of all distributers.
Bi=li!'ap)23
1) www.worthwilemag.com
0H http)++www.amway.in+
3) http)++www.amway.in+Articles+Article.
:H http)++en.wi6ipedia.org+wi6i+Amway
;H http)++www.authorstream.com+
>H http)++www.nutrilite.com+
@H http)++en.wi6ipedia.org+wi6i+<rganisation
DH http)++en.wi6ipedia.org+wi6i+Business
CH http)++www.businessballs.com
21H http)++en.wi6ipedia.org+wi6i+Administration
22H http)++www.business4standard.com
20H http)++www.scribd.com
29H http)++www.mouthshut.com
2:H http)++www.mouthshut.com
AAA
15)http)++wi6i.answers.com
16)http)++dictionary.reference.com
2@H http)++www.thetruthaboutamway.com+
2DH http)++articles.bplans.com.
Anne/*'e3
A1wa2 In&ia plan0 %@$ new ='an+)e0 =2 #$%:
&yes 0;R y4o4y growth for the ne't fi!e years.
Amway India &nterprises P!t 8td" a major direct selling ?#B% Bompany in the country" is
planning to open 2@1 new branches across the country in the ne't three years Gby the year
0129H. (he company is also eyeing 0; per cent year4on4year growth for the ne't fi!e years.
Presently" the company has 291 branches across the country. (he company offers 22;
products in fi!e categories4 Personal care" 5ome care" /utrition $ Aellness" Bosmetics and
%reat -alue products. /utrition $ Aellness segment contributes around ;1 per cent of
Amway India=s total turno!er.
JAith an aim to strengthen our networ6 base" we are planning to increase the number
of touch points GbranchesH up to 911" by adding 2@1 new branches across the country in the
ne't two4three years. Ae are also planning to launch > to D new products e!ery year"J
Ailliam ,. Pinc6ney" #* $ B&<" Amway India" said at a press conference during plant
!isit of reporters to its Baddi facility in 5imachal Pradesh.
AAA
Aith an aim to meet the mar6et demand" the company has just tripled the capacity at
its contract manufacturing facility in Baddi G5imachal PradeshH at an in!estment of .s. ;;
crore.
JAmway=s focus in the past 049 years was to impro!e consumer access and
awareness" which paid off handsomely. Ae ha!e grown from .s. @CC crore in 011@ to .s.
2:1@ in 011C crore o!er the past three years" essentially as the Fuality of the Amway pic64up
centre=s has undergone a sea change" and are more e'periential for the consumers. Ae are
eyeing 0; per cent year4on4year growth for the ne't fi!e years"J Pinc6ney said.

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