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CHAPTER -1

INTRODUCTION OF THE PROJECT

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INTRODUCTION

I am studying in MBA I sem in Department of Management Science, SubCampus Osmanabad I have doing a project on Amway India Pvt Ltd.the The project
study also provides an opportunity to develop communication skill, analytical skill and
also expose to the organizations culture and the actual working of the organization.The
study helps management to improve financial performance of the company in future. I
have studded over all environment and organization. I have decided the project because I
was working in the Amway at Aurangabad branch. I have analyzed the company
management system because they provide good services in organization for employees. It
provides the health and nutrition product to support the human being for this reason I
have all information to collect the data for Amway business.
I studied the human resource department how to communicate the people and as the like
of all department is very good work. The project given an overview of the requirement of
the chosen as well as the general application of the management and theories.the analysis
of all project by the performance is very good in future it is the process of customer
satisfaction and marketing target achieving the goal.
That development of everyone else is ignored or less important. Leadership Succession
Management Process is a part of the corporations comprehensive Talent Development
strategy that places emphasis on both the development of people.

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Objectives
To understand the Structure of organization.
To understand empowerment of the rural people and citizens.
Understand socially and health relevant products at an affordable price to
the communities.
To understand the sustainability in business.
Understanding business ventures which are financially sustainable.
To facilitate bottom-of the- pyramid marketing of organization.
Understanding the marketing and financials including sales and Services.
To understanding the after sales product in market for the customer
satisfaction.
The business is built on the simple integrity of helping people lead better
lives.
To be able to apply theoretical knowledge in practical manner in real life
business.
To study various aspects of financial management of the organization.
To apply various concept and research methodology for project analysis.
To find the importance of Advertisement and promotional Activity by the
company.

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Scope
As it is growing as a Amway India Ltd with successful growth it show it better
image at state or national or international level. Provides conducive environment in
which to live, work, achieve and grow. The Amway business recognizes supports and
expands freedom, which is both personal and economic.
It gives the freedom to operate as independent business people and conduct a full-time or
part time business. It is a force that allows us to envision dreams, establish goals, and
achieve great things. By offering hope, we open windows of possibility for others,
irrespective of social status, profession or educational background.
Their ambitious growth strategies involve participation of every employee. They
encourage their employees for the generation and adoption of new/different ideas to
improve business efficiency, productivity and customer experience.
Increase the knowledge about an organization.
I can get motivation of market.
I got practical knowledge.
To learn actual market of corporate world.
To the customer achieve the goal and better business.
Amway India Ltd is attempting to achieve top quality of its products and all services
provided that will satisfy the more-and-more demanding needs and requirements of
customers, and to achieve top quality in all internal processes. The Groups aim in the
field of social responsibility is maintaining long-term balance between economic,
environmental and social areas.
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Limitations

I am able to give only 1hours in a day.


I have taken overview information of Organization.
I am unable to get appropriate financial data from company.
Also unable to get technical production procedure.
Time factor is also major limitation during my project.

The data used for the project is mostly secondary data. Its something hard to
assure 100& authenticity of secondary data.

The period of the project was not sufficient to study all the factors in deep.

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CHAPTER -2

Research Methodology
Research Methodology:
It is a scientific and systematic search of discovery. It is an academic activity and
as the term should be used in technical sense. Research can be define as A scientific
search for pertinent information on a specific topic Research is the systematic method of
collection, recording facts in the forms of numerical data relevant to the formulating at a
problem and arriving at a certain conclusion over the problem bases on the collected data.
Research can be defined as logical and systematic means or technique to discover new
facts or verify facts, analyze their sequence, interrelationship and casual explanations
which were derived with an appropriate theoretical frame of reference develop new
scientific tools, concept theories which would facilitate reliable and valid study on human
behavior
A pre-appraisal phase: This phase I included desk research, creation of a conceptual
framework, initial face-to-face dialogues with Amway India Ltd staff to review and
rework the conceptual framework, preliminary design of instruments, a pilot study in the
field involving testing the instruments, and a finalization of the methodology to be
employed in the study. This methodology included the final set of instruments (both
qualitative and quantitative), the selection of the sample to be studied, and the initiatives
to be included in the study, namely the scope of the study.
An implementation phase: This phase II of included the actual work of 6 days, followed
by the initial write up of findings. This was based largely on qualitative in-depth
interviews with staff, focus group discussions and profiling of participants and interviews
with external stakeholders of the suppliers and business partners.

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A follow up phase: The final phase included a follow up visit where the initial drafts were
reviewed as well as the quality of the quantitative surveys was jointly assessed by SRPL.
Consequently, a second set of data collection took place to fill in the gaps and obtain the
data needed.

Research design methodology


In this report the primary data has collected through the interview of the managers &
employee of the company. Secondary data has collected through the books, articles,
annual reports of the company

Primary Data

The first hand data is collected through interview. The interview


is conducted with operation manager kailash motiwale.

Asking the people living around the organization.

Onsite observation.

Contact Field product sealer.

Discussion with customer about product and company.

Secondary data

Visit to website

Read the company book and giving project report data.

By published source.

Data set & samples


The data used for this study acquired from bank annual reports, internet & websites of the
Company. The various reference books are referred for this study to know how to value
the Company & what are the various methods to value the Product. 2009-2010 financial
years Balance Sheet have considered for the study.
Sampling:

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While collecting the data it is in a single sample format. A single sample can give
overview of the all the samples.

Data Analysis:
Several statistical tools are used for data analysis, in order to make the analysis suitable
for effective decision making. The statistical analysis of the data is done by simple on
tables, charts & diagrams etc.
Research Methodology used for the project
Types of Research Methods:

Descriptive vs. Analytical:

Applied vs. Fundamental

Quantitative vs. Qualitative:

Conceptual vs. Empirical

I have used Descriptive type of research for project. In this type of research the collected
data can be either static dynamic or historical in nature. A descriptive study is static in
nature if it involves a single measurement of the phenomena in question.
Types of data
There are two types of primary data or secondary data
Primary data:
Secondary data:

Source of data
I have collect information as follows:
Internet
Book
Observation
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Questionnaire
Schedules

CHAPTER -3

PROFILE OF THE COMPANY

Jay Van
(Chairman&President)

Andel

and

Richard

DeVos

Mich., July 13, 2011 Direct selling giant Amway reached $1 billion in monthly
sales during June, breaking the billion dollar mark in a single month for the first time in
the company's 52-year history. Overall, sales are up across the Amway footprint, which
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spans more than 80 countries and territories. Sales increased in nine of the company's top
10 markets in June. Amway operations in China, Korea, India, Thailand, Taiwan, and
Ukraine recorded double-digit growth during that same time period. Successful product
promotions, increase in brand awareness through global marketing campaigns and pricing
adjustments are the primary drivers attributed to robust sales results.
"We are experiencing an intense period of growth, and with fluctuations that normally
occur in our sales cycle, we expect that momentum to continue," said Bill Payne,
executive vice president and chief of staff at Amway. "We're excited because year-overyear sales increases indicate that our long-term Growth through Innovation strategy is
clearly paying off. We're being smarter about how we work and where we focus our
efforts. Trends indicate we could have another record-breaking year."China, the
companys largest market, had record sales in June. In addition, a strong promotion of
water treatment systems in Korea and nutrition product promotions in Russia
significantly increased sales. North America, Amway's home market, is growing and well
positioned to continue that trend, driven by numerous, innovative distributor and
consumer programs. Amway is one of the world's largest direct selling businesses. Alticor Inc.,
parent company of Amway, reported global sales of $9.2 billion in 2010. Founded in 1959 and based
in Ada, Michigan, USA, Amway offers consumer products and business opportunities in more than 80
countries and territories worldwide. The top-selling brands for Amway are NUTRILITE vitamin,
mineral and dietary supplements, ARTISTRY skincare and color cosmetics, and Spring water
treatment systems.

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Amway Head Office Address


Amway India Enterprises Pvt. Ltd.
9th Floor , Tower A&B , Express Trade Towers 1
Plot No. 15-16 , Sector - 16A, Noida - 201301(UP) ,India
Tel.:+91-120-3096500
Fax: +91-120-3096552

INTRODUCTION
Amway is one of the world's largest direct sales organizations with over 3 million
Independent Business Owners (IBOs) in over 80 markets and territories. It is a family
owned company with a strong emphasis on family values. Its IBOs are mainly couples
with many raising young families and therefore have a strong bond with children. These
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families are more than happy to be partnered with Amway, who as part of its Corporate
Social Responsibility Strategy works with UNICEF, the United Nations Children's fund.
IBOs sell Amway's own branded products. They are Amway's links with consumers and
the communities in which they operate. This case study shows how Amway is a business
that does more than simply provide customers with good quality products. In addition it
plays a key role in the communities in which it operates.
Businesses need to trade ethically, i.e. in a principled way. Amway has put ethical
behaviour at the top of its agenda. Ethical behaviour is part of Corporate Social
Responsibility (CSR). This refers to business organisation's wider responsibilities to
society.
Amway's ethical beliefs are illustrated through the support of global causes. It defines a
global cause as 'a social issue affecting many people around the world engaged in a
struggle or plight that warrants a charitable response'. This case study explains how
Amway's One by One Campaign for Children illustrates the businesses' commitment to
children in need across the globe.

HISTORY
What does the word Amway mean? Amway is an abbreviation for "American
Way" and was coined in 1959 by company founders, Jay Van Andel and Richard DeVos.
Short, unique and easy to remember, Amway has been registered as a corporate name and
trademark ever since.
In the following decades, Amway Corporation successfully established itself as a leading
multilevel marketing business, built on strong values and founding principles that
continue to sustain our company today. The business is built on the simple integrity of
helping people lead better lives.
Today, Amway is a multibillion-dollar international business representing freedom and
opportunity to millions of people in more than 88 countries and territories around the
world. Amway generates US $ 9.2 billion (January - December '09) in sales at estimated
retail through this global product distribution network. We offer over 3 million Business
Owners the inspiration to grow those businesses, and we work hard to provide new and
better ways for them to achieve their life goals.
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Vision& Mission
Vision
Amway's vision is 'To help people live better lives'.

Mission
To provide the best business opportunity. To deliver exceptional quality products to urban
and semi urban homes in the areas of nutrition and wellness, cosmetics, personal care,
home care, home tech and insurance.

Values
Amway has established some simple shared values that unite the entire company, and all
of the Business Owners that are associated with Amway. We believe that these values
guide our actions and help us to achieve everything we are capable of without
compromise or harm.
Integrity
They will uphold the highest personal and professional integrity which demonstrates
honestly, loyalty, respect and high ethical standards in all our responsibilities, obligations
and other activities. We are committed to behave at all times in accordance with the
ethical practices of the organization.
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Trust
Building reliability and dependability for self displaying commitment honesty
confidentiality and consistency in all actions.
Transparency
We will promote a culture of openness and mutual trust by Interacting objectively and
without underlying personal interests.
Service Orientation
We are committed to serve our customers to fulfill their needs by focusing efforts on
discovering and thereby meeting stated and unstated requirements.
Partnership
We will collaborate across boundaries and find common ground by sharing ideas and
resources, with a wide range of stakeholders. We will develop networks and build long
term alliances with internal and external customers.
Recognition
We are committed to honor, encourage and support individuals and teams who contribute,
through their behavior and actions, to the success of the organization.

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ORGANIZATION STRUCTURE

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SOCIAL RESPONSIBILITIES
National Project for the Visually Challenged
Amway Opportunity Foundation (AOF) is a registered non-profit organization
that looks after Amway Indias Corporate Social Responsibility. Amway staff and
distributors are volunteers and participate in AOF activities. Under the National Project
for the Visually Challenged, AOF has: Ensured that around 85,000 visually challenged
school-going children have had access to Braille textbooks. Between 1999-2005 this
project has covered Rajasthan, Delhi, Maharashtra, Haryana, Uttar Pradesh, Punjab,
Bihar, Gujarat, Tamil Nadu, Andhra Pradesh, Karnataka and Madhya Pradesh. This work
- done twice each in three states was carried out in partnership with the All India
Confederation of the Blind (AICB) and the National Association for the Blind (India)
NABCelebrated the International White Cane Day for nine years running, with our NGO
partners, at over 35 locations across the country each year.Celebrated Louis Braille Day
for five years again with our NGO partners.
Donated audio-textbooks for Bangalore University and extended support to the
Karnataka Welfare Association for the Blind (KWAB) in conducting a cultural event in
Bangalore.Presented a 20-volume Websters Dictionary in Braille to the Delhi Blind
School and Braillon machine to the Indian Blind School at Madurai. Supported Dr
Shroffs Charity Eye Hospital (Delhi) in conducting communications workshops, as well
as a car rally at Surat for the visually challenged. Distributed 1000 Braille kits in Kerala
and enabled a state-level chess tournament for the for the visually challenged in Tamil
Nadu.Organized eye camps at Surat, Erode, Balasore, Delhi and Siliguri over 5000
persons from economically challenged sections of society have taken part in these camps.
At Delhi, these camps have been held for three years running, along with Mahavir
International, an NGO that runs a hospital for the visually challenged.All this work has
been carried out by the active partnership with the 550,000 Amway distributors in India,
who have helped raise a significant part of the funds for this work.While Amway has
received a citation from the World Blind Union in Dec 03, Amway does not accept any
awards for the work we do.Amway India is working to make a difference, one by one
Computer Centres and Vocational Training for the visually challenged
Having created a vast body of work for visually challenged children, Amway Opportunity
Foundation (AOF) has now taken this effort to a newer level by helping set up fully
functional computer centres at schools for the visually challenged. This includes
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conditioning of the room, as well as recurring costs such as computer instructor,


electricity etc.
Currently AOF has successfully instituted 15 such centres:
Kolkata AOF-RKMBBA Computer Centre, at Narendrapur - With Ramakrishna
Mission Blind Boys Academy.
Kolkata AOF-NAB Centre for Excellence, at 63, Rafi Ahmed Kidwai Road,
Kolkata 700016 - With National Association for the Blind (NAB).
Jaipur AOF-RNKS Computer Centre, at Gangori Bazaar, Jaipur With
Rajasthan Netraheen Kalyan Sangh.
Chandigarh AOF-NAB Centre for Excellence, at Asha Kiran, Sec 46 D,
Chandigarh - With National Association for the Blind.
Ahmedabad - AOF- AKPG Centre for Excellence, at Near Manav Mandir,
Memnagar, Ahmedabad-380002 With Andh Kanya Prakash Gruh.
Mumbai AOF-NAB Centre for Excellence, 11, Khan Abdul Gaffar Khan Road,
Worli Seaface, Mumbai 400 030 With National Association for the Blind.
Patna AOF-Anterjyoti Computer Centre, Kumhrar, Patna - 800020 - With
Anterjyoti Netraheen Balika Vidyalaya.
Hyderabad AOF-DFFB Centre for Excellence, Mayur Marg, Begumpet,
Hyderabad - 500016 - With Devnar Foundation for the Blind.
Pune - AOFPune Blind School Computer Centre, North Main Road, Koregaon
Park, Pune - 411001 With Poona School & Home For the Blind Trust.
Trivandrum AOF-NAB Computer Centre, at Manjadivila Road, Plamood,
Trivandrum - 695003 - With National Association for the Blind.
Madurai - AOF-IAB Centre for Excellence, Sundarajanpatti, Arumbanour Post With Indian Association for the Blind.
Gurgaon AOF-AICB Centre for Excellence, Village Behrampur, Gurgaon - With
All India Confederation of the Blind.
Raipur - AOFNAB Computer Center for Excellence, Heerapur With National
Association for the Blind.

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Guwahati AOF-GBS Computer Centre, Basistha, Guwahati 781029 - With


Guwahati Blind School.
Ludhiana AOF NAB Centre for Excellence, Panchayat Bhavan, Room No.2,
Zila Parishad, Civil Lines, Ludhiana.
It is our delight that every year more than 3000 students are now getting quality computer
education at our centers.
AOF has also helped AICB (Delhi) set up a vocational training centre at Rohini, where
intensive training is imparted to post-graduate students over a 12-month period. Here,
students train on computer and internet usage, English language & Personality
Development, Technical writing, as well as the skill of operating a computer system
while on the phone with customers.

One by One Campaign for Children


One By One is Amways Global Campaign for Children. In each of the 80 countries
and territories that Amway is present it takes up and supports these Children of Hope.
In India, this work is carried out under the banner of Amway Opportunity Foundation
(AOF) a registered non profit organization. All Amway employees and distributors are
volunteers of AOF.

Amway Opportunity Foundation (AOF )


Amway Opportunity Foundation (AOF) a registered non-profit organisation which looks
after Amway Indias Corporate Social Responsibility (CSR). Amway distributors are also
volunteers of AOF and they participate in AOF activities. AOF currently has two projects
under its ambit: National Project for the Blind and National Project for Children (Project
Sunrise). Globally, Amways CSR campaign is known as the One By One Campaign for
Children. A Corporate Social Responsibility Initiative of Indias Leading Direct Selling
FMCG Company.Former President, Dr Abdul Kalam, has recently been quoted saying
that instead of addressing (them as) street children, it would be better to refer to them as
children of hope. If we stretch this definition a bit, that is what we are all about
reaching out to all Children of Hope in the best manner at our disposal:

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PRODUCTS
Home Care
Amways Home Care Brands provide complete cleaning systems that fit with everyones
needs. Their versatile, effective product systems offer the features and benefits consumers
want. No matter what your lifestyle, Amways Home Care products make light work of
your cleaning chores.

Laundry Care
In the year 1959, Amway launched its first product, LOC, a multipurpose cleaner. This
product revolutionsed the life of a homeowner by replacing as many as 4 - 5 different
surface cleaners with a single, efficient and cost effective cleaner. This was the first
household cleaner, which contained bio-degradable surfactants and had a concentrated
formula so as to reduce the use of packaging material

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ARTISTRY
Artistry is one of the worlds top five largest-selling Premium Skincare brands. Source
Euro monitor International Limited Beauty & Personal Care 2011, premium cosmetics &
premium skincare category and sub category; global 2010 value RSP.

DYNAMITE
Dynamite's range of male grooming products, formulated internationally is designed to
deliver the ultimate grooming experience.

GLISTER
Glister Toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent that offers
seven benefits.

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

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

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

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

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LOC
LOC High Suds is a multipurpose household liquid cleaner.

DISH DROPS
Dish Drops is a concentrated hand dishwashing liquid with a powerful "Triadic
Detergency System".

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Gift Catalogue Coreline


Gift Catalogue Coreline 2012

Gift Catalogue Non Coreline


In order to ensure that maximum number of ABOs is able to buy the Catalogue
products, we have decided to limit the quantity of each Non Coreline Item that an ABO
can order

Nutrition and Wellness


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

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ENVIRONMENT

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POWERFULLY GREEN FOR A SAFER CLEAN


Powered by BioQuest Formulatm technology, the new AMWAY HOME range of
products contain active ingredients that are derived from natural sourceshese ingredients
provide powerful cleaning performance while remaining gentle enough to use around
your family and the environment.AMWAY Home offers a complete line of
environmentally sensitive products to better manage household cleaning tasks.
Specially formulated, versatile products make your whole house shine.
Customisable formulas to control cleaning strength.

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Design for the Environment (DFE)


Recognized for Safer Chemistry
Amway Home products carry the Design for the Environment label The U.S. EPAs
Design for the Environment programmed promotes high-performing products that are at
the same time safer for people and the environment. When the logo appears on a product,
it means EPAs team of scientists has screened every ingredient in the product for
potential health and environmental effects. the product manufacturer has invested heavily
in R&D and formulations to ensure that their ingredients and finished products line up on
the green end of the health and environment spectrum.
The product is safer for people and the planet. Excluding sa8 prewash, sa8 fabric
softener, sa8 liquid, dish drops scrub buds, l.o.c.tm metal cleaner, and green meadows.

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DISASTER RELIEF

ENVIRONMENT

When natural disasters strike around the


world, AMWAY is prepared to bring
immediate as well as long term assistance to
those in need. Recently, AMWAY launched
a new programmer to help children in Haiti.

WORKPLACE

Our policies range from reducing the


impact of our operations on the
environment to training and motivating
employees in taking personal accountability
for a safer, greener workplace.

GRANTS

We are a company that believes every


person can make a difference. To make our
beliefs a reality, we empower our
employees to reach goals, fulfill ambitions
and contribute to the communities where we
operate. As a leading global health and
beauty company, AMWAY ensures that
employees have access to the resources they
need to maintain a healthy lifestyle.

Our grants are focused on making a real


and lasting difference in the lives of
children through the AMWAY One by One
Campaign for Children. Learn more about
our guidelines, process and how to submit a
request.

CERTIFICATIONS

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Champions of the Community Partners

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ACHIEVEMENT
Awards and Recognition
Aaj Tak, one of Indias leading news channels and part of the Living Media (India
Today) Group presented Aaj Tak CARE Award, to Amway India in 2012, for its
initiatives taken in the field of Education. CMO Asia presented Asias Best CSR
Practices Award, to Amway India in 2012, for its initiatives taken in the field of
Education in 2012. Presented the Millenium Outstanding Service Award 2000, by the All
India Confederation for the Blind (AICB), in recognition for work carried out for the
visually challenged. The Indian Red Cross Society, Orissa awarded AOF a memento &
certificate for conducting a mega-Blood Donation camp of 816 units on 4th May, 2003.
The Surat Raktdaan Kendra felicitated Amway India at their annual function on 5th Oct,
2003, for the largest number of donors at a Blood Donation Camp (BDC) held by any
financial and commercial institution and industry. The Mayor of Surat - Snehlata
Chouhan - presented a trophy and a certificate of appreciation. Amway also received the
Hajee Sulaiman Omar Memorial Ever Rolling Shield, by the Madurai Medical College.
Amway was the ONLY corporate entity to conduct a BDC on such a scale - rest of the
camps are held by educational institutions. Presented an award by the World Blind Union
(WBU), for sterling contribution to improve and elevate the quality of life of visually
impaired children', at a function in Delhi on Dec 2nd 2004. The award included a citation
and a large-sized statue of Saraswati, the Goddess of Knowledge, was presented by the Lt
Governor of Delhi, Shri Vijai Kapoor. WBU is an apex body for the visually impaired
that enjoys consultative status with the United Nations. As a corporate leader in
promoting environmental awareness and education, Amway received the prestigious
United Nations Environment Programme Achievement Award in 1989.Corporate
Citizenship Award - On November 08, 2005, the United States Chamber of Commerce
awarded Alticor with the Corporate Citizenship Award in the category of International
Community Service for the One by One Campaign for Children
A SOLID FOUNDATION
Rich DeVos and Jay Van Andel's friendship actually began with a business proposition,
when Rich struck a deal with Jay for a ride to school for 25 cents a week. After high
school they entered the military, but they planned to start a business together after
separate tours of duty. A friendship formed and became a business relationship that has
lasted to this day.
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THE EARLY YEARS


Amway quickly outgrew its original facilities in the basements of Rich DeVos's and Jay
Van Andel's homes. In its first full year of business, Amway's sales were more than half a
million dollars.
THE DECADE OF GROWTH
As vowed by Jay Van Andel the night of the 1969 disaster, Amway rebuilt the aerosol
plant and went on. The '70s began with sales of more than $100 million at estimated
retail, and kept going strong. After a lengthy investigation, the FTC verified that Amway
is a genuine business opportunity and not a "pyramid."
THE BILLION-DOLLAR DECADE
The '80s will be remembered for the first Billion Dollar Year at estimated retail in 1980.
Building expansion at Amway World Headquarters continued at breakneck speed as
Amway scrambled to keep pace with demand, opening its new cosmetics plant in Ada,
Michigan.
THE NEXT GENERATION
As carefully planned by Rich and Jay, the second generation Van Andel and DeVos
families took the helm during the ' 90s. The Policy Board was formed and Steve Van
Andel and Dick DeVos succeeded their fathers as Chairman and President.

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CHAPTER -4

FUNCTIONAL AREA

1) HUMAN RESOURCE MANAGEMENT


HR MANAGER

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Enjoy the latest Salary Survey results courtesy of HR Partners. This issue we focus on the
HR Manager.Median Base salary ranges in Sydney are highest at $106,000, second is
Melbourne with $103,000, narrowly edging out Brisbane where the Median Base for HR
Managers is a beautifully round $100,000.When the details are analysed further, access to
Bonus payments is strikingly high among this layer of the HR Pyramid - 53% in Sydney,
46% in Melbourne and an impressive 56% in Brisbane have access to additional rem
through an at risk component. Free car parking and /or car allowances are also relatively
high compared with other workers - car allowances being available to 16% of employees
in Melbourne and Sydney and 20% in Brisbane - mirroring free parking access and
eligibility for participation in stock options which are marginally more available in
Brisbane. Our survey revealed that 14% of HR Managers completing the survey in
Brisbane have access to stock options compared with only 7% in Melbourne. It would
appear that whereas Brisbane perhaps does not enjoy the highest Base Rem it does seem
to provide HR Professionals with slightly greater access to a more varied menu of reward
mechanisms.

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Culture of Innovation
Our ambitious growth strategies involve participation of every employee. We encourage
our employees for the generation and adoption of new/different ideas to improve business
efficiency, productivity and customer experience.
Performance Management System
We have a strong value based Performance management process wherein we recognize
significant contributions made by our associates in an objective and transparent manner
basis demonstrated competency levels.
Talent Management
They strongly drive Talent Management process with an objective of building a strong
Leadership pipeline.
Pay for Performance
We foster a culture of Pay-for-performance to align employees goal with the business
objectives. It helps to keep our employees engaged and motivated by understanding how
their daily activities help drive overall Business health
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Employee Development
Our aim clearly has been to have an integrated framework for continuous learning built
around a number of focussed functional and behavioral development initiatives for our
associates across grades.
Reward & Recognition Programme
We believe in weaving a culture of belongingness and creating a sense of
accomplishment by recognizing & celebrating each others endeavor and success.
Employee Engagement Surveys
We firmly believe in Employee First culture and hence their opinion and assessment
shapes our strategy to make Amway an even better global organization.
Employee Communications
We at Amway have a unique way of connecting & celebrating the essence of life along
with work. We have Sampark for organizing employee engagement activities for not
just associates but also their families.
Work Life Balance
We at Amway always promote a culture where an individual is able to prioritize properly
between career on one hand and leisure, pleasure, family and spiritual development on
the other.

aining
&
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Global Succession Management at Amway: Moving Away From Being Another


Replacement Planning HR Bureaucracy
Dev The management of leadership succession in many organizations is often at best
treated as another check the box exercise line leaders go through to get HR off their
backs. Worse, it is sometimes a purely mechanical process that allows leaders to feel
they have fulfilled their obligations of treating people as the most important asset
because they have spent time identifying a large group of their people as high potentials
and then filing those names away for another year.
At Amway, a privately held $7 billion global corporation headquartered in Ada,
Michigan, succession management is ultimately about the intentional (i.e. explicit as
opposed to informal or opportunistic) development of those individuals who are viewed
as having not only the potential and ability, but also the aspiration to want to move up
successive levels of leadership. This does not mean that the development of everyone else
is ignored or less important..
Key Differentiators
One of the key differentiators to Amways Global Succession Management Process is the
fact that it has been designed not to be just a simple leadership replacement exercise
where it is nothing more than an identification of specific individuals as possible
replacements for specific positions. In a replacement planning exercise, there is usually
minimal emphasis placed on development, which in the best case is left in the hands of
the incumbent leader who may or may not have a motivation for developing someone to
take over his or her job. Also, because it is position-focused, when a leadership vacancy
becomes available an identified potential replacement is simply viewed as nothing more
than another possible candidate together with other external applicants. No consideration
is given to how the leadership opportunity can be a developmental experience for the
internal candidate, which usually leads to the favoring of the external candidate and in the
process destroying the credibility of the companys stated commitment to internal
development.
AQuickOverview
The process of Succession Management at Amway can be divided into three broad
phases. It begins with an examination of a divisions strategies with a corresponding
examination of the implications for future leadership skills and attributes that will be
needed to lead the organization. Our Global Leadership Competencies model as well as
the Amway Leadership Passages model is typically used as the basis for this part of the
process. This is then followed by an open discussion of high potential candidates amongst
the divisions senior leadership team.
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39

FINANCIAL MANAGEMENT

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40

SUMMARY
30/06/2012

OF

KEY

FINANCIAL

INDIVIDUAL PERIOD

INFORMATION

CUMULATIVE PERIOD

CURREN PRECEDING
CURRENT YEARPRECEDING
T
YEARYEAR
TO DATE
YEAR
QUARTE CORRESPONDIN
CORRESPON
R
G
DING
QUARTER
PERIOD
30/06/20130/06/2011
2

30/06/2012

30/06/2011

$$'000

$$'000

$$'000

$$'000

1Revenue

188,684

169,162

367,935

341,925

2Profit/(loss)
before tax

34,160

25,645

63,179

53,013

3Profit/(loss) 25,320
for the period

19,014

46,881

39,287

4Profit/(loss) 25,286
attributable
to
ordinary
equity
holders of the
parent

18,996

46,878

39,280

5Basic
15.40
earnings/
(loss)
per
share
(Subunit)

11.57

28.52

23.90

6Proposed/Dec 10.00
lared
dividend per
share
(Subunit)

9.00

20.00

18.00

AS AT END OF CURRENTAS

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41

AT

PRECEDING

QUARTER

FINANCIAL YEAR END

7Net
assets1.2700
per
share
attributable
to
ordinary
equity
holders of the
parent ($$)

1.1700

PRODUCTION MANAGEMENT
Ada Township Amway will unveil a new $24 million advanced food
manufacturing facility on the company's Fulton site this morning.The 120,000-squarefoot facility will produce the company's top-selling Nutrilite Protein powder. It includes
new equipment and will allow production to shift from a plant in Lakeview, Calif., which
is expected to be phased out next year. Nutrilite, the company's nutrition line of vitamins,
powdered drinks, snacks and bars, accounted for more than 40 percent of the company's
overall 2010 sales which billion. The company plans to hire about 50 workers to staff the
plant. Most employees will work three 12.5 hour shifts a week, and be cross-trained to
operate several types of equipment. The Ada plant will be the first Amway plant to
introduce a new production system which is designed to improve efficiency and quality
surance.Trial runs will begin at the end of the month, with production slated launch in
May. The facility is expected to be fully operational by spring 2013.he new production
facility is housed in a three-story addition built onto the companys mile-long
headquarters complex on Fulton Street in Ada.It is Amway's first consumable goods plant
in its home state, and includes a $1 million quality assurance ab.Amway continues to
make strong investments in manufacturing so we can bring the very best quality of
products to consumers and our distributors all over the world, said Lauren Walker, vice
president of Ada operations, in a statement. This is evident not only in our investment in
infrastructure but also in our investment in human capital. Many of the employees at this
plant will have had six months of skill development and team building before the first
batch of product leaves this facility.

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42

Manufacturing
Direct selling FMCG company Amway India is looking to set up its own
manufacturing facility in Tamil Nadu. The proposed project would be the companys first
production facility in the country.It is on the cards. We are mulling over establishing a
facility either in Gujarat or Tamil Nadu. The likelihood of the facility coming up in Tamil
Nadu seems greater. The estimated outlay is Rs 400 crore, Mr Sundeep Sengupta, HeadCorporate Communications and Social Responsibility, Amway India, said.With the
establishment of the facility, Tamil Nadu may become a hub for us in future, he added.
He, however, declined to share more information on the proposed project, by simply
stating it is still early.Despite not owning a production facility till date, Amway has
successfully managed to source 97 per cent of its products sold here manufactured within
the country through seven third party contract manufacturers.The company recently
tripled the production capacities at its vendor facility at Baddi in Himachal Pradesh by
commissioning four new production lines, taking the total investment in Baddi to Rs 105
crore.
The company has invested more than Rs 151 crore in India, and has 135 offices and 55
city warehouses. It clocked a turnover of Rs 2,130 crore in 2011, up from Rs 1,790 crore
in the previous year.Meanwhile; Amway had opened its second office in Coimbatore on
Tuesday, taking the total office network in the state to 22 and the number of warehouses
to six.

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43

The occasion also marked the launch of specialised products from Amways health and
beauty segment Nutrilite Healthy Ageing range and Attitude Whitening cream, Mr
Sengupta said.Coimbatore, according to Mr Siva Kumar, Area Manager, Amway India,
has been among the top three markets for the company in Tamil Nadu.To Keep up with
high quality standard of our products:There are 65 special laboratories and over 700
scientists responsible for research & development and testing of the products.
home care and home technology products as well as other services.Amway has obtained
over 900 patents and 800 patents pending.Amway has stopped using CFC for its aerosols
since 1978 to protect the environment.All Amway products have used concentrated
formulas in order to get more value for money. The solid wastes produced from Amway
products are 50-70% less than those from other brands.The world's first multi-vitamin
and multi-mineral food supplement was developed by Mr. Carl F. Rehnborg for
Nutrilite in 1934.Mr. Rehnborg was a pioneer in studying the phytofactors of plants.
His advocation of the Phytofactors as become Nutrilites registered brand name.Based on
an independent review in 2010 by international market research firm Euromonitor
International Limited, Nutrilite is the only global vitamin and mineral brand to grow,
harvest and process plants on their own certified organic farms.

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44

MARKETING MANAGEMENT
Amways Glister toothpaste unknown to people outside the world of direct sellers and
their clients or customers is set to cross Rs 115 crore in sales by the end of this calendar
year (Amway follows a January to December accounting year). Another brand, called
Artistry, which is a high-end cosmetics range imported from the US headquarters of the
company, is expected to cross Rs 110 crore this year. Amways health supplement, Nutrilite
Daily, is already a Rs 200-crore brand, while powder is likely to touch nearly Rs 300 crore
in sales by the end of 2012.

And, there are more products that the direct marketing major, which closed the 2011
calendar year with sales of Rs 2,130 crore, is counting on as future prospects. This
includes liquid laundry detergent brand SA8 Gelzyme and Nutrilite Cal Mag D, both of

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45

which, says William Pickney, managing director and chief executive officer, Amway
India, have the potential of touching the Rs 100-crore-mark in the near future. Given that
the company, through its band of over 500,000 distributors, has been selling its products
in India for 14 years now, experts say it is no mean feat that Amway is the leading player
among FMCG direct sellers at least in the country. So, how has the largest direct
marketing company in the FMCG space cracked the code at a time when competition in
the category as a whole has only intensified.
Both domestic and international FMCG companies have in the last few years pushed
distribution as well as penetration, increased the number of products in their portfolio,
scanned the Indian marketplace for new trends that they can capitalize on and increased
their advertising budgets - all in the hope of increasing their presence in the worlds
second-largest consumption market. Most are seeing success too, with FMCG companies
clocking an average 15 per cent-plus top line growth per annum.According to sector
analysts, the roughly Rs 170,000-crore domestic FMCG industry grew at a compound
annual growth rate of about 11 per cent between 2000 and 2010. But, in the current
decade, this growth has actually increased 12 to 17 per cent, according to a Booz &
Company study. By 2020, the study says, the market size is estimated to more than
double to between Rs 400,000 crore and Rs 620,000 crore. Contributors to this growth
will be increasing consumption led by rise in incomes, changing lifestyles and
demographics. With nearly 60 per cent of Indias population below the age of 30, most
companies realize that their market lies here. Experts say that the consumption boom has
not escaped direct sellers, too, who have the advantage of personalized selling that
conventional FMCG companies dont. And, if the product is good, the possibility that
there will be repeat purchases will be higher, they say.
Pickney admits that much of the raw materials going into its 131 products in India, across
categories such as personal care, home care, nutrition & wellness and beauty is imported.
This has allowed it to keep product quality consistent with what exists internationally in
its portfolio. At the same time, however, lack of local sourcing has meant that Amway
products - outside of its great value range - are all steeply priced. For instance, a 100 gm
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46

tube of Glister toothpaste is priced at over Rs 100. Regular toothpaste brands available on
retail store shelves, on the other hand, are priced at half the price at Rs 35-40 for the
same size. The direct sellers nutrition & wellness range, which gives it 55 per cent of its
revenues in India, is priced anywhere between Rs 650 and Rs 3,200. Personal care and
home give Amway 35 per cent of its revenues) are priced between Rs 100 and Rs 700,
while beauty products (which contribute 10 per cent to top line) are priced between Rs
100 and Rs 2,500.With such high-priced products then, how has Amway ensured repeat
purchases? Persons in the know say that it has to do with its relentless pursuit of quality.
Whether it is the sales pitch that Amway sellers make or quality control measures
implemented at its contract manufacturing units in India, Amway has emphasised the
aspect of quality all the time, says Pratichee Kapoor, associate vice-president,
Technopak Advisors, who has studied the direct marketing industry closely in India.The
company has also invested heavily in advertising over the last few years building what
Kapoor calls the Amway brand. In the process, consumers have come to identify the
company with good, stolid products.But does the multi-level-marketing model coming
under i

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47

Developing a strategy

A strategy is an organizational plan. Implementing


a strategy involves putting that plan into action. The strategy enables an organisation to
turn its values into action. Strategies are designed for the whole of an organisation.
Strategies are principally created by senior managers in an organisation. However,
effective strategies involve discussion and communication with a range of interested
parties. The views of IBOs are thus very important in creating Amway's strategies.
Each one of these stakeholders has particular concerns.

Amway takes corporate social responsibility seriously through its partnership with
UNICEF. The two key partners in this relationship are UNICEF and Amway. Amway and
UNICEF work in and for communities across the globe. They are therefore natural
partners

TEAM BUILDING MARKETING

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48

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49

Amway's strategies for corporate social responsibility


are cascaded through the organisation.Amway's global strategy involves creating
responsible plans that make a difference in everyone's lives. However, the strategy is
flexible. In other words in deciding on a cause that IBOs could partner it was essential to
research their views.A key element of this was research into a cause that would motivate
them - the research showed that the solution was a cause that helped children. There was
a clear fit between Amway's aimsto help children and UNICEF's 'Immunisation Plus'
programmer for children.From the outset, Amway set out some clear objectives for its
strategy. These were to: build loyalty and pride among IBOs and employees. Enhance
Amway's reputation as a caring organisationmake a real difference to human lives. Every
year 1.7 million children worldwide die from avoidable infectious diseases. This situation
is especially grave for the world's poorest countries and poses a threat to the lives and
well-being of children and families. Many children could still be alive if they had been
vaccinated.

For under 12 a child can be vaccinated against


these diseases and has a fighting chance to reach adulthood. Contributing to UNICEF's
world child immunisation programmer therefore is a fitting focus for the activities of
Amway UK and its IBOs. To date, Amway (UK) Ltd, its IBOs and employees have raised
over 80,000 for UNICEF. Over 10,000 was raised for the Tsunami relief efforts alone.
The UK initiative is part of a pan-European fundraising campaign for children. It
recognizes the importance of building good working relationships with UNICEF in each
market in order to roll-out fundraising programmes to Amway's IBOs and their
customers.

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50

In 2001 Amway Europe's partnership with


UNICEF became part of the Cause Strategy. In 2005 Amway UK's contribution to the
partnership was deepened through the development of a corporate partnership. This
Corporate Partnership is a closer longer term relationship which benefits both parties.
Working together the two parties raise money for UNICEF. At the same time this helps to
build Amway's reputation.

Meeting stakeholder needs

A stakeholder is a group or individual who has an


interest in the decisions made by a business. Amway's CSR strategy has been developed
with the interests of stakeholders in mind.

INFORMATION TECHNOLOGY
Page
51

Greg Lang leads the strategy, planning, and


operational

aspects

of

the

systems

and

applications supporting the Amway North


American business. Lang has progressed in
multiple leadership roles during his more than
18 years with the company. Prior to his move to
Amway, he was the senior manager of multiple
teams driving development of systems supporting Relationship Management, Business
Intelligence, Worldwide Sales Tracking, Global Line of Sponsorship, and Worldwide
Bonus within the Global Sales, Marketing, and Forecasting areas of the business.We
finally got a photo of the multi-million dollar new Amway Center, a project of the
Orlando Magic and City of Orlando whose 1,100 digital screens are managed by Harris
Corporation, an international communications and information technology company. The
Amway Center is being touted as the most technologically advanced arena facility in
North America.

Opened Oct. 1 and the home of the Orlando Heat basketball team, the venue also hosts
concerts and family entertainment. It also has the tallest, high-definition video board in
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52

an NBA venue, the centre-hung video scoreboard by Daktronics includes more than 9
million individual LEDs used in 18 displays.

A Break-Away compensation plan. Amway has helped over 3 million people start on
their path to success. They are attracted by the unlimited potential of the opportunity,
the support of a corporation with 50 years of experience and compassion, a global
community ready to offer support, and a premier compensation plan. The Amway
Independent Business Owners Compensation Plan rewards you for selling products
and for sponsoring others as Independent Business Owners who do the same. You
earn income from: Retail markup on product sales to customers. Monthly
performance bonuses ranging from 3% to 25% of business volume depending on your
monthly productivity. Monthly and annual leadership bonuses and other cash
awards and business incentives based on group performance.You can start your
business for as little as $62.

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53

CHAPTER-5

LEARNING

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54

LEARNING
In this project I learned how to handle computer
How to collect data.
How to use internet and get various information from internet.
Also I have motivated from this project.
Also I have get information about various types of Amway products.
I learned Marketing Strategy.
In this project I have understand various types of distributer.
Learning part is our life is most important because a man when getting our
personality and achieve our goal that time I have getting a knowledge about
our developing so when I am learn so I am success our goal and aim.
They organization people every time guidance me you are a capable student to
achieve your goal and aim.
I feel their product seller having a good skill and behavior to sale our product.
I learned face to face communication in the new launching product.
They are various type of product in the Amway to purchase the other
companies. Product.
I looked so many products to share the distributer from amway.
I learned the amway which type of sale by the product they are technical skill
and convenience to customer and distributors.
And learning part is our life is most important because a man when getting our
personality and achieve our goal that time I have getting a knowledge about
our developing so when I am learn so I am success our goal and aim.

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55

CHAPTER-6

CONCLUSION

Conclusion
Page
56

As per my observation I have concluded that, the project is very


important for MBA students.
I have learned many new things from this project which are very helpful to me for
developing my personality and for increasing my grasping power.
With this project I have learned various things that are:
Relationship of customer and company is very satisfactory because company always
takes feedback from customer.
The environment of company is suitable for employees, manager, distributor and
customers.
The management of company is very inspirational to all the employees because they
always try to motivate their employees by giving extra bonus, incentive etc.
The financial position of company is very good because the demand for companys
products is increased the day by day.
Companys human resource department is very good and they provide the facilities for
distributors and customers. Company organizes the event for new product launching and
other product available for customer also.
Benefits that I have got from the Project:
I have collected data from internet.
I learned organization structure.
I have improved my typing speed.
I learned information technology process.
I got information of various types of products.
I have understood various types of distributer.
I got information of human resource facility to employees.
I have understood various types of social responsibility.

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57

CHAPTER-7

REFERENCE

Reference
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58

Website:-

www.amway.com
www.amwayindia.in
www.amway.co.in
All Product Hand Book
Research Methodology Book
By Mr.C.R Kothari
Email.Id:info@amwaygmail.com
amway@facebook.com

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