AMITY BUSINESS SCHOOL

NOIDA

AMITY UNIVERSITY
----------UTTAR PRADESH----------

BUSINESS ENVIRONMENT &

STRATEGIC ANALYSIS
REPORT & CASE
OF
AMWAY INDIA LTD.
 CONTENTS

COMPANY PROFILE

COMPANY’S HISTORY

BUSINESS PORTFOLIO

MARKETING PLAN

MARKETING STRATEGIES

MARKETING MIXS

SWOT ANALYSIS

ANSOFF MATRIX

BCG MATRIX
 COMPANY PROFILE

Amway Corporation

Amway is more than an income opportunity or a company or products. It’s

about putting people in control of their lives. It’s about connecting people to
others who respect them, who share their goals and aspirations. It’s about
supporting people in their achievements.

Amway is about people connecting people to a better way of life.

Amway Corporation is one of the world's largest direct selling companies.

Originally founded by Jay Van Andel and Rich DeVos, Amway operates in
more than 88 countries and territories in Asia, Africa, Europe and the
Americas. Amway products and services are marketed through independent
business owners worldwide. Amway is a wholly owned subsidiary of Alticor
Inc.

ORGANIZATIONAL STRUCTURE

PEOPLE

Amway has more than 6000 employees worldwide. In addition, Amway has
more than 3.6 million Independent Business Owners (IBOs) around the
world. In China, Amway products are sold by Amway sales representatives.

PRODUCTS AND SERVICES

Over 450 unique, high-quality products carry the Amway name in the areas
of nutrition, wellness, beauty and home, as well as commercial products and
a variety of services. In addition, Amway independent business owners in
selected markets sell additional brand-name goods through local
merchandise catalogues, plus a variety of services and educational products.
All products are backed by a customer satisfaction guarantee
GOVERNANCE AND MANAGEMANT

Doug DeVos is the President of Amway and Steve Van Andel is the
chairman.

FACILITIES

Amway operates out of Alticor's world headquarters located at 7575 Fulton

Street East, Ada, Michigan 49355, USA.

COMMUNITY SERVICES

Amway, its Independent Business Owners and employees are involved in

improving the communities in which they do business. Specific and current
information is available upon request.

AFFILIATIONS

Amway is a prominent and active member of the regional and national direct
selling associations worldwide. Doug DeVos is a member of the U.S. Direct
Selling Association Board of Directors. Former Alticor President Dick
DeVos is the current Chairman of the World Federation of Direct Selling
Associations (WFDSA). Globally, direct selling is an industry with
approximately $80 billion in sales and more than 30 million salespeople.
 COMPANY 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$6.4 billion
(September’04 - August’05) 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.

AWARDS

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.

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. Distributors witnessed a similar trend, with the
second generation of many distributor families taking on important
leadership roles.,

NEW HORIZONS
In 2000, Amway prepared for a new century and a new exciting era.

Almost 50 years after Amway began, the DeVos and Van Andel families
created a new structure to meet the challenges of this new century. A parent
company, Alticor, was established with subsidiaries Amway, Quixtar and
Access Business Group—the latter to consolidate manufacturing and
distribution for the enterprise. At the helm of Alticor are Steve Van Andel
(Chairman) and Doug DeVos (President), jointly holding the Office of the
Chief Executive. Today each area of the business, including Amway, has the
freedom to build on its strengths.

Amway continues to be a leading company in the direct selling industry. Its

fundamental principles—freedom, family, hope and reward—hold as true
today as they did in the very beginning.
 BUSINESS PORTFOLIO

NUTRILITE® is the world’s leading brand of vitamin, mineral, and

dietary supplements, grown harvested, and processed on its own
certified organic farms.

ARTISTRY® is one of the world’s top five largest-selling prestige brands

of facial skin care and colour cosmetics.

All products of Attitude contains Skin Vitalising Complex that synergistically

combine to cleanse, Replenish & Moisturise the skin making it soft & supple.

•
 Amway XL Energy Drinks are a great tasting energizer drink to help you boost
your mental and physical alertness. It is low on calorie and high on taste.

• Dynamite's range of male grooming products, formulated

internationally is designed to deliver the ultimate grooming experience.

Glister Toothpaste is a revolutionary Multi-Action Toothpaste with Sylodent

that offers seven benefits.

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

Satinique Advanced Range with unique Ceramide Infusion System uses

nature's own renewing technology to rejuvenate, strengthen and protect your
hair.
 •

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

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

LOC High Suds is a multipurpose household liquid cleaner.

Dish Drops is a concentrated hand dishwashing liquid with a powerful "Triadic

Detergency System".

Great Value Product Range offers you Great Quality, Great Performance, Great Price
and a Money Back Guarantee!

• Gift Catalogue 2008 consists of Amway Coreline & Non Coreline Products
 MARKETING PLAN

The Amway Sales and Marketing Plan is a low risk, low start-up
cost business opportunity that is open to everyone. It allows you to
build your business through retailing products and sponsoring other
people who, in turn, can retail products and offer the business
opportunity to others. By passing your sales and marketing
knowledge to your developing team, you not only build your own
business network but also enable others to build one of their own.

The Amway Sales and Marketing Plan has been operating for over
40 years and is available in over 80 countries and territories around
the globe.

The core of the Amway Sales and Marketing Plan's income

opportunity is the sale of quality AMWAY products to retail
customers. As your Amway business grows, the rewards you earn
grow in proportion. The Amway Sales and Marketing Plan does not
compensate anybody for simply recruiting others as Amway Business
Owners.

VISION
Inspiring people to 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.

Our 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

We 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.

Trust

Building reliability and dependability for self by 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.

MARKETING STRATEGIES

MARKET SEGMENTATION & TARGETING-

Some companies will aim their products at the entire population, others will
try to differentiate. Splitting the whole market up into various groups is
known as market segmentation. Although it was recognized that groups
such as children, men and teenagers are likely to become targets in the
future.

Example-

Satinique shampoo range was aimed at adult females between 25 and 44

years of age.

Extensive market research into this segment shows that women are often
looking for new products and technologies that will provide a more
satisfying hair care experience. From the data collected, it is possible to
build up a typical consumer profile to describe current buying behaviour.

A typical consumer from this target group:

• is probably a professional woman

• is very hair conscious and always wants to look her best

• wants professional, salon quality products

• buys hair care products from shops and hairdressing salons

• relies on recommendations from friends when making hair care

purchase decisions
 • Makes buying decisions based on clinical evidence.

POSITIONING-

In order to make this strategy work, it was essential to think very carefully
about the position that the new product would take in the market-place. The
chosen position was to be:

'A revolutionary product system that provides the ultimate in customer

convenience and control by automatically diluting and delivering the
cleaning concentrates with water, providing customized cleaning at your
fingertips, according to the customer' needs.'

The product's success would depend, to a certain extent, on the ability of

Amway's marketing department to get this message across to distributors
and ultimately to consumers

MARKETING MIX

PRODUCT MIX

At present, Amway India offers over 105 products in four categories. They
are Personal care category, Home Care category, Nutrition & Wellness
category and Cosmetics category.

With the exception of Cosmetics range (Artistry) and some products in

Nutrition and Wellness category, all Amway India products and bottles are
manufactured in India.
The products match Amway’s global quality standards. They carry a tamper-
proof seal and a ‘100% Money Back Guarantee'. If not completely satisfied
with the product, the consumer can return it for a refund. Amway products
are environment friendly, and are not tested on animals. Amway encourages
the return of its used product bottles for re-cycling and to prevent their
misuse.

Personal Care
Amway Personal Care products have built global reputation based on their world-class
research and development. These products are designed to deliver the ultimate grooming
experience and the confidence that lasts long.

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

Nutrition and Wellness

NUTRILITE® is the world’s leading brand of vitamin, mineral, and dietary supplements, grown
harvested, and processed on its own certified organic farms.
Cosmetics
Our skin is the outward appearance of who or what we are , or what we would like
to be. But it is more than a simple cover. It is the largest organ of our body - a
complex and dynamic system that is vital to our health and reflects it as well.

PRICE MIX

PRODUCT PRICE (INR)

NUTRITION &WELLNESS
Nutrilite Daily - 60 Tablets 1039.00
NUTRILITE PROTEIN POWDER 1609.00
500G
NUTRILITE PROTEIN POWDER 779.00
200G
NUTRILITE DAILY - 120 TABLETS 1749.00
NUTRILITE KIDS BANANA DRINK 819.00
NUTRILITE KIDS CHOCOLATE 819.00
DRINK 500GM
NUTRILITE KIDS CHEWABLE 1029.00
NUTRILITE NATURAL B 669.00
NUTRILITE IRON FOLIC - 90 679.00
TABLETS
NUTRILITE CAL MAG 519.00
NUTRILITE BIO C 999.00
NUTRILITE PARSELENIUM E 999.00
COSMETICS
ARTISTRY CLARIFYING FOAMING 1029.00
CLEANSER
ARTISTRY MOISTURE RICH 1029.00
VITALISING CLEANSER

PLACE MIX
 PROMOTION MIX
Promotional activities

Promotional activities of AMWAY include:

• Events or trade fairs help to launch a product to a wide audience.

Events may be business to consumer (B2C) whereas trade fairs are
business to business (B2B).
• Direct mail can reach a large number of people but is not easy to
target specific consumers cost-effectively.
• Public relations (PR) includes the different ways a business can
communicate with its stakeholders, through, for example, newspaper
press releases. Other PR activities include sponsorship of high profile
events like Formula 1 or the World Cup, as well as donations to or
participation in charity events.
• Branding – a strong and consistent brand identity differentiates the
product and helps consumers to understand and trust the product. This
aims to keep consumers buying the product long-term.
• Sales promotions, for example competitions or sampling, encourage
consumers to buy products in the short-term
• Packaging-One of the most important challenges for Amway's team of
experts was to develop the appropriate packaging for the new
Satinique products. It was important to create a brand image for the
total product range. The image created would reflect a great deal
about the product and its consumers. This is known as positioning the
product within the market. Packaging can be crucial to the success of
a new product and Amway went to great lengths to ensure that
Satinique's packaging and design appealed to the target audience.
 SWOT ANALYSIS OF AMWAY

We can know business’s overall strategic position by using a SWOT

analysis. SWOT is an acronym which stands for:

 Strengths – the internal elements of the business that contribute to

improvement and growth.

• Brand Image
• Market share
• Vast network(operated in 63 countries)
• environmental-friendly

 Weaknesses – the attributes that will hinder a business or make it

vulnerable to failure.

• Highly decentralized
 • Less outlets(less distribution network)
• Highly expensive
• Lack of brand awareness

 Opportunities – the external conditions that could enable future

growth

• Availability of applications for consumers & business

use.

Threats – the external factors which could negatively affect the

business.

• Strong competitor
• competitors launching cheaper products
• Change in government rules & regulations.

Ansoff's product/market matrix

Ansoff's product/market matrix is an accepted way of identifying and
categorising market and product developments and opportunities. Amway
makes good use of the technique.

The matrix identifies various strategies open to organisations, and splits

them into four categories. For example, when selling existing products to
existing markets, organisations can look to improve their penetration of that
market, and so gain a larger market share.

Where a company introduces new products into its existing markets, this
may give it competitive advantage over its rivals through product
improvement.

Market development involves taking existing products into completely new

markets eg finding new markets overseas. Better customer targeting, further
research and market segmentation often help firms to identify these new
markets.

Diversification, on the other hand, involves moving into new products and
new markets at the same time. This may involve a complete shift away from
core activities into some other form of related activity. It represents a step
into less familiar, perhaps even unfamiliar territory.

Market penetration

Going for market penetration has involved Amway in making the most of
current products and competences by 'stretching' them to improve Amway's
competitive position within existing markets. One great benefit of direct
selling is that it is an immediate channel to the marketplace that offers
customers a good service, while at the same time providing business
opportunities for individuals.

Product development

Product development is a particularly appropriate strategy where an

organisation is strong in research and development. Product development is
highly important for products that have comparatively short life-cycles.
Within Amway there are approximately 500 active research and
development projects in progress at any one time. With around 575 staff
involved in research processes, and with strong links to many universities,
Amway formulates, designs and develops new products to meet customer
needs and expectations within the global marketplace. Amway currently
holds more than 380 patents internationally and has approximately 430
patents pending. Within its product development programme, Amway's
technical teams use the company's customer base to monitor and test new
product ideas.

Market development

Market development involves taking existing products into completely new

markets. One method used by Amway involves expanding the ways in
which individuals can be involved with the Amway business. Amway has
developed a structure known as the IMC model. This increases the number
of ways through which people can become involved in the Amway business.
Each of the letters IMC stands for a different type of involvement.

• I - Independent Business Owners (IBOs)

• M - Members

• C - Clients (customers) of the IBOs.

Members are allowed to purchase Amway products at a price equivalent to

that paid by IBOs, but do not participate in the Amway Sales and Marketing
Plan. They are a new type of 'customer' who deal directly with Amway

Diversification

Ansoff pointed out that a diversification strategy stands apart from the other
three strategies. The first three strategies are usually pursued with the same
technical, financial, and merchandising resources used for the original
product line. Diversification, however, usually requires a company to
acquire new skills, new techniques and new facilities. This implies
significant investment.

One way in which Amway have diversified its activities is through creating
an on-line business opportunity called 'AMIVO' to support and enhance its
traditional business. This makes use of the internet. The internet is a good
example of a structure that no one firm has had to pay to construct, but
which is available to all firms now that it has been constructed. The
challenge to each business is to identify how to use the internet in ways that
are advantageous to it and also profitable.

Amway has succeeded in doing just that.

BCG MATRIX

STAR QUESTION MARK

NUTRALITE PROTEIN POWDER NUTRALITE KIDS DRINK

(BANANA,CHOCOLATE)

CASH COW DOG

NUTRALITE PROTEIN POWDER SOME OF THE HOME CARE

PRODUCTS

CASE STUDY
Amway’s Strategies for meeting stakeholders’ needs
thereby creating a corporate social responsibility
strategy
Amway is one of the world's largest direct sales organisations. It has over
three million Independent Business Owners (IBOs). These IBOs source
products from Amway and sell them in their own local businesses. Many of
them are couples with families. Amway's has been making efforts to work
with UNICEF, the United Nations Children's Fund. This is part of Amway's
Corporate Social Responsibility (CSR) strategy. CSR refers to the way that
businesses work in a responsible way and contribute to the communities
within which they operate.
Amway employs 14,000 people worldwide in its offices, manufacturing
centres, warehouses, call centres or stores. It also works with around three
million Amway Business Owners (ABOs) in more than 80 countries. These
ABOs are the link between Amway and its products and the consumer. They
also link Amway with communities across the globe. For more than 45
years, Amway Corporation has enabled people to have a business of their
own.

Amway’s global vision is to help people live better lives. At the heart of this
commitment Amway has been searching for the campaigns for
disadvantaged children from around the world. Therefore there was a need
to Amway to search for programs in respect to its employees and customers
to serve the best and invent the best relational model between the same.This
case study explores the relationship between Amway and its stakeholders.

QUESTIONS:

Ques: What is Amway’s approach towards exercising any business

strategy?

Ques: How have stakeholders been affecting Amway ?

Ques: How Amway affects its stakeholders?

Ques 1: What is Amway’s approach towards exercising any business

strategy?

Solution
Corporate Social Responsibility (CSR) strategy:

Amway's vision is to help people lead better lives by providing low cost and
low risk business opportunities. Amway supplies branded products to its
IBOs, who sell them in their own communities. The IBOs agree to trade
honestly and responsibly. They are Amway's link into local communities
and can introduce others to the business. Amway's 'One by One' campaign is
designed to give children all over the world a better chance. Since 2001,
Amway Europe has partnered with UNICEF and contributed around £1.4
million to the charity. The focus is on supporting the worldwide
'Immunisation Plus' program. This involves, for example, providing measles
vaccines to children. The 'Plus' is about using immunisation to deliver other
life-saving services for children. The IBOs act as 'Champions', traveling to
meet the children and spreading the message in their own groups.

Values

One of Amway's main values is to be a caring company. It has developed a

strategy, or set of ideas, to help it reach this aim. Its Global Cause strategy is
what led it to support UNICEF. This feeds into European and UK strategies.
The objective is to raise around £350,000 a year every year until 2010 to
help combat children's diseases. In 2005 Amway became an official
corporate partner of UNICEF, setting up a close long-term relationship.

Stakeholders

The CSR strategy has the interests of Amway's various stakeholders in

mind:

• Amway: it helps to grow the business;

• IBOs: want Amway to be a caring organization;

• Customers: want the businesses they deal with to be responsible;

• Staff: want to work for a responsible organization;

• UNICEF: want to work with a business that shares their values and
helps them raise funds.

Amway supports UNICEF through sales of items such as greetings cards,

wrapping paper and children's toys. In addition, its staff are involved in
fund-raising events.

Communication

A company may have shareholders who can be internal or external

stakeholders. As a private company, the families who own Amway are its
sole shareholders. It is important that Amway communicates regularly with
its stakeholders. They can affect or be affected by the business.
Amway uses different ways to communicate with its various groups of
stakeholders. The method chosen depends on the message and the person
receiving the message:

• Websites, emails and voice mail updates promote products and

services to ABOs and customers and keep them up-to-date
• Industry and trade memberships enable Amway to share and receive
industry information
• Publications target key sales messages, for example, its monthly
newsletter for ABOs, Amway Focus
• Events and exhibitions help Amway to communicate to ABOs,
consumers and guests about running an Amway business and the
products it can provide

Clear communication helps the strategy to run smoothly. This includes:

• face-to-face communication – regular meetings between the various

partners;

• printed material: Amway produce a monthly magazine for IBOs;

• public relations;

• email to keep IBOs up to date;

Ques 2:How have stakeholders been affecting Amway

Amway is a direct selling company, selling products directly to consumers

without going through traditional retail outlets or ‘high street’.

The supply chain

A supply chain links the finished products to end consumers.

Amway has its own distinct supply chain, placing a strong emphasis on its
ABOs. They are able to focus on individual customers and their needs. This
supply chain is different from a more conventional supply chain that sells
goods to final consumers through retail outlets. Amway’s way of working
depends on building lasting connections with the end consumer. Feedback
provided by consumers and ABOs helps to shape future changes in products
and the service provided.

Suppliers must produce quality goods that Amway ABOs can sell with
confidence. The goods should offer value for money and provide guarantees
that they will meet Amway standards. Suppliers may contribute to the design
and appearance of Amway products.

ABOs

ABOs operate independently as small businesses. They develop direct

supply channels and sell products to friends and customers that they know or
meet. They need to have a flexible approach to business. They require
Amway to provide high quality, value for money products with a 100%
satisfaction guarantee. ABOs determine for themselves how they will
conduct business. This is a ‘self regulatory’ environment. However, they
sign a contract to work within Amway’s Rules of Conduct and Code of
Ethics. If ABOs do not conduct business within these rules, their behaviour
could reflect back on the company.

Consumers

Consumers affect how Amway develops and promotes products. They do

this by indicating their preferences and requirements through feedback.
Amway can then make more of particular products or change the format of
others. Consumer demand also influences how much stock Amway needs to
carry. Consumers can show where Amway needs to address issues or
concerns to improve the business.

With many different types of stakeholders, it is possible that different groups

will have different key objectives or priorities. For example, a business
needs to make a profit but customers want low prices. The company might
find it difficult to support price cuts, as this would reduce its profit. These
two priorities might be in conflict.

Ques 3:How has Amway affected its stakeholders?

Amway’s vision is ‘helping people live better lives’.

Amway’s business plays a key role in the communities in which it operates.

Amway has a global strategy for producing, distributing and marketing its
products worldwide. It also has a strategy for promoting corporate social
responsibility (CSR) in a global way. CSR refers to the role that a company
plays in meeting its wider commitments as a citizen. Such commitments
include supporting worthy causes and always acting in an ethical, honest
way.

Amway operates in many different markets worldwide and has a range of

affiliates and ABOs. It therefore has to devise and communicate its plans for
corporate social responsibility activities carefully to take account of different
priorities and interests. From the outset, Amway established some clear
objectives. These were to:

• build loyalty and pride among ABOs and employees

• enhance Amway’s reputation as a caring organisation
• make a real difference to human lives

This helps to maintain Amway’s reputation with all its stakeholders.

Amway contributes time, effort and money to support its business

communities:

• It creates appropriate Amway products for ABOs to sell.

• It develops campaigns that support the business and social aims of the
company. Getting the image right is vital in a business that relies on
building relationships with individuals and the wider community.
• Amway regularly seeks to develop new products in line with market
research aimed at finding out what customers want.
• Its employees volunteer at different charity organisations.
• It has shared $294 million (around £150 million) with non-profit
organisations since the company began.

Global Cause Program

Amway produced its Global Cause Program in 2002 as the result of

extensive research. Amway defines a global cause as ‘a social issue affecting
many people around the world engaged in a struggle or a plight that warrants
a charitable response.’ The Global Cause Program:

• helps Amway to bring its vision to life

• declares what the organisation stands for
• builds trust and respect in Amway brands
 • establishes corporate social responsibility as a high priority

In developing its global cause strategy, Amway also listened to what its
ABOs cared about. Many favoured a cause to help children. This led to
Amway’s partnership with UNICEF’s Immunisation Plus programme. This
aims to provide vaccination against the six most serious diseases affecting
children in the developing world. Amway’s business image benefits from
the relationship with UNICEF. UNICEF benefits from the fundraising
Amway and its ABOs contribute.

Conclusion

As a family business with family values – and one that is still family-owned
– Amway wants to make a positive difference to the communities within
which it operates. The strong link between its IBOs, itself and UNICEF help
it to achieve this strategy.

Amway is a global direct selling organisation. It has to deal with many

different stakeholders with different objectives. These stakeholders may be
internal or external to the company and can affect or be affected by Amway
in different ways.

Its organisational structure is based on a network of ABOs who work

independently. Therefore, it is important that Amway sets the standards of
ethical business behaviour for the people who work with, and for, the
company. It demonstrates these standards by setting rules of conduct and
codes of ethics.

In addition, it puts its ethics into practice through its various CSR
programmes of activity, supporting the environment, its employees and
disadvantaged children across the world.