A CONCEPTUAL STUDY OF BUSINESS

MANAGEMENTAND ORGANIZATION SYSTEM

.

STUDENT DECLARATION:
I hereby declare that the project report entitled a conceptual study
of business management and organization system Amway. has been
done by me under the guidance of Dr. Sanjay adhwa. !his project report
has been submitted to regional "ollege# $areilly as a part of partial
fulfillment for the award of the degree of $."om%&ons'.
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.
)a(neet *aur

ACKNOWLEDGEMENT
!he satisfaction and euphoria that accompany the successful completion of
any tas+ 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 than+s to the staff of
)egional "ollege for gi(ing me the opportunity to conduct this study.
I than+ our -rincipal Dr. Sanjay Wad!a# for the encouragement and
intellectual influence during the course of the project wor+.
I am grateful to the .ibrarian of /,cel $usiness Academy# for his
support during my study.
.ast but not the least# I would also li+e to than+ each and e(eryone
especially all my friends for their cordiality 0 support during my project.
Da"#: $ $ Ra%n##" &a'r

CONTENTS
( Or)an*+a"*,na- Sy."#/ !*" r#.0#1" ", A/!ay:
1 Introduction
2 3ision# 4ission 0 5oals of the Amway
6 7rganizational Structure 0 !ype of Amway
8 !ype of 7rganization
9 :unctional -atterns of Amway
; !ype of 7wnership
< S7! Analysis
2 S'//ary ,3 F*nd*n). 4 C,n1-'.*,n
1 :indings
2 "onclusion
6 suggestion

In"r,d'1"*,n ,3 M'-"*5-#%#- /ar6#"*n)
hen people buy their goods and ser(ices from you# you get commissions on
sales. !here are many different things that you can sell# from toiletries such as
shampoos# soaps# and body washes= to e(en website ser(ers and web space
online. 4ulti>le(el mar+eting can allow you to ma+e a lot of friends# if only on
the basis of ha(ing people buy from you. In this stage of multi>le(el mar+eting#
you will need to put your salesperson?s hat on and start tal+ing li+e a
salesperson@ you cannot be a hard selling salesperson# but neither can you be too
la, in your selling.
If you are loo+ing for people to whom you can sell your goods and ser(ices#
then you may ha(e to +now the ins and outs of your target mar+et. Aou will
need to +now the age group to which you are catering# and from there deduce
where this age group hangs out online# what this age group wants# what this age
group is most concerned with# and how much this age group is willing to pay
for certain products and ser(ices. !his way# you can better fashion your

mar+eting statement and you can reach out to your target mar+et faster# say by
posting on message boards and lin+ing to blogs.
Another way for you to ma+e money from multi>le(el mar+eting is through
referrals. In multi>le(el mar+eting# you can refer someone to the program# and
each time that person ma+es money# you get your own commissions# too. !his
means that you do not only ha(e to recruit a large number of people to ser(e as
your downlines in multi>le(el mar+eting. Aou also ha(e to recruit people who
are as dri(en as you are# and are as willing to spend time# money# and effort in
order to get their own downlines# sell their goods and ser(ices# and# in short# be
as enthusiastic in the business as you are.
&ow can you best do thisB !o recruit people do not ma+e a shot in the dar+ and
do not spam peoples? mailbo,es with emails on how they should join your
program. !al+ to people one at a time# and build your downlines through
Cuality# not Cuantity.
!hese are only a few aspects of multi>le(el mar+eting that you may want to ta+e
note of as you start wor+ing on your new online business. :or more
information# tal+ to people who ha(e already gone through multi>le(el
mar+eting# and who ha(e made money through their 4.4 endea(ors. Aou may
also need to do some research on your own# say by consulting mar+eting and
sales boo+s# in order to better fashion your mar+eting statement. If you are able
to sell well# and sell the idea of 4.4 well without appearing li+e you are
pushing people into a business# then you can ma+e money off this business
model.
M'-"*5-#%#- /ar6#"*n) %MLM' is a mar+eting strategy in which the sales force
is compensated not only for sales they personally generate# but also for the sales
of the other salespeople that they recruit. !his recruited sales force is referred to
as the participantDs EdownlineE# and can pro(ide multiple le(els of
compensation. 7ther terms used for 4.4 include 0yra/*d .#--*n)# n#"!,r6

/ar6#"*n)# and r#3#rra- /ar6#"*n). According to the FS :!"# some 4.4
plans get their benefit from e,ploiting other members of the networ+# and they
are illegal pyramid schemes.
4ost commonly# the salespeople are e,pected to sell products directly to
consumers by means of relationship referrals and word of mouth mar+eting.
Some people use direct selling as a synonym for 4.4# although 4.4 is only
one type of direct selling.
"ompanies that use 4.4 models for compensation ha(e been a freCuent
subject of criticism and lawsuits. "riticism has focused on their similarity to
illegal pyramid schemes# cult>li+e beha(ior# price fi,ing of products# high initial
entry costs %for mar+eting +it and first products'# emphasis on recruitment of
others o(er actual sales# encouraging if not reCuiring members to purchase and
use the companyDs products# e,ploitation of personal relationships as both sales
and recruiting targets# comple, and e,aggerated compensation schemes# the
company andGor leading distributors ma+ing major money off training e(ents

and materials# and cult>li+e techniCues which some groups use to enhance their
membersD enthusiasm and de(otion.

E7#1'"*%# S'//ary:
!his e,ecuti(e summary will gi(e you +ey facts concerning the
Amway. !hese facts will help to find out how well the Amway
opportunity can match your business goals. .et?s start from main
component that is business. A businessD purpose is to attract and +eep
customers. Its one basic function is to reliably sol(e customer problems.
4anagement 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 4anagement is the act or function of
putting into practice the policies and plans decided upon by the
administration. &ence Administration ma+es the important decisions of an
enterprise in its entirety# whereas management ma+es the decisions within
the confines of the framewor+# which is set up by the administration.
!he important factor important to study is 7rganization. It is the
foundation upon which the whole structure of management is built.
7rganization is not an end it itself but a means to achie(e an end. hether
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 $usiness ownership should be structured
according to the needs of the owners and potentially liability that the
business could incur. "orporate (ision describes aspirations for the future#
without specifying the means that will be used to achie(e those desired
ends.

!he 4ission of organization should represent the broadest
perspecti(e of the enterpriseDs mission. !he major outcome of strategic
road>mapping and strategic planning# 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 S7! /,ercise is a
powerful techniCue for unco(ering and understanding your Strengths and
ea+nesses# and for loo+ing at the 7pportunities and !hreats you face.
!he AmwayGAmway 5lobal# a subsidiary of Alticor# is mar+eting
nutritional supplements# s+in and personal care products# air and water
purifiers and a line of home cleaning products. !he products are sold
through Independent $usiness 7wners %I$7'. !he most effecti(e strategy
for this is direct mar+eting# today also +nown as attraction mar+eting.
Fsing attraction mar+eting for Amway products is the fastest way to ma+e
steady retail profits.
Amway already helped o(er 6 million people start on their path to
success. !heyDre attracted by the unlimited potential of the opportunity# the
support of a corporation with 9H years of e,perience and compassion# a
global community ready to offer support# and a premier compensation
plan.

Ty0# -ri(ate.
Ind'."ry Direct selling.
F,'nd#d 1I9I
F,'nd#r8.9
)ich De3os
Jay 3an Andel
:#ad;'ar"#r. Ada# 4ichigan# Fnited States
Ar#a .#r%#d orldwide
&#y 0#,0-#
S"#%# <an And#- %"hairman'
D,') D#<,. %-resident'
A- &,,0 %"hief /,ecuti(e'
R'..#-- E%an %":7'
R#%#n'# FSD K.8 billion %2HHI'
E/0-,y##. 16#HHH
Par#n"
Alticor

In"r,d'1"*,n:

A/!ay is the largest direct selling company and manufacturer in
the world that uses networ+ mar+eting to sell a (ariety of products#
primarily in the health# beauty# and home care mar+ets. Amway was
founded in 1I9I by Jay 3an Andel and )ichard De3os. $ased in Ada#
4ichigan# the company and family of companies under Alticor reported
sales growth of 2.6L# reaching FSMK.8 billion for the year ending
December 61# 2HHI.Its product lines include home care products# personal
care products# jewelry# electronics# Nutrilite dietary supplements# water
purifiers# air purifiers# insurance and cosmetics. In 2HH8# &ealth 0 $eauty
products accounted for nearly ;HL of worldwide sales. Amway conducts

business through a number of affiliated companies in more than ninety
countries and territories around the world. It is ran+ed by :orbes as one of
the largest pri(ate companies in the Fnited States and by Deloitte as one of
the largest retailers in the world.
M#an*n) and "# :*.",ry ,3 A/!ay:
hat does the word Amway meanB Amway is an abbre(iation for
EAmerican ayE. 5reat companies start with great ideas# and Amway is
no e,ception. !he idea came when two NutraliteO salesmen# )ich De3os
and Jay 3an Andel were at the (ery top of a (ery successful 4.4 at the
time= Nutralite was sold door to door. !his was the 1I9Hs# Nutralite was a
single entity company# and by the end of the decade# Jay and )ich had
built a respectable business of their own > appro,imately fi(e thousand
distributors were in their $oth 4r. De3os and 4r. 3an Andel +new how
to mo(e product > build on relationships. $ut 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 1I9I# the American ay Association was
formed. !his would be the chance to grow and set the direction of a new
entity. )ich and Jay immediately set out to find an initial product to add to
the line. !hey purchased the rights to :ris+# a household cleaner %which
was later renamed .iCuid 7rganic "oncentrate or ..7.".'.
In 1I;H# the American ay Association# now Amway# bought a
controlling share in the manufacturing facility in 4ichigan where .7"
was made. hat this meant is that there were 6 companies all using the
Amway name. !he Amway Sales handled product and distribution#

Amway Ser(ices did business related tas+s %li+e insurance for distributors'
and Amway manufacturing# which produced .7". $y 1I;8# the three
arms of Amway were all merged into a single entity > Amway
"orporation. !he idea was by handling the manufacturing and distribution
of a product line# and then allowing a networ+ of I$7s. !his seemed li+e
the only way to offer what Jay and )ich originally en(isioned > a solid
opportunity where anyone with moti(ation could e,cel# regardless of their
bac+ground and status. !his is a main part of AmwayDs business
philosophy. Not just products and not just sales# but a way to a better life.
Amway continued to grow under the co>ownership of 3an Andel
and De(os. In 1I<2# the pair purchased Nutralite outright > they now
owned the company they had started as employees with.
Amway continued to e,pand# reaching past the borders of the FS to
offer the same opportunities in other countries@
> Australia > 1I<1
> /urope and parts of Asia > 1I<8
> Japan > 1I<I

> .atin America > 1IK9
> "hina > 1II9
> Africa > 1II<
> India > 1IIK
> )ussia > 2HH9
> 3ietnam >> 2HHK
"ritics argued that the model wasnDt sustainable and that growth was
mathematically limited. !hey cried# E-yramid schemePE :ifty years of
steady growth has shown this criticism has no basis in fact.
In 2HHK# Amway %now technically# Amway 5lobal' reported sales
of K billion. !he company is in 9K mar+ets worldwide and manufactures
more than 89H products. Amway 5lobal does business in more than IK
countries.
)ich De3os is still ali(e# although he has passed the -residency of
Amway to his son Dic+. De3os was named one of the richest men in
America by :orbes magazine# with an estimated 8.2 billion dollars in
personal wealth %2HHI'. De3os owns the 7rlando 4agic bas+etball team
among other assets.Jay 3an Andel passed away at age KH in 2HH8. 4r.
AndelDs place at Amway 5lobal is now held by his son Ste(e. At his death#
3an AndelDs net worth was estimated to be 2.8 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. 4.4 is a pro(en
business model that produces massi(e success for indi(iduals.
A-"*1,r and A/!ay Sa-#. Gr,!": (=>? ", 2??@:

:ebruary 9th# 2HHI by ibofightbac+ -osted in Amway News
Amway global sales were reported at estimated retail until 2HHH
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 distributorsGI$7s. Alticor reports actual re(enue
sales at the base I$7 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 %including
some former Diamonds who you would thin+ +now about this' ha(e in the
past con(eniently ignored the change in reporting standards and tried to
claim Amway?s sales pea+ed in 1IIK. Note howe(er that Alticor sales
includes re(enues from other sources such Access $usiness 5roup and
Amway 5rand -laza. In 2HH< this was reported as around M1HH million# so

by far the majority of the sales are through the Amway business
opportunity.
A/!ay Sa-#. Da"a:
Amway has grown fairly Cuic+ly since its inception. Its historic sales
data at estimated retail prices is pro(ided below from 1I9I to 2HHH %in
2HHH Amway switch o(er to Alticor. At its pea+ in 1II< Amway estimated
retail sales worldwide at < $illion FSD. ith the founding of Alticor# the
report methodology was changed and the actual sales to distributors
instead of estimated retail sales %/)S' ha(e been reported since 2HH1.
!a+ing the sales data published in 2HH1 report into account# the /)S
Y#ar
E."*/a"#d
R#"a*- Sa-#.
Y#ar
E."*/a"#d
R#"a*- Sa-#.
Y#ar
E."*/a"#d
R#"a*- Sa-#.
Y#ar
E."*/a"#d
R#"a*- Sa-#.
1I;H MH.9 million 1I<H M12H million 1IKH M1.1 billion 1IIH M2.2 billion
1I;1 B 1I<1 M1;9 million 1IK1 M1.8 billion 1II1 M6.H billion
1I;2 B 1I<2 M1KH million 1IK2 M1.9 billion 1II2 M6.I billion
1I;6 M21 million 1I<6 M21H million 1IK6 M1.16 billion 1II6 M8.9 billion
1I;8 M29 million 1I<8 M26H million 1IK8 M1.2 billion 1II8 M9.6 billion
1I;9 M6K million 1I<9 M29H million 1IK9 M1.2 billion 1II9 M;.6 billion
1I;; M8H million 1I<; M6HH million 1IK; M1.6 billion 1II; M;.K billion
1I;< M9H million 1I<< M6<9 million 1IK< M1.9 billion 1II< M<.H billion
1I;K M;9 million 1I<K M9HH million 1IKK M1.K billion 1IIK M9.< billion
1I;I MK9 million 1I<I MKHH million 1IKI M1.I billion 1III M9.H billion

(alues are about 62L higher than sales to distributors. !he actual sales to
distributors are mar+ed with Q.
Fntil 1III sales were reported at /stimated )etail. !his is appro,imately
62L higher than actual sales re(enues from sales made to Amway
distributors.
<ISION OF AMWAY:
&elping people li(e better li(es.
Showing where the business wishes to be in the future.
MISSION OF AMWAY:
!hrough the partnering of Distributors# /mployees# and the
:ounding :amilies and the support of Cuality products and ser(ice#
we offer all people the opportunity to achie(e their goals through the
Amway Sales and 4ar+eting -lan. $road o(er riding statement of
purpose.
!o facilitate best business opportunities.
!o deli(er high>Cuality products to semi>urban and urban homes in
di(erse areas of insurance# home tech# home care# personal care#
cosmetics and wellness.
GOAL OF AMWAY:
!he de(elopment of new business opportunities.

!o increase the companyDs role in relations to social responsibility.
!o pro(ide e,cellent customer ser(ice.
A!ard. and R#1,)n*"*,n:
-resented the 4illennium 7utstanding Ser(ice Award 2HHH# by the
"onfederation for the $lind %AI"$'# in recognition for wor+
carried out for the (isually challenged.
!he Indian )ed "ross Society# 7rissa awarded A7: a memento 0
certificate for conducting a mega>$lood Donation camp of K1;
units on 8th 4ay# 2HH6.

!he Surat )a+tdaan *endra felicitated Amway India at their annual
function on 9th 7ct# 2HH6# for the largest number of donors at a
$lood Donation "amp %$D"' held by any financial and
commercial institution and industry. !he 4ayor of Surat > Snehlata

"houhan > presented a trophy and a certificate of appreciation.

S,1*a- r#.0,n.*A*-*"*#. 0#r3,r/#d Ay AMWAY:
7ne by 7ne "ampaign for "hildren
Amway 7pportunity :oundation %A7:'
National -roject for the $lind@
Pr,j#1" S'nr*.#: !he objecti(e is to identify one orphanageGinstitution at
each location where Amway has a modestly>large office %92 cities'. 7n>
going assistance to be pro(ided in education# healthcare and (ocational
training under the following heads@
R &ealth care
R /ducation and (ocational training
R Safe drin+ing water
R "hildren?s Day and A7: Day celebration with Amway staff 0 Amway
A/!ay Pr,d'1".:
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 .ifestyle S Artistry S Atmosphere S $eautycycle S $ody Series S
$outiCue S Dish Drops S /ddie :un+houser S /mma -age S eSpring S
..7.". S 5ensona S 5lister S &ymm S i"oo+ S .ifeStyle $alanced
Solutions S NA7 "osmetics S 4ois+in S+in "are S Nutrilite S Nutriway S

TS /nergy S 7cean /ssentials S -ersonalized &ealth S -eter Island S
-rotiCue S -ositrim S SatiniCue S SAK S !ime Defiance S !olsom S !rim



A/!ay P#r.,na- Car# Pr,d'1".

NutriliteO is the world?s leading brand of (itamin# mineral# and dietary
supplements# grown har(ested and processed on its own certified organic
farms.
ArtistryO is one of the world?s top fi(e largest>selling prestige brands of
facial s+in care and colour cosmetics. 7ur scientists and formulators ha(e
de(eloped the complete line of
cosmetics#
All products of Attitude contain S+in 3italising "omple, that
synergistically combine to cleanse# )eplenish 0 4oisturise the s+in
ma+ing it soft 0 supple.


DynamiteDs range of male grooming products# formulated internationally is
designed to deli(er the ultimate grooming e,perience.
5lister !oothpaste is a re(olutionary 4ulti>Action !oothpaste with
Sylodent that offers se(en benefits.
-ersona -remium 6 in 1 Soap is a complete soap for the entire family
promises refreshing confidence.

SatiniCue Ad(anced )ange with uniCue "eramide Infusion System uses
natureDs own renewing technology to reju(enate# strengthen and protect
your hair.
SAK 5elzyme is IndiaDs only 6>in>1 laundry detergent which pretreats#
cleans and softens.


50& )ange enriched with the goodness of 5lycerine and &oney# deeply
nourishes and hydrates the s+in for a healthy glow.
.7" &igh Suds is a multipurpose household liCuid cleaner.
Dish Drops is a concentrated hand dishwashing liCuid with a powerful
E!riadic Detergency SystemE.
5reat 3alue -roduct )ange offers you 5reat Uuality# 5reat -erformance#
5reat -rice and a 4oney $ac+ 5uaranteeP

A/!ayB. 1,/0#"*",r.:
(9 D*r#1" 1,/0#"*",r.:
A37N
4A)A *AA
SFN)ID/)
29 Ind*r#1" 1,/0#"*",r.:
.ocal INDIAN companies.
"hanging -olitical 0 /conomic Atmosphere
-roducts used as samples to persuade relati(es and friends to join
Amway
:ocus shifted from selling products to recruiting.
Or)an*+a"*,na- ."r'1"'r# ,3 A/!ay:
T#r/. '.#d *n A/!ay:

IBO$ABO$AIE5Ind#0#nd#n" B'.*n#.. O!n#r$A/!ay B'.*n#..
O!n#r$A/!ay Ind#0#nd#n" En"r#0r#n#'r is a business partner
of Amway who is authorized to mar+et and distribute products and
ser(ices a(ailable from Amway. Different names are used in
different mar+ets.
D*."r*A'",r > an older term for I$7
P< C P,*n" <a-'# is a (alue assigned to each product or ser(ice
sold by Amway. An I$7s monthly performance bonus brac+et
depends on total -3 in a month.
B< C B'.*n#.. <,-'/# is typically the wholesale cost of the
product or ser(ice sold by Amway. -erformance bonuses are
multiplied by the groups total $3.
P#r3,r/an1# A,n'. is the monthly bonus paid by Amway to I$7Ds.
!he higher the -3# the greater the percentage earned. In North
America the -erformance bonus ranges from 6L to 29L. In other
mar+ets it ranges from 6L to 21L. In India it ranges from ;L>21L.
R#"a*- Pr,3*" is the mar+up earned by an I$7 when they sell a
product to a consumer# either personally or through an Amway
website. )ecommended retail mar+up ranges from 2HL>69L.
S0,n.,r is an I$7 who refers %sponsors' a new I$7 to Amway#
although I$7Ds do not get paid to sponsor.
U0-*n# is the term used to refer all the I$7s up in the line of
sponsorship of an I$7.
D,!n-*n# is the term used to refer all the I$7s down in the line of
sponsorship of an I$7. !hey are collecti(ely also +nown as )r,'0

L#) refers to a personally sponsored I$7 and all of their downline.
S*-%#r Pr,d'1#r is an I$7 who has reached the ma,imum bonus
le(el for one month.
G,-d Pr,d'1#r is an I$7 who has reached the ma,imum bonus
le(el for three months.
P-a"*n'/ or d*r#1" is an I$7 who has reached the ma,imum bonus
le(el for si, months. In North America a -latinum is generating a
minimum of appro,imately M6H#HHH in sales (olume per month.
E/#ra-d a distributor with at least three legs generating Sil(er
-roducer (olume for at least ; months of a year.
D*a/,nd a distributor with at least si, legs generating Sil(er
-roducer (olume for at least ; months of a year.
D5(2 is a -latinum or higher I$7 that Cualifies e(ery month for 12
months of a year.
Ind#0#nd#n" B'.*n#.. O!n#r 8IBO 9:
An I$7 is# literally# an Independent $usiness 7wner@ an indi(idual
or indi(iduals who own and operate their own business# which is powered
by Amway North America# formerly Uui,tar. I$7s are the "/7s of their
own businesses# and they ma+e many of the same daily business decisions
other business e,ecuti(es ma+e. As independent business men and women#
I$7s decide how acti(e to be in their business# what products to sell and at
what prices# who to sponsor# what hours to +eep# and other important

decisions. I$7s are independent contractors= they are not employees of
Amway North America or Amway "orporation. As independent business
owners# I$7s are free to ma+e decisions many others in business are not
free to ma+e.
Ind#0#nd#n" B'.*n#.. O!n#r. A..,1*a"*,n In"#rna"*,na-
8IBOAI9 :
!he IBOAI %I$7A International or Independent $usiness 7wners
Association International' is a trade association representing Independent
$usiness 7wners affiliated with Amway North America# formerly Uui,tar.
It is the primary ad(ocacy organization for I$7s in North America. A
trade association is an organization of business people who share common
interests or concerns# and who educate and represent their members. !he
I$7AI %or I$7A International' is one e,ample.
R,-# ,3 "# IBOAI B,ard:
!he I$7AI $oard is the representati(e body of the Association
acting on behalf of all I$7s. ith I$7 input# support# and participation#
the I$7AI $oard listens to ideas# proposes impro(ements# and ad(ises
Amway on the best way to mo(e the business forward. or+ing closely
with "orporate staff# the $oard ad(ises Amway on e(ery facet of the
business# from products and promotions to operations and business
guidelines# as it has for 9H years. !ogether# they bring positi(e change to
this business# to +eep it mo(ing forward and ma+e certain the business is
better for e(ery generation.

2?(? IBOAI B,ard and G,%#rnan1# 4 O%#r.*)" C,//*""##:
Ste(e oods# "hairman
$rad Duncan# 3ice "hairman
$ob Andrews# -ast "hairman
O"#r */0,r"an" d*r#1",r.:
1. Alberto Aguilera
2. 5len $a+er
3. 4i+e $undy
8. John "rowe
5. &owie Danzi+
;. Jim Dornan
<. Jody Dutt
8. *anti 5ala
9. $ert 5ulic+
10. .eif Johnson
11. Shi(aram *umar
12. -edro .izardi
13. Doug eir
14. Doyle Aager
15. Dan Auen

I$7s are ne(er alone. !hey ha(e a sponsor# a line of sponsorship# and the
I$7AI their primary ad(ocacy organization behind them all the way.
Or)an*+a"*,n "y0# and B'.*n#.. O00,r"'n*"y:
!he Amway is pri(ate co operati(e organization. !he Amway Sales
and 4ar+eting -lan put you in control# allowing you the fle,ibility to wor+
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 reCuire to become the $usiness 7wner you want to be.
ith Amway you are C,nn#1"#d to the global leader in multile(el
mar+eting# with o(er 8H years of e,perience# S'00,r"#d by great products
and people who will help you succeed# and finally In C,n"r,- of your life.
Sa-#. and Mar6#"*n) P-an:
!he Amway Sales and 4ar+eting -lan is a low ris+# low start>up
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. $y
passing your sales and mar+eting +nowledge to your de(eloping team# you
not only build your own business networ+ but also enable others to build
one of their own.
Mar6#"*n) ."ra"#)y:

A strategy is a plan of action designed to achie(e the goals of the
organisation. In creating a mar+eting strategy for the Super "oncentrated
"leaning System# Amway needed to set out the +ey 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 uniCue products to enhance the image of
Amway &ome "are.
A N#! S"ra"#)y ,3 A/!ay:
Agreement with the go(ernment and company
resumed operations
5oods will be sold in retail outlets and through
sales representati(es
Income of sales distributors will be based on direct selling done by
them
Same Distribution centers ser(ed as retail outlets for the company
.ocalization of employees
.ocalization of production and )aw 4aterial
.ocalization of research and de(elopment
!ransparency and "redibility of company?s management

F'n1"*,na- 0a""#rn ,3 A/!ay:
:ollowing are the main departments of Amway@
1. :inance and accounts.
2. 4ar+eting and Sales.
6. &uman resource and administration.
A/!ay G-,Aa- 0r,%*d#. y,' !*" .'00,r" -*6#:
C'.",/#r 1ar#: If you ha(e a Cuestion about anything > li+e
registration# renewal# $usiness# or product information > our
"ustomer "are Associates can help you.
B'.*n#.. /ana)#/#n": Aou can manage your business# chec+
customer 3olume# order products# and renew your business# all at
Amway 5lobal.com.
Ord#r /ana)#/#n": Aou sell the products# and weDll do the rest#
li+e process the order# manages your customer accounts# and handles
the shipping details.
Tra*n*n): 7nline# (ideo# and instructor>led training are some of the
ways we can share with you the +nowledge to grow a successful
independent business.

Mar6#"*n): e support your sales efforts with D3Ds# online sites#
4agazines# brochures# and free websites you can personalize. And
we help $uild awareness of your products and brands with national
ad(ertising# promotions# and e(ent sponsorship.
Amway belie(e that Cuality impro(ement happens when people come
together. !his core belief is what all A7: initiati(es are based upon and it
holds true time and again. ith a passionate and (igorous wor+force ready
to contribute their bit to the well>being of society# (olunteering becomes a
way of life in Amway. !he 99H#HHH Amway distributors and 89H full>time
employees are all considered A7: (olunteers. At 9; Amway offices
across India# A7: has formed a team of ; or more distributors and
employees to form a .ocal Implementation "ommittee %.I"'. .I" ta+es
ownership of being the face of Amway?s "S) at the location. !hey
identify potential partners# form a project# and implement this with other
(olunteers. !he .I" also plays a lead role in raising funds they wish to
utilize. !he beauty of this system is that the .I" raises the funds# and then
decides how best to utilize this in their town or city.

S"ra"#)*1 ana-y.*. ", ,%#r1,/# 0r,A-#/.:
!oday it is a global business that# along with its parent and sister
companies# directly employs 1H#HHH people worldwide. !he business also
operates strategically at a 5lobal# /uropean and National le(el. Amway
%F*' began operations in 1I<6 and has its own distribution and -roduct
Selection "enters.
Amway has helped millions of people around the world to start their
own independent business# through which they engage in person>to>person
mar+eting. !his type of direct selling in(ol(es matching a consumerDs
needs with the goods and ser(ices on offer. !he better the match# the more
lasting the relationship between the seller and the buyer.

O!n#r.*0 ,3 A/!ay:
IBO. and C'.",/#r.:
Amway ser(ices the needs of both Independent $usiness 7wners
and customers. I$7s build businesses that allow them to earn income
based on sales made resulting from their efforts. !o launch an Amway>
powered business# indi(iduals must register with an e,isting I$7.
"ustomers 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.
-roducts are shipped to their homes and co(ered by AmwayDs "ustomer
Satisfaction 5uarantee. "ustomers must register with the identification
number of their ser(icing I$7. If a new registrant Does not ha(e a
ser(icing I$7# Amway will assign them one..
P#r.,na- R#3#rra-.:
Fnli+e most other companies# AmwayDs sales are not the result of
ad(ertising. !he biggest chun+ of AmwayDs mar+eting budget goes directly
to rewarding I$7s for sales (olume resulting from their efforts. !hose
efforts include registration of new Ibos# 4embers# and "lients# resulting in
product sales. AmwayDs tiered compensation plan rewards the mo(ement
of product through an I$7Ds sales organization and their ability to train
others to create their own successful organizations. hen people (isit

AmwayDs site# it is the result of a personal referral by an I$7 >not as a
result of some ad(ertisement they saw on !3. -ersonal referrals ha(e
pro(en to be much more effecti(e.
B'++ Mar6#"*n):
Alticor pioneered buzz mar+eting through its person>to>person
referral model. Some companies spend millions on strategies intended to
get people to spread the word about their products. !hrough its
Independent $usiness 7wnership -lan# Am>way does the same by
rewarding I$7s for spreading the word about the business opportunity and
the e,clusi(e products a(ailable through Amway. !his is a much targeted
mar+et spend# since I$7s are rewarded only when their efforts actually
result in product sales.
B'.*n#.. Sy."#/.:
I$7s employ many different approaches to build their businesses#
typically in(ol(ing training systems# moti(ational meetings and tools# and
time>tested tactics to approach people and interest them in the business
opportunity and products. hen a person registers with Amway# it
typically is the result of ha(ing been approached by an I$7 already
in(ol(ed in one of se(eral large organizations that pro(ide training and
support to I$7s. 7ften# a new I$7 also will choose to attend optional and
(oluntary training sessions or purchase professional de(elopment materials
pro(ided by that organization > all co(ered by a money>bac+ guarantee.

Ind#0#nd#n1#:
!he beauty of AmwayDs business model is that there can be as many
ways of pursuing the business as there are I$7s. If youDre into health# you
can focus on Nutrilit supplements and TS /nergy Drin+s.
SWOT ana-y.*. ,3 A/!ay:
STRENGT::
$ased on direct selling operations. &ence it can be A home based
business. /(ery can participate in business. It?s easy to get
admission in Amway with easy rout li+e intent.
!raining to staff.
:unctions are performed by I$7s.
7rganize meetings and e(ents time to time.
&a(e good customer ser(ice system.
$ac+ed by a 1HHL "ustomer -roduct )efund -olicy produce faith
and reselling attitude in customers.
Uuality -roducts that Inspire "onfidence. Almost no ris+ of money
as world class Cuality 4inimal start up costs gi(es strong base to the
initiation of business. So e(eryone can participate in business. !he
person who wants do something can be ma+e profit with in(estment
of low cost.
-roducts 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.
WEA&NESS:
4ore power to I$7s gi(es critical structure to organization.
Initially high entry cost leads to somewhat restrictions for business
de(elopment.
)umors for direct selling operations.
:ocus shifted from selling products to recruiting.
OPPURTUNITIES:
Setup a manufacturing plant in all countries leads to better platform
for company.
-opulation of INDIA 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 mar+eting which leads to
decrease in total e,penditure of company.
T:REATS@
!oo much freedom to I$7s.
"hange in go(ernment policy may affect to the profit and freedom
of company.

"ompetitors li+e A37N# 4A)A *AA= SFN)ID/) creates lot of
competition in mar+et which leads to strong mar+eting competition
in mar+et.

OBEECTI<E OF T:E SUR<EY
!o gain an insight into the functioning machinery of the mar+eting
sector.
!o +now about the present potential mar+et of A4AA.
!o +now about the consumer demand and beha(ior towards the
company
!o (iew the competiti(eness of the company products in the mar+et
!o loo+ for the scope of betterment that can be done in this industry
(ia company?s contributions.


RESEARC: MET:ODOLOGY
RESEARC:
)esearch in common parlance refers to a search for +nowledge. 7ne can
also define research as a scientific and systematic search for pertinent

information on a specific topic. Infact# research is an art of scientific
in(estigation. )edman and 4ory define research as a systematized effort
to gain new +nowledge.
)esearch is an academic acti(ity and as such the term should be used in a
technical sense. According to "lifford oody research comprises defining
and redefining problems# formulating hypothesis or suggested solutions=
collecting# organizing and e(aluating data= ma+ing deductions and
reaching conclusions= and at last carefully testing the conclusions to
determine whether they fit the formulating hypothesis.
TYPES OF RESEARC:
!he basic three types of research are as follows@
Descripti(e (Gs Analytical
Applied (Gs :undamental

Uuantitati(e (Gs Uualitati(e
RESEARC: MET:ODS
)esearch 4ethods may be understood as all those methodsG techniCues
that are used for conduction of research. )esearch 4ethods or techniCues#
thus# refer to the methods the researchers use in performing research
operations. !hus# research methods can be put into following three
categories@
In the first group we include those methods which are concerned
with the collection of data.
!he second group consists of those statistical techniCues which are
used for establishing relationships between the data and the
un+nowns
!he third group consists of the methods which are used to e(aluate
the accuracy of the results obtained.
RESEARC: MET:ODOLOGY
)esearch 4ethodology is a way to systematically sol(e the research
problem. It may be understood as a science of how research is done
scientifically. It helps in studying the (arious steps generally adopted by

the researcher in studying his research problem along with the logic behind
them. !hus# the scope of )esearch 4ethodology is wider than that of the
research methods.
In other words# when we tal+ of )esearch 4ethodology we not only tal+
of the research methods but also consider the logic behind the methods we
use in the conte,t of our research study and e,plain why we are using a
particular method or techniCue and why we are not using others so that the
research results are capable of being e(aluated either by the researcher
himself or by others.
RESEARC: DESIGN
A research design is the arrangement of conditions for collection and
analysis of data in a manner that aims to combine rele(ance to the research
purpose with economy in procedure.

Infact# the research design is the conceptual structure within which
research is conducted= it constitutes the blueprint for the collection#
measurement and analysis of data.. as such the design includes an outline
of what researcher will do from writing the hypothesis and its operational
implications to the final analysis of data.
NEED FOR RESEARC: DESIGN:
)esearch design is needed because it facilitates the smooth sailing of
(arious research operations# thereby ma+ing research as efficient as
possible yielding ma,imal information with minimal e,penditure of
effort# time and money.
)esearch design stands for ad(ance planning of the methods to be
adopted for collecting rele(ant data and the techniCues to be used in
their analysis# +eeping in (iew the objecti(e of the research and the
a(ailability of staff# time and money.
)esearch design has a great bearing on the reliability of the results
arri(ed at and as such constitutes the firm foundation of the entire
edifice of the research wor+.
!he design helps the researcher to organize his ideas in a form
whereby it will be possible for him to loo+ for flaws and
inadeCuacies. Such a design can e(er be gi(en to others for their

comments and critical e(aluation. In the absence of such a course of
action# it will be difficult for the critic to pro(ide a comprehensi(e
re(iew of the proposed study.
SAMPLING AND SAMPLE DESIGN
It is not possible to e,amine each and e(ery item in the population hence
interferences are drawn about a large number of items possessing a
particular attribute based on analysis of fraction of such items. It is called a
sample. :or de(eloping a sample design following points need to be
discussed with regard to the present study
POPULATION@ All items in any field of inCuiry constitute a
FNI3/)S/ or -7-F.A!I7N. A complete enumeration of all
the items in the population is +nown as census enCuiry. !hus#
population means the inclusion of all the items in the field of
enCuiry. -opulation can be finite if units can be counted or infinite.
Since the present study is done in $areilly# the population is finite.
SAMPLE@ Sample means selection of few items as representati(es
of all the items. A part of the whole population is called SA4-./.
Algebraically# let the population size be N and if a part of size
n%which is VN' of this population is selected according to some rule

for studying some characteristics of the population# the group
consisting of these n units is called sample.
SAMPLING@ !he process of selecting few items from the uni(erse
which are the representati(es of the uni(erse is called
SA4-.IN5.
SAMPLE DESIGN@ A sample design is a definite plan for
obtaining a sample from the gi(en population. It refers to the
techniCue or procedure the researcher would adopt in selecting items
for the sample. Sample design may as well lay down the number of
items to be included in the sample i.e. the size of the sample. Sample
design is determined before the data is collected. )esearcher must
prepare a sample design which should be reliable and apt for his
research study.
SUMMARY OF RESEARC: DESIGN
Data source@ primary data and secondary data
)esearch approach@ sur(ey method
)esearch instrument@ mailed Cuestionnaire and Cuestionnaire filled by the
enumerators
Sampling plan@ sample unit %consumers'

Sample size@ 1HH consumers
!ime@ march> April 2HHI
Sample area@ $areilly city
:YPOT:ESIS
:y0,"#.*.
A4AA is the premier organization in the field of direct selling.
It offers best of products and ser(ices to its customers.
!he present potential mar+et of the company is full of opportunities of
growth.
It has a ne(er fading demand for its products.
It caters to the reCuisites of all the age groups of society.
C,--#1"*,n ,3 da"a
Data forms an important source of any study. Information is deri(ed from
data accumulated. !hus# data plays a (ital role in research. Data can be
collected from two sources (iz. internal and e,ternal. !he e,ternal data is
yet deri(ed from two sources@ primary and secondary.
-)I4A)A DA!A@ primary data is original and first hand information.

-rimary data collection techniCues@
W Direct personal inter(iew
W Indirect personal inter(iew
W Information from correspondents
W 4ailed Cuestionnaires
W Uuestionnaires filled by enumerators
S/"7NDA)A DA!A@ S/"7NDA)A DA!A IS "7../"!/D $A
S74/ 7!&/) A5/N"A AND FS/D :7) :F)!&/) S!FDI/S.
!&FS# I! IS S/"7ND &AND IN:7)4A!I7N
S/"7NDA)A DA!A "7../"!I7N !/"&NIUF/S@
-ublished sources li+e newspaper articles# magazines# research institutions
etc.
Fnpublished sources
!he method used in this sur(ey is primary data collection and the
techniCue used is direct personal inter(iew and Cuestionnaire filled by
enumerators.

DATA ANALYSIS

Have you heard about AMWAY PERSONAL
SELLING?
70%
30%
ye
!o
INTERPRETATION: INTERPRETATION: ABOUT F? G OF T:E
POPULATION &NOWS ABOUT AMWAY PERSONAL
SELLING.

"o you ue the #rodu$t o%%ered by AMWAY?
7&%
''%
ye
!o
INTERPRETATION: F@G OF T:E POPULATION USES T:E
PRODUCTS OFFERED BY AMWAY.

"o you %or( a #art o% AMWAY %a()*y?
+0%
,0%
ye
!o
INTERPRETATION: ONLY H?G OF T:E POPULATION FORMS
T:E PART OF AMWAY FAMILY.

"o o%%er *)-e %ree .)%t/ d)$ou!t et$0 a%%e$t
your buy)!. de$))o!?
10%
20%
ye
!o
INTERPRETATION: OFFERS ATTRACT T:E CUSTOMERS.

I your #ur$ha)!. de$))o! a%%e$ted by the bra!d?
10%
20%
ye
!o
INTERPRETATION: T:E BUYING BE:A<IOUR OF MOST OF
T:E PEOPLE DEPENDS UPON T:E BRAND.

What ) the o#)!)o! about the #r)$e #o*)$y o%
AMWAY?
'0%
30%
30%
e4#e!)ve
$hea#
reao!ab*e
INTERPRETATION: :ALF T:E POPULATION FINDS T:E
PRICES OF AMWAY REASONABLE.

Have you %a$ed a!y #rob*e( re.ard)!. the
SER5I6ES O77ERE" 8Y AMWAY?
&%
1'%
ye
!o
INTERPRETATION: PEOPLE FACE LESS PROBLEMS WIT:
T:E USAGE AND SER<ICES OF AMWAY PRODUCTS.

Are you at)%)ed 9)th AMWAY #rodu$t?
13%
3%
ye
!o
INTERPRETATION: MAIIMUM PEOPLE ARE SATISFIED
WIT: AMWAY PRODUCTS.


FINDINGS:
AMWAY #nj,y. a ),,d /ar6#" .#)/#n" 3,r *". 0r,d'1"..
T# 0r,d'1". ar# ."*-- n," !*"*n #a.y r#a1 ,3 "# 1'.",/#r..
Brand a. *". %a-'# A'" ."*-- a" /ar6#"*n) *"B. a -*""-# !#a6 *n r#)*,na-
/ar6#"..
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 +ind of scam
business# it?s illegal# the products are poor Cuality# or some other
information that has made you thin+ twice about being in(ol(ed.
S+im through these finding and decide for yourself whether those
+inds of opinions really ha(e a lot of credibility in the face of all of these
facts. &a(e all these major companies and organizations that ha(e
recognized Amway for e,cellence been connedB :or fifty yearsB 7r
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. 7r 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(eryoneB 7r perhaps their opinions dri(en by business interests
wor+ing or being paid by competitors or potential competitors to AmwayB


CONCLUSION:
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 Cuality.
!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. &ealth care# to clothing# and daily use products etc. the products are
costly as compared to other branded products a(ailable in mar+et but if we
compare the Cuantity while using the products reCuire less amount and
thus can be used for longer time. Successful business today depends upon
a companyDs ability to Cuic+ly adapt to changes in the mar+etplace. At
Amway# they pride it sel(es on +nowledge of the dynamic networ+ing
mar+et that is Cuic+ly becoming central to modern business. !his
+nowledge# and its willingness to act upon it# has enabled us to become
one of the industryDs 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 cutting>edge
networ+ing products in the global mar+et. If youDre loo+ing for high
Cuality products and solid customer support at roc+>bottom prices# then
choosing Amway really does ma+e sense.


SUGGESTIONS:

!rial pac+s should be used because customer must ha(e to introduce
the product. 7nce customer gets idea about product he comes to
+now ad(antages of products.
!he products should be cheap the home deli(ery system ta+es 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 li+e online# tale and instant purchasing.
In e(ery city# the Amway office should be situated in such a location
so that it is in reach of all distributers.


BIBLIOGRAP:Y
BOO&S
Statistics :or 4anagement> )ichard I. .e(in# Da(id S. )ubin
:undamentals of Statistics> D.N. /lhance
)esearch 4ethodology> ".). *othari
MAGAZINES 4 NEWSPAPERS
!he /conomic !imes
!he !imes of India
$usiness orld
$usiness !oday

WEBSITES
www.multimar+eting.com
www.amway.com

APPENDII
PERSONAL PROFILE:
Name : ____________________________________________
Address : ____________________________________________
Telephone No. : ____________________________________________
E-Mail :
____________________________________________
Age :____________ Gender:_______________
Education
[ ] Undergraduate [ ] Post graduate
[ ] Graduate [ ] Proessionall! "ualiied

#ccupation
[ ] $usinessman [ ] Pri%ate &o'
[ ] Go%ernment #icial [ ] An! #ther
(a%e !ou heard a'out AM)A*+
[ ] !es [ ] no
,o !ou use the products oered '! AM)A*+
[ ] !es [ ] no
,o !ou orm a part o AM)A* amil!+
[ ] !es [ ] no
,o oers li-e ree gits aect !our 'u!ing decision+
[ ] *es [ ] No
.s !our purchasing decision aected '! the 'rand+
[ ] *es [ ]No
)hat is the opinion a'out the price polic! o AM)A*+
[ ] e/pensi%e [ ] cheap [ ] reasona'le
(a%e !ou aced an! pro'lem regarding the 0E12.3E0 #44E1E, $* AM)A*+

[ ] !es [ ] no
Are !ou satisied 5ith AM)A* products+
[ ] !es [ ] no
. not then please let us -no5 the reason in t5o
lines6666666666666666666666666666666666
6666666666666666666666666666666666666
666666666
Ann#7'r#:
A/!ay Ind*a 0-an. (F? n#! Aran1#. Ay 2?(J
/yes 29L y>o>y growth for the ne,t fi(e years.
Amway India /nterprises -(t .td# a major direct selling :4"5 "ompany
in the country# is planning to open 1<H new branches across the country in
the ne,t three years %by the year 2H16'. !he company is also eyeing 29 per
cent year>on>year growth for the ne,t fi(e years.
-resently# the company has 16H branches across the country. !he company
offers 119 products in fi(e categories> -ersonal care# &ome care# Nutrition
0 ellness# "osmetics and 5reat 3alue products. Nutrition 0 ellness
segment contributes around 9H per cent of Amway India?s total turno(er.

Kith an aim to strengthen our networ+ base# we are planning to
increase the number of touch points %branches' up to 6HH# by adding 1<H
new branches across the country in the ne,t two>three years. e are also
planning to launch ; to K new products e(ery year#K illiam S. -inc+ney#
4D 0 "/7# Amway India# said at a press conference during plant (isit of
reporters to its $addi facility in &imachal -radesh.
ith an aim to meet the mar+et demand# the company has just
tripled the capacity at its contract manufacturing facility in $addi
%&imachal -radesh' at an in(estment of )s. 99 crore.
KAmway?s focus in the past 2>6 years was to impro(e consumer
access and awareness# which paid off handsomely. e ha(e grown from
)s. <II crore in 2HH< to )s. 18H< in 2HHI crore o(er the past three years#
essentially as the Cuality of the Amway pic+>up centre?s has undergone a
sea change# and are more e,periential for the consumers. e are eyeing 29
per cent year>on>year growth for the ne,t fi(e years#K -inc+ney said.