Market of the Amway Company's Products - Research Paper Example

Comparison Paper

• INTRODUCTION
  • AUTHORISATION AND PURPOSE

This reported has been authorised by Mr Kopman who has been working for the Amway company. The key idea of the report consists in the fact that companies that have entered in network marketing are located more or less close to modern market reality. Network companies (including those ones which work in the style of Amway) reach high performance by applying just one powerful tool in the long run. The main approach / method / tool is motivation (Sagar & Agarwal, 2012).

• • LIMITATIONS

This report is limited by the various level of the company's location in different countries. In addition to this, the black market of the Amway company's products has not been studied in detail.

• • SCOPE

The report deals with the HR education process within the company in order to make the employees more motivated and guide them in distribution of the company's products.

• THE ORGANISATION AND CONTEXT
  • BACKGROUND

The obvious high efficiency of Amway company is most based on the personal efforts of ordinary workers. What makes workers not only make great efforts to promote products, but also to attract new employees, actively promoting the value systems of their organization? In terms of Amway company, the human factor will always play great value in the socio-technical system. To implement the set plans of a rational organizational structure of the company, it is of a great importance to interest the workers in achieving their goals (Sagar & Agarwal, 2012). The employees' motivation in network technology of the Amway company uses very different mechanisms and incentives for employees based on the following principles such as,

• the use of simple and clear basic set of values of the organization and the original loyalty;
• culturing business philosophy, according to which the main benefit a man can make to the organization – this gives them a wide field of activity and income opportunities;
• activity satisfaction of ambition, a certain social status, recognition of the group, and only secondarily financial motives.
  • INDUSTRY ANALYSIS

The influence of human opinion is formed in accordance with the certain personal philosophy, which produces the corresponding attitude to life, then people set a goal, wanting to improve their own life. As a consequence, in order to achieve the goal there is a constant need in a good plan of action, realizing that in life, people achieve the desired – the quality and style of life, the way they want. Motivation to achieve a particular stage in Amway is actively used for personal conversations, recruitment, sales, during the domestic circles and presentations. The company functions in 38 countries and employs approximately 45 thousand people (Liang et al., 2015).

After analyzing and comparing capabilities with the strengths of the Amway company, it became possible to state that the company has a good reputation, high quality goods, which makes it possible to enter new markets. In addition, an active marketing policy, financial support and professional guidance can reduce or avoid the threat of poor consumer awareness of the brand. Building on the strengths of the direct selling method, it can reduce the threat of applying a flexible price policy to combat competitors.

One of the weaknesses to pursue opportunities may be a risk of the implementation of innovations. The new product, which is required for the production of investment in research and development will probably be unclaimed. In addition, the lack of motivation in the Amway company could lead to the fact that valuable employees will go to competitors.

The main threats, compounded by weaknesses for the Amway company will be the launch of the competition before the new product and the emergence of a new competitor in the field of direct sales. Thus, SWOT-analysis of Amway company has allowed us to study the existing market opportunities and weigh their ability to use them. Also in this case studied by the threat that could undermine the position of the company.

So far having considered aspects of internal and external analysis, it is possible to state that the company has five options for strategic development: leave it unchanged; ensure that internal growth; choose a strategy of external growth; make the withdrawal of investments; to enter the international market.

With regard to external growth, it is possible to allocate a direct vertical integration, it can solve the problem of the existing distribution network of the company, which is extremely expensive and is not able to meet the needs of the enterprise to distribute products. In addition, high-quality distribution network can be limited, which gives a competitive advantage to those companies that have it. The company Amway possesses capital and labor resources needed to cope with the new work on the distribution of its own goods.

The advantage of this strategy is that there are new opportunities for savings that can be realized. These include better coordination and management, reduced handling and transportation costs, better use of space, facilities. Among the shortcomings can be identified tendency to increase the proportion of fixed costs.

• • ORGANISATIONAL STRUCTURE

The organizational structure of the Amway company consists in the ordinary network marketing approach. However, the main essence of the company's structure is not the financial benefit but development – i.e. the authority and prevailing which are obtained by the means of the higher position (Sagar & Agarwal, 2012).

• • THE POSITION/TRAINEE

The trainee is Milly Longman. She has been working for the company since March 2005, and achieved the numerous rewards. Furthermore, she developed her own network of employees who brought her stability in income and the necessary position requirements.

• TRAINING NEEDS ANALYSIS
  • ORGANISATIONAL ANALYSIS

In order to judge whether the personnel management system is effective, it is necessary to develop evaluation methodology to determine the real situation in the company in the field of personnel management, identify weaknesses and make recommendations for its improvement. This is an important part of the organisational analysis. In terms of competition for the improvement of consumer activity units engaged in marketing of products, it is one of the priorities of businesses. Implementation of the basic functions of units involved in the sale of products, involves finding a variety of forms of the organization of their activities. In particular, as shown by international experience, the organization of activities in the form of reduced costs distribution network's enterprises, provides an individual approach to service users and effective feedback to them, as well as high material interest of workers in the final results of their labor. distribution networks of enterprises staff working on temporary or part-time work and other non-standard working hours, with no fixed workplace and tasks on product sales. The most common forms of payment is a percentage of sales, bonuses and commission payments.

• • MISSION, GOALS AND OBJECTIVES

The problem of motivational speeches that have emerged from the audience's desire to do what the speaker says. In fact, it is important to remember about the encouragement of the employee to the selection of important objectives and plans, embodying that the employee at the same time helps the company fulfill its mission, and seeking in itself the hidden reserves of energy required to operate (Liang et al., 2015). Thus, in network companies offer employees the finished program service growth, which is clearly linked to measurable quantitative results of the work, such as the Amway company.

• • SOCIAL INFLUENCES

Practice has shown that the effective implementation of functional duties in distribution of the network personnel in many respects depends on the training and their social orientation and influence (Ishimoto et al., 2013). The recommendations on the organization of professional development of distribution networks of enterprises, including the gradual development of functional responsibilities and methods of training sessions: work study techniques and indicative demonstration; Practical training and development of skills in teaching and role-playing games; a joint practice with the immediate supervisor; independent practice under the supervision of the head; consultation on the improvement of professional skills. In order to standardize the process of training and certification of distributors qualification level, the sequence of development of functional responsibilities has to be complemented by a program of study in which the course is designed initial training distributors and basic list of knowledge, skills and abilities required for the effective functioning of the lower-level staff (Yaziz et al., 2015). For the implementation of the proposed training program used educational presentations, workshops, training courses, information technology and others. In order to prepare personnel middle and upper levels designed curriculum leadership skills and leadership.

• • REWARD SYSTEMS

In parallel, there are incentive programs for sales volume. However, as has been said, the priority is given to improve the program status rather than the financial one. For this purpose, the network marketing possesses the following principle: “Everyone gets along with the problem of energy to solve it.” From this, it follows that a person has only energy to solve problems, and the more his desire to solve the problem, the more need for this energy there is. Thus, the reward system is of a great importance.

No less important the objects imaging achievements are. The whole system of signs is elected in the network company, it is a sign of a successful business and career (Yaziz et al., 2015). The Amway company appreciate their distributors, regardless of the fact of what material values ​​they represent. It may be icons, clock, stick, bags, wallets, organizers and other business subjects, as well as various jewelry with the company logo. The moral value of these things is actively cultivated now, they solemnly handed, with their receipt congratulations on getting them widely disseminate information within the company.

• • JOB DESIGN

The job represents an ordinary approach to the network marketing.

• • JOB PERFORMANCE

The job performance within the Amway company is evaluated in accordance with the number of products sold. However, in order to rise these amounts, it is important for the HR to work more and more in order to motivate people.

• • METHODS AND PRACTICES

In the management of personnel, in my view, the assessment of the problem of motivation and rewards remains the least developed in theoretical and practical terms. To date, there is no single or standard approach to solving the problem of personnel evaluation, but there are a number of works covering project management issues, and a number of studies on the evaluation and certification of personnel (Yaziz et al., 2015).

Criteria and methods for evaluating the quality of human resources in the Amway company are changing in accordance with changes in the nature of work. For instance, before, the workers were requested to perform a high level of professional knowledge, now more and more importance is attached to their human qualities, such as communication skills and ability to work in a team of professionals, the ability to generate new ideas and implement them. Therefore, in modern conditions the problem of certification and evaluation of personnel are particularly relevant.

• • ORGANISATIONAL TRAINING NEEDS

The main task of the personnel evaluation consists in helping a line manager in human resources management: development on the basis of their personal staff's capabilities and strategic goals of the organization or project. The manager in the evaluation system of the efficiency of the staff in the company is expected to be trying to find answers to the following questions:

• Is there a surplus or, on the contrary, lack of workers in certain sectors of the project?
• Who are the employees of “ripe” to move to a higher position in the project? Who “ripens” in the near future?
• Who is dissatisfied with their situation and thinking about moving to another job (maybe even competitors)? Who did not cope with the work?
• Is it necessary to create or develop a sphere of staff training (training, internships, training)? Do employees need further training?
• Is it necessary to review the system of remuneration?