The role of stakeholders
An Amway case study

Page 1: Introduction

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Amway is one of the world's largest direct sales companies. It is a global enterprise and is privately owned by the families that started the company in 1959. Amway manufactures, markets and distributes more than 450 consumer products. In the UK Amway distributes a variety of products, including: Personal Care - fragrances, body care and hair care products Skin Care and Colour...
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Page 2: Stakeholders

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Stakeholders are groups or individuals who have an interest in the decisions of the company and its business. Stakeholders can be internal to the business, such as employees, or external, like suppliers, customers or the public.  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...
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Page 3: How stakeholders affect Amway

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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...
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Page 4: How Amway affects its stakeholders

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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...
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Page 5: Ethical business

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Ethical enterprises do more than simply provide goods and services for customers. They also make a real contribution to the communities in which they operate by: creating employment and job security providing products that give consumers good value for money contributing to creating a more caring and cared-for community. Competitive advantage Businesses operate in a competitive...
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Page 6: Conclusion

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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...
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