Amway profiled in “the Fraud Files blog”
no affiliation with me. This blog is maintained by a gutsy CPA, MBA, and I love this, only in America, “Certified Fraud Examiner”. She has a posting up on why she questions the business model of Amway.
Obviously, she is a numbers person, as her data and logic is similar to mine.
http://www.sequence-inc.com/fraudfiles/2008/07/21/amway-sucks-quixtar-sucks-alticor-sucks/
ibofb:
LOL! Now we have it confirmed beyond doubt you have no interest in objectivly analysing the Amway business!
My mistake really …. I actually thought you were interested in a rational discussion, not simply rationalising your existing misconceptions.
Tell me, if you so interested in Amway, why haven’t you read books like The Direct Selling Revolution: Understanding the Growth of the Amway Corporation, by Professor Dominique Xardel, Director of ESSEC, one of the world’s top business schools. Or Empire of Freedom: The Amway Story by James W. Robinson, Senior Vice President of the US Chamber of Commerce and past advisor to the Reagen administration. Or how about any of the books by Professor Charles Paul Conn of Lee University? Or perhaps checked out the opinion of President George H Bush, who has praised Amway and spoken at Amway conventions. Or how about Vice President Al Gore, who presented Amway with a Corporate Award in 1997. or how about the UN, who gave them an award in 1993? etc etc etc … check out Amway Awards & Recognitions and Endorsements on Amway Wiki for just what we’ve been able to collate so far.
Then wonder if perhaps there’s something you’ve missed …..
Posted on November 17th, 2008 at 11:17 am
Mr. Contrarian:
Sorry. Awards don’t mean much to me. This is a business blog. I look at $$ and cents, profitability, and ROE/ROI. Awards from politicians who may or may not have received campaign fundraising donations from Alticor or its subsidiaries, don’t hold a lot of weight, and speak nothing of the business model, its robustness, or its need for improvement or wholesale redesign.
Mr. IBOFB, since you know so much about all the corporate awards that Amway has been provided with, then can you confirm for me donations that Amway/Alticor or its affiliates have made to political parties over the past ten or so years?
I don’t receive a cent from anyone, for or against Amway. Any public corporation must declare its political or partisan contributions. Alticor, being private, has no such obligation. That being said, awards from “politicians” or even academics, become suspect. As for the professor from Lee University, did he receive Alticor funds for his research endeavours?
The bottom line, is the bottom line. $$$ and cents.
Amway North America is a $1B/year business in North America. The business model is not successful. Period.
Posted on November 17th, 2008 at 11:55 am
ibofb:
Amway’s owners are very strong Republican supporters, sites like opensecrets.org can give you more details. I’m not an American, but if I was I’d be a registered Democrat.
None of the books I cited were funded in anyway by Amway. I believe a book about Amway’s history by Wilbur Cross was commissione by Amway.
A $1billion dollar award winning company that’s ranked #1 in it’s category in North America and has made it’s owners billionaires is “not successful. Period.“???
You have an interesting way of determining “success”.
Posted on November 18th, 2008 at 4:45 pm
mr contrarian:
A retail model that is grossing only $1B of sales in the North American market, after 50 years in business, is not a success in my eyes. When Avon is selling $2.5B of cosmetics in North America, and Amway North America is doing only $1B from its entire product line, that shows the room for improvement, and the lack of success of the current business model. Just as I shouldnt’ be attacking Amway for the things they are doing right, or the constructive changes that are being made, you shouldn’t be defending them for the things they are doing wrong, or the constructive changes that have yet to be made.
$1B in sales after 50 years in the retail space, shows considerable room for improvement.
Posted on November 19th, 2008 at 12:20 am
ibofb:
Well, know you’re moving the target. If we’re going to talk just about Amway North America then we’re mostly in agreement, and so is Amway, which is why they have made so many dramatic changes in North America in the last 2 years.
Don’t expect immediate results though, especially when the changes including terminating a substantial amount of the sales force and p***ing off a large portion of the remainder. Sometimes it’s gotta hurt before things get better.
Posted on November 19th, 2008 at 4:48 am