Shaklee Corporation| A New Idea That Has Old Roots | Corporation Analysis| Sean 10/11/2012 | Contents 1. Introduction to Shaklee 2. S. W. O. T Analysis 3. Leveraging Resources a. Motivating small business owners 4. Foreign Investments a. Japan’s Yamanouchi Pharmaceuticals Co. 5. Moral Courage a. Much needed trait b. Current Leader 6. Management Structure a. Corporate b. Local c. Global 7. Future Expansion a. Indonesia b. Cultural differences c. Ethical and moral issues 8. Obstacles in New Country a. Laws and regulations b. Economics d. No currency issues . Conclusion a. Opinion on future The world as we know it is forever changing and now more than ever people on this planet are looking for ways to improve their health and lifestyles. It don’t stop there, at this moment many believe our planet is in trouble and are now looking for green products to protect future generations. There are many different companies that are moving toward this but there is a business that has made it their goal to be green since its inception in 1956 the Shaklee Corporation. The company was founded by Dr. Forrest C.
Shaklee a well-known scientist and nutritionist, who started the company on just one product and a sales plan that relied upon people reaching out to help other people. Since then Shaklee has grown to global proportions and now has over 200 products from cleaning solutions to sports nutrition. They have recently had a change in leadership and he is pushing the company to new heights beginning to move business to larger countries. There are many obstacles when it comes to moving a corporation to another country and the company does well with making sure to have a strong management team.
Knowing this there are many strengths that Shaklee enjoys but also may be limiting their potential. Many people do not know that this company exists since they do not participate in the same marketing style as mainstream America. Needless to say the company stands by its way of marketing and believes in it for several reasons. A simple way to look at the strengths of a company is S. W. O. T. analysis and this company has many different concepts to take into account: Strengths| Weakness’s| Opportunities| Threats|
Market PositionWide array of productsCustomer retentionNo animal testingGrowing businessNo impact on environmentEndorsements from athletesHave kept increasing in revenue through recession| Can’t purchase anywhereNot much advertisementMore mainstream athlete endorsementLong term management has stagnated in their operational effectivenessPricey products for average income| Product development is very strong and with owners who believe in productsNew International MarketsSmall business opportunities are becoming more prevalentChanging in values of world going green they are already establishedNo one wants to look old and they have more and more products centered around health a growing marketAlways finding new customers from independent distributors|
Businesses are moving in this direction of greenPeople may not want to buy products from internet they tend to just get the things at the storeHard to take over the everyday wasteful products people have been using for decadesSupplement market is already overwhelming and unregulated| Shaklee is a company that has been driven to new heights ever since new ownership was taking over in 2004. This company is the first to make consumer products completely green and use 100% green power. They continue to grow and are really trying to move toward more countries around the world. They also have to beware of the entire green movement and companies may start moving in the same direction quickly because, saving the planet is becoming more and more prevalent in today’s society.
It is also very tough to create a corner in the industry if people largely do not know the company even exists due to its personnel distribution process. Shaklee has always relied upon direct selling and people who truly believe in the product to get the word out. You cannot find their products on a shelf in a store and because of this; they have been able to retain customers for longer periods of time an average of 15 years. This number would actually be higher but they have extended their range of business and have many new consumers now. The people who sell the product truly believe in its benefits and they make sure to keep motivated by having a number of incentives. They offer opportunity to go on trips, win vehicles, and opportunity to move up through the company with dedication.
Holding seminars to make sure that employees are properly recognized for their work and making corporate leaders available to speak with any employees is a staple of the company. Also gives employees a flexible schedule so they can enjoy time to themselves and this seems to be one of largest draws of working for them. Also it is simply more powerful to hear about a product from a friend than it is just on a television screen and it gives the product more credibility. But all this would not be possible without having investors from domestic and foreign companies. The company made a leap to a fortune 500 company in 1982, at this point they began sponsoring Olympic athletes and even an accent to Mt.
Everest that was the first not to use supplemental oxygen. Instead the climber used only Shaklee powered nutrition. The company was purchased by Yamanouchi Pharmaceuticals Co. in 1989 but failed to expand as quickly as it could have under this new management. Regardless during the period that they were owned by Yamanouchi, Shaklee did manage to be the first company in the entire world to totally offset its carbon emissions, resulting in a net-zero impact on the environment a conquering feet in today’s society of damaging emissions. The company would again be found under new leadership by 2004 and this is when Shaklee begins to grow to its full potential.
The company would be purchased by Ripplewood Holdings and Activated Holdings and name a new CEO Roger Barnett. This new CEO is very active in the company and has visions of dominating the industry as they are and have been the number one natural nutrition company in the U. S. He is not afraid to embark on new endeavors and has made it possible for the company to expand into new proportions. Roger has set a very high bar for each and everyone involved in the company and displays leadership qualities that are contagious throughout the company. Under his leadership the company has begun to expand into new countries and most recently a beginning in Indonesia.
They also have a strong presence in Canada, China, Japan, Malaysia, Mexico, Taiwan, and of course the U. S. Roger possesses a much needed trait in today’s business, which is the courage to bring products to people who may not have the income we enjoy here by making it affordable by that particular countries income, while still sticking to all the companies’ guarantees. The company also believes in helping charities of all types and even helped power an African village. Roger has had the company expand its product lines to new proportions and promises to continue to innovate and become even more diverse year after year. It is an effort of many people to make all of this happen and you must have good leadership around you to be successful.
Most strong companies have very strong management team and Shaklee is no different, with many different levels of management that are committed to the company and products it makes. Although you are essentially your own boss when working for the company there are leaders that have responsibility. At the corporate level, Shaklee relies upon basically nine people and the CEO to take care of major policies at the company’s headquarters, which is located in Pleasanton, CA. These include a financial officer, marketing coordinators, chairman for global and medical research etc.
The local level is comprised of many different levels and it starts with a branch manager. The company relies on various levels below managers n each individual office so there is always someone to learn from and keep you motivated. All these positions lead the same way in the global structure of the company. Shaklee has been able to keep the same direct selling attributes that it uses in America. When moving into a new country having the right management is crucial, because there are so many differences in culture. Shaklee has set its sights on many places and most recently it is Indonesia. They have just opened business in the country June of 2012. When beginning an endeavor there are many things to take into consideration one includes the cultural differences that they must overcome.
Although the country does not live too much differently than Americans do they do eat much differently than us due to economic conditions. Products must have different ingredients in order to be able to use them in other countries such as Indonesia. Also the diversity of this country is prevalent they have several different languages and thousands of islands, which all have their own separate beliefs and backgrounds. People in this country are also softer spoken so they do not accept loud speaking and forceful conversation. Also businesses from America must take into account that the average Indonesian does not live the lavish lifestyle. So Shaklee has been able to develop products that are affordable for the average citizen in Indonesia.
With a new company new opportunities arise for a country that has few, having a way to enjoy an income in Indonesia is very hard to come by. As Shaklee begins its opportunity in Indonesia the company must consider that the country is not as advanced as the U. S. Labor is much cheaper but skilled workers are much more difficult to come by. The company has to put a lot more money into training of the workforce and making sure products are made properly. The next issue that concerns the company is the political and economic turmoil of Indonesia. Shaklee must go to extreme heights to protect all their investments. Business in the country must be aware of the high crime rate there are a number of problems with corrupt legal systems.
The company’s assets are always at risk of fraud, laundering, and also theft of property. Shaklee must also know that anything that is to be imported and consumed is subject to analysis from the Food and Drug Administration. The company must also undergo the pain staking process of securing materials, buildings, and a strong workforce to have ideal operation. There are many positives when it comes to business in this country. Shaklee is able to operate under 100 percent control as the government does allow this in Indonesia which is not always the case. The country also is the fifth most populous in the world so the market for the product is enormous.
Also the currency is freely exchanged in the country so it is very easy for the company to convert from Indonesia’s rupiah to U. S. dollars. With this emerging economy the laws and regulations are constantly changing as they learn how to protect the companies in its respective country. The future of Shaklee is undecided but it has enormous potential to dominate the market. Although Shaklee is the number one natural supplement producer in the world I think the company needs to move toward more of the BRIC countries. They do have a base in China, but now they must move into the other 3 countries. There are currently no plans to go into Britain or Russia, but the company has set its sights on India and plan on beginning business there sometime in the next couple years.
I also believe the company would benefit from more mainstream advertising to get people familiar with the company and products. But, Shaklee does need to stick to its direct selling methods and keep making progression into new markets. Shaklee’s mission is to “provide healthier life for everyone and a better life for anyone. ” They are a one of kind natural and completely green company and this instills credibility and longevity with their clientele. I expect the corporation to continue to grow immensely as people become more aware of what they put into their bodies and possibly be a household name in nutrition supplies throughout the world.
Works Cited Bower, Amanda. “Putting the Green into Clean. ” Time 19 Nov. 2007: n. pag. Web. Peng, Mike W. Global Business. Mason, OH: South-Western Cengage Learning, 2009. Print. “Shaklee Corporation: Providing a Healthier Life for Everyone and a Better Life for Anyone. Health, Wellness, Nature, Opportunity. ” Shaklee Corporation: Providing a Healthier Life for Everyone and a Better Life for Anyone. Health, Wellness, Nature, Opportunity. N. p. , n. d. Web. 12 Sept. 2012. <http://www. shaklee. com/index. shtml>. E-mail interview. 09 Sept. 2012. N. p. , n. d. Web. 08 Oct. 2012. <http://www. doingbusiness. org/law-library/indonesia>.
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