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| Controlling
Upromise.com (Principles of Management)
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Upromise is a fast growing company which main aim is to
get corporate America to help families save for college. But
despite such a noble goal many wander whether the company
will succeed or probably it will fail and at this respect
the efficient management plays the main role for the company’s
success.
From the beginning it is necessary to underline that one of
the basic principles of the company management was the orientation
on consumers. In other words, the interests of the company’s
clients were and remain the primary concern that is an essential
condition of a market success of any company. In such a situation
customer loyalty has become one of the main principles of
the operation of the company.
At the same time, it should be point out that initially the
company was supposed to be non-profitable but gradually Bronner,
the head of Upromise came to the idea that the organization
has to be for-profit in order to be competitive and survive
in the market. By the way, the management team of Upromise
is often characterised as possessing star power (for instance,
Bronner was a pioneer in a so-called affinity marketing, namely
he helped to develop the American Express Membership Reward
programs that he successfully applied to Upromise) that is
very important because personal qualities and high professionalism
and certain gifts contribute to effective management.
Furthermore, Upromise is not an isolated organization it develops
relations with its partners in such a way developing its market
power. Among its partners are Fidelity and Salomon Smith Barney,
which offer 529 plans and if one signs up those plans Upromise
gets a fee. Moreover, recently Upromise partnered with Vanguard
to launch its own 529 plan, the Upromise College Fund. To
start it the company raised 12 million dollars to set up expensive
technology and hire new staff and currently it collects a
management fee for running that fund.
In conclusion, it is possible to say that the focusing on
consumers interests and employing professional managers permitted
to create an effective management, using innovations in management,
that results in the rapid progress of the company and its
growing attractiveness to a wider demographic.
Bibliography:
1. Adler, C. “A Killer Idea: Upromise”, FSB. Feb.
2003.
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