Controlling (Principles of Management)

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.

1. Adler, C. “A Killer Idea: Upromise”, FSB. Feb. 2003.

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