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.
