ARTICLE [News Card] Continuity, Velocity, Balance (ENG)
[News Card] Continuity, Velocity, Balance (ENG)
Continuity, Velocity, Balance
The First Duty of a Company is to Survive
The characteristics of a company that lasts
Survival is the fundamental task of any company, and is also an important social responsibility. A vision or goal is meaningless to an organization that does not survive. The worst sin a CEO could ever commit is to lead the company to bankruptcy. If a CEO fails to efficiently manage the human and material resources, it inflicts damage upon not only the executives and employees but also on many people involved. If the resources can be managed rationally and costs minimized, the company will be able to survive at least.
Once a company has gone beyond the stages of survival, it must create new values in order to last. Speed is the key in value creation and having speed in the right direction is crucial. Finally, having balance in the distribution of the created values determines the sustainability. Sharing is made according to the Law of theMinimum in Atomy and balanced distribution is essential in increasing the utility of the limited values and promoting sustainable growth.
Eliminating fixed expenses for “Survival”
Profit is essential for ensuring the survival of a business. A distributor can simply add enough margin profit and fees on top of the purchasing cost of the products. Atomy’s approach is different, however, because it must be beneficial not just to the distributor but to everyone involved, including the manufacturers and the consumers. Lower purchase costs may result in a poor quality or jeopardize the survival of the manufacturers. Added fees and profits may result in a loss for the consumer. It is for these reasons that Atomy works fiercely to minimize its own costs. This strategy, or the “razorblade management” is focused not only on minimizing unnecessary costs also maximizing the productivity of the employees. Atomy’s annual sales per capita was 5.5 billion KRW in 2019, which is significantly high not just in the direct selling industry but also compared to many other conglomerates. Even at such high productivity, the company can be operated with just half of the workforce.
The speed and direction in “Velocity”
Only when speed has a precise direction can a desired velocity be achieved. Atomy is focused on both speed and direction, because the faster you go in the wrong direction, the more significant is the damage. Working faster to increase the efficiency and reduce the costs has always been the direction of Atomy. The amount of water passing through a pipe is proportionate to the diameter of the pipe and the speed of the water. This means that even a narrower pipe can carry more water at a faster pace than a wider pipe. Atomy increases the efficiency of its investments through speed rather than the diameter of the pipe.
As the information technology became more advanced, the systems in which anyone can receive the same content anytime and anywhere became far superior to the oral traditions in terms of speed and content integrity. The information of Atomy is not only transferred verbally but also thorugh the broadcasting and online systems, becoming more competitive in the global market. As the concept of on-tact became a new standard during the pandemic, Atomy reacted promptly by taking the seminars online completely.
The righteous and fair distribution in “Balance”
The created values are not the works of Atomy alone. It is the result collaborationg not just with the partnering companies* and consumers, but also with the society as a whole. It is Atomy’s philosophy that its achievements should be shared. The balanced distribution enhances customer loyalty, leading to repurchases and thereby contributing to the sustainable growth. If a system satisfies all stakeholders, such as the consumers, distributors, and partner companies, the cogwheels will be engaged smoothly. A wooden barrel made from boards of different heights will only hold water up until the shortest board. No matter how high the others are, the water cannot fill beyond the shortest board. This “Law of the Minimum” illustrates just how important balanced distribution is.
The First Duty of a Company is to Survive
The characteristics of a company that lasts
Survival is the fundamental task of any company, and is also an important social responsibility. A vision or goal is meaningless to an organization that does not survive. The worst sin a CEO could ever commit is to lead the company to bankruptcy. If a CEO fails to efficiently manage the human and material resources, it inflicts damage upon not only the executives and employees but also on many people involved. If the resources can be managed rationally and costs minimized, the company will be able to survive at least.
Once a company has gone beyond the stages of survival, it must create new values in order to last. Speed is the key in value creation and having speed in the right direction is crucial. Finally, having balance in the distribution of the created values determines the sustainability. Sharing is made according to the Law of theMinimum in Atomy and balanced distribution is essential in increasing the utility of the limited values and promoting sustainable growth.
Eliminating fixed expenses for “Survival”
Profit is essential for ensuring the survival of a business. A distributor can simply add enough margin profit and fees on top of the purchasing cost of the products. Atomy’s approach is different, however, because it must be beneficial not just to the distributor but to everyone involved, including the manufacturers and the consumers. Lower purchase costs may result in a poor quality or jeopardize the survival of the manufacturers. Added fees and profits may result in a loss for the consumer. It is for these reasons that Atomy works fiercely to minimize its own costs. This strategy, or the “razorblade management” is focused not only on minimizing unnecessary costs also maximizing the productivity of the employees. Atomy’s annual sales per capita was 5.5 billion KRW in 2019, which is significantly high not just in the direct selling industry but also compared to many other conglomerates. Even at such high productivity, the company can be operated with just half of the workforce.
The speed and direction in “Velocity”
Only when speed has a precise direction can a desired velocity be achieved. Atomy is focused on both speed and direction, because the faster you go in the wrong direction, the more significant is the damage. Working faster to increase the efficiency and reduce the costs has always been the direction of Atomy. The amount of water passing through a pipe is proportionate to the diameter of the pipe and the speed of the water. This means that even a narrower pipe can carry more water at a faster pace than a wider pipe. Atomy increases the efficiency of its investments through speed rather than the diameter of the pipe.
As the information technology became more advanced, the systems in which anyone can receive the same content anytime and anywhere became far superior to the oral traditions in terms of speed and content integrity. The information of Atomy is not only transferred verbally but also thorugh the broadcasting and online systems, becoming more competitive in the global market. As the concept of on-tact became a new standard during the pandemic, Atomy reacted promptly by taking the seminars online completely.
The righteous and fair distribution in “Balance”
The created values are not the works of Atomy alone. It is the result collaborationg not just with the partnering companies* and consumers, but also with the society as a whole. It is Atomy’s philosophy that its achievements should be shared. The balanced distribution enhances customer loyalty, leading to repurchases and thereby contributing to the sustainable growth. If a system satisfies all stakeholders, such as the consumers, distributors, and partner companies, the cogwheels will be engaged smoothly. A wooden barrel made from boards of different heights will only hold water up until the shortest board. No matter how high the others are, the water cannot fill beyond the shortest board. This “Law of the Minimum” illustrates just how important balanced distribution is.