Proposal for Avon - benefits of redesign
4.0 Benefits
This analysis is the first step of analysing the current issues Avon is facing at the moment and which are preventing the company from restoring its international prominence. We have already examined in details the problems Avon is facing in previous chapters. To sum it up,
Avon is coupled with more recent issues like stumbles in major overseas markets, two failed and botched restructurings, dwindling profitability, weakness in its U.S. business and the SEC investigations into allegations of bribing foreign officials and improperly disclosing information to Wall Street analysts. Avon has also failed to cope with critical issues, ranging from a rejected takeover, a huge drop in the number of sales representatives to poor sales results and decline in growing markets for beauty. (Coleman-Lochner, 2013).
New CEO’s long-term task is to discover a way to boost Avon’s profitability and growth. But shorter-term, she’ll face the question of what to do about Avon’s dividends, which are no longer covered by the company’s earnings. The board may have to consider a total organizational restructuring and more modernized model - one that may leverage the internet for online shopping. The board's lead independent director said in a press release they already intend to strengthen overall management capabilities and put the company back on a growth track (Karp & Lublin, 2011). In order to successfully establish it across the organization they will have to build strong global leadership skills. They need to find and develop people who have the ability to lead in a multilingual and multicultural world. The important basic recommendation for Avon leaders in this period of transition is to create and implement the right strategy by analysing global leadership skills and improving them to support successful strategy implementation. Uncertainty can trigger all kinds of behavioral and emotional reactions from leaders and the people who are affected by the
This analysis is the first step of analysing the current issues Avon is facing at the moment and which are preventing the company from restoring its international prominence. We have already examined in details the problems Avon is facing in previous chapters. To sum it up,
Avon is coupled with more recent issues like stumbles in major overseas markets, two failed and botched restructurings, dwindling profitability, weakness in its U.S. business and the SEC investigations into allegations of bribing foreign officials and improperly disclosing information to Wall Street analysts. Avon has also failed to cope with critical issues, ranging from a rejected takeover, a huge drop in the number of sales representatives to poor sales results and decline in growing markets for beauty. (Coleman-Lochner, 2013).
New CEO’s long-term task is to discover a way to boost Avon’s profitability and growth. But shorter-term, she’ll face the question of what to do about Avon’s dividends, which are no longer covered by the company’s earnings. The board may have to consider a total organizational restructuring and more modernized model - one that may leverage the internet for online shopping. The board's lead independent director said in a press release they already intend to strengthen overall management capabilities and put the company back on a growth track (Karp & Lublin, 2011). In order to successfully establish it across the organization they will have to build strong global leadership skills. They need to find and develop people who have the ability to lead in a multilingual and multicultural world. The important basic recommendation for Avon leaders in this period of transition is to create and implement the right strategy by analysing global leadership skills and improving them to support successful strategy implementation. Uncertainty can trigger all kinds of behavioral and emotional reactions from leaders and the people who are affected by the