Avon Company

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Final Project – Business Strategy

Strategy Formulation – Avon Products Inc.

Group Members|
Bushra Nazeer| 094532-119|
Adnan Nazir| 111534-030|
Saqib Latif| 094532-105|
Akeela Tufail| 094532-080|
Saima Naseer| 094532-131|
Muhammad Waqar| 111534-028|

Submitted to: Mr Mohsin Rauf
Date: Aug 4, 2012

Contents
Final Project – Business Strategy1
Strategy Formulation – Avon Products Inc.1
Executive Summary4
Scope4
Introduction – Avon Products, Inc.5
History5
Establishment of the Company5
Growth since WWII5
Portfolio and Current Position5
Avon’s Values6
Trust6
Respect6
Belief7
Humility7
Integrity:7
Vision Statement (Proposed)7
Mission statement7
Actual Mission Statement7
The Global Beauty Leader7
The Women’s Choice for Buying8
The Premier Direct Seller8
The Best Place to Work8
The Largest Women’s Foundation8
The Most Admired Company8
Proposed Mission Statement8
Strategy Formulation Framework – Input Stage9
External Factor Evaluation (EFE)9
Steps9
EFE Matrix10
Score Interpretation10
The Internal Factor Evaluation (IFE) Matrix11
Steps11
IFE Matrix12
Score Interpretation12
Competitive Profile Matrix (CPM)13
Strategy Formulation Framework – Matching Stage14
SWOT Matrix14
S-O Strategies14
S-T Strategies15
Boston Consulting Group’s Matrix17
Strategic Position and Action Evaluation (SPACE) Matrix18
Calculations18
SPACE Matrix19
Analysis:20
Grand Strategy Matrix21
Strategy Formulation Framework – Decision Stage22
Quantitative Strategic Planning Matrix22
Steps22
Guidelines22
QSPM23
Score Interpretation23
Recommendations24
Improve Urban Image24
Penetrate Chinese Market24
Enter Men’s Cosmetics24

Executive Summary
This study on Avon Products Inc. has been an effort to apply the theories of strategic management to a working corporation. We have focused on the Strategy Formulation part, and covered all the steps involved in the formulation of strategy. Starting with a background introduction to company, we have made a brief commentary on existing mission statement and values. We have identified key external and internal factors liable to affect the firm's performance in the marketplace, and summarized their impacts in Internal/External Factor Evaluation (IFE/EFE) tables. We assessed the firm relative to competitors in Competitor Profile Matrix (CPM) to complete the Input Stage of our Strategy Formulation framework. The matching stage generates and identifies relevant sets of strategies for Avon through SWOT Matrix, Strategic Planning and Action Evaluation (SPACE) Matrix, Boston Consulting Group's (BCG) Matrix, Internal-External Matrix, and Grand Strategy Matrix. Quantitative Strategic Planning Matrix has been employed to weigh strategies against each other to evaluate their relative attractiveness for firm. The discussion concludes with a list of recommended strategies for Avon on the basis of their QSPM scores. Scope

Our scope in this effort will be limited to the Formulation part of the Strategic Management framework. We will apply all the relevant tools and techniques for an effective strategy formulation. However, the implementation and feedback stages will be out of our scope in this study.

Introduction – Avon Products, Inc.
History
Establishment of the Company
David H. McConnell founded the “the California Perfume Company” in 1886 with the first office located in New York. In 1906, the San Francisco earthquake destroyed CPC’s California office. By this time they have 10,000 representatives and Depot manager selling 117 different articles in 600 styles and package size and also produced the company first color brochure at that time. The company reopened its first office outside the U.S. in Montreal Canada in 1914.in 1920’s CPCP sales doubled to$2 million during this time there were more than 25,000 representatives in the United...
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