Preview

Taking Sides Case Analysis One – Avon Products, Inc.:

Good Essays
Open Document
Open Document
816 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Taking Sides Case Analysis One – Avon Products, Inc.:
This paper will discuss and argue Avon's position on whether the grand strategy, under the leadership of Andrea Jung has its merits and if the grand strategy is properly focused and directed. In addition, discuss and argue the position if the grand strategy of Jung is not optimal and needs to be refocused (Syllabus, 2005, p. 16). Evidence will be provided supporting each argument and finally the decision rational will discuss why the weaker factors of the case study were dismissed.
Strategic management can, through long-term objective planning and strategic implementation, provide an organization the grand strategies needed in meeting its business mission, goals, objectives, and ultimately increase shareholder wealth (Pearce and Robinson, 2005, p. 19).
Discussion
Background
Andrea Jung, president and Chief Executive Officer at Avon Products, Inc. since November 1999, is faced with the strategic decision of developing a growth strategy for a 115-year-old company in the spring of 2000 (Pearce and Robinson, 2005, p. 28-1).
In the case study, Avon was "...the world's largest direct seller of beauty and related personal care products, sold to women in 137 countries via three million independent sales representatives who generated approximately $5.1 billion in annual revenues" (Pearce and Robinson, 2005, p. 28-1). Avon had had global success and brand recognition, but single digit growth indicated the company and its leadership needed to provide new direction in the grand strategies to be taken.
Argument One
The first argument is that Avon's grand strategy under the leadership of Andrea Jung has its merits and is the grand strategy is properly focused and directed (Syllabus, 2005, p. 16).
Evidence
The grand strategies that Jung has put in place for Avon are meeting with the strategic vision of Avon. The strategic objectives that Jung proposed are clearly future orientated and appear to be measurable and obtainable. In a rapidly changing market environment



References: Avon. (2005). Senior management: Andrea Jung, Chairmen and Chief Executive Officer, Avon Products, Inc. Retrieved June 25, 2005, from http://www.avoncompany.com/investor/seniormanagement/jung.html Pearce and Robinson. (2005). Strategic management (9th ed.). New York: McGraw-Hill. Syllabus. (2005). MGT/578 Strategy formulation and implementation. [University of Phoenix Custom Edition, FlexNet]. Retrieved June 18, 2005, from FlexNet Northwest, 06-11-28 MGT578, Outlook Express newsgroup: FXNorthwest.06-11.28_TFXMBA0104-MGT578.Course-Materials

You May Also Find These Documents Helpful

  • Satisfactory Essays

    National Pharma Case

    • 365 Words
    • 2 Pages

    • Emphasized the lack of effort to get the complete buy in of the middle level mangers • Highlighted whatever, little trust in the management was developed with the partnership approach, got seriously undermined in the way management team approached the business crisis with regard to people issues. • Pointed out that for success of a strategy ,regular team briefings are important which wasn’t the case with the National Pharma company.…

    • 365 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Mary Kay Case Analysis

    • 1276 Words
    • 6 Pages

    In 1999, Mary Kay’s senior executives were contemplating a new strategy. This new strategy was necessary to face stagnant sales, changing consumer trends and increased competition.…

    • 1276 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    One of her first moves in this new position was to fire the advertising company and start over with a new image and ad campaign. She was trying to separate Avon from the old image of the Avon lady that grandmas would buy their lipstick from, to something more hip, fresh, and modern. She cut the product catalog in half in order to eliminate products that were only available in certain regions and then she replace them with products that were available to all markets, including global markets. This change helped to provide consistency among the sales representatives that were the backbone of the company. She changed the Avon slogan to “just another Avon lady” in an attempt to rebrand the company and appeal to the younger consumers (Encyclopedia of World Biography). The CEO of Avon at that time was James E. Preston and he took note of Jung’s accomplishments and soon took her under his wing. She began presenting ideas and initiatives to the board members under his recommendation, this helped her to become better positioned within the company. Within only three short years, Andrea was given the role of head of global marketing. She was only thirty seven years old at the time…

    • 2014 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    Strategic Management

    • 2510 Words
    • 11 Pages

    Avon Products Inc is a well-known worldwide producer and distributor of skincare, cosmetics, and household items has been in business for the past 126 years (since 1886) was founded by David McConnell. Avon Products Inc operates in over 140 countries. I believe in Avon because I sell the products on a part-time basis for the past three years. The impact of Avon’s mission, vision, and primary stakeholders on its overall success is determined by the company’s revenue, awards, recognition, and their business strategy to remain the leading cosmetic company throughout the world.…

    • 2510 Words
    • 11 Pages
    Best Essays
  • Powerful Essays

    Hitt, Michael A., R. Duane Ireland, and Robert E. Hoskisson. Strategic Management. 6th . Ohio: Thomson South-Western, 2005. ( Pages 84, 85, 87, & 88)…

    • 3906 Words
    • 22 Pages
    Powerful Essays
  • Good Essays

    Charlotte Beers Case Study

    • 4662 Words
    • 19 Pages

    It was December 1993, and during the past year and a half, Charlotte Beers had found little time for reflection. Since taking over as CEO and chairman of Ogilvy & Mather Worldwide in 1992, Beers had focused all her efforts on charting a new course for the world’s sixth-largest advertising agency. The process of crafting a vision with her senior management team had been—by all accounts—painful, messy, and chaotic. Beers, however, was pleased with the results. Ogilvy & Mather was now committed to becoming “the agency most valued by those who most value brands.” During the past year, the agency had regained, expanded, or won several…

    • 4662 Words
    • 19 Pages
    Good Essays
  • Better Essays

    This paper is an attempt at answering weather Avon’s performance improved, declined, or remained the same from 2006 to 2007 through and analysis Avon’s financial statements from 2006 and 2007.…

    • 435 Words
    • 2 Pages
    Better Essays
  • Powerful Essays

    Flare Fragrances

    • 3543 Words
    • 15 Pages

    Bibliography: 1. Quelch, John; Donovan, Lisa. Flare Fragrances Company INC.: Analyzing Growth Opportunities. Harvard Business School. 2010…

    • 3543 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Avon Products

    • 4044 Words
    • 17 Pages

    Avon Products, Inc., founded in 1886, was one of the world's largest manufacturers and marketers of beauty products. The company was famous for its direct selling beauty business, in which a sales force of independent contractors purchased products from Avon and then resold them door-to-door, largely to their friends and neighbors. In addition, by the mid-1980s , the company was an important national provider of sub-acute health care services. Avon's Beauty Group produced and sold cosmetics, fragrances, toiletries, and fashion jewelry and accessories; it also sold gift and decorative products. While it sold several fragrances through retail establishments, most of the Beauty Group's revenues were from its direct sales operations. In 1988 Avon had 1.4 million active sales representatives worldwide, including 400,000 in the United States. Avon's other principal business group was its Health Care Group, which comprised Foster Medical Corporation, the Mediplex Group, and Retirement Inns of America. They provided home health care , operated retirement living facilities, and provided certain sub-acute health care services. Exhibit 1 gives a lO-year review of Avon's financial performance, and Exhibit 2 gives data by lines of business for the period 1982-1987. Exhibit 3 shows balance…

    • 4044 Words
    • 17 Pages
    Good Essays
  • Powerful Essays

    Assignment 2 Avon Products

    • 1419 Words
    • 5 Pages

    Avon Products, Inc. was a leading global cosmetics company, with over $8 billion in annual revenue in 2005. As the world’s largest direct seller, the company marketed to women in 143 countries via five (5) million independent Avon Sales Representatives. Avon product lines included numerous popular brand names, and an extensive line of costume jewelry and clothing. Although revenues increased in 2003, 2004 and 2005, Avon’s net income was $848 million in 2005. The company met with stiff competition in the US market from other cosmetic companies. In order to maintain its market share in the US while targeting other countries, especially China, the company drastically changed its global operating structure. This brought senior management closer to its key business geographies, strengthened global integration, accelerated information flow and positioned the company for sustainable growth. Avon expected to incur costs to implement these initiatives over the next several years, with a significant portion of the total costs to be incurred during 2006. Benefits from restructuring helped to fund a notable increase in consumer investment and improved the competitiveness of its direct selling opportunity. Additionally, the company increased investment in advertising, marketing intelligence, consumer research and product innovation. The cosmetics mogul has grown from revenues of $8 billion in 2005 to nearly $11 billion in projected 2009 revenues while delivering strong single-digit earnings growth. The company projected achievement of annualized savings of approximately $430 million once all initiatives are fully implemented for 2011-2012.Second-Quarter Operating Profit is $127 million and Second-Quarter Revenues are down 9 %.( media.avoncompany.com). |…

    • 1419 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Avon Marketing Strategy

    • 674 Words
    • 2 Pages

    Avon was established in the USA over 120 years ago by a 28 year old door-to-door bookseller, David McConnell. He discovered that the rose oil perfumes he was giving away as an added customer incentive were the very reason women were buying his books. The scene was set for him to realise a big dream, a fast-moving product line of superior quality merchandise, sold by a vast network of spirited entrepreneurs direct from the manufacturer to the homes of consumers.…

    • 674 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Avon Case Study

    • 6171 Words
    • 25 Pages

    I. Problem Statement: How will Avon Products Inc. reposition its brands image to increase customer loyalty?…

    • 6171 Words
    • 25 Pages
    Powerful Essays
  • Better Essays

    Avon Supply Chain Model

    • 2348 Words
    • 10 Pages

    The success story of Avon, the company for women and world’s leading direct seller for beauty products starts with a decentralized operation in 6 countries in 1980s to a centralized operation hub that serves 145 countries through 5.8 million independent Sales representatives which makes the company provide same quality product worldwide. The core of this success lies in the brave transformation that Avon attempted to bring throughout its Supply Chain network by smaller supplier base, longer supplier partnerships, strategy of sourcing locally and supplier collaboration, which are going to save nearly $50 million annually. The company manufactures majority of its products in house, while nearly 15% of it happens at third party manufacturers (TPMs) situated at 39 countries across 5 continents. While beauty products which include cosmetics, toiletries and fragrances rounded upto 73% of its business, the balance attributed to jewelry, gift products, lingerie and fashion accessories.…

    • 2348 Words
    • 10 Pages
    Better Essays
  • Good Essays

    Halal Cosmetic

    • 9173 Words
    • 37 Pages

    Avon is a very successful and leading global company in the cosmetics industry. It was founded in 1886 by Mr. McConnell. When Mr. McConnell was selling books he used to make his own perfumes and he used to give them to his customers, then he realized that the customers likes his perfume and it was one of the reasons why they are buying his books, so he decided to make his own cosmetics company and now Avon is one of the best cosmetics company in the world. Avon Company was renamed after a river that runs through the English midlands.…

    • 9173 Words
    • 37 Pages
    Good Essays
  • Powerful Essays

    Case Study on Avon

    • 2845 Words
    • 12 Pages

    Avon is one of the diversified cosmetics company in USA and they have implemented several strategy in order to attract more customers for their products. They have the best strength i.e. channel of distribution, loyal customers and the marketing segment which contribute more on the success of sales. However, they have certain problems such as bad-debt, new trend for green products and their not so good homey image. Avon need to implement the strategic plan laid out in this study if they are going to remain relevant to their loyal customers and simultaneously keeping a good reputation and making their name synonymous with glamorous image and good quality products.…

    • 2845 Words
    • 12 Pages
    Powerful Essays