Avon Products Case Analysis Essay Sample

What extra actions would you urge AJ take to assist accomplish its long-run strategic and fiscal aims? It’s execution attempts? What challenges might the new scheme present to Avon’s top direction squad? What risks do you see?

Andrea Jung has done an exceeding occupation of placing the jobs of Avon Products. Inc. developing a strategic vision. and sketching a program to clearly pass on and run into the ends and aims of the vision. She doubtless recognized the assorted countries within the company that were in desperate demand of betterment. in order to hike the success of the company.

There are seven major facets of Andrea Jung’s strategic executing and their concern consequences presented within the instance. AJ recognized the first and most of import alteration needed within the Avon’s scheme execution attempts was it’s ability to extinguish the cost of low-value-added activities from its value concatenation. With Avon’s President and COO Susan Kropf in charge. the company executed programs of concern procedure reengineering that involved back uping merchandise development. e-commerce enterprises. better committee chances for independent reps. and planetary image edifice. The hazard seen in this proposal. is the companies ability to continuously squash high sums of cost nest eggs elsewhere. Although. this scheme was so successful in past old ages. continues backdowns of high financess from other countries may ensue in long-run failure in other perchance countries of chance as market tendencies quickly change. Operating schemes and BPR execution attempts. made by AJ. look to be comparatively positive in its aims. in that recommendations of identifying and riddance weak links or constrictions countries are exhaustively analyzed in its attempts of continued efficiency betterment and its supply ironss.

Another strategic aim of AJ is the enlisting and keeping of gross revenues representatives. The Gross saless Leadership is surely a great plan for the company in recruiting and keeping gross revenues representatives. However. although the company finds success in its ability to enroll younger adult females. adulthood in these younger adult females in understanding there duty and outlooks of the company as a concern per say. may subsequently ache the image of the company. Young unprofessional and undependable gross revenues representatives are a contemplation of the company to its consumers. Possibly. the company should implement professional preparation for these immature adult females. In add-on. as stated in the instance. older adult females are frequently more loyal to their merchandises. therefore they should non be overlooked in this new push for enlisting of gross revenues representatives.

E-commerce and the Internet is an of import portion of AJ’s strategic executing. Its consequences have been really positive and assuring to the company. It has non merely cut cost in a figure of countries for the company. but has provided a new manner to enroll gross revenues representatives. With the usage of e-commerce and the Internet the company has been able to spread out globally and gross revenues have increased. However. AJ has non mentioned a demand to modify the company’s merchandises to suit the cultural outlooks of these new planetary markets. Very few merchandises can be used universally within the planetary market. The company’s push for new merchandises and calculating for market demand should be done on a planetary graduated table. This may go disputing for the company. but should non be overlooked

The company’s attempt to heighten the Avon trade name image through assorted channels has achieved modest success. The alterations AJ stated in its transmutation ( such as new merchandises. famous person indorsements. fashionable new alterations ) are all of import facets of Avon Products image. It is portion of the company’s advertizement scheme and should be given much attending. As a recommendation. the company should place their markets and publicize harmonizing to the mark groups need. Again. this should be done on a planetary graduated table as the company reaches international markets.

AJ’s merchandise development program is. so. a really productive strategic program that has resulted in ( and should go on to convey ) success to the company. As in past recommendations. it is suggested that the company carefully reviews the demand. tendency. and market in which new merchandises are geared towards. These merchandises should be a contemplation of the planetary markets that it serves. In add-on. the company must go on to advance its old successful merchandises. This will demo consumers a uninterrupted line of successful line of quality merchandises promoted by Avon over the old ages. Continuous publicity of past merchandises will stabilise tendencies and increase gross revenues as new merchandises are introduced. In add-on. AJ’s push to present new merchandises every two old ages. alternatively of three old ages. run the hazard of aching a merchandises life rhythm and possibly ensuing in a excess of otiose or overlooked Avon merchandises.

Globalization is a factor of Avon Products. Inc success in international concern ventures. The company has received even greater success in its addition in gross revenues and gross. due to international gross revenues. This has helped construct a new image for Avon Products. However. the inquiry of American companies enforcing their civilizations on other states ever comes to mind. AJ should reexamine the company’s place and long-run aim in these international markets. Possibly. as mentioned before. alteration is need for merchandises that do non run into the demands of adult females in other states.

Leting Avon merchandises to be sold in retail channels was large measure taken by AJ and the company. There were many issues to be faced. Its consequences have been highly successful. It has shown to be a great growing chance for the state. The company should go on leting retail channels to sells its merchandises and possibly widening into other big section shops. Convienience of its merchandises for consumers has shown to be a great success in all merchandises and services.

Andrea Jung is a really innovated individual. in which her thoughts reflect on the success of Avon Products. Inc. She is non afraid of alteration or prosecuting new markets. However. Avon Products. Inc has limited its market by leting its chief focal point to be adult females. Although. it is aimed at adult females of all ages. it has ignored the even greater possibilities of success if equal attending is placed on work forces. This construct should hold been recognized early. as Avon’s Products. Inc laminitis sold his books to homemakers before get downing this company. These adult females were the married womans of 1000s of work forces. in which new merchandises could besides be marketed and sold to every bit good. Furthermore. this may ensue in work forces desiring to go gross revenues representatives for the company. hiking the figure of gross revenues representatives. The outlining result would be higher gross revenues. and as a consequence. higher grosss.

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