Essay about Avon And Beauty Related Items

Essay about Avon And Beauty Related Items

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1. What resources and capabilities do you think it would take to become the top direct seller of cosmetics and beauty-related items? Does Avon Products seem to have any of those? What would it take to make its capabilities distinctive?
I think due to Avon’s extensive history that they unquestionably have the capabilities to become a top seller, however I think only focusing on direct selling is hurting the organization. I think direct selling should still be Avon’s strong point, however Avon needs to seek different business opportunities. I also feel that Avon is managing their resources ineffectively. “The company manufactures and packages almost all of its beauty products.” (Coulter, 2013, p. 92) The issue is Avon purchases their raw materials from various suppliers, which has caused some financial issues in the increase of raw materials. From the case study in the textbook, it is explained that Avon is not managing their financial resources efficiently. I think Avon should look into possibly using more outsourcing for packaging and manufacturing. I also think Avon should try to find alternative ways to obtain sustainable control over their raw materials.
The overall problem I see with Avon’ is the human resources which includes experience, knowledge, judgment, and skills. (Coulter, 2013, p. 93) When I read about a struggling organization has celebrated fifty plus year anniversary, it makes me wonder if the organization is resistance to change. Avon needs a dramatic change to the leadership and training. The case study does not go into detail if the organization is updating their training and tactics for the sell representatives. It is one thing to rate the success of the company based on sales, it is another to put value an...

... middle of paper ... provide for themselves and establish their unique business opportunities. This strategic restructuring allows Avon to tap into parts of the world, provide more choices for women who have fewer opportunities and it allows them to not have to over exhaust physical assets. For example, most retailers and vendors rely on store locations to promote and sell their products. Avon only has to rely on the individual sales representatives.
Andrea Jung also made the strategic decision to lay off twenty-five percent of her senior staff. (Coulter, 2013, p. 92) Even thought Jung’s decision to cuts cost by eliminating a large portion of her senior staff, I think this was more of a temporary fix. According to the case study, eliminating twenty-five percent of the employees did not solve their underlining issues. Jung also took initiative in increasing her advertising efforts.

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