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 ...
...to 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.
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Avon As of November 1999, Avon was experiencing economic troubles. Avon’s growth rate of annual sales was less than 1.5 percent during the greatest economic boom in history. This prompted a transfer in leadership which appointed Andrea Jung as CEO. Since that time, Avon has experienced remarkable growth. Under the direction of the new CEO, a new strategy was developed to reinvent Avon’s image, improve customer satisfaction, and to increase profit margins and market share. Avon has gained an outstanding reputation as the best direct seller of beauty products.... [tags: Avon Cosmetics Make Up Essays]
2268 words (6.5 pages)
- Why is Avon so much more dependent on its foreign operations than on its home (U.S.) operations. (Daniels, 2010) Avon Products is the world’s top direct seller of cosmetics and similar items, with direct sales remaining its main method of distribution to customers (Colbert, 2011). At last count, Avon had approximately 6.2 million independent representatives worldwide and sales and distribution operations in more than 100 countries and territories (Colbert, 2011). According to the textbook case study, the main reason is due to the market in the United States for cosmetics are very mature, not to mention extremely competitive.... [tags: International Trade, Global Commerce]
1090 words (3.1 pages)
- Synthesis Essay #2 The definition of beauty is a characteristic of a person, animal, place, object, or idea that provides a perceptual experience of pleasure, meaning, or satisfaction. Beauty has negative and positive influences on mostly people. Beauty is described by the inside and outside of us. Due to beauty, our self-esteem has been hurt dramatically, especially towards girls. Beauty is not always about our outside looks but it’s about our inside personality also. First of all, beauty has negative and positive influences on about everything.... [tags: Beauty]
916 words (2.6 pages)
- Introduction In this project I will undertake extensive research into a large sized business. I have previously chosen the company Avon. My research will involve the collection of both primary and secondary data. I will compete the report, which will include: * Brief background information about the business and what it does * A description of the aims and objectives of the business * An assessment of how successful the business is in meeting its objectives * An explanation of the legal structure of the business and consider how appropriate is it * An explanation of how each functional area contributes towards the aims and objectives of the organization * A detailed explanation... [tags: Business Management Studies]
4085 words (11.7 pages)
- Not long ago, a woman’s success was measured by the success of her husband and her domestic prowess. Today, a woman is presumed successful if she can emulate the standards of beauty portrayed in the media. Unfortunately, this subliminally enforced standard is unattainable to some women, regardless of the quality of their character. Let’s examine how western women went from being pioneering superheroes, to people who measure their worth against airbrushed photographs of impossibly beautiful women.... [tags: Beauty]
724 words (2.1 pages)
- There are five different marketing orientations which are production, customer, sales, strategic marketing, and social marketing. Avon’s use of social marketing orientation is a must because it is part of their international image which is to support women’s needs which could include supporting charities such as breast cancer and domestic violence. When Avon established its first foreign market with Canada it they were more focusing on sales orientation instead of product adaption. Today, they use customer, strategic marketing, and social marketing in their international strategy.... [tags: Marketing ]
1168 words (3.3 pages)
- Each year Fortune magazine publishes its list of the top 500 U.S. companies ranked according to reported gross revenues. In the highly competitive world of business, the CEO's of these companies are responsible for making decisions that allow a company into this elite group and remain on the list year after year. Avon Products Inc. first appeared on the Fortune 500 list in 1955 inaugural year, ranked at number 455. Over the years, Avon has moved up and down the list of 500 managing to remain there since its first appearance as a top grossing corporation.... [tags: Avon Business CEO Management]
1451 words (4.1 pages)
- Direct marketing The definition of DM is very complicated but it is simply selling a product or service via direct advertising sent through the mail, and also via several Internet promotion methods. The direct selling method enables the consumers to bypass inefficient wholesale and retail distribution systems. Women who left business in order to have children is able to do part time business, and also a very attractive career for woman reentering the work force. According to the “Direct selling Assosiation”, 1,230,000 women engaged in direct selling in 19924.... [tags: GCSE Business Marketing Coursework]
899 words (2.6 pages)
- History of Avon Avon was founded in 1886 as the California Perfume Company by a book salesman named Mr. David McConnell. He got the idea of opening this company when he discovered that the rose oil perfumes he was giving away with the books were the primary reason people were buying his books not the book it self. In 1914 the first international office opened in Montreal, Canada and in 1916 California Perfume Company first incorporated in New York State and by 1964 Avon stocks have been listed on New York Stock Exchange.... [tags: essays research papers]
947 words (2.7 pages)
- AVON Case Analysis Organizational Mission Avon wants to provide everyone with high quality and innovative health and beauty products as well as financial opportunities through sales representatives that are easily obtainable, in many ways, in every part of the world. Avon hopes by bringing these products to everyone everywhere through global markets the company can improve the quality of life for anyone around the world. Corporate Objectives Corporate objectives bring structure to a company’s operations so it will sustain growth, achieve its mission/vision and set the outcome and target for the company to achieve.... [tags: Business Management Studies Essays]
7750 words (22.1 pages)