Avon Case Study

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Andrea Jung is the CEO of Avon. She aims to breathe life into her giant cosmetics’ worsening sales. Indeed, after four cycles years of brawny vending intensification under her tactical supervision (Andrew Jung), the gigantic cosmetic’s corporation’s (Avon) take-home pay has gone unexciting and the go halves or share cost has defoliated further than thirty percent (Hill, 2014, p 405). Since, seventy percents of Jung’s company’s proceeds are in developing and underprivileged foreign countries markets, any lessening of growth emphasizes a huge lost for Avon in the beauty products competition. In so doing, the cosmetic company under Andrew Jung would, in due course, crumple if her management team cannot plan new strategy to enhance the sale. In…show more content…
In this way, Avon opens an earnings occasion to its sale negotiants who trade Avon’s lotions and lipsticks to the end user. To achieve that goal, Avon under Jung’s management syncretises production in gathering numerous local markets. By more directly aligning the giant cosmetic enhances women’s lives through contributions to effective products. Furthermore, the company’s proceeds and income increases vividly as Jung focuses her management strength in researches and beauty products expansion in all areas such as online sales, increased direct representatives main outlet, and the more rapidly ordering system. This way surely diminishes filling forms and selling time.
Jung’s supervision technique is about “reducing the number of management layers to jus eight…” (Hill, 2014, p 405). The CEO of Avon has understood that an exceedingly bureaucratic business organization makes decision-making more intricate and multifaceted. Jung surely has found this form of organizational structure wrong for Avon direct business practice. This is to say, multiple layers of management indubitably generates distinctive levels between direct sellers and the company, ensuing in ineffective and out-of-place
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In fact the CEO’s to diversify into different industries and different product lines by “emerging markets” (Hill, 2014, p 405). This unnecessary shifting has caused a significant loss of market share heartwarming twelve-monthly earnings restrictions.
Another factor for Avon is competition in a global market. In like manner, competitors in urbanized markets who provide healthier prices with online and on site sale. Hence, Avon’s Avon needs to boost its stalled growth to remain germane in the cosmetic markets.
Finally, implementing Andrea Jung 's scheme to cross the threshold of product diversity retail market is disadvantageous and detrimental for Avon 's brand wakefulness, appreciation and reliability. With respect to Jung’s management style one may guess Avon’s choice between two core alternatives: the domestic sale versus the overseas market. That said, Avon can either center its sale approach on the domestic or the overseas marketplace. In another sense, Jung could increase and expand her direct-sale slant or change that methodology to retail sculpt.
In any event Avon the inspired CEO has an illustrious deal of expertise in the direct-selling routine. Meanwhile, consumers become more familiarized to retail shopping

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