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Avon Products Inc 2009 Case Study Analysis Rubric

Should Exceed Management at AVON explicitly form and alter the civilization of its administration? Should Kroft, Woodbury, Jung or Gold has hopes of Succeeding Perrin, what should they make to develop their competences and managerial leading further so that the AVON board would look at them, and conclude that they “ have been at that place, and they have done that ” ?

Identify the jobs and issues at AVON, and suggest thoughts how the company could derive the competitory advantage in the planetary trade.

Date of Submission: 02/10/2010

Table of Contentss

Table of Contentss 2

Answer to Question 1: 1

Answer to Question 2: 5

Answer to Question 3: 7

Mentions: 9

Citation: 9

Answer to Question 1:

Yes, the AVON top direction should explicitly go on to determine and alter the civilization within the organisation. Based on our survey, we found some issues faced by AVON Company as the followers:

Avon Directors are deficiency of sensitiveness and slow response to the external environment alteration. In illustration: AVON ‘ directors were slow to recognize that the inflow of adult females in to corporate America had of import effects for home-based decorative gross revenues. Resulted profitableness slumped in 1980 ‘s.

Poor fiscal public presentation at AVON has signalled the company for a demand to go more antiphonal to a altering consumer market. Some unneeded internal activities such like company session tickets for the Knicks and Yankees in the base on balls has besides factored unneeded cost to company. Those activities were scrapped subsequently.

As stated in the instance survey. Multiculturalism is the chief challenge to the company as critical component in run intoing client demand and gaining competitory advantage.

Those issues had severely contributed to AVON corporate civilization and created impact for company public presentation in the base on balls.

Definition of Corporate civilization:

So what is the definition of Corporate Culture? The definitions for corporate civilization are legion and are being refined and added to every twenty-four hours. The general academic position is that it is the shared, beliefs, premises, values, regulations and norms the members of a corporate such as a corporation or section clasp. While this is absolutely acceptable we prefer to take the position expressed by Marvin Bower of McKinsey who said corporate civilization is “ the manner we do things around here ” . There are more sophisticated and surely convoluted definitions for corporate civilization but it is compendious and provides a good starting point for those who are new to corporate civilization. Beginning: Corporate Culture, neodymium. Dudley Consulting, Inc. [ Online ] Available at: & lt ; hypertext transfer protocol: //www.dudleyconsulting-inc.com/culture.html & gt ; [ Accessed 30 September 2010 ]

It ‘s hard to alter AVON ‘s civilization, “ the manner we do things around here ” does non pattern a positive corporate civilization this is due to incorrect believes, value and regulations applied to the company civilization. They do n’t take by good illustrations and good leading.

But AVON has done it and turns those incorrect making to a positive civilization started 1990s, as followers:

AVON start creates leading runs such as directing center directors for leading development preparation.

The full direction squad participated in consciousness preparation by taking diverseness advisers.

Management launch multicultural be aftering research undertaking to evaluated company policies and patterns sing publicity.

Indentify possible barriers to the promotion of adult females and minorities.

Set up a undertaking force across corporate caput quarters multiple net income Centres with more than 100 employees.

Company has developed ends.

To go on construct a positive corporate civilization, AVON shall see below suggestions which is non pattern from above illustration that AVON have done:

Narratives. A group packages up its civilization into narratives which are often told and re-told, and which typify the values of the group eg ‘the clip we all stayed late on Xmas Eve to acquire the last orders finished and so has an ad-lib party at the local. ‘

Heros. Persons who typify to an utmost the values of the group.

Symbols. These may be staff slogans, the corporate mission statement or anything that symbolises the nucleus values.

Rites. These are specific occasions, such as the one-year office party, when the nucleus values are publically displayed. Formal award ceremonials are another illustration. These are particularly of import for enculturing new staff.

Rituals. This means a standard form of behavior at a specific juncture, such as the office party if things are ever done in a peculiar form.

Courses. Attending in-house classs is an of import manner of team-building and pass oning the nucleus values.

Cultural Networks. This means the informal contacts between employees where they reinforce nucleus values, particularly by go throughing them from older to younger group members.

Beginning: administration – edifice a positive corporate civilization, neodymium. tutor2u. [ Online ] Available at: & lt ; hypertext transfer protocol: //www.tutor2u.net/business/organisation/culture_more.htm & gt ; [ Accessed 30 September 2010 ]

With above thoughts to determine the company civilization, AVON is likely achieve the undermentioned advantages of Strong Corporate Culture

A common reading of the Instruction, so work is done to a similar criterion and in a similar mode.

Increase employee ‘ trueness, and avoid disbursals of employee turnover.

Increase productiveness of the company.

Increase the Management control.

Answer to Question 2:

Before we jump to the point for discoursing who shall be taking over AVON franchise there are something more critical to discourse foremost.

Definition of Leadership:

Good leaders are made non born. If you have the desire and self-control, you can go an effectual leader. Good leaders develop through a ne’er stoping procedure of self-study, instruction, preparation, and experience ( Jago, 1982 )

A simple definition of leading is that leading is the art of actuating a group of people to move towards accomplishing a common end. Beginning: Leadership, Susan Ward, About.com Guide. [ Online ] Available at: & lt ; hypertext transfer protocol: //sbinfocanada.about.com/od/leadership/g/leadership.htm & gt ; [ Accessed 30 September 2010 ]

Leaderships carry out this procedure by using their leading cognition and accomplishments. This is called Process Leadership ( Jago, 1982 ) . However, we know that we have traits that can act upon our actions. This is called Trait Leadership ( Jago, 1982 )

Leadership is merely showed by good illustration, lead people to right things and do things right. A good leading can prepare another good leader. However, AVON does non prepare any successful leader by any wise man. It caused AVON suffered many old ages. Until the company decided to beginning another leader who is experienced as main executive in another planetary company. It had shown that company ‘ way is to engage another guru to be the wise man and lead bing executive which hope to prepare them in hereafter.

Definition of competences:

A competence is a accomplishment, ability, or cognition set that can be taught or developed. All competences have “ indexs ” that allow them to be observed and measured. A leading competence theoretical account is a group of competences linked to leading excellence in a specific organisation. A leading competence theoretical account supports the organisation ‘s vision and scheme by supplying a model by which the organisation can choose, develop, and evaluate leaders. Beginning: Joaquin Roca, 2009. What Is a Leadership Competency and How Do I Make a Competency Model? [ Online ] Place: USA/ Human resources and labour dealingss community. Available at: & lt ; hypertext transfer protocol: //www.thefreelibrary.com/_/print/printarticle.aspx? id=1073980739 & gt ; [ Accessed 30 September 2010 ]

A successful company should hold a good leader with good leading and competences. In AVON, one of the chief issues that that are confronting is most of them are non treating comprehensive leading and appropriate nucleus competences.

A nucleus competence is cardinal cognition, ability, or expertness in a specific capable country or accomplishment set. Beginning: Rafael Gutierrez, 2003. Core Competency. [ Online ] Available at: & lt ; hypertext transfer protocol: //searchcio-midmarket.techtarget.com/sDefinition/0, ,sid183_gci214621,00.html & gt ; [ Accessed 30 September 2010 ]

Base on the AVON instance survey, should Susan Kropf to be the following leader of AVON, she non merely needs to treat a good operation and planetary selling nucleus competence accomplishment which she already has. But besides develop the following nucleus competences:

Financial and Administrative accomplishment which Edwina Woodbury has. To able to prolong company fiscal wellness & A ; growing.

Crisis direction and cost film editing accomplishment from Christina Gold.

Answer to Question 3:

The chief issue of AVON is due the deficiency of competitory advantage in planetary trade. Should AVON, like to derive a better concern place, they should concentrate on constructing up the Completive Advantage in the globalization epoch.

Definition of Global Trade:

Besides refer to Globalisation. As economic systems become more affiliated to other economic systems, they have increased chance but besides increased competition. Beginning: globalisation, nd. Investorwords. [ on-line ] Available at: & lt ; hypertext transfer protocol: //www.investorwords.com/2182/globalization.html & gt ; [ Accessed 30 September 2010 ]

Globalisation describes a procedure by which regional economic systems, societies, and civilizations have become integrated through a planetary web of communicating, transit, and trade. The term is sometimes used to mention specifically to economic globalisation: the integrating of national economic systems into the international economic system through trade, foreign direct investing, capital flows, migration, and the spread of engineering. Beginning: Bhagwati, Jagdish ( 2004 ) . In Defense of Globalization. Oxford, New York: Oxford University Press.

Definition of Competitive Advantage:

The Competitive Advantage is the ability gained through properties and resources to execute at a higher degree than others in the same industry or market ( Christensen and Fahey 1984, Kay 1994, Porter 1980 cited by Chacarbaghi and Lynch 1999, p. 45 )

In VAON, they do non derive a Cost Advantage merely because their internal cost is high, unneeded disbursals such like New York City Ballet and the New York Philharmonic session ticket. They besides non leverage the advantage of cyberspace engineering and still relay on “ Door-to-door ” selling attack. They besides do non look to hold distinction advantage within the company.

AVON should see taking below stairss to derive Competitive Advantage in the Global Trade:

Cost leading – Is there any manner to do cost advantage among all the rivals in this borderless epoch? They can travel the production line move to a state to supply lower cost of production. Or leverage Technology advantage such like cyberspace to cut the advertizement cost or agent cost? Like Dell has been really successful on its direct theoretical account to outreach consumers utilizing the cyberspace order system.

Differentiation – How to do AVON ‘ merchandise unique from other merchandise? AVON can see utilizing merchandise development scheme to better merchandise packaging to keep the market consciousness.

Focus – AVON should avoid take part in all merchandise scope. And concentrate on niche merchandise that they are good with. And go the leader of that peculiar area/product.

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Avon Case Answers

671 WordsJan 28th, 20133 Pages

Q1) Who is Avon's target market? How can it be segmented?

Avon’s target market is the mass market of roughly 25 million woman aged 25-50 with average to below-average household income. Avon is targeting women who are also not internet savvy or women who want a personal/friendly connection for their purchase or need advice on purchasing beauty products in person and aren’t comfortable getting this advice in a public setting or the internet. These women prefer to meet someone in person who would take their order, give beauty tips in their own home and delivery the beauty products. There are a couple of ways that Avon segments the larger market of women. One segmentation is based on the products they buy (Fragrance, Lipsticks),…show more content…

Also, most of the target customers may not have access to Internet or may not be computer literate. So Avon should not sell direct to consumer

3) What does "selling" mean in this situation? Can the Web do this for Avon?

“Selling” is giving the customer one-on-one attention and advice to each and every customer who is a neighbor, friend, or a colleague. So “selling” means the personal connection that sales representatives have with their customers. Often, the customers initially buy from the sales representatives because of this friendly connection and then continue to buy because of the product quality that they receive from their friend. Therefore, the Web cannot do this for Avon because that personal connection does not exist in order to make the sale. However, the Web could facilitate the sales process and the customer retention process providing the one-on-one attention, advice, and question answering a salesperson could do

4) What potential channel conflicts exist here? How might Avon avoid them?

Selling direct to customer on the internet means the customer does not buy anymore through the sales representative. So effectively these two channels could end up competing for the same customers. Another potential channel conflict is Avon’s B2C and B2B channels. With the Web, these two could become blurred into the same depending on how it is set up.
One possible way to avoid these channel

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