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case study on Avon
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ANDREA JUNG’S MAKEOVER OF AVON PRODUCTS INC. 1.0 Case Synopsis On Andrea Jung’s commencement as CEO in 1999 she faced a number of strategic problems at Avon - there was no superior strategy for the company to initiate and thus no competent implementation and execution of this strategy. This lead to a number of symptoms such as poor image, slow growth and a decline in sales, which was a direct link to a vague strategic vision, lack of innovative technology and lack of leadership. With a new strategic vision implemented by Jung, Avon was able to move into the 21st Century with a clear view to compete with other Cosmetics Fragrances and Toiletries (CFT) companies in the same industry. 2.0 Primary and Secondary Problems 2.1 Lack of a well defined strategic vision Avon did not have a well-defined strategic vision – which stated who are we, where are we going and how we are going to get there. Without this vision for the company, employees had no sense of organizational purpose and no motivation and as a result Avon’s image declined. Many customers commented that Avon’s products were ‘dull’ and ‘not for me’. Alongside this, were comments regarding poor product packaging, distribution and advertising campaigns. All of these were symptoms of a lack of strategic vision and clear-cut objectives. 2.2 Lack of innovative technology – Managerial problem A problem that was evident for Avon was the inability of the company to change with the new technological world, which was fast emerging. As times were changing Avon did not implement vital technological processes that could manage the firms inventory and sales more efficiently rather Avon continued with onerous paperwork which consequently lead to mishandling customer orders.
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