The makeover of Avon Products, Inc headed by CEO Andrea Jung greatly transformed the company in all aspects - the stakeholders, whether they are customers, employees or shareholders have undeniably benefited from the change. The analysis in this paper will closely examine Andrea Jung's actions taken in the past few years.
Under Jung, Avon's vision statement read: "Our vision is to be the company that best understands and satisfies the product, service and self-fulfillment needs of women globally. Our dedication to supporting women touches not only beauty, but health, fitness, self-empowerment and financial independence". (Thompson - Strickland p. 148) Trying to match up the company's strategic initiatives with the vision leaves one thing uncertain: financial independence. It is true that bigger companies are forced to hold broader vision statements that those with few employees and less market power. But this vision statement is lacking due to the fact that it is supposed to show "who we are, what we do, and where we are now" (Thompson - Strickland p.31).
The financial independence is in no shape or form reflecting Avon's position at the current moment - 2001. The vision is clearly too broad and ambitious.
Another Avon initiative we would like to examine more closely is the store-within-a-store concept. This concept puts a mall kiosk - an Avon Center within a JCPenney store to promote it's beComing line of cosmetics. Although Avon is desperately in need of acquiring younger customers they are, in fact, keeping themselves back due to the wrong choice of department store. If the company wants to attract younger customers the management should realize the fact that the shoppers of JCPenney stores are in the same age range as their current customers.
While on a quest to attract younger buyers, Avon teamed up with super stars...