Avon Products Case Analysis

Essay by bratnluvnit35University, Master'sA-, July 2004

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What additional actions would you recommend AJ take to help achieve its long-term strategic and financial objectives? It's implementation efforts? What challenges might the new strategy present to Avon's top management team? What risks do you see?

Andrea Jung has done an exceptional job of identifying the problems of Avon Products, Inc, developing a strategic vision, and outlining a plan to clearly communicate and meet the goals and objectives of the vision. She undoubtedly recognized the various areas within the company that were in dire need of improvement, in order to boost the success of the company.

There are seven major aspects of Andrea Jung's strategic execution and their business results presented within the case. AJ recognized the first and most important change needed within the Avon's strategy implementation efforts was it's ability to eliminate the cost of low-value-added activities from its value chain. With Avon's President and COO Susan Kropf in charge, the company executed plans of business process reengineering that involved supporting product development, e-commerce initiatives, better commission opportunities for independent reps, and global image building.

The risk seen in this proposal, is the companies ability to continuously squeeze high amounts of cost savings elsewhere. Although, this strategy was indeed successful in past years, continues withdrawals of high funds from other areas may result in long-term failure in other possibly areas of opportunity as market trends rapidly change. Operating strategies and BPR implementation efforts, made by AJ, appear to be relatively positive in its objectives, in that recommendations of identifying and elimination weak links or bottlenecks areas are thoroughly analyzed in its efforts of continued efficiency improvement and its supply chains.

Another strategic objective of AJ is the recruitment and retention of sales representatives. The Sales Leadership is certainly a great program for the company in...