Analyze The Avon Product Inc

Analyze The Avon Product IncThe cover has been intentional to analyse the Avon Product Inc that has been underg one and only(a) by major strategic neuter. Further more this spread abroad has been divided into two parts, first part of the survey will excuse the formation back ground and the strategic diversity that has been adopted, further blurb part of the report will discuss the cultivate of remote environmental forces, how they affect on the arranging performance.Avon Vision Statement To be the alliance that best understands and satisfies the fruit service and self-fulfillment needs of women sphericly institution BackgroundAvon is the largest seller, foodstuffer and shaper of beauty related products around the world. Avon generates 98% of its tax from enhancives products. The company foodstuffs to women in more than 110 countries through more than Five millions independent sale representatives. Products categories be for instance skincare, fragrances, nonfunc tionals, toiletries and also jewellery, watches, place products sackdles and toys. tho, 98% of the company sales are generated via direct sales. This sales access had also been successful in the Asian and Latin the States market. However, could not be for the American market.Strategic changeAccording to Lynch (2006), go d declare Strategic change is the pro-active management of change in organisations to strain clear identified strategic objectives. It may be undertaken utilise either prescriptive or emergent strategic approaches.Avons strategic changeAccording to Johnson (2008) rig in coifs to diagnose the strategic change within organisation, it is important to get a line the type of change that is required and also identify the type of change that has been adoptedFor over the last 124 years, being a global manufacturer and marketer of beauty related products, Avon has been adopted several changes and devoted to authorise women by helping them to look beautiful.Avon ma jor strategic changes areAvon has invested the millions on research development to bring the innovative products and also focused on the increases advertisement for the sustainability of marque competitiveness.Avon eliminated the layers of Hierarchal management and redesigned the organisational structure to take the broad advantage of Global saleAvon helped million of women across the world to lay d stimulate a better proximo for instance, go away the opportunities to become, entrepreneurs, representative or their own personal credit line owner. www.avon.comOrganisational structureAccording to Carnall, (2007) ideal organisational structure is based on the right balance of information, resources and power to support the organisation objective.On geographically Avon operates channel in six regions and has sales operation in 63 countries also products are distributed more than 52 countries in the world. Primarily Avon conducts transaction through direct selling and marketing by millions of Avon independent representative. principally distributor purchased products directly from Avon on discounted price also Avon provide an opportunity to their representative to manage their business online including two way communication with Avon. Moreover in some countries for instance in USA, representatives can build their own network page for the sales of Avon Products.ORGANISATIONAL CULTUREAccording to Cameron, (2004), if current organisational gloss does not support to achieve the organisation objectives or goals then organisation should involves themselves to change organisational cultural in order to achieve the organisational goals. However, since 1866 Avon organisational cultural is the close recognisable and considered the pioneered to sell the cosmetics products via using direct selling good example and preserve to maintain the same sales model since its foundation. Furthermore, 98% of revenue of the cosmetics product which is 6 billion dollar is come from direct selling model which impressed the other cosmetic companies to follow the direct sale model. extension 3 illustrates Avons organizational culture by using the cultural web model from Johnson and Scholes (2005).Stakeholder analysisAccording to Spicker (2008) state the stakeholder analysis will explain, how external and internal stakeholder influence on the organisation, and whats there needs and expectations, also what organisation need from each of them.Stakeholder analysis for AvonStakeholderInterestPowerAttitudeExpectations/ unavoidablyGovernmentWorld large advancedHighMixedThe acceptation to come across the all local, national and environmental laws of the country where they operate.ShareholdersHighHigh despoticAlways take interest on maximization of shares value and dividend.CustomersHigh economic crisis authoritativeTake active interest in products and appearance.Communities smallLowMixedTake interest in the respect of using natural resources, environmental issues and minimization of recycling and reuse practices.SuppliersLowLowNeutralSurety of contracts and payment.Take interest to add value to asseverate the products.MediaMediumMediumNegativeAlways take interest to say negative factors regarding harmful ingredients of cosmetics products.Executive teamHighHighPositiveNeed to appreciate the whole organisation effort and progress payoff and reorganize the effort of representatives and employees worldwide.EmployeesHighLowPositiveExpect to achieve financial need and economical liberty and support their happiness.The key environmental influencesThe PEST framework categories environmental influences into four main types political, economic, social, technological.Political factorsAvons products Inc business ranges cover many countries and it offers approaches to women who work in those countries to attained financial independence and good performance. In some countries, this move is regard as a way to advance the economic growth and make up p ersonal wealth. However, owe to the political differences among countries, it causes different influences on Avons corporal strategy. For instance, there is a information Protection Act within the European Union which is aimed at defend the privacy and safety of personal information. Different implementation dynamics of this form _or_ system of government in Europe countries will have different effects on Avons representatives calling door to door.Economic factorsThe key dominant factors that influence on customers for buying Avon products are their economical condition, inflation and interest rates. Simultaneously, Avon is also touched by currency fluctuations rates. Avon has employed about 5.3 million representatives and this leads to the free and actively cosmetics market to sell and buy Avons products.Social factorsConsumers preferences and buying powers has changed by while to time and they are related to the local culture and personal operative conditions. Countries in d ifferent climates and environmental circumstances would commend different cosmetic products for their citizens and this is a big concern for Avon to concern the goal that not only when value and contain the similarities among different customers but also respect and create the differences of their needs. The top objective of Avon is to serve women all over the world with its products to reach their identical aspiration look their best at all places at all time.Technological factorsThe revolution and innovation of technology can influence the behavior of peoples. In the process of researching and product developing, cosmetic attention constantly put new products into a position of consequence. Avons strategy is to enhance the brand competitiveness through investing millions on the research and development of its products and increase the advertisement of its products on media..Managing changeAccording to Mullins (2010) External environment can affect the organisational performan ce and organisation effective performance will depends on the interaction of its external environment.SWOT analysisStrength Avon products are exchange in 110 countries around the world by five millions representatives. The products are sold in comparatively moderate prices. Additionally, features of personalization in customer service, cosmea in products design and satisfaction guarantee are the key factors which provide Avon a competitive advantage among the cosmetic industry. Furthermore Avon uses variety of electronic order systems to help representatives to increase the accuracy of business process and effective business operations. The cost-effective sales strategies and the diversity of business model give Avon the ability to be the superior in cosmetic market. -Revenue growth stillFrom the companys record, it shows there was a lasting and forceful growth in new-fashioned years which successful outstripped its key competitors. Avons revenue grew at a deepen annual growt h rate (GAGR) of 10% during FY2006-2008 and this result a stable operation of the company. Dominant position provides more opportunities to attract new consumersAvon is one of four top brand leaders in cosmetic industry with brand value about $5,264 million in the top hundred global customer companies. The pioneered anti-aging skincare and perfume category induced Avon with wide business presence and leading position to attract new Opportunities failingDeclining North American operationThe declining trend of Avons North America business has slowed down in FY2008, but compared with FY2007, the total revenue of North America has still decreased 4.9 %, and Avons North America operation has contributed 23.3% to the total revenue of the company at last. Obviously, the top line was affected by the run-down performance of this geographic segment.OpportunityEmerging marketsThe importance of emerging market such as Brazil with an annual growth of 20%, mainland China which has valued approx $10,200 million with the enormous increase of population in future and the sudden growth of economy will offer a massive potential market for cosmetic industry .Furthermore The increasingly fierce competitions among cosmetic market, in order to capture the Brazilian market Avon has announced its jut to build the new distribution centre in brazil.Threats,In order to achieve the global recommendation in cosmetics business and gain the market share from emerging market, Avon has faced strong competition from its competitors for instance, LOreal, Unilever and Estee Lauder, Revlon and Procter Gamble.ConclusionThis report offers an attempt to understand the major strategic change undergone by Avon Cosmetics Limited. Furthermore, report evaluated the effectiveness of the change in relation to Avons structure, culture. Being a global manufacturer and marketer of beauty and related products and a direct selling organisation, Avon was faced with several challenges in the external environm ent. The factors were fierce competitions from multinational companies, consumer behaviour worldwide, government rules and regulations, technological and social background. It was found that the major strategic change does relate to the objectives of the organization and matches the organisations capability, including its structure, culture and politics..ReferencesCameron, Esther (2004) Making Sense of Change Management, capital of the United Kingdom (UK), Kogan Page LimitedCarnall, C A. (2007) Managing Change in Organisations. Harlow (UK), Financial generation Prentice vestibuleJohnson, G., Scholes, K., and Whittington, R. (2005) Exploring Corporate Strategy. ion. Harlow (UK) Financial propagation Prentice HallJohnson, Gerry (2008) Exploring Corporate Strategy, Harlow (UK), Financial time Prentice HallLynch, Richard L (2006), corporate strategy, Harlow, England, FT/Prentice HallMullins, Laurie J (2010), Management and Organisational Behaviour, Harlow (UK), Financial Times Pren tice HallSpicker, Paul (2008) Social policy themes and approaches, Bristol (UK), Financial Times Prentice Hall(2009).Avon Products, Inc. SWOT Analysis, Avon Products, Inc. SWOT Analysis,1. Retrieved from Business Source atomic number 61 DatabaseTitleChange Management A Critical Perspective Author(s) Simon Shurville ledger International Journal of Managing Projects in BusinessYear 2008 Volume 1 Issue 3 Start Page 447