Avon Case Study

7534 words - 30 pages

Avon Case AnalysisOrganizational MissionAvon wants to provide everyone with high quality and innovative health and beauty products as well as financial opportunities through sales representatives that are easily obtainable, in many ways, in every part of the world. Avon hopes by bringing these products to everyone everywhere through global markets the company can improve the quality of life for anyone around the world.Corporate ObjectivesCorporate objectives bring structure to a company's operations so it will sustain growth, achieve its mission/vision and set the outcome and target for the company to achieve. Corporate objectives include financial and strategic objectives.Financial Objectives:Growth in Sales:In 2001 the success of the Goodbye to Breast Cancer lipstick campaign, inventory clearance programs, and the increase of active representatives acquired through the successful implementation of the Sales Leadership program resulted in revenues growing 5% from $5,682 million in 2000 to $5,958 million in 2001. The growth in sales was due to the 9% increase in units because of the success of the programs implemented that are mentioned above. Avon plans to increase sales annually by continuing to recruit Leadership Representatives around the world, utilizing the Internet to help these Representatives sell Avon products more efficiently, and extending the Avon brand to new products and possibly new channels. (3)Bigger profit margins:Lower sales in Latin America than expected and additional strategic spending on consumer marketing initiatives caused the slight decrease in profits for the 2001 year. The drop may have been a lot worse if it was not offset by considerable margin improvement form the business transformation initiatives. Despite the incredible achievements of the business transformation initiatives (about $150 million in savings), Avon's operating margin went down 20 basis points last year from 16.1% to 15.9%. The benefits from the business transformation will hopefully become more noticeable in 2002 and will free up additional funds to invest in things such as consumer marketing strategies. Avon has a goal to increase their operating margin by 250 basis points by the end of 2004. (1)Capital Expenditures:Avon's capital expenditures during 2001 were $155.3 million compared with $193.5 million in 2000. Most of these expenditures were used for continued investments on new technological information systems, improvements and modernization on existing facilities, investment on improving Internet strategy, and equipment replacement projects. In 2001 it cost $119.2 million to complete projects under construction and information system projects that took place during the year. Avon's capital expenditure goal is to average $225 annually and be spent on the same expenditures that they have been spent on in the past.Bigger cash flows:Avon had a significant increase in net cash provided by operating activities in 2001. Net cash totals accumulated...

Find Another Essay On Avon Case Study

Avon Products Redesigning it's supply chain

3825 words - 15 pages history. This data along with Manugistics detailed planning parameters gives Avon its distribution and manufacturing plan. Additionally Manugistics provides planners with a list of service risks, inventory variances and shipping requirements. It makes Avon's associates to work together across borders and to optimize Avon customers' experience. [Case study Manugistics Avon Supply Chain]Avon also speeded up the transportation of goods between borders

Avon Barand Essay

891 words - 4 pages in New York. The company prospered and Mr. McConnell decided to start forming its own sales force and recruiting the first female of the story, Mrs. Florence Albee of Winchester New Hampshire, who traveled to sell Avon and recruit other agents. The first catalog with life-size photographs of the products was published in 1926. In 1928, McConnell launched a new product line called Avon, a name taken from the English city of Starford upon Avon. The

AVON Case Analysis

6991 words - 28 pages AVON Case Analysis Organizational Mission Avon wants to provide everyone with high quality and innovative health and beauty products as well as financial opportunities through sales representatives that are easily obtainable, in many ways, in every part of the world. Avon hopes by bringing these products to everyone everywhere through global markets the company can improve the quality of life for anyone around the world. Corporate

Avon Case Analysis

2248 words - 9 pages Avon As of November 1999, Avon was experiencing economic troubles. Avon’s growth rate of annual sales was less than 1.5 percent during the greatest economic boom in history. This prompted a transfer in leadership which appointed Andrea Jung as CEO. Since that time, Avon has experienced remarkable growth. Under the direction of the new CEO, a new strategy was developed to reinvent Avon’s image, improve customer satisfaction, and to increase

Avon Products Case Analysis

1074 words - 4 pages 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

An Investigation of Avon

3803 words - 15 pages Introduction In this project I will undertake extensive research into a large sized business. I have previously chosen the company Avon. My research will involve the collection of both primary and secondary data. I will compete the report, which will include: * Brief background information about the business and what it does * A description of the aims and objectives of the business * An assessment of how successful the business

Avon Marketing Channel

927 words - 4 pages History of Avon Avon was founded in 1886 as the California Perfume Company by a book salesman named Mr. David McConnell. He got the idea of opening this company when he discovered that the rose oil perfumes he was giving away with the books were the primary reason people were buying his books not the book it self. In 1914 the first international office opened in Montreal, Canada and in 1916 California Perfume Company first incorporated in New

The Bard of Avon

664 words - 3 pages also known as The Bard of Avon (Great Poet) because of his gratitude of style. Some of our top writers in our time couldn’t of had topped Shakespeare’s works of literature and that is why he is so heavily publicized and recognized today.   The Bard of Avon has made an impact at least every generation of poets, writers etc., ever since he has been deceased. A lot of our contemporary plays, movies and poems were heavily influenced by Shakespeare

Avon Marketing Analysis

1201 words - 5 pages There are five different marketing orientations which are production, customer, sales, strategic marketing, and social marketing. Avon’s use of social marketing orientation is a must because it is part of their international image which is to support women’s needs which could include supporting charities such as breast cancer and domestic violence. When Avon established its first foreign market with Canada it they were more focusing on sales

Avon Financial Crisis

741 words - 3 pages Avon, also known as the Company for Women, has been in business since 1886 and honored as one of Fortune's "50 Best Companies for Minorities" and operates in over 100 countries. Their products range from perfume, makeup, jewelry and even clothes. In 2003, 63 percent of its $6.8 billion revenue was generated from markets outside of the United States. The multinational U.S. Company, which boasted $7.7 billion in annual revenues last year, is just

Company case: The Newest Avon Lady-Barbie!

539 words - 2 pages -1998 Avon negotiated with the Chinese government to restart its business by operating as a wholesaler.2) In the microenvironment:Firstly, the companies have to study their customer market by determining the needs and the wants of target market. In addition, they should deliver the desired satisfaction better than their competitors do.Secondly, they should consider the marketing intermediaries because they are the ones in charge of promoting

Similar Essays

Avon Case Study

5072 words - 20 pages Avon case study in strategic management (SCM) Executive Summary: Avon Products, Inc. (Avon) is based in New York. The firm engages in the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific . Avon's products are classified into three product

Avon Case Study

3857 words - 15 pages Untitled Avon Case Study in Strategic Management This case discussed the revival of Avon under Andrea Jung. 1)��� What is your assessment of Andrea Jung's performance as chief strategist at Avon Products? What has she done well? What overall grade would you give Andrea Jung for the job she has done as CEO? Answer: My assessment of Andrea Jung's performance as chief strategists at Avon products is that she has done

Avon Case Study International Marketing

3089 words - 12 pages IntroductionWhen David McConnell founded his company, Avon was first known as the California Perfume Company. The company was named Avon in 1939, as a tribute to his favorite writer, William Shakespeare. As the first "Avon Lady", Mrs. P.F.E. Albee initiated the company's famous direct-selling method, and her name is still honored today in the company. Avon established itself as a household name in the Fifties and Sixties with a worldwide network

Management Case Study Can We Wire The Avon Ladies

1338 words - 5 pages convenient. But it's not mean we have to lay off Avon ladies instead of other sales model.2.1 traditional characters"In 1886, Avon pioneered door-to door selling."(From case) It's belonging to company character. Right now, every customer who brought Avon product still remembers one of Avon ladies. If lay off all Avon ladies, it will lose Avon own character. The customers also miss their believable. Every innovation should improve good things instead