Avon Case Study
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Question 1.
My assessment of Andrea Jungs performance as chief strategist at Avon Products is that she has done an excellent job. Her first task as CEO was to hit the streets of her neighborhood, ringing doorbells, to better understand the desires of customers and needs of sales agents. She pushed for the addition of attractive new products to Avons product lines. She was responsible for developing E-commerce opportunities for Avon and its sales representatives. Andrea listened to the customers and grew global beauty category sales by new product development, sampling, and more up to date advertising.
I would have to give Andrea Jung an “A” for the job she has done as CEO. She developed a great strategy for Avon that helped to increase the sales from 1.5% in 1999 to 6% in 2001. She also increased the sales in Europe and Asia. I am sure this is a shared opinion because she is one of the most recognized successes of all time. At age 40, she became CEO, and in 2001, at age 42, she was listed on Fortunes ranking of the 50 Most Powerful Women in American Business.
Question 2.
Andrea Jungs strategic vision for Avon was for them to be the company that understands and satisfies the product, service and self-fulfillment needs of woman globally. I think their new strategic direction made sense. In 1999 the companys annual sales growth had slowed to less than 1.5%, and its stock price had fallen from a high of $55.00 to a three year low of $25.00. Something had to be done. She knew products had to be made to fill needs of different age groups and races. It was time for Avon to become more modern and up-to-date.
Avons new strategic direction would launch an entirely new line of business, the development of innovative products, new packaging, new channels to do distribution, a new approach to supply chain management, new sales models, and new approaches to image building.
Question 3.
Some of the financial and strategic objectives Jung has set for Avon were as follows:
reduce inventory levels while improving