Taking Sides Case Analysis One – Avon Products, Inc.:
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This paper will discuss and argue Avons position on whether the grand strategy, under the leadership of Andrea Jung has its merits and if the grand strategy is properly focused and directed. In addition, discuss and argue the position if the grand strategy of Jung is not optimal and needs to be refocused (Syllabus, 2005, p. 16). Evidence will be provided supporting each argument and finally the decision rational will discuss why the weaker factors of the case study were dismissed.
Strategic management can, through long-term objective planning and strategic implementation, provide an organization the grand strategies needed in meeting its business mission, goals, objectives, and ultimately increase shareholder wealth (Pearce and Robinson, 2005, p. 19).
Discussion
Background
Andrea Jung, president and Chief Executive Officer at Avon Products, Inc. since November 1999, is faced with the strategic decision of developing a growth strategy for a 115-year-old company in the spring of 2000 (Pearce and Robinson, 2005, p. 28-1).
In the case study, Avon was “the worlds largest direct seller of beauty and related personal care products, sold to women in 137 countries via three million independent sales representatives who generated approximately $5.1 billion in annual revenues” (Pearce and Robinson, 2005, p. 28-1). Avon had had global success and brand recognition, but single digit growth indicated the company and its leadership needed to provide new direction in the grand strategies to be taken.
Argument One
The first argument is that Avons grand strategy under the leadership of Andrea Jung has its merits and is the grand strategy is properly focused and directed (Syllabus, 2005, p. 16).
Evidence
The grand strategies that Jung has put in place for Avon are meeting with the strategic vision of Avon. The strategic objectives that Jung proposed are clearly future orientated and appear to be measurable and obtainable. In a rapidly changing market environment Jungs vision to use technology, namely the Internet, as the focus and direction Avon needed to capitalize on its success.
Argument Two
The second argument position would be if the grand strategy of Jung is not optimal and needs to be refocused (Syllabus, 2005, p. 16).
Evidence
The outside consulting group hired by Jung advised her to take a three step retail approach by:
Distributing higher priced and superior quality spa products in specialty stores,
Sell a more affordable line in full-line discount stores, and
Extend unique kiosks in the domestic market (Pearce and Robinson, 2005, p. 28-38).
According to the consulting group, this would increase sales, attract diverse consumer groups, and reinforce brand recognition. Additionally, this would motivate sales representatives and increase shareholder wealth. The members of the board and the consulting group believed Jungs grand strategy was not optimal and required refocusing.
Decision
The decision is to support argument one, Andrea Jung has clearly directed the successful transformation of Avon Products Inc. by defining its vision as the company for women.