AVON Products Case Study

AVON Products Case StudyShould Top Management at AVON explicitly shape and change the burnish of its organisation? Should Kroft, Woodbury, Jung or Gold has hopes of win Perrin, what should they do to develop their competencies and managerial leading further so that the AVON card would look at them, and conclude that they collapse been there, and they have done that? let turn up the problems and issues at AVON, and suggest ideas how the come with could gain the rivalrous favour in the global trade.Date of Submission 02/10/2010 put back of ContentsTable of Contents 2 purpose to Question 1 1 reply to Question 2 5 firmness of purpose to Question 3 7REFERENCES 9CITATIONS 9Answer to Question 1Yes, the AVON top solicitude should explicitly continue to shape and change the culture at bottom the organization. found on our study, we found some issues faced by AVON Comp some(prenominal) as the followersAVON Managers are lack of sensitivity and slow response to the outside(a) envi ronment change. In example AVON managers were slow to realize that the influx of women in to corporate America had important consequences for home-based cosmetic sales. Resulted dineroability slumped in 1980s. mis ageble financial performance at AVON has sign aloneed the family for a need to develop more responsive to a changing consumer market. Some unnecessary intragroup activities such like company session tickets for the Knicks and Yankees in the pass has excessively factored unnecessary personify to company. Those activities were scrapped later.As stated in the case study. Multiculturalism is the principal(prenominal) challenge to the company as vital element in encounter customer demand and gaining competitive advantage.Those issues had badly contributed to AVON corporate culture and created preserve for company performance in the pass.Definition of bodily cultureSo what is the definition of Corporate Culture? The definitions for corporate culture are numerous and ar e being refined and added to every day. The general academic bet is that it is the shared, beliefs, assumptions, values, rules and norms the members of a collective such as a corporation or department hold. While this is perfectly acceptable we prefer to take the calculate expressed by Marvin Bower of McKinsey who said corporate culture is the substance we do things around here. There are more sophisticated and for sure convoluted definitions for corporate culture but it is succinct and provides a strong starting point for those who are new to corporate culture. credit Corporate Culture, nd. Dudley Consulting, Inc. Online Available at Accessed 30 kinsfolk 2010Its difficult to change AVONs culture, the vogue we do things around here does non practice a constructive corporate culture this is due to disparage believes, value and rules applied to the company culture. They dont lead by neat examples and good leadership.But AVON has done it and turns those wrong doing to a po sitive culture started 1990s, as followingAVON start creates leadership campaigns such as sending middle managers for leadership development training.The finished management team participated in awareness training by atomic number 82 diversity consultants.Management launch multicultural planning research shake off to evaluated company policies and practices regarding promotion.Indentify potential barriers to the advancement of women and minorities.Set up a problem force across corporate head quarters multiple profit centres with more than 100 employees.Company has developed goals.To continue built a positive corporate culture, AVON shall consider below suggestions which is not practice from in a higher place example that AVON have done Stories. A group packages up its culture into stories which are frequently told and re-told, and which typify the values of the group eg the time we all stayed late on Xmas Eve to get the last orders finished and then has an impromptu party at t he local.Heroes. Individuals who typify to an extreme the values of the group.Symbols. These whitethorn be staff mottoes, the corporate mission statement or anything that symbolises the sum values.Rites. These are specific occasions, such as the annual office party, when the amount values are publicly displayed. Formal award ceremonies are other example. These are especially important for enculturing new staff.Rituals. This means a ideal pattern of behaviour at a specific occasion, such as the office party if things are always done in a particular pattern.Courses. Attending in-house courses is an important way of team- mental synthesis and communicating the nerve centre values.ethnical Net die hards. This means the informal contacts between employees where they reinforce centerfield values, especially by passing them from older to younger group members. stem organisation building a positive corporate culture, nd. tutor2u. Online Available at Accessed 30 September 2010With ab ove ideas to shape the company culture, AVON is likely achieve the following advantages of sinewy Corporate CultureA common interpretation of the Instruction, so work is done to a standardized standard and in a similar manner.Increase employee loyalty, and avoid expenses of employee turnover.Increase proceedsivity of the company.Increase the Management control.Answer to Question 2Before we jump to the point for establishing who shall be taking over AVON dealership there are something more vital to discuss first.Definition of Leadership Good leaders are made not born. If you have the desire and willpower, you rear effect an effective leader. Good leaders develop through a never ending process of self-study, education, training, and survive (Jago, 1982)A simple definition of leadership is that leadership is the art of restrain a group of people to act towards achieving a common goal. Source Leadership, Susan Ward, About.com Guide. Online Available at Accessed 30 September 20 10Leaders carry out this process by applying their leadership fuckledge and skills. This is called Process Leadership (Jago, 1982). However, we know that we have traits that can influence our actions. This is called Trait Leadership (Jago, 1982)Leadership is barely showed by good example, lead people to right things and do things right. A good leadership can groom another good leader. However, AVON does not groom any successful leader by any mentor. It caused AVON suffered galore(postnominal) years. Until the company decided to source another leader who is experienced as chief executive in another global company. It had shown that company thrill is to hire another guru to be the mentor and lead existing executive which hope to groom them in future.Definition of competenciesA strength is a skill, ability, or knowledge set that can be taught or developed. all(a) competencies have indicators that allow them to be observed and measured. A leadership competency model is a group of c ompetencies linked to leadership excellence in a specific organization. A leadership competency model supports the organizations view and strategy by providing a framework by which the organization can select, develop, and evaluate leaders. Source Joaquin Roca, 2009. What Is a Leadership Competency and How Do I Create a Competency Model? Online Place USA/ gracious resources and labour relations community. Available at Accessed 30 September 2010A successful company should have a good leader with good leadership and competencies. In AVON, one of the main issues that that are facing is to the highest degree of them are not processing comprehensive leadership and appropriate core competencies.A core competency is fundamental knowledge, ability, or expertise in a specific subject area or skill set. Source Rafael Gutierrez, 2003. Core Competency. Online Available at Accessed 30 September 2010Base on the AVON case study, should Susan Kropf to be the next leader of AVON, she not only o f necessity to process a good operation and global marketing core competency skill which she already has. But withal develop the following core competenciesFinancial and Administrative skill which Edwina Woodbury has. To able to sustain company financial health growth.Crisis management and cost cutting skill from Christina Gold.Answer to Question 3The main issue of AVON is due the lack of competitive advantage in global trade. Should AVON, like to gain a reform business position, they should focus on building up the Completive expediency in the globalisation era.Definition of Global TradeAlso refer to Globalisation. As economies become more connected to other economies, they have increased prospect but also increased competition. Source globalization, nd. Investorwords. online Available at Accessed 30 September 2010Globalisation describes a process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportat ion, and trade. The landmark is sometimes used to refer specifically to economic globalization the desegregation of national economies into the international economy through trade, foreign direct investment, dandy flows, migration, and the spread of technology. Source Bhagwati, Jagdish (2004). In Defense of Globalization. Oxford, current York Oxford University Press.Definition of emulous AdvantageThe Competitive Advantage is the ability gained through attributes and resources to perform at a higher level than others in the same industry or market (Christensen and Fahey 1984, Kay 1994, Porter 1980 cited by Chacarbaghi and Lynch 1999, p. 45)In VAON, they do not gain a Cost Advantage simply because their internal cost is high, unnecessary expenses such like New York City Ballet and the New York Philharmonic session ticket. They also not leverage the advantage of net technology and still relay on Door-to-Door selling approach. They also do not seem to have differentiation advantag e within the company.AVON should consider taking below steps to gain Competitive Advantage in the Global TradeCost leadership Is there any way to make cost advantage among all the competitors in this borderless era? They can move the production line move to a rural to provide lower cost of production. Or leverage Technology advantage such like internet to cut the advertisement cost or agent cost? Like Dell has been very successful on its direct model to outreach consumers apply the internet order system.Differentiation How to make AVON product unique from other product? AVON can consider using product development strategy to improve product packaging to oblige the market awareness.Focus AVON should avoid participate in all product range. And focus on niche product that they are good with. And become the leader of that particular area/product.