Assignment 2: Avon Case Study
Avon Products Inc.
Avon Products, Inc., which started out as the California Perfume Company, is a global consumer products company that is 122 years old. The company was originally founded by David H. McConnell, who went door to door giving out free samples of perfume as incentives to his customers to buy his books. He noticed that his customers were much more interested in the oil perfumes, than buying his books. The company’s focus has always been to empower women around the world economically, which began a type of radical financial restructuring process. The organization quickly grew to become a leader in the direct selling of cosmetics, fragrances, and skin care products. (Goldstein & Carter, 2009).
Provide a brief description of the status of the company that led to its determination that a change was necessary.
The main core purpose and function of Avon Products is the manufacturing and marketing of beauty products which are distinctively classified in three different types based on the nature of the product. Avon Products gained an outstanding profit through market flexibility where its products were sold to distributors and direct consumers Leadership is one of the main core factors which merits the organization necessity to change. Under Andrea Jung’s leadership, Avon Company endured great losses through the leadership strategic decision to merge and partner with other business firms like JC Penney. This ultimate integration decision by Avon Company’s CEO resulted in the organization incurring higher losses, brand name loss and reduction in profit through shares distribution. Moreover, diversification influenced negatively. The performance of the organization, due to loss of the organization brand loyalty and merging with other companies enhanced greater sales in Russia and Europe but in the United States, sales drastically reduced which eventually resulted in loss (Strang, 2015).
Another aspect which enhanced Avon’s performance was failure to capitalize and incorporate technology into its operation such as online business access. Conceptualization of technology into business promotes effectiveness and efficiency in the organization’s operation which can ultimately result in profit realization. The determination to change is effectively necessitated by the fact that management has failed to spearhead productivity in the Avon Company. Online business ensures that the organization’s products are advertised globally which increases profit through more sales. Paperwork definitely promotes misappropriation of finances and lack of accountability which can negatively influence the performance of the organization (Ochôa & Pinto, 2015).
Lack of proper implementation of a strategic plan, the company automatically advocated the change as a necessity. The staff and employees of the organization basically lacked clear leadership direction for strategies in short and long term goals which had to be addressed appropriately. Failure to motivate employees decreases the performances of any organization production as well as the objectives and vision.
The appropriate mechanism in which talent can be identified and explored under the Avon Company is weighing the strengths and weaknesses of the employees and management to ensure the outstanding performance of the organization in order to overcome rising challenges (Stein, 2005).
According to Avon Products, there are evident talent weaknesses. The organization’s management is poor at recognizing the appropriate pool of talent which can increase the organization’s objectives and strategic plans and actualize its goals. Ensuring efficiency and effectiveness in the organization increases productivity. High performers in the company were not motivated as well as those poorly performing. Poor performers were not cautioned or given corrective measures. Other talent weaknesses consisted of things such as non-employee evaluations and lack of communication. Employees were unaware of poor mechanisms and corrective measures directed by management. Additionally, employees felt meaningless which impacted poor decision making thus hurting the overall performance of the company. The restructure of this talent, though challenging definitely enabled the Avon Company to overcome inevitable challenges and meet the fundamental strategic plans and objectives of the organization (Goldsmith & Carter, 2009).
Identify the model for change theory typified in the case study of your choice. Discuss what led you to identify the model that you did.
The Avon Products’ CEO Andrea Jung, took over the organization’s leadership in 1999. Through this period of leadership, she subjected the organization to drastic changes in policy and strategic development which had ultimate impacts. According to this case study, the fundamental ideal for change where the core objective is to ensure that factors’ influencing the performances of the Avon company productivity is properly addressed. Experienced and well trained individuals were incorporated in analyzing the organization’s strategic plan in order to consult and guide the organization to meets its core objectives and goals. Recommendations from the consultants were compiled upon the restructure of Avon Company’s core objectives.
The steps in which Avon Company need to implement based on the consultant’s recommendations are the employees flexibility to adopt a new model of performance in order to trigger outstanding productivity.
Urgency of change is important for implementation as this approach definitely enhances fixation on key vital procedures which ensure that the products of the organization are effectively distributed to stores in a timely fashion to avoid inefficiencies (Mullins & Walker, 2013).
Vision and communication changes are other recommendations within the change model in which consultants recommend the organization’s management should effectively comply with in order for the organization to meet its fundamental goals and objectives. Vision influences the organization’s employees to perform exemplary by ensuring effective productivity. Communication within the change process influences the sale of more products which in return increases profit amongst the organization. This particular approach can be achieved through conceptualization of the change process (Sleezer, Wentling & Cude, 2002).
Structure and strategy changes are appropriate approaches which the organization need to adopt into its functional tool as this will enable the Avon Company in the domestic market. The main significances of this change step are to impact the organization’s performances positively where leadership initiative and decision is embraced and implemented to increase organizational goals.
Incorporation of technology into the organization ensures outstanding productivity of the organization. The use of the internet can sell its products to new customers globally, this is basically achieved through restructure of the current system. Leadership and organizational plans are the most important aspects that need to be incorporated within the Avon Company (Mullins & Walker, 2013).
Talent weaknesses are the main factors which undermine the nature of the Avon Company operations. High performances are achieved through competitive talents and motivation. Talent challenge is actually achieved by converting weaknesses into strengths (Collings, 2014).
Illustrate the types of evaluation information that were collected and how they are used to benefit the company.
One of the main mechanisms in which data can be acquired is through accurate appraisals. Improvement within the organization can be achieved when the managers and supervisors ensure that feedback is communicated effectively to the staff.
There are different types of evaluation methodologies that include individual evaluation and group evaluation techniques. According to the Avon Company, case studies are different evaluation techniques which enhance performance and productivity. Talent challenge is one of factors that negatively affected the performance of the Avon after realization of the significance of talent management to the organization, Avon’s goals and objectives were modified. Management is another fundamental aspect that needed to change in order to strengthen the implementation of technology in the performance of the organization (Sleezer, Wentling & Cude, 2002).
When management remains intact with the employees through effective feedback, they can ensure effectiveness within the organization. It is very important to ensure that active leadership transition is necessitated in order to influence talent.
Also, the scope through which egalitarian talent ultimately enhances the Avon Company by employing a high pool of talent. Feedback between the employee and management is very significant in ensuring that high performances are achieved within the organization. In the case of poor performance, it is very important to ensure that appropriate training is given in order to correct the performance productivity (Sleezer, Wentling & Cude, 2002).
Speculate about success of the changes within the next five (5) years and how adjustments could be made if the results become less than ideal.
The integration and the merge of Avon Company products with other firms in the early 1990’s subjected the organization to a new corporate culture. Culture is one of the core pillars of the organization as it entails policies and strategic plans which govern the organization’s operations and activities. Effective and efficient management of culture definitely enhance higher revenues. Based on this case study the implementation of the recommendations have positively influenced the nature of management, workforce talents and the scope of culture which has enhanced business performance (Collings, 2014).
Talent management is another achievement that Avon has appropriately realized. Talent weaknesses and challenges have been restructured in the most viable form as the organization’s communication mechanism as evolved through proper feedback response between the management and employees. The workforce’s exemplary performances have influenced the organization’s core objectives and goals (Pilot, 2014).
Another aspect that needs to be implemented in order to ensure the goals are fully incorporated within the organization is the online business. This is the most vital strategic mechanism to ensure that the organization’s products are accessible to more customers. Technology also increases management’s communication to its staff and customers through effective feedback response (Hsu, 2009).
Implementation of the Avon Company’s consultant recommendations has definitely enhanced strategies that ensure domestic market is greatly achieved. Moreover, initiation and invention of new organizational brand models have increased greater profit margins within the company (Rocheleau, 2006).
Goldsmith, M., & Carter, L. (2009). Best practices in talent management: How the World’s Leading Corporations Manage, Develop, and Retain Top Talent. John Wiley & Sons.
Collings, D. G. (January 01, 2014). The Contribution of Talent Management to Organization Success. 247-260.
Hsu, H.-C. (January 01, 2009). Managing the Information Technology.
Mullins, J. W., & Walker, O. C. (2013). Marketing management: A strategic decision-making approach. New York: McGraw-Hill.
Ochôa, P., & Pinto, L. G. (January 01, 2015). Convergence towards Excellence Diversity.
Pilot, J. (2014). Driving sustainability to business success: The DS factor-management system integration and automation.
Rocheleau, B. (January 01, 2006). Evaluation and Information Technology.
Sleezer, C. M., Wentling, T. L., & Cude, R. L. (2002). Human Resource Development and Information Technology: Making Global Connections. Boston, MA: Springer US.
Stein, E. W. (July 01, 2005). A Qualitative Study of the Characteristics of a Community of Practice for Knowledge Management and Its Success Factors. International Journal of Knowledge Management, 1, 3, 1-24.
Strang, K. D. (January 01, 2015). Exploring Marketing Theories to Model Business Web Service Procurement Behavior.