Avon
Merlin Siler
IBA301
Avon
Upon being able to review all material from within our textbook for the company known as Avon, I have realized that they have had a lot of good and bad things happen upon them. this is to say for then all over the world. They have been around for a very long time and I have often heard about them growing up. I even remember my mother and grandmother purchasing their products. They have been here since 1886. This is a very long time in the making. A factor as to how they have been so successful would be due to their sense of values and principles. They really have stuck by them and they are really strong. We can still see this within their company even today.
Back in the or around the midle-2000s because a strategy known as localization. The company was always doing things such as taking their strategy in sales and adjusting it along with marketing it on the taste for the public all over the globe as we know it. they also had the direct sales model and were doing their best to implement it by means of tons of people from all over the world to go and sell products that were from them. with this can a big advantage of always being able to locate a representative in sales no matter where you were in the world. Managers were also being given the ability in doing things such as making and creating marketing decisions, sales and perhaps even with the chain of supply. We could even deem this as being a disadvantage because there could be some lack within consistency for the company. a drawback of this was the fact of taking your faith and having to entrust within representatives. With that could come the fact of losing a big part of the power making decision in the process. We can see that a big majority of Avon’s revenues come from overseas. It is shown that there is around 70% that the company does get from the markets that are foreign even with the fact that United States consumers are spending just the same amount on beauty products just as the consumers from Russia, and China are (Farnum, 2009).
In 2005, we can see that there was a drastic change within the strategy of Avon. This was because of the growth within the company and because the sales had taken a really big dive. There was a weakness within the markets that were in Europe and the ban that China had for Avon sales and because of some other alike competitors. Benefits that were major for the changes was the fact that Avon had tried their best in creating an organization where there was the emphasis of communication, accountability and performance was strong. The focus that they had on trying to sell their products globally rather than locally allowed for the elimination of levels of leadership that was not necessary and it also made it easy for them to shut down a few regional centers they felt was useless. Our textbook clearly shows that it was these changes which had helped the comp0nay out a whole lot. These changes came with no real drawbacks and this was a god thing (Hill, pg. 405)