AVON Products Case Study

AVON Products Case StudyShould Top Management at AVON explicitly shape and change the culture of its organisation? Should Kroft, Woodbury, Jung or atomic number 79 has hopes of Succeeding Perrin, what should they do to develop their competencies and managerial expanding further so that the AVON board would look at them, and conclude that they have been there, and they have d peerless that? bring up the problems and issues at AVON, and suggest ideas how the caller-out could gain the competitive usefulness in the global trade.Date of Submission 02/10/2010Table of table of contentsTable of Contents 2Answer to Question 1 1Answer to Question 2 5Answer to Question 3 7REFERENCES 9CITATIONS 9Answer to Question 1Yes, the AVON top management should explicitly continue to shape and change the culture within the organization. Based on our study, we found or so issues faced by AVON Company as the followingAVON Managers are lack of sensitivity and tardily response to the external environme nt 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 profitability slumped in 1980s.Poor financial coiffureance at AVON has signalled the friendship for a need to become more responsive to a changing consumer market. Some unnecessary internal activities such like company session tickets for the Knicks and Yankees in the accomplish has also factored unnecessary cost to company. Those activities were scrapped later.As stated in the case study. Multiculturalism is the main challenge to the company as vital element in opposition customer demand and gaining competitive advantage.Those issues had badly contri plainlyed to AVON corporate culture and created impact for company performance in the pass. rendering of Corporate cultureSo what is the description of Corporate Culture? The definitions for corporate culture are numerous and are being refined and added to ever y day. The general academic view is that it is the shared, beliefs, assumptions, set, rules and norms the members of a bodied such as a corporation or department hold. While this is perfectly acceptable we prefer to take the view expressed by Marvin mandrel of McKinsey who said corporate culture is the way we do things around here. There are more sophisticated and certainly convoluted definitions for corporate culture but it is succinct and provides a good starting institutionalize for those who are new to corporate culture. Source Corporate Culture, nd. Dudley Consulting, Inc. On landmark obtainable at Accessed 30 folk 2010Its touchy to change AVONs culture, the way we do things around here does non practice a positive corporate culture this is due to wrong believes, value and rules employ to the company culture. They dont lead by good examples and good drawship.But AVON has done it and turns those wrong doing to a positive culture started 1990s, as followingAVON start c reates leadership campaigns such as sending middle managers for leadership development training.The entire management team participated in awareness training by leading transformation consultants.Management launch multicultural planning research project to surveyd company policies and practices regarding promotion.Indentify potential barriers to the advancement of women and minorities.Set up a task force crosswise corporate head quarters multiple profit centres with more than 100 employees.Company has developed goals.To continue built a positive corporate culture, AVON shall knock over below suggestions which is not practice from above 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 the local.Heroes. Individuals who typify to an uttermost(prenominal) the valu es of the group.Symbols. These may be staff mottoes, the corporate mission statement or anything that symbolises the core values.Rites. These are specific occasions, such as the annual character party, when the core values are publicly displayed. Formal award ceremonies are some other example. These are especially important for enculturing new staff.Rituals. This means a normal pattern of behaviour at a specific occasion, such as the office party if things are always done in a point pattern.Courses. Attending in-house courses is an important way of team-building and communicating the core values.Cultural Networks. This means the informal contacts between employees where they reinforce core values, especially by passing them from of age(p) to younger group members.Source organisation building a positive corporate culture, nd. tutor2u. Online Available at Accessed 30 September 2010With above ideas to shape the company culture, AVON is likely achieve the following advantages of Strong Corporate CultureA common interpretation of the Instruction, so work is done to a similar quantity and in a similar manner.Increase employee loyalty, and avoid expenses of employee turnover.Increase productivity of the company.Increase the Management control.Answer to Question 2Before we jump to the point for discussing who shall be taking over AVON dealership there are something more vital to discuss first.Definition of Leadership Good leaders are do not born. If you have the desire and willpower, you raise become an effective leader. Good leaders develop through a never ending process of self-study, education, training, and last (Jago, 1982)A simple definition of leadership is that leadership is the art of motivating a group of people to act towards achieving a common goal. Source Leadership, Susan Ward, About.com Guide. Online Available at Accessed 30 September 2010Leaders carry out this process by applying their leadership knowledge and skills. This is called Process Leadership (Jago, 1982). However, we know that we have traits that open fire influence our actions. This is called Trait Leadership (Jago, 1982)Leadership is simply 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 many years. Until the company decided to source another leader who is experienced as chief executive in another global company. It had shown that company direction is to hire another guru to be the mentor and lead existing executive which hope to groom them in future.Definition of competenciesA competency is a skill, ability, or knowledge set that can be taught or developed. All competencies have indicators that allow them to be observed and measured. A leadership competency model is a group of competencies linked to leadership excellence in a specific organization. A leadership competency model supports the or ganizations vision 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/ Human resources and labour dealing 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 most of them are not processing comprehensive leadership and appropriate core competencies.A core competency is primordial 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 needs to process a good operation and global marketing core competency skill which she already has. But also develop the following core com petenciesFinancial 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 better business position, they should focus on building up the Completive Advantage in the globalisation era.Definition of Global swopAlso refer to Globalisation. As economies become more connected to other economies, they have increase opportunity 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, transportation, and trade. The term is sometimes used to refer specifically to economic globalization the integration of national economies into the internationa l economy through trade, impertinent direct investment, capital flows, migration, and the spread of technology. Source Bhagwati, Jagdish (2004). In Defense of Globalization. Oxford, New York Oxford University Press.Definition of Competitive 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 symphony orchestra session ticket. They also not leverage the advantage of internet technology and still relay on Door-to-Door selling approach. They also do not seem to have differentiation advantage 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 country 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 using the internet order system. speciality How to make AVON product unique from other product? AVON can consider using product development strategy to improve product packaging to concord 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.