Corporate analysis of avon
In 1999, Avon Products, Inc., was one of the world's largest direct-selling merchandisers of beauty and beauty-related products. Avon markets product lines to women in the United States as well as in many different countries through 2.8 million independent sales representatives who sell primarily on a door-to-door or direct selling basis. Total operating profits in 1999 were$ 549.4 million, up slightly from $473.2 in 1998.However, predictions show that Avon's profit in its fourth quarter is expected to fall short of expectations.A series of corporate principles were developed by McConnell and provided direction and continued to influence decision making for the company throughout its history. The principles are (1) to provide individuals an opportunity to earn in support of their well-being and happiness, (2) To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction, (3) To render a service to customers that is outstanding in its helpfulness and courtesy, (4) to give full recognition to employees and Representatives, on whose contribution Avon depends (5) to share with others the rewards of growth and success (6) to me
" The company has held to this vision. Situational AnalysisAvon's main strength is the fact it is the "world's largest direct-selling merchandiser. The only one that is above 1 is 1998's current ratio. "Some of these marketing strategies are also offered in other countries in addition to selling in storefront shops, boutiques, and direct mailings, this bypasses the salesperson and allows someone to order by phone or fax. Makeup, however, is one of the only products that can be sold almost anywhere. They have also built a spa in New York City in hope to improve the company's image. Selling in boutiques and department stores are good ways to reach the working woman who is more likely to stop by the department store on the way home from work than is likely to be sold to by a sales representative. They also have and Executive Vice President & COO, who handles international and new business development, and an Executive Vice President & COO which handles North American & Global Business Operations. External threats include the competition, legal regulations, and cultural and political environments. Their strategy of moving globally has helped them overcome a downturn in domestic business. Internally this doesn't allow for a highly trained sales force. In order to continue growing Avon needs to keep researching the foreign marketplace. It consists of a few large, well-established firms and small organizations that sell very diversified products. The above-mentioned strategies are types of growth strategies.
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