Analysis Of The Article ' New Avon Ceo Vows

1167 Words Dec 3rd, 2015 5 Pages
Article Summary
In the article, “New Avon CEO vows to restore the 126-year-old beauty company to former glory,” Jenna Goudreau (2013) interviews Avon CEO, Sheri McCoy, on the current issues facing Avon Products around the world and the results of management transitions in the company.
Over the past few years, Avon’s stock and net income has declined as a result of misplaced focus in different areas throughout the company. Under the former CEO, Andrea Jung, the company had an internal focus, was expanding too fast, and failed to recognize the needs of consumers in different markets. Under the new CEO, Avon is improving by focusing more on sales representatives, cutting jobs, reducing spending, and pulling out of failing markets. Additionally, they are incorporating information systems and social media as selling tools, catering to individual markets, and foregoing other growth areas until the core business is stable. With these improvements, Avon expects that it will see a turnaround in the coming years.

-Brand image losing value
-Declining North American operations
-Decreasing market share Strengths:
-Low costs for operations
-Well established distribution in various markets with wide range of products
-Committed workforce with a common goal
-Internal disagreements over leadership
-Competition from a variety of companies
-Lawsuits regarding compliance on an international scale

Strategy 1: Solidify leadership…
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