Avon Case

Avon Corporation In order to begin to understand the industry in which Avon functions as well as the specifics around the introduction of the new EAS drive, I used the 5Cs analysis to outline the company’s current situation. Situation Analysis via the 5Cs:

While there are many various global issues that affect the International Human Resource Management to run efficiently, there are two key concepts that play a major role in understanding how to approach them with cohesive and a well coherent strategy; they are the International Human Recourse Management Strategy and Understanding the Cultural Environment. In the International Resource Management strategy, many companies will do their research in finding companies that offer the

This has highlighted a crucial issue for international companies to be aware of the cross-cultural implications in the conception, design and implementation of the various market entry strategies for the Chinese markets, especially when considering the Human Resources Management strategies since Corporate Strategy will in turn determine the Human Resource (HR) strategy to be deployed.

In an era of increasing competitiveness, globalization, economic rationalization, deregulation, technological revolution and changing workforce there is an ever-increasing need for human resource management to be able to capitalize on the special challenges that this changing environment brings. For a company to be able to successfully keep ahead of the competition, human resource management is seen to be a significant contributor.

The rapid pace of Globalization has led to a change in the global economy during the past several decades; it is believe that factors such as trade liberalisation, access to cheaper labour and resources, similarity of consumer demand around the world, and advances in technology and communication has widened the market of consumption, investment as well as production on a global scale. These globalization driven factors created new challenges and global competition for businesses around the world thus as a response many companies decided to expand their operation across national borders in order to be competitive. A company that operates their business in at least one country other than its country is called Multinational

Briscoe D., Schuler R., Tarique I., (2011). Internatonal Human Resource Management : Policies and Practices for Multinational Entreprise.

Avon is so much more dependent on its foreign operations than on its home operations for many reasons. First, Avon realized that the level of competitiveness in the United States market has grown vastly. Furthermore, there is almost no "remaining untapped market for cosmetics, fragrances, toiletries. To grow rapidly in the

However, Gentry and Sparks, stretched this philosophy further in that they included, “uncertainty avoidance, power distance, institutional collectivism, in-group collectivism, gender egalitarianism, assertiveness, and future orientation” (Gentry, and Sparks, 2012, pg. 19). Of these different variables for the success of companies operating on foreign soil, four have stood as major impact to Human Resource Manager and Specialist; and these are institutional collectivism, uncertainty avoidance, gender egalitarianism, and future orientation. Thus, there are relevant challenges to Human Resource Managers and Specialist and these are more on the ground of norms and mores. The thinking pattern of foreign nationals, uncertain circumstances are seen as threats, or may be misunderstood as company failure. Gentry and Sparks speaks of, “foreign nationals may place blame on management for not knowing the outcome of a situation or challenge” (Gentry and Sparks, 2012, pg. 20). Gender egalitarianism the aspect of what a gender is born to do or perform. There are contrast in work forces as foreigners may see the role of a male to be the bread winner of the home and the women more of a house wife. All these factors affect the research of a Human Resource Specialist and Manager for the success of any organization operation overseas.

I believe Avon is very successful in its international human resources management in global market. First of all, Avon’s first female CEO took charge of company and implemented efficient policies to make the company get out of debt problem and sluggish sales problem. Secondly, Avon also focus on international market. They hire millions local door-to-door representatives who know well about local

INTERNATIONAL MANAGEMENT: CULTURE, STRATEGY, AND BEHAVIOR, EIGHTH EDITION Published by McGraw-Hill, a business unit of The McGraw-Hill Companies, Inc., 1221 Avenue of the Americas, New York, NY 10020. Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. Previous editions © 2009, 2006, and 2003. No part of this publication may be reproduced or distributed in any form or by any means, or stored in a database or retrieval system, without the prior written consent of The McGraw-Hill Companies, Inc., including, but not limited

Under the direction of the new CEO, a new strategy was developed to reinvent Avon's image, improve customer satisfaction, and to increase profit margins and market share. Avon has gained an outstanding reputation as the best direct seller of beauty products. Through the continued efforts and achievements of its sales representatives, Avon is now known worldwide. Avon's core competence has mainly been its direct selling busniess model.

Avon Products, Inc. (Avon), the US cosmetics giant, had considered China the keystone of its marketing effort in Asia. Years of effort and the development of a large direct marketing organisation in that country had made operations in China its most profitable and most rapidly growing market in Asia. On 21 April 1998 senior company officials from the New York headquarters and throughout Asia had gathe red in Guangzhou for what was supposed to be a festive occasion. During the meeting William Pryor, Avon 's head of China operations, was called away from his table to take a phone call When he returned, it was with devastating news. The Chinese government had just announced an immediate ban on all direct selling. In 113 years, Avon had used

According to the works of Chaney & Martin (2011) and Harris & Moran (2000), they agree that international management skills are in need for the increasing scope of international trades and investments. A large number of multinational companies have expanded their businesses through both developed and developing countries. Some of the business invest directly and others are partnership arrangements and strategic alliances with domestic operations. Their studies show that independent entrepreneurs and small businesses have started investing and competing in the world marketplace. Thus, to acquire corporations’ objectives, there is exceedingly a necessity for the development of strategic framework for cross-cultural management and communication in the current competitive global market. Chaney & Martin (2011) also noted that, cultural awareness and cultural differences are strongly important to the multinational corporations’ success. A good understanding of the culture where business is implemented can make international managers productive and effective.

Globalisation, as an integrated and independent world economy, has contributed to the rapid expansion of international trade and world’s economic growth (Paik & Vance, 2006; Mutsuddi, 2012). The increase presence of global firms is shifting domestic HR towards global HR in addition to carry out a wider span of HR responsibilities (Losey, Meisinger & Ulrich, 2005; Rao, 2010; Jie, 2011; Mutsuddi, 2012). The generation of cross-border labour market also had brought human resource management into an international context (Mutsuddi, 2012).

This case study focuses on Avon 's key strategies to improve profitability, including increasing innovation, ad spend and sales techniques. The uniqueness of Avon’s direct selling business strategy means that maintaining an effective distribution system is critical to their success. Direct selling is a popular option for people who are looking to earn money on their own time without the hassles of a 9-5. Work at home jobs are becoming increasingly popular and direct selling is no exception to this rule. The biggest benefit it offers is an extremely flexible schedule. These opportunities are especially popular with stay-at-home moms as it gives them the opportunity to contribute to the household income and get out of the house for a few hours (often working around their partner 's work schedule), while still being able to stay home with their children the majority of the time. Other people use direct selling as a chance to work from home in their free time to supplement other regular income. They begin selling their products to family, friends, and others who live in their communities. With the internet ever-present in our lives today, more direct sellers are also marketing products online. The seller might have parties to entice people to buy from them, or just take catalog orders. They also earn money by signing on other direct sellers for the company like in Avon. Direct selling offers dream fulfilling possibilities but you must