Business

995 Words Jul 16th, 2012 4 Pages
1-What Business Strategy was Avon pursuing? Please include your evidence In 2005, Ms. Andrea Jung, CEO of Avon, pursued the localization strategy which is based on customizing the firm’s goods and services for each global market. We can see this in the ways she allowed country managers to make their own decisions, develop their own products, and determine their supply chains. Also, the marketing strategy varied from country to country. However, when in late 2005, Avon’s stock fell 45 percent, Jung changed to a global strategy. Some of the decisions that she made in pursuing the global strategy were: centralizing new-product decisions and exercising more control over manufacturing, marketing, and product development.
2-What, in your
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Also, there would be a risk from currency fluctuations because Avon would operate globally and convert their money to a parent company’s currency which is a dollar. The third activity is to reduce the huge numbers of products. It would be better for Avon to produce a certain number of reliable products rather than produce a huge number of the products of which most are not profitable. It could save money by eliminating some products and using this money to develop a new product or improve the current profitable product. Also, I would focus on ways to provide high quality products with low production cost as much as possible. One way to keep costs low is by reducing the fixed cost when producing a large number of the same product, and sell them worldwide. Thus, we would offer a good low-priced product which helps us to get more markets and maintain customer loyalty for the Avon brand. The risk associated with this approach is whether the product would succeed or not . We can use the Social Media to ask our customers about products before we offer them in the real market. By doing this step, we can anticipate how many quantities we can produce from our customers’ comments. Over all, from these business activities we can see that all tend to reduce the cost. Thus, they could make more profits. In the social media, Avon can market its products by using its pages with these tools and save the budget that would be used in the TV

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