Strategic Management Essay

2525 Words11 Pages
1. Determine the impact of the company’s mission, vision, and primary stakeholders on its overall success.

Avon Products Inc is a well-known worldwide producer and distributor of skincare, cosmetics, and household items has been in business for the past 126 years (since 1886) was founded by David McConnell. Avon Products Inc operates in over 140 countries. I believe in Avon because I sell the products on a part-time basis for the past three years. The impact of Avon’s mission, vision, and primary stakeholders on its overall success is determined by the company’s revenue, awards, recognition, and their business strategy to remain the leading cosmetic company throughout the world.

Founded in 1886, Avon Products, Inc. (Avon) is the
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When a company strays from its core competencies, it can benefit or damage a company. Changing the capabilities of a product to improve it and staying one step ahead of the competitors. When doing this and customers accept it, this usually means a huge profit line. Now, when marketing these changes, the company must avoid a marketing myopia. The failure is to recognize core competency of its business. The growth of the company must focus on the customers and the value they have placed on a product. By focusing on the improvement of the product and not the value marketing myopia can set in and damage the core competencies.

2. Analyze the five forces of competition to determine how they impact the company.

The Five Forces of Competition Model consist of the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products, and rivalry among competitors. I have selected Avon which is the leading company in performance apparel industry known for its moisture wicking performance apparel products.

The threat of new entrants: The obstacles that the new competitors may face are the capital requirements which involve having financial resources to invest.
The bargaining power of buyers or customers: Customers (buyer groups) are powerful when they purchase a large segment of an industry’s

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