AVON Case Analysis Essay -- Business Management Studies Essays

AVON Case Analysis Organizational Mission Avon wants to provide everyone with high quality and innovative health and beauty products as well as financial opportunities through sales representatives that are easily obtainable, in many ways, in every part of the world. Avon hopes by bringing these products to everyone everywhere through global markets the company can improve the quality of life for anyone around the world. Corporate Objectives Corporate objectives bring structure to a company’s operations so it will sustain growth, achieve its mission/vision and set the outcome and target for the company to achieve. Corporate objectives include financial and strategic objectives. Financial Objectives: Growth in Sales: In 2001 the success of the Goodbye to Breast Cancer lipstick campaign, inventory clearance programs, and the increase of active representatives acquired through the successful implementation of the Sales Leadership program resulted in revenues growing 5% from $5,682 million in 2000 to $5,958 million in 2001. The growth in sales was due to the 9% increase in units because of the success of the programs implemented that are mentioned above. Avon plans to increase sales annually by continuing to recruit Leadership Representatives around the world, utilizing the Internet to help these Representatives sell Avon products more efficiently, and extending the Avon brand to new products and possibly new channels. (3) Bigger profit margins: Lower sales in Latin America than expected and additional strategic spending on consumer marketing initiatives caused the slight decrease in profits for the 2001 year. The drop may have been a lot worse if it was not offset by considerable margin improve... ... 3/20/02 Vol 239 P. B12A 12. Direct Marketing, Garden City â€Å"Avon to Target Teens† November 2001Anonymous, Volume 64 Issue 7 p. 22 13. Investor Relation Business â€Å"Avon Ups Johansen† Editorial Staff, January 28, 2002, p.1 14. Brandweek, â€Å"Avon Calls on Upscale Women for Becoming† by Christine Bittar, August 13 2001, p.6 15. Quarterly Report (SEC for 10Q) 16. â€Å"Unbecoming† by Moreno, Katarzyna, Forbes, June 10, 2002 Vol. 169 Issue 13 17. Business and Company Resource Center â€Å"Cosmetics, Household, and Personal Care Products US outlook† Lewis May 2, 2002 18. â€Å"Alliance Formation with Direct Selling Companies: Avon and Mattel†, Lawrence B. Chonko, Journal of Personal Selling and Sales Management, Winter 99’ Vol.19 Issue 1 pg 51. 19. â€Å"Most admired Soap and Cosmetic Companies, 2002†. Fortuen, March 4, 2002. pg. 77