Question

Please respond to the following discussion post:

The strategy that Avon president Andrea Jung began to pursue to turn grow the company’s wealth was to follow the same guidelines in international markets that the American companies used, which was to give country managers considerable autonomy. This policy allowed them to use the Avon brand name in a direct-sales format that was the company’s hallmark (Hill, 2015, p. 404). Once Jung realized that this business model was not working for Avon she transformed the company by hiring seasoned managers from well-known global consumer products companies such as Proctor & Gamble and Unilever to regain control over communications, performance visibility, and accountability of the company (Hill, 2015, p. 405).This move was the beginning of a positive growth performance of the company, and by 2007, this strategy was starting to yield dividends. Jung began using stars to promote the Avon products which resulted in higher product sales, and an increase in its sales force.

Avon soon took another tumble in market shares in the year 2010 and 2011 because of an increase of competition from rival companies like Proctor & Gamble. Problems arising from technology issues and bribes from government officials in China caused Avon to be charged with violating the Foreign Corrupt Practices Act. After feeling the pressure from investors Jung relinquished her role as CEO in 2011. Sometimes CEO’s take risks that start out on a good path but after a while find that changes need to be made sooner than later in order to offset market changes that will affect company growth. Jung’s aggressive strategy proved to be a failure in the end and ultimately resulted in her ouster as CEO.

Answer 1

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