Name of the university: VALLEY VIEW UNIVERSITY
Department: MBA STRATEGY
Course name and code: STRATEGY MANAGEMNT
Topic: ADVANCE STRATEGY MANAGEMENT
Name and I.D of student: VITUS AGONGO – 221TMBA010141
Lecturer’s name: EBENEZER OWUSU-YEBOAH
Date of submission: 30TH OCTOBER, 2021
1. Andrea Jung strong as chief strategist of Avon product. She never feared the need to make
drastic changes that would help drive Avon back to the top of the cosmetic. She knew that
serious issues were present at the company needed to be address. These includes product
appeal, marketing strategy, pricing, process reengineering, and product innovation and
employee motivation. Her strategy was to fix these problems by fixing the entire company
structure, which include changing the product packaging for better. I felt that Andrea Jung’s
performed well in her duties to help Avon move back to the top of the cosmetic. I would grade
Andrea Jung ‘A’ because she developed an excellent strategy that helped increase the sales
from 1.5% in 199 to 6% in 2001.
2. Andrea Jung’s strategic vision for Avon was for them to be the company that understands and
satisfied the products, service and self-fulfillment needs of women globally. I think their new
strategic direction made sense. In 1999 the company annuals sales growth had slowed to less
than 1.5% . Something had to be done. She knew products had to be made to fill needs of
different age of group and race. It was good for Avon to become modern and update. Avon’s
new strategic direction would launch an entirely new line of business, the development f
innovation products now packaging, new channels to do distribution, a new approach to supply
chain management, new sales models and new approach build their image.
3. Some of the financial and strategic objectives Jung’s has set for Avon were as follows:
i. Grow global beauty category sales through continued investment in new product
development, advertising, and sampling.
ii. Provide representatives with greater career opportunities through sales leadership,
enhanced sales Internet capabilities, and training.
iii. Reduce inventory levels while at the same time improving service to representatives
iv. Improve operating margins by 50-100 basis points thru business process redesign
v. Successfully launch the Avon Wellness line of nutritional supplements and vitamins
vi. Begin to build a profitable retail business to fuel future growth
vii. Develop e-commerce opportunities for Avon and its sales representatives
viii. Pursue market opportunities in China and Eastern Europe
4. Previous Strategies of Avon :
i. Door-to-door sales method (Direct sales approach)
ii. 1937 Nationwide print advertising and a sponsored radio program “Friends”
iii. 1944 Introduced mechanized billing and take the company public – with shares offered over–
the-counter in 1946
iv. In 1954 Avon has just begun a hugely successful television advertising campaign, the historic
“Avon Calling”. In 1956, Avon also opened for business in Cuba.
v. 1979 Avon sponsors a Championship Tennis Circuit for young people, and has held two
