Assigned by mam sehrish

group members
marvi shoro
hayat khatoon

Strategic
management
project
Index
Introduction…………………………………………………………….

Vision & mission statement……………………………………..

Mission components matrix…………………………………….

Swot analysis…………………………………………………………..

Swot matrix………………………………………………...............

Competitive profile matrix……………………………………….

SPACE matrix……………………………………………...............

BCG matrix………………………………………………………………

Recommendation…………………………………………………….
 Introduction
Avon Products, Inc. is a manufacturer and marketer of beauty and related products. The
Company's product categories are Beauty, and Fashion and Home. Beauty consists of
skincare (which includes personal care), fragrance and color (cosmetics). Fashion and Home
consists of fashion jewelry, watches, apparel, footwear, accessories, gift and decorative
products, housewares, entertainment and leisure products, children's products and
nutritional products. The Company's segments are based on geographic operations and
include commercial business units in Latin America; Europe, Middle East and Africa, and Asia
Pacific. The Company's business is conducted primarily in one channel, direct selling. The
Company's products include Anew Clinical Overnight Hydration Mask, Anew Power Serum,
Ultra Color Indulgence Lip Color, and Super Extend Winged out Mascara, Big & False Lash
Volume Mascara, and Outspoken Party! By Fergie Fragrance and Avon Attraction for Him and
for Her Fragrances.

1. Vision statement
“To be the company that best understands and satisfies the product, service and self-
fulfilment needs of women globally.”

Vision

“To be the best company of beauty and fashion that understands and satisfies the product,
service and self-fulfilment needs of women globally.”

1.2 mission statement

The leader in 3 global beauty 2, women 1 choice for buying throughout the world
products and services of the highest quality with guarantee of satisfaction.

7 Premier direct selling company, most admired company, provide individuals best place
to work 9 and to have the largest foundation dedicated to women’s causes 8.

1.3 Mission statement component Metrix

1 2 3 4 5 6 7 8 9
Customer Product Market Techno Survival Philos Self- Public Emplo
& service ophy image yee
-logy Growth Concept
& profit

Yes Yes Yes No No No Yes Yes Yes

1.4 Mission statement

The leader in 3 global beauty 2, women 1 choice for buying throughout the world
products and services using advanced technology 4 and experts to provide highest
quality with guarantee of satisfaction and customer values 6, 7 Premier direct selling
most admired company in the world, business growth in fashion and beauty 5, provide
individuals best place to work 9 and to have the largest foundation dedicated to women’s
causes 8.

2-IFE Matrix

no Strength Weight Rate Score

1 Wide range of brands and markets 0.20 4

2 Supply chain capabilities 0.20

3 Strength of highly motivated, skilled of global sales force

4 Enough liquidity to survive in the near future

5 World’s largest direct selling company

no Weaknesses Weight Rate Score

1 Poor management strategies

2 No centralized structure

3 The percent revenue declining in every region

4 Long term debt increased to 2.62$ billion from 2.45

5 In effective business strategies

2.1 EFE Matrix

no Opportunity Weight Rate Score

1 The global beauty industry is growing 0.15 4 0.60

2 Growth in the male product line 0.10 2 0.20

3 Diversity of products 0.15 4 0.60

4 Awareness of fashion increases 0.10 3 0.30

no Threats Weight Rate Score

1 Societal values and lifestyle 0.10 2 0.40

2 Marketing techniques 0.15 2 0.30

3 Competitive pressure 0.10 4 0.40

4 Government policies 0.15 2 0.30

Total 2.9

Swot strategy matrix

So strategy Wo strategy

1s’1o; develop 1w,3o; Develop the

products that are in strategies to manage
demand. resources and
 3s, 1o; expand the diversify the products
sales through highly with quality
motivated, skilled of
sales force globally

St strategy. Wt

S2,t2 get advantage W2t3 ,Develop the

of new techniques proper infrastructure
and increase the decrease the
supply efficiency competitive pressure

3- Five forces model

Threats of new entrants (high)

Competitive rivalry (high)

Bargaining power of suppliers (low)

Bargaining power of buyers (low)

Threats of substitute product (high)

4- Competitive Profile Matrix

Factor weigh Avon scor L’Orea scor Marry scor Revlo scor
t Ratin e l e key e n e
g Rating Ratin rating
g
Customer 0.15 2 0.30 4 0.60 2 0.30 2 0.30
loyalty
Product Varity 0.18 4 0.72 3 0.54 2 0.36 2 0.36

Technology 0.15 1 0.15 2 0.30 1 0.15 1 0.15

Brand image 0.11 3 0.33 4 0.44 3 0.33 3 0.33

Global 0.11 3 0.33 4 0.44 2 0.22 3 0.33

expansion

Price 0.10 2 0.20 3 0.30 2 0.20 3 0.30

competitivenes
s
Advertising 0.10 3 0.30 3 0.30 2 0.20 2 0.20

Market share 0.10 4 0.40 4 0.40 2 0.20 3 0.30

Total 1.00 21.00 2.73 3.33 1.96 2.27

5- Liquidity ratios

Current ratios 2012 2011

Current ratios are better for 1.45 1.41

company

2012 2011

Quick ratios 1.03 1.01

5.1 Leverage ratios

2012 2011

Debt-to total-assets ratio 1.37 1.03

 Time-interest-earn ratio 3.0 9.1

5.2 Activity ratios

2012 2011

Inventory turnover 9.43 9.72

Fixed assets turnover 3.1 3.10

Total assets turnover 1.45 1.45

5.3 Profitability ratios

2012 2011

Net profit margin -3.56 0.045

Return on assets -5.17 0.066

Earnings per share -0.051 0.69

6-Space matrix

6.1-Financial position

Return on assets 1

Inventory turnover 3

Net profit margin 1

Earnings per share 1

5.00

6.2- industry position Rate

Growth potential 2

Financial stability 3
 Ease of entry 4

Profit potential 2

11.0

3 -Stability position Rate

Technological changes -2

Currency changes -1

Competitive pressure -3

-6.0

4 Competitive positions rate

Market share -1

Service quality -2

Customer loyalty -2

Online networks -2

-7.0

Financial Position = 5

Industry Position = 2.75

Stability Position = -3

Competitive Position = -1.75

cdac oo g e
gnmf e rs
epn rs s e i i
vt i ae t
itv mi e v
pe o
r t a
n t

BCG matrix
HIGH LOW

Beauty ???

Star

Fashion Home

Cash cow dog

Star: are units with a high market share in a fast-growing industry. Avon has a beauty
that has 72 percent of company sales.

Question mark: businesses operating with a low market share in a high growth
market. Has not such as product or service that comes in this category

Dog: more charitably called pets, are units with low market share in a mature, slow-
growing industry. Avon has a home product in this category.

Cash cow: where a company has high market share in a slow-growing industry.
Recommendations.

Most important to have make clear strategic plan

It must be maintained the quality differentiation strategy in order to offer

superior products and to thank all consumers’ categories.

There should run more advertising spots on television channels at times

with high ratings.

Acknowledgment

https://www.google.com.pk/search?
q=space+matrix+of+avon+company&biw=1366&bih=589&source=lnms&tb
m=isch&sa=X&sqi=2&ved=0ahUKEwjr8LHR4PXQAhVL0xoKHfkECpsQ_AUIBig
B#imgrc=gmV8sc0eBJQ2XM%3A

http://www.upet.ro/annals/economics/pdf/2011/part4/Palade.pdf

https://prezi.com/xyk5qpc8q_fo/avon-strategic-plan/

https://www.bing.com/images/search?
q=avon+company+five+forces+model&view=detailv2&id=3D8DBC6F6D1B36
7B45E65BBDA3C3344DD6B1259E&selectedindex=10&ccid=2EdosKEd&simid
=607995223808213632&thid=OIP.Md84768b0a11de55be5e25b64eaeb7335
o0&mode=overlay&first=1