Académique Documents
Professionnel Documents
Culture Documents
Rizwan Qamar
M. Phil Fellow at Faculty of Contemporary Studies,
National Defence University, Islamabad
Presented by:
Avon Introduction
Brief History
Brief Company Overview
Organizational Structure
Mission, Vision & Slogan
Existing
Why change?
Proposed
Internal Assessment
List of Competitors
Major Closest Competitors
External Assessment
Outline
Competitors Analysis
Sales Pie Chart of Competitors
Strategy Analysis
SWOT Matrix
SPACE Matrix
BCG Matrix
By Product Division
By Geographic Division
The IE matrix
Grand Strategy Matrix
Decision Stage
QSPM
Possible Alternative Strategies
Introduction
Brief History
Brief Overview
Organizational Structure
Actual
Proposed
Avon: The
Company for
Everyone
Avon Slogan
Actual
Proposed
AVON Vision
Proposed Vision
Analysis
Word Women is
replaced with
Customers
To identify the industry
words beauty and
cosmetics are
included.
AVON Vision
The Global Beauty Leader We will build a unique portfolio of Beauty and related brands,
striving to surpass our competitors in quality, innovation and value, and elevating our image to
become the Beauty company most women turn to worldwide.
The Womens Choice for Buying we will become the destination store for women, offering
the convenience of multiple brands and channels, and providing a personal high touch
shopping experience that helps create lifelong customer relationships.
The Premier Direct Seller We will expand our presence in direct selling and lead the
reinvention of the channel, offering an entrepreneurial opportunity that delivers superior
earnings, recognition, service and support, making it easy and rewarding to be affiliated with
Avon and elevating the image of our industry.
The Best Place to Work we will be known for our leadership edge, through our passion for
high standards, our respect for diversity and our commitment to create exceptional
opportunities for professional growth so that associates can fulfill their highest potential.
The Largest Womens Foundation we will be a committed global champion for the health
and well-being of women through philanthropic efforts that eliminate breast cancer from the
face of the earth, and that empower women to achieve economic independence.
The Most Admired Company We will deliver superior returns to our shareholders by
tirelessly pursuing new growth opportunities while continually improving our profitability, a
socially responsible, ethical company that is watched and emulated as a model of success.
Proposed Mission
Characteristics
Broad in Scope
Less than 250 words
Identify the Utility of
Products
Social Responsibility
Includes Nine Components:
Customers, Product, Market,
Technology, Growth,
Philosophy, Self Concept,
Concern for public and
employees
Financial
Ratio
Analysis
INTERNAL ASSESSMENT
Net Sales by
Product
Category
2008
2007
2006
Beauty
72 %
70 %
69 %
Fashion
18 %
18 %
18 %
Home
10 %
12 %
13 %
100 %
100 %
100 %
Total
INTERNAL ASSESSMENT
INTERNAL ASSESSMENT
Revenue by
Product
Segments
($ million)
2008
% Age
2007
2006
Beauty
7,603.7
+ 9.6
6,932.5
6,019.6
Fashion
1,863.3
+ 6.2
1,753.4
1,562.7
Home
1,121.9
- 3.2
1,159.5
1,095.0
Total
10,588.9
+ 7.5
9,845.2
8,677.3
INTERNAL ASSESSMENT
Growth
Graph
By
Product
Division
INTERNAL ASSESSMENT
Revenue by
Geographic
Segments
Division
2008
2007
Latin America
3,884.1
3,298.9
North
America
2,492.7
2,622.1
Europe, Africa
and Asia
3,071.2
2,886.4
Asia Pacific
and China
1,242.1
1,131.1
INTERNAL ASSESSMENT
INTERNAL ASSESSMENT
Market
Positioning
Map
INTERNAL ASSESSMENT
Map
locating the
firms
Operations
INTERNAL ASSESSMENT
Strengths
1.
2.
3.
4.
5.
6.
7.
8.
9.
Weaknesses
1.
2.
3.
4.
5.
6.
7.
INTERNAL ASSESSMENT
Internal
Factor
Evaluation
Matrix
(IFE)
INTERNAL ASSESSMENT
List of
Competitors
EXTERNAL ASSESSMENT
Major
Competitors
EXTERNAL ASSESSMENT
Revlon
Mary Kay
EXTERNAL ASSESSMENT
AVONs Comparison
with Closest
Competitors
EXTERNAL ASSESSMENT
EXTERNAL ASSESSMENT
AVON
Competitors
Financial Strength
2008
REVLON
Market Cap
$ 9,710 M
$ 242.84 M
Employees
42,000
5,600
Revenues
$ 10.37 B
$ 1.34 B
Gross
Margins
63.03 %
63.48 %
EBIT
% 1,440 M
$ 171.40 M
Operating
Margin
12.07 %
11.42 %
Net Income
$ 807.9 M
$ 28.5 M
Growth
7.5 %
5.6 %
EPS
$ 4.72
$ 1.422
EXTERNAL ASSESSMENT
Opportunities
Threats
1.
1.
2.
3.
4.
5.
6.
7.
8.
9.
2.
3.
4.
5.
6.
7.
8.
9.
10.
EXTERNAL ASSESSMENT
External Factor
Evaluation Matrix
(EFE)
EXTERNAL ASSESSMENT
COMPETITI
VE PROFILE
MATRIX
CPM
EXTERNAL ASSESSMENT
Porters Five
Forces Model
Forces
Intensity
High
Low
Development of Substitute
Products
Low
Bargaining Powers of
Suppliers
Low
Bargaining Power of
Consumers
High
EXTERNAL ASSESSMENT
STRATEGY ANALYSIS
SWOT
Matrix
STRATEGY ANALYSIS
STRATEGY ANALYSIS
SPACE Matrix
STRATEGY ANALYSIS
BCG
Matrix
By
Product
Division
STRATEGY ANALYSIS
BCG
Matrix
By
Geographic
Division
STRATEGY ANALYSIS
STRATEGY ANALYSIS
Grand
Strategy
Matrix
STRATEGY ANALYSIS
Matrix Analysis
Alternative Strategies
SPACE
BCG
NA
Forward Integration
Backward Integration
Horizontal Integration
Market Penetration
Market Development
Product Development
Diversification
Joint Venture
IE Matrix
LA
EU
APC
GS
Counts
5
1
6
1
Retrenchment
Divestiture
Liquidation
Mergers & Acquisition
STRATEGY ANALYSIS
0
X
QSPM
Decision Stage
Balanced
Score Card
STRATEGY ANALYSIS
Balanced
Score Card
Contd
STRATEGY ANALYSIS
Decision
References
Further Discussion????