Case Study: Avon Calls on Foreign Markets


1. Discuss the applicability of each to Avon’s global operations.
2. Why is Avon so much more dependent on its foreign operations than on its home (U.S.) operations?
3. Discuss socioeconomic and demographic changes that could affect Avon.
4. How might a global recession, such as the one that began in 2008, impact Avon’s operations?
5. What are the major competitive advantages that Avon has? How easily might other companies duplicate these advantages?
6. Avon does not sell within the United States in retail establishments (with the exceptions of kiosks handled by some of its reps). What are the pros and cons of distributing that way?
7. If you were advising Avon on the selection of new suppliers, what would be your major concerns as you evaluate firms that are potential suppliers? What criteria should the company use to make decisions on where to manufacture their products?
8. Identify the challenges Avon faces in both maintaining and expanding its global manufacturing and supply chain network given the dynamics of today’s competitive environment.

case 16

 

References:

  1. Daniels, John, Radebaugh, Lee, & Sullivan, D.P (2011). International business, environment & operations (13th ed). Upper Saddle River, NJ: Prentice Hall.
  2. Latin american market lifts profit at avon. (2011, 05 03). The New York Times. Retrieved from http://www.nytimes.com/2011/05/04/business/04avon.html?ref=avonproductsinc
  3. Sweeney, C. (2010). Direct approach works for avon. The New York Times. Retrieved from http://www.nytimes.com/2010/01/14/fashion/14skinside.html?ref=avonproductsinc
  4. J. (2008).Selling Beauty on a Global Scale. The New York Times. Retrieved from http://www.nytimes.com/2008/11/01/business/01interview.html?ref=avonproductsinc
  5. O, Hartline. Marketing Strategy. Retrieved from http://books.google.com/books?id=Lt12ggizMhIC&pg=PA543&lpg=PA543&dq=avon+cosmetics+marketing+strategy&source=bl&ots=3K4w5b0V5D&sig=6Ej95P9Fh-q71i9x8DYN1G3xTZM&hl=en&sa=X&ei=huZGT4uWFOS0iQKEifTaDQ&sqi=2&ved=0CIMBEOgBMAk#v=onepage&q&f=false
  6. D.(n.d.). Direct sales company, Avon cosmetics- worldwide recognition.Retrieved from http://www.createacashflowshow.com/network-marketing-news/direct-sales-company-avon-brand.htm
  7. M, Duane. Strategic Management: Competitiveness & Globalization, Concepts. Retrieved from http://books.google.com/books?id=aVnhnRh2NWEC&pg=PA337&lpg=PA337&dq=avon+global+strategy&source=bl&ots=us764A0LGQ&sig=-CeQs4H0xtM0a8ZvK6aFVlbv27g&hl=en&sa=X&ei=cOhGT6PcKOvRiALz-Z3bDQ&sqi=2&ved=0CHEQ6AEwCQ#v=onepage&q=avon%20global%20strategy&f=false
  8. Avon Products Inc.: The globalization of the company for women. Retrieved from .http://www.centrorisorse.org/avon-products-inc-the-globalization-of-a-company-designed-for-women.html
  9. L. Avon: Building the World's Premier Company for Women. Retrieved from http://books.google.com/books?id=bZUPceXxVP4C&pg=PT41&lpg=PT41&dq=challenges+for+avon&source=bl&ots=G3lQjlYA8q&sig=VEWmEt5CIpBVjkhp1rfc-yetEf4&hl=en&sa=X&ei=BOtGT-PWKYKkiQLyhbzbDQ&ved=0CDUQ6AEwAzgK#v=onepage&q=challenges%20for%20avon&f=false

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