International Business – Case Study Example
Avon Case Study- Strategy Avon Case Study- Strategy Avon’s problems in and included a reduction in the retail market presence in emerging markets owing to increase in the presence of Proctor and Gamble in these markets. The other problem that faced Avon in 2010 and 2011 was declining sales in developed countries owing to the slow global economic growth. The other problems were operational mistakes in implementing information systems increasing costs for the company. There was also a problem for the violation of the Foreign Corrupt Policy Act through payment of bribes by some of Avon’s executives in China to local government officials.
I believe there were other reasons for the problems faced by Avon in 2010 and 2011 were because of other reasons rather than changes in strategy (Leavy & Wilson, 1994). The main reasons for the problems include the increase in the brand quality and market presence of Proctor and Gamble and other competitors in the market. The other reason if the corruption in the ranks of Avon by its executives leading to the violation of the Foreign Corrupt Policy Act affecting the credibility of the company and reducing the ability of the company to make sales in this markets. The global financial crisis is the other reason for the decline in the sales of the developed countries. This affected many companies in the world and Avon was not an exception; hence, the problem could not have been caused by a change of strategy in the operation of the organization’s activities.
The other reason for the problems was lack of a good technical and human resource for the implementation of the information system that led to increased costs in the company. This led to the increase in the operation costs of the company and this was in no case due to a change in the strategy of the firm.
From the above analysis, it is evident that a change in Avon’s strategy was not a reason for the problems it faced rather it is the lack of a good human resource and technical expertise, global economic down turn, corruption, and high competition.
Leavy, B., & Wilson, D. C. (1994). Strategy and leadership. London: New York.