Victoria Swann Management Strategy and Policy Case # 3 Making Over Avon 1. Strategic management and the process are definitely an essential part on modifying Avon. At the time, Andrea Jung had the task of reinventing the $10.7 billion dollar company. She definitely had to create a new spin on maintaining a strong organizational culture. The previous view on the company was that it was for older women who were selling to neighbors. And, the situation was analyzed when research and development had been found to have only been one percent in the review of the company. There were numerous changes that had to take place to spruce up the company’s presence. Therefore, Jung had to improve the company’s image by implementing a celebrity factor via “going Hollywood” which encompassed the strategy formulation. This meant representation of people such as Rese Whitherspoon, Fergie, and Lauren Conrad. Another alteration was by introducing mark in the summer of 2003 which implemented a strategy to capture a new customer base and by contouring a product line for women age 16-24. Jung also adapted the visuals of the catalogs because they were made to entice consumers through glossier paper and advertisements with a younger feel to them. The new line of products were introduced for the novel brand. This made a new generation of Avon costomers. 2. The performance measures that Avon’s strategic decision makers may use for evaluation of the result remolding the company is to suit a more youthful consumer audience. The results of the restructuring initiatives were appealing to a new market segmentation of a younger audience, making brands more competitive, plus improving the attractiveness of the representatives’ earning potential. The feedback aided in making these changes. For instance, the company is more aware of the lack of having a lower R&D sales than their competitors. Jung had to streamline the company which meant layoffs, but it also meant outsourcing some services to low cost countries, doubling advertising spending and simplifying the manufacturing structure. Moreover, the amount of product innovation has been increased as well as the amount of representatives. It meant reaching the targeted 17 million young women with the new products catered to fashion and beauty. 3. Based on cnn.com, the top three companies are Sara Lee, Yahoo, and WellPoint. This was for the year of 2011. The numbers have slowly increased over time and according to the Fortune 500 informational piece in the website, 15 of the 500 CEOs are women. Having women as CEO has been a long journey starting with having women in the work place, period. One company, IBM never before had a woman CEO but even that is about to change. The abcnews.go.com reported that Virginia Rometty shall be the newest addition as acting CEO. There are other companies following this path. For instance the website lists 18 out of the Fortune 500 compaies which included DuPont, Xerox, Sunoco, Ebay, Hewlett-Packard, and Mylan, Inc have women CEOs. In conclusion, what was drawn from the data is that having a woman CEO is still a scarcity and they are still a great minority. 4. Avon’s vision and mission is consist of being “the company that stands for beauty, innovation, optimism, and above all women” according to www.avoncompany.com. The statement affects strategic decisions and actions because the company really researched how women perceive the remodel of the company. It entered glossier, thicker paper, a younger line of cosmetics and a Victoria Swann Management Strategy and Policy trendy yet stylish website. Celebrities such as Rese Whitherspoon, Fergie, and Lauren Conrad adorn themselves with Avon’s products. Furthermore since Andrea Jung has been employed with Avon, there has been a renovation of the company. The implementation of the changes to cater to women 16-24 years of age had been established as well as remaining faithful to previous consumers. She was also responsible for a multiyear restructuring which eliminated jobs, doubled advertising spending and focused R& D’s resources. One of the brands endorsed by celebrity Fergie is advertised as “Be the center of attention.” And it is the center of much discussion because it is launched with its own website separate from the Avon site. It comes with its own theme music and rules of conduct for the webpage.