Materiality

In: Business and Management

Submitted By cbory38
Words 692
Pages 3
Avon
Week 01 Written Assignment
Christine Bory
Rasmussen College

Author Note: This assignment is being submitted on January 12, 2014 for Steve Rudolph’s MAN4720 course at Rasmussen College by Christine Bory.

Avon

In this case, the new CEO Jung did a situation analysis to determine the strengths and weakness of the company and what could be done to improve sales. In the analysis it was determined they were weak in research and development of new products compared to their competitors. Also, that their target market was women 35 and older, when there was potential to earn more revenues if they increased the target market to a younger age group as well. A strategy formulation was formed on how they could improve and implemented. The company invested in a new state-of-the-art product research facility. This assisted in being more competitive in their business. They also redesign their sales brochures to be more visually appealing and increase distribution. They also developed a new line of cosmetics to appeal to women ages 16 to 24. Even though a plan was put in place and implemented to improve sales, once an analysis was done it, revenues were not as well as expected. So another plan was put in action which involved downsizing, doubling advertising spending and focusing on R&D resources. Strategic management is about adapting which in this case despite a good plan that was implemented it was still necessary to continue with strategic management by restructuring to be more competitive.
In restructuring, designing a new product line to target a new age group was created, measuring the success of this product line should be measured to determine the performance of this decision. An increase in advertising was done, measuring the amount of new customers and whether an increase in sales of existing customers should be measured to determine if the…...

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