Avon Inc. Company - Case Study Example

Avon Inc. Company Case Study Reason Necessitating Change in Avon Products Company Avon products are manufactured by the most famous company known as the Avon Inc., which focus on beauty products for women. The fact that this is a business organization, it has to take into consideration of the various business environment factors such as the need to change the strategic plan to accommodate more markets because of the need of other foreign investment. Consequently, any changes taking place in an organization are necessitated by various interests and factors that have a considerable effect either positively or negatively on the company’s economic growth. The Avon Company developed a strategy to empower women globally in the year 2006, which gave rise to the essential rebuilding strategy of the company since its foundation 120 years ago. This new process required financial for sustainability and also for the enlargement of the company to the global face (Goldsmith & Carter, 2009). The company recorded high profits from selling the beauty and skin care products whereby by the year of 2005 it had a cumulative annual growth rate of 10% in revenues and a 2% operation profit between the years 2000 to 2004. The successful Avon Company started facing problems that resulted from declined profits and flat revenues. The flattening revenues and the weakened profits are the main factors that led to the change of the company strategy Low profits and flat revenues were associated with the higher growth rate of the company compared to the infrastructure it owned and the skills to maintain the rapid economy development (Goldsmith & Carter, 2009). Consequently, the company had to announce for changes to be made on various organizational strategy. The models and theories of organizational change play an important role in the change assessment of the company and reveal the occurrence of alteration in the operations of an organization. There are a number of change model theories adopted by different organizations in regard to the situation. Avon company case study indicates that the model for change theory used was the change journey (HUMAP) embracing the 360 degrees assessment model theory. The change Journey model is applied on complex situations and involves four phases (Maxwell, 2011). The first phase is known of p, which involves various activities. A number of aspects are considered in the assessment 360 degrees assessment theory. First is the process of getting into preparation of the changes expected or unexpected in the organization’s operations. The second phase is to explore and understand details concerned with alternatives to be put in place. The third set a common mind among all the individuals involved in the organization’s operations. Lastly is the process of changing the leadership and talents for the employees and leaders of the company to achieve the desired profits. The 360 degrees assessment model focus on the performances of the staff and the changes that can made in the organization (Srividhya, 2007). The choices of talents program, employee promotions, and major talent events are affected by the personal skills and the self-drive towards an objective set by the organization. Partners and the managers of organizations have no capability to predict or answer questions related to the outcomes of any change enforced on the operations, leave alone the human resource because management is just a part of the success of the organization and the best way to improve the profits is by the practice of changing the different talent management skills, which the company enforced to place (Darnton, 2008). The case study presents various occasions that led to the recognition of the 360 degrees assessment model for change theory. The change of management performance and consequent plans for success in the Avon product company indicate the need to achieve the expected results in a consistent way characterized by transparency. The company applied this model to improve the skills of the managers, which reflected directly to the building of talent p0ractices in the organization with new skills being introduced among the employees to achieve a common goal. The first steep the CEO took was to identify the main changes to be applied towards improving the management process for an increase in the profits. During the turnaround, there was merging of regional firms with those that were run globally to integrate together the two perspective management skill towards a common vision of improving the company at large. The management layers were changed from a layer of 15 to 8 , which saw the decrease of management compensation reduce by 25%. The creation of new capabilities and the investment of the company towards improving higher talents expressed by human resources justify the approach of 360 degrees assessment model or the change journey model. The company realized the need to simplify the processes involved whereby the complex way of operations did not help much compared to the simple traditional process that incorporated better talents execution. Types of Evaluation Information Collected and Their Significant Avon case study incorporated evaluation information collected that was used to evaluate the status of the company and a significant implication on the success of future operations. It is known that evaluation is a process of assessing the worthiness of a project by help of the information, which is use to give a feedback on the success or failure of that particular movement. The types of evaluation information collected by Avon Company may be generalized to formative and summative evaluation information (Russ-Eft, 2009). The formative evaluation information is those that improved the talents of the employees and the management of the company in increasing the profits. In the Avon case study, the formative evaluation information helped the company to integrate the talents towards a common goal advocating for accountable and high efficient management. They helped the company maintain a long time employment relationship with other associates, which acted as a main aspect to determine the talent drive. The complex managerial practices were abolished giving way to a disciplined managerial team focused on individual development and committed work force. Summative evaluation in formation that the Avon Company embarked on was useful to determine the effects of the model of change. The talent turnaround had a great positive impact to the company in a number of ways (Russ-Eft, 2009). The weakness determined in the summative information saw he talent change from opaque to transparency; hence the model succeeded according to the projected goal of the company to improve the talents on individuals, which would lead to a consolidated management as well as increased profits for Avon Company. In addition, the change model achieved the capability to separate different levels of talents in Avon by the suitable skills and experiences. It helped the company appreciate the leaders with high potentials and their importance towards raising the profits and the necessary attention given to the low performing leaders. Success Speculation and Adjustments in the Next Five Years The change conducted by Avon saw the emergence of professional management. The success of any business considerably depends on the effectiveness of the management. Consequently, in the next five years, the Avon Company will be back the economic growth trend experienced in the year of 2200 t 2005 because of adequate manpower skills. However, the ideal results may not be reached upon as estimated because of other important factors the company require adjusting to comply with the rate at which it is developing. The adjustments should be such that the talent skills and infrastructure of the company are able to accommodate the rate of growth of the company. References Maxwell, J. C. (2011). The 360 Degree Leader: Developing Your Influence from Anywhere in the Organization. USA: Thomas Nelson Inc. Srividhya, V. S., (2007). Understanding the 360 degrees management model. Building tomorrow’s enterprise. Retrieved from < http://www.infosys.com/IT- services/application-services/white-papers/Documents/360-degree-risk-management.pdf> Goldsmith, M. Carter, L., (2009). Best Practices in Talent Management: How the World's Leading Corporations Manage, Develop, and Retain Top Talent. New York, NY: John Wiley & Sons. Russ-Eft, F., (2009). Evaluation in Organizations: A Systematic Approach to Enhancing Learning, Performance, and Change. New York, NY: Basic Books. Darnton, A. (2008). Reference Report: An overview of behavior change models and their uses. GSR Behaviour Change Knowledge Review. Retrieved from < http://www.civilservice.gov.uk/wp- content/uploads/2011/09/Behaviour_change_reference_report_tcm6-9697.pdf> Read More