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Avon: External and Internal Environment Analysis Coursework

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Updated: Jun 5th, 2022

The successful overcoming of challenges and maintaining a high level of service are the properties of effective work carried out by any business organization. Avon Corporation demonstrates an example of a competent policy in relation to various aspects of its activities, including customer orientation and flexibility. The analysis of the external and internal features of the company may help to find the key factors that allow the organization to cope with high competition in the beauty market and allocate existing assets correctly.

Based on the assessment of strengths, weaknesses, opportunities, and threats (SWOT), it can be determined which areas of the company’s work are the most resilient and deserve attention and intervention from the corporation’s management. Porter’s five forces analysis is another mechanism that is valuable when reviewing the organization’s stability and ability to withstand pressure from competitors by selling individual products effectively. According to David, David, and David (2014), Avon’s customers tend to demonstrate “an emotional bond or attachment with the firm” (p. 98). It confirms the fact that the corporation is able to gain the trust of the target audience and realize those objectives that are key in the company’s business policy.

In order to assess the stability of Avon’s assets, a value chain analysis will be performed, as well as the evaluation of its financial ratio. On the basis of these data, it is possible to determine how high the profitability of the company is and what prospects the organization has regarding the existing budget. According to the information presented, there is an opportunity to conclude about the success of Avon’s internal policy and its impact on the efficiency in resource allocation.

The corporation’s balance score is subject to the assessment necessary for comparing the current results of the organization with the average market indicators. A report on this topic allows determining how thoughtful and reliable the company’s activities are in relation to financial accounting. Also, there are other crucial aspects of corporate practice that are to be mentioned. These are intellectual assets that include human and social capital, as well as the technological base. In accordance with the global development of Avon’s network, it can be argued that its resources make it possible to achieve significant results in distributing its products largely due to success in these areas.

The analysis of organizational design may allow determining the formation of the company based on the feasibility of its structural units’ activities. The segregation of duties and the involvement of competent professionals for the implementation of goals are achieved through the competent policy of hiring staff. As David et al. (2014) note, “Avon utilizes door-to-door sales representatives to gain competitive advantage,” which benefits the company’s reputation (p. 103). Despite a classic approach to attracting customers through network programs, the corporation copes with its goals. Another advantage of the organization is its extended and global base. Difficulties in managing such a large network are compensated by profits, which is certainly a plus.

As a recommendation for the development of the company, long-term goals may be proposed. In particular, attention should be paid to expanding the opportunities of the corporation’s branches since working in regions is a valuable resource for replenishing the assets of the organization. The duration of these goals may vary depending on the size of the sales centers and can range from six months to one year. The key issue that needs to be addressed is strengthening the position of retail outlets by increasing consumer demand. All of these aspects are the essential components of Avon’s activities and influence the success of organizational policies.

Reference

David, M. E., David, F. R., & David, F. R. (2014). Mission statement theory and practice: A content analysis and new direction. International Journal of Business, Marketing, & Decision Science, 7(1), 95-110.

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IvyPanda. 2022. "Avon: External and Internal Environment Analysis." June 5, 2022. https://ivypanda.com/essays/avon-external-and-internal-environment-analysis/.

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IvyPanda. (2022) 'Avon: External and Internal Environment Analysis'. 5 June.

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