Over a century old, Avon is a company that has built an empire based on direct beauty sales from private sales representatives. While Avon experienced great growth in the post-war era, as women slowly entered the business world, beginning in the recession at the end of the last century, and continuing for the last decade, Avon has struggled in many areas and recently announced a multi-year reorganization plan encompassing restructuring on numerous fronts. While their International sales divisions have earned more than in the US, the recent increased popularity of internet sales, combined with the decreased popularity of door-to-door sales, has left shareholders worried and concerned about Avon’s future. The direct market beauty industry is huge – totaling $136 billion in global market sales is 2011. Competition is fierce and Avon has to constantly offer new products and options.
Mar Kay, the world exclusive prodyct with direct-sales model，has monoplized Lancome's throne in America. As a direct selling organization, much of its success was based on motivating and constantly replenishing its over 170,000 member sales force. Mary Kay had planned to become “the finest and largest skin care teaching organization in the world.” Senior management recognized in early 1989 that the firm was suffering from some of the same problems which were affecting the whole direct-sales industry. The company was suddenly having problems attracting new recruits who would become “Beauty Consultants” and “Sales Directors” as well as consumers of the firm’s product line. Management was evaluating a corporate strategy which had been developed by the firm’s founder.
During the company’s history from 1987-2006 they experienced above industry growth compared with most of their competitors. However, 2006 was the beginning of troubling times for FoldRite Furniture Company. (Wheelwright and Bellisario, 2012) It was discovered by management that high turnover rates in the manufacturing department lead to slower production and delivery times. These mistakes opened the door for competitors to take business away from the company. In any industry reliability and consistency are key factors to attracting and maintaining repeat customers.
GAP in 2010: is the Turnaround Strategy Working? One of 4 largest retailers in US family clothing industry, GAP has always come across as exceptionally successful, strategically sound business, which cannot be exposed to any major downturns or risks solely because of extreme popularity of brand and its fresh designs. However, for the last decade the company has been facing a significant drop in sales across all of its brands accompanied by a decline in quality of clothing and popularity of styling. Although the company’s management tried to resolve the issue by making major changes in the areas of operations, brand development, R&D and international expansion, it is not clear whether the strategy applied fully eliminated all problems and created a shield against any future risks. GAP, as many of its close competitors, was quite successful in pursuing integrated strategy by providing customers with premium clothing at reasonable prices.
It must create efficiencies within the organization from the top down and emerge in its industry as a fierce competitor. Describe the Situation Although Best Snacks has been in business for a long time, its lack of changing with the times is hurting sales and demand for its products. With more organizations embracing a healthier alternative to snack food, Best Snacks has not moved along with the trend. By avoiding this, Best Snacks’ sales figured have declined over five years (University of Phoenix, 2010). Since Best Snacks has lagged behind on adapting these principles, it has led it miss opportunities in marketing, research and consumer
Moving Matters: Gretchen Fox Talks about Growing a Business By Kelley Crowley ’07 Gretchen Fox reflected on founding and growing a business. In 1988, Fox founded Fox Relocation Management Corp. to capitalize on an emerging and un-served market opportunity in project management around corporate moves, renovations, and reorganizations. After nearly 20 years of continued growth and success, Fox’s one-person firm has become a seventy-plus person practice. Over time, Fox Relocation Management has grown in scope, including new business areas such as facilities management, design, and master planning. The company has also grown in scale, with branch offices now operating in Boston, Providence, New York, and Washington, DC.
Manufacturing costs for USS were high due to their lack of investments in new technologies. Their revenues, market share, and work force continued to decrease dramatically through the 1980’s. A large reason for USS’s decline was the introduction of the minimill steel manufacture to the industry. These minimills used 100% scrap for their raw material. When they entered the industry, they produced products that required less quality like concrete reinforcing bars.
The company’s sales dropped by 3% last year accompanied by a greater drop in earnings with unused plant and warehouse capacity. Causes. 1. Top down sales planning causes animosity, no input from the people in the field as to what is realistic. 2.
Reason 2 Lack of Innovation * Chrysler’s sluggishness in launching innovative models when its Japanese competitors kept coming out with new designs resulted in the company’s declining sales. * Japanese companies continue to offer fuel – efficient vehicles to consumers while Chrysler continued to produce fuel – guzzling trucks. * After merge with Daimler, Chrysler introduced some new models but those models did not get much consumer attention. * Chrysler could not invest enough money in research and development even Cerberus has bought a majority stake in Chrysler due to the declining sales of Chrysler’s vehicles. * Chrysler’s products have also historically underperformed in terms of quality, which remains a significant challenge.
Was not innovative in its offerings 2. Margins were going down 3. The complementary business was not developed 4. Increase in competition from Lexmark and Epson Pre merger statistics: In 2001 overall not only HP, but the whole industry stumbled, the growth rate decreased drastically, as the result HP cut jobs. HP stock was pluming due to the “.com” bubble as well as due to the lack of direction into the future.