Avon Products Case Study

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Assignment #2- Avon Products Case Study Abstract This paper will outline the status of the company that led to its determination that a change was necessary. It will analyze behavior change theories and their impact on Avon’s talent management processes. The paper will illustrate the types of evaluation information that were collected to benefit the company. It will also describe how the success of the changes will have on Avon in the next five (5) years. Provide a brief description of the status of the company that led to its determination that a change was necessary. Avon Products is a 122 year old company founded by David H. McConnell. McConnell was a door-to-door book seller who gave free sample of perfume as an incentive to his customers. He discovered that customers were more interested in samples of his rose oil perfumes than in his books. In 1886, he founded the California Perfume Company and renamed it to Avon Products in 1939. The organization grew to become a leader in the direct selling of cosmetics, fragrances, and skin care products (Goldsmith, 2010). By 2005, Avon was an $8 billion company that had achieved a 10 percent cumulative annual growth rate in revenue and a 25 percent CAGR in operating profit from 2000 through 2004. Avon operated in more than forty countries and received more than 70 percent of its earnings from outside the United States. But in 2006, Avon found itself challenged by declining revenues and operating profits. While the situation had many contributing causes, one underlying issue was that Avon had grown faster than portions of its infrastructure and talent could support. Avon understood that they needed to look at their talent and processes in order to develop a plan for success. Identify the model for change theory typified in the case study of your choice. Discuss what led you to identify the model that you

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