Case Study

1. Why does the varsity team lose to the JV team?

Varsity team loses to the JV team because they don’t have effective teamwork. They have excellent sources which are strength, technique but can’t make use of source as they don’t have any reason to devote themselves to other team members. It means they don’t have attention and interest about team members and this situation make individual strengths be useless in race.

2. What should Coach P. have done differently earlier in the season to resolve this problem? At exactly what pint should he have intervened differently?

Coach P. should have focused on personality and temper of members rather than strength and techniques when he consist teams. He just focused on exterior traits and didn’t focus on relationship of members. If he had known about relationship of players, he would have consisted team members in a balanced way. Balance means that each member will be mutual supplementation and make positive team mood.

3. At the end of the case, what action should Coach P. take on Tuesday? Why do you recommend this action? How should he implement this action? Please be specific.

There is no other better way than it that members become friend to solve this problem. For that, Coach should try to make friendship at the meeting. How? Coach P. can make friendship by making players tell merits of other players. But just saying sentences don’t have affects. Each member should stare eyes each other about 3~5seconds and tell about good traits of other players. This action will slightly make some affection and this small change will make huge changes.

4. How would you compare the Army Crew team to your AAR project teams? What are the key similarities and differences? What lessons can we learn from the Army Crew team?

Both army crew team and AAR project team have similar number of members and should have good teamwork to achieve good results. While army crew team have fixed role to respective members, AAR project team don’t have any designated role. Because there are no designated role and leader in AAR project team, it would be possible for one person to undertake all tasks or one person not to participate to the project. To prevent that situation and as a lessons from the army crew team should we give attention to isolated member not criticizing but comforting and caring him. We should go together even though some retard would be expected because there is no one who is not effective person.

5. References
Indicate at least two reading materials(HBR or ED that help you to respond this case)

Banque Accord is a subsidiary of the financial giant the Auchan Group

1. Founded in 1983, Banque Accord was established in two stages: In 1983, with the issuance of “Accord” retail cards in Auchan’s hypermarkets; and, in 1987, with Auchan’s acquisition of Banque Delort, a subsidiary, an affiliate of the banking group known as Credit Commercial de France.
2. Auchan subsequently called its newly acquired bank as “Banque Accord ”.
3. The newly acquired bank’s mission was to customize the rules that have proven successful in the area of retail distribution and bring it to the financial services field, by allowing consumers to avail of simple yet innovative discounted products and services.
4. Essentially, Banque Accord operates as a bank aligned with the credit and retail industries in general.
5. Put simply, Banque Accord brings electronic banking functions to retailers, and payment and financing options like cards and consumer credit, closer to its consumers. As a rule, the purchase of financial resources is backed by sound ratings from globally respected institutions like Moodys and Standard & Poor. For the year 2006, Banque Accord received higher ratings compared to the previous year.
6. Moody’s gave the bank an A2 grade, while S&P gave it an A or “Stable” rating.
7. To note, the word “Accord” suggests being able to agree on “financial solutions” for the company’s clients8. The dynamism of Banque Accord, which eventually became well-respected in international financial circles, is due to the fact that it is wholly-owned by a bank and a retail group.

In Banque Accord’s financial disclosures for 2006, the company reflected a EUR353,167,000 increase in assets in just 12 months. Banque Accord also reported a net income of EUR34,413,000 in 2005, as compared to EUR24,206,000 in 2004. Despite the potential for further international growth, Banque Accord has to contend with possible areas of difficulties, which include:

• (a) the use of mobile phones as a potential replacement for bank cards in transactions;
• (b) innovations in consumer credit;
• (c) the development of e-business in the retailing industry.

Regardless of these trends that Banque Accord has to contend with, the bank continues to be innovative and continues to explore newer concepts to maintain its prestige and originality in the banking and retail industries.

Banque Accord: A Case Study 2

I. The Auchan Group Founded in 1961 by Gerard Mulliez, the Auchan Group started out in the North area of France with one hypermarket, which, simply defined, is a commercial complex that combines a department store with a supermarket. Currently, in 2006, the Auchan Group runs 360 hypermarkets spread across 11 countries. In France, Auchan operates 654 supermarkets. Since the inception of Auchan, the company’s vision has remained the same. That is, to improve the purchasing power of its customers. Banque Accord is an Auchan subsidiary that has developed an identity of its own within the Auchan Group. Nevertheless, Banque Accord’s mission is identical to Auchan’s, and in essence, the bank has a dual vision:

• customer-oriented: providing its clients with a means to purchase;
• corporate-oriented: assisting Auchan in maximizing turnover and revenue, therefore aiding the Group to reduce costs. Accordingly, Banque Acord’s mission, “The bank for consumers” is aimed towards Auchan’s clients at the hypermarkets.

Banque Accord achieves its mission by making available to Auchan’s clients, certain services like discounted financial options and payments which are directly accessible to these clients. Being a part of the Auchan Group is a contributing factor to Banque Accord’s human resources practices: By training a group of responsible professionals who consider their jobs fulfilling, the company is able to achieve growth and guarantee their clients quality service.

II. Banque Accord’s Internal Strengths

In studying the case of Banque Accord, one is accosted with the company’s inherent strengths. Whatever weaknesses there might be for the company, these are easily addressed based on the operating standards adopted by the Bank.

Nevertheless, the inherent strengths of the Banque Accord include:

• A. European Market Share

The card can be very much compared to a traditional bank’s checking or current account, which is most convenient for customers to use. Retailers or outlets that have tie-ups with bank cards are able to sell “progressively”, in coordination with various financial services like cross-selling or up-selling. The European market where Banque Accord mainly operates was reportedly worth billion in outstanding credit in 2005 (Source L’observateur Cetelem) and is manifesting fast growths in many countries. Within Europe, where Banque Accord operates, there are distinct differences between countries. In Great Britain for example, the average outstanding credit per household is double that of France’s. In simple words, buyers in Great Britain have greater use for bank cards than customers in France do. The differences between countries may be attributed to diverse cultural orientations, regulatory requirements, and marketing procedures. Another example is: frequently, young people are refused credit on the grounds that they do not have a stable means of paying it. On the other hand, it is quite common for a consumer to accumulate excessive credit. A solution to this would be the use of regulatory systems and which monitor and prevent bad debts.

• B. Positioning and Diverse Services

The business of Banque Accord is:

• (a) issuing different types of payment cards like for example, retail cards, gift cards, and bank cards;
• (b) proffering consumer credit and other related services;
• (c) managing its retail partner’s electronic processing of monetary transactions.

Electronic Banking is a technical service directly given by Banque Accord to its retailers, which is a source of pride to the bank31. Its electronic banking services are geared towards functioning as a bank –

Banque Accord: A Case Study 4 2005, to form a division called CardOps. Being owned by a retailing group, Banque Accord’s aim is ATMs, payment terminals, etc. Banque Accord’s electronic banking services were grouped together in proximity to its customers, and minimizing the costs of electronic banking. The core business of Banque Accord is the issuing of a range of cards, which have different functions. The bank’s cards may be a type of payment, a retailer’s marketing tool, a “support” product of the bank that is incorporated in its associated services. It is widely said that an Accord card may be likened to a Swiss Knife with flexibility in functions — credit card, payment card, and loyalty card.

Banque Accord: A Case Study 5

Function: This type of card may be utilized to personalize service, and enhances customer relationships.

Banque Accord: Auchan Gift Card Hence a card is useful to the retailer because it can be used as a marketing instrument and promotes consumer loyalty to the consumer because it is a convenient means of financing and payment. There is a distinct connection between owning a card, how the type of card benefits the customer and the retailer, and the amount of business the customer does with the retailer42. It is established that a customer who has access to credit through cards increases his or her purchasing power. A client who has no card hardly visits a retailer in a month, owning a loyalty card enables a customer to make three visits. Having a retail card allows the client to make four visits per month to the favorite retailer and having a bank card gives the client the opportunity to make at least five visits to the retailer. Banque Accord boasts of an orientation that is discount-oriented and customer-oriented.

Banque Accord has two selling and pricing concepts: — annual subscription and — cashback, which is defined as the money paid to the customer related to this or her card use. For example in France, Banque Accord gives a 40% discount incentive to annual subscribers for a regular Visa Card and a 60% discount on a Visa Premier Card. Based on the spending habits of the customers, an annual subscription increases the potential for the clients’ purchasing statistics.

Other Financial Products

Apart from cards, Banque Accord also offers its clients other services, like:

1. in-store credit wherein the individual retailers define their own credit policies along with different formulas for achieving revenue;
2. personal loans, which are granted to customers as a come-on, at interest rates based on current market prices;
3. revolving credit, which is built up by a credit reserve;
4. Auchan savings account;
5. life insurance, which is a tie-up with Suravenir and offers life plans at simple and reduced costs;
6. non-life insurance.

As evidenced by the wide range of “other” services that Banque Accord offers, its value chain is distinguished by a huge number of product alliances. Thus, Banque Accord has been known for its flexibility. As a result, the bank has largely-increased the potential spending capacity of its client-base. Sometimes, the bank’s products are managed by other partners — at times their competitors — depending on which country the operation.

China’s rapidly developing economy is dependent on a banking industry which is controlled by the state. The four public banks of China and the People’s Bank of China have a strong hold over the country’s financial system. The advent of China in WTO in 2001 and globalization has led to a felt need for transformation in the Chinese economy to integrate it with the global economy. The financial sector will need to support this change. An assessment of the state of the Chinese banking industry at present and its future growth is therefore essential.

Ideally this can be achieved by benchmarking a Chinese bank and a European Bank, for which purpose a case study of Bank of China and HSBC, London has been carried out. The aim of the research is therefore to undertake an analysis of the Chinese banking systems, processes and products through a case study of the above mentioned banks while the objectives of the research indicate assessment of the overall state of the Chinese banking industry, evaluate implementation of various processes and systems and highlight the areas for growth. A deductive – inductive approach with emphasis on case study has been adopted for the research.

Apart from extensive secondary research through literature survey, a detailed questionnaire has been administered to 40 clients across a wide cross section of personal and corporate customers of Bank of China and HSBC, London which has formed the key primary resource for the research. A review of the research sources and questionnaires has revealed that Bank of China has been able to quickly adapt itself to the changing requirements of a globalised financial environment and is providing both personal as well as business banking services to meet its customer’s requirements.

HSBC which considers itself as the World’s local bank is providing a complete package of services to the corporate as well as personal client and has been successful in implementing the same throughout the World. Its initial forays into China have also underlined the success story. The quality of service in both the banks was seen to be similar, however HSBC provided better follow up and also more services on the internet than Bank of China. The growth trajectory of both the banks indicates that, while HSBC is attempting to grow throughout the World; Bank of China is growing primarily within the Chinese banking system.

There are a number of areas for improvement identified in the research which could well be undertaken by Bank of China to include greater efficiency and better customer service, improvement in technology and customer follow up and exploitation of niche areas such as credit cards. The entry of foreign banks will see greater competition in the Chinese banking sector. The need for Chinese banks to adopt global practices is also underlined and it is anticipated that the entry of more global banks as HSBC in China will provide the impetus to this growth.

ANALYSIS CHINESE BANKING INDUSTRY SYSTEMS, PROCESSES AND PRODUCTS: A CASE STUDY BANK OF CHINA AND HSBC, LONDON Chapter 1 – Introduction China is a rapidly growing economy which is considered as a model for emerging countries all over the World. The dynamism of an economy lies in an efficient and effective financial system led by the banking sector. The impact of the banking sector on economic growth in China and its contribution to public life has been a matter of debate over the years.

China has a banking system which is controlled by the State and thus has a very large influence on the economy. Exclusively controlled by the central government, the four state banks and People’s Bank of China have a very strong hold over the financial system both internally and externally. (China’s Economic System, 2004). However the rapid growth of China towards a socialist market economy has been affecting the banking sector in various ways and Chinese banks have undertaken measures to enhance their efficiency and contribute effectively to the economy.

China’s entry into the WTO in 2001 has also necessitated adoption of liberalized norms in line with the global banking and financial industry. To what extent China has been able to adapt these new practices and how these are affecting or likely to affect the growth of the Chinese economy is an issue of great relevance. As China’s economy gets increasingly integrated with the global economy, its financial markets will have to support this union. It is therefore essential to assess the state of the Chinese banking industry at present and its trajectory of growth in the future.

A case study approach to this issue is considered relevant for which Bank of China and HSBC, London are selected for review of the systems, processes and products to provide an insight of the financial needs and their fulfillment today and tomorrow. Bank of China is one of the principal banks in the country; it is one of the four banks which are owned by the State in China. (About Bank of China,. 2006). It has been a key central bank of China which has carried out international exchange as well as provided funds and been a point for foreign trade in the country over a period.

It conducts a wide variety of services including commercial banking, insurance as well as investment banking. It is one of the largest banks in Asia and has been placed at the 18th position by the Banker Magazine in 2005. (About Bank of China,. 2006). It also has a large overseas presence in 27 countries. The systems, processes and practices followed by the Bank of China would be a good indicator of the state of the Chinese banking industry in both its internal and external dimensions. HSBC is an epitome of a modern bank.

Based in London, the Bank had its origins in provision of finance for trading with China in the 19th Century. After China adopted a nationalist communist economy and banking system, HSBC’s presence in the country was limited. However the bank has now retuned with a vigor and strives to make inroads in the highly competitive financial sector where banks with a state monopoly are said to enjoy unprecedented advantage. The Bank is also taking benefit of its old legacy and is already earning profits to the tune of $ 161 million for the first half of 2005.

(Schuman, 2006). HSBC in some ways can be seen to be a competitor to the Bank of China, though its reach within China is limited to only 20 branches. (Schuman, 2006). The investments made by HSBC in Chinese financial sector are reported to be $ 4 billion and include almost one fifth stake in China’s fifth largest bank, Bank of Communications and its second largest insurance company, Ping An Insurance with which the Bank of China too has many contracts.

A comparative analysis of BOC and HSBC would thus provide us an effective understanding of the state of the banking industry in China in all its operational facets. The dynamic nature of the research will entail application of a deductive-inductive approach which in practice is adopted by a number of similar research projects keeping in view the importance of both qualitative and quantitative findings. Aim and Objectives. The aim of the research is to undertake an analysis of the Chinese banking industry systems, processes and products through a case study of Bank of China and HSBC, London.

Objectives. The research objectives are as follows :- 1. Assess the overall state of the Chinese banking systems, processes and products. 2. Evaluate implementation of systems, practices and processes of the modern banking industry. 3. Evaluate areas for further growth and development by Chinese banks. Chapter 2 – Research Methodology This chapter aims to illustrate the methodology of the research. It describes; common research philosophies, research approaches and the research strategy.

Veal (2000) has described research as “systematic and careful inquiry and search for the truth” or an investigation into a subject to discover facts. What is Research? Research is a well defined area of study of a particular problem or issue in its totality or in specific to a particular area of concern. (Veal, 2000). Research should entail the following characteristics, which will be kept in mind by the author while evaluating the subject (Morgan, 2000):- (a) Systematic collection of data.

(b) Analytical interpretation of data. (c) Developing a theory and conclusion. The Research Philosophy Modern research has three models; these are positivism, realism and interpretivism. (Cantrell, D. C. (n. d. )). Positivism Positivism entails a scientific stance for research and interpretation of data. Thus only those phenomenon which are observable and measurable are regarded as knowledge. Positivists maintain an independent and objective stance. (Cantrell, D. C. (n. d. )). Phenomenology (Interpretivism)

This is opposite of the positivistic approach and is known as interpretivism or phenomenology. (Cantrell, D. C. (n. d. )). Though positivistic and interpretivism paradigm are two extremes, most researchers use elements of both practices, which is implied in realism. This approach is considered the most appropriate for the project as the writer will be carrying out a comparative analysis of the Chinese and the British Banking system with a case study of the Bank of China vis a vis HSBC, London.

Since banking systems are not just financial and economic systems but involve social issues in the context of a broader socio-political environment, a realistic approach to research is considered the most suitable. Research Approach There are two strands, which can be adopted, deductive and inductive. The deductive approach is used when a hypothesis is developed and the research design has to test that hypothesis. The deductive approach is amplified by means of a diagram at Figure 1 (Trochim, 2000). –

Work Environment
Amber Inn & Suites, Inc., formed in 1979, operates 200 Amber Inn properties and 50 Amber Inn & Suites properties located in 10 states throughout the Rocky Mountain and western states. On Average, each location has approximately 120 individual guest and suite-style rooms. Under a new president and CEO, the goal is for Amber Inn & Suites to reach profitability within two years after five consecutive years of unprofitability. This company is positioned as a limited-service hotel which does not have the amenities such as a restaurant, lounge, or meeting rooms. This type of hotel is classified under a midscale hotel with food and beverage, such as Holiday Inn and Ramada Inn. Competition

Direct competition to Amber includes other mid-scale hotels in the western and Rocky Mountain states, specifically hotels that are in the same class as Amber which do not possess the extravagant amenities of an on-site restaurant or meeting rooms. For Amber to make its hotel stand out amongst the others is a very difficult task with so many other companies present in this industry. The next level of competition would fall to recreation vehicle parks and camping sites. For the price-conscious individual, this may pose as an easier solution, but does not give someone the comfort of a traditional bed and amenities like television. Also, with a presence in the rocky mountain and western area, weather plays a contributing factor into this scenario.

The indirect competition to Amber Inn & Suites is potential company cutbacks and layoffs. This not only affects their business traveler base, but also could affect if individuals have the luxury to travel and stay in a hotel opposed to a relative or friends residence.

Strengths

Location is a key factor to the success of Amber, because the company avoids the downtown areas and has chosen to only be located on sites close to major highways close to suburban areas, airports, and large regional shopping centers. This shows that all of its locations are at a convenient location with easy access to and from their sites. Even though profitability has not been able to be reached, the company has still been able to produce three consecutive years of growing revenues. The average occupancy rate is higher than the industry average for the respective class the hotel is in, and Amber has a significant standing amongst business travelers. Weaknesses

The glaring fact of being unprofitable for five consecutive years is definitely the major weakness of this organization. Lodging revenues are rising, but the expenses correlated with these revenues are increasing at a much faster rate. Other weaknesses are the lack of amenities that Amber Inn & Suites offers travelers, which creates a lack thereof to differentiate from other hotels with the same presence. Another item that could be a weakness is a lack of differentiation between the Amber Inn and Amber

Inn & Suites. Opportunities

By having noticeable differences between the two, this could allow for different price structures and allow Amber Inn to enter a new target market giving the organization the ability to expand its chain. Also, with a dominant business traveler occupancy rate, Amber Inn & Suites could start forming frequent visitor relationships with organizations, so those companies refer their business travelers to stay in these sites.

Threats

With having so many consecutive years of unprofitability, the thought of bankruptcy or closing of the organization is always a present factor. A company can only go so long of losing money year after year before it is required to throw in the towel. Government regulations on requirements of hotels could also be an imposing factor, because certain regulations could raise general expenses that are required to keep the hotel up to code and to the industry standards.

Problem

With the new CEO wanting to produce profitability within two years, the current problem is how to re-position the organization’s strategy and define which customer base to focus on. By starting with which type of customer to target, the organization can be more focused on its tactics.

Alternatives

1. Do nothing. There is not much of a pro to this solution, because by doing no sort of action will either result in the business failing and closing down, or that could cost the marketing senior vice president her position.

2. Reward Program for businesses. By instituting a reward program with businesses, it will allow business travelers to stay at the hotel for a discounted price for Sunday through Thursday lodging through his or her place of employment. Instead of attempting to find the best rate. The company knows that when an employee goes to this city, he or she will stay at the Amber Inn and the company books it for the employee. This will increase the business traveler base, which is already predominant. However, this will decrease the overall revenues for the organization.

3. Increase weekend prices. By increasing lodging prices on the weekends, it will not harm the business traveler base, and increase profits for the personal and vacation/pleasure areas. This could adversely affect the number of guests staying at the hotel on the weekends and drive the weekend revenue stream down.

4. Increase average daily room rate to be more toward industry average. Since the survey says that only 36.6% stayed at the hotel based on price and the fact that majority of business travelers had the rooms paid for by the business, this will increase overall profits. The negative to this option would be the potential loss of that customer base.

5. Increase business traveler advertising. By capitalizing on the best strength of customer base, the hotel has the ability to make its focus be solely on the business traveler, which is where the most occupancy is coming from. If the company decides to shift its focus toward the business traveler it will have to cut advertising cost elsewhere, but could in-turn create a better strategy for the organization. This will decrease costs because of a more finite focus but also keep the greatest customer base that the hotel already possesses.

6. Decrease employee base. By doing this the company will save in SG&A expenses, which will allow the budget to be decreased creating a better profit. However, decreasing the employee base per site, could result in a negative effect on the hotel because it could reduce response time to cleaning rooms and getting each one available for the next guests. Decision Package

If the company can effectively increase the advertising for the business traveler and increase the hotel’s overall average daily room rate, it will be able to capitalize on the area of customers that visit the hotel the most and also increase the revenue per room. By shifting the focus to the business traveler, the company can save advertising costs elsewhere because this will limit the areas that are needed to be advertised to. If the overall advertising budget is decreased and the business traveler rate can increase, then the company is able to capitalize on the most profitable target market available.

Plan of Action

Develop a new budget for advertising with a special emphasis on the business traveler. Attempting which channels are spent on the everyday consumer will help decrease those costs and effectively increase sales. The price increase can happen in gradual stages on a quarterly basis. Given the time from of two years, the organization should structure itself at 75% of the industry average on room rate, which would give Amber Inn a $20 increase per room average. This would allow for a $2.50 increase per quarter.

Overall room occupancy rate may decrease without the personal and leisure guest presence, but the increase in profit and business segment will help adjust those figures. If the occupancy rate decreases slightly, but the revenue is increasing, this will decrease the variable costs associated with maintaining those extra rooms which will allow for less expenses.

Question 1

In what ways does Bezos’s decision to develop and deliver the Kindle and Kindle Fire show systematic and intuitive thinking?

I think that Bezo’s decision to develop and to deliver the Kindle show systematic and intuitive thinking through competitive strategy to assure the success of the company. Competitive strategy refers to a strategy that is designed to create value for customers by providing lower prices or unique features not offered by rival organizations.

This is proven based on Amazon’s quarterly filing ending March 31,2010 when their net sales had increased to 45% in the electronics category. Jeff Bezo, CEO of Amazon.com says “ as we continue to offer increased selection, lower prices and additional product lines within our electronics and other general merchandise category, we expect to see the relative mix of sales from this category increase!”

Another reason would be seeing an opportunity only Amazon.com can give long form reading to be digitalized. They have analyzed their strengths and capacities that helped them develop a new innovation in the market. From there, they were able to produce a refined product called Kindle that has the ability to review and remember more what a person reads follow people of interest and allows one to see their Public notes and manage his books, highlights, and notes.

Question 2

How do you describe the competitive risk in Amazon’s environment as Wal-Mart, Barnes and Noble, and other retailers strengthen their online offerings?

Having the most of the services that Amazon provides myself it is my go to place for every time I am trying to make a purchase. In my opinion, since Amazon has established a great amount of customers and being the one of the most organized and friendly online place where you can purchase practically anything, it will be hard for other competitors to achieve such results. Also the greatest benefit to some people is not paying taxes on the products that they purchase which is currently being disused by the Government to have amazon costumers to pay a tax.

Question 3

Amazon is continuously looking for new markets to exploit. As CEO Bezos addresses the strategic opportunity of delivering streaming video, he calls on you for advice. Amazon’s presence and technology are already established in this market. But what decision error and traps might cause him to make the wrong decisions regarding Amazon’s future moves, and why? What can he do to best avoid these mistakes?

Question 4

What are the latest initiatives coming out of Amazon? How do they stack up in relation to actual or potential competition? How has the decision to produce the Fire turned out? Is Bezos making the right decisions as he guides the firm through today’s many business challenges?

Latest initiatives that are coming out, is Prime membership.

The benefits include:

• FREE Two-Day Shipping on eligible items.

Note: If the item you’re ordering is out of stock or unavailable to ship, we’ll get it to you two days after it’s back in stock. Remember to check the cut-off time shown on the detail page. Items are delivered every day but Sunday, and orders over $1300 may require a signature.

• FREE Standard Shipping on eligible items.

FREE No-Rush Delivery (typical delivery one week after placing an order). Note: You may receive promotional credit for selecting No-Rush Shipping. Credit will be automatically applied to your Amazon.com account once the first package from a No-Rush Shipping-eligible order ships. You’ll receive an e-mail as soon as the credit is available. You may select No-Rush Shipping as many times as it’s offered to you, but you won’t be eligible for the credit if you cancel your No-Rush Shipping order or return items from it.

• Shipping Upgrades to expedite delivery.

Free Prime Instant Video access for paid or free trial members in the U.S.
and Puerto Rico. Note: Instant Video isn’t available to customers receiving free Amazon Prime shipping benefits through Amazon Student, Amazon Mom, or as guests of another membership.

Kindle Owners’ Lending Library access to members in the U.S. For more information, go to Kindle Owners’ Lending Library. Note: Customers in a paid membership, free trial or receiving a free month of Prime benefits with a Kindle Fire activation are eligible. The Kindle device must be associated with the Prime account that’s eligible for the benefit.

Early access for members in the U.S. to download a new book for free every month from the Kindle First picks. For more information, go to Kindle First.

An estimated 200 million fire tablets have been shipped worldwide since 2009 and another 1 billion are predicted to ship over the next five years. Market intelligence firm ABI Research estimates that 22% of the U.S. tablet users spend $50 or more per month and 9% spend $100 or more – much higher than the spending levels observed for smartphone users.

The growing popularity of Amazon’s Kindle Fire range could mean that a major share of this spending will be re-directed to Amazon’s online storefronts. Since Kindle devices are optimized to run on Amazon’s services, we expect them to drive greater adoption of Amazon’s services. We believe that the content business comprising eBooks and movie/music streaming will be the biggest gainer from the trend.

In my opinion he is defiantly making the right moves especially in todays business world.

The word old brings to most people in our society an image of homeless, helpless, forlorn derelicts inhabiting park benches, slum hotels, nursing homes and other institutional ghettos. The elderly and aging population is poised to be the center of attention in the coming years since the Baby Boom generation will be retiring. Consequently, these retired individuals shall be experiencing the different problems that come with the concept of aging and that is their quality of life is disturbed as they are hampered by chronic illnesses or chronic physical pain, depression or simply just the inability to perform several activities of daily living.

(Understanding Aging as a Social Process 2005). These particular tasks must be performed well by an individual or else he or she may be classified as disabled. And this disability is the one issue that every aging person in America faces. According to Erik Erikson, each of us passes thru eight psycho-social stages in our life where we are all faced with a crisis. The last two stages in a man’s life, middle adulthood and the aging years will be carefully discussed in this reaction paper, and the life of real-life models will be revealed to verify if Erikson’s theories are right.

The elderly face the crisis of “integrity versus despair. ” This paper is based on an actual interview with an 88-year old male who is showing early signs of Alzheimer’s disease. This paper looks into the plight of the elderly population and presents the different ways they are presently treated and are seen as a kind of abuse of this sector of the population. It also hopes to start a momentum and take a conscious effort for those who are able to act for these individuals and represent them and their varying plights for a better quality of life.

The Case of Paul, male, 88 years old with Alzheimer’s Disease Paul, who now is 88 years old, has resentments about his accomplishments. He did not finish any degree and just marries with 6 sons and daughters who are also unfulfilled like him. He has grand daughters and grand sons who live in the same neighborhood with him. He still has unfulfilled dreams and desires because of stagnation during his younger days. He would always say: “Life has been hard, that’s why.” By nature, the old man is a jolly and funny person but behind his words, you can feel a trace of sadness and frustration on how life had been hard on him. Instead of dreaming more, he would prefer to look up to younger folks who have been successful so far with their life. He would prefer telling stories about other people, cracking jokes about his friends, unable to talk much about his own accomplishments because inside him, he feels he has not achieved much in life. Alzheimer’s disease is manifesting in Paul now. He fumbles with his hands and is quite mentally incapable of being consistently coherent.

Constantly needing assurance, I help him to understand how his clothes look good on him and he beams radiantly at the compliment, eyes and face crinkling. He is forgetful now, peering into my face and asking who I am even if I am his niece. He appreciates how I talk to him so kindly. I focus on what he needs in the process, how the he seems to be coping with his life, what sort of help he is seeking, what sort of help he may need, and my ability to participate in the helping process with him, given his needs. During the time I spend with him, I managed quite well in relating with him verbally most of the time.

He had lucid moments at times but was quite conversant during other times that kept me on my feet in terms of history and other interesting topics that would often crop up during our conversation. Talking with him involved an interactive process based on certain fundamental principles in counseling and communication. The interactive process with the elderly can be based on a generic model of helping such that of Egan (1975). His model for counseling and communications includes three stages wherein the person is expected to begin with self-exploration, move to deeper levels of self-understanding and finally to develop a plan of action.

While engaging him in an active verbal conversation, he describes his past life. He forgets the name of his eldest child but that is all right. I help him differentiate the conditions of the past from conditions of the present so that a clearer understanding of attitudes and behaviors emerge. I was able to build the trust needed in this kind of session, and at the same time help the client focus on concrete concerns about which he personally must make. Then, I use that trust that has been built to get involved more potently in helping him understand himself.

I now respond not just to what he says but also to what he implies.

Mental and Emotional Condition

The mental and emotional condition of old people is a major issue in designing for the welfare of the elderly. Often, aging is associated with increased depression, loneliness and lower self-esteem as old people begin to be unable to do the usual activities they do while they were still young and strong. The need to move out of one’s home also adds to the emotional issues that the senior may be facing.

It becomes apparent that facilities and environments created specifically for the elderly should promote mental and emotional well-being, aside from addressing the general health and medical needs of these people.

Developmental Theories

According to Erik Erikson, each of us passes thru eight psycho-social stages in our life where we are all faced with a crisis. The last two stages in a man’s life, middle adulthood and the aging years will be carefully discussed in this reaction paper, and the life of real-life models will be revealed to verify if Erikson’s theories are right.

The aging years of any person are a time when he or she either feels fulfilled and satisfied, or becomes in despair: this is the age of 65 and above. Usually, those who have fulfilled their social roles satisfactorily in middle-adulthood are those who become happy and active until their last days on earth. Those who have failed with their dreams and social roles are the ones who have poor health and illnesses in their old age. During this time, an individual asks himself if he has lived well.

If he looks back with regret, it is an indication that his failures overpower his achievements. Meanwhile, Peck (1968) modified Erikson’s last stage, ego integrity, which he elaborated into two broad periods: middle age and old age. Peck subdivided each of these periods again into stages and said that these stages may occur in a different time sequence for different individuals and thus do not imply sequentiality. The theme of transcendence iterated by Peck appears in the thinking of several other life p developmental theorists.

For example, Erikson (1950, 268) says of the individual in Stage 8: “He knows that an individual life is an accidental coincidence of but one life-cycle with but one segment of history. Peck’s ego transcendence versus ego preoccupation puts it as this, ‘The constructive way of living the late years might be defined in this way: To live so generously and unselfishly that the prospect of personal death—the night of the ego, it might be called—looks and feels less important than the secure knowledge that one has built for a broader, longer future than any one ego ever could encompass.”

Nuances of the Alzheimer’s Disease

The Alzheimer’s Disease Fact Sheet of the National Institute on Aging explains in detail the Alzheimer’s Disease. It is under the Alzheimer’s Disease Education and Referral Center and defines first the word as a brain disorder that seriously makes a person unable to carry on with his activities. It then clarifies that the most common form of dementia among the elderly is Alzheimer’s disease (AD). This is a disease that involves particular portions of the brain that controls thought, memory and language.

To date, this disease is still incurable and most experts are at a loss as to what causes it. Basically, this site contain valuable information about the disease including contact persons and their telephone numbers and locations so that one can easily consult with those who are equip to handle and give advice. Clarifying further, this disease begins after age 60, increasing with age. Discovered by Dr. Alois Alzheimer, a German doctor who observed that there were changes in the tissues of an old woman who died of an unusual mental illness.

Upon closer inspection, it revealed clumps called amyloid plaques and bundles of fibers called a neurofibrillary tangle that is a sure sign of AD. (Alzheimer’s disease Fact Sheet. National Institute on Aging). The NIH Senior Health website provides links to the disease, its causes and risk factors, symptoms and diagnosis, treatments and a site on Frequently Asked Questions. The elderly and aging population in the United States is increasing ever more and such ill-effects of old age occur more often such as injuries, disabilities, emotional pain and worst-case scenario, suicide.

Without any participatory work done by the ones who are able-bodied, the elderly of America might not be as safe and as well-taken care of as they should be. Bottom line is that the quality of life of elderly people should not be compromised just because they have already finished their foremost contribution to society through hard labor. With one click, one is led to make more discoveries in the process. (NIH Senior Health). There are newer ways of spotting early symptoms of the disease from McCoy’s (2006) research.

When water molecules move throughout the brain when it is damaged, then this processes of cellular damage can cause an increase in the “apparent diffusion coefficient” which measures the amount of water in the brain. (McCoy, 2006). Friedland (2004) stated that estimates show that there will be more aging individuals requiring long-term care than people, whether family members or hired caregivers, who will take care of the senior citizens.

He added that “family caregivers need all the help they can get to provide care, including purchasing modifications to the home, purchasing labor-enhancing and labor-saving technologies, and figuring out how best to integrate caregivers into their homes” (Friedland, 2004, 2). The issue of the effectiveness of the healthcare and housing systems for those with Alzheimer’s disease is also important to consider. According to Lawler (2001), the current challenge is in the integration of housing with the health care strategies for the elderly.

She added that “most of the current inefficiencies in the delivery of aging services occur during the provision of both overcare, providing more housing or health care than required, and undercare, when inadequate service provision compounds problems and increases expense” (p. 1). To address the health needs of the aging population, the American Dietetic Association [ADA] (2000) promoted the provision of “a broad array of culturally appropriate food and nutrition services, physical activities, and health and supportive care customized to accommodate the variations within this expanding population of older adults” (p. 580). The association also asserted that “medical and supportive services, including culturally sensitive food and nutrition services that are appropriate to levels of independence, diseases, conditions, and functional ability, are key components of the continuum of care (p. 580).

Conclusion

The right kind of assessment is the cornerstone of treatment and care for those individuals afflicted with Alzheimer’s disease. Because assessment is so critical, clinicians must be certain that the models or principles that guide the data collection and analysis lead to the richest possible view, of the client as a person.

A person with Alzheimer’s disease who comes to treatment with a history of successes and failures, traumas and satisfying experiences; a person with a culture that influences values, beliefs, and norms; a person with psychological archives that have shaped the individual’s personality and patterned his or her interactions; a person who lives in an environment that imposes conditions on the quality of life; a person with an enduring drive to bring order to the world, to reduce the anxiety that accompanies psychological unrest, and to experience competence in valued activities.

These dimensions of a person’s life, singularly and in interaction with each other, constitute the “baggage” of the client that must be considered in the assessment process. The attempt to deal with a client’s difficulties without taking stock of this larger context will probably result in ineffective treatment strategies because the clinician’s understanding of the client’s problems will be incomplete and the treatment plan will lack relevance.

Indeed, the aging years of any person are a time when he or she either feels fulfilled and satisfied, or becomes in despair: this is the age of 65 and above. Usually, those who have fulfilled their social roles satisfactorily in middle-adulthood are those who become happy and active until their last days on earth. Those who have failed with their dreams and social roles are the ones who have poor health and illnesses in their old age. During this time, an individual asks himself if he has lived well. If he looks back with regret, it is an indication that his failures overpower his achievements.

Elder care is significant since people over the age of 65 are usually prone to, and may be suffering from diseases, sometimes multiple diseases, and they would need to be accorded assistance somehow, although the assistance is in varying degrees. Frailty, diseases and disability are often correlated with old age.

References

1. Alzheimer’s disease. NIH Senior Health. Retrieved Nov. 7, 2006 at: http://nihseniorhealth. gov/alzheimersdisease/toc. html Erikson, E. (1950). Childhood and society. New York. Norton. Friedland, R. B.
2. Caregivers and long-term care needs in the 21st century: will public policy meet the challenge Georgetown University Long-Term Care Financing Project. McCoy, K. (2006).
3. New Technique Might Help Diagnose Alzheimer’s Disease. Retrieved Nov. 7, 2006 at: http://www. nlm. nih. gov/medlineplus/news/fullstory_39170. html Peck, R. (1968). Psychological developments in the second half of life. In B. L. Neugarten (Ed. ) Middle age and aging. Chicago: University of Chicago Press. Understanding Aging as a Social Process. (2005) Retrieved Nov. 7, 2006 at: http://www. roxbury. net/esgch1. pdf

Avon Products, Inc. (Avon) is based in New York. The firm engages in the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific.

Avon’s products are classified into three product categories: Beauty, Beauty Plus, and Beyond Beauty. The Beauty category consists of cosmetics, fragrances, skin care, and toiletries; Beauty Plus includes fashion jewelry, watches, apparel, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles, and toys.

The company sells and markets its products through a combination of direct selling, marketing by independent Avon representatives, and via its consumer Web site, avon. com. Avon was one of the prominent direct sales companies in the beauty products industry.

Started in the late 1800s by David McConnell, the company sold a wide variety of beauty-related products to homemakers through its direct sales agents. However, by the 1980s, the company had lost its luster and performance began to falter. A failed diversification strategy made it the target of several takeover attempts.

Turnaround efforts were initiated in the 1990s under then CEO James Preston and continued by his successor Charles Perrin, however, they failed to make a significant impact. Performance began to improve only after Andrea Jung became the CEO of the company in 1999. Andrea Jung became president and CEO of Avon in 1999 and has totally revamped the company. Under her leadership, the company has updated its product line, launched new advertising, and created a new image. Avon’s sales have increased by 30 %, profits 40%, and the stock price has dramatically improved.

Jung’s has been able to align the firm’s core capabilities with its strategic targets which has lead to phenomenal results. It appears that Jung has been able to establish a clear vision for the firm that has been incorporated in every aspect of the firm’s operating system.

This vision is shared by all employees and representatives of Avon priming the company for continued success. Other strategies of Jung include cost cutting by reducing number of raw material suppliers, shifting production from smaller plants to larger ones, moving manufacturing from high cost nations like Great Britain to lower cost countries such as Poland.

As mentioned in the Avon case study, the e-representative initiative also has helped Avon cut costs. The direct sellers are asked to fill in the order online. Avon’s brand has definitely resonated for women through the years.

During the 1980s, the company began to diversify by investing in retirement properties and healthcare products, and launching catalogs for men and children. During the initial stages of this strategy, Avon started to remove itself from its core market of selling to women. The results were downward revenue trends and slow growth throughout the 1990’s which resulted in several takeover bids.

Unfortunately, Sears Roebuck and JC Penny do not really resonate well with being a carrier of women’s beauty supplies. The name “Sears” have been associated with appliance and not beauty products. The move of aligning with this companies and trying to sell higher end beauty products will only push Avon in the opposite direction that it should be heading, which is to move back towards tailoring to women domestically and globally. Over the years, Avon has experienced several problems leveraging its brand in many of its product lines.

As a result, positive net sales and earnings growth for the past five years have been in single digits and steadily declining year after year. Specific problem areas are stagnated sales, slow earnings growth, limited distribution capabilities and shift in personal care preferences and spending habits.

Andrea Jung’s proposal to expand into certain retail markets will only perpetuate Avon’s trend of declining net sales. The proposed plan will indeed create an additional distribution outlet and cater to this market segment. However, the question to examine is at what expense or cost will Avon endure making this decision?

Avon has faced tremendous pitfalls marketing its product lines to effectively increase brand loyalty and recognition. Examples of this include the hair care product line. Avon did not effectively develop products for ethnic hair types. Additionally, Avon did not have a hair coloring product line. As a result, Avon suffered in building brand awareness and loyalty with the younger generation as well as the older generation that also demanded this product. Avon has lost loyalty and brand recognition as a result of its decision to diversify into different industries and different product lines.

This has resulted in a loss of market share drastically affecting annual profit margins. To examine the previous question of what cost will Avon endure deciding to move into the retail markets? It is clear and evident; the cost will be a further extension of the existing internal problems that Avon faces. Deciding to move into the retail market to create a store inside a store is not in Avon’s best interest. This move would be a further expansion of Avon’s previous decisions to diversify into markets that do not have synergy and thus will hurt the overall branding of the company.

Finally, implementing Andrea Jung’s proposal to enter the retail market would be detrimental to the already fragile state of Avon’s brand awareness, recognition and loyalty. Another factor for the underperformance of Avon in the late 1990s is its failure to develop the online business. For the fear of alienating its labor force, Avon downplayed the importance of developing the e-business. A company cannot ignore the environment and expect to be successful in the long run.

Due to its internal struggle with the internet strategy, Avon fell behind other less established companies in taking advantage of the explosive growth of the internet Avon’s approach should build on original direction and implementations however expanding as necessary to fit current trends and environmental assessments.

The focus should be on existing internal structures to build, create and advance current product lines. Avon’s focus should also exist in the field of technology to increase online selling opportunities, update internet technology and to re-brand themselves to be a leader of online sells.

To accomplish this, strategy should focus on expanding kiosks globally and domestically. The expansion will leverage Avon by appealing to the market segment requesting additional distribution channels. This strategy will allow for trained beauty consultants to offer advice, education and samples thus increasing brand awareness and loyalty.

Kiosks will have minimal start up cost and lower overheads. Focusing on product lines and catering to the needs and wants of each demographic group will prevent the previous pitfalls of lack of integration and decreased brand awareness and loyalty.

Keeping Avon’s product offering separate and distinct will help existing challenges of branding. Focusing on technology improvements and online sales, Avon will have an opportunity to emerge as a leader in this area, thus adding additional channels of distribution and appealing to the overwhelming need.

Under Andrea Jung’s leadership, Avon has faced a number of challenges. Some of these challenges were addressed successfully and others were not. In the early part of 2000, the management team had the daunting task of choosing an appropriate strategy for the immediate and long-term future for the company.

One setback was a decrease in the firm’s growth rate to single digits and stagnated earnings. Avon’s CEO, Andrea Jung, was presented with a multitude of options that ranged from distributing through other departments stores, establishing kiosks, to overhauling the firm’s e-business. Jung was right in acknowledging that Avon’s core competency is direct selling and its major strength is its brand name. By refocusing on the core competency, improving efficiencies, and adapting to the environment with new initiatives, Avon could overcome the hurdles of the past and turn the company in the new direction.

This case discussed the revival of Avon under Andrea Jung.

1) What is your assessment of Andrea Jung’s performance as chief strategist at Avon Products? What has she done well? What overall grade would you give Andrea Jung for the job she has done as CEO? Answer:

My assessment of Andrea Jung’s performance as chief strategists at Avon products is that she has done excellent job. Her first task was to hit the streets of her neighborhood, ringing doorbells, to better understand the desires of customers and needs of sales agents. She pushed for the addition of attractive new products to Avon and its sales representatives.

Andrea listened to the customers and grew global beauty category sales by new product development, sampling and more up-to-date advertising. The company was in serious trouble with annual sale growth of less than 1.5 percent and a crashing stock price during the general economic boon in history. Jung took the role of Avon lady to better understand what customers thought about company’s product and within field of direct sales model. . Avon’s grand strategy under the leadership of Andrea Jung has its merits and is the grand strategy is properly focused and directed.

Andrea Jung has clearly directed the successful transformation of Avon Products Inc. by defining its vision as the company for women. With grand strategies in-place she is revitalizing Avon’s reputation as the world’s foremost direct seller of beauty products while leading the company into exciting new lines of businesses, launching a series of bold and image enhancing initiatives, and expanding career opportunities for people around the world. The strategic plan in place has its merits and the grand strategy is properly focused and directed. Currently, Avon is the world’s leading direct seller of beauty and related products, with $7.7 billion in annual revenues.

Avon markets to women around the world through 4. 9 million independent sales representatives. The evidence shows that Jung’s grand strategies were sound. The argument that the grand strategies were not optimal and needed to be refocused was weak due to the overall improvement of company performance and increase in shareholder wealth. Andrea Jung’s charismatic communication skills and management direction has catapulted Avon as a leader in the global beauty and cosmetic market. I would like to give Andrea Jung an “A” for the job as she has done her job well as CEO.

She developed great strategy for Avon that helped to increase in sales. Andrea Jung outlined new vision and strategic plan for Avon that call for highly innovative new products, build new line of business, critical link as internet in direct selling model and update its direct sales model to better fit 21st century. At age 40 Jung become CEO and in 2001, at age 42 she listed fourth on Fortune’s ranking of the 50 most powerful Women in American Business.

2) What is Andre Jung’s strategic vision for Avon? Do you approve of the company’s new strategic direction? Why was it time for Avon to fundamentally change direction? Answer:

Andrea Jung’s strategic vision for Avon was for them to be the company that understands and satisfies the product, service and self fulfillment needs for woman globally. I think their new strategic direction made sense. She knew products had to be made to fill the needs of different age group and races. It was time for Avon to become more modern and up-to-date. Jung’s view of new Avon was that of a company beyond selling cosmetics as trusted product which is needed by any women. She was in customer convenient strategy in beauty and financial services.

She insisted that supporting women touches not only beauty, but health, fitness, self empowerment and most important financial independence. Yes, Avon’s new strategic direction would launch an entirely new line of business, the development of innovative products, new packaging, new channels to the distribution, a new approach to supply chain management, new sales models and new approaches to image building. When Andrea Jung became Avon’s new CEO in November 1999, the company’s annual sales growth had slowed to less than 1. 5 percent and its stock price had fallen from a high of $55 to a three year low $25.

The strategies initiated by Charles Perrin had resulted in some improvement in 1998 with modest sales growth, but in late 1999 Avon was in need of bold direction. When Perrin resigned because of his lack in direct sales limitation, Andrea Jung need a fundamental change in direction. Jung understood the desires of customers and needs of sales agents. She heard the customer grips over product colors, mishandled orders, unattractive packaging, lack of innovative products and confusing promotions.

Ultimately she discovered the structural obstacles to achieve in success. Policies for placing orders made difficult for sales agents to increase sales volume and commissions. When Andrea Jung stepped in as CEO of Avon, she brought with her many new, fresh ideas that helped make Avon what it is today. Her strategy didn’t agree with what consultants thought, but she willingly took risks to enforce what she believed to be the best strategy for Avon. We believe that her strategy was good, solid foundation that will continue to keep Avon at the top as America’s number one selling Cosmetic and Beauty Company.

3) What is your assessment to the financial and strategic objectives Jung has set for Avon? Do they contain too much stretch? Too little stretch? Answer:

Several things happened once Andrea Jung was named CEO of Avon. First, she decided to reverse the current trend of losing sales. She did this by creating a strategy that would turn the company around. Jung’s suggested strategy to partner with Sears and JC Penney department stores was an idea that would help to promote the strategy she had come up with. It would introduce a new, upscale product line, thus increasing profits, sales and nationwide exposure to the baby boomer segment. Retail selling increased with in-store customer traffic and expected growth of spending power to 16 percent within five years.

Face-to-face selling comprised 79.7 percent of direct selling, preferred among senior citizens. The marketing budget would be increased to target customer traffic at Sears and JC Penney. Investment costs were limited to $15 – 20 million to launch retail products, with a bulk of expenses being absorbed by the department store. Avon’s strengths would help increase global recognition of brand name and image. Jung suggested promoting certified Beauty Advisors in department stores and increased incentives for sales representatives.

In addition, having department stores sell via the Internet would increase the channels of distribution, thus increasing consumer loyalty. Reduce inventory level while improving service to representatives which increase the forecasting accuracy and order fill rate in supply chain management. Strategy provides opportunity for sales representatives to increase their income and greater career opportunities through sales leadership. Develop E- commerce opportunity for Avon and sales representatives, improving operating margins 50-100 basis points though business process redesign.

Another strategy is growing global beauty category sales through in new product development, advertising and sampling. All these factors would affect Avon’s long-term goals by forcing Jung to find new, creative ways to stay fresh in the market. Jung had created a strategic plan that met the vision of Avon; she had created goals that were measurable and geared toward future company growth. The goals seemed to be obtainable in the current business market. In addition, Jung’s idea that technology may be the answer was in response to a changing business environment which included movement toward e-business.

This ideal would be synergistic and build upon their present success. It is too little stretch because the objectives were not set boldly and aggressively high. These goals were not impossible targets.

4) What have been the key elements of Avon’s strategy been under previous CEOs? What new and different strategy elements have been initiated by Andrea Jung? How well does Andrea Jung’s new strategy seem to match features of the global cosmetics industry and Avon’s resource strength, competitive capabilities, and culture? Answer:

Key elements to Avon’s strategy under previous CEO were set to sell directly to consumers via independent sales representatives working on commission. Avon catered to mostly upper middle income females and focused almost exclusively on US cosmetic market.

Andrea Jung initiated expansion into markets outside US making Avon products available online, and began selling Avon products through retail channels. She also instituted a more upscale packaging to match the look of prestige cosmetic brands. She focused on a low cost/ low price strategy and focus to sale to low and middle income families.

Andrea’s new strategy was likely to improve Avon’s financial performance and help build a competitive advantage. Her approach is sensible in light of what competitors are doing and the position they hold in the market place.

Avon is highly backward integrated, self-manufacturing many of the items that they sell. This causes the competitive pressures of suppliers to be weak. Avon can get supplies from many parts of the world because they have entered foreign markets and produce products in different countries. A lot of Avon’s supplies such as packaging, may be easily substituted if a supplier raised prices.

Under Andrea Jung’s direction, Avon is focusing on developing nations especially China. Many developing countries are more receptive to direct selling by women since jobs with Avon are opportunities for women who want to be independent in the male dominated cultures. Avon has also recognized that the demographics has changed and recruiting younger women to sell to the younger customer base. Competitive pressures stemming from customer buying power is moderate because switching costs are low and customers have the ability to fulfill their needs by switching brands.

Buyers tend to be well informed about Avon’s product prices and costs largely due to the Internet and this put customers at a position of higher bargaining power. Customers do not pose a threat of integrating backwards, because it would not be easy for women to develop their own make-up, perfume or skin care products. Due to the direct selling business model, there is an extremely large number of buyers. Another Avon objective that aims to alleviate pressures coming from competing sellers includes consists of reinventing their antiquated image.

Realizing this, Jung endorsed the Williams sisters. Venus and Serena Williams were popular teen icons that portrayed the image where Jung hoped to achieve for Avon; young, powerful, and ambitious.

5) How well has Avon’s new strategy been implemented so far? What are Avon’s strategy successes so far? What problems or missteps do you see? How important has Susan Kropf been to Avon’s implementation efforts? Was she a good choice as chief operating officer? Why or why not? Answer:

Andrea Jung’s highly successful career would not be possible without effective and insightful management.

”Throughout Jung’s ambitious expansion, her management style was to emphasize open communication, goal orientation, and feedback from her sales force. ” Avon routinely brings in the top performing sales reps from across the globe to Avon’s headquarters in New York City in order to gather first hand feedback from the employees in the field. Ms. Jung herself even attempted to sale Avon’s products as a traditional Avon lady. An attempt she acknowledges was not one of her more successful endeavors. The attempt however, showed Ms. Jung’s commitment to understanding all aspect’s of the Avon business. A common theme in Ms.

Jung’s leadership speeches encourage women empowerment and promote a belief that more women will continue to hold key executive roles. Under Ms. Jung’s leadership, Avon management supports flexible work schedules and encourages employees to create a healthy balance between work and family responsibilities.

There are a number of missteps that Avon has taken under Andrea Jung’s leadership. They include partnering with companies that image does not adequately match Avon’s and the company’s problems with launching its online business segment. Recently, Avon announced plans to partner with Sears and JC Penney’s.

One of the potential negative aspects for Avon partnering with JC Penny and Sears would be the possible lowering of brand name for Avon. The company ran the risk of possible further reduction of its brand name. ” Since its inception Avon has worked very hard in tailoring its niche market towards women. Ms. Kropf’s most recent responsibilities included certain global staff functions. She retained responsibility for global marketing as well as the companywide Business Process Redesign efforts that have freed up nearly $400 million in the past three years for reinvestment in consumer brand building and other growth initiatives.

Yes, Susan Kropf was a good choice as a chief operating officer of Avon Products Inc. with full profit-and-loss responsibility for all of Avon’s worldwide operations, including global marketing and supply chain. Susan has played a critical role in Avon’s success by sharing her insights on Avon’s rich history and the company’s successful strategies for sustaining brand power for over a century. Susan Kropf reconfigured the value chain thereby cutting costs of non-value adding areas.

6) Has Andrea Jung been effective in evaluating the company’s performances, monitoring new developments, and initiating corrective adjustments?Does Andrea Jung appear to have Personal traits well suited to refining and fine-tuning the company’s strategy and implementation efforts? Are her strengths better suited to instituting sweeping changes and quickly moving to a new project? Answer:

Andrea Jung represents a great strength to Avon Products Inc. Regardless of gender, any CEO who can take a company with a 50 percent drop in share price and raise company stock by 164 percent in five short years shows insightful leadership and effective management. In addition to the financial success, Ms. Jung has also played a vital role in Avon’s public relations arena.

She shows an amazing ability to connect with a variety of shareholders and the public. Her ability to communicate with all levels of an internationally diverse Avon staff and public contribute to Avon’s ability to successfully implement strategic changes in direction.

Yes, Andrea Jung’s vision of what she wanted to accomplish as CEO of Avon included a strategy to; improve brand image, introduce new products, increase use of the internet as a channel of distribution, provide greater incentives and opportunities for the sales force, reduce unnecessary costs in the value chain, and continue to expand into global markets.

Product innovation was a large part of Jung’s strategy for Avon. In fact, in 1999 she challenged Avon’s R&D team to develop a new product within two years. In less than one year Avon introduced Anew Retroactive, an anti-aging skin cream. It achieved record sales for Avon and led to the development of other successful lines of business.

In less than one year Avon introduced Anew Retroactive, an anti-aging skin cream. It achieved record sales for Avon and led to the development of other successful lines of business. For example, Avon Wellness products exceeded sales estimates by 300%.

One problem that Avon faces is the strong competition within fields they are trying to expand into. Avon is marketing a nutritional product line called Wellness, which includes vitamins, supplements, bars, etc. This market is competitively strong. Being ahead of the industry in introducing new products combined with the company’s already strong market position could further improve Avon’s brand equity and therefore revenues. In particular, Avon should continue to integrate sales representative into all aspects of sales. This is Avon’s own key success factor and what sets them apart from their competitors.

With the growing popularity of the internet as an outlet of commerce, Jung was compelled to implement internet sales into her strategy, realizing that the “Avon Lady” is the distinctive core competency for Avon in new projects.

7) What additional actions would you recommend Andrea Jung take to help the company to achieve its long term strategic and financial objectives? Are any changes needed in the company’s vision? Its objectives? Its strategy? Its implementation efforts? What challenges might the new strategy present to Avon’s top management team? What risks do you see? Answer:

Based on demographic data, China holds 20% of the world’s population. This represents a vast market of which Avon has only begun to cover. Avon should continue to focus on the expansion of retail outlet sales in China. Also, because the only sales in China are generated through retail outlets, Avon should further develop their Beauty Advisors training. Europe should also be a continued focus for Avon. Industry leader, L’Oreal’s attributes 50% of their total sales to the European market. Avon had a successful growth rate in Europe but only 23% of the total 2003 sales came from Europe.

There is still room to expand in this market. Based on one of the industry’s key success factors, product innovation, Avon should focus even more resources on R&D especially in the areas of anti-aging products and teen products. Because 23 million teenagers have an average weekly disposable income of $85, Avon should continue with innovative teen marketing such as the current “mark” brand but also work on products for problem teen skin. Avon Products Inc under the leadership of CEO Andrea Jung is at a point where there are opportunities for growth for the organization. However Ms.

Jung appears to be indisposed towards taking steps to take advantage of Avon’s position. Also her approach is flawed. Let’s take a look at her approach and then also look at viable alternatives. Andrea advocates: partnering with Sears and JC Penny department stores so as to create a store-within-a-store, Avon products.

Based on this, the board of directors felt that Jung’s original options did not provide the same amount of increased sales and revenues, attraction to increased clientele base, motivation and acceptance by current sales representatives, or increase shareholder wealth as the consultant’s options did.

The consultant’s options provided a means to Avon Products, Inc. to become a household name to those whom were not attracted by limited previous distribution channels, and Jung’s choices of re-invigorating the brand, instituting beauty advisory training, expanding multilevel sales programs or partnering with department stores. Kiosks were admittedly a risk. At $6,000 per kiosk and lack of information on kiosk performance, Andrea indicated these would be too expensive.

Perhaps a trial run of a low number of kiosks in the environment would settle this question. In conclusion, the Avon CEO strategy did not impress as very well thought out and it was a good thing she went to the review board first. Avon should stick with their bread and butter – the sales representatives as it is the channel where they were recognized and where they became one of the largest beauty products in the world. The website should be a complement to the services that Avon offers. Recommendations:

For promoting direct-sales through consumer and the business; one is to offer incentives to its customers and second is to motivate the business to promoting its products by advertisements, establishing sales competition for employees, participating in conventions, and by endorsing franchise of its products to retail stores.

Promoting Avon’s products and high chance of increasing direct-sales is to offer incentives to its consumers. Incentives provide a positive motivational influence to encourage and excite buyers to buy the products. Such incentives, appropriate for this situation, are coupons, rebates, product samples and awards.

Coupons can be attached in mail, beauty magazines, newspapers, and advertisements on mail or on the internet company’s official website. Rebates can be offered also to attract more buyers to buy the products.

Rebates can be advertised also on coupons through mail or the internet. Another successful way of attracting consumers is by offering samples of Avon’s cosmetic products, which can be done door-todoor or attached on an advertisement through mail. Finally, awards through prizes, contests or sweepstakes can offer consumers the chance to win something small or big like cash or free-trips.

Also, prizes can be offering a free gift whenever a consumers purchase one of Avon’s products. This last incentive option attracts more attention from consumers than the three other options. Motivate the Avon business to reach its goals of promoting its products and gaining sales through advertisements, sales competition, participating in conventions and endorsing franchise. Advertising is the key to attracting consumers and the outcome is high sales. Such advertisement is done through media (television), mail, or the internet.

The more awareness from the public of the company likely to attract more buyers and the outcome is high sales. The next option is to encourage Avon’s sales representatives with awards/prizes that reached their sales goals within a period of time.

Another is participating in conventions and this is more likely to increase sales through direct contact with customers. Last is to endorse franchise of Avon’s products with small and big cosmetic-related retail stores, such as Macy, JC Penny, etc. This option can be most likely increase sales and in turn profit which is any company’s ultimate aim.