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Avon Case Study Analysis

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Issue:

Business

 

Written by:

Larisa P

 

Date added:

July 27, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

9 / 2259

 

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9318 times

 

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A turnaround grand strategy was envisioned in 2000 to help reenergize the flagging U.S. sales force, which was facing fierce competition from Mary Kay and L'Oreal and seeing profit margins declining. Jung's new strategy focused on the following: 1) "reinvigorating the brand?which had an aging-grandmother feel to it?with new products, new packaging, and a new ad campaign" (Pearce and Robinson, pg...
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15). This is exactly what Jung did using a turnaround grand strategy, which began with a form of retrenchment (pg.212). The turnaround strategy's success lies with a company's ability for management to be effective and efficient in the retrenchment process. A firm that has seen either a steep or gradual decline as Avon had, more than likely face a sharp cost reduction in order to stabilize their operations and restore their profitability (pg...
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