Strategic Leadership and Change Management Report: Avon's UK Expansion

This report provides a comprehensive analysis of Avon's leadership and change management strategies, focusing on its potential expansion into the UK market. It begins with an introduction outlining the company's goals and challenges, particularly its losses in the US market. The report then conducts a strategic audit, encompassing both internal and external factors, including a PEST analysis of the UK market. A SWOT analysis is presented to identify Avon's strengths, weaknesses, opportunities, and threats. The report proceeds to explore strategic options using a TOWS matrix, evaluating Maxi-Maxi, Maxi-Mini, Mini-Maxi, and Mini-Mini strategies. Strategic selection is then evaluated using a SAF framework, assessing suitability, accessibility, and feasibility of various strategies, followed by project implementation plan with tasks, deadlines, and responsibilities. The report concludes by emphasizing the importance of effective leadership and change management in achieving Avon's expansion goals. The report aims to provide a roadmap for Avon to successfully establish and grow its business in the UK market.

Leadership and change
management
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
STRATEGIC AUDIT..................................................................................................................1
SWOT ANALYSIS ...................................................................................................................2
STRATEGIC OPTIONS..............................................................................................................3
STRATEGIC SELECTION.........................................................................................................6
PROJECT IMPLEMENTATION................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Ultimate aim of any firm is to gain maximum profit. This is only possible when they will
be able to deliver their customers with high quality services (Kok and McDonald, 2017) With
this respect, it is important to understand the needs and requirement of customers so that they
will be able to make changes in the services and products. Present report is about Avon which
deliver cosmetic product. Cited firm is facing losses at the market of US and so they are planning
to make their business expand at UK. This report covers SWOT analysis and external audit
(Belias and Koustelios, 2014) Further, it covers the selection of strategic choices that will
improve the performance level.
STRATEGIC AUDIT
The Avon products is one of the leading beauty products company which is mainly dealing with
different types of beauty products through direct selling. At present the company is facing many
challenges in order to running its business operation in US. The Strategic audit meas that review
the business plan of organization and identify weakness and shortcoming which make enable to
organization for making them successful development company (Botschen, Combe and Thelen,
2013). Avon industry makes different types of beauty products. In recent years they are facing
many problems in their business. There are various typs of strategic tools which can be used by
organization for conducting strategic audit. The Audit can be done in two types internal or
external. Following are strategic audit of Avon industry (Bligh, M.C., 2017)
Internal audit
In the internal audit of the company it is assessed that the company selling is products on
large scale and global leaders of marketing technique is called direct selling. The organization
has large workforce and distribute their product through agents and contracts. They are focusing
more on developing new products by investing a higher amount in research and development.
The goals an objective of the company is very clear as they want to ensure the long term growth
in beauty industry (By and Burnes, 2013). The entity's structure has unique matrix structure as e
result they can make effective communication in the whole organizations. The decisions making
process of company is highly centralized so it takes time to make effective decision in the
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company. The company's cultural has been build on strong values which helps to them for
offering more innovative products to their customers.
External audit
The external audit of company consists those factors which externally create impact on
Avon industry and its business operations. For external audit PEST analysis has been used which
are as follows.
Political factors
In UK have the strong political stability and long with this UK government make law on
the distance selling in order to protect the consumers interest so it may effects the company for
making selling of its products or services (Cummings and Worley, 2014).
Economical factor
In UK beauty industry is rapidly increases so it helps to company for arsing their profits.
The GDP of UK is continuous is increases and there export is cheaper than import (Anderson,
and Sun, 2015.). But along with this UK currency is highly fluctuating so Avon may face some
issues to this.
Social factors
The social factors is that, In UK people have more aging people and there are some other
social factors which can effects the organizations such as the young people of the country is
highly spending their money on the beauty products and other items.
Technological
In UK people are updates with technology and every organization is using technology for
improving their business operation (Halkias and et. al., 2017). Avon company can make invent in
their website so UK people become aware regrading to their products or services.
SWOT ANALYSIS
The following table provides SWOT analysis for Avon Products Inc.
Strengths
-Stable revenue growth makes the
organization strong
-Leading market position
-Differentiated business model helps in
Weaknesses
-Smaller market share
-Lack of innovation
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making the organization an important player
Opportunities
-The company has opportunity to undertake
rearrangement initiatives for organizational
effectiveness
-Various emerging markets present
opportunities for organizational expenses
-Re- branding policy for consumer request
Threats
-Fierce competition in the industry is a threat
-Global macro- economic factors present
various threats
-Over- dependence on third party suppliers
can be a threat
The internal audit helped in determining the strengths and weaknesses of Avon. Further, the
external audit helped in obtaining information about the opportunities and threats.
As per the analysis, it has been found that Avon relies on third party suppliers for majority of its
raw materials (Hayes, 2014). This would present a threat for the company in the case if the
bargaining power of suppliers increases. The company may threats in terms of adjusting to the
terms and conditions of the third party suppliers. There is fierce competition in the industry
which is another major threat for the organization. Various global macro- economic factors also
act as external threats for Avon. Changes in the economic conditions, exchange rates and
inflation threatens to impact the operations as well as customer base of the chosen organization.
But, considering the opportunities, Avon can take rearrangement initiatives that can bring
improvements in the effectiveness of the organization (Komives and Wagner, 2016). Moreover,
Avon can also enter and plan its expansion to a number of emerging markets such as India,
China etc. Apart from this, it is important for the company to focus on the aspects related to
customers as well. This area provides another opportunity to Avon which comprises of re-
branding its policy.
Smaller market share reveals a weakness for Avon. Innovation is the need of the hour for all
industries. But, this is a weakness for Avon as the organization lags behind in making innovation
efforts. However, the organization has stable revenue growth which is a strength for Avon. It
provides stability to the Avon in financial terms as well (Lozano, Ceulemans and Seatter, 2015).
Moreover, the organization has a leading position which helps in retaining the existing customers
as well as attracting the potential ones. Further, Avon has adopted a differentiated business
model that has made it emerge as an important market player.
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STRATEGIC OPTIONS
TOWS Matrix
TOWS Matrix
External Opportunities (O)
1) Rearrangement
initiatives for
organizational
effectiveness
2) Emerge markets
3) Re-branding policy for
consumer request
External Threats (T)
1) Intense competition
2) Global Macro-economic
stresses
3) Reliance on third party
suppliers
Internal Strengths (S)
1) Stable revenue
growth
2) Leading position
attract new
customers
3) Differentiated
business model to
emerge as an
important player
SO
Maxi- maxi strategy
This strategy has been used by
organization in order to make a
leading position in emerging
market. The organization have
differentiated business models
so they can easily attract more
customers in business (Lozano,
Ceulemans. and Seatter, 2015).
ST
Maxi Mini strategy
The company possesses
strong financial growth and
they have differentiated
business model to overcome
with intense competition.
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Internal Weaknesses (W)
1) Small market share
as compared to
bigger brands
2) Declined in North
America
WO
Mini Maxi strategy
The company has small market
so the can make entry in
emerging market. By using
regrading in their business
increases sales in North
America (Belias, and
Koustelios, 2014).
WT
Mini Mini strategy
The company can offers
different types products to
their customers in order to
gain market share.
Maxi- maxi strategy
The company has strong financial position so they can take any type of initiatives in their
business (Binci, Cerruti and Braganza, 2016). In order to gain market share in UK the company
can offers different types of products in emerging market so they can take advantage of
competitive business environment.
Maxi Mini strategy
In UK Avon company has to face many global brands and along with this there are
various types of micro factors which can create huge impact on organization's performances
(Botschen, Combe and Thelen, 2013) In order to this the company can use differentiated model
so they can give strong competition to their competitors.
Mini Maxi strategy
Avon company hold small market share in UK and their sales is also declining in north
America so the company can use re branding to avoid these problems. Through this approach
they can easily avoid these problems.
Mini Mini strategy
The company can offers different types products to their customers in order to gain
market share (Behance.net. 2017). With this help of this strategy they can easily overcome with
these problems.
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STRATEGIC SELECTION
By evaluating the Twos matrix Avon industry make some strategies which helps to them
for expanding their business In UK the market strategy of company is focused on expanding
their business by offering different types of innovative products to their customer’s and on the
other hand for the operational they develop new human resources polices which helps to them
for expanding their business (.By, and Burnes, 2013.) All this strategy evaluated through SAF
frame work.
Suitability Accessibility Feasibility
Offering different
types of innovative
products
These strategies is
perfect suitable for the
expanding business in
UK. In the UK Avon
company is considered
as the new company
and people of UK is
also spending good
amount of money on
beauty products so
they can offer new
products in new
market.
Stakeholders of the
company is also
considered as good
strategy because of
this strategy they gain
extra income from
their business (Chai,
and Ngai, 2015)
Implementation of this
strategy is feasibility.
Avon is financially
strong so they can
easily expand their
business.
New human
resources polices
For applying this
strategy there is very
low risks is associated.
In this strategy Avon
make their employees
motivated and ensure
that they make
commitment for their
Stakeholder of the
company is also
considered as the
effective strategy as
the company is
expanding their
business in UK so they
gain benefits from the
new HR polices
New HR polices helps
to company to make
complete study on the
organization. In also
helps to organization
to target their
customers(Imai,
Yamakawa, and
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work (Cummings, and
Worley, 2014).
Huang, 2014).
PROJECT IMPLEMENTATION
By analysis of strategies implementation of stragey, Avon industry is planning to expand
their business in UK (Sinagra, Cunningham and Anglin, 2016) Organization's objectives is to
expand their business UK by offering different types of innovative products or services to their
customers. In UK demand of beauty products is rapidly increases so Avon can expand their
business easily.
TASK Deadlines Responsibility
Conduct market research
thorough which Avon
company assess the market
demand of products
Four months from the
implementation of stragey
Marketing and sales
Plan and design is to develop
innovative products for their
customers.
It will take one and half moths
to completed this project
Department of research and
development
Production planning It
includes how many new plant
should be involved in.
It takes 3 weeks to complete
this tasks.
The head of production
department
Manufacturing of the beauty
products by using technology
(Audzeyeva and Hudson,
2016)
For manufacturing of new
products they should be assess
the demand of customers so
they can develop their
products as according to the
customers requirements/ for
this 4 days need to take
The Staff in the production
department and the number of
staff allocated to business.
Promotion, strong promotion
need to be done in order to
For this the Avon company
need 5 weeks in order to make
Departments of sales and
marketing is responsible for
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gain competitive advantages in
UK market. Avon need to
target their customers direct so
they gain market share.
communicates to their
customers (Chang, 2016)
making promotion of their
products.
In order to make their project implementation more successful Avon also make strong
design of control in which they control on their implementation design. So they can gather more
customers in their emerging market. It helps to them expanding their business easily.
CONCLUSION
In order to make business expansion, it is important to consider the taste and preference
of customers. Accordingly, they should make changes in the services and products sot aht strong
customers base can be developed. Further, market research should be conducted so that the
requirement of customers can be determined. Managers should monitor their workers so that they
get to know the areas in which improvement is required. As per the findings, they should be
provided with training and development with the help of which performance level and raised and
they support in achieving the organizational goals and objectives.
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REFERENCES
Books and journals
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new ‘full‐range’theory. International Journal of Management Reviews.
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application during the post implementation phase? Deep structure transformation at a UK
retail bank. European Journal of Information Systems. 25(1). pp.29-46.
Belias, D. and Koustelios, A., 2014. The impact of leadership and change management strategy
on organizational culture. European scientific journal. 10(7).
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in change management?. Leadership & Organization Development Journal. 37(5). pp.558-
578.
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in retailing. In European Retail Research (pp. 1-18). Springer Fachmedien Wiesbaden.
By, R. T. and Burnes, B. eds., 2013. Organizational change, leadership and ethics: Leading
organizations towards sustainability. Routledge.
Chai, J. and Ngai, E.W., 2015. Multi-perspective strategic supplier selection in uncertain
environments. International Journal of Production Economics. 166. pp.215-225.
Chang, J.F., 2016. Business process management systems: strategy and implementation. CRC
Press.
Cummings, T. G. and Worley, C. G., 2014. Organization development and change. Cengage
learning.
Halkias, D. and et. al., 2017. Leadership and change management: A cross-cultural perspective.
Routledge.
Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
Imai, A., Yamakawa, Y. and Huang, K., 2014. The strategic berth template problem.
Transportation Research Part E: Logistics and Transportation Review. 72. pp.77-100.
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Kok, S.K. and McDonald, C., 2017. Underpinning excellence in higher education–an
investigation into the leadership, governance and management behaviours of high-
performing academic departments. Studies in Higher Education. 42(2). pp.210-231.
Komives, S. R. and Wagner, W. eds., 2016. Leadership for a better world: Understanding the
social change model of leadership development. John Wiley & Sons.
Lozano, R., Ceulemans, K. and Seatter, C. S., 2015. Teaching organisational change
management for sustainability: designing and delivering a course at the University of Leeds
to better prepare future sustainability change agents. Journal of Cleaner Production. 106.
pp.205-215.
Sinagra, M., Cunningham, R.M. and Anglin, K., 2016. The American Girl Retail Experience.
Online
Behance.net. (2017). Behance. [online] Available at:
<https://www.behance.net/gallery/14005011/SWOT-Analysis-for-Avon> [Accessed 26 April
2017].
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