The Avon products company was founded in 1886 by the David H. McConnell. The company is based on the industry of personal care and it is headquartered in New York City, New York, United States. The functions of the company are owned, control and executed by the Chairman Andrea Jung and the CEO Sherliyn S. McCoy. The services of the company are performed all over the world. The product line of the company includes the cosmetics, toys, perfume and clothing. The company is the multi level marketing company and is considered as to be fifth largest beauty company and selling venture across the world.

Avon External Factor Evaluation Matrix

External Strategic Factor

Weight

Rating

Weighted Score

Comments

OPPORTUNITIES

       

Emerging and expanding it through the small firms and businesses.

0.13

3

0.39

There is an opportunity for the company to enhance its business by emerging and expanding it through the small firms and businesses.

customer driven demands

0.05

4

0.2

To adopt the various sorts of strategies like of the customer driven demands in order to have the rebranding of the products.

restructuring of the initiatives

0.03

2

0.06

The steps should be taken by the company in order to restructure the initiatives so that to have better effectiveness results within the organization.

The huge demand of the innovative products especially like the green products,

0.1

3

0.3

The huge demand of the innovative products especially like the green products, which the company manufactured about almost six % in one of the previous years that are approved to be ethical, organic and all natural.

increasing market and trend for the eye make over

0.03

3

0.09

The increasing market and trend for the eye make over is the best opportunity for the company to build up a significant place in the global market with respect to the niche areas.

Geographical aspects

0.03

3

0.09

The geographical aspects in the market also lead the company to grow within the countries having high population especially India, Indonesia and China.

Perceived loyalty about the Brand

0.04

4

0.16

The loyalty perceived by the people towards the brand is almost about sixty eight percent of the consumers who will also remain loyal to the company which ultimately increases the sales.

THREATS

       

Intense Competition

0.04

4

0.16

The company is experiencing huge and intense competition in the market with its well being competitors like Mary Kay and Revlon.

Macroeconomic pressure

0.06

3

0.18

The macroeconomic pressure faced by the company all over the world is the threat in case of declining in its sales.

Overdependence of company over suppliers

0.09

3

0.27

The over dependence of the company on the suppliers of the third party occurs some of the fraudulent factors.

Rejection I internet selling

0.07

4

0.28

The rejection of the company in order to sell the products by the sales representatives through the internet.

More innovation required

0.05

3

0.15

The factors of the innovative and new product development due to the global economical change and sustainability programs.

Inflation rate

0.12

4

0.48

The inflation rate may cause the decline in the demand of the com pay’s products and also the increasing costs of the products and commodities during manufacturing decreases the growth.

High priced product

0.08

2

0.16

The selling of the products with the high and branded prices but the inferior quality in the multilevel companies.

The replacement of the Avon products with the other brands

0.06

3

0.18

The replacement of the Avon products with the other brands which attracts the women who are attracted by the innovative and extensive product line.

The decline in the earning opportunities

0.02

4

0.08

The decline in the earning opportunities is the threat for the company to maintain its position in the market.

Total Weighted Score

1

 

2.81

 

Conclusion

Based on the above calculations it has been concluded that the company’s Total Weighted Score is 2.81 which shows that somehow company has been successful in utilizing its opportunities and minimizing the threats around it.

References

• Macfarlane, T., Heaven, R. et al (2010), A study conducted on the case study Avon Products. Strategic Management.

• www.AvonCompany.com, Retrieved on June 30, 2012.