The Status of the Company That Led to Its Determination That a Change Was Necessary - Term Paper Example

?Insert A Brief of the Status of the Company That Led To Its Determination That A Change Was Necessary There are several reasons that necessitated to the acceptance of change as necessary for the company, Avon Products. According to Goldsmith and Carter, one of the reasons is that necessitated the need to acknowledge the need for change is performance profile which is indicative of: dwindling volumes of sales and stock with depreciating values; internal investigations that suggest alleged leaks; the danger of imminent takeovers by either of Avon Products' suitors; and the investigations that touched on charges of bribery in China. These issues convince the public and economists that the CEO of Avon Products, Sherilyn McCoy and the rest of the organisation may fail to resuscitate the company's dwindling fortunes, despite McCoy's exemplary leadership record at Johnson & Johnson and other pharmaceuticals (Goldsmith and Carter, 10). At the same time, the company's need for change and restructuring is based on the very company's uncertainty. This is because, despite the qualifications and performance track record that McCoy possesses, yet it is true that Sherilyn McCoy lacks experience which is directly related to sales. In the same wavelength, McCoy's unfamiliarity with the Avon Products' business model means that she will have to face a seriously steep learning curve (Goldsmith and Carter, 16). It is also pointed out that Avon Products lacks adequate and proper resources and manpower to make it in a dynamic market that is graced with seasoned companies such as L'Oreal, for competitors. 2. Identifying the Model for Change Theory Typified In the Case Study of Choice The model that can best change theory that is likely to help Avon Products' situation is the planned model. Change theory will also readily necessitate the need to take on the use of decision theory. This is because decision theory suggests that people satisfice during decision making, as collective participation during decision making amplifies room for change. According to Rossotti, this recommendation above involves making plans for changes that need to be developed in order to: define measurable goals; outline the strategic factors that are determinants of success; detail the steps that are to be taken in organisational implementation; and outlining the manner in which commitment is to be realised from chief decision makers (Rossotti, 75). In regard to the proposition above, it will be important that Avon Products refocuses its energies and focus on its client base. This proposition is necessitated by the fact that Avon Products is clearly turning away from focusing on market-centred exploits. It is only by following the change theory strategy that Avon Products will be able to effectively use emerging social media and technologies to make operations more customer-centric. This exploit will help the company identify the most valuable strategies such as direct contacts with potential and prospective client. Discussing Factors That Led To the Identification of the Model Chosen There are several factors that qualify the need to choose the change/ decision theory. The most fundamental of these reasons is the manner in which market trends are becoming too pervasive to be ignored in market competition. Particularly, the online social media has become an indispensible tool in for sales and marketing. The number of consumers who are buying cosmetics and perfumes online continues to increase by the day, and Avon Products must not ignore this phenomenon. Avon Products' arch rivals such as L'Oreal, Sephora, Beauty, Mary Kay and Drugstore have already gone to online marketing as a way of netting in a bigger clients' base. Avon Products' successful initiatives of developing e-catalogues and android and iPhone applications are not enough to net clients in social media, and those on tablets and smart phones. This will call for the application of change theory in Avon Products' chain and systems policy of communication. It is only by taking this approach that Avon Products can take care of its presently dwindling volume of sales. The need to use decision theory is also underscored by the fact that the success of Avon Products cannot be realised outside of consultative decision making which is a pillar of decision theory. Avon Products can only be successfully turned around only when McCoy engages her fellow departmental heads in crafting performance target, strategies and organisational changes. Consultative forums will also be indispensible when Avon Products will be considering the way to go, in respect to the imminent takeovers that may be carried out by he company's two suitors (Rudis, 62). Again, change theory remains an important tool for turning Avon Products around, especially in regard to the bribery incidents and claims that materialised under the former CEO Jung's watch. It is important that the company changes the installation of its computer systems to avoid the frustration of the company's sales representatives which may make them succumb to the allure of bribing government officials. Walter divulges that the company's stock price which dropped by 45% and revenue, by 4% can be reversed by introducing changes to help bring about positive changes. Part of the change theory herein will involve, incorporating the company's managerial and junior staff in decision making, to take care of McCoy's insufficient grasp on market dynamics. A broader decision making organ will shield Avon Products from inchoate decisions and opaqueness in decision making (Walter, 50, 51). 3. Illustrating the Types of Evaluation Information That Were Collected and How They Are Used To Benefit the Company Aquinas points out that the type of evaluator information that has been used emanate from the reports on the company, after these reports have been made available to the public. These reports can be bifurcated into information which Avon Products itself will have disseminated to the public concerning its performance and progress and accounts established by external investigators and/ o auditors. Statements of account such as balance sheets and trading profit and loss accounts are some of the information that Avon Products like any other profit making organisation may release to the public as is required by law. Analysts may therefore pick up on these statements of accounts to determine the kind of progress that Avon Products may be making (Aquinas, 24). Investigations that were carried out on the bribery claims against Avon Products are examples of evaluation reports that may serve as a pointer to the direction the company is taking. Organisations which struggle with serious ethical issues such as bribing of government officials as is Avon Products' case are those that are going down into defeat, if they are not turned around. All these sources of information serve as a compass to Avon Products by helping the company determine how far or near it is, towards achieving performance target. Since evaluation information makes it clear that Avon Products is not going towards the same path that is to lead it to the realisation of performance target, then this information will compel Avon Products to carry out serious performance appraisal and to restructure the manner in which it dispenses its synergies towards the greater goal. 4. Speculations about Success of the Changes within the Next 5 Years and How Adjustments Could Be Made If the Results Become Less Than Ideal In the next 5 years, Avon Products may have become stronger, gained a bigger market share and gained a more positive corporate image. This is however, as long as it enforces necessary changes that are based on change/ decision theory. The use of more advanced tools such as online social media, iPhones and iPads as marketing tools is bound; the use of consultative forums in intra-organisational decision making level; the restructuring of decision making organ to make it less unilateral; and reestablishment of organisational standards and ethics and information and computer systems are bound to herald these gains. If the results do not meet performance target, these steps are the very guidelines that should be used as tools for positive change. Works Cited Aquinas, Paul. Organisational Behaviour: Concepts, Realities, Applications and Challenges. New Delhi: Excel Books, 2006. Print Goldsmith, Marshall. & Carter, Louise. Best Practices in Talent Management. New York: John Wiley & Sons, 2010. Print Rossotti, Charles. Many Unhappy Returns: One Man's Quest to Turn Around the Most Unpopular Organisation in America. Boston: Harvard Business School Publishing, 2001. Print Rudis, Esther. CEO challenge: Perspectives and analysis. New York: The Conference Board, 2007. Print Walter, Jones. "Relooking the case of Avon Products." Journal of International Business, 2.6 (2009): 45-67. Print Read More