Avon Products Case

Avon Products is a 122-year old company that grew to become a leader in direct selling of cosmetic, fragrances, and skin care products. Avon Products focus on providing financial freedom for women globally. In 2005, Avon Products has gain a 10 percent cumulative annual growth rate (CAGR) in revenue and a 25 percent CAGR in operating profit from 2000 through 2004. Avon Products had reached more than forty countries, which brought in more than 70 percent of its earnings. Based on the number Avon Products were successfully.

However in 2006, Avon Products began to experience a decrease in operating profits and destruction revenue. The infrastructure and talent could not support the growth at Avon Products, which was a contributing factor to downward spiral of profit and revenue. Avon's current systems did not allow for open communication about current or future aspirations about the company or the employee's future with the company. Neither employees nor managers could clearly understand the talent search or recruiting process for the company.

The CEO, Andrea Jung made the decision to restructure the organization in efforts to restore the success of Avon Products. This paper will discuss the status of the company that led to the necessary changes. Secondly, it will address the model for change theory typified and why the model seems to correlate with the organization. Next, it will discuss the evaluation method and how the method benefited the company. Last, it will predict the success of the changes within five years and adjustments need if the changes results are less than ideal.

Provide a brief description of the status of the company that led to its determination that a change was necessary.

Avon's current systems did not allow for open communication about current or future aspirations about the company or the employee's future with the company. Neither employees nor managers could clearly understand the talent search or recruiting process for the company. A turnaround strategy was projected in 2006 to help reenergize the fading U.S. sales force, which was facing competition from Mary Kay, and Revlon and seeing profit margins declining. Jung's turnaround 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. 212). Jung focused on restructuring the company's sales force through cost reduction. Jung cut costs by consolidating the management. The company went from having 15 layers of management down to eight. This cut reduced compensation and benefits.

Identify the model for change theory typified in the case study of your choice. Discuss what led you to identify the model that you did.

Changing the leader's behavior developing leadership talent is important to any organization. Strong leadership and effective management can measure organizational performance to include revenue growth, profit, market value and long term returns. It can also increase customer satisfaction and retention. As a result of strong leadership outcomes for the organization will be better, more engagement from talent and enhance high potential talent retention and development.

The model for change theory Avon exhibited is Transtheoretical Model of behavior change. TTM " is an integrative, biopsychosocial model to conceptualize the process of intentional behavioral change. Whereas other models of behavioral change focus exclusively on certain dimensions of change (e.g. theories focusing mainly on social or biological influences), the TTM seeks to include and integrate key constructs from other theories into a comprehensive theory of change that can be applied to a variety of behaviors, populations, and settings." (www.umbc.edu) Stages of Changes is just one component of TTM. The model has been use for weight loss to substance addiction to cancer to policy-making arena. Prochaska and DiClemente's stages of change consist of five stages one goes though to in the process of changing their ways. The five Stages of change are pre-contemplation, contemplation, preparation, action, and maintenance. This model vividly shows which stage individuals are in.

To start Avon pre contemplation was so accustomed to using their outdated talent management process that included opaque, egalitarian, complex, episodic, emotional, and meaningless. Avon could not see beyond their process to identify or acknowledge that a change was needed. Not only do individuals get stagnated in our regular routine so does businesses. When business become stagnated it is hard for a company to achieve their business goals and objectives. The future of the business is foggy. Avon had uses this practices for years and it became a determent to the organization. The organization started to loose profit, employees, and the fame it once had for being one of the top for cosmetic and fragrance. Contemplation Avon had to make an executive decision to change their talent management process, which was no longer effective. The information needed to assist with making the decision was right before the management team eyes.

Avon moved to the preparation