Avon’s Fight on Recession

Avon’s Fight on Recession

Introduction

Recession is one thing that everybody in the world is afraid of. This is because it causes hard times for everyone financially. Companies in the world use different methods to cope with the effects of recession.

Thesis statement

An analysis of Avon shows that there are various things that it can do to handle recession properly.

Purpose of paper

The purpose of this paper is

• To explore the ways in which Avon can handle making of alliances and acquisitions globally.
• To show Avon’s possible strategies for restructuring and learning globally
• To show the techniques that Avon can apply to manage its knowledge

Overview of paper

Research has shown that alliances, acquisitions, restructuring and knowledge management are instrumental things in fostering success of a company.

Body

Restructuring is one thing that is necessary to ensure that a company does not lose its ground in the market. Restructuring gives a company a chance to improve in terms of its operations and performance. There is need to ensure that the restructuring strategy employed tackles the problem identified properly. Any strategy which does not address the problem facing a company is usually seen as lacking in direction. The restructuring strategy employed should be done in a way which leaves the company’s systems in harmony. The management should inform the employees about the restructuring plans about to be done.

It is important for all companies to make sure that they take action to ensure that they sail through recessions smoothly. The actions should be able to advance the returns of a company or at least maintain it. For Avon, making alliances as well as acquisitions should be one of the major priorities. Avon may opt to go for strategic alliances. According to Cartwright & Cooper (2012), these type of alliances will give this company an opportunity to exchange, share or develop together certain products or services with the selected allies. This is a good way to ensure that there is support from the allies during a recession.

One way of ensuring that the revenue of the company goes up is through expanding the market base. In terms of alliances, Avon can enter into a contractual alliance. This type of alliance is also known as non equity alliances. This type of alliance provides an opportunity to do co-marketing, co-research as well as co-development (Cartwright & Cooper, 2012). If you look at Avon’s business, this is what is important to expand its market for more revenue to be generated.

To manage its knowledge, Avon can apply several techniques. One of the things that this company can do is taking the staff members through training programs. Human capital is usually the most important thing in a company. The company can arrange for regular training sessions for its employees so that their knowledge may be improved.

Secondly, the company may seek the services of the many available consultants on knowledge management. The consultants will be able to give very clear guidance on how best to handle the company’s valuable knowledge. The consultants may be given a chance to speak to the employees so that their knowledge and skills may be improved.

To make management of its knowledge better, Avon can go ahead and build information archives. These are also referred to as repositories. These archives will be filled with details of the necessary procedures and policies. If there is any other thing which is considered intellectual and vital to the company, then the repository will be the best place for storage. The information stored in the repository is usually very instrumental in a company’s efforts towards time saving and efficiency (Christensen, 2003). If Avon’s staff wants to answer queries from clients, they will only need to get the information from the repository and forward it. This will leave the client satisfied which is a good thing towards increasing customer satisfaction. There is also the fact that after important employees leaves Avon; their knowledge will be left with the organization in the repository. This will enable the company continue enjoying their know-how.

Another technique for knowledge management that Avon can use is engaging web conference technology. This will give the company an opportunity to share knowledge with people across the world. This is a good way of gaining from the many knowledgeable people in the world. During the web conferencing, the users get an opportunity to share problems. After sharing problems to the many users, discussions take place which generate the best solutions ever.

Avon can also turn to the social media in its knowledge management efforts. The social media has turned out to be very instrumental in driving companies to great heights. The social media has several platforms which give people an opportunity to interact. The best thing is that experts are found within the social circles. Within these circles, consultation can take place successfully thus knowledge is improved and gained.

Conclusion

Recession is something which can cause sinking of a company if the management is not careful. Alliances and acquisitions are important, but companies should be careful to avoid entering into some which might not go well with the set out objectives. Restructuring is also good, only that the best strategies should be applied. According to Christensen (2003), information is very instrumental in the success of a company, thus the need to manage a company’s knowledge well. The best knowledge management techniques should be applied.

References

Christensen,P.(2003). Knowledge Management: Perspectives and Pitfalls.Copenhagen Business School Press DK

Cartwright,S. & Cooper,C.(2012). Managing Mergers, Acquisitions and Strategic Alliances. Routledge

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