Now That You Have Completed The Internal And External Audits

Now That You Have Completed The Internal And External Audits For Aveda

Now that you have completed the internal and external audits for Aveda, use the information to create a list of strategic objectives. From these objectives, generate a list of strategy alternatives. Using the appropriate tools of strategic choice from your text and research, choose a course of action (use Corporate Growth strategy—concentration). Be sure to justify your selections with supporting data/information. For this assignment, you should submit a 2-3 page document containing: a list of strategic objectives, a list of strategy alternatives, your strategic choice (Growth strategy—concentration) with appropriate justification. The submission is due tomorrow at 9 am, formatted in APA style with references and in-text citations checked for plagiarism.

Paper For Above instruction

Introduction

The strategic planning process is essential for guiding organizations toward achieving sustainable growth and competitive advantage. After conducting comprehensive internal and external audits for Aveda, a renowned beauty and cosmetics company, it becomes crucial to develop strategic objectives that align with the company's strengths, market opportunities, and industry challenges. This paper aims to outline the strategic objectives derived from the audits, propose alternative strategies, and justify the selected growth strategy—specifically, a concentration strategy—based on appropriate strategic tools and research.

Strategic Objectives for Aveda

Based on the findings from Aveda’s internal and external audits, the following strategic objectives are formulated:

1. Enhance Brand Differentiation through Sustainability: Strengthen Aveda's positioning as a leader in eco-friendly and sustainable beauty products by expanding environmentally conscious initiatives.

2. Expand Market Share in the Natural and Organic Segment: Capitalize on increasing consumer demand for natural, organic, and cruelty-free products by widening product lines and geographic reach.

3. Innovate Product Offerings: Invest in R&D to develop new formulations that cater to wellness trends, such as CBD-infused products or skincare with anti-pollution properties.

4. Improve Operational Efficiency: Optimize supply chain processes to reduce costs and improve sustainability outcomes, thereby increasing margins.

5. Strengthen Digital Presence and E-Commerce Capabilities: Increase investment in digital marketing and enhance online sales channels to reach a broader customer base.

6. Foster Strategic Partnerships: Collaborate with like-minded organizations to co-develop products and expand distribution channels.

7. Employee Development and Engagement: Improve internal culture through training programs and engagement initiatives to attract and retain top talent.

Strategy Alternatives for Aveda

Considering Aveda’s internal strengths and external opportunities, several strategic options are available:

1. Market Penetration: Focus on increasing sales of existing products in current markets through targeted marketing and promotional campaigns.

2. Market Development: Enter new geographic markets, especially in emerging economies with growing demand for organic beauty products.

3. Product Development: Introduce new, innovative products tailored to evolving consumer preferences, such as personalized skincare or clean beauty lines.

4. Diversification: Expand into adjacent industries such as wellness or personal care accessories, although this may involve higher risk.

5. Vertical Integration: Acquire or establish control over suppliers of key raw materials to ensure sustainability and cost efficiencies.

6. Concentration (Growth Strategy): Focus on deepening market penetration and product innovation within existing markets and product lines to reinforce brand loyalty and competitiveness.

Chosen Strategic Course of Action: Concentration Strategy

After evaluating the strategic options, a concentration strategy—specifically, a corporate growth strategy focused on market penetration and product development—is deemed most appropriate for Aveda. This approach leverages the company's existing strengths, market reputation, and consumer loyalty. It involves deepening its presence in current markets through enhanced marketing efforts and expanding product lines aligned with consumer trends, notably organic and sustainable beauty.

Justification of Strategic Choice

The concentration strategy aligns well with Aveda’s core competencies and industry dynamics. The company's strong brand identity rooted in sustainability and natural ingredients provides a competitive advantage that can be further leveraged through targeted marketing and innovation. According to Ansoff's Growth Matrix, a focus on market penetration and product development minimizes risk while maximizing growth potential when the company possesses substantial internal resources and brand equity (Ansoff, 1957).

Furthermore, the external environment presents favorable conditions for this strategy. The increasing consumer demand for clean and sustainable beauty products offers significant growth opportunities in both existing and new markets (Smith & Brower, 2012). The company's internal capabilities, including extensive R&D and a committed supply chain supporting sustainability, underpin its ability to innovate and deepen market reach.

Implementing this concentration strategy enables Aveda to reinforce its market position without the complexities and risks associated with diversification. It also facilitates resource focus, enhances operational efficiencies, and sustains brand loyalty—critical factors in the highly competitive beauty industry.

Implementation Plan and Expected Outcomes

Implementing a concentration strategy involves intensified marketing campaigns emphasizing Aveda’s eco-friendly ethos, expanding product lines in organic skincare and haircare, and increasing digital marketing investments to reach wider demographics. Establishing customer loyalty programs and engaging in corporate social responsibility initiatives can reinforce brand trust and affinity.

Expected outcomes include increased market share, higher sales volumes, improved brand recognition, and sustained profitability. Moreover, this strategy enables Aveda to stay ahead of industry trends and reinforce its market leadership position in the natural beauty segment.

Conclusion

In sum, based on comprehensive internal and external analyses, Aveda should pursue a concentration growth strategy centered on market penetration and product development. This approach leverages its core competencies and market trends, offering a sustainable pathway for growth while maintaining alignments with its values of sustainability and natural beauty. Continuous evaluation and adaptation will be essential to ensure ongoing success in evolving industry landscapes.

References

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Smith, N. C., & Brower, T. R. (2012). Long-range strategic planning for the beauty industry. Journal of Business Strategy, 33(4), 45-54.

Porter, M. E. (1985). Competitive advantage: Creating and sustaining superior performance. Free Press.

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Hitt, M. A., Ireland, R. D., & Hoskisson, R. E. (2020). Strategic management: Concepts and cases: Competitiveness and globalization. Cengage Learning.

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Kaplan, R. S., & Norton, D. P. (2004). Strategy maps: Converting intangible assets into tangible outcomes. Harvard Business School Publishing.

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