This post addresses the Mary Kay case.
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Mary Kay, Inc., sells facial skin care products and cosmetics around the globe. The business model is to provide one-on-one, highly personalized service. More than 500,000 Independent Beauty Consultants (IBCs) sell in 29 markets worldwide. Each IBC runs his or her own business by developing a client base and then providing services and products for sale to those clients. Recently the IBCs were offered support through an e-commerce system with two major components: mymk.com and Mary Kay InTouch.
Mymk.com allows IBCs to create instant online sites where customers can shop anytime directly with their personal IBC. Mary Kay InTouch streamlines the ordering process by automatically calculating discounts, detecting promotion eligibility, allowing the IBCs to access up-to-date product catalogs, and providing a faster way to transact business with the company.
Please assist with the following quiestions:
1. How would the organizational strategy need to change to respond to Mary Kay's new business strategy?
2. What changes would you suggest Mary Kay, Inc. managers make in their management systems order to realize the intended benefits of the new systems? Specifically, what types of changes would you expect to make in the evaluation systems, reward systems, and feedback systems?
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Solution Summary
The following questions are thoroughly addressed in the solution:
1. How would the organizational strategy need to change to respond to Mary Kay's new business strategy?
2. What changes would you suggest Mary Kay, Inc. managers make in their management systems order to realize the intended benefits of the new systems? Specifically, what types of changes would you expect to make in the evaluation systems, reward systems, and feedback systems?
Solution Preview
1. How would the organizational strategy need to change to respond to Mary Kay's new business strategy?
-- The main changes in the organizational strategy would be revised to show consistency with the new business strategy. The new business strategy focuses on developments in Internet technology which have created the means for IBC's to better serve their clients. The organizational strategy needs to take on a new focus of supporting that same environment. Motivation will be a critical factor in the organizational strategy. The IBC's need to be motivated to utilize both parts of the new system. By incorporating training into the organizational strategy, it will involve showing the IBC's how the changes will benefit their personal businesses as IBC's, which overall increases the profitability and strength of the entire Mary Kay Company. The entire organizational strategy would have to be modified to encourage the technological advances in all major processes that involve IBC's. Similar to competitor Avon, the IBC's use paper order slips and invoices with all of their clients, to order products, and for all other processes. The new organizational strategy would have to focus on conducting ...
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