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 43 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. 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.

Based on the situation above,

(a) Describe how would organizational strategy need to change

to respond to Mary Kay's new business strategy?

(b) Describe the changes would you suggest Mary Kay, Inc.

managers make in their management systems in order to

realize the intended benefits of the new systems?

Specifically, what types of changes would you expect to

make in the evaluation systems, the reward systems, and the

feedback systems?

the ecommerce system a desirable or undesirable activity

from a manager's perspective?

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