AVERY DENNISON CORPORATION: STRATEGIC AUDIT
This paper develops a strategic audit of Avery Dennison Corporation. The findings of the strategic audit are presented in seven topic-specific sections, as follows: (1) background information on the company; (2) external analysis of the company's environment; (3) internal analysis of the company; (4) analysis of the company's strategies; (5) analysis of organizational structure and control systems; (6) analysis of the company's past performance; and (7) predicted future performance of the company.
Background Information on the Company
Avery Dennison Corporation is known best to most people as the maker and marketer of self-sticking labels. The company is the worldwide leader in the adhesive label industry. The company manufactures labels for almost any purpose; however, major sellers are packaging labels and mailing labels (Hoover's, Inc., 2004).
Avery Dennison also manufactures the pressure sensitive adhesives that it uses on the labels the company produces. The pressure-sensitive adhesives manufactured by the company are, however, also sold to other companies and to individuals for a wide variety of uses. While Avery Dennison is best known to the consumer for its label products, pressure-sensitive adhesives and materials generate more than one-half of the company's total revenues (Hoover's, Inc., 2004). The distribution of the company's 2003 revenues by product group is summarized in Exhibit 1, which may be found below on this page.
Exhibit 1 รน Avery Dennison Corporation 2003 Revenues: Distribution by Product Group
Revenues (% of total exclusive of adjustment)
Pressure-Sensitive Adhesives & Materials
Source: Avery Dennison Corporation, 2004b
Additionally, Avery Dennison also manufactures many other products. Papers, films, and foils coated with adhesive and sold in rolls produced by the company are sold to printing industry companies. School products an...