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Avon Case Study

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Avon Case Study
Executive Summary
Avon Products, Inc. (Avon) is based in New York. The firm engages in the manufacture and marketing of beauty and complimentary products primarily in North America, Latin America, Europe, and Asia Pacific (Yahoo Finance, 2005). Avon's products are classified into three product categories: Beauty, Beauty Plus, and Beyond Beauty. The Beauty category consists of cosmetics, fragrances, skin care, and toiletries; Beauty Plus includes fashion jewelry, watches, apparel, and accessories; and Beyond Beauty comprises home products, gift and decorative products, candles, and toys (Ibid). The company sells and markets its products through a combination of direct selling, marketing by independent Avon representatives, and via its consumer Web site, avon.com.
This paper will explore how the company is fairing under the leadership of its current CEO, Andrea Jung. There are two opposing views regarding the company's current and future success. One group feels that the firm has a promising future with Jung at the helm while the other group does not. This paper will analyze the pros and cons uncovered by each team member and discuss which view prevailed in the debate and why.
Pros and Cons
Pros of Jung and Avon
Andrea Jung became president and CEO of Avon in 1999 and has totally revamped the company. Under her leadership, the company has updated its product line, launched new advertising, and created a new image (Fact Monster, 2005). Avon's sales have increased by 30 %, profits 40%, and the stock price has dramatically improved (Ibid). Jung's has been able to align the firm's core capabilities with its strategic targets which has lead to phenomenal results. It appears that Jung has been able to establish a clear vision for the firm that has been incorporated in every aspect of the firm's operating system. This vision is shared by all employees and representatives of Avon priming the company for continued success.
Under Andrea Jung's direction, Avon is focusing on


References: Datamonitor (2004). Retrieved August 12, 2005 from http://80-dbic.datamonitor.com. ezproxy.apollolibrary.com/companies/company/?pid=E8B585DB-3BF6-4882- 80B3-CB8A102DDAE8 Derby, M. (2005). Avon profits surge in quarter, year. Women 's Wear Daily 189(22), 12. Fact Monster (2005). Profile of Andrea Jung. Retrieved on August 13, 2005 form http://www.factmonster.com/ipka/A0880008.html Pearce & Robinson (2004). Strategic management (9th ed). New York: McGraw-Hill. Tarquinio, J.A. (2004). Aging gracefully at AVON. Kiplinger 's Personal Finance, 58(9), 49. Yahoo Finance (2005). Profile for Avon Products, Inc. Retrieved on August 13, 2005 from http://finance.yahoo.com/q/pr?s=AVP
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