~ IiItlEI Harvard Business School 9-289-049 Rev. August 5.1994 Avon Products‚ Inc. On June 1‚ 1988‚ Hicks B. Waldron‚ chairman and chief executive officer of Avon Products‚ Inc.‚ was reviewing a package of proposals that he and his financial advisors were to present to the Avon board of directors for final approval the following day. These proposals included (1) a public announcement that Avon would explore plans to divest two of its businesses‚ probably at a considerable book loss;
Premium Stock Stock market Preferred stock
University GB530 Unit 1 Project Avon‚ the company for women‚ is a leading global beauty company‚ with nearly $11 billion in annual revenue. As the world ’s largest direct seller‚ Avon is sold through more than 6 million active independent Avon Sales Representatives. Avon products are available in over 100 countries‚ and the product line includes color cosmetics‚ skincare‚ fragrance‚ fashion and home products‚ featuring such well-recognized brand names as Avon Color‚ ANEW‚ Skin-So-Soft‚ Advance
Premium Marketing Brand management Odor
The strategy of international business The Avon Products Case Avon Products‚ Inc. is an international manufacturer and distribution of beauty‚ household‚ and personal care company that sells products through representatives in over 140 countries across the world. As Andrea Jung became CEO of the group in 1999‚ profits has grown constantly at a 10% rate until 2005. Subsequently‚ some weaknesses in the business strategy emerged as the company started losing profits‚ in particular those coming from
Premium Management Organization Strategic management
decrease the total dividend payout from Avon. With PERCS in place‚ only up to 18 million PERCS holders would continue to receive a dividend of $2 per year. The remaining common shareholders would receive dividends of not more than $1.50 a share per year unless the PERCS were redeemed. Hence‚ Avon would be able to decrease its dividend payout per common shareholder by at least 50 cents a share for the next 3 years. Motivation of PERCS: Using PERCS allows Avon to offer a choice of investments to its
Premium Stock Stock market Bond
Project: Financial Analysis for Avon Products Inc Student: Ninoska Trejos April 17‚ 2010 1. Background 1.1 Company Description Avon Products Inc (AVP)‚ founded by David H. McConnell‚ is a leading global beauty company‚ with $10 billion in annual revenue; it commenced operations in 1886 and incorporated in the State of New York on January 27‚ 1916. The company’s stocks are traded in the New York Stock Exchange (NYSE). Its products fall into three product categories: Beauty‚ Fashion
Premium Dividend yield Stock Dividend
would you recommend AJ take to help achieve its long-term strategic and financial objectives? It’s implementation efforts? What challenges might the new strategy present to Avon’s top management team? What risks do you see? Andrea Jung has done an exceptional job of identifying the problems of Avon Products‚ Inc‚ developing a strategic vision‚ and outlining a plan to clearly communicate and meet the goals and objectives of the vision. She undoubtedly recognized the various areas within the company
Premium Strategic management Strategy Strategic planning
Avon Products By Laura Argo The main domain of subject study is Strategic Human Resources Management and is mainly aimed to conceptualize the concept of Talent Management. The Talent Management refers to the process employed in order to anticipate human resources requirements to an organization at particular time and include strategy formulated in order to meet that requirements (Groysberg‚ 2006). The talent management process includes distributing the responsibilities and accountabilities
Premium Human resource management Human resources
In 2006‚ Avon Products success story turned ugly. After five straights years of ten percent plus growth and twenty-five percent operating profit growth under CEO Andrea Jung‚ the company suddenly began losing profits. One of the main reasons of this lost was the fast growth of Avon that couldn’t be supported by its employees. As with many growing organizations the structure‚ people and processes that were right for a $5 billion company were not necessarily a good fit for a ten billion dollar company
Premium Management Leadership
Executive Summary – Avon Products Avon Products is one of the major players in the cosmetics and toiletries industry with a sale of about 10 billion US dollars in 2007 (Exhibits 1‚ 2 & 3). It has been globally competitive by creating global brands and nurturing its powerful sales channel of Single-level Marketing (Direct Selling). Globally‚ Avon competes with large cosmetics majors like P&G‚ Revlon and Shiseido to sell its products. At the same time‚ it also competes with other major direct sellers
Premium Sales Cosmetics Marketing
Avon Products‚ Inc. was a leading global cosmetics company‚ with over $8 billion in annual revenue in 2005. As the world’s largest direct seller‚ the company marketed to women in 143 countries via five (5) million independent Avon Sales Representatives. Avon product lines included numerous popular brand names‚ and an extensive line of costume jewelry and clothing. Although revenues increased in 2003‚ 2004 and 2005‚ Avon’s net income was $848 million in 2005. The company met with stiff competition
Premium Developmental psychology Human resource management Talent management