Financial Management Spring 2010 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
Premium Dividend yield Stock Dividend
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
Avon Case Study Analysis During the 1990s‚ Avon began to lose its appeal to the public. The number of new company sales representatives had begun to stall; and by 1999‚ the U.S. sales representatives had dropped 1% from the previous year (Pearce and Robinson‚ 2005‚ pg.423). It was at this critical time that Andrea Jung‚ an Avon saleslady herself‚ was hired as CEO to help take the company in a new direction. A turnaround grand strategy was envisioned in 2000 to help reenergize the flagging U.S. sales
Premium Strategy Sales Marketing
Avon‚ the oldest cosmetics company in the United States and the world’s largest direct seller‚ received a much needed boost with Chief Executive Officer (CEO)‚ Andrea Jung‚ at the helm (Creed and Laichas). Andrea became the company’s first female CEO in 1994‚ marking the beginning of a brand turnaround (“Avon Products‚ Inc.”). From its humble beginning to becoming the cosmetic giant that it is now‚ Avon has had a number of trials and bounce backs. It’s most recent success‚ the Hello Tomorrow global
Premium Sales Edward Scissorhands Personal selling
600-011 [Weekly Critique Notes] Case Title: Future of Avon China: Direct Sales‚ Retail Sales or Both 1. What is the central issue in this case? Avon China [who] is given the opportunity to consider the previously successful but fallen direct sales strategy which possesses challenges alongside the opportunity [what] in the distant future [when] because [why] * Chinese officials have intermediately lifted the direct-sales strategy ban after the economic instability in 1998 * With the
Premium Retailing Sales
Con Position Avon is the world’s leading direct seller of beauty products‚ with over $6 billion in annual revenues. In November of 1999‚ Avon announced the appointment of Andrea Jung as president and chief executive officer of the firm. Although Avon is best known for their direct-selling method‚ Ms. Jung felt they needed a new strategic plan to attract and retain Avon customers. Her strategic vision is to bring the Avon product line to consumers through new distribution channels including retail
Premium Retailing Marketing Sales
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
Richards Rumelt: The evaluation of Business Strategy 1. Consistency: the strategy must not present mutually inconsistent goals and policies. Rumelt argues that inconsistency in strategy is not merely a flaw in logic. One of the main purposes of strategy is to provide a sensible framework for organizational action‚ which fits organizational objectives and values. Rumelt cities the examples of high- technology organisations facing a strategic choice between offering customized high-cost products
Premium Organization Strategic management Management
The Marketing Mix of the Company Avon I am to evaluate the marketing mix for the company of Avon. I will examine in detail the target audience‚ the product line‚ packaging‚ pricing‚ and how the product is being sold. Avon was founded in 1886 by David H. McConnell who started selling women’sperfume door to door. The company was first named California Perfume Company‚ but was changed to Avon Products‚ Inc. in 1939. The company was taken public in 1946 and by 1954 sales reached $55 million
Premium Marketing
AVON 1. What reason is given for the organizational change? The past several years had been difficult for the organization. Avon sales volume in the United States and international markets showed little or no growth. Profit margins on many products declined due to price discounting by competitors. Turnover rates of sales representatives had increased. The corporate debt was referred to as “staggering”. Avon’s research department informed the management that corporate problems centered on image
Premium Corporate governance Management Organizational culture