...Representatives’ opportunities by allowing them to showcase more products than they could carry in their sample cases. 1945 - The company launched one of the most memorable advertising campaigns of all time with the “Ding Dong Avon Calling” commercials. 1946 - With sales of $17.2 million and profit rising to more than $1 million, Avon became a publicly-traded company. 1959 - Avon launched operations in Western Europe, in the United Kingdom and Western Germany. 1969 - Avon entered Japan, expanding its operations to the Asia Pacific market. 2005 - Avon invested $100 million to build a new cutting-edge Global Research and Development Center in Suffern, NY, furthering the company’s commitment to stay at the forefront of the beauty marketplace, bringing leading-edge, technology-based products to women around the world. 2007 - Avon launched the Hello Tomorrow Campaign, a global marketing campaign that encompasses product and representative recruitment advertising; and the Hello Tomorrow Fund, which empowers women and improves society by providing individuals with cash awards that will allow them to pursue a project or initiative to better the lives of women of all ages. 2009 – Avon grew to 6.2 million Active Representative, as women worldwide recognized Avon could be the answer to a challenging global economic environment. BACKGROUND OF THE COMPANY Avon Cosmetics is one of the largest and well known companies producing cosmetics in the world and operating in direct...
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...Avon Calls on Foreign Markets Name School Name Avon Calls on Foreign Markets Avon, started its journey in the early 1886 is now the oldest and the largest marketers and manufactures of the beauty products. The advertisements from “Ding dong, Avon Calling” to “Hello Tomorrow” and from “You never looked so good” to the latest one “The Company For Women”, always helped Avon to improve its image and enhance the marketing strategies to serve the purpose. One of the amazing facts about Avon includes that it’s headquarter is situated in USA but major portion of its sales comes from outside North America. Avon has captured a huge market all over the world and its distributing the beauty solutions to almost all parts of the world. With Avon being a part of 112 countries, the company has approximately 6 million independent sales representatives. These representatives go door-to-door for selling these products. Fig 1 shows Avon business worldwide. [pic] Fig1. Avon Business Distribution Worldwide Amongst some of the important question regarding Avon, one must have this one triggering question in mind. Why is Avon so much more dependent on its foreign operations than on its home (U.S.) operations? The answer to this question isn’t that difficult either. Avon could forecast that the USA market was saturated for fragrances, cosmetics and toiletries. Avon knew that starting; here would mean a real tough competition. Avon decided that the...
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...created to provide a brief description of the status of the Avon products Inc. that led to its determination that a change was necessary. After, it identifies the model for change theory typified in the case study. Then illustrates the types of evaluation information that were collected and how they are used to benefit the company. And last, it speculates about success of the changes within the next five (5) years and how adjustments could be made if the results become less than ideal. 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 (Goldsmith & Carter, 2010, p.2). There were weaknesses that hurt the effectiveness of the employees at the talent management practices. Decisions on talent movement, promotions, and other key talent activities were often influenced as much by individual knowledge and emotion as by objective facts. Neither managers nor Associates have any idea about how the talent practices work. Even the HR department wasn’t sufficient to answer basic questions that might be asked by managers like “What will...
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...ASSESSMENT (1) – INDIVIDUAL CASE STUDY REPORT (60%) Submission Date: Friday 13 December, 2013 ------------------------------------------------- Case Study – ‘Avon in Global Markets in 2009: Managing and Developing a Global Workforce’ ------------------------------------------------- ------------------------------------------------- Source: Deresky, H. (2011). International Management: Managing Across Borders and Cultures, pp. 387-391. YOUR TASK After reading and analysing the case study (Avon in Global Markets in 2009), write a report to Avon Management in which you comment on and provide answers to the following three questions. Questions: 1. Evaluate Avon’s Strategic International Human Resources practices in global markets regarding development of a global management cadre, HCNs, and building company associates and independent representatives in host countries. 2. Describe how Avon’s business model has changed in light of demographic and social changes in the United States and abroad. What role has IHRM played in the company’s global expansion? 3. Since 70 percent of Avon’s revenues are generated outside the United States, what recommendations would you provide to the company regarding dealing with a culturally diverse workforce and a multicultural marketplace in the coming years? Assessment (1) Submission Guidelines * The front cover must clearly state your name and student number; unit title and number; tutor, and word count. ...
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...Market Entry Case Study International Marketing 466 Curran Dandurand, the senior vice president of Mary Kay Cosmetics Inc.’s (MKC) global marketing group is considering how to expand the company’s international operation. She is debating which elements of MKC’s culture, philosophy, product line, and marketing programs might be transferable both in general and in particular in respect the China and Japan, two major Asian markets in which MKC does not have a presence. Dandurand must decide whether to enter either or both of these markets (or neither) and, if so, what marketing entry strategy to pursue. This case gives your global marketing team the opportunity to: 1) explore why two companies (Avon and MKC) in the same business (the direct selling of cosmetics) differ so greatly in the percentages of their sales that are international 2) examine the transferability of a corporate value system developed in the United States to foreign subsidiaries 3) identify the criteria that should determine which country markets a multinational should enter and to assess two countries against these criteria 4) contrast the implications for marketing strategy and tactics of being a late entrant in a mature market versus a relatively early entrant in an emerging market The objective of the case is to focus on the following issues and dilemmas: 1. Why has MKC not been as successful as Avon in penetrating international markets? Answer in terms of the...
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...Avon Case Study 1. Provide a brief description of the status of the company that led to its determination that a change was necessary. In 2005, Avon Products success story turned ugly. After six straights years of ten percent plus growth and a tripling of earnings under CEO Andrea Jung, the company suddenly began losing sales across the globe. The company found itself challenged by flattening revenues and declining operating profits. While the situation had many contributing causes one underlying issue was that Avon had grown faster than portions of its infrastructure and talent could support. 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. (Effron, Greenslade, & Salob, 2005). Numerous cases existed in Avon’s existing talent and in its ability to identify and produce talent. While some of those gaps were due to missing or poorly functioning talent processes, an underlying weakness seemed to lie in the overall approach to managing talent and talent practices. (Goldsmith & Carter, 2010). Neither managers nor associates knew how existing talent practices, performance management, succession planning, worked or what they were intended to do. Decisions on talent movement, promotions, and other key talent activities were often influenced as much by individual knowledge and emotion as by objective facts. The Human Resource department could not...
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...Business New York University Cases in Financial Management B40.2345 Tony Marciano amarcian@stern.nyu.edu KMC 9-87 First Class Assignment For the first class meeting, I will expect you to prepare the INTEL case in your course packet. You should use the detailed questions given in the course packet to organize your thoughts and analysis about the case. Our class discussion will cover the issues raised by the questions, i.e.: (i) What capital structure makes sense? (ii) What would be the best way to disburse cash? (iii) Describe the advantages and disadvantages of each alternative considered by management? In addition to reading and analyzing the Intel case, you should come to class with a one to two page memorandum that summarizes your analysis. You may team up with one or two classmates and hand in one memorandum for the group. (I.e., I will accept a memorandum with up to, but not more than, three names on it.) Stern School of Business New York University Cases in Corporate Finance Marciano Tony Course Syllabus TENTATIVE I. Course Materials A. Packet I (Required): 1. Syllabus 2. Assignments 3. Cases 4. Readings B. Text (Very Highly Recommended but probably have it already): Brealey Myers Allen, Principles of Corporate Finance, McGraw Hill. (BM) You may already have this text. C. There will be some miscellaneous handouts during the course. AND THERE ARE FILES ON BLACKBOARD WHICH CONTAIN SPREADSHEETS FOR THE CASES WE WILL ANALYZE IN THE COURSE...
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...Avon Case Study Brief information about the domain of the company Avon is New York based 125 year old beauty product manufacturer that appoints the manufacture and marketing of beauty and fashion products, which has for over a century left a mark on millions of people throughout hundreds of countries The Company covers primarily North America, Latin America, Europe, and Asia Pacific. Avon’s products are classified into three 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. Avon earned a great reputation with its direct selling technique. This technique consists of selling the products directly to distributors or final consumers rather than trading companies or other intermediaries in order to accomplish greater control over the marketing function and to earn higher profits. The status of the company that led to its Determination that a change was necessary Several decades ago, Avon brought a perfect sagacity on many wives stayed at home, and some overprotective husbands didn't want them out shopping. Avon jumped up to the marketing arena with its growing fleet of representatives offering...
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...marketingové strategie zahraniční kosmetické firmy působící na českém trhu Název v angličtině: Exploring Marketing Strategy of the Cosmetic Company Operating in the Czech Market Katedra: Katedra podnikového hospodářství Rok obhajoby: 2006 Anotace v češtině Obsahem této práce je analýza marketingové strategie kosmetické firmy Avon, operující na českém trhu. Konkrétně se snaží odpovědět na otázky: jaké metody reklamy Avon praktikuje, jaké nástroje sales promotion používá a jaké typy public relations firma volí k úspěšné komunikaci se zákazníkem. Sběr dat byl uskutečněn na základě rozhovoru s marketingovou ředitelkou společnosti Avon Česká republika. Anotace v angličtině This dissertation investigates the marketing strategy techniques within the cosmetic company operating in the Czech market. It tries to answer following questions: Which methods of advertising does the company use? What types of sales promotion does the organisation apply to attract customers? Which public relation practices does the association utilize to communicate with its stakeholders? The data was collected on the basis of interview with the marketing manager of Avon Czech Republic. Klíčová slova v češtině Marketingová strategie, reklama, sales promotion, public relations Klíčová slova v angličtině Marketing strategy, advertising, sales promotion, public relations Prohlášení Prohlašuji, že jsem balakářskou práci Analýza...
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...Avon Products 1. Why was Avon restructuring its business in 1988? Did the changes make sense? In the early 1980s, Avon made several major decisions to diversify its business, first to enter the health care field by acquiring a chemical company, Mallinckrodt, Inc. for $710 million in 1982. Before the acquisition happened, Avon’s beauty products sales and margin had already started to decline due to the decreasing number of housewives. Together with the cash spent on the acquisition, Avon was facing a sudden weakening cash flow position by mid-1982. By August 1982, Avon’s stock price has drop from $30 to $20.375 per share and dividend reduced from $3.00 to $2.00. Then Avon acquired Foster Medical Company in 1984, Retirement Inns of America in 1985 and the Mediplex Group in 1986 to get more exposure to the health care industry. In 1986, Avon sold Mallinckrodt, Inc. at a loss of $35 million. However, a change in Medicare in 1986 made a negative impact on Foster Medical’s revenue, and caused the board to doubt their commitment to the health care industry. In 1988, the group began the process of selling the entire Foster Medical Corporation with an anticipation of loss of $125 million. The beauty business of Avon improved in 1987 and the groups made acquisitions of Giorgio, Inc. for $165 million and Parfums Stern, Inc. for $160 million. Avon was restructuring its business by selling health care companies and acquiring beauty companies to broaden their beauty business. ...
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...Initial situation: Natura, found by Mr. Luiz Seabra in 1969 in Sao Paulo, is a cosmetic company offering a wide range of products. The company was originally found on different values such as building a better world based on harmony with oneself, with others and with nature. In 1969, the company was selling its product only in one store in an upper-class neighborhood in Sao Paulo. The products were manufactured in a small laboratory. Few years after its foundation, the company has decided to expand its distribution by using a direct sale distribution model. This distribution model consists to sell a product from person to person and was an advantage for the company because they were able to foster the relationship with the clients and to extend the distribution at low cost. This direct sale strategy was organized in a simple structure. Natura hired some sales supervisors that have to hire sales representatives who were trained and monitored by the supervisors. This strategy was interesting for the company because the sales representatives had no work attachment with Natura, which gave flexibility for the company. Their salary was just a commission on the products sold. The customers had to select products on catalogues and placed their orders threw a call center or company’s website. Then the products were delivered to the sales representatives in 24 hours and delivered to the customers. This directs sales system is an interesting system for Natura, because...
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...“Goodwill arises when one company acquires another company (in a business combination accounted for as a purchase) for a price in excess of the fair market value of the net identifiable assets (identifiable assets less liabilities assumed) acquired” (Fraser, Ormiston, 2013). What are the key factors in the creation of business goodwill? These are going concern, excess business income & the expectation of future economic benefits. Within a business they are three sources of goodwill. These are as follows: * Expertise of the workforce which states that there is no value included on the balance sheet as an asset for costs incurred for labor expertise. * The reputation of the product(s) of the business can help boost sales and profits if they are good or they could have negative effects on the sales and profits if the reputation is not up to par. * The general economic environment, if levels of interest and exchange rates are high will help with the amount of goodwill associated with the business. Balance sheets are calculated daily and are normally completed at a certain time period, such as: quarter-end, month-end and year-end and it is an in-depth process in making sure all of the numbers are correct and that it all adds up and is accurate on those dates. It is important that a business know what their profit is today, within a year, and a year and longer. Knowing the finances of the business on a daily basis is important but also planning ahead is a must...
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...coming from outside of its home country. (Duesterberg, 2007, pg 13).There are over 40,000 multinational corporations currently operating in the global economy, in addition to approximately 250,000 overseas affiliates running cross-continental businesses. (Eldridge, 1999, pg 1). A multinational organisation will allow for greater economies of scale, lower labour costs, reduced manufacturing and distribution costs and access to new technologies and methods. However with multinational corporations operating a largely as they are it is important to ensure that the management of such organisations is correct. Should this management be rigid and controlled in the way of UPS where each employee is given a set of rules, or more relaxed as in the case of SOL where each employee decides their own rules? Does being a multinational organisation make a difference to this decision? One thing that is for sure if that the management has to be strong whether it be strong and uniform across all countries, or whether it is strong and very different across all countries. This essay will analyse whether all parts of a business should operate in an integrated fashion or whether it is more successful to allow individuality amongst the subsidiaries. It will look at and compare the operations of existing companies and make a decision about the best practise. Organizations are always pulled by the two forces of uniformity and diversity. By nature they would prefer uniformity. That way lies predictability...
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...A REPORT ON AVON PRODUCTS Submitted to: Submitted by: Mr. Vikas Anand Neha Sharma Faculty, LPU RR1002B37 11009270 COMPANY PROFILE Avon Products, Inc. (NYSE: AVP) is a US cosmetics, perfume and toy seller with markets in over 140 countries across the world and sales of $9.9 billion worldwide as of 2007. AVON PRODUCTS was founded in 1886, Inc. (Avon) is the largest direct seller of beauty and beauty- related products. With $10.7 billion in annual revenues in 2008(up 8% from 2007), Avon and its approximately 42,000 associates now serve valued customers in more than 100 countries worldwide. Our primary distribution channel is direct selling by our more than 5.8 million Avon sales representatives. Together, these ”Avon ladies” as they are affectionately known, help us to reach millions of customers around the world and handle upwards of one billion transactions annually. Company style Avon Products is a multi-level marketing company. The company's chairman and CEO is Andrea Jung, who was promoted to the position in 1999. She has completed a decade as CEO and is the longest tenured female CEO among Fortune 500 companies. Avon uses both door-to-door sales people ("Avon ladies," primarily and a growing number of men) and brochures to advertise its products. In the United States, products may be found through Representatives...
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...SCHOOL OF HOSPITALITY, TOURISM AND CULINARY BACHELOR OF INTERNATIONAL HOSPITALITY MANAGEMENT HTM 2422 MICE MANAGEMENT BH 3/ SECTION 3 PROJECT DEVELOPMENT OF MICE EVENT PROPOSAL FULL NAME | GROUP | STUDENT ID NO. | 1. | Cindy Leo | 2. | Amira Zulkifli | LECTURER: LOW YEE SIEW SUBMISSION DATE: 31 MAY 2012 CONTENTS Introduction | | Theme | | Itinerary | | Budget | | Balance Sheet | | Sponsorship | | Floor plan | | | | | | I am beautiful, confident and independent “I AM BEAUTIFUL, CONFIDENT AND INDEPENDENT” is a workshop designed for women whom which do not acquired high self-orientation. We aim to make you feel welcome in a comfortable, friendly and relaxing environment, so you can escape from stressful, fast-cycle of everyday life. We’re going to make you familiarize yourself with a good self-confidence and outsourcing all the capability that they have. This concept is actually to convince and make them believe that women have rights to be beautiful and independent, not only by outside or physical but also by inside because outer look will never be perfect without the true beauty, wise mind with kind hearts. We also will be helping women to build and show them to the world that women nowadays are able to stand up and believe that they could stand on their own without depending on others or in other word, do not fear challenges, and prove them that the girl power are really exist. This workshop will be divided...
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