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Corporate analysis of avon

In 1999, Avon Products, Inc., was one of the world's largest direct-selling merchandisers of beauty and beauty-related products. Avon markets product lines to women in the United States as well as in many different countries through 2.8 million independent sales representatives who sell primarily on a door-to-door or direct selling basis.

Total operating profits in 1999 were$ 549.4 million, up slightly from $473.2 in 1998.

However, predictions show that Avon's profit in its fourth quarter is expected to fall short of expectations.

A series of corporate principles were developed by McConnell and provided direction and continued to influence decision making for the company throughout its history. The principles are (1) to provide individuals an opportunity to earn in support of their well-being and happiness, (2) To serve families throughout the world with products of the highest quality backed by a guarantee of satisfaction, (3) To render a service to customers that is outstanding in its helpfulness and courtesy, (4) to give full recognition to employees and Representatives, on whose contribution Avon depends (5) to share with others the rewards of growth and success (6) to me


The traditional way of selling Avon products is door-to-door by homemakers, as a means for them to make a little extra cash. This worked great in the early 1900's, but now that so many women work outside of the home this method doesn't work as well, there aren't women at home to go and talk to, not to mention not as many women to do the selling. This practice does work in developing countries, and this has given Avon the chance to tap into the global market over the years.

Avon feels that the global image is very important, and they are working toward global advertising. Having the same feel for Avon all over the world and "a more unified brand image throughout its international markets".

The corporation is structured on a centralized basis with Andrea Jung as President and CEO. They also have and Executive Vice President & COO, who handles international and new business development, and an Executive Vice President & COO which handles North American & Global Business Operations. They have four branches from the CEO, in Finance, EVP & CFO, in Human Resources, SVP, SVP, General Counsel & Secretary, and the AVP Corporate Communications. The company is broken up by geographic regions, the four regions are (1) North America, which includes Canada, the Dominican Republic, Puerto Rico, and the United States; (2) Latin America, which includes Brazil, Mexico, Argentina, and Venezuela; (3) the Pacific, which includes the Philippines, Thailand, Japan, New Zealand, Australia, and China; and (4) Europe, which comprises the United Kingdom, Central Europe, and Russia.

Objectives: are merely implied from performance. They are:



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Approximate Word count = 3009
Approximate Pages = 12 (250 words per page double spaced)


  

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