Assignment
Women have always played an important role at Avon, a leading global beauty firm that has $10 billion in annual revenue and is 125 years old. Mrs. P. F. Albee of Winchester, New Hampshire, pioneered the company's now-famous direct-selling method. Women have been selling Avon products since 1886-34 years before women in the United States won the right to vote! As the world's largest direct seller, Avon markets to women in over 100 countries through the efforts of more than 6 million independent Avon sales representatives. Avon's merchandise includes beauty products, fashion jewelry, and apparel. Although most of Avon's employees and customers are women, until recently the company was run by men. However, a series of poor strategic decisions in the 1980s led the company to increase aggressively the number of women and minorities in its executive ranks. This decision to increase diversity among its manag ers was a major factor in Avon's improved financial performance. Today, Avon is recognized as a leader in management diversity. Fifty-five percent of Avon's management positions are filled by women, and half of the members of its board of directors are women. The company also has undertaken various programs to ensure that women and minorities have opportunities for development and advancement. In the United States and elsewhere, Avon has internal networks of associates, including a parents' network, a Hispanic network, a black professional association, an Asian network, and a gay and lesbian network. The networks act as liaisons between associates and management to bring their voices to bear on critical issues that affect both the workplace and the marketplace. Avon is committed to social responsibility. The Avon Foundation, founded in 1955, is the largest corporate philanthropic organization dedicated to women's causes globally and focuses on breast cancer and domestic violence. In the l970s, Avon's top management team was composed solely of men. Avon essentially ignored its own marketing research that indicated more women were entering the workforce and seeking professional careers. It also failed to realize that cosmetic needs were changing and new approaches for selling products to its customers were needed. Sales growth slowed, and the company reacted by seeking growth through unrelated diversifications. Finally, as the firm was on the brink of bankruptcy, a new top management team entered. Led by CEO Jim Preston, Avon refocused itself on its roots and developed strategies to reach women in a changing marketplace. Preston realized that Avon's customers needed to be represented in the senior management team. He enacted policies to promote more women into higher-level positions. In addition, Preston shifted the firm's organizational culture to being more accommodating of all its employees. The current management team launched several growth initiatives to build on Avon's strong brand name and distribution channel through its customer representative network. Avon product lines include private-label brands such as Avon Color, Anew, Skin-So-Soft, Advance Techniques Hair Care, Avon Naturals, and Mark. Avon also markets an extensive line of fashion jewelry and apparel. Avon sells more than 125 million lipsticks per year or 4 lipsticks every second of the day, making Avon the top seller of lipstick in the mass market. Its Anew brand is the number-one line of anti-aging skin care products in the world. The Advance Techniques hair care line offers highperformance hair products for every hair type, age group, and ethnic background to accommodate a diverse, worldwide consumer base. Avon Wellness promotes a balanced, healthy lifestyle for women and their families and includes nutritional supplements, a weight management line, and therapeutic products. Avon partnered with the fitness phenomenon Curves, an international fitness franchise, to help women look and feel their best. Through this partnership, Avon Wellness offers an array of Curves-branded exercise videos and DVDs, fitness apparel, accessories, and comfortable footwear that support an active lifestyle. Finally, Avon is using technology to support the efforts of its 6 million independent sales representatives. An electronic ordering system allows the representatives to run their businesses more efficiently and improve orderprocessing accuracy. Avon representatives use the Internet to manage their business electronically. In the United States, Avon representatives use an online marketing tool called youravon.com, which helps them build their own Avon business by selling through personalized Web pages developed in partnership with Avon. Avon e-representatives can promote special products, target specific groups of customers, place and track orders online, and capitalize on e-mail to share product information, selling tips, and marketing incentives
DISCUSSION QUESTIONS
1. Why is Avon so committed to diversity?
2. Select another retailer that also values diversity. How does this commitment affect its financial results?
3. What values have helped Avon to be a successful company even after 125 years?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.